Texas 2019 - 86th Regular

Texas House Bill HB3 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3
	1	+	By: Huberty, et al. (Senate Sponsor - Taylor) H.B. No. 3
	2	+	(In the Senate - Received from the House April 4, 2019;
	3	+	April 4, 2019, read first time and referred to Committee on
	4	+	Education; May 1, 2019, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 8, Nays 0,
	6	+	3 present not voting; May 1, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 3 By: Taylor
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5		-	relating to public school finance and public education; ~~creating a~~
6		-	~~criminal offense; authorizing~~ the imposition of a fee.
	13	+	relating to public school finance and public education; authorizing
	14	+	the imposition of a fee.
7	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	16		ARTICLE 1. PUBLIC SCHOOL FINANCE
9		-	SECTION 1.001. Subchapter D, Chapter 11, Education Code, is
10		-	amended by adding Section 11.184 to read as follows:
11		-	Sec. 11.184. EFFICIENCY AUDIT. (a) For purposes of this
12		-	section, "efficiency audit" means an investigation of the
13		-	operations of a school district to examine fiscal management,
14		-	efficiency, and utilization of resources.
15		-	(b) Except as provided by Subsection (b-1), the board of
16		-	trustees of a school district shall conduct an efficiency audit
17		-	before seeking voter approval to adopt a tax rate for the
18		-	maintenance and operations of the district at an election held for
19		-	that purpose and may not hold the election without complying with
20		-	this section.
21		-	(b-1) The board of trustees of a school district all or part
22		-	of which is located in an area declared a disaster area by the
23		-	governor under Chapter 418, Government Code, may hold an election
24		-	to seek voter approval to adopt a maintenance and operations tax
25		-	rate during the two-year period following the date of the
26		-	declaration without conducting an efficiency audit otherwise
27		-	required under this section.
28		-	(c) A school district must pay for the costs associated with
29		-	an efficiency audit required under this section.
30		-	(d) The board of trustees of a school district must select
31		-	an auditor to conduct an efficiency audit under this section not
32		-	later than four months before the date on which the district
33		-	proposes to hold an election to adopt a maintenance and operations
34		-	tax rate.
35		-	(e) The board of trustees of a school district may select
36		-	for purposes of Subsection (d) the auditor that conducts the
37		-	district's annual audit under Section 44.008 and may include the
38		-	efficiency audit as part of the district's annual audit.
39		-	(f) The Legislative Budget Board shall establish guidelines
40		-	identifying the scope and areas of investigation of an efficiency
41		-	audit, including identification of resources being used
42		-	effectively and efficiently and identification of cost savings or
43		-	reallocations. The Legislative Budget Board may consult with the
44		-	agency to identify areas in which school districts in this state
45		-	have a demonstrated history of effectively utilizing resources to
46		-	improve student achievement and achieve cost savings. The auditor
47		-	selected by the board of trustees of a school district must follow
48		-	the guidelines established by the Legislative Budget Board under
49		-	this subsection.
50		-	(g) An auditor selected by the board of trustees of a school
51		-	district must maintain independence from the district and complete
52		-	the efficiency audit not later than three months after the date the
53		-	auditor was selected.
54		-	(h) Before an election at which a school district seeks
55		-	voter approval to adopt a tax rate the board of trustees of the
56		-	school district must hold an open meeting to discuss the results of
57		-	the efficiency audit conducted under this section. Not later than
58		-	30 days before the date of the election, the results of an
59		-	efficiency audit conducted under this section must be posted on the
60		-	school district's Internet website.
61		-	(i) A school district shall provide all documents, records,
62		-	and personnel requested by the auditor as needed to conduct the
63		-	audit in an efficient manner.
64		-	SECTION 1.002. Section 12.106, Education Code, is amended
	17	+	SECTION 1.001. Section 12.106, Education Code, is amended
65	18		by amending Subsections (a), (a-1), and (a-2) and adding
66	19		Subsections (a-3) and (a-4) to read as follows:
67	20		(a) A charter holder is entitled to receive for the
68	21		open-enrollment charter school funding under Chapter 48 [42] equal
69	22		to the amount of funding per student in weighted average daily
70	23		attendance, excluding the adjustment under Section 48.052, the
71		-	funding under Sections 48.101, 48.110, 48.111, and 48.112, and
72		-	enrichment funding under Section 48.202(a) [42.302(a)], to which
73		-	the charter holder would be entitled for the school under Chapter 48
74		-	[42] if the school were a school district without a tier one local
75		-	share for purposes of Section 48.266 [42.253].
76		-	(a-1) In determining funding for an open-enrollment charter
77		-	school under Subsection (a), the amount of the allotment under
78		-	Section 48.102 is based solely on the basic allotment to which the
79		-	charter holder is entitled and does not include any amount based on
80		-	the allotment under Section 48.101[:
	24	+	allotments under Sections 48.101, 48.109, 48.110, 48.111, and
	25	+	48.112, and enrichment funding under Section 48.202(a)
	26	+	[42.302(a)], to which the charter holder would be entitled for the
	27	+	school under Chapter 48 [42] if the school were a school district
	28	+	without a tier one local share for purposes of Section 48.266
	29	+	[42.253].
	30	+	(a-1) In addition to the funding provided by Subsection (a),
	31	+	a charter holder is entitled to receive for the open-enrollment
	32	+	charter school an allotment per student in average daily attendance
	33	+	in an amount equal to the product of:
	34	+	(1) the quotient of:
	35	+	(A) the total amount of funding provided to
	36	+	eligible school districts under Section 48.101; and
	37	+	(B) the total number of students in average daily
	38	+	attendance in school districts that receive an allotment under
	39	+	Section 48.101; and
	40	+	(2) the sum of one and the quotient of:
	41	+	(A) the total number of students in average daily
	42	+	attendance in school districts that receive an allotment under
	43	+	Section 48.101; and
	44	+	(B) the total number of students in average daily
	45	+	attendance in school districts statewide. [In determining funding
	46	+	for an open-enrollment charter school under Subsection (a):
81	47		[(1) adjustments under Sections 42.102, 42.104, and
82	48		42.105 are based on the average adjustment for the state; and
83	49		[(2) the adjustment under Section 42.103 is based on
84	50		the average adjustment for the state that would have been provided
85		-	under that section as it existed on January 1, 2018].
86		-	(a-2) In addition to the funding provided by Subsection (a),
87		-	a charter holder is entitled to receive for the open-enrollment
88		-	charter school an allotment per student in average daily attendance
89		-	in an amount equal to the difference between:
90		-	(1) the product of:
91		-	(A) the quotient of:
92		-	(i) the total amount of funding provided to
93		-	eligible school districts under Section 48.101(b) or (c); and
94		-	(ii) the total number of students in
95		-	average daily attendance in school districts that receive an
96		-	allotment under Section 48.101(b) or (c); and
97		-	(B) the sum of one and the quotient of:
98		-	(i) the total number of students in average
99		-	daily attendance in school districts that receive an allotment
100		-	under Section 48.101(b) or (c); and
101		-	(ii) the total number of students in
102		-	average daily attendance in school districts statewide; and
103		-	(2) $125.
104		-	(a-3) In addition to the funding provided by Subsections
105		-	[Subsection] (a) and (a-2), a charter holder is entitled to receive
	51	+	under that section as it existed on January 1, 2018.]
	52	+	(a-2) In addition to the funding provided by Subsections
	53	+	[Subsection] (a) and (a-1), a charter holder is entitled to receive
106	54		for the open-enrollment charter school enrichment funding under
107	55		Section 48.202 [42.302] based on the state average tax effort.
	56	+	(a-3) In addition to the funding provided by Subsections
	57	+	(a), (a-1), and (a-2), a charter holder is entitled to receive
	58	+	funding for the open-enrollment charter school under Sections
	59	+	48.109, 48.110, and 48.112 and Subchapter D, Chapter 48, if the
	60	+	charter holder would be entitled to the funding if the school were a
	61	+	school district.
108	62		(a-4) In addition to the funding provided by Subsections
109		-	(a), (a-2), and (a-3), a charter holder is entitled to receive
110		-	funding for the open-enrollment charter school under Sections
111		-	48.110 and 48.112 and Subchapter D, Chapter 48, if the charter
112		-	holder would be entitled to the funding if the school were a school
113		-	district.
114		-	SECTION 1.003. Section 13.054(f), Education Code, is
115		-	amended to read as follows:
116		-	(f) For five years beginning with the school year in which
117		-	the annexation occurs, a school district shall receive additional
118		-	funding under this subsection or Subsection (h). The amount of
119		-	funding shall be determined by multiplying the lesser of the
120		-	enlarged district's local fund assignment computed under Section
121		-	48.256 [42.252] or the enlarged district's total cost of tier one by
122		-	a fraction, the numerator of which is the number of students
123		-	residing in the territory annexed to the receiving district
124		-	preceding the date of the annexation and the denominator of which is
125		-	the number of students residing in the district as enlarged on the
126		-	date of the annexation, and dividing the resulting product by the
127		-	state compression percentage, as determined under Section 48.255.
128		-	SECTION 1.004. (a) Effective September 1, 2019, Section
129		-	25.084(b), Education Code, is amended to read as follows:
130		-	(b) The operation of schools year-round by a district does
131		-	not affect the amount of state funds to which the district is
132		-	entitled under Chapter 48 [42].
133		-	(b) Effective September 1, 2020, Section 25.084, Education
134		-	Code, is amended by amending Subsection (b) and adding Subsection
135		-	(c) to read as follows:
	63	+	(a), (a-1), (a-2), and (a-3), for an open-enrollment charter school
	64	+	that does not receive an allotment under Section 48.051, a charter
	65	+	holder is entitled to receive for the school an allotment under
	66	+	Section 48.101 for each student in average daily attendance based
	67	+	on the number of students in average daily attendance for which the
	68	+	school receives an allotment under Section 48.102.
	69	+	SECTION 1.002. Section 13.054, Education Code, is amended
	70	+	by adding Subsection (f-1) to read as follows:
	71	+	(f-1) Notwithstanding Subsection (f), for the 2019-2020 and
	72	+	2020-2021 school years, for a district receiving additional funding
	73	+	under Subsection (f) for an annexation that occurred before
	74	+	September 1, 2019, the value for the fraction under Subsection (f)
	75	+	shall be substituted with the value that is equal to the fraction
	76	+	determined under that subsection multiplied by the state
	77	+	compression percentage, as determined under Section 48.255. This
	78	+	subsection expires September 1, 2021.
	79	+	SECTION 1.003. Section 25.084, Education Code, is amended
	80	+	by amending Subsection (b) and adding Subsection (c) to read as
	81	+	follows:
136	82		(b) Except as provided by Subsection (c), the [The]
137	83		operation of schools year-round by a district does not affect the
138	84		amount of state funds to which the district is entitled under
139	85		Chapter 48 [42].
140	86		(c) A district that adopts a year-round system under this
141	87		section may receive the incentive aid under Section 48.0051 if the
142	88		district meets the criteria for receiving the incentive under that
143	89		section.
144		-	SECTION 1.~~005~~. Section 30.003, Education Code, is amended
	90	+	SECTION 1.004. Section 30.003, Education Code, is amended
145	91		by amending Subsection (f-1) and adding Subsection (f-2) to read as
146	92		follows:
147	93		(f-1) The commissioner shall determine the total amount
148	94		that the Texas School for the Blind and Visually Impaired and the
149	95		Texas School for the Deaf would have received from school districts
150	96		in accordance with this section if the following provisions had not
151	97		reduced the districts' share of the cost of providing education
152	98		services:
153	99		(1) H.B. No. 1, Acts of the 79th Legislature, 3rd
154	100		Called Session, 2006;
155	101		(2) Section 45.0032; and
156	102		(3) Section 48.255.
157	103		(f-2) The amount determined under Subsection (f-1), [had
158	104		not reduced the districts' share of the cost of providing education
159	105		services. That amount,] minus any amount the schools do receive
160	106		from school districts, shall be set aside as a separate account in
161	107		the foundation school fund and appropriated to those schools for
162	108		educational purposes.
163		-	SECTION 1.~~006~~. Section 44.004, Education Code, is amended
164		-	by amending Subsections (c)~~, (e),~~ and (i) and adding Subsection
165		-	~~(c-2) to~~ read as follows:
	109	+	SECTION 1.005. Section 44.004, Education Code, is amended
	110	+	by amending Subsections (c) and (e) and adding Subsection (c-2) to
	111	+	read as follows:
166	112		(c) The notice of public meeting to discuss and adopt the
167	113		budget and the proposed tax rate may not be smaller than one-quarter
168	114		page of a standard-size or a tabloid-size newspaper, and the
169	115		headline on the notice must be in 18-point or larger type. Subject
170	116		to Subsection (d), the notice must:
171	117		(1) contain a statement in the following form:
172	118		"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
173	119		"The (name of school district) will hold a public meeting at
174	120		(time, date, year) in (name of room, building, physical location,
175	121		city, state). The purpose of this meeting is to discuss the school
176	122		district's budget that will determine the tax rate that will be
177	123		adopted. Public participation in the discussion is invited." The
178	124		statement of the purpose of the meeting must be in bold type. In
179	125		reduced type, the notice must state: "The tax rate that is
180	126		ultimately adopted at this meeting or at a separate meeting at a
181	127		later date may not exceed the proposed rate shown below unless the
182	128		district publishes a revised notice containing the same information
183	129		and comparisons set out below and holds another public meeting to
184	130		discuss the revised notice.";
185	131		(2) contain a section entitled "Comparison of Proposed
186	132		Budget with Last Year's Budget," which must show the difference,
187	133		expressed as a percent increase or decrease, as applicable, in the
188	134		amounts budgeted for the preceding fiscal year and the amount
189	135		budgeted for the fiscal year that begins in the current tax year for
190	136		each of the following:
191	137		(A) maintenance and operations;
192	138		(B) debt service; and
193	139		(C) total expenditures;
194	140		(3) contain a section entitled "Total Appraised Value
195	141		and Total Taxable Value," which must show the total appraised value
196	142		and the total taxable value of all property and the total appraised
197	143		value and the total taxable value of new property taxable by the
198	144		district in the preceding tax year and the current tax year as
199	145		calculated under Section 26.04, Tax Code;
200	146		(4) contain a statement of the total amount of the
201	147		outstanding and unpaid bonded indebtedness of the school district;
202	148		(5) contain a section entitled "Comparison of Proposed
203	149		Rates with Last Year's Rates," which must:
204	150		(A) show in rows the tax rates described by
205	151		Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
206	152		property, for columns entitled "Maintenance & Operations,"
207	153		"Interest & Sinking Fund," and "Total," which is the sum of
208	154		"Maintenance & Operations" and "Interest & Sinking Fund":
209	155		(i) the school district's "Last Year's
210	156		Rate";
211	157		(ii) the "Rate to Maintain Same Level of
212	158		Maintenance & Operations Revenue & Pay Debt Service," which:
213	159		(a) in the case of "Maintenance &
214	160		Operations," is the tax rate that, when applied to the current
215	161		taxable value for the district, as certified by the chief appraiser
216	162		under Section 26.01, Tax Code, and as adjusted to reflect changes
217	163		made by the chief appraiser as of the time the notice is prepared,
218	164		would impose taxes in an amount that, when added to state funds to
219	165		be distributed to the district under Chapter 48 [42], would provide
220	166		the same amount of maintenance and operations taxes and state funds
221	167		distributed under Chapter 48 [42] per student in average daily
222	168		attendance for the applicable school year that was available to the
223	169		district in the preceding school year; and
224	170		(b) in the case of "Interest & Sinking
225	171		Fund," is the tax rate that, when applied to the current taxable
226	172		value for the district, as certified by the chief appraiser under
227	173		Section 26.01, Tax Code, and as adjusted to reflect changes made by
228	174		the chief appraiser as of the time the notice is prepared, and when
229	175		multiplied by the district's anticipated collection rate, would
230	176		impose taxes in an amount that, when added to state funds to be
231	177		distributed to the district under Chapter 46 and any excess taxes
232	178		collected to service the district's debt during the preceding tax
233	179		year but not used for that purpose during that year, would provide
234	180		the amount required to service the district's debt; and
235	181		(iii) the "Proposed Rate";
236	182		(B) contain fourth and fifth columns aligned with
237	183		the columns required by Paragraph (A) that show, for each row
238	184		required by Paragraph (A):
239	185		(i) the "Local Revenue per Student," which
240	186		is computed by multiplying the district's total taxable value of
241	187		property, as certified by the chief appraiser for the applicable
242	188		school year under Section 26.01, Tax Code, and as adjusted to
243	189		reflect changes made by the chief appraiser as of the time the
244	190		notice is prepared, by the total tax rate, and dividing the product
245	191		by the number of students in average daily attendance in the
246	192		district for the applicable school year; and
247	193		(ii) the "State Revenue per Student," which
248	194		is computed by determining the amount of state aid received or to be
249	195		received by the district under Chapters [42,] 43, [and] 46, and 48
250	196		and dividing that amount by the number of students in average daily
251	197		attendance in the district for the applicable school year; and
252	198		(C) contain an asterisk after each calculation
253	199		for "Interest & Sinking Fund" and a footnote to the section that, in
254	200		reduced type, states "The Interest & Sinking Fund tax revenue is
255	201		used to pay for bonded indebtedness on construction, equipment, or
256	202		both. The bonds, and the tax rate necessary to pay those bonds, were
257	203		approved by the voters of this district.";
258	204		(6) contain a section entitled "Comparison of Proposed
259	205		Levy with Last Year's Levy on Average Residence," which must:
260	206		(A) show in rows the information described by
261	207		Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
262	208		entitled "Last Year" and "This Year":
263	209		(i) "Average Market Value of Residences,"
264	210		determined using the same group of residences for each year;
265	211		(ii) "Average Taxable Value of Residences,"
266	212		determined after taking into account the limitation on the
267	213		appraised value of residences under Section 23.23, Tax Code, and
268	214		after subtracting all homestead exemptions applicable in each year,
269	215		other than exemptions available only to disabled persons or persons
270	216		65 years of age or older or their surviving spouses, and using the
271	217		same group of residences for each year;
272	218		(iii) "Last Year's Rate Versus Proposed
273	219		Rate per $100 Value"; and
274	220		(iv) "Taxes Due on Average Residence,"
275	221		determined using the same group of residences for each year; and
276	222		(B) contain the following information: "Increase
277	223		(Decrease) in Taxes" expressed in dollars and cents, which is
278	224		computed by subtracting the "Taxes Due on Average Residence" for
279	225		the preceding tax year from the "Taxes Due on Average Residence" for
280	226		the current tax year;
281	227		(7) contain the following statement in bold print:
282	228		"Under state law, the dollar amount of school taxes imposed on the
283	229		residence of a person 65 years of age or older or of the surviving
284	230		spouse of such a person, if the surviving spouse was 55 years of age
285	231		or older when the person died, may not be increased above the amount
286	232		paid in the first year after the person turned 65, regardless of
287	233		changes in tax rate or property value.";
288	234		(8) contain the following statement in bold print:
289		-	"Notice of Voter-Approval [Rollback] Rate: The highest tax rate the
290		-	district can adopt before requiring voter approval at an election
291		-	is (the school district voter-approval [rollback] rate determined
292		-	under Section 26.08, Tax Code). This election will be automatically
293		-	held if the district adopts a rate in excess of the voter-approval
294		-	[rollback] rate of (the school district voter-approval [rollback]
	235	+	"Notice of Rollback Rate: The highest tax rate the district can
	236	+	adopt before requiring voter approval at an election is (the school
	237	+	district rollback rate determined under Section 26.08, Tax Code).
	238	+	This election will be automatically held if the district adopts a
	239	+	rate in excess of the rollback rate of (the school district rollback
295	240		rate)."; and
296	241		(9) contain a section entitled "Fund Balances," which
297	242		must include the estimated amount of interest and sinking fund
298	243		balances and the estimated amount of maintenance and operation or
299	244		general fund balances remaining at the end of the current fiscal
300	245		year that are not encumbered with or by corresponding debt
301	246		obligation, less estimated funds necessary for the operation of the
302	247		district before the receipt of the first payment under Chapter 48
303	248		[42] in the succeeding school year.
304	249		(c-2) The notice described by Subsection (c) must include a
305	250		statement that a school district may not increase the district's
306	251		maintenance and operations tax rate to create a surplus in
307	252		maintenance and operations tax revenue for the purpose of paying
308	253		the district's debt service.
309	254		(e) A person who owns taxable property in a school district
310	255		is entitled to an injunction restraining the collection of taxes by
311	256		the district if the district has not complied with the requirements
312	257		of Subsections (b), (c), (c-1), (c-2), and (d), and, if applicable,
313	258		Subsection (i), and the failure to comply was not in good faith. An
314	259		action to enjoin the collection of taxes must be filed before the
315	260		date the [school] district delivers substantially all of its tax
316	261		bills.
317		-	(i) A school district that uses a certified estimate, as
318		-	authorized by Subsection (h), may adopt a budget at the public
319		-	meeting designated in the notice prepared using the estimate, but
320		-	the district may not adopt a tax rate before the district receives
321		-	the certified appraisal roll for the district required by Section
322		-	26.01(a), Tax Code. After receipt of the certified appraisal roll,
323		-	the district must publish a revised notice and hold another public
324		-	meeting before the district may adopt a tax rate that exceeds:
325		-	(1) the rate proposed in the notice prepared using the
326		-	estimate; or
327		-	(2) the district's voter-approval [rollback] rate
328		-	determined under Section 26.08, Tax Code, using the certified
329		-	appraisal roll.
330		-	SECTION 1.007. Subchapter A, Chapter 45, Education Code, is
	262	+	SECTION 1.006. Subchapter A, Chapter 45, Education Code, is
331	263		amended by adding Section 45.0021 to read as follows:
332	264		Sec. 45.0021. RESTRICTION ON MAINTENANCE TAX LEVY. (a) A
333	265		school district may not increase the rate of the district's
334	266		maintenance taxes described by Section 45.002 to create a surplus
335	267		in maintenance tax revenue for the purpose of paying the district's
336	268		debt service.
337	269		(b) A person who owns taxable property in a school district
338	270		is entitled to an injunction restraining the collection of taxes by
339	271		the district if the district adopts a maintenance tax rate in
340	272		violation of Subsection (a). An action to enjoin the collection of
341	273		taxes must be filed before the date the district delivers
342	274		substantially all of the district's tax bills.
343		-	SECTION 1.~~008~~. Section 45.003, Education Code, is amended
344		-	by adding Subsections (b-1) and (d-1) and amending ~~Subsections (d)~~
345		-	and (f) to read as follows:
	275	+	SECTION 1.007. Section 45.003, Education Code, is amended
	276	+	by adding Subsections (b-1), (d-1), (d-2), and (d-3) and amending
	277	+	Subsections (d) and (f) to read as follows:
346	278		(b-1) The ballot proposition under Subsection (b) must
347	279		include the following statement: "THIS IS A PROPERTY TAX INCREASE."
348	280		(d) A proposition submitted to authorize the levy of
349	281		maintenance taxes must include the question of whether the
350	282		governing board or commissioners court may levy, assess, and
351	283		collect annual ad valorem taxes for the further maintenance of
352	284		public schools, at a rate not to exceed the rate stated in the
353	285		proposition. For any year, the maintenance tax rate per $100 of
354	286		taxable value adopted by the district may not exceed the rate equal
355	287		to the sum of $0.17 and the product of the state compression
356	288		percentage, as determined under Section 48.255 [42.2516],
357	289		multiplied by $1.00 [$1.50].
358		-	(d-1) Except as ~~otherwise~~ provided by ~~this~~ subsection or
359		-	~~Section~~ 26.08(a-1), Tax Code, ~~if the voter-approval~~ ~~tax rate of~~ a
360		-	~~school district under Section 26.08(n),~~ Tax ~~Code, excluding~~ the
361		-	district's ~~current debt~~ rate ~~under Section 26.08(n)(1)(C), Tax~~
362		-	~~Code~~, ~~for the 2019 tax year is equal to or exceeds $0~~.~~97 per $100 of~~
363		-	~~taxable value,~~ ~~the~~ district ~~may not adopt a maintenance and~~
364		-	~~operations tax rate for~~ the ~~2019 tax year that exceeds the~~
365		-	~~district's voter-approval rate, excluding~~ the district~~'s current~~
366		-	~~debt~~ rate ~~under Section 26.08(n)(1)(C),~~ Tax ~~Code. A school~~
367		-	~~district~~ that, ~~before January 1, 2019, adopted a strategic plan~~
368		-	~~through action taken by~~ the ~~board~~ of ~~trustees in a public meeting~~
369		-	~~that proposed a maintenance~~ and ~~operations tax rate for~~ the ~~2019 tax~~
370		-	~~year that exceeds~~ the rate permitted under ~~this subsection may,~~
371		-	~~subject to voter approval, adopt~~ the ~~rate proposed in~~ the ~~plan minus~~
372		-	the ~~amount by which the district is required to reduce the~~
373		-	~~district's enrichment tax rate under Section 48.202(f).~~ This
374		-	~~subsection expires~~ September 1, 2020.
	290	+	(d-1) Except as provided by Subsection (d-2) or Section
	291	+	26.08(a-1), Tax Code, a school district may not adopt a maintenance
	292	+	and operations tax rate for the 2019 tax year that exceeds the tax
	293	+	rate that results after adjusting the district's 2018 tax rate in
	294	+	accordance with Sections 45.0032, 48.202, and 48.255.
	295	+	(d-2) A school district that, before January 1, 2019,
	296	+	adopted a strategic plan through action taken by the board of
	297	+	trustees of the school district during a public meeting that
	298	+	proposed a maintenance and operations tax rate for the 2019 tax year
	299	+	that exceeds the rate permitted under Subsection (d-1) may, subject
	300	+	to voter approval, adopt a rate that is equal to the sum of the rate
	301	+	permitted under Subsection (d-1) and one-half the difference
	302	+	between the maximum rate permitted under Section 45.003, as that
	303	+	section existed during the 2018 tax year, and the district's
	304	+	adopted tax rate for the 2018 tax year.
	305	+	(d-3) Subsections (d-1) and (d-2) and this subsection
	306	+	expire September 1, 2020.
375	307		(f) Notwithstanding any other law, a district that levied a
376	308		maintenance tax for the 2005 tax year at a rate greater than $1.50
377	309		per $100 of taxable value in the district as permitted by special
378	310		law may not levy a maintenance tax at a rate that exceeds the rate
379	311		per $100 of taxable value that is equal to the sum of:
380	312		(1) $0.17; and
381	313		(2) the product of 66.67 percent [the state
382	314		compression percentage, as determined under Section 42.2516,]
383	315		multiplied by the rate of the maintenance tax levied by the district
384	316		for the 2005 tax year, minus the amount by which $1.00 exceeds the
385	317		product of the state compression percentage, as determined under
386	318		Section 48.255, multiplied by $1.00.
387		-	SECTION 1.~~009~~. Subchapter A, Chapter 45, Education Code, is
	319	+	SECTION 1.008. Subchapter A, Chapter 45, Education Code, is
388	320		amended by adding Section 45.0032 to read as follows:
389	321		Sec. 45.0032. COMPONENTS OF MAINTENANCE AND OPERATIONS TAX.
390	322		(a) A school district's tier one maintenance and operations tax
391	323		rate is the number of cents levied by the district for maintenance
392	324		and operations that does not exceed the product of the state
393	325		compression percentage, as determined under Section 48.255,
394	326		multiplied by $1.00.
395		-	(a-1) This subsection applies to a school district with a
396		-	tier one maintenance and operations tax rate for the 2018-2019
397		-	school year that was less than $1.00 per $100 of taxable value. For
398		-	purposes of determining a school district's tier one maintenance
399		-	and operations tax rate under Subsection (a) for the 2019-2020
400		-	school year, the state compression percentage, as determined under
401		-	Section 48.255, is applied to the number of cents levied by the
402		-	district for the 2018-2019 school year for maintenance and
403		-	operations that does not exceed $1.00. This subsection expires
404		-	September 1, 2020.
405	327		(b) A district's enrichment tax rate consists of:
406	328		(1) any cents of additional maintenance and operations
407		-	tax effort, not to exceed ~~eight~~ cents over the maximum tax rate
	329	+	tax effort, not to exceed six cents over the maximum tax rate
408	330		described by Subsection (a); and
409	331		(2) any cents of additional maintenance and operations
410	332		tax effort that exceeds the sum of the maximum tax rate described by
411	333		Subsection (a) and the maximum number of cents permitted under
412	334		Subdivision (1).
413	335		(c) For a district to which Section 45.003(f) applies, any
414	336		cents of maintenance and operations tax effort that exceeds the
415	337		maximum rate permitted under Section 45.003(d) are not included in
416	338		the district's tier one maintenance and operations tax rate under
417	339		Subsection (a) or the district's enrichment tax rate under
418	340		Subsection (b), and the district is not entitled to the guaranteed
419	341		yield amount of state funds under Section 48.202 for those cents of
420	342		tax effort.
421	343		(d) For a district to which Section 26.08(a-1), Tax Code,
422	344		applies, the amount by which the district's maintenance tax rate
423		-	exceeds the district's voter-approval tax rate, excluding the
424		-	district's current debt rate under Section 26.08(n)(1)(C), Tax
425		-	Code, for the preceding year is not considered in determining a
426		-	district's tier one maintenance and operations tax rate under
427		-	Subsection (a) or the district's enrichment tax rate under
428		-	Subsection (b) for the current tax year.
429		-	(e) For the 2019 tax year, Section 48.202(f) applies to a
430		-	district's maintenance and operations tax rate after adjusting the
431		-	district's rate in accordance with this section. This subsection
432		-	expires September 1, 2020.
433		-	SECTION 1.010. Subtitle I, Title 2, Education Code, is
434		-	amended by adding Chapter 47 to read as follows:
435		-	CHAPTER 47. TAX REDUCTION AND EXCELLENCE IN EDUCATION FUND
436		-	Sec. 47.001. DEFINITION. In this chapter, "fund" means the
437		-	tax reduction and excellence in education fund.
438		-	Sec. 47.002. FUND ESTABLISHED. (a) The tax reduction and
439		-	excellence in education fund is a special fund in the state treasury
440		-	outside the general revenue fund.
441		-	(b) The fund consists of:
442		-	(1) money appropriated by the legislature for deposit
443		-	to the credit of the fund;
444		-	(2) gifts to the state for the purposes of the fund;
445		-	and
446		-	(3) money directed by law for deposit to the credit of
447		-	the fund.
448		-	Sec. 47.003. USES OF FUND. Except as otherwise provided by
449		-	this chapter, money in the fund may be appropriated only:
450		-	(1) to pay the cost of tier one allotments under
451		-	Chapter 48; or
452		-	(2) for the purpose of reducing school district
453		-	maintenance and operations ad valorem tax rates.
454		-	Sec. 47.004. DEPOSIT OF CERTAIN MONEY DEDICATED FOR SCHOOL
455		-	DISTRICT AD VALOREM TAX RATE REDUCTION. (a) The comptroller shall
456		-	deposit to the credit of the fund money that Section 49-g, Article
457		-	III, Texas Constitution, dedicates to the purpose of reducing
458		-	school district maintenance and operations ad valorem tax rates.
459		-	(b) Money deposited to the fund under this section may be
460		-	appropriated from the fund only for the purpose described by
461		-	Section 47.003(2).
462		-	Sec. 47.005. CERTAIN MONEY DISTRIBUTED TO AVAILABLE SCHOOL
463		-	FUND. (a) Of the money distributed to the available school fund
464		-	each year under Section 5(g), Article VII, Texas Constitution, the
465		-	amount that exceeds the first $300 million is considered part of the
466		-	tax reduction and excellence in education fund.
467		-	(b) Money considered part of the fund as described by
468		-	Subsection (a) may be appropriated only to pay the cost of tier one
469		-	allotments under Chapter 48.
470		-	Sec. 47.006. DEPOSIT OF MONEY BASED ON CERTAIN SALES AND USE
471		-	TAX COLLECTIONS. (a) The comptroller shall deposit to the credit
472		-	of the fund on or before the fifth business day after the end of each
473		-	month an amount of general revenue equal to the amount of state
474		-	sales and use tax revenue collected by marketplace providers on
475		-	sales of taxable items made through the marketplace under Section
476		-	151.0242, Tax Code, and remitted to this state during the preceding
477		-	month, less any amount of that revenue the comptroller estimates
478		-	would have been collected and remitted if Section 151.0242 were not
479		-	law.
480		-	(b) Money deposited to the fund under this section may be
481		-	appropriated from the fund only for the purpose described by
482		-	Section 47.003(2).
483		-	SECTION 1.011. Subtitle I, Title 2, Education Code, is
	345	+	exceeds the district's rollback tax rate for the preceding year is
	346	+	not considered in determining a district's tier one maintenance and
	347	+	operations tax rate under Subsection (a) or the district's
	348	+	enrichment tax rate under Subsection (b) for the current tax year.
	349	+	SECTION 1.009. Subtitle I, Title 2, Education Code, is
484	350		amended by adding Chapter 48, and a heading is added to that chapter
485	351		to read as follows:
486	352		CHAPTER 48. FOUNDATION SCHOOL PROGRAM
487		-	SECTION 1.~~012~~. Chapter 48, Education Code, as added by this
	353	+	SECTION 1.010. Chapter 48, Education Code, as added by this
488	354		Act, is amended by adding Subchapter A, and a heading is added to
489	355		that subchapter to read as follows:
490	356		SUBCHAPTER A. GENERAL PROVISIONS
491		-	SECTION 1.~~013~~. Sections 42.001, 42.002, 42.003, 42.004, and
	357	+	SECTION 1.011. Sections 42.001, 42.002, 42.003, 42.004, and
492	358		42.005, Education Code, are transferred to Subchapter A, Chapter
493	359		48, Education Code, as added by this Act, redesignated as Sections
494	360		48.001, 48.002, 48.003, 48.004, and 48.005, Education Code, and
495	361		amended to read as follows:
496	362		Sec. 48.001 [42.001]. STATE POLICY. (a) It is the policy
497	363		of this state that the provision of public education is a state
498	364		responsibility and that a thorough and efficient system be provided
499	365		and substantially financed through state revenue sources so that
500	366		each student enrolled in the public school system shall have access
501	367		to programs and services that are appropriate to the student's
502	368		educational needs and that are substantially equal to those
503	369		available to any similar student, notwithstanding varying local
504	370		economic factors.
505	371		(b) The public school finance system of this state shall
506	372		adhere to a standard of neutrality that provides for substantially
507	373		equal access to similar revenue per student at similar tax effort,
508	374		considering all state and local tax revenues of districts after
509	375		acknowledging all legitimate student and district cost
510	376		differences.
511	377		Sec. 48.002 [42.002]. PURPOSES OF FOUNDATION SCHOOL
512	378		PROGRAM. (a) The purposes of the Foundation School Program set
513	379		forth in this chapter are to guarantee that each school district in
514	380		the state has:
515	381		(1) adequate resources to provide each eligible
516	382		student a basic instructional program and facilities suitable to
517	383		the student's educational needs; and
518	384		(2) access to a substantially equalized program of
519	385		financing in excess of basic costs for certain services, as
520	386		provided by this chapter.
521	387		(b) The Foundation School Program consists of:
522	388		(1) two tiers that in combination provide for:
523	389		(A) sufficient financing for all school
524	390		districts to provide a basic program of education that is rated
525	391		acceptable or higher under Section 39.054 and meets other
526	392		applicable legal standards; and
527	393		(B) substantially equal access to funds to
528	394		provide an enriched program; and
529	395		(2) a facilities component as provided by Chapter 46.
530	396		Sec. 48.003 [42.003]. STUDENT ELIGIBILITY. (a) A
531	397		student is entitled to the benefits of the Foundation School
532	398		Program if, on September 1 of the school year, the student:
533	399		(1) is 5 years of age or older and under 21 years of age
534	400		and has not graduated from high school, or is at least 21 years of
535	401		age and under 26 years of age and has been admitted by a school
536	402		district to complete the requirements for a high school diploma; or
537	403		(2) is at least 19 years of age and under 26 years of
538	404		age and is enrolled in an adult high school diploma and industry
539	405		certification charter school pilot program under Section 29.259.
540	406		(b) A student to whom Subsection (a) does not apply is
541	407		entitled to the benefits of the Foundation School Program if the
542	408		student is enrolled in a prekindergarten class under Section 29.153
543	409		[or Subchapter E-1, Chapter 29].
544	410		(c) A child may be enrolled in the first grade if the child
545	411		is at least six years of age at the beginning of the school year of
546	412		the district or has been enrolled in the first grade or has
547	413		completed kindergarten in the public schools in another state
548	414		before transferring to a public school in this state.
549	415		(d) Notwithstanding Subsection (a), a student younger than
550	416		five years of age is entitled to the benefits of the Foundation
551	417		School Program if:
552	418		(1) the student performs satisfactorily on the
553	419		assessment instrument administered under Section 39.023(a) to
554	420		students in the third grade; and
555	421		(2) the district has adopted a policy for admitting
556	422		students younger than five years of age.
557		-	Sec. 48.004 [42.004]. ADMINISTRATION OF THE PROGRAM. ~~The~~
558		-	commissioner[, in accordance with the rules of the State Board of
559		-	Education,] shall adopt rules and take [such] action and require
	423	+	Sec. 48.004 [42.004]. ADMINISTRATION OF THE PROGRAM. (a)
	424	+	The commissioner[, in accordance with the rules of the State Board
	425	+	of Education,] shall adopt rules and take [such] action and require
560	426		[such] reports consistent with this chapter as [may be] necessary
561	427		to implement and administer the Foundation School Program.
	428	+	(b) A decision made by the commissioner under this chapter
	429	+	is final and may not be appealed.
562	430		Sec. 48.005 [42.005]. AVERAGE DAILY ATTENDANCE. (a) In
563	431		this chapter, average daily attendance is:
564	432		(1) the quotient of the sum of attendance for each day
565	433		of the minimum number of days of instruction as described under
566	434		Section 25.081(a) divided by the minimum number of days of
567	435		instruction;
568	436		(2) for a district that operates under a flexible year
569	437		program under Section 29.0821, the quotient of the sum of
570	438		attendance for each actual day of instruction as permitted by
571	439		Section 29.0821(b)(1) divided by the number of actual days of
572	440		instruction as permitted by Section 29.0821(b)(1);
573	441		(3) for a district that operates under a flexible
574	442		school day program under Section 29.0822, the average daily
575	443		attendance as calculated by the commissioner in accordance with
576	444		Sections 29.0822(d) and (d-1); or
577	445		(4) for a district that operates a half-day program or
578	446		a full-day program under Section 29.153(c), one-half of the average
579	447		daily attendance calculated under Subdivision (1).
580	448		(b) A school district that experiences a decline of two
581	449		percent or more in average daily attendance shall be funded on the
582	450		basis of:
583	451		(1) the actual average daily attendance of the
584	452		preceding school year, if the decline is the result of the closing
585	453		or reduction in personnel of a military base; or
586	454		(2) subject to Subsection (e), an average daily
587	455		attendance not to exceed 98 percent of the actual average daily
588	456		attendance of the preceding school year, if the decline is not the
589	457		result of the closing or reduction in personnel of a military base.
590	458		(c) The commissioner shall adjust the average daily
591	459		attendance of a school district that has a significant percentage
592	460		of students who are migratory children as defined by 20 U.S.C.
593	461		Section 6399.
594	462		(d) The commissioner may adjust the average daily
595	463		attendance of a school district in which a disaster, flood, extreme
596	464		weather condition, fuel curtailment, or other calamity has a
597	465		significant effect on the district's attendance.
598	466		(e) For each school year, the commissioner shall adjust the
599	467		average daily attendance of school districts that are entitled to
600	468		funding on the basis of an adjusted average daily attendance under
601	469		Subsection (b)(2) so that:
602	470		(1) all districts are funded on the basis of the same
603	471		percentage of the preceding year's actual average daily attendance;
604	472		and
605	473		(2) the total cost to the state does not exceed the
606	474		amount specifically appropriated for that year for purposes of
607	475		Subsection (b)(2).
608	476		(f) An open-enrollment charter school is not entitled to
609	477		funding based on an adjustment under Subsection (b)(2).
610	478		(g) If a student may receive course credit toward the
611	479		student's high school academic requirements and toward the
612	480		student's higher education academic requirements for a single
613	481		course, including a course provided under Section 28.009 by a
614	482		public institution of higher education, the time during which the
615	483		student attends the course shall be counted as part of the minimum
616	484		number of instructional hours required for a student to be
617	485		considered a full-time student in average daily attendance for
618	486		purposes of this section.
619	487		(g-1) The commissioner shall adopt rules to calculate
620	488		average daily attendance for students participating in a blended
621	489		learning program in which classroom instruction is supplemented
622	490		with applied workforce learning opportunities, including
623	491		participation of students in internships, externships, and
624	492		apprenticeships.
625	493		(h) Subject to rules adopted by the commissioner under
626	494		Section 48.007(b) [42.0052(b)], time that a student participates in
627	495		an off-campus instructional program approved under Section
628	496		48.007(a) [42.0052(a)] shall be counted as part of the minimum
629	497		number of instructional hours required for a student to be
630	498		considered a full-time student in average daily attendance for
631	499		purposes of this section.
632	500		(i) A district or a charter school operating under Chapter
633	501		12 that operates a prekindergarten program is eligible to receive
634	502		one-half of average daily attendance under Subsection (a) if the
635	503		district's or charter school's prekindergarten program provides at
636	504		least 32,400 minutes of instructional time to students.
637	505		(j) A district or charter school is eligible to earn full
638	506		average daily attendance under Subsection (a) if the district or
639	507		school provides at least 43,200 minutes of instructional time to
640	508		students enrolled in:
641	509		(1) a dropout recovery school or program operating
642	510		under Section 12.1141(c) or Section 39.0548;
643	511		(2) an alternative education program operating under
644	512		Section 37.008;
645	513		(3) a school program located at a day treatment
646	514		facility, residential treatment facility, psychiatric hospital, or
647	515		medical hospital;
648	516		(4) a school program offered at a correctional
649	517		facility; or
650	518		(5) a school operating under Section 29.259.
651	519		(k) A charter school operating under a charter granted under
652	520		Chapter 12 before January 1, 2015, is eligible to earn full average
653	521		daily attendance under Subsection (a), as that subsection existed
654	522		immediately before January 1, 2015, for:
655	523		(1) all campuses of the charter school operating
656	524		before January 1, 2015; and
657	525		(2) any campus or site expansion approved on or after
658	526		January 1, 2015, provided that the charter school received an
659	527		academic accountability performance rating of C or higher, and the
660	528		campus or site expansion is approved by the commissioner.
661	529		(l) A school district campus or charter school described by
662	530		Subsection (j) may operate more than one program and be eligible for
663	531		full average daily attendance for each program if the programs
664	532		operated by the district campus or charter school satisfy all
665	533		applicable state and federal requirements.
666	534		(m) The commissioner shall adopt rules necessary to
667	535		implement this section, including rules that:
668	536		(1) establish the minimum amount of instructional time
669	537		per day that allows a school district or charter school to be
670	538		eligible for full average daily attendance, which may differ based
671	539		on the instructional program offered by the district or charter
672	540		school;
673	541		(2) establish the requirements necessary for a school
674	542		district or charter school to be eligible for one-half of average
675	543		daily attendance, which may differ based on the instructional
676	544		program offered by the district or charter school; and
677	545		(3) proportionally reduce the average daily
678	546		attendance for a school district if any campus or instructional
679	547		program in the district provides fewer than the required minimum
680	548		minutes of instruction to students.
681	549		(n) To assist school districts in implementing this section
682	550		as amended by H.B. 2442, Acts of the 85th Legislature, Regular
683	551		Session, 2017, [or similar legislation,] the commissioner may waive
684	552		a requirement of this section or adopt rules to implement this
685	553		section. [This subsection expires at the end of the 2018-2019
686	554		school year.]
687		-	SECTION 1.~~014~~. ~~Effective September 1, 2020,~~ Subchapter A,
688		-	~~Chapter 48, Education Code, as~~ added by this Act, is amended by
689		-	~~adding Section 48.0051 to read as~~ follows:
	555	+	SECTION 1.012. Subchapter A, Chapter 48, Education Code, as
	556	+	added by this Act, is amended by adding Section 48.0051 to read as
	557	+	follows:
690	558		Sec. 48.0051. INCENTIVE FOR ADDITIONAL INSTRUCTIONAL DAYS.
691	559		(a) Subject to Subsection (a-1), the commissioner shall adjust the
692	560		average daily attendance of a school district or open-enrollment
693	561		charter school under Section 48.005 in the manner provided by
694	562		Subsection (b) if the district or school:
695	563		(1) provides the minimum number of minutes of
696	564		operational and instructional time required under Section 25.081
697	565		and commissioner rules adopted under that section over at least 180
698	566		days of instruction; and
699	567		(2) offers an additional 30 days of half-day
700		-	instruction for students ~~enrolled in prekindergarten through fifth~~
701		-	grade.
	568	+	instruction for students who are educationally disadvantaged and
	569	+	enrolled in prekindergarten through fifth grade.
702	570		(a-1) A school district entitled to an incentive under this
703	571		section and funding for a campus under Section 48.252 may receive
704	572		only the incentive or funding for the campus, as applicable, that
705	573		would result in the greater amount of funding.
706	574		(b) For a school district or open-enrollment charter school
707	575		described by Subsection (a), the commissioner shall increase the
708	576		average daily attendance of the district or school under Section
709	577		48.005 by the amount that results from the quotient of the sum of
710	578		attendance by students described by Subsection (a)(2) for each of
711	579		the 30 additional instructional days of half-day instruction that
712	580		are provided divided by 180.
713	581		(c) The commissioner may provide the incentive under this
714	582		section to a school district or open-enrollment charter school that
715	583		intended, but due to circumstances beyond the district's or
716	584		school's control, including the occurrence of a natural disaster
717	585		affecting the district or school, was unable to meet the
718	586		requirement for instruction under Section 25.081 plus an additional
719	587		30 days of half-day instruction. The commissioner may
720	588		proportionately reduce the incentive provided to a district or
721	589		school described by this subsection.
722	590		(d) This section does not prohibit a school district from
723	591		providing the minimum number of minutes of operational and
724	592		instructional time required under Section 25.081 and commissioner
725	593		rules adopted under that section over fewer than 180 days of
726	594		instruction.
727	595		(e) The agency shall assist school districts and
728	596		open-enrollment charter schools in qualifying for the incentive
729	597		under this section.
730		-	(f) A school district or open-enrollment charter school may
731		-	use funding attributable to the incentive provided under this
732		-	section to pay costs associated with providing academic instruction
733		-	in a voluntary summer program for students enrolled in the district
734		-	or school.
735		-	(g) The commissioner shall adopt rules necessary for the
	598	+	(f) The commissioner shall adopt rules necessary for the
736	599		implementation of this section.
737		-	SECTION 1.~~015~~. Sections 42.0051 and 42.0052, Education
	600	+	SECTION 1.013. Sections 42.0051 and 42.0052, Education
738	601		Code, are transferred to Subchapter A, Chapter 48, Education Code,
739	602		as added by this Act, redesignated as Sections 48.006 and 48.007,
740	603		Education Code, and amended to read as follows:
741	604		Sec. 48.006 [42.0051]. AVERAGE DAILY ATTENDANCE FOR
742		-	DISTRICTS IN DISASTER AREA. (a) ~~The [~~From funds specifically
	605	+	DISTRICTS IN DISASTER AREA. (a) From funds specifically
743	606		appropriated for the purpose or other funds available to the
744		-	commissioner for that purpose, the] commissioner ~~may [~~shall] adjust
745		-	~~the~~ average daily attendance of a school district all or part of
746		-	~~which~~ is located in an area declared a disaster area by the governor
747		-	~~under~~ Chapter 418, Government Code, if the district experiences a
748		-	~~decline~~ in average daily attendance that is reasonably attributable
749		-	~~to the~~ impact of the disaster.
	607	+	commissioner for that purpose, the commissioner shall adjust the
	608	+	average daily attendance of a school district all or part of which
	609	+	is located in an area declared a disaster area by the governor under
	610	+	Chapter 418, Government Code, if the district experiences a decline
	611	+	in average daily attendance that is reasonably attributable to the
	612	+	impact of the disaster.
750	613		(b) The adjustment must be sufficient to ensure that the
751	614		district receives funding comparable to the funding that the
752	615		district would have received if the decline in average daily
753	616		attendance reasonably attributable to the impact of the disaster
754	617		had not occurred.
755		-	(c) The commissioner ~~may [~~shall] make the adjustment ~~under~~
756		-	~~[required by]~~ this section for the two-year period following the
757		-	~~date of the~~ governor's initial proclamation or executive order
758		-	~~declaring the~~ state of disaster.
	618	+	(c) The commissioner shall make the adjustment required by
	619	+	this section for the two-year period following the date of the
	620	+	governor's initial proclamation or executive order declaring the
	621	+	state of disaster.
759	622		(d) Section 48.005(b)(2) [42.005(b)(2)] does not apply to a
760	623		district that receives an adjustment under this section.
761	624		(e) A district that receives an adjustment under this
762	625		section may not receive any additional adjustment under Section
763	626		48.005(d) [42.005(d)] for the decline in average daily attendance
764	627		on which the adjustment under this section is based.
765	628		(f) For purposes of this title, a district's adjusted
766	629		average daily attendance under this section is considered to be the
767	630		district's average daily attendance as determined under Section
768	631		48.005 [42.005].
769	632		Sec. 48.007 [42.0052]. OFF-CAMPUS PROGRAMS APPROVED FOR
770	633		PURPOSES OF AVERAGE DAILY ATTENDANCE. (a) The commissioner may,
771	634		based on criteria developed by the commissioner, approve
772	635		instructional programs provided off campus by an entity other than
773	636		a school district or open-enrollment charter school as a program in
774	637		which participation by a student of a district or charter school may
775	638		be counted for purposes of determining average daily attendance in
776	639		accordance with Section 48.005(h) [42.005(h)].
777	640		(b) The commissioner shall adopt by rule verification and
778	641		reporting procedures concerning time spent by students
779	642		participating in instructional programs approved under Subsection
780	643		(a).
781		-	SECTION 1.~~016~~. Sections 42.006(a), (b), (c), and (d),
	644	+	SECTION 1.014. Sections 42.006(a), (b), (c), and (d),
782	645		Education Code, are transferred to Subchapter A, Chapter 48,
783	646		Education Code, as added by this Act, redesignated as Section
784	647		48.008, Education Code, and amended to read as follows:
785	648		Sec. 48.008. PUBLIC EDUCATION INFORMATION MANAGEMENT
786	649		SYSTEM (PEIMS). (a) Each school district shall participate in the
787	650		Public Education Information Management System (PEIMS) and shall
788	651		provide through that system information required for the
789	652		administration of this chapter and of other appropriate provisions
790	653		of this code.
791	654		(b) Each school district shall use a uniform accounting
792	655		system adopted by the commissioner for the data required to be
793	656		reported for the Public Education Information Management System.
794	657		(c) Annually, the commissioner shall review the Public
795	658		Education Information Management System and shall repeal or amend
796	659		rules that require school districts to provide information through
797	660		the Public Education Information Management System that is not
798	661		necessary. In reviewing and revising the Public Education
799	662		Information Management System, the commissioner shall develop
800	663		rules to ensure that the system:
801	664		(1) provides useful, accurate, and timely information
802	665		on student demographics and academic performance, personnel, and
803	666		school district finances;
804	667		(2) contains only the data necessary for the
805	668		legislature and the agency to perform their legally authorized
806	669		functions in overseeing the public education system; and
807	670		(3) does not contain any information related to
808	671		instructional methods, except as provided by Section 29.066 or
809	672		required by federal law.
810	673		(d) The commissioner's rules must ensure that the Public
811	674		Education Information Management System links student performance
812	675		data to other related information for purposes of efficient and
813	676		effective allocation of scarce school resources, to the extent
814	677		practicable using existing agency resources and appropriations.
815		-	SECTION 1.~~017~~. Sections 42.006(a-1), (a-3), and (a-4),
	678	+	SECTION 1.015. Sections 42.006(a-1), (a-3), and (a-4),
816	679		Education Code, Section 42.006(a-2), Education Code, as added by
817	680		Chapter 550 (S.B. 490), Acts of the 85th Legislature, Regular
818	681		Session, 2017, and Section 42.006(a-2), as added by Chapter 916
819	682		(S.B. 1404), Acts of the 85th Legislature, Regular Session, 2017,
820	683		are transferred to Subchapter A, Chapter 48, Education Code, as
821	684		added by this Act, redesignated as Section 48.009, Education Code,
822	685		and amended to read as follows:
823	686		Sec. 48.009. REQUIRED PEIMS REPORTING. (a) In this
824	687		section, "full-time equivalent school counselor" means 40 hours of
825	688		counseling services a week.
826	689		(b) [(a-1)] The commissioner by rule shall require each
827	690		school district and open-enrollment charter school to report
828	691		through the Public Education Information Management System
829	692		information regarding:
830	693		(1) the number of students enrolled in the district or
831	694		school who are identified as having dyslexia;
832	695		(2) [. The agency shall maintain the information
833	696		provided in accordance with this subsection.
834	697		[(a-2) The commissioner by rule shall require each school
835	698		district and open-enrollment charter school to report through the
836	699		Public Education Information Management System information
837	700		regarding] the availability of school counselors, including [at
838	701		each campus. The commissioner's rules shall require a district or
839	702		school to report] the number of full-time equivalent school
840	703		counselors, [providing counseling services] at each [a] campus;
841	704		(3) [. For purposes of this subsection, "full-time
842	705		equivalent school counselor" means 40 hours of counseling services
843	706		a week. The agency shall maintain the information provided in
844	707		accordance with this subsection.
845	708		[(a-2) The commissioner by rule shall require each school
846	709		district and open-enrollment charter school to report through the
847	710		Public Education Information Management System information for
848	711		each campus of the district or school regarding:
849	712		[(1)] the availability of expanded learning
850	713		opportunities as described by Section 33.252 at each campus; [and]
851	714		(4) [(2) the number of students participating in each
852	715		of the categories of expanded learning opportunities listed under
853	716		Section 33.252(b).
854	717		[(a-3) The commissioner by rule shall require each school
855	718		district and open-enrollment charter school to annually report
856	719		through the Public Education Information Management System
857	720		information regarding] the total number of students, other than
858	721		students described by Subdivision (5) [Subsection (a-4)], enrolled
859	722		in the district or school with whom the district or school, as
860	723		applicable, used intervention strategies, as that term is defined
861	724		by Section 26.004, at any time during the year for which the report
862	725		is made; and
863	726		(5) [. The agency shall maintain the information
864	727		provided in accordance with this subsection.
865	728		[(a-4) The commissioner by rule shall require each school
866	729		district and open-enrollment charter school to annually report
867	730		through the Public Education Information Management System
868	731		information regarding] the total number of students enrolled in the
869	732		district or school to whom the district or school provided aids,
870	733		accommodations, or services under Section 504, Rehabilitation Act
871	734		of 1973 (29 U.S.C. Section 794), at any time during the year for
872	735		which the report is made.
873	736		(c) The agency shall maintain the information provided in
874	737		accordance with this section [subsection].
875		-	(d) Not later than January 1, 2020, the commissioner shall
876		-	adopt rules requiring the Public Education Information Management
877		-	System (PEIMS) to include pregnancy as a reason a student withdraws
878		-	from or otherwise no longer attends public school.
879		-	SECTION 1.018. Section 42.009, Education Code, is
	738	+	SECTION 1.016. Section 42.009, Education Code, is
880	739		transferred to Subchapter A, Chapter 48, Education Code, as added
881	740		by this Act, redesignated as Section 48.010, Education Code, and
882	741		amended to read as follows:
883	742		Sec. 48.010 [42.009]. DETERMINATION OF FUNDING LEVELS.
884	743		(a) Not later than July 1 of each year, the commissioner shall
885	744		determine for each school district whether the estimated amount of
886	745		state and local funding per student in weighted average daily
887	746		attendance to be provided to the district under the Foundation
888	747		School Program for maintenance and operations for the following
889	748		school year is less than the amount provided to the district for the
890	749		2010-2011 school year. If the amount estimated to be provided is
891	750		less, the commissioner shall certify the percentage decrease in
892	751		funding to be provided to the district.
893	752		(b) In making the determinations regarding funding levels
894	753		required by Subsection (a), the commissioner shall:
895	754		(1) make adjustments as necessary to reflect changes
896	755		in a school district's maintenance and operations tax rate;
897	756		(2) for a district required to [take action under
898	757		Chapter 41 to] reduce its local revenue level under Section 48.257
899	758		[wealth per student to the equalized wealth level], base the
900	759		determinations on the district's net funding levels after deducting
901	760		any amounts required to be expended by the district to comply with
902	761		Chapter 49 [41]; and
903	762		(3) determine a district's weighted average daily
904	763		attendance in accordance with this chapter as it existed on January
905	764		1, 2011.
906		-	SECTION 1.~~019~~. Subchapter A, Chapter 48, Education Code, as
	765	+	SECTION 1.017. Subchapter A, Chapter 48, Education Code, as
907	766		added by this Act, is amended by adding Sections 48.011 and 48.012
908	767		to read as follows:
909	768		Sec. 48.011. COMMISSIONER AUTHORITY TO RESOLVE UNINTENDED
910	769		CONSEQUENCES FROM SCHOOL FINANCE FORMULAS. (a) Subject to
911	770		Subsections (b) and (d), the commissioner may adjust a school
912	771		district's funding entitlement under this chapter if the funding
913	772		formulas used to determine the district's entitlement result in an
914	773		unanticipated loss or gain for a district.
915		-	(a-1) The commissioner may modify dates relating to the
916		-	adoption of a school district's maintenance and operations tax rate
917		-	and, if applicable, an election required for the district to adopt
918		-	that rate as necessary to implement the changes made by H.B. 3, 86th
919		-	Legislature, Regular Session, 2019.
920		-	(b) Before making an adjustment under Subsection (a) or
921		-	(a-1), the commissioner shall notify and must receive approval from
922		-	the Legislative Budget Board and the office of the governor.
	774	+	(b) Before making an adjustment under Subsection (a), the
	775	+	commissioner shall notify and must receive approval from the
	776	+	Legislative Budget Board and the office of the governor.
923	777		(c) If the commissioner makes an adjustment under
924	778		Subsection (a), the commissioner must provide to the legislature an
925	779		explanation regarding the changes necessary to resolve the
926	780		unintended consequences.
927		-	(d) Beginning with the 2021-2022 school year, the
928		-	commissioner may not make an adjustment under Subsection (a) or
929		-	(a-1).
930		-	(e) This section expires September 1, 2023.
931		-	Sec. 48.012. STUDY ON GEOGRAPHIC EDUCATION COST VARIATIONS
932		-	AND TRANSPORTATION COSTS. (a) The agency shall enter into a
933		-	memorandum of understanding with a public institution of higher
934		-	education to conduct a study on:
935		-	(1) geographic variations in known resource costs and
936		-	costs of education due to factors beyond the control of school
937		-	districts; and
938		-	(2) school district transportation costs.
939		-	(b) The study must include a review of cost drivers for
940		-	school districts.
941		-	(c) Not later than December 1, 2020, the agency shall submit
	781	+	(d) Beginning with the 2022-2023 school year, the
	782	+	commissioner may not make an adjustment under Subsection (a).
	783	+	(e) This section expires September 1, 2024.
	784	+	Sec. 48.012. STUDY ON GEOGRAPHIC EDUCATION COST VARIATIONS.
	785	+	(a) The agency shall conduct a study on geographic variations in
	786	+	known resource costs and costs of education due to factors beyond
	787	+	the control of school districts. The study must include a review of
	788	+	cost drivers for school districts.
	789	+	(b) Not later than December 1, 2020, the agency shall submit
942	790		to the legislature a report on the results of the study.
943		-	(d) This section expires September 1, 2021.
944		-	SECTION 1.~~020~~. Chapter 48, Education Code, as added by this
	791	+	(c) This section expires September 1, 2021.
	792	+	SECTION 1.018. Chapter 48, Education Code, as added by this
945	793		Act, is amended by adding Subchapter B, and a heading is added to
946	794		that subchapter to read as follows:
947	795		SUBCHAPTER B. BASIC ENTITLEMENT
948		-	SECTION 1.~~021~~. Sections 42.101 and 42.105, Education Code,
	796	+	SECTION 1.019. Sections 42.101 and 42.105, Education Code,
949	797		are transferred to Subchapter B, Chapter 48, Education Code, as
950	798		added by this Act, redesignated as Sections 48.051 and 48.052,
951	799		Education Code, and amended to read as follows:
952	800		Sec. 48.051 [42.101]. BASIC ALLOTMENT. (a) For each
953	801		student in average daily attendance, not including the time
954	802		students spend each day in special education programs in an
955	803		instructional arrangement other than mainstream or career and
956	804		technology education programs, for which an additional allotment is
957	805		made under Subchapter C, a district is entitled to an allotment
958		-	equal to the lesser of $6,~~160~~ [$4,765] or the amount that results
	806	+	equal to the lesser of $5,880 [$4,765] or the amount that results
959	807		from the following formula:
960		-	A = $6,~~160~~ [$4,765] X TR/MCR [(DCR/MCR)]
	808	+	A = $5,880 [$4,765] X TR/MCR [(DCR/MCR)]
961	809		where:
962	810		"A" is the allotment to which a district is entitled;
963	811		"TR" ["DCR"] is the district's tier one maintenance and
964	812		operations [compressed] tax rate, as provided by Section 45.0032[,
965	813		which is the product of the state compression percentage, as
966	814		determined under Section 42.2516, multiplied by the maintenance and
967	815		operations tax rate adopted by the district for the 2005 tax year];
968	816		and
969	817		"MCR" is the state maximum compressed tax rate, which is the
970	818		product of the state compression percentage, as determined under
971	819		Section 48.255 [42.2516], multiplied by $1.00 [$1.50].
972	820		[(a-1) Notwithstanding Subsection (a), for a school
973	821		district that adopted a maintenance and operations tax rate for the
974	822		2005 tax year below the maximum rate permitted by law for that year,
975	823		the district's compressed tax rate ("DCR") includes the portion of
976	824		the district's current maintenance and operations tax rate in
977	825		excess of the first six cents above the district's compressed tax
978	826		rate, as defined by Subsection (a), until the district's compressed
979	827		tax rate computed in accordance with this subsection is equal to the
980	828		state maximum compressed tax rate ("MCR").]
981	829		(b) A greater amount for any school year may be provided by
982	830		appropriation.
983		-	(c) During any school year for which the maximum amount of
984		-	the basic allotment provided under Subsection (a) or (b) is greater
985		-	than the maximum amount provided for the preceding school year, a
986		-	school district must use at least 30 percent of the amount, if the
987		-	amount is greater than zero, that equals the product of the average
988		-	daily attendance of the district multiplied by the amount of the
989		-	difference between the district's funding under this chapter per
990		-	student in average daily attendance for the current school year and
991		-	the preceding school year to provide compensation increases to
992		-	full-time district employees other than administrators as follows:
993		-	(1) 75 percent must be used to increase the
994		-	compensation paid to classroom teachers, full-time librarians,
995		-	full-time school counselors certified under Subchapter B, Chapter
996		-	21, and full-time school nurses, prioritizing differentiated
997		-	compensation for classroom teachers with more than five years of
998		-	experience; and
999		-	(2) 25 percent may be used as determined by the
1000		-	district to increase compensation paid to full-time district
1001		-	employees [This subsection applies to a school district for which
1002		-	the compressed tax rate ("DCR") is determined in accordance with
	831	+	(c) Out of the total statewide allotment under this section,
	832	+	the commissioner shall annually set aside $6 million to fund the
	833	+	blended learning grant program under Section 29.924. After
	834	+	deducting the amount set aside under this subsection from the total
	835	+	statewide allotment under this section, the commissioner shall
	836	+	reduce each school district's allotment under this section
	837	+	proportionately and allocate funds to each district accordingly.
	838	+	[This subsection applies to a school district for which the
	839	+	compressed tax rate ("DCR") is determined in accordance with
1003	840		Subsection (a-1). Any reduction in the district's adopted
1004	841		maintenance and operations tax rate is applied to the following
1005	842		components of the district's tax rate in the order specified:
1006	843		[(1) tax effort described by Section 42.302(a-1)(2);
1007	844		[(2) tax effort described by Section 42.302(a-1)(1);
1008	845		and
1009	846		[(3) tax effort included in the determination of the
1010		-	district's compressed tax rate ("DCR") under Subsection (a-1)].
1011		-	(d) In this section, "compensation" includes benefits such
1012		-	as insurance premiums.
	847	+	district's compressed tax rate ("DCR") under Subsection (a-1).]
1013	848		Sec. 48.052 [42.105]. SPARSITY ADJUSTMENT. (a)
1014	849		Notwithstanding Section 48.051 [Sections 42.101, 42.102, and
1015	850		42.103], a school district that has fewer than 130 students in
1016	851		average daily attendance shall be provided a [an adjusted] basic
1017	852		allotment on the basis of 130 students in average daily attendance
1018	853		if it offers a kindergarten through grade 12 program and has
1019	854		preceding or current year's average daily attendance of at least 90
1020	855		students or is 30 miles or more by bus route from the nearest high
1021	856		school district. A district offering a kindergarten through grade 8
1022	857		program whose preceding or current year's average daily attendance
1023	858		was at least 50 students or which is 30 miles or more by bus route
1024	859		from the nearest high school district shall be provided a [an
1025	860		adjusted] basic allotment on the basis of 75 students in average
1026	861		daily attendance. An average daily attendance of 60 students shall
1027	862		be the basis of providing the [adjusted] basic allotment if a
1028	863		district offers a kindergarten through grade 6 program and has
1029	864		preceding or current year's average daily attendance of at least 40
1030	865		students or is 30 miles or more by bus route from the nearest high
1031	866		school district.
1032	867		(b) Subsection (c) applies only to a school district that:
1033	868		(1) does not offer each grade level from kindergarten
1034	869		through grade 12 and whose prospective or former students generally
1035	870		attend school in a state that borders this state for the grade
1036	871		levels the district does not offer;
1037	872		(2) serves both students residing in this state and
1038	873		students residing in a state that borders this state who are
1039	874		subsequently eligible for in-state tuition rates at institutions of
1040	875		higher education in either state regardless of the state in which
1041	876		the students reside; and
1042	877		(3) shares students with an out-of-state district that
1043	878		does not offer competing instructional services.
1044	879		(c) Notwithstanding Subsection (a) or Section 48.051
1045	880		[Sections 42.101, 42.102, and 42.103], a school district to which
1046	881		this subsection applies, as provided by Subsection (b), that has
1047	882		fewer than 130 students in average daily attendance shall be
1048	883		provided a [an adjusted] basic allotment on the basis of 130
1049	884		students in average daily attendance if it offers a kindergarten
1050	885		through grade four program and has preceding or current year's
1051	886		average daily attendance of at least 75 students or is 30 miles or
1052	887		more by bus route from the nearest high school district.
1053		-	SECTION 1.022. Subchapter B, Chapter 48, Education Code, as
1054		-	added by this Act, is amended by adding Section 48.053 to read as
1055		-	follows:
1056		-	Sec. 48.053. ALLOTMENT FOR CERTAIN SPECIAL-PURPOSE SCHOOL
1057		-	DISTRICTS. (a) This section applies only to a special-purpose
1058		-	school district established under Section 11.351 that is operated
1059		-	by a general academic teaching institution, as that term is defined
1060		-	by Section 61.003.
1061		-	(b) For each student who resides in this state and is
1062		-	enrolled in the district, a school district to which this section
1063		-	applies is entitled to funding under this chapter as if the district
1064		-	had no tier one local share for purposes of Section 48.256.
1065		-	(c) A school district to which this section applies may
1066		-	decline to receive funding under Subsection (b).
1067		-	(d) A school district that receives funding under
1068		-	Subsection (b) for a school year may not charge tuition or fees to
1069		-	students enrolled in the district who are residents of this state
1070		-	for that school year, other than fees authorized under Section
1071		-	11.158.
1072		-	SECTION 1.023. Chapter 48, Education Code, as added by this
	888	+	SECTION 1.020. Chapter 48, Education Code, as added by this
1073	889		Act, is amended by adding Subchapter C, and a heading is added to
1074	890		that subchapter to read as follows:
1075	891		SUBCHAPTER C. STUDENT-BASED ALLOTMENTS
1076		-	SECTION 1.~~024~~. Subchapter C, Chapter 48, Education Code, as
	892	+	SECTION 1.021. Subchapter C, Chapter 48, Education Code, as
1077	893		added by this Act, is amended by adding Section 48.101 to read as
1078	894		follows:
1079	895		Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1080	896		Small and mid-sized districts are entitled to an annual allotment
1081	897		in accordance with this section. In this section:
1082	898		(1) "AA" is the district's annual allotment per
1083	899		student in average daily attendance;
1084	900		(2) "ADA" is the number of students in average daily
1085	901		attendance for which the district is entitled to an allotment under
1086	902		Section 48.051; and
1087	903		(3) "BA" is the basic allotment determined under
1088	904		Section 48.051.
1089		-	(b) A school district that has fewer than 1,600 students in
1090		-	average daily attendance is entitled to an annual allotment for
1091		-	each student in average daily attendance based on the following
1092		-	formula:
1093		-	AA = ((1,600 - ADA) X .0004) X BA
1094		-	(c) A school district that offers a kindergarten through
1095		-	grade 12 program and has less than 5,000 students in average daily
	905	+	(b) A school district that contains at least 300 square
	906	+	miles and has not more than 1,600 students in average daily
	907	+	attendance is entitled to an annual allotment for each student in
	908	+	average daily attendance based on the following formula:
	909	+	AA = ((1,600 - ADA) X .00058) X BA.
	910	+	(c) A school district that contains less than 300 square
	911	+	miles and has not more than 1,600 students in average daily
	912	+	attendance is entitled to an annual allotment for each student in
	913	+	average daily attendance based on the following formula:
	914	+	AA = ((1,600 - ADA) X .00044) X BA.
	915	+	(d) A school district that offers a kindergarten through
	916	+	grade 12 program and has fewer than 5,000 students in average daily
1096	917		attendance is entitled to an annual allotment for each student in
1097	918		average daily attendance based on the formula, of the following
1098	919		formulas, that results in the greatest annual allotment:
1099		-	(1) the formula in Subsection (b)~~, if~~ the ~~district is~~
1100		-	eligible ~~for that formula~~; or
	920	+	(1) the formula in Subsection (b) or (c) for which the
	921	+	district is eligible; or
1101	922		(2) AA = ((5,000 - ADA) X .000025) X BA.
1102		-	(d) Instead of the allotment under Subsection (b) or (c)(1),
1103		-	a school district that has fewer than 300 students in average daily
1104		-	attendance and is the only school district located in and operating
1105		-	in a county is entitled to an annual allotment for each student in
1106		-	average daily attendance based on the following formula:
1107		-	AA = ((1,600 - ADA) X .00047) X BA
1108		-	SECTION 1.025. Section 42.151, Education Code, is
	923	+	SECTION 1.022. Section 42.151, Education Code, is
1109	924		transferred to Subchapter C, Chapter 48, Education Code, as added
1110	925		by this Act, redesignated as Section 48.102, Education Code, and
1111	926		amended to read as follows:
1112	927		Sec. 48.102 [42.151]. SPECIAL EDUCATION. (a) For each
1113	928		student in average daily attendance in a special education program
1114	929		under Subchapter A, Chapter 29, in a mainstream instructional
1115	930		arrangement, a school district is entitled to an annual allotment
1116		-	equal to the [adjusted] basic allotment, or, if applicable, the sum
1117		-	of the basic allotment and the allotment under Section 48.101 to
1118		-	which the district is entitled, multiplied by 1.15 [1.1]. For each
1119		-	full-time equivalent student in average daily attendance in a
1120		-	special education program under Subchapter A, Chapter 29, in an
	931	+	equal to the [adjusted] basic allotment multiplied by 1.15 [1.1].
	932	+	For each full-time equivalent student in average daily attendance
	933	+	in a special education program under Subchapter A, Chapter 29, in an
1121	934		instructional arrangement other than a mainstream instructional
1122	935		arrangement, a district is entitled to an annual allotment equal to
1123		-	the [adjusted] basic allotment, or, if applicable, the sum of the
1124		-	basic allotment and the allotment under Section 48.101 to which the
1125		-	district is entitled, multiplied by a weight determined according
1126		-	to instructional arrangement as follows:
	936	+	the [adjusted] basic allotment multiplied by a weight determined
	937	+	according to instructional arrangement as follows:
1127	938		Homebound5.0
1128	939		Hospital class3.0
1129	940		Speech therapy5.0
1130	941		Resource room3.0
1131	942		Self-contained, mild and moderate,
1132	943		regular campus3.0
1133	944		Self-contained, severe, regular campus3.0
1134	945		Off home campus2.7
1135	946		Nonpublic day school1.7
1136	947		Vocational adjustment class2.3
1137	948		(b) A special instructional arrangement for students with
1138	949		disabilities residing in care and treatment facilities, other than
1139	950		state schools, whose parents or guardians do not reside in the
1140	951		district providing education services shall be established by
1141	952		commissioner rule [under the rules of the State Board of
1142	953		Education]. The funding weight for this arrangement shall be 4.0
1143	954		for those students who receive their education service on a local
1144	955		school district campus. A special instructional arrangement for
1145	956		students with disabilities residing in state schools shall be
1146	957		established by commissioner rule [under the rules of the State
1147	958		Board of Education] with a funding weight of 2.8.
1148	959		(c) For funding purposes, the number of contact hours
1149	960		credited per day for each student in the off home campus
1150	961		instructional arrangement may not exceed the contact hours credited
1151	962		per day for the multidistrict class instructional arrangement in
1152	963		the 1992-1993 school year.
1153	964		(d) For funding purposes the contact hours credited per day
1154	965		for each student in the resource room; self-contained, mild and
1155	966		moderate; and self-contained, severe, instructional arrangements
1156	967		may not exceed the average of the statewide total contact hours
1157	968		credited per day for those three instructional arrangements in the
1158	969		1992-1993 school year.
1159	970		(e) The commissioner [State Board of Education] by rule
1160	971		shall prescribe the qualifications an instructional arrangement
1161	972		must meet in order to be funded as a particular instructional
1162	973		arrangement under this section. In prescribing the qualifications
1163	974		that a mainstream instructional arrangement must meet, the
1164	975		commissioner [board] shall establish requirements that students
1165	976		with disabilities and their teachers receive the direct, indirect,
1166	977		and support services that are necessary to enrich the regular
1167	978		classroom and enable student success.
1168	979		(f) In this section, "full-time equivalent student" means
1169	980		30 hours of contact a week between a special education student and
1170	981		special education program personnel.
1171	982		(g) The commissioner [State Board of Education] shall adopt
1172	983		rules and procedures governing contracts for residential placement
1173	984		of special education students. The legislature shall provide by
1174	985		appropriation for the state's share of the costs of those
1175	986		placements.
1176		-	(h) ~~At least 55 percent of the~~ funds ~~[Funds]~~ allocated under
1177		-	~~this section[, other than an~~ indirect cost allotment established
1178		-	~~under State~~ Board of Education rule,] must be used in the special
1179		-	~~education~~ program under Subchapter A, Chapter 29.
	987	+	(h) Funds allocated under this section, other than an
	988	+	indirect cost allotment established under commissioner [State
	989	+	Board of Education] rule, must be used in the special education
	990	+	program under Subchapter A, Chapter 29.
1180	991		(i) The agency shall encourage the placement of students in
1181	992		special education programs, including students in residential
1182	993		instructional arrangements, in the least restrictive environment
1183	994		appropriate for their educational needs.
1184	995		(j) [(k)] A school district that provides an extended year
1185	996		program required by federal law for special education students who
1186	997		may regress is entitled to receive funds in an amount equal to 75
1187	998		percent, or a lesser percentage determined by the commissioner, of
1188		-	the [adjusted] basic allotment, or, if applicable, the sum of the
1189		-	basic allotment and the allotment under Section 48.101 to which the
1190		-	district is entitled [or adjusted allotment, as applicable,] for
1191		-	each full-time equivalent student in average daily attendance,
1192		-	multiplied by the amount designated for the student's instructional
1193		-	arrangement under this section, for each day the program is
1194		-	provided divided by the number of days in the minimum school year.
1195		-	The total amount of state funding for extended year services under
1196		-	this section may not exceed $10 million per year. A school district
1197		-	may use funds received under this section only in providing an
1198		-	extended year program.
	999	+	the [adjusted] basic allotment [or adjusted allotment, as
	1000	+	applicable,] for each full-time equivalent student in average daily
	1001	+	attendance, multiplied by the amount designated for the student's
	1002	+	instructional arrangement under this section, for each day the
	1003	+	program is provided divided by the number of days in the minimum
	1004	+	school year. The total amount of state funding for extended year
	1005	+	services under this section may not exceed $10 million per year. A
	1006	+	school district may use funds received under this section only in
	1007	+	providing an extended year program.
1199	1008		(k) [(l)] From the total amount of funds appropriated for
1200	1009		special education under this section, the commissioner shall
1201	1010		withhold an amount specified in the General Appropriations Act, and
1202	1011		distribute that amount to school districts for programs under
1203	1012		Section 29.014. The program established under that section is
1204	1013		required only in school districts in which the program is financed
1205	1014		by funds distributed under this subsection and any other funds
1206	1015		available for the program. After deducting the amount withheld
1207	1016		under this subsection from the total amount appropriated for
1208	1017		special education, the commissioner shall reduce each district's
1209	1018		allotment proportionately and shall allocate funds to each district
1210	1019		accordingly.
1211		-	SECTION 1.026. Subchapter C, Chapter 48, Education Code, as
1212		-	added by this Act, is amended by adding Section 48.1021 to read as
1213		-	follows:
1214		-	Sec. 48.1021. SPECIAL EDUCATION ALLOTMENT ADVISORY
1215		-	COMMITTEE. (a) The commissioner shall establish an advisory
1216		-	committee to develop and make recommendations regarding methods of
1217		-	financing special education under the public school finance system.
1218		-	(b) The advisory committee consists of the following
1219		-	members appointed by the commissioner:
1220		-	(1) a parent of a student eligible to participate in a
1221		-	school district's special education program under Section 29.003;
1222		-	(2) a director of a school district's special
1223		-	education program under Subchapter A, Chapter 29;
1224		-	(3) a teacher certified in special education;
1225		-	(4) a diagnostician;
1226		-	(5) a licensed specialist in school psychology;
1227		-	(6) a provider who provides related services, as
1228		-	described by Section 29.002(2);
1229		-	(7) a superintendent of a school district;
1230		-	(8) a member of a school district's board of trustees;
1231		-	(9) a representative of a disability advocacy
1232		-	organization;
1233		-	(10) a member of the special education continuing
1234		-	advisory committee under Section 29.006;
1235		-	(11) a teacher certified in general education;
1236		-	(12) a student eligible to participate in a school
1237		-	district's special education program under Section 29.003;
1238		-	(13) a representative of a regional education service
1239		-	center; and
1240		-	(14) a school district official who handles business
1241		-	and finance matters for the district.
1242		-	(c) Not later than May 1, 2020, the advisory committee, with
1243		-	assistance from the Legislative Budget Board, shall submit to the
1244		-	lieutenant governor, the speaker of the house of representatives,
1245		-	and the standing legislative committees with primary jurisdiction
1246		-	over public education a report on methods of financing special
1247		-	education under the public school finance system. The report must
1248		-	include:
1249		-	(1) a description of the current funding methods;
1250		-	(2) an analysis of the possible implementation of a
1251		-	method of financing special education based on the services and
1252		-	supports each student receives instead of instructional
1253		-	arrangement;
1254		-	(3) data on current special education expenditures
1255		-	from a representative sample of school districts; and
1256		-	(4) recommendations for improvements to the current
1257		-	funding methods or for the implementation of new funding methods.
1258		-	(d) This section expires September 1, 2021.
1259		-	SECTION 1.027. Subchapter C, Chapter 48, Education Code, as
	1020	+	SECTION 1.023. Subchapter C, Chapter 48, Education Code, as
1260	1021		added by this Act, is amended by adding Section 48.103 to read as
1261	1022		follows:
1262	1023		Sec. 48.103. ALLOTMENT FOR STUDENT WITH DYSLEXIA OR RELATED
1263	1024		DISORDER. (a) Subject to Subsection (b), for each student that a
1264	1025		school district serves who has been identified as having dyslexia
1265	1026		or a related disorder, the district is entitled to an annual
1266		-	allotment equal to the basic allotment multiplied by 0.1 or a
	1027	+	allotment equal to the basic allotment multiplied by 0.12 or a
1267	1028		greater amount provided by appropriation.
1268		-	(b) A school district is entitled to an allotment under
	1029	+	(b) A school district is entitled to the allotment under
1269	1030		Subsection (a) only for a student who:
1270		-	(1) is receiving services for dyslexia or a related
1271		-	disorder in accordance with:
1272		-	(A) an individualized education program
1273		-	developed for the student under Section 29.005; or
1274		-	(B) a plan developed for the student under
1275		-	Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794);
1276		-	(2) is receiving instruction that:
	1031	+	(1) is receiving instruction that:
1277	1032		(A) meets applicable dyslexia program criteria
1278	1033		established by the State Board of Education; and
1279	1034		(B) is provided by a person with specific
1280	1035		training in providing that instruction; or
1281		-	(3) is permitted, on the basis of having dyslexia or a
	1036	+	(2) is permitted, on the basis of having dyslexia or a
1282	1037		related disorder, to use modifications in the classroom or
1283	1038		accommodations in the administration of assessment instruments
1284	1039		under Section 39.023.
1285	1040		(c) A school district may receive funding for a student
1286	1041		under this section and Section 48.102 if the student satisfies the
1287	1042		requirements of both sections.
1288		-	(d) A school district may use an amount not to exceed 20
1289		-	percent of the allotment provided for a qualifying student under
1290		-	this section to contract with a private provider to provide
1291		-	supplemental academic services to the student that are recommended
1292		-	under the student's program or plan described by Subsection (b). A
1293		-	student may not be excused from school to receive supplemental
1294		-	academic services provided under this subsection.
1295		-	SECTION 1.028. Section 42.152, Education Code, is
	1043	+	SECTION 1.024. Section 42.152, Education Code, is
1296	1044		transferred to Subchapter C, Chapter 48, Education Code, as added
1297	1045		by this Act, redesignated as Section 48.104, Education Code, and
1298	1046		amended to read as follows:
1299	1047		Sec. 48.104 [42.152]. COMPENSATORY EDUCATION ALLOTMENT.
1300	1048		(a) For each student who [is educationally disadvantaged or who is
1301	1049		a student who] does not have a disability and resides in a
1302	1050		residential placement facility in a district in which the student's
1303	1051		parent or legal guardian does not reside, a district is entitled to
1304	1052		an annual allotment equal to the [adjusted] basic allotment
1305	1053		multiplied by 0.2 or, if the student is educationally
1306	1054		disadvantaged, 0.275. For[, and by 2.41 for] each full-time
1307	1055		equivalent student who is in a remedial and support program under
1308	1056		Section 29.081 because the student is pregnant, a district is
1309	1057		entitled to an annual allotment equal to the basic allotment
1310	1058		multiplied by 2.41.
1311	1059		(b) For each student who is educationally disadvantaged and
1312	1060		resides in an economically disadvantaged census block group as
1313	1061		determined by the commissioner under Subsection (c), a district is
1314	1062		entitled to an annual allotment equal to the basic allotment
1315	1063		multiplied by the weight assigned to the student's census block
1316	1064		group under Subsection (d).
1317	1065		(c) For purposes of the allotment under Subsection (b), the
1318	1066		commissioner shall establish an index for economically
1319	1067		disadvantaged census block groups in the state that provides
1320	1068		criteria for determining which census block groups are economically
1321	1069		disadvantaged and categorizes economically disadvantaged census
1322	1070		block groups in five tiers according to relative severity of
1323	1071		economic disadvantage. In determining the severity of economic
1324	1072		disadvantage in a census block group, the commissioner shall
1325	1073		consider:
1326	1074		(1) the median household income;
1327	1075		(2) the average educational attainment of the
1328	1076		population;
1329	1077		(3) the percentage of single-parent households;
1330	1078		(4) the rate of homeownership; and
1331	1079		(5) other economic criteria the commissioner
1332	1080		determines likely to disadvantage a student's preparedness and
1333	1081		ability to learn.
1334	1082		(d) The weights assigned to the five tiers of the index
1335	1083		established under Subsection (c) are, from least to most severe
1336	1084		economic disadvantage, 0.225, 0.2375, 0.25, 0.2625, and 0.275.
1337	1085		(e) If insufficient data is available for any school year to
1338	1086		evaluate the level of economic disadvantage in a census block
1339	1087		group, a school district is entitled to an annual allotment equal to
1340	1088		the basic allotment multiplied by 0.225 for each student who is
1341	1089		educationally disadvantaged and resides in that census block group
1342	1090		[For purposes of this section, the number of educationally
1343	1091		disadvantaged students is determined:
1344	1092		[(1) by averaging the best six months' numbers of
1345	1093		students eligible for enrollment in the national school lunch
1346	1094		program of free or reduced-price lunches for the preceding school
1347	1095		year; or
1348	1096		[(2) in the manner provided by commissioner rule].
1349	1097		(f) [(b-1)] A student receiving a full-time virtual
1350	1098		education through the state virtual school network may be included
1351	1099		in determining the number of [educationally disadvantaged]
1352	1100		students who are educationally disadvantaged and reside in an
1353	1101		economically disadvantaged census block group under Subsection (b)
1354	1102		or (e), as applicable, if the school district submits to the
1355	1103		commissioner a plan detailing the enhanced services that will be
1356	1104		provided to the student and the commissioner approves the plan.
1357	1105		(g) Not later than March 1 of each year, the commissioner
1358	1106		shall:
1359	1107		(1) review and, if necessary, update the index
1360	1108		established under Subsection (c) to be used for the following
1361	1109		school year, based on the most recent estimates published by the
1362	1110		United States Census Bureau; and
1363	1111		(2) notify each school district of any changes to the
1364	1112		index.
1365	1113		(h) The state demographer, the Department of Agriculture,
1366	1114		and any other state agency with relevant information shall assist
1367	1115		the commissioner in performing the commissioner's duties under this
1368	1116		section.
1369	1117		(i) On a schedule determined by the commissioner, each
1370	1118		school district shall report to the agency the census block group in
1371	1119		which each student enrolled in the district who is educationally
1372		-	disadvantaged resides. The agency shall provide to school
1373		-	~~districts~~ a resource for use in determining the census block group
1374		-	~~in which a~~ student resides.
	1120	+	disadvantaged resides. The agency shall provide to school districts
	1121	+	a resource for use in determining the census block group in which a
	1122	+	student resides.
1375	1123		(j) The commissioner shall adopt rules for the method of
1376	1124		determining the number of students who qualify for an allotment
1377	1125		under this section at a campus that participates in the Community
1378	1126		Eligibility Provision administered by the United States Department
1379	1127		of Agriculture, as provided by the Healthy, Hunger-Free Kids Act of
1380	1128		2010 (Pub. L. No. 111-296).
1381		-	(j-1) In addition to other purposes for which funds
1382		-	allocated under this section may be used, those funds may also be
1383		-	used to:
1384		-	(1) provide child-care services or assistance with
1385		-	child-care expenses for students at risk of dropping out of school,
1386		-	as described by Section 29.081(d)(5); or
1387		-	(2) pay the costs associated with services provided
1388		-	through a life skills program in accordance with Sections
1389		-	29.085(b)(1) and (3)-(7).
1390		-	(k) At least 55 percent of the funds [(c) Funds] allocated
1391		-	under this section must [shall] be used to:
1392		-	(1) fund supplemental programs and services designed
1393		-	to eliminate any disparity in performance on assessment instruments
1394		-	administered under Subchapter B, Chapter 39, or disparity in the
1395		-	rates of high school completion between:
1396		-	(A) students who are educationally disadvantaged
1397		-	and students who are not educationally disadvantaged; and
1398		-	(B) students at risk of dropping out of school,
1399		-	as defined by Section 29.081, and all other students; or
1400		-	(2) [. Specifically, the funds, other than an indirect
1401		-	cost allotment established under State Board of Education rule,
1402		-	which may not exceed 45 percent, may be used to meet the costs of
1403		-	providing a compensatory, intensive, or accelerated instruction
1404		-	program under Section 29.081 or a disciplinary alternative
1405		-	education program established under Section 37.008, to pay the
1406		-	costs associated with placing students in a juvenile justice
1407		-	alternative education program established under Section 37.011, or
1408		-	to] support a program eligible under Title I of the Elementary and
1409		-	Secondary Education Act of 1965, as provided by Pub. L. No. 103-382
1410		-	and its subsequent amendments, and by federal regulations
1411		-	implementing that Act[, at a campus at which at least 40 percent of
1412		-	the students are educationally disadvantaged].
1413		-	(l) The commissioner shall adopt rules regarding the use of
1414		-	funds described by Subsection (k). The rules:
1415		-	(1) must:
1416		-	(A) permit a school district to use those funds
1417		-	for programs and services that reflect the needs of students at each
1418		-	campus in the district; and
1419		-	(B) provide for streamlined reporting on the use
1420		-	of those funds; and
1421		-	(2) may not prohibit the use of those funds for any
1422		-	purpose for which the use of those funds was authorized under former
1423		-	Section 42.152 as that section existed on September 1, 2018.
1424		-	(m) The State Board of Education shall adopt rules requiring
1425		-	a report on the use of funds under Subsection (k) as part of the
1426		-	annual audit under Section 44.008 and shall develop minimum
1427		-	requirements for that report.
1428		-	(n) The commissioner annually shall review each report
1429		-	required under Subsection (m) for the preceding school year and:
1430		-	(1) identify each school district that was not in
1431		-	compliance with Subsection (k) during that school year; and
1432		-	(2) provide each district identified under
1433		-	Subdivision (1) a reasonable opportunity to comply with Subsection
1434		-	(k).
1435		-	(o) [In meeting the costs of providing a compensatory,
1436		-	intensive, or accelerated instruction program under Section
1437		-	29.081, a district's compensatory education allotment shall be used
1438		-	for costs supplementary to the regular education program, such as
1439		-	costs for program and student evaluation, instructional materials
1440		-	and equipment and other supplies required for quality instruction,
	1129	+	(k) In addition to other purposes for which funds allocated
	1130	+	under this section may be used, those funds may also [(c) Funds
	1131	+	allocated under this section shall] be used to [fund supplemental
	1132	+	programs and services designed to eliminate any disparity in
	1133	+	performance on assessment instruments administered under
	1134	+	Subchapter B, Chapter 39, or disparity in the rates of high school
	1135	+	completion between students at risk of dropping out of school, as
	1136	+	defined by Section 29.081, and all other students. Specifically,
	1137	+	the funds, other than an indirect cost allotment established under
	1138	+	State Board of Education rule, which may not exceed 45 percent, may
	1139	+	be used to meet the costs of providing a compensatory, intensive, or
	1140	+	accelerated instruction program under Section 29.081 or a
	1141	+	disciplinary alternative education program established under
	1142	+	Section 37.008, to pay the costs associated with placing students
	1143	+	in a juvenile justice alternative education program established
	1144	+	under Section 37.011, or to] support a program eligible under Title
	1145	+	I of the Elementary and Secondary Education Act of 1965, as provided
	1146	+	by Pub. L. No. 103-382 and its subsequent amendments, and by
	1147	+	federal regulations implementing that Act[, at a campus at which at
	1148	+	least 40 percent of the students are educationally disadvantaged].
	1149	+	[In meeting the costs of providing a compensatory, intensive, or
	1150	+	accelerated instruction program under Section 29.081, a district's
	1151	+	compensatory education allotment shall be used for costs
	1152	+	supplementary to the regular education program, such as costs for
	1153	+	program and student evaluation, instructional materials and
	1154	+	equipment and other supplies required for quality instruction,
1441	1155		supplemental staff expenses, salary for teachers of at-risk
1442	1156		students, smaller class size, and individualized instruction. A
1443	1157		home-rule school district or an open-enrollment charter school must
1444	1158		use funds allocated under Subsection (a) for a purpose authorized
1445	1159		in this subsection but is not otherwise subject to Subchapter C,
1446	1160		Chapter 29. For purposes of this subsection, a program specifically
1447	1161		designed to serve students at risk of dropping out of school, as
1448	1162		defined by Section 29.081, is considered to be a program
1449	1163		supplemental to the regular education program, and a district may
1450	1164		use its compensatory education allotment for such a program.
1451	1165		[(c-1) Notwithstanding Subsection (c), funds allocated
1452	1166		under this section may be used to fund in proportion to the
1453	1167		percentage of students served by the program that meet the criteria
1454	1168		in Section 29.081(d) or (g):
1455	1169		[(1) an accelerated reading instruction program under
1456	1170		Section 28.006(g); or
1457	1171		[(2) a program for treatment of students who have
1458	1172		dyslexia or a related disorder as required by Section 38.003.
1459	1173		[(c-2) Notwithstanding Subsection (c), funds allocated
1460	1174		under this section may be used to fund a district's mentoring
1461	1175		services program under Section 29.089.
1462	1176		[(d) The agency shall evaluate the effectiveness of
1463	1177		accelerated instruction and support programs provided under
1464	1178		Section 29.081 for students at risk of dropping out of school.
1465	1179		[(q) The State Board of Education, with the assistance of
1466	1180		the comptroller, shall develop and implement by rule reporting and
1467	1181		auditing systems for district and campus expenditures of
1468	1182		compensatory education funds to ensure that compensatory education
1469	1183		funds, other than the indirect cost allotment, are spent only to
1470	1184		supplement the regular education program as required by Subsection
1471	1185		(c). The reporting requirements shall be managed electronically to
1472	1186		minimize local administrative costs. A district shall submit the
1473	1187		report required by this subsection not later than the 150th day
1474	1188		after the last day permissible for resubmission of information
1475	1189		required under Section 42.006.
1476	1190		[(q-1) The commissioner shall develop a system to identify
1477	1191		school districts that are at high risk of having used compensatory
1478	1192		education funds other than in compliance with Subsection (c) or of
1479	1193		having inadequately reported compensatory education expenditures.
1480	1194		If a review of the report submitted under Subsection (q), using the
1481	1195		risk-based system, indicates that a district is not at high risk of
1482	1196		having misused compensatory education funds or of having
1483	1197		inadequately reported compensatory education expenditures, the
1484	1198		district may not be required to perform a local audit of
1485	1199		compensatory education expenditures and is not subject to on-site
1486	1200		monitoring under this section.
1487	1201		[(q-2) If a review of the report submitted under Subsection
1488	1202		(q), using the risk-based system, indicates that a district is at
1489	1203		high risk of having misused compensatory education funds, the
1490	1204		commissioner shall notify the district of that determination. The
1491	1205		district must respond to the commissioner not later than the 30th
1492	1206		day after the date the commissioner notifies the district of the
1493	1207		commissioner's determination. If the district's response does not
1494	1208		change the commissioner's determination that the district is at
1495	1209		high risk of having misused compensatory education funds or if the
1496	1210		district does not respond in a timely manner, the commissioner
1497	1211		shall:
1498	1212		[(1) require the district to conduct a local audit of
1499	1213		compensatory education expenditures for the current or preceding
1500	1214		school year;
1501	1215		[(2) order agency staff to conduct on-site monitoring
1502	1216		of the district's compensatory education expenditures; or
1503	1217		[(3) both require a local audit and order on-site
1504	1218		monitoring.
1505	1219		[(q-3) If a review of the report submitted under Subsection
1506	1220		(q), using the risk-based system, indicates that a district is at
1507	1221		high risk of having inadequately reported compensatory education
1508	1222		expenditures, the commissioner may require agency staff to assist
1509	1223		the district in following the proper reporting methods or amending
1510	1224		a district or campus improvement plan under Subchapter F, Chapter
1511	1225		11. If the district does not take appropriate corrective action
1512	1226		before the 45th day after the date the agency staff notifies the
1513	1227		district of the action the district is expected to take, the
1514	1228		commissioner may:
1515	1229		[(1) require the district to conduct a local audit of
1516	1230		the district's compensatory education expenditures; or
1517	1231		[(2) order agency staff to conduct on-site monitoring
1518	1232		of the district's compensatory education expenditures.
1519		-	[(q-4)] The commissioner, in the year following a
1520		-	determination under Subsection (n) that a school district was not
1521		-	in compliance with Subsection (k) for the 2021-2022 school year or a
1522		-	subsequent school year [local audit of compensatory education
1523		-	expenditures], shall withhold from the [a] district's foundation
1524		-	school fund payment an amount equal to the amount of compensatory
1525		-	education funds the commissioner [agency] determines were not used
1526		-	in compliance with Subsection (k) [(c)]. The commissioner shall
	1233	+	[(q-4) The commissioner, in the year following a local audit
	1234	+	of compensatory education expenditures, shall withhold from a
	1235	+	district's foundation school fund payment an amount equal to the
	1236	+	amount of compensatory education funds the agency determines were
	1237	+	not used in compliance with Subsection (c). The commissioner shall
1527	1238		release to a district funds withheld under this subsection when the
1528	1239		district provides to the commissioner a detailed plan to spend
1529		-	those funds in compliance with Subsection (k) [(c)]. In determining
1530		-	whether a school district is subject to the withholding of funding
1531		-	required under this subsection, the commissioner may consider the
1532		-	district's average use of funds for the three preceding school
1533		-	years.
	1240	+	those funds in compliance with Subsection (c).
1534	1241		[(r) The commissioner shall grant a one-year exemption from
1535	1242		the requirements of Subsections (q)-(q-4) to a school district in
1536	1243		which the group of students who have failed to perform
1537	1244		satisfactorily in the preceding school year on an assessment
1538	1245		instrument required under Section 39.023(a), (c), or (l)
1539	1246		subsequently performs on those assessment instruments at a level
1540	1247		that meets or exceeds a level prescribed by commissioner rule. Each
1541	1248		year the commissioner, based on the most recent information
1542	1249		available, shall determine if a school district is entitled to an
1543	1250		exemption for the following school year and notify the district of
1544	1251		that determination.]
1545		-	SECTION 1.029. Subchapter C, Chapter 48, Education Code, as
1546		-	added by this Act, is amended by adding Section 48.1041 to read as
1547		-	follows:
1548		-	Sec. 48.1041. COMPENSATORY EDUCATION ALLOTMENT ADVISORY
1549		-	COMMITTEE. (a) The commissioner shall establish an advisory
1550		-	committee to advise the agency in adopting rules for the
1551		-	compensatory education allotment under Section 48.104, including:
1552		-	(1) rules establishing the economic criteria
1553		-	described by Section 48.104(c)(5);
1554		-	(2) rules detailing the method to count students who
1555		-	qualify for the allotment in:
1556		-	(A) a dropout recovery school or program; or
1557		-	(B) a residential treatment facility;
1558		-	(3) methods for properly counting students who are
1559		-	homeless within the meaning of "homeless children and youths" under
1560		-	42 U.S.C. Section 11434a; and
1561		-	(4) rules to determine the appropriate weight by which
1562		-	to adjust the basic allotment in determining the compensatory
1563		-	allotment for students described by Subdivision (3).
1564		-	(b) The advisory committee consists of members appointed by
1565		-	the commissioner, including:
1566		-	(1) school district superintendents and chief
1567		-	financial officers;
1568		-	(2) classroom teachers;
1569		-	(3) representatives of school districts located in an
1570		-	area other than an urban area, as designated by the United States
1571		-	Census Bureau;
1572		-	(4) at least one representative of an open-enrollment
1573		-	charter school;
1574		-	(5) demographers;
1575		-	(6) experts on census data;
1576		-	(7) public school finance experts; and
1577		-	(8) appropriate employees of the agency.
1578		-	(c) Members of the advisory committee serve at the pleasure
1579		-	of the commissioner.
1580		-	(d) A member of the advisory committee is not entitled to
1581		-	receive compensation for service on the committee or reimbursement
1582		-	for expenses incurred in performing official duties as a member of
1583		-	the committee.
1584		-	(e) Chapter 2110, Government Code, does not apply to the
1585		-	advisory committee.
1586		-	(f) Not less than once every two years, the advisory
1587		-	committee shall review census and student data and provide
1588		-	recommendations to the agency regarding any suggested changes to
1589		-	the rules adopted for the compensatory education allotment under
1590		-	Section 48.104.
1591		-	SECTION 1.030. Sections 42.153, 42.154, and 42.157,
	1252	+	SECTION 1.025. Sections 42.153, 42.154, and 42.157,
1592	1253		Education Code, are transferred to Subchapter C, Chapter 48,
1593	1254		Education Code, as added by this Act, redesignated as Sections
1594	1255		48.105, 48.106, and 48.107, Education Code, and amended to read as
1595	1256		follows:
1596		-	Sec. 48.105 [42.153]. BILINGUAL EDUCATION ALLOTMENT. ~~(a)~~
1597		-	For each student in average daily attendance in a bilingual
	1257	+	Sec. 48.105 [42.153]. BILINGUAL EDUCATION ALLOTMENT.
	1258	+	[(a)] For each student in average daily attendance in a bilingual
1598	1259		education or special language program under Subchapter B, Chapter
1599	1260		29, a district is entitled to an annual allotment equal to the
1600	1261		[adjusted] basic allotment multiplied by:
1601	1262		(1) for a student of limited English proficiency, as
1602	1263		defined by Section 29.052:
1603	1264		(A) 0.1; or
1604	1265		(B) 0.15 if the student is in a bilingual
1605	1266		education program using a dual language immersion/one-way or
1606	1267		two-way program model; and
1607	1268		(2) for a student not described by Subdivision (1),
1608	1269		0.05 if the student is in a bilingual education program using a dual
1609	1270		language immersion/two-way program model.
1610		-	(b) ~~At least 55 percent of the~~ funds ~~[Funds]~~ allocated under
1611		-	~~this section[, other than an~~ indirect cost allotment established
1612		-	~~under State Board of Education~~ rule,] must be used in providing
1613		-	~~bilingual education or special~~ language programs under Subchapter
1614		-	~~B, Chapter 29[, and must be~~ accounted for under existing agency
1615		-	~~reporting and auditing~~ procedures].
1616		-	[(c)] A district's bilingual education or special language
	1271	+	[(b) Funds allocated under this section, other than an
	1272	+	indirect cost allotment established under State Board of Education
	1273	+	rule, must be used in providing bilingual education or special
	1274	+	language programs under Subchapter B, Chapter 29, and must be
	1275	+	accounted for under existing agency reporting and auditing
	1276	+	procedures.
	1277	+	[(c) A district's bilingual education or special language
1617	1278		allocation may be used only for program and student evaluation,
1618	1279		instructional materials and equipment, staff development,
1619		-	supplemental staff expenses, salary supplements for teachers,
1620		-	incremental costs associated with providing smaller class sizes,
1621		-	and other supplies required for quality instruction [and smaller
1622		-	class size].
1623		-	(c) The State Board of Education shall adopt rules requiring
1624		-	a report on the use of funds under Subsection (b) as part of the
1625		-	annual audit under Section 44.008 and shall develop minimum
1626		-	requirements for that report.
1627		-	(d) The commissioner annually shall review each report
1628		-	required under Subsection (c) for the preceding school year and:
1629		-	(1) identify each school district that was not in
1630		-	compliance with Subsection (b) during that school year; and
1631		-	(2) provide each district identified under
1632		-	Subdivision (1) a reasonable opportunity to comply with Subsection
1633		-	(b).
1634		-	(e) The commissioner, in the year following a determination
1635		-	under Subsection (d) that a school district was not in compliance
1636		-	with Subsection (b) for the 2021-2022 school year or a subsequent
1637		-	school year, shall withhold from the district's foundation school
1638		-	fund payment an amount equal to the amount of bilingual education or
1639		-	special language funds the commissioner determines were not used in
1640		-	compliance with Subsection (b). The commissioner shall release to a
1641		-	district funds withheld under this subsection when the district
1642		-	provides to the commissioner a detailed plan to spend those funds in
1643		-	compliance with Subsection (b). In determining whether a school
1644		-	district is subject to the withholding of funding required under
1645		-	this subsection, the commissioner may consider the district's
1646		-	average use of funds for the three preceding school years.
	1280	+	supplemental staff expenses, salary supplements for teachers, and
	1281	+	other supplies required for quality instruction and smaller class
	1282	+	size.]
1647	1283		Sec. 48.106 [42.154]. CAREER AND TECHNOLOGY EDUCATION
1648	1284		ALLOTMENT. (a) For each full-time equivalent student in average
1649	1285		daily attendance in an approved career and technology education
1650		-	program in grades 7 [nine] through 12 [or in career and technology
1651		-	education programs for students with disabilities in grades ~~seven~~
1652		-	through 12], a district is entitled to:
	1286	+	program in grades 9 [nine] through 12 or in career and technology
	1287	+	education programs for students with disabilities in grades 7
	1288	+	[seven] through 12, a district is entitled to:
1653	1289		(1) an annual allotment equal to the [adjusted] basic
1654	1290		allotment multiplied by a weight of 1.35; and
1655		-	(2) $50 for each of the following in which [, if] the
1656		-	student is enrolled:
1657		-	(A) [in] two or more advanced career and
1658		-	technology education classes for a total of three or more credits;
1659		-	(B) a campus designated as a P-TECH school under
1660		-	Section 29.556; or
1661		-	(C) a campus that is a member of the New Tech
1662		-	Network and that focuses on project-based learning and work-based
1663		-	education.
	1291	+	(2) $50, if the student is enrolled in two or more
	1292	+	advanced career and technology education classes for a total of
	1293	+	three or more credits.
1664	1294		(b) In this section:
1665	1295		(1) "Career and technology education class" and
1666	1296		"career and technology education program" include [a] technology
1667	1297		applications courses [course on cybersecurity adopted or selected
1668	1298		by the State Board of Education under Section 28.025(c-10)].
1669	1299		(2) "Full-time equivalent student" means 30 hours of
1670	1300		contact a week between a student and career and technology
1671	1301		education program personnel.
1672		-	(c) At least 55 percent of the funds [Funds] allocated under
1673		-	this section[, other than an indirect cost allotment established
1674		-	under State Board of Education rule,] must be used in providing
1675		-	career and technology education programs in grades 7 [nine] through
1676		-	12 [or career and technology education programs for students with
1677		-	disabilities in grades seven through 12 under Sections 29.182,
1678		-	29.183, and 29.184].
	1302	+	(c) Out of the total statewide allotment for career and
	1303	+	technology education under this section, the commissioner shall
	1304	+	annually set aside $8 million to fund the grant program for P-TECH
	1305	+	schools under Section 29.556, in addition to other funds
	1306	+	appropriated for that purpose. After deducting the amount set aside
	1307	+	under this subsection from the total statewide allotment for career
	1308	+	and technology education under this section, the commissioner shall
	1309	+	proportionately reduce each school district's allotment under this
	1310	+	section and allocate funds to each district accordingly. [Funds
	1311	+	allocated under this section, other than an indirect cost allotment
	1312	+	established under State Board of Education rule, must be used in
	1313	+	providing career and technology education programs in grades nine
	1314	+	through 12 or career and technology education programs for students
	1315	+	with disabilities in grades seven through 12 under Sections 29.182,
	1316	+	29.183, and 29.184.
1679	1317		[(d) The commissioner shall conduct a cost-benefit
1680	1318		comparison between career and technology education programs and
1681	1319		mathematics and science programs.
1682	1320		[(e) Out of the total statewide allotment for career and
1683	1321		technology education under this section, the commissioner shall set
1684	1322		aside an amount specified in the General Appropriations Act, which
1685	1323		may not exceed an amount equal to one percent of the total amount
1686	1324		appropriated, to support regional career and technology education
1687	1325		planning. After deducting the amount set aside under this
1688	1326		subsection from the total amount appropriated for career and
1689	1327		technology education under this section, the commissioner shall
1690	1328		reduce each district's tier one allotments in the same manner
1691	1329		described for a reduction in allotments under Section 42.253.]
1692	1330		Sec. 48.107 [42.157]. PUBLIC EDUCATION GRANT ALLOTMENT.
1693	1331		(a) Except as provided by Subsection (b), for each student in
1694	1332		average daily attendance who is using a public education grant
1695	1333		under Subchapter G, Chapter 29, to attend school in a district other
1696	1334		than the district in which the student resides, the district in
1697	1335		which the student attends school is entitled to an annual allotment
1698	1336		equal to the [adjusted] basic allotment multiplied by a weight of
1699	1337		0.1.
1700	1338		(b) The total number of allotments under this section to
1701	1339		which a district is entitled may not exceed the number by which the
1702	1340		number of students using public education grants to attend school
1703	1341		in the district exceeds the number of students who reside in the
1704	1342		district and use public education grants to attend school in
1705	1343		another district.
1706		-	SECTION 1.~~031~~. Subchapter C, Chapter 48, Education Code, as
1707		-	added by this Act, is amended by adding ~~Sections~~ 48.108~~, 48.110,~~
1708		-	~~48.1101, 48.111, 48.112, and 48.114 to read as~~ follows:
1709		-	Sec. 48.108. EARLY ~~EDUCATION~~ ALLOTMENT. (a) For each
1710		-	~~student~~ in average daily attendance in kindergarten through third
1711		-	~~grade, a~~ school district is entitled to an annual allotment equal to
1712		-	~~the~~ basic allotment multiplied by 0.1 if the student is:
	1344	+	SECTION 1.026. Subchapter C, Chapter 48, Education Code, as
	1345	+	added by this Act, is amended by adding Section 48.108 to read as
	1346	+	follows:
	1347	+	Sec. 48.108. EARLY READING ALLOTMENT. (a) For each student
	1348	+	in average daily attendance in kindergarten through third grade, a
	1349	+	school district is entitled to an annual allotment equal to the
	1350	+	basic allotment multiplied by 0.1 if the student is:
1713	1351		(1) educationally disadvantaged; or
1714	1352		(2) a student of limited English proficiency, as
1715	1353		defined by Section 29.052, and is in a bilingual education or
1716	1354		special language program under Subchapter B, Chapter 29.
1717	1355		(b) Funds allocated under this section must be used to fund
1718	1356		programs and services designed to improve student performance in
1719		-	reading and mathematics in prekindergarten through third grade,
1720		-	including programs and services designed to assist the district in
1721		-	achieving the goals set in the district's early childhood literacy
1722		-	and mathematics proficiency plans adopted under Section 11.185.
	1357	+	reading in prekindergarten through third grade, such as programs
	1358	+	and services designed to assist the district in achieving the goals
	1359	+	set in the district's early childhood literacy proficiency plan
	1360	+	adopted under Section 11.185 or services designed to improve
	1361	+	support for children three years of age or younger who are not
	1362	+	enrolled in prekindergarten.
1723	1363		(c) A school district is entitled to an allotment under each
1724	1364		subdivision of Subsection (a) for which a student qualifies.
1725	1365		(d) A school district may receive funding for a student
1726	1366		under this section and under Sections 48.104 and 48.105, as
1727	1367		applicable, if the student satisfies the requirements of each
1728	1368		applicable section.
	1369	+	SECTION 1.027. Subchapter C, Chapter 48, Education Code, as
	1370	+	added by this Act, is amended by adding Sections 48.109, 48.110,
	1371	+	48.111, 48.112, and 48.113 to read as follows:
	1372	+	Sec. 48.109. THIRD GRADE READING OUTCOMES BONUS. (a) For
	1373	+	purposes of the outcomes bonus under this section, the commissioner
	1374	+	shall determine the threshold percentage for each of the following
	1375	+	cohorts that is equal to the 25th percentile of statewide meets
	1376	+	grade level performance by that cohort of public school students on
	1377	+	the applicable assessment instrument as determined under
	1378	+	Subsection (f):
	1379	+	(1) students who are educationally disadvantaged;
	1380	+	(2) students who are not educationally disadvantaged;
	1381	+	and
	1382	+	(3) students who are enrolled in a special education
	1383	+	program under Subchapter A, Chapter 29, regardless of whether the
	1384	+	students are educationally disadvantaged.
	1385	+	(b) Each year, the commissioner shall determine for each
	1386	+	school district the minimum number of students in each cohort
	1387	+	described by Subsection (a) enrolled in the district who would have
	1388	+	to perform at or above the meets grade level performance standard
	1389	+	set by the commissioner on the third grade reading assessment
	1390	+	instrument administered under Section 39.023 or an alternative
	1391	+	third grade reading assessment instrument adopted under Subsection
	1392	+	(e) in order for the district to achieve a meets grade level
	1393	+	performance percentage for that cohort on the applicable assessment
	1394	+	instrument equal to the threshold percentage established for that
	1395	+	cohort under Subsection (a).
	1396	+	(c) For each student in a cohort described by Subsection (a)
	1397	+	who performed at or above the meets grade level performance
	1398	+	standard set by the commissioner on an assessment instrument
	1399	+	described by that subsection during the preceding school year in
	1400	+	excess of the minimum number of students determined for the
	1401	+	applicable district cohort under Subsection (b), a school district
	1402	+	is entitled to an annual outcomes bonus of:
	1403	+	(1) if the student is educationally disadvantaged,
	1404	+	$4,000;
	1405	+	(2) if the student is not educationally disadvantaged,
	1406	+	$1,000; and
	1407	+	(3) if the student is enrolled in a special education
	1408	+	program under Subchapter A, Chapter 29, $1,000.
	1409	+	(d) A school district is entitled to an outcomes bonus under
	1410	+	each provision of Subsection (c) for which a student qualifies.
	1411	+	(e) For purposes of this section, the commissioner shall
	1412	+	adopt at least one alternative third grade reading assessment
	1413	+	instrument and set a meets grade level performance standard on the
	1414	+	assessment instrument equivalent to the meets grade level
	1415	+	performance standard set under Section 39.0241 for the third grade
	1416	+	reading assessment instrument administered under Section 39.023.
	1417	+	The assessment instrument adopted under this subsection must have
	1418	+	been administered to a sufficient number of public school students,
	1419	+	as determined by the commissioner, to enable the commissioner to
	1420	+	establish a percentile of statewide meets grade level performance
	1421	+	for the assessment instrument under Subsection (f).
	1422	+	(f) For each year, the commissioner shall establish the 25th
	1423	+	percentile of statewide meets grade level performance for each
	1424	+	assessment instrument described by Subsection (b). The 25th
	1425	+	percentile of statewide meets grade level performance for the third
	1426	+	grade reading assessment instrument administered under Section
	1427	+	39.023 must be based on student performance on the assessment
	1428	+	instrument in the 2017-2018 school year. The 25th percentile of
	1429	+	statewide meets grade level performance for an alternative third
	1430	+	grade reading assessment instrument adopted under Subsection (e)
	1431	+	must be equivalent to the 25th percentile of statewide meets grade
	1432	+	level performance established for the third grade reading
	1433	+	assessment instrument administered under Section 39.023. If for
	1434	+	any year the commissioner determines that the assessment instrument
	1435	+	has materially changed, the commissioner shall adjust the
	1436	+	percentile of statewide meets grade level performance in a manner
	1437	+	that maintains the threshold percentages determined under
	1438	+	Subsection (a) for the assessment instrument before the change.
	1439	+	(g) In determining the amount of funding to which a school
	1440	+	district is entitled under this section, the commissioner shall
	1441	+	consider student performance on the assessment instrument
	1442	+	described by Subsection (b) that would result in the greater amount
	1443	+	of funding.
	1444	+	(h) A school district may not receive funding based on
	1445	+	student performance on an alternative third grade reading
	1446	+	assessment instrument adopted under Subsection (e) unless the
	1447	+	district:
	1448	+	(1) administers the assessment instrument:
	1449	+	(A) to all students to whom the third grade
	1450	+	reading assessment instrument under Section 39.023 is required to
	1451	+	be administered, other than students who receive:
	1452	+	(i) an exemption from the administration of
	1453	+	the third grade reading assessment instrument; or
	1454	+	(ii) accommodations for the administration
	1455	+	of the third grade reading assessment instrument that are not
	1456	+	provided for the administration of the alternative third grade
	1457	+	reading assessment instrument; and
	1458	+	(B) using test security and administration
	1459	+	protocols required by commissioner rule; and
	1460	+	(2) provides to the agency student performance data
	1461	+	for the assessment instrument in accordance with commissioner rule.
	1462	+	(i) This section does not:
	1463	+	(1) require a school district to administer an
	1464	+	alternative third grade reading assessment instrument adopted
	1465	+	under Subsection (e); or
	1466	+	(2) alter a school district's obligations regarding
	1467	+	the administration of the third grade reading assessment instrument
	1468	+	under Section 39.023.
	1469	+	(j) At least once every five years, the agency shall:
	1470	+	(1) conduct a longitudinal impact study on each
	1471	+	alternative third grade reading assessment instrument adopted
	1472	+	under Subsection (e); and
	1473	+	(2) submit to the legislature a report on the results
	1474	+	of the study conducted under Subdivision (1).
1729	1475		Sec. 48.110. COLLEGE, CAREER, OR MILITARY READINESS
1730		-	OUTCOMES BONUS. (a) The purpose of this section is to further the
1731		-	goal set under the state's master plan for higher education
1732		-	developed under Section 61.051 for at least 60 percent of all adults
1733		-	aged 25 to 34 in this state to achieve a postsecondary degree or
1734		-	workforce credential by 2030.
1735		-	(b) For purposes of the outcomes bonus under this section,
1736		-	the commissioner shall determine the threshold percentage as
1737		-	provided by Subsection (g) for college, career, or military
1738		-	readiness as described by Subsection (f) for each of the following
1739		-	cohorts:
	1476	+	OUTCOMES BONUS. (a) For purposes of the outcomes bonus under this
	1477	+	section, the commissioner shall determine the threshold percentage
	1478	+	for each of the following cohorts that is equal to the 25th
	1479	+	percentile of statewide college, career, or military readiness as
	1480	+	described by Subsection (e) for that cohort of annual public school
	1481	+	graduates for the 2016-2017 school year:
1740	1482		(1) annual graduates who are educationally
1741	1483		disadvantaged;
1742	1484		(2) annual graduates who are not educationally
1743	1485		disadvantaged; and
1744	1486		(3) annual graduates who are enrolled in a special
1745	1487		education program under Subchapter A, Chapter 29, regardless of
1746	1488		whether the annual graduates are educationally disadvantaged.
1747		-	(c) Each year, the commissioner shall determine for each
	1489	+	(b) Each year, the commissioner shall determine for each
1748	1490		school district the minimum number of annual graduates in each
1749		-	cohort described by Subsection (b) who would have to demonstrate
	1491	+	cohort described by Subsection (a) who would have to demonstrate
1750	1492		college, career, or military readiness as described by Subsection
1751		-	(f) in order for the district to achieve a percentage of college,
	1493	+	(e) in order for the district to achieve a percentage of college,
1752	1494		career, or military readiness for that cohort equal to the
1753	1495		threshold percentage established for that cohort under Subsection
1754		-	(b).
1755		-	(d) For each annual graduate in a cohort described by
1756		-	Subsection (b) who demonstrates college, career, or military
1757		-	readiness as described by Subsection (f) in excess of the minimum
	1496	+	(a).
	1497	+	(c) For each annual graduate in a cohort described by
	1498	+	Subsection (a) who demonstrates college, career, or military
	1499	+	readiness as described by Subsection (e) in excess of the minimum
1758	1500		number of students determined for the applicable district cohort
1759		-	under Subsection (c), a school district is entitled to an annual
	1501	+	under Subsection (b), a school district is entitled to an annual
1760	1502		outcomes bonus of:
1761	1503		(1) if the annual graduate is educationally
1762	1504		disadvantaged, $5,000;
1763	1505		(2) if the annual graduate is not educationally
1764	1506		disadvantaged, $3,000; and
1765	1507		(3) if the annual graduate is enrolled in a special
1766	1508		education program under Subchapter A, Chapter 29, $2,000,
1767	1509		regardless of whether the annual graduate is educationally
1768	1510		disadvantaged.
1769		-	(e) A school district is entitled to an outcomes bonus under
1770		-	each subdivision of Subsection (d) for which an annual graduate
	1511	+	(d) A school district is entitled to an outcomes bonus under
	1512	+	each subdivision of Subsection (c) for which an annual graduate
1771	1513		qualifies.
1772		-	(f) For purposes of this section, an annual graduate
	1514	+	(e) For purposes of this section, an annual graduate
1773	1515		demonstrates:
1774	1516		(1) college readiness if the annual graduate:
1775		-	(A) achieves ~~college readiness standards used~~
1776		-	~~for accountability purposes under Chapter 39~~ on the ACT, the SAT, or
1777		-	~~an assessment instrument designated by~~ the Texas Higher Education
1778		-	~~Coordinating Board under Section 51.334;~~ and
	1517	+	(A) achieves a minimum score set by commissioner
	1518	+	rule on the ACT, the SAT, or an assessment instrument designated by
	1519	+	the Texas Higher Education Coordinating Board under Section 51.334;
	1520	+	and
1779	1521		(B) during a time period established by
1780	1522		commissioner rule, enrolls at a postsecondary educational
1781	1523		institution;
1782	1524		(2) career readiness if the annual graduate:
1783		-	(A) achieves ~~college readiness standards used~~
1784		-	~~for accountability purposes under Chapter 39~~ on the ACT, the SAT, or
1785		-	~~an assessment instrument designated by~~ the Texas Higher Education
1786		-	~~Coordinating Board under Section 51.334;~~ and
	1525	+	(A) achieves a minimum score set by commissioner
	1526	+	rule on the ACT, the SAT, or an assessment instrument designated by
	1527	+	the Texas Higher Education Coordinating Board under Section 51.334;
	1528	+	and
1787	1529		(B) during a time period established by
1788	1530		commissioner rule, earns an industry-accepted certificate; and
1789	1531		(3) military readiness if the annual graduate:
1790		-	(A) achieves a passing score set by the
1791		-	applicable military branch on the Armed Services Vocational
1792		-	Aptitude Battery; and
	1532	+	(A) achieves a minimum score set by commissioner
	1533	+	rule on the Armed Services Vocational Aptitude Battery; and
1793	1534		(B) during a time period established by
1794	1535		commissioner rule, enlists in the armed forces of the United
1795	1536		States.
1796		-	(g) The commissioner shall establish the threshold
1797		-	percentages under Subsection (b) using the 25th percentile of
1798		-	statewide college, career, or military readiness as described by
1799		-	Subsection (f) for the applicable cohort of annual graduates during
1800		-	the 2016-2017 school year.
1801		-	(h) On application by a school district, the commissioner
1802		-	may allow annual graduates from the district to satisfy the
1803		-	requirement for demonstrating career readiness under Subsection
1804		-	(f)(2)(B) by successfully completing a coherent sequence of courses
1805		-	required to obtain an industry-accepted certificate. The district
1806		-	must demonstrate in the application that the district is unable to
1807		-	provide sufficient courses or programs to enable students enrolled
1808		-	at the district to earn an industry-accepted certificate within the
1809		-	time period established by the commissioner under Subsection
1810		-	(f)(2)(B). The commissioner by rule shall provide the criteria
1811		-	required for an application under this subsection.
1812		-	(i) At least 55 percent of the funds allocated under this
1813		-	section must be used in grades 8 through 12 to improve college,
1814		-	career, and military readiness outcomes as described by Subsection
1815		-	(f).
1816		-	Sec. 48.1101. STUDY ON ALTERNATIVE CAREER READINESS
1817		-	MEASURES FOR SMALL AND RURAL DISTRICTS. (a) The agency shall
1818		-	conduct a study on alternative career readiness measures for small
1819		-	and rural school districts to determine if annual graduates
1820		-	demonstrate career readiness under Section 48.110(f)(2)(B).
1821		-	(b) Not later than January 1, 2021, the agency shall submit
1822		-	to the legislature a report on the results of the study and any
1823		-	recommendations for legislative or other action.
1824		-	(c) This section expires September 1, 2021.
1825	1537		Sec. 48.111. FAST GROWTH ALLOTMENT. A school district in
1826	1538		which the growth in student enrollment in the district over the
1827	1539		preceding three school years is in the top quartile of student
1828	1540		enrollment growth in school districts in the state for that period,
1829	1541		as determined by the commissioner, is entitled to an annual
1830		-	allotment equal to the basic allotment multiplied by 0.04 for each
	1542	+	allotment equal to the basic allotment multiplied by 0.042 for each
1831	1543		student in average daily attendance.
1832	1544		Sec. 48.112. TEACHER INCENTIVE ALLOTMENT. (a) In this
1833		-	section, "rural campus" means a school campus that is:
1834		-	(1) located in:
1835		-	(A) an area that is not designated as an
1836		-	urbanized area or an urban cluster by the United States Census
1837		-	Bureau; and
1838		-	(B) a school district with fewer than 5,000
1839		-	enrolled students; or
1840		-	(2) designated as a rural campus under rules adopted
1841		-	by the commissioner.
1842		-	(b) To ensure classroom teachers in this state have access
1843		-	to a six-figure salary, the allotment provided to a school district
1844		-	under this section offers resources to the district to increase
1845		-	teacher compensation and prioritize funding for high needs and
1846		-	rural district campuses.
1847		-	(c) For each classroom teacher with a teacher designation
1848		-	under Section 21.3521 employed by a school district, the school
1849		-	district is entitled to an allotment equal to the following
	1545	+	section, "classroom teacher" has the meaning assigned by Section
	1546	+	21.751.
	1547	+	(b) For each classroom teacher with a teacher designation
	1548	+	under Subchapter P, Chapter 21, employed by a school district, the
	1549	+	school district is entitled to an allotment equal to the following
1850	1550		applicable base amount increased by the high needs and rural factor
1851		-	as determined under Subsection (d):
	1551	+	as determined under Subsection (c):
1852	1552		(1) $12,000, or an increased amount not to exceed
1853		-	$32,000 as determined under Subsection (d), for each master
	1553	+	$32,000 as determined under Subsection (c), for each master
1854	1554		teacher;
1855	1555		(2) $6,000, or an increased amount not to exceed
1856		-	$18,000 as determined under Subsection (d), for each exemplary
	1556	+	$18,000 as determined under Subsection (c), for each exemplary
1857	1557		teacher; and
1858	1558		(3) $3,000, or an increased amount not to exceed
1859		-	$9,000 as determined under Subsection (d), for each recognized
	1559	+	$9,000 as determined under Subsection (c), for each recognized
1860	1560		teacher.
1861		-	(d) The high needs and rural factor is determined by
	1561	+	(c) The high needs and rural factor is determined by
1862	1562		multiplying the following applicable amounts by the average of the
1863	1563		point value assigned to each student at a district campus under
1864		-	Subsection (e):
	1564	+	Subsection (d):
1865	1565		(1) $5,000 for each master teacher;
1866	1566		(2) $3,000 for each exemplary teacher; and
1867	1567		(3) $1,500 for each recognized teacher.
1868		-	(e) Except as provided by Subsection (f), a point value for
	1568	+	(d) Except as provided by Subsection (e), a point value for
1869	1569		each student at a district campus shall be assigned as follows:
1870	1570		(1) 0, for a student for whom the district does not
1871	1571		receive a compensatory education allotment under Section 48.104(b)
1872	1572		or (e); or
1873	1573		(2) 0.5, 1.0, 2.0, 3.0, or 4.0, respectively, from
1874	1574		least to most severe economic disadvantage according to the census
1875	1575		block group in which the student resides, for a student for whom the
1876	1576		district receives a compensatory education allotment under Section
1877	1577		48.104(b) or (e).
1878		-	(f) If the campus at which a student is enrolled is
	1578	+	(e) If the campus at which a student is enrolled is
1879	1579		classified as a rural campus, a student is assigned the point value
1880	1580		two tiers higher than the student's point value determined under
1881		-	Subsection (e)(1) or (2).
1882		-	(g) A district is entitled to receive an increased allotment
1883		-	under this section in the amount necessary for reimbursement for
1884		-	any fees paid under Section 21.3521.
1885		-	(h) The commissioner shall annually make available to the
	1581	+	Subsection (d)(1) or (2).
	1582	+	(f) The commissioner shall annually make available to the
1886	1583		public a list of campuses with the projected allotment amounts per
1887	1584		teacher designation at each campus.
1888		-	(i) A district shall annually certify that:
1889		-	(1) funds received under this section were used as
1890		-	follows:
1891		-	(A) at least 90 percent of each allotment
1892		-	received under Subsection (c) was used for the compensation of
1893		-	teachers employed at the campus at which the teacher for whom the
1894		-	district received the allotment is employed; and
1895		-	(B) any other funds received under this section
1896		-	were used for costs associated with implementing Section 21.3521,
1897		-	including efforts to support teachers in obtaining designations;
1898		-	and
1899		-	(2) the district prioritized high needs campuses in
1900		-	the district in using funds received under this section.
1901		-	Sec. 48.114. MENTOR PROGRAM ALLOTMENT. (a) A school
1902		-	district that has implemented a mentoring program for classroom
1903		-	teachers who have less than two years of teaching experience under
1904		-	Section 21.458 is entitled to an allotment as determined under
1905		-	Subsection (b) to fund the mentoring program and to provide
1906		-	stipends for mentor teachers.
1907		-	(b) The commissioner shall adopt a formula to determine the
1908		-	amount to which each district described by Subsection (a) is
1909		-	entitled.
1910		-	(c) Funding provided to districts under this section may be
1911		-	used only for providing:
1912		-	(1) mentor teacher stipends;
1913		-	(2) scheduled release time for mentor teachers and the
1914		-	classroom teachers to whom they are assigned for meeting and
1915		-	engaging in mentoring activities; and
1916		-	(3) mentoring support through providers of mentor
1917		-	training.
1918		-	SECTION 1.032. Chapter 48, Education Code, as added by this
	1585	+	(g) A district shall annually certify that funds received
	1586	+	under this section were used as follows:
	1587	+	(1) at least 90 percent of the funds were used for
	1588	+	educator compensation; and
	1589	+	(2) any other funds received under this section were
	1590	+	used for costs associated with implementing Subchapter P, Chapter
	1591	+	21, including efforts to support teachers in obtaining
	1592	+	designations.
	1593	+	Sec. 48.113. ACCELERATED CAMPUS EXCELLENCE ALLOTMENT. (a)
	1594	+	A school district is entitled to an allotment equal to the basic
	1595	+	allotment multiplied by 0.1 for each student in average daily
	1596	+	attendance at a district campus that:
	1597	+	(1) has submitted and received approval for:
	1598	+	(A) a campus turnaround plan that the
	1599	+	commissioner determines meets the requirements for an accelerated
	1600	+	campus excellence turnaround plan under Section 39A.105(b); or
	1601	+	(B) a campus implementation plan that includes
	1602	+	the provisions required for an accelerated campus excellence
	1603	+	turnaround plan under Section 39A.105(b); and
	1604	+	(2) received a performance rating of unacceptable or
	1605	+	improvement required in at least one of the last five school years.
	1606	+	(b) A school district may not receive an allotment under
	1607	+	this section for more than five school years.
	1608	+	SECTION 1.028. Chapter 48, Education Code, as added by this
1919	1609		Act, is amended by adding Subchapter D, and a heading is added to
1920	1610		that subchapter to read as follows:
1921	1611		SUBCHAPTER D. ADDITIONAL FUNDING
1922		-	SECTION 1.~~033~~. Sections 42.155 and 42.158, Education Code,
	1612	+	SECTION 1.029. Sections 42.155 and 42.158, Education Code,
1923	1613		are transferred to Subchapter D, Chapter 48, Education Code, as
1924	1614		added by this Act, redesignated as Sections 48.151 and 48.152,
1925	1615		Education Code, and amended to read as follows:
1926	1616		Sec. 48.151 [42.155]. TRANSPORTATION ALLOTMENT. (a) Each
1927	1617		district or county operating a transportation system is entitled to
1928	1618		allotments for transportation costs as provided by this section.
1929	1619		(b) As used in this section:
1930	1620		(1) "Regular eligible student" means a student who:
1931	1621		(A) resides two or more miles from the student's
1932	1622		campus of regular attendance, measured along the shortest route
1933		-	that may be traveled on public roads, and who is not classified as a
1934		-	student eligible for special education services; or
	1623	+	that may be traveled on public roads, and who:
	1624	+	(i) is not classified as a student eligible
	1625	+	for special education services; and
	1626	+	(ii) has not transferred to the district in
	1627	+	which the student is enrolled under Section 25.035 or 25.036; or
1935	1628		(B) is a homeless child or youth, as defined by 42
1936	1629		U.S.C. Section 11434a.
1937	1630		(2) "Eligible special education student" means a
1938	1631		student who is eligible for special education services under
1939	1632		Section 29.003 and who would be unable to attend classes without
1940	1633		special transportation services.
1941	1634		[(3) "Linear density" means the average number of
1942	1635		regular eligible students transported daily, divided by the
1943	1636		approved daily route miles traveled by the respective
1944	1637		transportation system.]
1945	1638		(c) Each district or county operating a regular
1946	1639		transportation system is entitled to an allotment based on a rate
1947	1640		per mile [the daily cost] per regular eligible student set [of
1948	1641		operating and maintaining the regular transportation system and the
1949	1642		linear density of that system. In determining the cost, the
1950	1643		commissioner shall give consideration to factors affecting the
1951	1644		actual cost of providing these transportation services in each
1952	1645		district or county. The average actual cost is to be computed by the
1953	1646		commissioner and included for consideration] by the legislature in
1954	1647		the General Appropriations Act. [The allotment per mile of approved
1955	1648		route may not exceed the amount set by appropriation.]
1956	1649		(d) A district or county may apply for and on approval of the
1957	1650		commissioner receive an additional amount of up to 10 percent of its
1958	1651		regular transportation allotment to be used for the transportation
1959	1652		of children living within two miles of the school they attend who
1960	1653		would be subject to hazardous traffic conditions or a high risk of
1961	1654		violence if they walked to school.
1962	1655		(d-1) For purposes of Subsection (d), each board of trustees
1963	1656		shall provide to the commissioner an explanation of the hazardous
1964	1657		traffic conditions or areas presenting a high risk of violence
1965	1658		applicable to that district and shall identify the specific
1966	1659		hazardous or high-risk areas for which the allocation is
1967	1660		requested. A hazardous traffic condition exists where no walkway
1968	1661		is provided and children must walk along or cross a freeway or
1969	1662		expressway, an underpass, an overpass or a bridge, an uncontrolled
1970	1663		major traffic artery, an industrial or commercial area, or another
1971	1664		comparable condition. An area presents a high risk of violence if
1972	1665		law enforcement records indicate a high incidence of violent crimes
1973	1666		in the area. Each board of trustees requesting funds for an area
1974	1667		presenting a high risk of violence must, in addition to the
1975	1668		explanation required by this subsection, provide the commissioner
1976	1669		with consolidated law enforcement records that document violent
1977	1670		crimes identified by reporting agencies within the relevant
1978	1671		jurisdiction.
1979	1672		(d-2) A district or county may use all or part of any funds
1980	1673		received under Subsection (d) to support community walking
1981	1674		transportation programs, including walking school bus programs,
1982	1675		provided that the district or county requires each supported
1983	1676		program to submit a financial report to the district or county each
1984	1677		semester that covers services provided by the program for the
1985	1678		benefit of the district or county. The commissioner shall adopt
1986	1679		rules governing the transportation allotment as necessary to permit
1987	1680		a district or county to receive funds under Subsection (d) that may
1988	1681		be used to support innovative school safety projects, including
1989	1682		community walking transportation programs as provided by this
1990	1683		subsection and any other appropriate safety project, including
1991	1684		rules defining an approved walking route mile that may be used as
1992	1685		necessary in implementing this subsection.
1993	1686		(e) The commissioner may grant an amount set by
1994	1687		appropriation for private or commercial transportation for
1995	1688		eligible students from isolated areas. The need for this type of
1996	1689		transportation grant shall be determined on an individual basis and
1997	1690		the amount granted shall not exceed the actual cost. The grants may
1998	1691		be made only in extreme hardship cases. A grant may not be made if
1999	1692		the students live within two miles of an approved school bus route.
2000	1693		(f) The cost of transporting career and technology
2001	1694		education students from one campus to another inside a district,
2002	1695		[or] from a sending district to another secondary public school for
2003	1696		a career and technology program or an area career and technology
2004	1697		school or to an approved post-secondary institution under a
2005	1698		contract for instruction approved by the agency, or from a district
2006	1699		campus to a location at which students are provided work-based
2007	1700		learning under the district's career and technology program shall
2008	1701		be reimbursed based on the number of actual miles traveled times the
2009	1702		district's official extracurricular travel per mile rate as set by
2010	1703		the board of trustees and approved by the agency.
2011	1704		(g) A school district or county that provides special
2012	1705		transportation services for eligible special education students is
2013	1706		entitled to a state allocation paid on a previous year's
2014	1707		cost-per-mile basis. The [maximum] rate per mile allowable shall
2015	1708		be set by appropriation based on data gathered from the first year
2016	1709		of each preceding biennium. Districts may use a portion of their
2017	1710		support allocation to pay transportation costs, if necessary. The
2018	1711		commissioner may grant an amount set by appropriation for private
2019	1712		transportation to reimburse parents or their agents for
2020	1713		transporting eligible special education students. The mileage
2021	1714		allowed shall be computed along the shortest public road from the
2022	1715		student's home to school and back, morning and afternoon. The need
2023	1716		for this type transportation shall be determined on an individual
2024	1717		basis and shall be approved only in extreme hardship cases.
2025	1718		(h) Funds allotted under this section must be used in
2026	1719		providing transportation services.
2027	1720		(i) In the case of a district belonging to a county
2028	1721		transportation system, the district's transportation allotment for
2029	1722		purposes of determining a district's foundation school program
2030	1723		allocations is determined on the basis of the number of approved
2031	1724		daily route miles in the district [multiplied by the allotment per
2032	1725		mile to which the county transportation system is entitled].
2033	1726		(j) The Texas School for the Deaf is entitled to an
2034	1727		allotment under this section. The commissioner shall determine the
2035	1728		appropriate allotment.
2036	1729		(k) Notwithstanding any other provision of this section,
2037	1730		the commissioner may not reduce the allotment to which a district or
2038	1731		county is entitled under this section because the district or
2039	1732		county provides transportation for an eligible student to and from
2040	1733		a child-care facility, as defined by Section 42.002, Human
2041	1734		Resources Code, or a grandparent's residence instead of the
2042		-	student's residence, as authorized by Section 34.007 of this code
2043		-	[, if the transportation is provided within the approved routes of
2044		-	~~the~~ district or county for the school the student attends].
	1735	+	student's residence, as authorized by Section 34.007 of this code[,
	1736	+	if the transportation is provided within the approved routes of the
	1737	+	district or county for the school the student attends].
2045	1738		(l) A school district may, with the funds allotted under
2046	1739		this section, provide a bus pass or card for another transportation
2047	1740		system to each student who is eligible to use the regular
2048	1741		transportation system of the district but for whom the regular
2049	1742		transportation system of the district is not a feasible method of
2050	1743		providing transportation. The commissioner by rule shall provide
2051	1744		procedures for a school district to provide bus passes or cards to
2052	1745		students under this subsection.
2053	1746		(m) A school district shall be reimbursed on a per-mile
2054	1747		basis for the cost of transporting a dual credit student to another
2055	1748		campus in the district, a campus in another district, or a
2056	1749		postsecondary educational institution for purposes of attending
2057	1750		the course, if the course is not available at the student's campus.
2058	1751		Sec. 48.152 [42.158]. NEW INSTRUCTIONAL FACILITY
2059	1752		ALLOTMENT. (a) In this section:
2060	1753		(1) "Instructional facility" has the meaning assigned
2061	1754		by Section 46.001.
2062	1755		(2) "New instructional facility" includes:
2063	1756		(A) a newly constructed instructional facility;
2064	1757		(B) a repurposed instructional facility; and
2065	1758		(C) a leased facility operating for the first
2066	1759		time as an instructional facility with a minimum lease term of not
2067	1760		less than 10 years.
2068	1761		(b) A school district is entitled to an additional allotment
2069	1762		as provided by this section for operational expenses associated
2070	1763		with opening a new instructional facility.
2071	1764		(c) [(a-1)] A school district entitled to an allotment
2072	1765		under this section may use funds from the district's allotment to
2073	1766		renovate an existing instructional facility to serve as a dedicated
2074	1767		cybersecurity computer laboratory.
2075	1768		(d) [(b)] For the first school year in which students attend
2076	1769		a new instructional facility, a school district is entitled to an
2077	1770		allotment of $1,000 for each student in average daily attendance at
2078	1771		the facility. For the second school year in which students attend
2079	1772		that instructional facility, a school district is entitled to an
2080	1773		allotment of $1,000 for each additional student in average daily
2081	1774		attendance at the facility.
2082	1775		(e) [(c)] For purposes of this section, the number of
2083	1776		additional students in average daily attendance at a facility is
2084	1777		the difference between the number of students in average daily
2085	1778		attendance in the current year at that facility and the number of
2086	1779		students in average daily attendance at that facility in the
2087	1780		preceding year.
2088		-	(f) ~~The~~ [(d) Subject to Subsection (d-1), the] amount
2089		-	appropriated for allotments under this section may not exceed $~~100~~
2090		-	~~[$25]~~ million in a school year. If the total amount of allotments
2091		-	to which districts are entitled under this section for a school year
	1781	+	(f) [(d)] Subject to Subsection (g) [(d-1)], the amount
	1782	+	appropriated for allotments under this section may not exceed $25
	1783	+	million in a school year. If the total amount of allotments to
	1784	+	which districts are entitled under this section for a school year
2092	1785		exceeds the amount appropriated under this subsection, the
2093	1786		commissioner shall reduce each district's allotment under this
2094	1787		section in the manner provided by Section 48.266(f) [42.253(h)].
2095		-	[(d-1) In addition to the appropriation amount ~~described by~~
2096		-	Subsection (d), the amount of $1 million may be ~~appropriated each~~
2097		-	school year to supplement the allotment to which ~~a school district~~
2098		-	is entitled under this section that may be ~~provided using the~~
2099		-	appropriation amount described by Subsection (d)~~. The~~
2100		-	commissioner shall first apply the funds appropriated ~~under this~~
2101		-	subsection to prevent any reduction under Subsection (d) ~~in the~~
2102		-	allotment for attendance at an eligible high school ~~instructional~~
2103		-	facility, subject to the maximum amount of $1,000 for ~~each student~~
2104		-	in average daily attendance. Any funds remaining ~~after preventing~~
2105		-	all reductions in amounts due for high school ~~instructional~~
2106		-	facilities may be applied proportionally to all other ~~eligible~~
2107		-	instructional facilities, subject to the maximum amount of ~~$1,000~~
2108		-	for each student in average daily attendance.
	1788	+	(g) [(d-1)] In addition to the appropriation amount
	1789	+	described by Subsection (f) [(d)], the amount of $1 million may be
	1790	+	appropriated each school year to supplement the allotment to which
	1791	+	a school district is entitled under this section that may be
	1792	+	provided using the appropriation amount described by Subsection (f)
	1793	+	[(d)]. The commissioner shall first apply the funds appropriated
	1794	+	under this subsection to prevent any reduction under Subsection (f)
	1795	+	[(d)] in the allotment for attendance at an eligible high school
	1796	+	instructional facility, subject to the maximum amount of $1,000 for
	1797	+	each student in average daily attendance. Any funds remaining
	1798	+	after preventing all reductions in amounts due for high school
	1799	+	instructional facilities may be applied proportionally to all other
	1800	+	eligible instructional facilities, subject to the maximum amount of
	1801	+	$1,000 for each student in average daily attendance.
2109	1802		[(e) A school district that is required to take action under
2110	1803		Chapter 41 to reduce its wealth per student to the equalized wealth
2111	1804		level is entitled to a credit, in the amount of the allotments to
2112	1805		which the district is entitled under this section, against the
2113	1806		total amount required under Section 41.093 for the district to
2114	1807		purchase attendance credits. A school district that is otherwise
2115	1808		ineligible for state aid under this chapter is entitled to receive
2116	1809		allotments under this section.
2117	1810		[(f) The commissioner may adopt rules necessary to
2118	1811		implement this section.
2119	1812		[(g) In this section:
2120	1813		[(1) "Instructional facility" has the meaning
2121	1814		assigned by Section 46.001.
2122	1815		[(2) "New instructional facility" includes:
2123	1816		[(A) a newly constructed instructional facility;
2124	1817		[(B) a repurposed instructional facility; and
2125	1818		[(C) a leased facility operating for the first
2126	1819		time as an instructional facility with a minimum lease term of not
2127	1820		less than 10 years.]
2128		-	SECTION 1.~~034~~. Subchapter D, Chapter 48, Education Code, as
	1821	+	SECTION 1.030. Subchapter D, Chapter 48, Education Code, as
2129	1822		added by this Act, is amended by adding Section 48.153 to read as
2130	1823		follows:
2131	1824		Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
2132	1825		PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
2133	1826		charter school is entitled to $275 for each student in average daily
2134	1827		attendance who:
2135	1828		(1) resides in a residential placement facility; or
2136	1829		(2) is at a district or school or a campus of the
2137	1830		district or school that is designated as a dropout recovery school
2138	1831		under Section 39.0548.
2139		-	SECTION 1.~~035~~. Section 42.106, Education Code, is
	1832	+	SECTION 1.031. Section 42.106, Education Code, is
2140	1833		transferred to Subchapter D, Chapter 48, Education Code, as added
2141	1834		by this Act, redesignated as Section 48.154, and amended to read as
2142	1835		follows:
2143	1836		Sec. 48.154 [42.106]. TUITION ALLOTMENT FOR DISTRICTS NOT
2144	1837		OFFERING ALL GRADE LEVELS. A school district that contracts for
2145	1838		students residing in the district to be educated in another
2146	1839		district under Section 25.039(a) is entitled to receive an
2147	1840		allotment equal to the total amount of tuition required to be paid
2148	1841		by the district under Section 25.039, not to exceed the amount
2149	1842		specified by commissioner rule under Section 25.039(b).
2150		-	SECTION 1.~~036~~. Subchapter D, Chapter 48, Education Code, as
2151		-	added by this Act, is amended by adding Sections 48.155 ~~and~~ 48.156
2152		-	to read as follows:
	1843	+	SECTION 1.032. Subchapter D, Chapter 48, Education Code, as
	1844	+	added by this Act, is amended by adding Sections 48.155, 48.156, and
	1845	+	48.157 to read as follows:
2153	1846		Sec. 48.155. COLLEGE PREPARATION ASSESSMENT REIMBURSEMENT.
2154	1847		A school district is entitled to reimbursement for the amount of
2155	1848		fees paid by the district for the administration of an assessment
2156	1849		instrument under Section 39.0261(a)(3).
2157	1850		Sec. 48.156. CERTIFICATION EXAMINATION REIMBURSEMENT. A
2158	1851		school district is entitled to reimbursement for the amount of a
2159	1852		subsidy paid by the district for a student's certification
2160	1853		examination under Section 29.190(a) as provided by Section
2161	1854		29.190(c).
2162		-	SECTION 1.037. Chapter 48, Education Code, as added by this
	1855	+	Sec. 48.157. TEACHER INCENTIVE FEE REIMBURSEMENT. A school
	1856	+	district is entitled to reimbursement for any fee paid under
	1857	+	Subchapter P, Chapter 21, or membership fees paid to the National
	1858	+	Board for Professional Standards for the purpose of Section
	1859	+	21.753(b).
	1860	+	SECTION 1.033. Chapter 48, Education Code, as added by this
2163	1861		Act, is amended by adding Subchapter E, and a heading is added to
2164	1862		that subchapter to read as follows:
2165	1863		SUBCHAPTER E. TIER TWO ENTITLEMENT
2166		-	SECTION 1.~~038~~. Sections 42.301, 42.302, 42.303, and 42.304,
	1864	+	SECTION 1.034. Sections 42.301, 42.302, 42.303, and 42.304,
2167	1865		Education Code, are transferred to Subchapter E, Chapter 48,
2168	1866		Education Code, as added by this Act, redesignated as Sections
2169	1867		48.201, 48.202, 48.203, and 48.204, Education Code, and amended to
2170	1868		read as follows:
2171	1869		Sec. 48.201 [42.301]. PURPOSE. The purpose of the tier
2172	1870		two [guaranteed yield] component of the Foundation School Program
2173	1871		is to provide each school district with the opportunity to provide
2174	1872		the basic program and to supplement that program at a level of its
2175	1873		own choice. An allotment under this subchapter may be used for any
2176	1874		legal purpose other than capital outlay or debt service.
2177	1875		Sec. 48.202 [42.302]. TIER TWO ALLOTMENT. (a) Each school
2178	1876		district is guaranteed a specified amount per weighted student in
2179	1877		state and local funds for each cent of tax effort over that required
2180	1878		for the district's local fund assignment up to the maximum level
2181	1879		specified in this subchapter. The amount of state support, subject
2182	1880		only to the maximum amount under Section 48.203 [42.303], is
2183	1881		determined by the formula:
2184	1882		GYA = (GL X WADA X DTR X 100) - LR
2185	1883		where:
2186	1884		"GYA" is the guaranteed yield amount of state funds to be
2187	1885		allocated to the district;
2188	1886		"GL" is the dollar amount guaranteed level of state and local
2189	1887		funds per weighted student per cent of tax effort, which is an
2190	1888		amount described by Subsection (a-1) or a greater amount for any
2191	1889		year provided by appropriation;
2192	1890		"WADA" is the number of students in weighted average daily
2193	1891		attendance, which is calculated by dividing the sum of the school
2194	1892		district's allotments under Subchapters B and C[, less any
2195	1893		allotment to the district for transportation, any allotment under
2196	1894		Section 42.158 or 42.160, and 50 percent of the adjustment under
2197	1895		Section 42.102,] by the basic allotment for the applicable year;
2198	1896		"DTR" is the district enrichment tax rate of the school
2199	1897		district, which is determined by subtracting the amounts specified
2200	1898		by Subsection (b) from the total amount of maintenance and
2201	1899		operations taxes collected by the school district for the
2202	1900		applicable school year and dividing the difference by the quotient
2203	1901		of the district's taxable value of property as determined under
2204	1902		Subchapter M, Chapter 403, Government Code, or, if applicable,
2205		-	under Section 48.258 or by the quotient of the value of "DPV" as
2206		-	determined under Section 48.256(d) if that subsection applies to
2207		-	the district [42.2521], divided by 100; and
	1903	+	under Section 48.258 [42.2521], divided by 100; and
2208	1904		"LR" is the local revenue, which is determined by multiplying
2209	1905		"DTR" by the quotient of the district's taxable value of property as
2210	1906		determined under Subchapter M, Chapter 403, Government Code, or, if
2211		-	applicable, under Section 48.258 or by the quotient of the value of
2212		-	"DPV" as determined under Section 48.256(d) if that subsection
2213		-	applies to the district [42.2521], divided by 100.
	1907	+	applicable, under Section 48.258 [42.2521], divided by 100.
2214	1908		(a-1) For purposes of Subsection (a), the dollar amount
2215	1909		guaranteed level of state and local funds per weighted student per
2216	1910		cent of tax effort ("GL") for a school district is:
2217		-	(1) the greater of the amount of district tax revenue
2218		-	per weighted student per cent of tax effort [that would be]
2219		-	available to a school district at the 96th percentile of wealth per
2220		-	weighted student [the Austin Independent School District, as
2221		-	determined by the commissioner in cooperation with the Legislative
2222		-	Budget Board, if the reduction of the limitation on tax increases as
2223		-	provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not
2224		-	apply,] or the amount that results from multiplying 6,160, or the
2225		-	greater amount provided under Section 48.051(b), if applicable, by
2226		-	0.016 [of district tax revenue per weighted student per cent of tax
2227		-	effort used for purposes of this subdivision in the preceding
2228		-	school year], for the first eight [six] cents by which the
2229		-	district's maintenance and operations tax rate exceeds the
2230		-	district's tier one tax rate [equal to the sum of the product of the
2231		-	state compression percentage, as determined under Section 42.2516,
2232		-	multiplied by the maintenance and operations tax rate adopted by
2233		-	the district for the 2005 tax year and any additional tax effort
2234		-	included in calculating the district's compressed tax rate under
2235		-	Section 42.101(a-1)]; and
	1911	+	(1) [the greater of the amount of district tax revenue
	1912	+	per weighted student per cent of tax effort that would be available
	1913	+	to the Austin Independent School District, as determined by the
	1914	+	commissioner in cooperation with the Legislative Budget Board, if
	1915	+	the reduction of the limitation on tax increases as provided by
	1916	+	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or]
	1917	+	the amount that results from multiplying $5,880, or the greater
	1918	+	amount provided under Section 48.051(b), if applicable, by 0.016
	1919	+	[of district tax revenue per weighted student per cent of tax effort
	1920	+	used for purposes of this subdivision in the preceding school
	1921	+	year], for the first six cents by which the district's maintenance
	1922	+	and operations tax rate exceeds the district's tier one tax rate
	1923	+	[equal to the sum of the product of the state compression
	1924	+	percentage, as determined under Section 42.2516, multiplied by the
	1925	+	maintenance and operations tax rate adopted by the district for the
	1926	+	2005 tax year and any additional tax effort included in calculating
	1927	+	the district's compressed tax rate under Section 42.101(a-1)]; and
2236	1928		(2) subject to Subsection (f), the amount that results
2237		-	from multiplying $6,~~160~~, or the greater amount provided under
	1929	+	from multiplying $5,880, or the greater amount provided under
2238	1930		Section 48.051(b), if applicable, by 0.008 [$31.95], for the
2239	1931		district's maintenance and operations tax effort that exceeds the
2240	1932		amount of tax effort described by Subdivision (1).
2241	1933		(a-2) The limitation on district enrichment tax rate
2242	1934		("DTR") under Section 48.203 [42.303] does not apply to the
2243	1935		district's maintenance and operations tax effort described by
2244	1936		Subsection (a-1)(1).
2245	1937		(b) In computing the district enrichment tax rate of a
2246	1938		school district, the total amount of maintenance and operations
2247	1939		taxes collected by the school district does not include the amount
2248	1940		of:
2249	1941		(1) the district's local fund assignment under Section
2250	1942		48.256 [42.252]; or
2251	1943		(2) taxes paid into a tax increment fund under Chapter
2252	1944		311, Tax Code.
2253	1945		(c) For purposes of this section, school district taxes for
2254	1946		which credit is granted under Section 31.035, 31.036, or 31.037,
2255	1947		Tax Code, are considered taxes collected by the school district as
2256	1948		if the taxes were paid when the credit for the taxes was granted.
2257	1949		(d) For purposes of this section, the total amount of
2258	1950		maintenance and operations taxes collected for an applicable school
2259	1951		year by a school district with alternate tax dates, as authorized by
2260	1952		Section 26.135, Tax Code, is the amount of taxes collected on or
2261	1953		after January 1 of the year in which the school year begins and not
2262	1954		later than December 31 of the same year.
2263	1955		(e) For purposes of this section, school district taxes for
2264	1956		which credit is granted under former Subchapter D, Chapter 313, Tax
2265	1957		Code, are considered taxes collected by the school district as if
2266	1958		the taxes were paid when the credit for the taxes was granted.
2267	1959		(f) For a school year in which the dollar amount guaranteed
2268	1960		level of state and local funds per weighted student per cent of tax
2269	1961		effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount
2270	1962		guaranteed level of state and local funds per weighted student per
2271	1963		cent of tax effort ("GL") under Subsection (a-1)(2) for the
2272	1964		preceding school year, a school district shall reduce the
2273	1965		district's tax rate under Section 45.0032(b)(2) for the tax year
2274	1966		that corresponds to that school year to a rate that results in the
2275	1967		amount of state and local funds per weighted student per cent of tax
2276	1968		effort available to the district at the dollar amount guaranteed
2277	1969		level for the preceding school year. A school district is not
2278	1970		entitled to the amount equal to the increase of revenue described by
2279	1971		this subsection for the school year for which the district must
2280	1972		reduce the district's tax rate. Unless Section 26.08(a-1), Tax
2281	1973		Code, applies to the district, for a tax year in which a district
2282	1974		must reduce the district's tax rate under this subsection, the
2283	1975		district may not increase the district's maintenance and operations
2284	1976		tax rate to a rate that exceeds the maximum maintenance and
2285	1977		operations tax rate permitted under Section 45.003(d) or (f), as
2286	1978		applicable, minus the reduction of tax effort required under this
2287	1979		subsection. This subsection does not apply if the amount of state
2288	1980		funds appropriated for a school year specifically excludes the
2289	1981		amount necessary to provide the dollar amount guaranteed level of
2290	1982		state and local funds per weighted student per cent of tax effort
2291	1983		under Subsection (a-1)(2) [If a school district imposes a
2292	1984		maintenance and operations tax at a rate greater than the rate equal
2293	1985		to the product of the state compression percentage, as determined
2294	1986		under Section 42.2516, multiplied by the maintenance and operations
2295	1987		tax rate adopted by the district for the 2005 tax year, the district
2296	1988		is entitled to receive an allotment under this section on the basis
2297	1989		of that greater tax effort].
2298		-	(f-1) Notwithstanding Subsection (f), for the 2019-2020
2299		-	school year, the reduction of a school district's tax rate required
2300		-	under Subsection (f) applies to the district's total enrichment tax
2301		-	rate under Section 45.0032(b) minus eight cents. This subsection
2302		-	expires September 1, 2020.
	1990	+	(f-1) For the 2019 tax year, Subsection (f) applies to a
	1991	+	district's maintenance and operations tax rate after adjusting the
	1992	+	district's rate in accordance with Section 45.0032. This
	1993	+	subsection expires September 1, 2020.
2303	1994		Sec. 48.203 [42.303]. LIMITATION ON ENRICHMENT TAX RATE.
2304	1995		The district enrichment tax rate ("DTR") under Section 48.202
2305	1996		[42.302] may not exceed the amount per $100 of valuation by which
2306	1997		the maximum rate permitted under Section 45.003 exceeds the rate
2307	1998		used to determine the district's local share under Section 48.256
2308	1999		[42.252], or a greater amount for any year provided by
2309	2000		appropriation.
2310	2001		Sec. 48.204 [42.304]. COMPUTATION OF AID FOR DISTRICT ON
2311	2002		MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
2312	2003		this subchapter for a school district located on a federal military
2313	2004		installation or at Moody State School is computed using the average
2314	2005		tax rate and property value per student of school districts in the
2315	2006		county, as determined by the commissioner.
2316		-	SECTION 1.~~039~~. Chapter 48, Education Code, as added by this
	2007	+	SECTION 1.035. Chapter 48, Education Code, as added by this
2317	2008		Act, is amended by adding Subchapter F, and a heading is added to
2318	2009		that subchapter to read as follows:
2319	2010		SUBCHAPTER F. FINANCING THE PROGRAM
2320		-	SECTION 1.~~040~~. Sections 42.251, 42.2511, 42.2514, 42.2515,
2321		-	~~42.2516,~~ and 42.~~252~~, Education Code, are transferred to Subchapter
2322		-	F, Chapter 48, Education Code, as added by this Act, redesignated as
2323		-	Sections 48.251, 48.252, 48.253, 48.254, 48.255, ~~and 48.256,~~
2324		-	~~Education~~ Code, and amended to read as follows:
	2011	+	SECTION 1.036. Sections 42.251, 42.2511, 42.2514, 42.2515,
	2012	+	and 42.2516, Education Code, are transferred to Subchapter F,
	2013	+	Chapter 48, Education Code, as added by this Act, redesignated as
	2014	+	Sections 48.251, 48.252, 48.253, 48.254, and 48.255, Education
	2015	+	Code, and amended to read as follows:
2325	2016		Sec. 48.251 [42.251]. FINANCING; GENERAL RULE. (a) The
2326	2017		cost of the Foundation School Program for a school district is the
2327	2018		total sum of:
2328	2019		(1) the sum of the tier one allotments and other
2329	2020		funding as follows:
2330	2021		(A) the basic allotment under Subchapter B;
2331	2022		(B) [and] the student-based [special] allotments
2332	2023		under Subchapter C; and
2333	2024		(C) the additional funding under Subchapter D;
2334	2025		and
2335	2026		(2) [, computed in accordance with this chapter,
2336	2027		constitute the tier one allotments. The sum of the tier one
2337	2028		allotments and] the tier two allotment [guaranteed yield
2338	2029		allotments] under Subchapter E.
2339	2030		(b) The sum of the Foundation School Program maintenance and
2340	2031		operations costs for all accredited school districts in this state
2341	2032		constitutes [F, computed in accordance with this chapter,
2342	2033		constitute] the total maintenance and operations cost of the
2343	2034		Foundation School Program.
2344	2035		(c) [(b)] The program shall be financed by:
2345	2036		(1) state available school funds distributed in
2346	2037		accordance with the law [ad valorem tax revenue generated by an
2347	2038		equalized uniform school district effort];
2348	2039		(2) ad valorem tax revenue generated by local school
2349	2040		district effort [in excess of the equalized uniform school district
2350	2041		effort]; and
2351	2042		(3) [state available school funds distributed in
2352	2043		accordance with law; and
2353	2044		[(4)] state funds appropriated for the purposes of
2354	2045		public school education and allocated to each district in an amount
2355	2046		sufficient to finance the cost of each district's Foundation School
2356	2047		Program not covered by other funds specified in this subsection.
2357	2048		Sec. 48.252 [42.2511]. SCHOOL DISTRICT ENTITLEMENT FOR
2358	2049		CERTAIN STUDENTS. (a) This section applies only to:
2359	2050		(1) a school district and an open-enrollment charter
2360	2051		school that enter into a contract to operate a district campus as
2361	2052		provided by Section 11.174; and
2362	2053		(2) a charter granted by a school district for a
2363	2054		program operated by an entity that has entered into a contract under
2364	2055		Section 11.174, provided that the district does not appoint a
2365	2056		majority of the governing body of the charter holder.
2366	2057		(b) Notwithstanding any other provision of this chapter or
2367	2058		Chapter 49 [41], a school district subject to this section is
2368	2059		entitled to receive for each student in average daily attendance at
2369	2060		the campus described by Subsection (a) an amount equivalent to the
2370	2061		difference, if the difference results in increased funding,
2371	2062		between:
2372	2063		(1) the amount described by Section 12.106; and
2373	2064		(2) the amount to which the district would be entitled
2374	2065		under this chapter.
2375	2066		(c) The commissioner shall adopt rules as necessary to
2376	2067		administer this section.
2377	2068		Sec. 48.253 [42.2514]. ADDITIONAL STATE AID FOR TAX
2378		-	INCREMENT FINANCING PAYMENTS. ~~(a)~~ For each school year, a school
	2069	+	INCREMENT FINANCING PAYMENTS. For each school year, a school
2379	2070		district[, including a school district that is otherwise ineligible
2380	2071		for state aid under this chapter,] is entitled to state aid in an
2381	2072		amount equal to the amount the district is required to pay into the
2382	2073		tax increment fund for a reinvestment zone under Section
2383	2074		311.013(n), Tax Code.
2384		-	(b) A school district shall provide to the agency any
2385		-	agreements, amendments to agreements, or other information
2386		-	required by the agency to implement this section.
2387	2075		Sec. 48.254 [42.2515]. ADDITIONAL STATE AID FOR AD VALOREM
2388	2076		TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. [(a)] For each
2389	2077		school year, a school district, including a school district that is
2390	2078		otherwise ineligible for state aid under this chapter, is entitled
2391	2079		to state aid in an amount equal to the amount of all tax credits
2392	2080		credited against ad valorem taxes of the district in that year under
2393	2081		former Subchapter D, Chapter 313, Tax Code.
2394	2082		[(b) The commissioner may adopt rules to implement and
2395	2083		administer this section.]
2396	2084		Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
2397	2085		In this title, "state compression percentage" means the percentage
2398	2086		of the rate of $1.00 per $100 valuation of taxable property at which
2399	2087		a school district must levy a [district's adopted] maintenance and
2400	2088		operations tax to receive the full amount of the tier one allotment
2401	2089		to which the district is entitled under this chapter.
2402	2090		(b) The [tax rate for the 2005 tax year that serves as the
2403	2091		basis for state funding. If the] state compression percentage is:
2404		-	(1) 93 percent; or
	2092	+	(1) 92 percent; or
2405	2093		(2) a lower percentage set [not established] by
2406	2094		appropriation for a school year [, the commissioner shall determine
2407	2095		the state compression percentage for each school year based on the
2408	2096		percentage by which a district is able to reduce the district's
2409	2097		maintenance and operations tax rate for that year, as compared to
2410	2098		the district's adopted maintenance and operations tax rate for the
2411	2099		2005 tax year, as a result of state funds appropriated for that year
2412	2100		from the property tax relief fund established under Section
2413	2101		403.109, Government Code, or from another funding source available
2414	2102		for school district property tax relief.
2415	2103		[(g) The commissioner may adopt rules necessary to
2416	2104		implement this section.
2417	2105		[(h) A determination by the commissioner under this section
2418	2106		is final and may not be appealed].
	2107	+	SECTION 1.037. Effective September 1, 2020, Section
	2108	+	42.2516, Education Code, is transferred to Subchapter F, Chapter
	2109	+	48, Education Code, as added by this Act, redesignated as Section
	2110	+	48.255, Education Code, and amended to read as follows:
	2111	+	Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
	2112	+	In this title, "state compression percentage" means the percentage
	2113	+	of the rate of $1.00 per $100 valuation of taxable property at which
	2114	+	a school district must levy a [district's adopted] maintenance and
	2115	+	operations tax to receive the full amount of the tier one allotment
	2116	+	to which the district is entitled under this chapter.
	2117	+	(b) The [tax rate for the 2005 tax year that serves as the
	2118	+	basis for state funding. If the] state compression percentage is:
	2119	+	(1) 100 percent; or
	2120	+	(2) a lower percentage set [not established] by
	2121	+	appropriation for a school year [, the commissioner shall determine
	2122	+	the state compression percentage for each school year based on the
	2123	+	percentage by which a district is able to reduce the district's
	2124	+	maintenance and operations tax rate for that year, as compared to
	2125	+	the district's adopted maintenance and operations tax rate for the
	2126	+	2005 tax year, as a result of state funds appropriated for that year
	2127	+	from the property tax relief fund established under Section
	2128	+	403.109, Government Code, or from another funding source available
	2129	+	for school district property tax relief.
	2130	+	[(g) The commissioner may adopt rules necessary to
	2131	+	implement this section.
	2132	+	[(h) A determination by the commissioner under this section
	2133	+	is final and may not be appealed].
	2134	+	SECTION 1.038. Section 42.252, Education Code, is
	2135	+	transferred to Subchapter F, Chapter 48, Education Code, as added
	2136	+	by this Act, redesignated as Section 48.256, Education Code, and
	2137	+	amended to read as follows:
2419	2138		Sec. 48.256 [42.252]. LOCAL SHARE OF PROGRAM COST (TIER
2420	2139		ONE). (a) Each school district's share of the Foundation School
2421	2140		Program is determined by the following formula:
2422	2141		LFA = TR X DPV
2423	2142		where:
2424	2143		"LFA" is the school district's local share;
2425	2144		"TR" is the school district's adopted tier one maintenance
2426	2145		and operations [a] tax rate, as described by Section 45.0032(a)
2427	2146		[which] for each hundred dollars of valuation [is an effective tax
2428	2147		rate of the amount equal to the product of the state compression
2429	2148		percentage, as determined under Section 42.2516, multiplied by the
2430	2149		lesser of:
2431	2150		[(1) $1.50; or
2432	2151		[(2) the maintenance and operations tax rate adopted
2433	2152		by the district for the 2005 tax year]; and
2434	2153		"DPV" is the taxable value of property in the school district
2435	2154		for the current [preceding] tax year determined under Subchapter M,
2436	2155		Chapter 403, Government Code.
2437	2156		[(a-1) Notwithstanding Subsection (a), for a school
2438	2157		district that adopted a maintenance and operations tax rate for the
2439	2158		2005 tax year below the maximum rate permitted by law for that year,
2440	2159		the district's tax rate ("TR") includes the tax effort included in
2441	2160		calculating the district's compressed tax rate under Section
2442	2161		42.101(a-1).]
2443	2162		(b) The commissioner shall adjust the values reported by [in
2444	2163		the official report of] the comptroller [as required by Section
2445	2164		5.09(a), Tax Code,] to reflect reductions in taxable value of
2446	2165		property resulting from natural or economic disaster [after January
2447	2166		1] in the year in which the valuations are determined. The decision
2448	2167		of the commissioner is final. An adjustment does not affect the
2449	2168		local fund assignment of any other school district.
2450	2169		(c) Appeals of district values shall be held pursuant to
2451	2170		Section 403.303, Government Code.
2452		-	(d) This subsection applies to a school district in which
2453		-	the board of trustees entered into a written agreement with a
2454		-	property owner under Section 313.027, Tax Code, for the
2455		-	implementation of a limitation on appraised value under Subchapter
2456		-	B or C, Chapter 313, Tax Code. For purposes of determining "DPV"
2457		-	under Subsection (a) for a school district to which this subsection
2458		-	applies, the commissioner shall exclude a portion of the market
2459		-	value of property not otherwise fully taxable by the district under
2460		-	Subchapter B or C, Chapter 313, Tax Code, before the expiration of
2461		-	the subchapter. The comptroller shall provide information to the
2462		-	agency necessary for this subsection. A revenue protection payment
2463		-	required as part of an agreement for a limitation on appraised value
2464		-	shall be based on the district's taxable value of property for the
2465		-	preceding tax year.
2466		-	(e) Subsection (d) does not apply to property that was the
2467		-	subject of an application under Subchapter B or C, Chapter 313, Tax
2468		-	Code, made after May 1, 2009, that the comptroller recommended
2469		-	should be disapproved. [A school district must raise its total
2470		-	local share of the Foundation School Program to be eligible to
2471		-	receive foundation school fund payments.]
2472		-	SECTION 1.041. Subchapter F, Chapter 48, Education Code, as
	2171	+	[(d) A school district must raise its total local share of
	2172	+	the Foundation School Program to be eligible to receive foundation
	2173	+	school fund payments.]
	2174	+	SECTION 1.039. Subchapter F, Chapter 48, Education Code, as
2473	2175		added by this Act, is amended by adding Section 48.257 to read as
2474	2176		follows:
2475	2177		Sec. 48.257. LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT.
2476	2178		(a) Subject to Subsection (b), if a school district's tier one
2477		-	local share under Section 48.256 exceeds the district's entitlement
2478		-	under Section 48.266(a)(1) less the district's distribution from
2479		-	the state available school fund, the district must reduce the
2480		-	district's tier one revenue level in accordance with Chapter 49 to a
2481		-	level not to exceed the district's entitlement under Section
	2179	+	revenue level, which is the district's tier one local share under
	2180	+	Section 48.256, exceeds the district's entitlement under Section
2482	2181		48.266(a)(1) less the district's distribution from the state
2483		-	available school fund.
	2182	+	available school fund, the district must reduce the district's tier
	2183	+	one revenue level in accordance with Chapter 49 to a level not to
	2184	+	exceed the district's entitlement under Section 48.266(a)(1) less
	2185	+	the district's distribution from the state available school fund.
2484	2186		(b) This subsection applies only to a school district to
2485		-	which Subsection (a) applies. If a district's maintenance and
2486		-	operations tax collections from the tax rate described by Section
2487		-	45.0032(a) for the current tax year minus the required reduction in
2488		-	a district's tier one revenue level under Subsection (a) results in
2489		-	an amount that is less than the amount of the district's entitlement
2490		-	under Section 48.266(a)(1) less the district's distribution from
2491		-	the state available school fund, the agency shall adjust the amount
2492		-	of the reduction required in the district's tier one revenue level
2493		-	under Subsection (a) up to the amount of local funds necessary for
2494		-	the district's entitlement under Section 48.266(a)(1) less the
2495		-	district's distribution from the state available school fund.
	2187	+	which Subsection (a) applies. If the sum of a district's
	2188	+	maintenance and operations tax collections from the tax rate
	2189	+	described by Section 45.0032(a) for the current tax year minus the
	2190	+	district's tier one revenue level under Subsection (a) is less than
	2191	+	the amount of the district's entitlement under Section
	2192	+	48.266(a)(1), the agency shall adjust the amount of the district's
	2193	+	tier one revenue level under Subsection (a) to ensure that the
	2194	+	district retains the amount of local funds necessary for the
	2195	+	district's entitlement under Section 48.266(a)(1).
2496	2196		(c) For purposes of Subsection (a), state aid to which a
2497	2197		district is entitled under this chapter that is not described by
2498	2198		Section 48.266(a)(1), (2), or (3) may offset the amount by which a
2499	2199		district must reduce the district's tier one revenue level under
2500	2200		Subsection (a). Any amount of state aid used as an offset under this
2501	2201		subsection shall reduce the amount of state aid to which the
2502	2202		district is entitled.
2503	2203		(d) Except as provided by Subsection (e), a school district
2504	2204		is entitled to retain the total amount of the district's tier two
2505	2205		local share described by Section 48.266(a)(5)(A).
2506	2206		(e) In any school year for which the amount of state funds
2507	2207		appropriated specifically excludes the amount necessary to provide
2508	2208		the dollar amount guaranteed level of state and local funds per
2509	2209		weighted student per cent of tax effort under Section
2510	2210		48.202(a-1)(1), a district may only retain the amount of the
2511	2211		district's tier two local share described by Section
2512	2212		48.266(a)(5)(A) equal to the amount of revenue that would be
2513	2213		generated based on the amount appropriated for the dollar amount
2514	2214		guaranteed level of state and local funds.
2515	2215		(f) If the amount of a school district's tier two local
2516	2216		share described by Section 48.266(a)(5)(B) to which a district is
2517	2217		entitled exceeds the amount described by Section 48.202(a-1)(2),
2518	2218		the district must reduce the district's revenue in accordance with
2519	2219		Chapter 49 to a level not to exceed the amount described by Section
2520	2220		48.202 (a-1)(2).
2521		-	(g) For a district to which Section 45.003(f) applies,
2522		-	revenue generated from any cents of maintenance and operations tax
2523		-	effort that exceeds the maximum rate permitted under Section
2524		-	45.003(d) is subject to the revenue limit established under
2525		-	Subsection (f).
2526		-	SECTION 1.042. Sections 42.2521, 42.2522, 42.2523,
	2221	+	SECTION 1.040. Sections 42.2521, 42.2522, 42.2523,
2527	2222		42.2524, 42.2525, 42.2526, 42.2527, 42.2528, 42.253, 42.2531,
2528	2223		42.2532, 42.254, 42.255, 42.257, 42.258, 42.259, 42.2591, and
2529	2224		42.260, Education Code, are transferred to Subchapter F, Chapter
2530	2225		48, Education Code, as added by this Act, redesignated as Sections
2531	2226		48.258, 48.259, 48.260, 48.261, 48.262, 48.263, 48.264, 48.265,
2532	2227		48.266, 48.267, 48.268, 48.269, 48.270, 48.271, 48.272, 48.273,
2533	2228		48.274, and 48.275, Education Code, and amended to read as follows:
2534	2229		Sec. 48.258 [42.2521]. ADJUSTMENT FOR RAPID DECLINE IN
2535	2230		TAXABLE VALUE OF PROPERTY. (a) For purposes of Chapters [41 and]
2536	2231		46 and 49 and this chapter, and to the extent money specifically
2537	2232		authorized to be used under this section is available, the
2538	2233		commissioner shall adjust the taxable value of property in a school
2539	2234		district that, due to factors beyond the control of the board of
2540	2235		trustees, experiences a rapid decline in the tax base used in
2541	2236		calculating taxable values in excess of four percent of the tax base
2542	2237		used in the preceding year.
2543	2238		(b) To the extent that a sufficient amount of money is not
2544	2239		available to fund all adjustments under this section, the
2545	2240		commissioner shall reduce adjustments in the manner provided by
2546	2241		Section 48.266(f) [42.253(h)] so that the total amount of
2547	2242		adjustments equals the amount of money available to fund the
2548	2243		adjustments.
2549	2244		(c) A decision of the commissioner under this section is
2550	2245		final and may not be appealed.
2551	2246		Sec. 48.259 [42.2522]. ADJUSTMENT FOR OPTIONAL HOMESTEAD
2552	2247		EXEMPTION. (a) In any school year, the commissioner may not
2553	2248		provide funding under this chapter or Chapter 46 based on a school
2554	2249		district's taxable value of property computed in accordance with
2555	2250		Section 403.302(d)(2), Government Code, unless:
2556	2251		(1) funds are specifically appropriated for purposes
2557	2252		of this section; or
2558	2253		(2) the commissioner determines that the total amount
2559	2254		of state funds appropriated for purposes of the Foundation School
2560	2255		Program for the school year exceeds the amount of state funds
2561	2256		distributed to school districts in accordance with Section 48.266
2562	2257		[42.253] based on the taxable values of property in school
2563	2258		districts computed in accordance with Section 403.302(d),
2564	2259		Government Code, without any deduction for residence homestead
2565	2260		exemptions granted under Section 11.13(n), Tax Code.
2566	2261		(b) In making a determination under Subsection (a)(2), the
2567	2262		commissioner shall:
2568	2263		(1) notwithstanding Section 48.266(b) [42.253(b)],
2569	2264		reduce the entitlement under this chapter of a school district
2570	2265		whose final taxable value of property is higher than the estimate
2571	2266		under Section 48.269 [42.254] and make payments to school districts
2572	2267		accordingly; and
2573	2268		(2) give priority to school districts that, due to
2574	2269		factors beyond the control of the board of trustees, experience a
2575	2270		rapid decline in the tax base used in calculating taxable values in
2576	2271		excess of four percent of the tax base used in the preceding year.
2577	2272		(c) In the first year of a state fiscal biennium, before
2578	2273		providing funding as provided by Subsection (a)(2), the
2579	2274		commissioner shall ensure that sufficient appropriated funds for
2580	2275		purposes of the Foundation School Program are available for the
2581	2276		second year of the biennium, including funds to be used for purposes
2582	2277		of Section 48.258 [42.2521].
2583	2278		(d) If the commissioner determines that the amount of funds
2584	2279		available under Subsection (a)(1) or (2) does not at least equal the
2585	2280		total amount of state funding to which districts would be entitled
2586	2281		if state funding under this chapter were based on the taxable values
2587	2282		of property in school districts computed in accordance with Section
2588	2283		403.302(d)(2), Government Code, the commissioner may, to the extent
2589	2284		necessary, provide state funding based on a uniform lesser fraction
2590	2285		of the deduction under Section 403.302(d)(2), Government Code.
2591	2286		(e) The commissioner shall notify school districts as soon
2592	2287		as practicable as to the availability of funds under this section.
2593		-	For purposes of computing a voter-approval [rollback] tax rate
2594		-	under Section 26.08, Tax Code, a district shall adjust the
2595		-	district's tax rate limit to reflect assistance received under this
2596		-	section.
	2288	+	For purposes of computing a rollback tax rate under Section 26.08,
	2289	+	Tax Code, a district shall adjust the district's tax rate limit to
	2290	+	reflect assistance received under this section.
2597	2291		Sec. 48.260 [42.2523]. ADJUSTMENT FOR PROPERTY VALUE
2598	2292		AFFECTED BY STATE OF DISASTER. (a) For purposes of Chapters [41
2599	2293		and] 46 and 49 and this chapter, the commissioner shall adjust the
2600	2294		taxable value of property of a school district all or part of which
2601	2295		is located in an area declared a disaster area by the governor under
2602	2296		Chapter 418, Government Code, as necessary to ensure that the
2603	2297		district receives funding based as soon as possible on property
2604	2298		values as affected by the disaster.
2605	2299		(b) The commissioner may fund adjustments under this
2606	2300		section using funds specifically appropriated for the purpose or
2607	2301		other funds available to the commissioner for that purpose.
2608	2302		(c) [(d)] A decision of the commissioner under this section
2609	2303		is final and may not be appealed.
2610	2304		Sec. 48.261 [42.2524]. REIMBURSEMENT FOR DISASTER
2611	2305		REMEDIATION COSTS. (a) This section applies only to a school
2612	2306		district all or part of which is located in an area declared a
2613	2307		disaster area by the governor under Chapter 418, Government Code,
2614	2308		and that incurs disaster remediation costs as a result of the
2615	2309		disaster.
2616	2310		(b) During the two-year period following the date of the
2617	2311		governor's initial proclamation or executive order declaring a
2618	2312		state of disaster, a district may apply to the commissioner for
2619	2313		reimbursement of disaster remediation costs that the district pays
2620	2314		during that period and does not anticipate recovering through
2621	2315		insurance proceeds, federal disaster relief payments, or another
2622	2316		similar source of reimbursement.
2623	2317		(c) The commissioner may provide reimbursement under this
2624	2318		section only if funds are available for that purpose from [as
2625	2319		follows]:
2626	2320		(1) [reimbursement for a school district not required
2627	2321		to take action under Chapter 41 may be provided from:
2628	2322		[(A)] amounts appropriated for that purpose,
2629	2323		including amounts appropriated for school [those] districts for
2630	2324		that purpose to the disaster contingency fund established under
2631	2325		Section 418.073, Government Code; or
2632	2326		(2) [(B)] Foundation School Program funds available
2633	2327		for that purpose, based on a determination by the commissioner that
2634	2328		the amount appropriated for the Foundation School Program,
2635	2329		including the facilities component as provided by Chapter 46,
2636	2330		exceeds the amount to which districts are entitled under this
2637	2331		chapter and Chapter 46[; and
2638	2332		[(2) reimbursement for a school district required to
2639	2333		take action under Chapter 41 may be provided from funds described by
2640	2334		Subdivision (1)(B) if funds remain available after fully
2641	2335		reimbursing each school district described by Subdivision (1) for
2642	2336		its disaster remediation costs].
2643	2337		(d) [If the amount of money available for purposes of
2644	2338		reimbursing school districts not required to take action under
2645	2339		Chapter 41 is not sufficient to fully reimburse each district's
2646	2340		disaster remediation costs, the commissioner shall reduce the
2647	2341		amount of assistance provided to each of those districts
2648	2342		proportionately. If the amount of money available for purposes of
2649	2343		reimbursing school districts required to take action under Chapter
2650	2344		41 is not sufficient to fully reimburse each district's disaster
2651	2345		remediation costs, the commissioner shall reduce the amount of
2652	2346		assistance provided to each of those districts proportionately.
2653	2347		[(e)] A district seeking reimbursement under this section
2654	2348		must provide the commissioner with adequate documentation of the
2655	2349		costs for which the district seeks reimbursement.
2656	2350		(e) [(f) A district required to take action under Chapter
2657	2351		41:
2658	2352		[(1) may, at its discretion, receive assistance
2659	2353		provided under this section either as a payment of state aid under
2660	2354		this chapter or as a reduction in the total amount required to be
2661	2355		paid by the district for attendance credits under Section 41.093;
2662	2356		and
2663	2357		[(2) may not obtain reimbursement under this section
2664	2358		for the payment of any disaster remediation costs that resulted in a
2665	2359		reduction under Section 41.0931 of the district's cost of
2666	2360		attendance credits.
2667	2361		[(h)] The commissioner shall adopt rules necessary to
2668		-	implement this section, including rules:
2669		-	(1) defining "disaster remediation costs" for
2670		-	purposes of this section, which must include the cost to repair or
2671		-	replace vehicles or computers damaged in the disaster; and
2672		-	(2) specifying the type of documentation required
2673		-	under Subsection (d) [(e)].
	2362	+	implement this section, including rules defining "disaster
	2363	+	remediation costs" for purposes of this section and specifying the
	2364	+	type of documentation required under Subsection (d) [(e)].
2674	2365		(f) [(i)] Notwithstanding any other provision of this
2675	2366		section, the commissioner may permit a district to use amounts
2676	2367		provided to a district under this section to pay the costs of
2677	2368		replacing a facility instead of repairing the facility. The
2678	2369		commissioner shall ensure that a district that elects to replace a
2679	2370		facility does not receive an amount under this section that exceeds
2680	2371		the lesser of:
2681	2372		(1) the amount that would be provided to the district
2682	2373		if the facility were repaired; or
2683	2374		(2) the amount necessary to replace the facility.
2684	2375		(g) [(j)] This section does not require the commissioner to
2685	2376		provide any requested reimbursement. A decision of the
2686	2377		commissioner regarding reimbursement is final and may not be
2687	2378		appealed.
2688	2379		Sec. 48.262 [42.2525]. ADJUSTMENTS FOR CERTAIN DISTRICTS
2689	2380		RECEIVING FEDERAL IMPACT AID. The commissioner is granted the
2690	2381		authority to ensure that school districts receiving federal impact
2691	2382		aid due to the presence of a military installation or significant
2692	2383		concentrations of military students do not receive more than an
2693	2384		eight percent reduction should the federal government reduce
2694	2385		appropriations to those schools.
2695	2386		Sec. 48.263 [42.2526]. ADJUSTMENT FOR DISTRICT OPERATING
2696	2387		PILOT PROGRAM. (a) This section applies only to a school district
2697	2388		operating a pilot program authorized by Section 28.0255.
2698	2389		(b) Beginning with the first school year that follows the
2699	2390		first school year in which students receive high school diplomas
2700	2391		under the pilot program authorized by Section 28.0255 and
2701	2392		continuing for every subsequent school year that the district
2702	2393		operates the pilot program, the commissioner shall provide funding
2703	2394		for the district's prekindergarten program under Section 29.153 on
2704	2395		a full-day basis for a number of prekindergarten students equal to
2705	2396		twice the number of students who received a high school diploma
2706	2397		under the pilot program authorized by Section 28.0255 during the
2707	2398		preceding school year.
2708	2399		(c) This section expires September 1, 2023.
2709	2400		Sec. 48.264 [42.2527]. ADJUSTMENT FOR CERTAIN DISTRICTS
2710	2401		WITH EARLY HIGH SCHOOL GRADUATION PROGRAMS. (a) As a pilot program
2711	2402		to enable the state to evaluate the benefit of providing additional
2712	2403		funding at the prekindergarten level for low-income students, the
2713	2404		commissioner shall provide prekindergarten funding in accordance
2714	2405		with this section to a school district located in a county that
2715	2406		borders the United Mexican States and the Gulf of Mexico.
2716	2407		(b) The commissioner shall provide funding for a school
2717	2408		district's prekindergarten program on a half-day basis for a number
2718	2409		of low-income prekindergarten students equal to twice the number of
2719	2410		students who received, as a result of participation in an early high
2720	2411		school graduation program operated by the district, a high school
2721	2412		diploma from the district during the preceding school year after
2722	2413		three years of secondary school attendance.
2723	2414		(c) The commissioner may adopt rules necessary to implement
2724	2415		this section.
2725	2416		(d) This section expires September 1, 2023.
2726	2417		Sec. 48.265 [42.2528]. EXCESS FUNDS FOR VIDEO SURVEILLANCE
2727	2418		OF SPECIAL EDUCATION SETTINGS. (a) Notwithstanding any other
2728	2419		provision of law, if the commissioner determines that the amount
2729	2420		appropriated for the purposes of the Foundation School Program
2730	2421		exceeds the amount to which school districts are entitled under
2731	2422		this chapter, the commissioner by rule shall establish a grant
2732	2423		program through which excess funds are awarded as grants for the
2733	2424		purchase of video equipment, or for the reimbursement of costs for
2734	2425		previously purchased video equipment, used for monitoring special
2735	2426		education classrooms or other special education settings required
2736	2427		under Section 29.022.
2737	2428		(b) In awarding grants under this section, the commissioner
2738	2429		shall give highest priority to districts with maintenance and
2739	2430		operations tax rates at the greatest rates permitted by law. The
2740	2431		commissioner shall also give priority to:
2741	2432		(1) districts with maintenance and operations tax
2742	2433		rates at least equal to the state maximum compressed tax rate, as
2743	2434		defined by Section 48.051(a) [42.101(a)], and lowest amounts of
2744	2435		maintenance and operations tax revenue per weighted student; and
2745	2436		(2) districts with debt service tax rates near or
2746	2437		equal to the greatest rates permitted by law.
2747	2438		(c) The commissioner may adopt rules to implement and
2748	2439		administer this section.
2749	2440		Sec. 48.266 [42.253]. DISTRIBUTION OF FOUNDATION SCHOOL
2750	2441		FUND. (a) For each school year the commissioner shall determine:
2751	2442		(1) the amount of money to which a school district is
2752	2443		entitled under Subchapters B, [and] C, and D;
2753	2444		(2) the amount of money to which a school district is
2754	2445		entitled under Subchapter E [F];
2755	2446		(3) the amount of money allocated to the district from
2756	2447		the available school fund;
2757	2448		(4) the amount of each district's tier one local share
2758	2449		under Section 48.256 [42.252]; and
2759	2450		(5) the amount of each district's tier two local share
2760	2451		under Section 48.202 for:
2761	2452		(A) the district's maintenance and operations
2762	2453		tax effort described by Section 48.202(a-1)(1); and
2763	2454		(B) the district's maintenance and operations
2764	2455		tax effort described by Section 48.202(a-1)(2) [42.302].
2765	2456		(b) Except as provided by this subsection, the commissioner
2766	2457		shall base the determinations under Subsection (a) on the estimates
2767	2458		provided to the legislature under Section 48.269 [42.254], or, if
2768	2459		the General Appropriations Act provides estimates for that purpose,
2769	2460		on the estimates provided under that Act, for each school district
2770	2461		for each school year. The commissioner shall reduce the
2771	2462		entitlement of each district that has a final taxable value of
2772	2463		property for the second year of a state fiscal biennium that is
2773	2464		higher than the estimate under Section 48.269 [42.254] or the
2774	2465		General Appropriations Act, as applicable. A reduction under this
2775	2466		subsection may not reduce the district's entitlement below the
2776	2467		amount to which it is entitled at its actual taxable value of
2777	2468		property.
2778	2469		(c) Each school district is entitled to an amount equal to
2779	2470		the difference for that district between the sum of Subsections
2780	2471		(a)(1) and (a)(2) and the sum of Subsections (a)(3), (a)(4), and
2781	2472		(a)(5).
2782	2473		(d) The commissioner shall approve warrants to each school
2783	2474		district equaling the amount of its entitlement except as provided
2784	2475		by this section. Warrants for all money expended according to this
2785	2476		chapter shall be approved and transmitted to treasurers or
2786	2477		depositories of school districts in the same manner that warrants
2787	2478		for state payments are transmitted. The total amount of the
2788	2479		warrants issued under this section may not exceed the total amount
2789	2480		appropriated for Foundation School Program purposes for that fiscal
2790	2481		year.
2791	2482		(e) [(g)] If a school district demonstrates to the
2792	2483		satisfaction of the commissioner that the estimate of the
2793	2484		district's tax rate, student enrollment, or taxable value of
2794	2485		property used in determining the amount of state funds to which the
2795	2486		district is entitled are so inaccurate as to result in undue
2796	2487		financial hardship to the district, the commissioner may adjust
2797	2488		funding to that district in that school year to the extent that
2798	2489		funds are available for that year.
2799	2490		(f) [(h)] If the amount appropriated for the Foundation
2800	2491		School Program for the second year of a state fiscal biennium is
2801	2492		less than the amount to which school districts and open-enrollment
2802	2493		charter schools are entitled for that year, the commissioner shall
2803	2494		certify the amount of the difference to the Legislative Budget
2804	2495		Board not later than January 1 of the second year of the state
2805	2496		fiscal biennium. The Legislative Budget Board shall propose to the
2806	2497		legislature that the certified amount be transferred to the
2807	2498		foundation school fund from the economic stabilization fund and
2808	2499		appropriated for the purpose of increases in allocations under this
2809	2500		subsection. If the legislature fails during the regular session to
2810	2501		enact the proposed transfer and appropriation and there are not
2811	2502		funds available under Subsection (h) [(j)], the commissioner shall
2812	2503		adjust the total amounts due to each school district and
2813	2504		open-enrollment charter school under this chapter and the total
2814	2505		amounts necessary for each school district to comply with the
2815	2506		requirements of Chapter 49 [41] by an amount determined by applying
2816	2507		to each district and school the same percentage adjustment to the
2817	2508		total amount of state and local revenue due to the district or
2818	2509		school under this chapter and Chapter 49 [41] so that the total
2819	2510		amount of the adjustment to all districts and schools results in an
2820	2511		amount equal to the total adjustment necessary. The following
2821	2512		fiscal year:
2822	2513		(1) a district's or school's entitlement under this
2823	2514		section is increased by an amount equal to the adjustment made
2824	2515		under this subsection; and
2825	2516		(2) the amount necessary for a district to comply with
2826	2517		the requirements of Chapter 49 [41] is reduced by an amount
2827	2518		necessary to ensure a district's full recovery of the adjustment
2828	2519		made under this subsection.
2829	2520		(g) [(i)] Not later than March 1 each year, the commissioner
2830	2521		shall determine the actual amount of state funds to which each
2831	2522		school district is entitled under the allocation formulas in this
2832	2523		chapter for the current school year and shall compare that amount
2833	2524		with the amount of the warrants issued to each district for that
2834	2525		year. If the amount of the warrants differs from the amount to
2835	2526		which a district is entitled because of variations in the
2836	2527		district's tax rate, student enrollment, or taxable value of
2837	2528		property, the commissioner shall adjust the district's entitlement
2838	2529		for the next fiscal year accordingly.
2839	2530		(h) [(j)] The legislature may appropriate funds necessary
2840	2531		for increases under Subsection (g) [(i)] from funds that the
2841	2532		comptroller, at any time during the fiscal year, finds are
2842	2533		available.
2843	2534		(i) [(k)] The commissioner shall compute for each school
2844	2535		district the total amount by which the district's allocation of
2845	2536		state funds is increased or reduced under Subsection (g) [(i)] and
2846	2537		shall certify that amount to the district.
2847	2538		Sec. 48.267 [42.2531]. ADJUSTMENT BY COMMISSIONER. (a)
2848	2539		The commissioner may make adjustments to amounts due to a school
2849	2540		district under this chapter or Chapter 46, or to amounts necessary
2850	2541		for a district to comply with the requirements of Chapter 49 [41],
2851	2542		as provided by this section.
2852	2543		(b) A school district that has a major taxpayer, as
2853	2544		determined by the commissioner, that because of a protest of the
2854	2545		valuation of the taxpayer's property fails to pay all or a portion
2855	2546		of the ad valorem taxes due to the district may apply to the
2856	2547		commissioner to have the district's taxable value of property or ad
2857	2548		valorem tax collections adjusted for purposes of this chapter or
2858	2549		Chapter [41 or] 46 or 49. The commissioner may make the adjustment
2859	2550		only to the extent the commissioner determines that making the
2860	2551		adjustment will not:
2861	2552		(1) in the fiscal year in which the adjustment is made,
2862	2553		cause the amount to which school districts are entitled under this
2863	2554		chapter to exceed the amount appropriated for purposes of the
2864	2555		Foundation School Program for that year; and
2865	2556		(2) if the adjustment is made in the first year of a
2866	2557		state fiscal biennium, cause the amount to which school districts
2867	2558		are entitled under this chapter for the second year of the biennium
2868	2559		to exceed the amount appropriated for purposes of the Foundation
2869	2560		School Program for that year.
2870	2561		(c) The commissioner shall recover the benefit of any
2871	2562		adjustment made under this section by making offsetting adjustments
2872	2563		in the school district's taxable value of property or ad valorem tax
2873	2564		collections for purposes of this chapter or Chapter [41 or] 46 or 49
2874	2565		on a final determination of the taxable value of property that was
2875	2566		the basis of the original adjustment, or in the second school year
2876	2567		following the year in which the adjustment is made, whichever is
2877	2568		earlier.
2878	2569		(d) This section does not require the commissioner to make
2879	2570		any requested adjustment. A determination by the commissioner
2880	2571		under this section is final and may not be appealed.
2881	2572		Sec. 48.268 [42.2532]. ADJUSTMENT FOR RESOLUTION OF
2882	2573		DISPUTE OR ERROR RESULTING IN TAXATION OF SAME PROPERTY BY MULTIPLE
2883	2574		SCHOOL DISTRICTS. The commissioner shall adjust the amounts due to
2884	2575		a school district under this chapter and Chapter 46 as necessary to
2885	2576		account for the resolution of a dispute or error involving the
2886	2577		district and another district by an agreement between the districts
2887	2578		entered into under Section 31.112(c), Tax Code, or by a final order
2888	2579		of the supreme court entered under Section 72.010, Local Government
2889	2580		Code.
2890	2581		Sec. 48.269 [42.254]. ESTIMATES REQUIRED. (a) Not later
2891	2582		than October 1 of each even-numbered year:
2892	2583		(1) the agency shall submit to the legislature an
2893	2584		estimate of the tax rate and student enrollment of each school
2894	2585		district for the following biennium; and
2895	2586		(2) the comptroller shall submit to the legislature an
2896	2587		estimate of the total taxable value of all property in the state as
2897	2588		determined under Subchapter M, Chapter 403, Government Code, for
2898	2589		the following biennium.
2899	2590		(b) The agency and the comptroller shall update the
2900	2591		information provided to the legislature under Subsection (a) not
2901	2592		later than March 1 of each odd-numbered year.
2902	2593		Sec. 48.270 [42.255]. FALSIFICATION OF RECORDS; REPORT.
2903	2594		When, in the opinion of the agency's director of school audits,
2904	2595		audits or reviews of accounting, enrollment, or other records of a
2905	2596		school district reveal deliberate falsification of the records, or
2906	2597		violation of the provisions of this chapter, through which the
2907	2598		district's share of state funds allocated under the authority of
2908	2599		this chapter would be, or has been, illegally increased, the
2909	2600		director shall promptly and fully report the fact to the State Board
2910	2601		of Education, the state auditor, and the appropriate county
2911	2602		attorney, district attorney, or criminal district attorney.
2912	2603		Sec. 48.271 [42.257]. EFFECT OF APPRAISAL APPEAL. (a) If
2913	2604		the final determination of an appeal under Chapter 42, Tax Code,
2914	2605		results in a reduction in the taxable value of property that exceeds
2915	2606		five percent of the total taxable value of property in the school
2916	2607		district for the same tax year determined under Subchapter M,
2917	2608		Chapter 403, Government Code, the commissioner shall request the
2918	2609		comptroller to adjust its taxable property value findings for that
2919	2610		year consistent with the final determination of the appraisal
2920	2611		appeal.
2921	2612		(b) If the district would have received a greater amount
2922	2613		from the foundation school fund for the applicable school year
2923	2614		using the adjusted value, the commissioner shall add the difference
2924	2615		to subsequent distributions to the district from the foundation
2925	2616		school fund. An adjustment does not affect the local fund
2926	2617		assignment of any other district.
2927		-	(c) In addition to the funding provided under Subsection
2928		-	(b), a school district is entitled to reimbursement for the amount
2929		-	of interest included in a refund made by the district under Section
2930		-	42.43, Tax Code, in the state fiscal year ending August 31, 2018, or
2931		-	August 31, 2019. This subsection expires September 1, 2021.
2932	2618		Sec. 48.272 [42.258]. RECOVERY OF OVERALLOCATED FUNDS.
2933	2619		(a) If a school district has received an overallocation of state
2934	2620		funds, the agency shall, by withholding from subsequent allocations
2935	2621		of state funds for the current or subsequent school year or by
2936	2622		requesting and obtaining a refund, recover from the district an
2937	2623		amount equal to the overallocation.
2938	2624		(b) [(a-1)] Notwithstanding Subsection (a), the agency may
2939	2625		recover an overallocation of state funds over a period not to exceed
2940	2626		the subsequent five school years if the commissioner determines
2941	2627		that the overallocation was the result of exceptional circumstances
2942	2628		reasonably caused by statutory changes to Chapter [41 or] 46 or 49
2943	2629		or this chapter and related reporting requirements.
2944	2630		(c) [(b)] If a district fails to comply with a request for a
2945	2631		refund under Subsection (a), the agency shall certify to the
2946	2632		comptroller that the amount constitutes a debt for purposes of
2947	2633		Section 403.055, Government Code. The agency shall provide to the
2948	2634		comptroller the amount of the overallocation and any other
2949	2635		information required by the comptroller. The comptroller may
2950	2636		certify the amount of the debt to the attorney general for
2951	2637		collection.
2952	2638		(d) [(c)] Any amounts recovered under this section shall be
2953	2639		deposited in the foundation school fund.
2954		-	(e) Subject to Subsection (f), the agency may review a
2955		-	school district as necessary to determine if the district qualifies
2956		-	for each allotment received by the district under this chapter. If
2957		-	the agency determines that a school district received an allotment
2958		-	to which the district was not entitled, the agency may establish a
2959		-	corrective action plan or withhold the applicable amount of funding
2960		-	from the district.
2961		-	(f) The agency may not review school district expenditures
2962		-	that occurred seven or more years before the review.
	2640	+	(e) The agency may review a school district as necessary to
	2641	+	determine if the district qualifies for each allotment received by
	2642	+	the district under this chapter. If the agency determines that a
	2643	+	school district received an allotment to which the district was not
	2644	+	entitled, the agency may establish a corrective action plan or
	2645	+	withhold the applicable amount of funding from the district.
2963	2646		Sec. 48.273 [42.259]. FOUNDATION SCHOOL FUND TRANSFERS.
2964	2647		(a) In this section:
2965	2648		(1) "Category 1 school district" means a school
2966	2649		district having a wealth per student of less than one-half of the
2967	2650		statewide average wealth per student.
2968	2651		(2) "Category 2 school district" means a school
2969	2652		district having a wealth per student of at least one-half of the
2970	2653		statewide average wealth per student but not more than the
2971	2654		statewide average wealth per student.
2972	2655		(3) "Category 3 school district" means a school
2973	2656		district having a wealth per student of more than the statewide
2974	2657		average wealth per student.
2975	2658		(4) "Wealth per student" means the taxable property
2976	2659		values reported by the comptroller to the commissioner under
2977	2660		Section 48.256 [42.252] divided by the number of students in
2978	2661		average daily attendance.
2979	2662		(b) Payments from the foundation school fund to each
2980	2663		category 1 school district shall be made as follows:
2981	2664		(1) 15 percent of the yearly entitlement of the
2982	2665		district shall be paid in an installment to be made on or before the
2983	2666		25th day of September of a fiscal year;
2984	2667		(2) 80 percent of the yearly entitlement of the
2985	2668		district shall be paid in eight equal installments to be made on or
2986	2669		before the 25th day of October, November, December, January, March,
2987	2670		May, June, and July; and
2988	2671		(3) five percent of the yearly entitlement of the
2989	2672		district shall be paid in an installment to be made on or before the
2990	2673		25th day of February.
2991	2674		(c) Payments from the foundation school fund to each
2992	2675		category 2 school district shall be made as follows:
2993	2676		(1) 22 percent of the yearly entitlement of the
2994	2677		district shall be paid in an installment to be made on or before the
2995	2678		25th day of September of a fiscal year;
2996	2679		(2) 18 percent of the yearly entitlement of the
2997	2680		district shall be paid in an installment to be made on or before the
2998	2681		25th day of October;
2999	2682		(3) 9.5 percent of the yearly entitlement of the
3000	2683		district shall be paid in an installment to be made on or before the
3001	2684		25th day of November;
3002	2685		(4) 7.5 percent of the yearly entitlement of the
3003	2686		district shall be paid in an installment to be made on or before the
3004	2687		25th day of April;
3005	2688		(5) five percent of the yearly entitlement of the
3006	2689		district shall be paid in an installment to be made on or before the
3007	2690		25th day of May;
3008	2691		(6) 10 percent of the yearly entitlement of the
3009	2692		district shall be paid in an installment to be made on or before the
3010	2693		25th day of June;
3011	2694		(7) 13 percent of the yearly entitlement of the
3012	2695		district shall be paid in an installment to be made on or before the
3013	2696		25th day of July; and
3014	2697		(8) 15 percent of the yearly entitlement of the
3015	2698		district shall be paid in an installment to be made on or before the
3016	2699		25th day of August.
3017	2700		(d) Payments from the foundation school fund to each
3018	2701		category 3 school district shall be made as follows:
3019	2702		(1) 45 percent of the yearly entitlement of the
3020	2703		district shall be paid in an installment to be made on or before the
3021	2704		25th day of September of a fiscal year;
3022	2705		(2) 35 percent of the yearly entitlement of the
3023	2706		district shall be paid in an installment to be made on or before the
3024	2707		25th day of October; and
3025	2708		(3) 20 percent of the yearly entitlement of the
3026	2709		district shall be paid in an installment to be made on or before the
3027	2710		25th day of August.
3028	2711		(e) The amount of any installment required by this section
3029	2712		may be modified to provide a school district with the proper amount
3030	2713		to which the district may be entitled by law and to correct errors
3031	2714		in the allocation or distribution of funds. If an installment under
3032	2715		this section is required to be equal to other installments, the
3033	2716		amount of other installments may be adjusted to provide for that
3034	2717		equality. A payment under this section is not invalid because it is
3035	2718		not equal to other installments.
3036	2719		(f) Previously unpaid additional funds from prior fiscal
3037	2720		years owed to a district shall be paid to the district together with
3038	2721		the September payment of the current fiscal year entitlement.
3039	2722		(g) The commissioner shall make all annual Foundation
3040	2723		School Program payments under this section for purposes described
3041	2724		by Sections 45.252(a)(1) and (2) before the deadline established
3042	2725		under Section 45.263(b) for payment of debt service on
3043	2726		bonds. Notwithstanding any other provision of this section, the
3044	2727		commissioner may make Foundation School Program payments under this
3045	2728		section after the deadline established under Section 45.263(b) only
3046	2729		if the commissioner has not received notice under Section 45.258
3047	2730		concerning a district's failure or inability to pay matured
3048	2731		principal or interest on bonds.
3049	2732		Sec. 48.274 [42.2591]. FOUNDATION SCHOOL FUND TRANSFERS
3050	2733		TO CERTAIN CHARTER SCHOOLS. (a) On the request of an
3051	2734		open-enrollment charter school, the commissioner shall compare the
3052	2735		student enrollment of the open-enrollment charter school for the
3053	2736		current school year to the student enrollment of the school during
3054	2737		the preceding school year. If the number of students enrolled at
3055	2738		the open-enrollment charter school for the current school year has
3056	2739		increased by 10 percent or more from the number of students enrolled
3057	2740		during the preceding school year, the open-enrollment charter
3058	2741		school may request that payments from the foundation school fund to
3059	2742		the school for the following school year and each subsequent school
3060	2743		year, subject to Subsection (b), be made according to the schedule
3061	2744		provided under Subsection (c).
3062	2745		(b) An open-enrollment charter school that qualifies to
3063	2746		receive funding as provided by this section is entitled to receive
3064	2747		funding in that manner for three school years. On the expiration
3065	2748		of that period, the commissioner shall determine the eligibility of
3066	2749		the open-enrollment charter school to continue receiving payments
3067	2750		from the foundation school fund under this section for an
3068	2751		additional three school years. Subsequently, the open-enrollment
3069	2752		charter school must reestablish eligibility in the manner provided
3070	2753		by this subsection every three school years.
3071	2754		(c) Payments from the foundation school fund to an
3072	2755		open-enrollment charter school under this section shall be made as
3073	2756		follows:
3074	2757		(1) 22 percent of the yearly entitlement of the school
3075	2758		shall be paid in an installment to be made on or before the 25th day
3076	2759		of September of a fiscal year;
3077	2760		(2) 18 percent of the yearly entitlement of the school
3078	2761		shall be paid in an installment to be made on or before the 25th day
3079	2762		of October;
3080	2763		(3) 9.5 percent of the yearly entitlement of the
3081	2764		school shall be paid in an installment to be made on or before the
3082	2765		25th day of November;
3083	2766		(4) four percent of the yearly entitlement of the
3084	2767		school shall be paid in an installment to be made on or before the
3085	2768		25th day of December;
3086	2769		(5) four percent of the yearly entitlement of the
3087	2770		school shall be paid in an installment to be made on or before the
3088	2771		25th day of January;
3089	2772		(6) four percent of the yearly entitlement of the
3090	2773		school shall be paid in an installment to be made on or before the
3091	2774		25th day of February;
3092	2775		(7) four percent of the yearly entitlement of the
3093	2776		school shall be paid in an installment to be made on or before the
3094	2777		25th day of March;
3095	2778		(8) 7.5 percent of the yearly entitlement of the
3096	2779		school shall be paid in an installment to be made on or before the
3097	2780		25th day of April;
3098	2781		(9) five percent of the yearly entitlement of the
3099	2782		school shall be paid in an installment to be made on or before the
3100	2783		25th day of May;
3101	2784		(10) seven percent of the yearly entitlement of the
3102	2785		school shall be paid in an installment to be made on or before the
3103	2786		25th day of June;
3104	2787		(11) seven percent of the yearly entitlement of the
3105	2788		school shall be paid in an installment to be made on or before the
3106	2789		25th day of July; and
3107	2790		(12) eight percent of the yearly entitlement of the
3108	2791		school shall be paid in an installment to be made on or before the
3109	2792		25th day of August.
3110	2793		(d) The amount of any installment required by this section
3111	2794		may be modified to provide an open-enrollment charter school with
3112	2795		the proper amount to which the school may be entitled by law and to
3113	2796		correct errors in the allocation or distribution of funds.
3114	2797		(e) Previously unpaid additional funds from prior fiscal
3115	2798		years owed to an open-enrollment charter school shall be paid to the
3116	2799		school together with the September payment of the current fiscal
3117	2800		year entitlement.
3118	2801		Sec. 48.275 [42.260]. USE OF CERTAIN FUNDS. (a) In this
3119	2802		section, "participating charter school" means an open-enrollment
3120	2803		charter school that participates in the uniform group coverage
3121	2804		program established under Chapter 1579, Insurance Code.
3122	2805		(b) The amount of additional funds to which each school
3123	2806		district or participating charter school is entitled due to the
3124	2807		increases in formula funding made by H.B. No. 3343, Acts of the 77th
3125	2808		Legislature, Regular Session, 2001, and any subsequent legislation
3126	2809		amending the provisions amended by that Act that increase formula
3127	2810		funding under Chapter 49 [41] and this chapter to school districts
3128	2811		and charter schools is available for purposes of Subsection (c).
3129	2812		(c) Notwithstanding any other provision of this code, a
3130	2813		school district or participating charter school may use the sum of
3131	2814		the following amounts of funds only to pay contributions under a
3132	2815		group health coverage plan for district or school employees:
3133	2816		(1) the amount determined by multiplying the amount of
3134	2817		$900 or the amount specified in the General Appropriations Act for
3135	2818		that year for purposes of the state contribution under Section
3136	2819		1579.251, Insurance Code, by the number of district or school
3137	2820		employees who participate in a group health coverage plan provided
3138	2821		by or through the district or school; and
3139	2822		(2) the difference between the amount necessary for
3140	2823		the district or school to comply with Section 1581.052, Insurance
3141	2824		Code, for the school year and the amount the district or school is
3142	2825		required to use to provide health coverage under Section 1581.051,
3143	2826		Insurance Code, for that year.
3144	2827		(d) A determination by the commissioner under this section
3145	2828		is final and may not be appealed.
3146	2829		[(e) The commissioner may adopt rules to implement this
3147	2830		section.]
3148		-	SECTION 1.~~043~~. Subchapter F, Chapter 48, Education Code, as
3149		-	added by this Act, is amended by adding Sections 48.277, 48.278, ~~and~~
3150		-	48.279 to read as follows:
	2831	+	SECTION 1.041. Subchapter F, Chapter 48, Education Code, as
	2832	+	added by this Act, is amended by adding Sections 48.277, 48.278,
	2833	+	48.279, and 48.280 to read as follows:
3151	2834		Sec. 48.277. FORMULA TRANSITION GRANT. (a) A school
3152	2835		district or open-enrollment charter school is entitled to receive
3153	2836		an annual allotment for each student in average daily attendance in
3154	2837		the amount equal to the difference, if the difference is greater
3155	2838		than zero, that results from subtracting the total maintenance and
3156	2839		operations revenue per student in average daily attendance for the
3157	2840		current school year from the lesser of:
3158		-	(1) ~~103~~ percent of the district's or school's total
	2841	+	(1) 100 percent of the district's or school's total
3159	2842		maintenance and operations revenue per student in average daily
3160		-	attendance for the ~~2019-2020~~ school year ~~that the district or~~
3161		-	school would have received under former ~~Chapters 41 and 42, as those~~
3162		-	chapters existed on January 1, 2019; or
	2843	+	attendance for the applicable school year under Subsection (b)(1)
	2844	+	that the district or school would have received under former
	2845	+	Chapters 41 and 42, as those chapters existed on January 1, 2019; or
3163	2846		(2) 128 percent of the statewide average amount of
3164	2847		maintenance and operations revenue per student in average daily
3165		-	attendance that would have been provided for the ~~2019-2020~~ school
3166		-	year under former Chapters 41 and 42, as ~~those chapters existed on~~
3167		-	January 1, 2019.
	2848	+	attendance that would have been provided for the applicable school
	2849	+	year under Subsection (b)(1) under former Chapters 41 and 42, as
	2850	+	those chapters existed on January 1, 2019.
3168	2851		(b) For purposes of calculating maintenance and operations
3169	2852		revenue under Subsection (a), the commissioner shall:
3170	2853		(1) for purposes of Subsections (a)(1) and (2), use
3171	2854		the following applicable school year:
3172	2855		(A) in a school year ending in an even-numbered
3173	2856		year, the 2019-2020 school year; and
3174	2857		(B) in a school year ending in an odd-numbered
3175		-	year, the ~~2019-2020 or~~ 2020-2021 school year~~, whichever is greater~~;
	2858	+	year, the 2020-2021 school year;
3176	2859		(2) include all state and local funding, except for
3177	2860		any funding resulting from:
3178	2861		(A) reimbursement for disaster remediation costs
3179	2862		under former Sections 41.0931 and 42.2524;
3180	2863		(B) an adjustment for rapid decline in taxable
3181		-	value of property under former Section 42.2521; ~~and~~
	2864	+	value of property under former Section 42.2521;
3182	2865		(C) an adjustment for property value affected by
3183	2866		a state of disaster under former Section 42.2523;
	2867	+	(D) 50 percent of the third grade reading
	2868	+	outcomes bonus under Section 48.109;
	2869	+	(E) 50 percent of the college, career, or
	2870	+	military readiness outcomes bonus under Section 48.110;
	2871	+	(F) 50 percent of the teacher incentive allotment
	2872	+	under Section 48.112; and
	2873	+	(G) the classroom teacher and librarian
	2874	+	allotment under Section 48.280;
3184	2875		(3) adjust the calculation to reflect a reduction in
3185	2876		tax effort by a school district; and
3186	2877		(4) if a school district or open-enrollment charter
3187	2878		school receives a waiver relating to eligibility requirements for
3188	2879		the national free or reduced-price lunch program under 42 U.S.C.
3189	2880		Section 1751 et seq., use the numbers of educationally
3190	2881		disadvantaged students on which the district's or school's
3191	2882		entitlement to compensatory education funds was based for the
3192	2883		school year before the school year in which the district or school
3193	2884		received the waiver, adjusted for estimated enrollment growth.
3194		-	(c) A decision by the commissioner under this section is
3195		-	final and may not be appealed.
3196		-	(d) A school district or open-enrollment charter school is
	2885	+	(c) A school district or open-enrollment charter school is
3197	2886		not entitled to an allotment under Subsection (a) beginning with
3198	2887		the 2024-2025 school year.
3199		-	(d-1) Subject to Subsection (d-2), a school district or
3200		-	open-enrollment charter school is entitled to receive an annual
3201		-	allotment for each student in average daily attendance in the
3202		-	amount equal to the difference, if the difference is greater than
3203		-	zero, that results from subtracting the total maintenance and
3204		-	operations revenue per student in average daily attendance for the
3205		-	current school year from the total maintenance and operations
3206		-	revenue per student in average daily attendance that would have
3207		-	been available to the district or school under former Chapters 41
3208		-	and 42, as those chapters existed on January 1, 2019. For purposes
3209		-	of calculating a district's maintenance and operations revenue
3210		-	under this subsection, the commissioner shall:
3211		-	(1) apply Subsection (b); and
3212		-	(2) in calculating a district's maintenance and
3213		-	operations revenue under former Chapters 41 and 42, as those
3214		-	chapters existed on January 1, 2019, exclude any additional revenue
3215		-	the district would have received under former Sections 41.002(e)
3216		-	through (g), as those sections existed on January 1, 2019.
3217		-	(d-2) A school district or open-enrollment charter school
3218		-	may only receive an allotment under Subsection (a) or (d-1),
3219		-	whichever is greater, but not both.
3220		-	(d-3) Subsections (d-1) and (d-2) and this subsection
3221		-	expire September 1, 2021.
3222		-	(e) This section expires September 1, 2025.
	2888	+	(d) This section expires September 1, 2025.
3223	2889		Sec. 48.278. EQUALIZED WEALTH TRANSITION GRANT. (a)
3224	2890		Subject to Subsection (b), a school district is entitled to receive
3225	2891		an annual allotment in an amount equal to the amount of additional
3226	2892		revenue a school district received for the 2018-2019 school year
3227	2893		under former Sections 41.002(e) through (g), as those sections
3228	2894		existed on January 1, 2019.
3229	2895		(b) For purposes of calculating a district's allotment
3230	2896		under Subsection (a), the commissioner shall reduce the amount to
3231	2897		which a district is entitled under Subsection (a) by:
3232	2898		(1) for the 2020-2021 school year, 20 percent;
3233	2899		(2) for the 2021-2022 school year, 40 percent;
3234	2900		(3) for the 2022-2023 school year, 60 percent; and
3235	2901		(4) for the 2023-2024 school year, 80 percent.
3236	2902		(c) This section expires September 1, 2024.
3237	2903		Sec. 48.279. MAINTENANCE OF STATE FINANCIAL SUPPORT FOR
3238	2904		SPECIAL EDUCATION. (a) Funds appropriated for purposes of this
3239	2905		section or transferred in accordance with this section are state
3240	2906		funds for purposes of compliance with the requirements regarding
3241	2907		maintenance of state financial support for special education under
3242	2908		20 U.S.C. Section 1412(a)(18). The commissioner shall identify the
3243	2909		amount of funding described by this subsection and separate that
3244	2910		amount from other funding provided under this chapter.
3245	2911		(b) If the commissioner determines that the total amount of
3246	2912		funding for special education for a school year that ends during the
3247	2913		first state fiscal year of a state fiscal biennium is less than the
3248	2914		amount required to comply with requirements regarding maintenance
3249	2915		of state financial support under 20 U.S.C. Section 1412(a)(18), the
3250	2916		commissioner shall use funds appropriated for the Foundation School
3251	2917		Program for the second state fiscal year of that biennium to
3252	2918		increase funding for special education for the first state fiscal
3253	2919		year of that biennium in an amount necessary to ensure compliance
3254	2920		with that provision.
3255	2921		(c) If the commissioner determines that the total amount of
3256	2922		funding for special education for a school year that ends during the
3257	2923		second state fiscal year of a state fiscal biennium is less than the
3258	2924		amount required to comply with requirements regarding maintenance
3259	2925		of state financial support under 20 U.S.C. Section 1412(a)(18), the
3260	2926		commissioner shall submit to the legislature an estimate of the
3261	2927		amount of funding needed to comply with that provision for that
3262	2928		state fiscal year.
3263	2929		(d) If federal funds are withheld for a school year due to
3264	2930		noncompliance with requirements regarding maintenance of state
3265	2931		financial support under 20 U.S.C. Section 1412(a)(18), the
3266	2932		commissioner shall use for that school year an amount of funds
3267	2933		described by Subsection (a) equal to the amount of withheld funds in
3268	2934		the same manner and for the same purposes as the withheld funds
3269	2935		would have been provided.
3270	2936		(e) After the commissioner has replaced any withheld
3271	2937		federal funds as provided by Subsection (d), the commissioner shall
3272	2938		distribute the remaining amount, if any, of funds described by
3273	2939		Subsection (a) to proportionately increase funding for the special
3274	2940		education allotment under Section 48.102.
3275	2941		(f) In complying with Subsection (d), the commissioner may
3276	2942		implement any program necessary to ensure the use of funds in
3277	2943		accordance with that subsection.
3278		-	SECTION 1.044. Chapter 48, Education Code, as added by this
	2944	+	Sec. 48.280. CLASSROOM TEACHER AND LIBRARIAN ALLOTMENT.
	2945	+	(a) In this section:
	2946	+	(1) "A" is the classroom teacher and librarian
	2947	+	allotment to which a district is entitled under Subsection (b);
	2948	+	(2) "E" is the total number of classroom teachers and
	2949	+	full-time librarians employed by the district in the 2018-2019
	2950	+	school year;
	2951	+	(3) "CYADA" is the number of students in average daily
	2952	+	attendance in the district for the current school year; and
	2953	+	(4) "BYADA" is the number of students in average daily
	2954	+	attendance in the district for the 2018-2019 school year.
	2955	+	(b) Except as provided by Subsection (c), a school district
	2956	+	is entitled to receive an annual allotment in an amount equal to the
	2957	+	lesser of:
	2958	+	(1) A = (($5,000 X E X 1.108)/BYADA) X CYADA; or
	2959	+	(2) A = $5,000 X E X 1.108.
	2960	+	(c) For a school district or open-enrollment charter school
	2961	+	that provided social security coverage, as defined by Section
	2962	+	606.001, Government Code, for district or school employees for whom
	2963	+	the district or school receives funding under this section before
	2964	+	January 1, 2019, each reference to a value of 1.108 under Subsection
	2965	+	(b) is replaced with the value of 1.17.
	2966	+	(d) A school district or open-enrollment charter school
	2967	+	shall use the amount received under this section for classroom
	2968	+	teacher and full-time librarian salaries and benefits.
	2969	+	SECTION 1.042. Chapter 48, Education Code, as added by this
3279	2970		Act, is amended by adding Subchapter G, and a heading is added to
3280	2971		that subchapter to read as follows:
3281	2972		SUBCHAPTER G. MISCELLANEOUS PROVISIONS
3282		-	SECTION 1.~~045~~. Section 42.4101, Education Code, is
	2973	+	SECTION 1.043. Section 42.4101, Education Code, is
3283	2974		transferred to Subchapter G, Chapter 48, Education Code, as added
3284	2975		by this Act, redesignated as Section 48.301, Education Code, and
3285	2976		amended to read as follows:
3286	2977		Sec. 48.301 [42.4101]. ADDITIONAL ASSISTANCE FOR
3287	2978		DISTRICTS WITH STUDENTS USING PUBLIC EDUCATION GRANTS. (a) A
3288	2979		district is entitled to additional assistance under this section as
3289	2980		provided by Section 29.203(c).
3290	2981		(b) The amount of additional assistance under this section
3291	2982		is computed by subtracting the number of students residing in the
3292	2983		district and using public education grants to attend school in
3293	2984		another district for the year in which the assistance is granted
3294	2985		from the number of students using public education grants to attend
3295	2986		school in the district for that year and multiplying the difference
3296	2987		by $266.
3297	2988		[(c) If a district to which this section applies is entitled
3298	2989		to the maximum amount of assistance under Section 42.406, the
3299	2990		maximum is increased by the amount of additional assistance to
3300	2991		which the district is entitled under this section.]
3301		-	SECTION 1.046. Subchapter G, Chapter 48, Education Code, as
3302		-	added by this Act, is amended by adding Section 48.302 to read as
3303		-	follows:
3304		-	Sec. 48.302. SUBSIDY FOR HIGH SCHOOL EQUIVALENCY
3305		-	EXAMINATION FOR CERTAIN INDIVIDUALS. (a) In this section,
3306		-	"commission" means the Texas Workforce Commission.
3307		-	(b) The agency shall enter into a memorandum of
3308		-	understanding with the commission for the agency to transfer to the
3309		-	commission funds specifically appropriated to the agency for the
3310		-	commission to provide to an individual who is 21 years of age or
3311		-	older a subsidy in an amount equal to the cost of taking one high
3312		-	school equivalency examination administered under Section 7.111.
3313		-	(c) The commission shall adopt rules to implement the
3314		-	subsidy program described by Subsection (b), including rules
3315		-	regarding eligibility requirements.
3316		-	SECTION 1.047. Subtitle I, Title 2, Education Code, is
	2992	+	SECTION 1.044. Subtitle I, Title 2, Education Code, is
3317	2993		amended by adding Chapter 49, and a heading is added to that chapter
3318	2994		to read as follows:
3319	2995		CHAPTER 49. OPTIONS FOR LOCAL REVENUE LEVELS IN EXCESS OF
3320	2996		ENTITLEMENT
3321		-	SECTION 1.~~048~~. Chapter 49, Education Code, as added by this
	2997	+	SECTION 1.045. Chapter 49, Education Code, as added by this
3322	2998		Act, is amended by adding Subchapter A, and a heading is added to
3323	2999		that subchapter to read as follows:
3324	3000		SUBCHAPTER A. GENERAL PROVISIONS
3325		-	SECTION 1.~~049~~. Sections 41.001, 41.003, 41.0031, 41.004,
	3001	+	SECTION 1.046. Sections 41.001, 41.003, 41.0031, 41.004,
3326	3002		41.005, 41.006, 41.007, 41.008, 41.009, 41.010, 41.011, 41.012, and
3327	3003		41.013, Education Code, are transferred to Subchapter A, Chapter
3328	3004		49, Education Code, as added by this Act, redesignated as Sections
3329	3005		49.001, 49.002, 49.003, 49.004, 49.005, 49.006, 49.007, 49.008,
3330	3006		49.009, 49.010, 49.011, 49.012, and 49.013, Education Code, and
3331	3007		amended to read as follows:
3332	3008		Sec. 49.001 [41.001]. DEFINITIONS. In this chapter:
3333	3009		(1) "Local revenue [Equalized wealth] level in excess
3334	3010		of entitlement" means local revenue levels that exceed the levels
3335	3011		[the wealth per student] provided by Section 48.257 [41.002].
3336	3012		(2) ["Wealth per student" means the taxable value of
3337	3013		property, as determined under Subchapter M, Chapter 403, Government
3338	3014		Code, divided by the number of students in weighted average daily
3339	3015		attendance.
3340	3016		[(3)] "Weighted average daily attendance" has the
3341	3017		meaning assigned by Section 48.202 [42.302].
3342	3018		Sec. 49.002 [41.003]. OPTIONS TO REDUCE LOCAL REVENUE
3343	3019		[ACHIEVE EQUALIZED WEALTH] LEVEL. A district with a local revenue
3344	3020		level in excess of entitlement [wealth per student that exceeds the
3345	3021		equalized wealth level] may take any combination of the following
3346	3022		actions to reduce the district's revenue level [achieve the
3347	3023		equalized wealth level]:
3348	3024		(1) consolidation with another district as provided by
3349	3025		Subchapter B;
3350	3026		(2) detachment of territory as provided by Subchapter
3351	3027		C;
3352	3028		(3) purchase of average daily attendance credit as
3353	3029		provided by Subchapter D;
3354	3030		(4) education of nonresident students as provided by
3355	3031		Subchapter E; or
3356	3032		(5) tax base consolidation with another district as
3357	3033		provided by Subchapter F.
3358	3034		Sec. 49.003 [41.0031]. INCLUSION OF ATTENDANCE CREDIT
3359	3035		[CREDITS] AND NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.
3360	3036		In determining whether a school district has a local revenue
3361	3037		[wealth per student less than or equal to the equalized wealth]
3362	3038		level in excess of entitlement, the commissioner shall use:
3363	3039		(1) the district's final weighted average daily
3364	3040		attendance; and
3365	3041		(2) the amount [number] of attendance credit [credits]
3366	3042		a district purchases under Subchapter D or the number of
3367	3043		nonresident students a district educates under Subchapter E for a
3368	3044		school year.
3369	3045		Sec. 49.004 [41.004]. ANNUAL REVIEW OF LOCAL REVENUES
3370	3046		[PROPERTY WEALTH]. (a) Not later than July 15 of each year, using
3371		-	the ~~estimates [~~estimate] of enrollment and taxable property value
3372		-	~~under Section~~ 48.269 [42.254], the commissioner shall review the
3373		-	~~local revenue~~ level [wealth per student] of school districts in the
3374		-	~~state and~~ shall notify:
	3047	+	the estimate of enrollment and taxable property value under Section
	3048	+	48.269 [42.254], the commissioner shall review the local revenue
	3049	+	level [wealth per student] of school districts in the state and
	3050	+	shall notify:
3375	3051		(1) each district with a local revenue level in excess
3376	3052		of entitlement [wealth per student exceeding the equalized wealth
3377	3053		level];
3378	3054		(2) each district to which the commissioner proposes
3379	3055		to annex property detached from a district notified under
3380	3056		Subdivision (1), if necessary, under Subchapter G; and
3381	3057		(3) each district to which the commissioner proposes
3382	3058		to consolidate a district notified under Subdivision (1), if
3383	3059		necessary, under Subchapter H.
3384	3060		(b) If, before the dates provided by this subsection, a
3385	3061		district notified under Subsection (a)(1) has not successfully
3386	3062		exercised one or more options under Section 49.002 [41.003] that
3387	3063		reduce the district's local revenue level [wealth per student] to a
3388	3064		level equal to or less than the [equalized wealth] level
3389	3065		established under Section 48.257, the commissioner shall order the
3390	3066		detachment of property from that district as provided by Subchapter
3391	3067		G. If that detachment will not reduce the district's local revenue
3392	3068		level [wealth per student] to a level equal to or less than the
3393	3069		[equalized wealth] level established under Section 48.257, the
3394	3070		commissioner may not detach property under Subchapter G but shall
3395	3071		order the consolidation of the district with one or more other
3396	3072		districts as provided by Subchapter H. An agreement under Section
3397	3073		49.002(1) [41.003(1)] or (2) must be executed not later than
3398	3074		September 1 immediately following the notice under Subsection (a).
3399	3075		An election for an option under Section 49.002(3) [41.003(3)], (4),
3400	3076		or (5) must be ordered before September 1 immediately following the
3401	3077		notice under Subsection (a).
3402	3078		(c) A district notified under Subsection (a) may not adopt a
3403	3079		tax rate for the tax year in which the district receives the notice
3404	3080		until the commissioner certifies that the district has reduced the
3405	3081		district's local revenue level in excess of entitlement to the
3406	3082		[achieved the equalized wealth] level established under Section
3407	3083		48.257.
3408	3084		(d) A detachment and annexation or consolidation under this
3409	3085		chapter:
3410	3086		(1) is effective for Foundation School Program funding
3411	3087		purposes for the school year that begins in the calendar year in
3412	3088		which the detachment and annexation or consolidation is agreed to
3413	3089		or ordered; and
3414	3090		(2) applies to the ad valorem taxation of property
3415	3091		beginning with the tax year in which the agreement or order is
3416	3092		effective.
3417	3093		Sec. 49.005 [41.005]. COMPTROLLER AND APPRAISAL DISTRICT
3418	3094		COOPERATION. The chief appraiser of each appraisal district and
3419	3095		the comptroller shall cooperate with the commissioner and school
3420	3096		districts in implementing this chapter.
3421	3097		Sec. 49.006 [41.006]. RULES. (a) The commissioner may
3422	3098		adopt rules necessary for the implementation of this chapter. The
3423	3099		rules may provide for the commissioner to make necessary
3424	3100		adjustments to the provisions of Chapter 48 [42], including
3425	3101		providing for the commissioner to make an adjustment in the funding
3426	3102		element established by Section 48.202 [42.302], at the earliest
3427	3103		date practicable, to the amount the commissioner believes, taking
3428	3104		into consideration options exercised by school districts under this
3429	3105		chapter and estimates of student enrollments, will match
3430	3106		appropriation levels.
3431	3107		(b) As necessary for the effective and efficient
3432	3108		administration of this chapter, the commissioner may modify
3433	3109		effective dates and time periods for actions described by this
3434	3110		chapter.
3435	3111		Sec. 49.007 [41.007]. COMMISSIONER TO APPROVE SUBSEQUENT
3436	3112		BOUNDARY CHANGES. A school district that is involved in an action
3437	3113		under this chapter that results in boundary changes to the district
3438	3114		or in the consolidation of tax bases is subject to consolidation,
3439	3115		detachment, or annexation under Chapter 13 only if the commissioner
3440	3116		certifies that the change under Chapter 13 will not result in a
3441	3117		district with a local revenue [wealth per student that exceeds the
3442	3118		equalized wealth] level in excess of entitlement.
3443	3119		Sec. 49.008 [41.008]. HOMESTEAD EXEMPTIONS. (a) The
3444	3120		governing board of a school district that results from
3445	3121		consolidation under this chapter, including a consolidated taxing
3446	3122		district under Subchapter F, for the tax year in which the
3447	3123		consolidation occurs may determine whether to adopt a homestead
3448	3124		exemption provided by Section 11.13, Tax Code, and may set the
3449	3125		amount of the exemption, if adopted, at any time before the school
3450	3126		district adopts a tax rate for that tax year. This section applies
3451	3127		only to an exemption that the governing board of a school district
3452	3128		is authorized to adopt or change in amount under Section 11.13, Tax
3453	3129		Code.
3454	3130		(b) This section prevails over any inconsistent provision
3455	3131		of Section 11.13, Tax Code, or other law.
3456	3132		Sec. 49.009 [41.009]. TAX ABATEMENTS. (a) A tax abatement
3457	3133		agreement executed by a school district that is involved in
3458	3134		consolidation or in detachment and annexation of territory under
3459	3135		this chapter is not affected and applies to the taxation of the
3460	3136		property covered by the agreement as if executed by the district
3461	3137		within which the property is included.
3462	3138		(b) The commissioner shall determine the local revenue
3463	3139		[wealth per student] of a school district under this chapter as if
3464	3140		any tax abatement agreement executed by a school district on or
3465	3141		after May 31, 1993, had not been executed.
3466	3142		Sec. 49.010 [41.010]. TAX INCREMENT OBLIGATIONS. The
3467	3143		payment of tax increments under Chapter 311, Tax Code, is not
3468	3144		affected by the consolidation of territory or tax bases or by
3469	3145		annexation under this chapter. In each tax year a school district
3470	3146		paying a tax increment from taxes on property over which the
3471	3147		district has assumed taxing power is entitled to retain the same
3472	3148		percentage of the tax increment from that property that the
3473	3149		district in which the property was located before the consolidation
3474	3150		or annexation could have retained for the respective tax year.
3475	3151		Sec. 49.011 [41.011]. CONTINGENCY. (a) If any of the
3476	3152		options described by Section 49.002 [41.003] as applied to a school
3477	3153		district are held invalid by a final decision of a court of
3478	3154		competent jurisdiction, a school district is entitled to exercise
3479	3155		any of the remaining valid options in accordance with a schedule
3480	3156		approved by the commissioner.
3481	3157		(b) If a final order of a court of competent jurisdiction
3482	3158		should hold each of the options provided by Section 49.002 [41.003]
3483	3159		invalid, the commissioner shall act under Subchapter G or H to
3484	3160		reduce the local revenue [achieve the equalized wealth] level in
3485	3161		excess of entitlement only after notice and hearing is afforded to
3486	3162		each school district affected by the order. The commissioner shall
3487	3163		adopt a plan that least disrupts the affected school districts. If
3488	3164		because the exigency to adopt a plan prevents the commissioner from
3489	3165		giving a reasonable time for notice and hearing, the commissioner
3490	3166		shall timely give notice to and hold a hearing for the affected
3491	3167		school districts, but in no event less than 30 days from time of
3492	3168		notice to the date of hearing.
3493	3169		(c) If a final order of a court of competent jurisdiction
3494	3170		should hold an option provided by Section 49.002 [41.003] invalid
3495	3171		and order a refund to a district of any amounts paid by a district
3496	3172		choosing that option, the amount shall be refunded but held in
3497	3173		reserve and not expended by the district until released by order of
3498	3174		the commissioner. The commissioner shall order the release
3499	3175		immediately on the commissioner's determination that, through one
3500	3176		of the means provided by law, the district has reduced the
3501	3177		district's local revenue level in excess of entitlement to the
3502	3178		[achieved the equalized wealth] level established under Section
3503	3179		48.257. The amount released shall be deducted from any state aid
3504	3180		payable to the district according to a schedule adopted by the
3505	3181		commissioner.
3506	3182		Sec. 49.012 [41.012]. DATE OF ELECTIONS. An election under
3507	3183		this chapter for voter approval of an agreement entered by the board
3508	3184		of trustees shall be held on a Tuesday or Saturday not more than 45
3509	3185		days after the date of the agreement. Section 41.001, Election
3510	3186		Code, does not apply to the election.
3511	3187		Sec. 49.013 [41.013]. PROCEDURE. (a) Except as provided
3512	3188		by Subchapter G, a decision of the commissioner under this chapter
3513	3189		is appealable under Section 7.057.
3514	3190		(b) Any order of the commissioner issued under this chapter
3515	3191		shall be given immediate effect and may not be stayed or enjoined
3516	3192		pending any appeal.
3517	3193		(c) Chapter 2001, Government Code, does not apply to a
3518	3194		decision of the commissioner under this chapter.
3519	3195		(d) On the request of the commissioner, the secretary of
3520	3196		state shall publish any rules adopted under this chapter in the
3521	3197		Texas Register and the Texas Administrative Code.
3522		-	SECTION 1.~~050~~. Subchapter B, Chapter 41, Education Code, is
	3198	+	SECTION 1.047. Subchapter B, Chapter 41, Education Code, is
3523	3199		transferred to Chapter 49, Education Code, as added by this Act,
3524	3200		redesignated as Subchapter B, Chapter 49, Education Code, and
3525	3201		amended to read as follows:
3526	3202		SUBCHAPTER B. CONSOLIDATION BY AGREEMENT
3527	3203		Sec. 49.051 [41.031]. AGREEMENT. The governing boards of
3528	3204		any two or more school districts may consolidate the districts by
3529	3205		agreement in accordance with this subchapter to establish a
3530	3206		consolidated district with a local revenue level [wealth per
3531	3207		student] equal to or less than the [equalized wealth] level
3532	3208		established under Section 48.257. The agreement is not effective
3533	3209		unless the commissioner certifies that the consolidated district,
3534	3210		as a result of actions taken under this chapter, will have a local
3535	3211		revenue level [wealth per student] equal to or less than the
3536	3212		[equalized wealth] level established under Section 48.257.
3537	3213		Sec. 49.052 [41.032]. GOVERNING LAW. Except to the extent
3538	3214		modified by the terms of the agreement, the consolidated district
3539	3215		is governed by the applicable provisions of Subchapter D, Chapter
3540	3216		13, other than a provision requiring consolidating districts to be
3541	3217		contiguous. The agreement may not be inconsistent with the
3542	3218		requirements of this subchapter.
3543	3219		Sec. 49.053 [41.033]. GOVERNANCE PLAN. (a) The agreement
3544	3220		among the consolidating districts may include a governance plan
3545	3221		designed to preserve community-based and site-based decision
3546	3222		making within the consolidated district, including the delegation
3547	3223		of specific powers of the governing board of the district other than
3548	3224		the power to levy taxes, including a provision authorized by
3549	3225		Section 13.158(b).
3550	3226		(b) The governance plan may provide for a transitional board
3551	3227		of trustees during the first year after consolidation, but
3552	3228		beginning with the next year the board of trustees must be elected
3553	3229		from within the boundaries of the consolidated district. If the
3554	3230		consolidating districts elect trustees from single-member
3555	3231		districts, the consolidated district must adopt a plan to elect its
3556	3232		board of trustees from single-member districts.
3557	3233		Sec. 49.054 [41.034]. INCENTIVE AID. (a) For the first and
3558	3234		second school years after creation of a consolidated district under
3559	3235		this subchapter, the commissioner shall adjust allotments to the
3560	3236		consolidated district to the extent necessary to preserve the
3561	3237		effects of an adjustment under Section 48.052 [42.102, 42.103, or
3562	3238		42.105] to which either of the consolidating districts would have
3563	3239		been entitled but for the consolidation.
3564	3240		(b) Except as provided by Subsection (c), a district
3565	3241		receiving incentive aid payments under this section is not entitled
3566	3242		to incentive aid under Subchapter G, Chapter 13.
3567	3243		(c) Four or more districts that consolidate into one
3568	3244		district under this subchapter within a period of one year may elect
3569	3245		to receive incentive aid under this section or to receive incentive
3570	3246		aid for not more than five years under Subchapter G, Chapter 13.
3571	3247		Incentive aid under this subsection may not provide the
3572	3248		consolidated district with more revenue in state and local funds
3573	3249		than the district would receive at the [equalized wealth] level
3574	3250		established under Section 48.257.
3575		-	SECTION 1.~~051~~. Subchapter C, Chapter 41, Education Code, is
	3251	+	SECTION 1.048. Subchapter C, Chapter 41, Education Code, is
3576	3252		transferred to Chapter 49, Education Code, as added by this Act,
3577	3253		redesignated as Subchapter C, Chapter 49, Education Code, and
3578	3254		amended to read as follows:
3579	3255		SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT
3580	3256		Sec. 49.101 [41.061]. AGREEMENT. (a) By agreement of the
3581	3257		governing boards of two school districts, territory may be detached
3582	3258		from one of the districts and annexed to the other district if,
3583	3259		after the action:
3584	3260		(1) the local revenue level [wealth per student] of
3585	3261		the district from which territory is detached is equal to or less
3586	3262		than the [equalized wealth] level established under Section 48.257;
3587	3263		and
3588	3264		(2) the local revenue level [wealth per student] of
3589	3265		the district to which territory is annexed is not greater than the
3590	3266		dollar amount guaranteed level of [greatest level for which] funds
3591	3267		[are] provided under Section 48.202(a-1)(2) [Subchapter F, Chapter
3592	3268		42].
3593	3269		(b) The agreement is not effective unless the commissioner
3594	3270		certifies that, after all actions taken under this chapter, the
3595	3271		local revenue level [wealth per student] of each district involved
3596	3272		will be equal to or less than the applicable level permitted by
3597	3273		Subsection (a).
3598	3274		Sec. 49.102 [41.062]. GOVERNING LAW. Except to the extent
3599	3275		of any conflict with this chapter and except for any requirement
3600	3276		that detached property must be annexed to a school district that is
3601	3277		contiguous to the detached territory, the annexation and detachment
3602	3278		is governed by Chapter 13.
3603	3279		Sec. 49.103 [41.063]. ALLOCATION OF APPRAISED VALUE OF
3604	3280		DIVIDED UNIT. If portions of a parcel or other item of property are
3605	3281		located in different school districts as a result of a detachment
3606	3282		and annexation under this subchapter, the parcel or other item of
3607	3283		property shall be appraised for taxation as a unit, and the
3608	3284		agreement shall allocate the taxable value of the property between
3609	3285		the districts.
3610	3286		Sec. 49.104 [41.064]. ALLOCATION OF INDEBTEDNESS. The
3611	3287		annexation agreement may allocate to the receiving district any
3612	3288		portion of the indebtedness of the district from which the
3613	3289		territory is detached, and the receiving district assumes and is
3614	3290		liable for the allocated indebtedness.
3615	3291		Sec. 49.105 [41.065]. NOTICE. As soon as practicable after
3616	3292		the agreement is executed, the districts involved shall notify each
3617	3293		affected property owner and the appraisal district in which the
3618	3294		affected property is located.
3619		-	SECTION 1.~~052~~. Chapter 49, Education Code, as added by this
	3295	+	SECTION 1.049. Chapter 49, Education Code, as added by this
3620	3296		Act, is amended by adding Subchapter D, and a heading is added to
3621	3297		that subchapter to read as follows:
3622	3298		SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT
3623		-	SECTION 1.~~053~~. Sections 41.091, 41.092, 41.093, 41.094,
	3299	+	SECTION 1.050. Sections 41.091, 41.092, 41.093, 41.094,
3624	3300		41.095, 41.096, 41.097, and 41.099, Education Code, are transferred
3625	3301		to Subchapter D, Chapter 49, Education Code, as added by this Act,
3626	3302		redesignated as Sections 49.151, 49.152, 49.153, 49.154, 49.155,
3627	3303		49.156, 49.157, and 49.158, Education Code, and amended to read as
3628	3304		follows:
3629	3305		Sec. 49.151 [41.091]. AGREEMENT. A school district with a
3630	3306		local revenue [wealth per student that exceeds the equalized
3631	3307		wealth] level in excess of entitlement may execute an agreement
3632	3308		with the commissioner to purchase attendance credit [credits] in an
3633	3309		amount sufficient, in combination with any other actions taken
3634	3310		under this chapter, to reduce the district's local revenue level
3635	3311		[wealth per student] to a level that is equal to or less than the
3636	3312		[equalized wealth] level established under Section 48.257.
3637	3313		Sec. 49.152 [41.092]. CREDIT. The amount of [(a) For each]
3638	3314		credit purchased decreases the dollar amount of a district's local
3639	3315		revenue level[, the weighted average daily attendance of the
3640	3316		purchasing school district is increased by one student in weighted
3641	3317		average daily attendance] for purposes of determining whether the
3642	3318		district exceeds the [equalized wealth] level established under
3643	3319		Section 48.257.
3644	3320		[(b) A credit is not used in determining a school district's
3645	3321		scholastic population, average daily attendance, or weighted
3646	3322		average daily attendance for purposes of Chapter 42 or 43.]
3647	3323		Sec. 49.153 [41.093]. COST. (a) The total [Subject to
3648	3324		Subsection (b-1), the] cost of [each] credit is the [an] amount
3649	3325		[equal to the greater of:
3650	3326		[(1) the amount] of the district's maintenance and
3651	3327		operations tax revenue that exceeds the level established under
3652	3328		Section 48.257 [per student in weighted average daily attendance
3653	3329		for the school year for which the contract is executed; or
3654	3330		[(2) the amount of the statewide district average of
3655	3331		maintenance and operations tax revenue per student in weighted
3656	3332		average daily attendance for the school year preceding the school
3657	3333		year for which the contract is executed].
3658	3334		(b) For purposes of this section, a school district's
3659	3335		maintenance and operations tax revenue does not include any amounts
3660	3336		paid into a tax increment fund under Chapter 311, Tax Code.
3661	3337		[(b-1) If the guaranteed level of state and local funds per
3662	3338		weighted student per cent of tax effort under Section
3663	3339		42.302(a-1)(1) for which state funds are appropriated for a school
3664	3340		year is an amount at least equal to the amount of revenue per
3665	3341		weighted student per cent of tax effort available to the Austin
3666	3342		Independent School District, as determined by the commissioner in
3667	3343		cooperation with the Legislative Budget Board, the commissioner, in
3668	3344		computing the amounts described by Subsections (a)(1) and (2) and
3669	3345		determining the cost of an attendance credit, shall exclude
3670	3346		maintenance and operations tax revenue resulting from the tax rate
3671	3347		described by Section 41.002(a)(2).]
3672	3348		(c) The cost of [an] attendance credit for a school district
3673	3349		is computed using the final tax collections of the district.
3674	3350		Sec. 49.154 [41.094]. PAYMENT. (a) A school district
3675		-	shall pay for credit [credits] purchased:
3676		-	(1) in equal monthly payments as determined by the
3677		-	commissioner beginning February 15 and ending August 15 of the
3678		-	school year for which the agreement is in effect; or
3679		-	(2) in one payment for the total amount required to be
3680		-	paid by the district not later than August 15 of the school year for
3681		-	which the agreement is in effect.
3682		-	(a-1) If a school district elects to pay for credit
3683		-	purchased in the manner provided by Subsection (a)(2), the district
3684		-	must notify the commissioner not later than February 15 of the
3685		-	school year for which the agreement is in effect.
	3351	+	shall pay for credit [credits] purchased in equal monthly payments
	3352	+	as determined by the commissioner beginning February 15 and ending
	3353	+	August 15 of the school year for which the agreement is in effect.
3686	3354		(b) Receipts shall be deposited in the state treasury and
3687	3355		may be used only for foundation school program purposes.
3688	3356		Sec. 49.155 [41.095]. DURATION. An agreement under this
3689	3357		section is valid for one school year and, subject to Section 49.156
3690	3358		[41.096], may be renewed annually.
3691	3359		Sec. 49.156 [41.096]. VOTER APPROVAL. (a) After first
3692	3360		executing an agreement under this section, the board of trustees
3693	3361		shall order and conduct an election, in the manner provided by
3694	3362		Sections 13.003(d)-(g), to obtain voter approval of the agreement.
3695	3363		(b) The ballot shall be printed to permit voting for or
3696	3364		against the proposition: "Authorizing the board of trustees of
3697	3365		________ School District to purchase attendance credit [credits]
3698	3366		from the state with local tax revenues."
3699	3367		(c) The proposition is approved if the proposition receives
3700	3368		a favorable vote of a majority of the votes cast. If the
3701	3369		proposition is approved, the agreement executed by the board is
3702	3370		ratified, and the board has continuing authority to execute
3703	3371		agreements under this subchapter on behalf of the district without
3704	3372		further voter approval.
3705	3373		Sec. 49.157 [41.097]. CREDIT FOR APPRAISAL COSTS. [(a)]
3706	3374		The total amount required under Section 49.153 [41.093] for a
3707	3375		district to purchase attendance credit [credits] under this
3708	3376		subchapter for any school year is reduced by an amount equal to the
3709	3377		product of the district's total costs under Section 6.06, Tax Code,
3710	3378		for the appraisal district or districts in which it participates
3711	3379		multiplied by a percentage that is computed by dividing the total
3712	3380		amount required under Section 49.153 [41.093] by the total amount
3713	3381		of taxes imposed in the district for that year less any amounts paid
3714	3382		into a tax increment fund under Chapter 311, Tax Code.
3715	3383		[(b) A school district is entitled to a reduction under
3716	3384		Subsection (a) beginning with the 1996-1997 school year. For that
3717	3385		school year, the reduction to which a district is entitled is the
3718	3386		sum of the amounts computed under Subsection (a) for the 1993-1994,
3719	3387		1994-1995, 1995-1996, and 1996-1997 school years. If that amount
3720	3388		exceeds the total amount required under Section 41.093 for the
3721	3389		1996-1997 school year, the difference is carried forward and the
3722	3390		total amount required under Section 41.093 is reduced each
3723	3391		subsequent school year until the total amount of the credit has been
3724	3392		applied to such reductions.]
3725	3393		Sec. 49.158 [41.099]. LIMITATION. (a) Sections 49.154 and
3726	3394		49.157 [41.002(e), 41.094, 41.097, and 41.098] apply only to a
3727	3395		district that:
3728	3396		(1) executes an agreement to purchase [all] attendance
3729	3397		credit [credits] necessary to reduce the district's local revenue
3730	3398		[wealth per student to the equalized wealth] level to the level
3731	3399		established under Section 48.257;
3732	3400		(2) executes an agreement to purchase attendance
3733	3401		credit [credits] and an agreement under Subchapter E to contract
3734	3402		for the education of nonresident students who transfer to and are
3735	3403		educated in the district but who are not charged tuition; or
3736	3404		(3) executes an agreement under Subchapter E to
3737	3405		contract for the education of nonresident students:
3738	3406		(A) to an extent that does not provide more than
3739	3407		10 percent of the reduction in local revenue [wealth per student]
3740	3408		required for the district to achieve a local revenue level [wealth
3741	3409		per student] that is equal to or less than the [equalized wealth]
3742	3410		level established under Section 48.257; and
3743	3411		(B) under which all revenue paid by the district
3744	3412		to other districts, in excess of the reduction in state aid that
3745	3413		results from counting the weighted average daily attendance of the
3746	3414		students served in the contracting district, is required to be used
3747	3415		for funding a consortium of at least three districts in a county
3748	3416		with a population of less than 40,000 that is formed to support a
3749	3417		technology initiative.
3750	3418		(b) A district that executes an agreement under Subsection
3751	3419		(a)(3) must pay full market value for any good or service the
3752	3420		district obtains through the consortium.
3753		-	SECTION 1.~~054~~. Chapter 49, Education Code, as added by this
	3421	+	SECTION 1.051. Chapter 49, Education Code, as added by this
3754	3422		Act, is amended by adding Subchapter E, and a heading is added to
3755	3423		that subchapter to read as follows:
3756	3424		SUBCHAPTER E. EDUCATION OF NONRESIDENT STUDENTS
3757		-	SECTION 1.~~055~~. Sections 41.121, 41.122, and 41.123,
	3425	+	SECTION 1.052. Sections 41.121, 41.122, and 41.123,
3758	3426		Education Code, are transferred to Subchapter E, Chapter 49,
3759	3427		Education Code, as added by this Act, redesignated as Sections
3760	3428		49.201, 49.202, and 49.203, Education Code, and amended to read as
3761	3429		follows:
3762	3430		Sec. 49.201 [41.121]. AGREEMENT. [(a)] The board of
3763	3431		trustees of a district with a local revenue [wealth per student that
3764	3432		exceeds the equalized wealth] level in excess of entitlement may
3765	3433		execute an agreement to educate the students of another district in
3766	3434		a number that, when the weighted average daily attendance of the
3767	3435		students served is added to the weighted average daily attendance
3768	3436		of the contracting district, is sufficient, in combination with any
3769	3437		other actions taken under this chapter, to reduce the district's
3770	3438		local revenue level [wealth per student] to a level that is equal to
3771	3439		or less than the [equalized wealth] level established under Section
3772	3440		48.257. The agreement is not effective unless the commissioner
3773	3441		certifies that the transfer of weighted average daily attendance
3774	3442		will not result in any of the contracting districts' local revenue
3775	3443		level [wealth per student] being greater than the [equalized
3776	3444		wealth] level established under Section 48.257 and that the
3777	3445		agreement requires an expenditure per student in weighted average
3778	3446		daily attendance that is at least equal to the amount per student in
3779	3447		weighted average daily attendance required under Section 49.153
3780	3448		[41.093].
3781	3449		Sec. 49.202 [41.122]. VOTER APPROVAL. (a) After first
3782	3450		executing an agreement under this subchapter other than an
3783	3451		agreement under Section 49.205 [41.125], the board of trustees of
3784	3452		the district that will be educating nonresident students shall
3785	3453		order and conduct an election, in the manner provided by Sections
3786	3454		13.003(d)-(g), to obtain voter approval of the agreement.
3787	3455		(b) The ballot shall be printed to permit voting for or
3788	3456		against the proposition: "Authorizing the board of trustees of
3789	3457		________ School District to educate students of other school
3790	3458		districts with local tax revenues."
3791	3459		(c) The proposition is approved if the proposition receives
3792	3460		a favorable vote of a majority of the votes cast. If the
3793	3461		proposition is approved, the agreement executed by the board is
3794	3462		ratified, and the board has continuing authority to execute
3795	3463		agreements under this subchapter on behalf of the district without
3796	3464		further voter approval.
3797	3465		Sec. 49.203 [41.123]. WADA COUNT. For purposes of Chapter
3798	3466		48 [42], students served under an agreement under this subchapter
3799	3467		are counted only in the weighted average daily attendance of the
3800	3468		district providing the services, except that students served under
3801	3469		an agreement authorized by Section 49.205 [41.125] are counted in a
3802	3470		manner determined by the commissioner.
3803		-	SECTION 1.~~056~~. Section 41.124, Education Code, as amended
	3471	+	SECTION 1.053. Section 41.124, Education Code, as amended
3804	3472		by Chapters 581 (S.B. 810) and 705 (H.B. 3526), Acts of the 85th
3805	3473		Legislature, Regular Session, 2017, is transferred to Subchapter E,
3806	3474		Chapter 49, Education Code, as added by this Act, redesignated as
3807	3475		Section 49.204, Education Code, and reenacted and amended to read
3808	3476		as follows:
3809	3477		Sec. 49.204 [41.124]. TRANSFERS. (a) The board of
3810	3478		trustees of a school district with a local revenue [wealth per
3811	3479		student that exceeds the equalized wealth] level in excess of
3812	3480		entitlement may reduce the district's local revenue level [wealth
3813	3481		per student] by serving nonresident students who transfer to the
3814	3482		district and are educated by the district but who are not charged
3815	3483		tuition. A district that exercises the option under this
3816	3484		subsection is not required to execute an agreement with the school
3817	3485		district in which a transferring student resides and must certify
3818	3486		to the commissioner that the district has not charged or received
3819	3487		tuition for the transferring students.
3820	3488		(b) [A school district with a wealth per student that
3821	3489		exceeds the equalized wealth level that pays tuition to another
3822	3490		school district for the education of students that reside in the
3823	3491		district may apply the amount of tuition paid toward the cost of the
3824	3492		option chosen by the district to reduce its wealth per student. The
3825	3493		amount applied under this subsection may not exceed the amount
3826	3494		determined under Section 41.093 as the cost of an attendance credit
3827	3495		for the district. The commissioner may require any reports
3828	3496		necessary to document the tuition payments.
3829	3497		[(c)] A school district that receives tuition for a student
3830	3498		from a school district with a local revenue [wealth per student that
3831	3499		exceeds the equalized wealth] level in excess of entitlement may
3832	3500		not claim attendance for that student for purposes of Chapters [42
3833	3501		and] 46 and 48 and the instructional materials and technology
3834	3502		allotment under Section 31.0211.
3835		-	SECTION 1.~~057~~. Section 41.125, Education Code, is
	3503	+	SECTION 1.054. Section 41.125, Education Code, is
3836	3504		transferred to Subchapter E, Chapter 49, Education Code, as added
3837	3505		by this Act, redesignated as Section 49.205, Education Code, and
3838	3506		amended to read as follows:
3839	3507		Sec. 49.205 [41.125]. CAREER AND TECHNOLOGY EDUCATION
3840	3508		PROGRAMS. (a) The board of trustees of a school district with a
3841	3509		local revenue [wealth per student that exceeds the equalized
3842	3510		wealth] level in excess of entitlement may reduce the district's
3843	3511		local revenue level [wealth per student] by executing an agreement
3844	3512		to provide students of one or more other districts with career and
3845	3513		technology education through a program designated as an area
3846	3514		program for career and technology education.
3847	3515		(b) The agreement is not effective unless the commissioner
3848	3516		certifies that:
3849	3517		(1) implementation of the agreement will not result in
3850	3518		any of the affected districts' local revenue level [wealth per
3851	3519		student] being greater than the [equalized wealth] level
3852	3520		established under Section 48.257; and
3853	3521		(2) the agreement requires the district with a local
3854	3522		revenue [wealth per student that exceeds the equalized wealth]
3855	3523		level in excess of entitlement to make expenditures benefiting
3856	3524		students from other districts in an amount at least equal to the
3857	3525		amount that would be required for the district to purchase [the
3858	3526		number of] attendance credit [credits] under Subchapter D
3859	3527		necessary, in combination with any other actions taken under this
3860	3528		chapter other than an action under this section, to reduce the
3861	3529		district's local revenue level [wealth per student] to a level that
3862	3530		is equal to or less than the [equalized wealth] level established
3863	3531		under Section 48.257.
3864		-	SECTION 1.~~058~~. Subchapter F, Chapter 41, Education Code, is
	3532	+	SECTION 1.055. Subchapter F, Chapter 41, Education Code, is
3865	3533		transferred to Chapter 49, Education Code, as added by this Act,
3866	3534		redesignated as Subchapter F, Chapter 49, Education Code, and
3867	3535		amended to read as follows:
3868	3536		SUBCHAPTER F. TAX BASE CONSOLIDATION
3869	3537		Sec. 49.251 [41.151]. AGREEMENT. The board of trustees of
3870	3538		two or more school districts may execute an agreement to conduct an
3871	3539		election on the creation of a consolidated taxing district for the
3872	3540		maintenance and operation of the component school districts. The
3873	3541		agreement is subject to approval by the commissioner. The
3874	3542		agreement is not effective unless the commissioner certifies that
3875	3543		the consolidated taxing district will have a local revenue level
3876	3544		[wealth per student] equal to or less than the [equalized wealth]
3877	3545		level established under Section 48.257 after all actions taken
3878	3546		under this chapter.
3879	3547		Sec. 49.252 [41.152]. DATE OF ELECTION. Any agreement
3880	3548		under this subchapter must provide for the ordering of an election
3881	3549		to be held on the same date in each district.
3882	3550		Sec. 49.253 [41.153]. PROPOSITION. (a) The ballot shall
3883	3551		be printed to permit voting for or against the proposition:
3884	3552		"Creation of a consolidated taxing district composed of the
3885	3553		territory of _________________________ school districts, and
3886	3554		authorizing the levy, assessment, and collection of annual ad
3887	3555		valorem taxes for the maintenance of the public free schools within
3888	3556		that taxing district at a rate not to exceed $_________ on the $100
3889	3557		valuation of taxable property."
3890	3558		(b) The rate to be included in the proposition shall be
3891	3559		provided by the agreement among the districts but may not exceed the
3892	3560		maximum rate provided by law for independent school districts.
3893	3561		Sec. 49.254 [41.154]. APPROVAL. The proposition is
3894	3562		approved only if the proposition receives a favorable vote of the
3895	3563		majority of the votes cast within each participating school
3896	3564		district.
3897	3565		Sec. 49.255 [41.155]. CONSOLIDATED TAXING DISTRICT. A
3898	3566		consolidated taxing district is a school district established for
3899	3567		the limited purpose of exercising the taxing power authorized by
3900	3568		Section 3, Article VII, Texas Constitution, and distributing the
3901	3569		revenue to its component school districts.
3902	3570		Sec. 49.256 [41.156]. GOVERNANCE. (a) The consolidated
3903	3571		taxing district is governed by the boards of the component school
3904	3572		districts acting jointly.
3905	3573		(b) Any action taken by the joint board must receive a
3906	3574		favorable vote of a majority of each component district's board of
3907	3575		trustees.
3908	3576		Sec. 49.257 [41.157]. MAINTENANCE TAX. (a) The joint
3909	3577		board shall levy a maintenance tax for the benefit of the component
3910	3578		school districts not later than September 1 of each year or as soon
3911	3579		thereafter as practicable.
3912	3580		(b) Each component district shall bear a share of the costs
3913	3581		of assessing and collecting taxes in proportion to the component
3914	3582		district's share of weighted average daily attendance in the
3915	3583		consolidated taxing district.
3916	3584		(c) A component district may not levy an ad valorem tax for
3917	3585		the maintenance and operation of the schools.
3918	3586		(d) Notwithstanding Section 45.003, the consolidated taxing
3919	3587		district may levy, assess, and collect a maintenance tax for the
3920	3588		benefit of the component districts at a rate that exceeds $1.50 per
3921	3589		$100 valuation of taxable property to the extent necessary to pay
3922	3590		contracted obligations on the lease purchase of permanent
3923	3591		improvements to real property entered into on or before May 12,
3924	3592		1993. The proposition to impose taxes at the necessary rate must be
3925	3593		submitted to the voters in the manner provided by Section 45.003.
3926	3594		Sec. 49.258 [41.158]. REVENUE DISTRIBUTION. The
3927	3595		consolidated taxing district shall distribute maintenance tax
3928	3596		revenue to the component districts on the basis of the number of
3929	3597		students in weighted average daily attendance in the component
3930	3598		districts.
3931	3599		Sec. 49.259 [41.159]. TAXES OF COMPONENT DISTRICTS. (a)
3932	3600		The governing board of a component school district of a
3933	3601		consolidated taxing district that has consolidated for maintenance
3934	3602		and operation purposes only may issue bonds and levy, pledge, and
3935	3603		collect ad valorem taxes within that component district sufficient
3936	3604		to pay the principal of and interest on those bonds as provided by
3937	3605		Chapter 45.
3938	3606		(b) A component district levying an ad valorem tax under
3939	3607		this section or Section 49.260(b)(1) [41.160(b)(1)] is entitled to
3940	3608		the guaranteed yield provided by Subchapter E [F], Chapter 48 [42],
3941	3609		for that portion of its tax rate that, when added to the maintenance
3942	3610		tax levied by the consolidated taxing unit, does not exceed the
3943	3611		limitation provided by Section 48.203 [42.303].
3944	3612		Sec. 49.260 [41.160]. OPTIONAL TOTAL TAX BASE
3945	3613		CONSOLIDATION. (a) An agreement executed under Section 49.251
3946	3614		[41.151] may provide for total tax base consolidation instead of
3947	3615		consolidation for maintenance and operation purposes only.
3948	3616		(b) Under an agreement providing for total tax base
3949	3617		consolidation:
3950	3618		(1) the component districts may not levy maintenance
3951	3619		or bond taxes, except to the extent necessary to retire bonds and
3952	3620		other obligations issued before the effective date of the
3953	3621		consolidation;
3954	3622		(2) the joint board may issue bonds and levy, pledge,
3955	3623		and collect ad valorem taxes sufficient to pay the principal of and
3956	3624		interest on those bonds, and issue refunding bonds, as provided by
3957	3625		Chapter 45 for independent school districts; and
3958	3626		(3) to the end of the ballot proposition required
3959	3627		under Section 49.253(a) [41.153(a)] shall be added ", and further
3960	3628		to create a consolidated tax base for the repayment of all bonded
3961	3629		indebtedness issued by the joint board of the taxing district after
3962	3630		the effective date of the consolidation and to authorize the joint
3963	3631		board to levy, pledge, and collect ad valorem taxes at a rate
3964	3632		sufficient to pay the principal of and interest on those bonds."
3965	3633		(c) Under an agreement providing for total tax base
3966	3634		consolidation:
3967	3635		(1) the component districts may provide for the
3968	3636		consolidated taxing district to assume all of the indebtedness of
3969	3637		all component districts; and
3970	3638		(2) to the end of the ballot proposition required by
3971	3639		Section 49.253(a) [41.153(a)] shall be added ", and further to
3972	3640		create a consolidated tax base for the repayment of all bonded
3973	3641		indebtedness issued by the joint board of the taxing district or
3974	3642		previously issued by the component school districts and to
3975	3643		authorize the joint board to levy, pledge, and collect ad valorem
3976	3644		taxes at a rate sufficient to pay the principal of and interest on
3977	3645		those bonds."
3978		-	SECTION 1.~~059~~. Subchapter G, Chapter 41, Education Code, is
	3646	+	SECTION 1.056. Subchapter G, Chapter 41, Education Code, is
3979	3647		transferred to Chapter 49, Education Code, as added by this Act,
3980	3648		redesignated as Subchapter G, Chapter 49, Education Code, and
3981	3649		amended to read as follows:
3982	3650		SUBCHAPTER G. DETACHMENT AND ANNEXATION BY COMMISSIONER
3983	3651		Sec. 49.301 [41.201]. DEFINITION. In this subchapter,
3984	3652		"mineral property" means a real property mineral interest that has
3985	3653		been severed from the surface estate by a mineral lease creating a
3986	3654		determinable fee or by a conveyance that creates an interest
3987	3655		taxable separately from the surface estate. A mineral property
3988	3656		includes each royalty interest, working interest, or other
3989	3657		undivided interest in the mineral property.
3990	3658		Sec. 49.302 [41.202]. DETERMINATION OF TAXABLE VALUE. (a)
3991	3659		For purposes of this subchapter, the taxable value of an individual
3992	3660		parcel or other item of property and the total taxable value of
3993	3661		property in a school district resulting from the detachment of
3994	3662		property from or annexation of property to that district is
3995	3663		determined by applying the appraisal ratio for the appropriate
3996	3664		category of property determined under Subchapter M, Chapter 403,
3997	3665		Government Code, for the preceding tax year to the taxable value of
3998	3666		the detached or annexed property determined under Title 1, Tax
3999	3667		Code, for the preceding tax year.
4000	3668		(b) For purposes of this subchapter, the taxable value of
4001	3669		all or a portion of a parcel or item of real property includes the
4002	3670		taxable value of personal property having taxable situs at the same
4003	3671		location as the real property.
4004	3672		Sec. 49.303 [41.203]. PROPERTY SUBJECT TO DETACHMENT AND
4005	3673		ANNEXATION. (a) Only the following property may be detached and
4006	3674		annexed under this subchapter:
4007	3675		(1) a mineral property;
4008	3676		(2) real property used in the operation of a public
4009	3677		utility, including a pipeline, pipeline gathering system, or
4010	3678		railroad or other rail system; and
4011	3679		(3) real property used primarily for industrial or
4012	3680		other commercial purposes, other than property used primarily for
4013	3681		agriculture or for residential purposes.
4014	3682		(b) If a final judgment of a court determines that a mineral
4015	3683		interest may not be annexed and detached as provided by this
4016	3684		subchapter without an attendant annexation and detachment of the
4017	3685		surface estate or any other interest in the same land, the
4018	3686		detachment and annexation of a mineral interest under this
4019	3687		subchapter includes the surface estate and each other interest in
4020	3688		the land covered by the mineral interest.
4021	3689		Sec. 49.304 [41.204]. TAXATION OF PERSONAL PROPERTY.
4022	3690		Personal property having a taxable situs at the same location as
4023	3691		real property detached and annexed under this subchapter is taxable
4024	3692		by the school district to which the real property is annexed.
4025	3693		Sec. 49.305 [41.205]. DETACHMENT OF PROPERTY. (a) The
4026	3694		commissioner shall detach property under this section from each
4027	3695		school district from which the commissioner is required under
4028	3696		Section 49.004 [41.004] to detach property under this subchapter.
4029	3697		(b) The commissioner shall detach from each school district
4030	3698		covered by Subsection (a) one or more whole parcels or items of
4031	3699		property in descending order of the taxable value of each parcel or
4032	3700		item, beginning with the parcel or item having the greatest taxable
4033	3701		value, until the school district's local revenue level [wealth per
4034	3702		student] is equal to or less than the [equalized wealth] level
4035	3703		established under Section 48.257, except as otherwise provided by
4036	3704		Subsection (c).
4037	3705		(c) If the detachment of whole parcels or items of property
4038	3706		[,] as provided by Subsection (a) would result in a district's local
4039	3707		revenue level [wealth per student] that is less than the [equalized
4040	3708		wealth] level established under Section 48.257 by more than the
4041	3709		product of $10,000 multiplied by weighted average daily attendance,
4042	3710		the commissioner may not detach the last parcel or item of property
4043	3711		and shall detach the next one or more parcels or items of property
4044	3712		in descending order of taxable value that would result in the school
4045	3713		district having a local revenue level [wealth per student] that is
4046	3714		equal to or less than the [equalized wealth] level established
4047	3715		under Section 48.257 by not more than the product of $10,000
4048	3716		multiplied by weighted average daily attendance.
4049	3717		(d) Notwithstanding Subsections (a), (b), and (c), the
4050	3718		commissioner may detach only a portion of a parcel or item of
4051	3719		property if:
4052	3720		(1) it is not possible under this subchapter to reduce
4053	3721		the district's local revenue level [wealth per student] to a level
4054	3722		that is equal to or less than the [equalized wealth] level
4055	3723		established under Section 48.257 [this subchapter] unless some or
4056	3724		all of the parcel or item of property is detached and the detachment
4057	3725		of the whole parcel or item would result in the district from which
4058	3726		it is detached having a local revenue level [wealth per student]
4059	3727		that is less than the [equalized wealth] level established under
4060	3728		Section 48.257 by more than the product of $10,000 multiplied by
4061	3729		weighted average daily attendance; or
4062	3730		(2) the commissioner determines that a partial
4063	3731		detachment of that parcel or item of property is preferable to the
4064	3732		detachment of one or more other parcels or items having a lower
4065	3733		taxable value in order to minimize the number of parcels or items of
4066	3734		property to be detached consistent with the purposes of this
4067	3735		chapter.
4068	3736		Sec. 49.306 [41.206]. ANNEXATION OF PROPERTY. (a) The
4069	3737		commissioner shall annex property detached under Section 49.305
4070	3738		[41.205] to school districts eligible for annexation in accordance
4071	3739		with this section. A school district is eligible for annexation of
4072	3740		property to it under this subchapter only if, before any
4073	3741		detachments or annexations are made in a year, the district's
4074	3742		taxable value of property does not exceed the value necessary to
4075	3743		generate maintenance and operations tax revenue in the amount equal
4076	3744		to the district's entitlement under Section 48.202(a-1)(2) [wealth
4077	3745		per student is less than the greatest level for which funds are
4078	3746		provided under Subchapter F, Chapter 42].
4079	3747		(b) Property may be annexed to a school district without
4080	3748		regard to whether the property is contiguous to other property in
4081	3749		that district.
4082	3750		(c) The commissioner shall annex property detached from
4083	3751		school districts beginning with the property detached from the
4084	3752		school district with the greatest local revenue level in excess of
4085	3753		entitlement [wealth per student] before detachment, and continuing
4086	3754		with the property detached from each other school district in
4087	3755		descending order of the district's local revenue level in excess of
4088	3756		entitlement [wealth per student] before detachment.
4089	3757		(d) The commissioner shall annex the parcels or items of
4090	3758		property detached from a school district to other school districts
4091	3759		that are eligible for annexation of property in descending order of
4092	3760		the taxable value of each parcel or item according to the following
4093	3761		priorities:
4094	3762		(1) first, to the eligible school districts assigned
4095	3763		to the same county as the school district from which the property is
4096	3764		detached whose total adopted tax rate for the preceding tax year
4097	3765		does not exceed by more than $0.15 the total tax rate adopted for
4098	3766		that year by the school district from which the property is
4099	3767		detached;
4100	3768		(2) second, to the eligible school districts served by
4101	3769		the same regional education service center as the district from
4102	3770		which the property is detached whose total adopted tax rate for the
4103	3771		preceding tax year does not exceed by more than $0.10 the total tax
4104	3772		rate adopted for that year by the school district from which the
4105	3773		property is detached; and
4106	3774		(3) third, to other eligible school districts whose
4107	3775		total adopted tax rate for the preceding tax year does not exceed by
4108	3776		more than $0.05 the total tax rate adopted for that year by the
4109	3777		school district from which the property is detached.
4110	3778		(e) If the districts identified by Subsection (d) for a
4111	3779		school district are insufficient to annex all the property detached
4112	3780		from the school district, the commissioner shall increase, for
4113	3781		purposes of this section, all the maximum difference in tax rates
4114	3782		allowed under Subsection (d) in increments of $0.01 until the
4115	3783		districts are identified that are sufficient to annex all the
4116	3784		property detached from the district.
4117	3785		(f) If only one school district is eligible to annex
4118	3786		property detached from a school district within a priority group
4119	3787		established by Subsections (d) and (e), the commissioner shall
4120	3788		annex property to that district until it reaches the taxable value
4121	3789		of property necessary to generate maintenance and operations tax
4122	3790		revenue in the amount equal to the district's entitlement under
4123	3791		Section 48.202(a-1)(2) [a wealth per student equal as nearly as
4124	3792		possible to the greatest level for which funds are provided under
4125	3793		Subchapter F, Chapter 42], by annexing whole parcels or items of
4126	3794		property. Any remaining detached property shall be annexed to
4127	3795		eligible school districts in the next priority group as provided by
4128	3796		this section.
4129	3797		(g) If more than one school district is eligible to annex
4130	3798		property detached from a school district within a priority group
4131	3799		established by Subsections (d) and (e), the commissioner shall
4132	3800		first annex property to the district within the priority group to
4133	3801		which could be annexed the most taxable value of property without
4134	3802		increasing the district's taxable value of property to an amount
4135	3803		that exceeds the amount necessary to generate maintenance and
4136	3804		operations tax revenue in the amount equal to the district's
4137	3805		entitlement under Section 48.202(a-1)(2) [its wealth per student
4138	3806		above the greatest level for which funds are provided under
4139	3807		Subchapter F, Chapter 42], until that district reaches a taxable
4140	3808		value of property necessary to generate maintenance and operations
4141	3809		tax revenue in the amount equal to the district's entitlement under
4142	3810		Section 48.202(a-1)(2) [wealth per student equal as nearly as
4143	3811		possible to the greatest level for which funds are provided under
4144	3812		Subchapter F, Chapter 42], by annexing whole parcels or items of
4145	3813		property. Then any additional detached property shall be annexed
4146	3814		in the same manner to other eligible school districts in the same
4147	3815		priority group in descending order of capacity to receive taxable
4148	3816		value of annexed property without increasing the district's taxable
4149	3817		value of property to an amount that exceeds the amount necessary to
4150	3818		generate maintenance and operations tax revenue in the amount equal
4151	3819		to the district's entitlement under Section 48.202(a-1)(2) [wealth
4152	3820		per student above the greatest level for which funds are provided
4153	3821		under Subchapter F, Chapter 42]. If every school district in a
4154	3822		priority group reaches a taxable value of property necessary to
4155	3823		generate maintenance and operations tax revenue in the amount equal
4156	3824		to the district's entitlement under Section 48.202(a-1)(2) [wealth
4157	3825		per student equal to the greatest level for which funds are provided
4158	3826		under Subchapter F, Chapter 42], as nearly as possible, the
4159	3827		remaining detached property shall be annexed to school districts in
4160	3828		the next priority group in the manner provided by this section.
4161	3829		(h) For purposes of this section, a portion of a parcel or
4162	3830		item of property detached in that subdivided form from a school
4163	3831		district is treated as a whole parcel or item of property.
4164	3832		(i) The commissioner may order the annexation of a portion
4165	3833		of a parcel or item of property, including a portion of property
4166	3834		treated as a whole parcel or item under Subsection (h), if:
4167	3835		(1) the annexation of the whole parcel or item would
4168	3836		result in the district eligible to receive it in the appropriate
4169	3837		priority order provided by this section having a local revenue
4170	3838		level [wealth per student] greater than the amount by which the
4171	3839		product of $10,000 multiplied by weighted average daily attendance
4172	3840		exceeds the taxable value of property necessary to generate
4173	3841		maintenance and operations tax revenue in the amount equal to the
4174	3842		district's entitlement under Section 48.202(a-1)(2) [more than the
4175	3843		greatest level for which funds are provided under Subchapter F,
4176	3844		Chapter 42]; or
4177	3845		(2) the commissioner determines that annexation of
4178	3846		portions of the parcel or item would reduce disparities in district
4179	3847		taxable values of property necessary to generate maintenance and
4180	3848		operations tax revenue in the amount equal to a district's
4181	3849		entitlement under Section 48.202(a-1)(2) [wealth per student] more
4182	3850		efficiently than would be possible if the parcel or item were
4183	3851		annexed as a whole.
4184	3852		(j) The commissioner may modify the priorities established
4185	3853		by this section as the commissioner considers reasonable to
4186	3854		minimize or reduce the number of school districts to which the
4187	3855		property detached from a school district is annexed, to minimize or
4188	3856		reduce the geographic dispersal of property in a school district,
4189	3857		to minimize or reduce disparities in school district taxable values
4190	3858		of property necessary to generate maintenance and operations tax
4191	3859		revenue in the amount equal to a district's entitlement under
4192	3860		Section 48.202(a-1)(2) [wealth per student] that would otherwise
4193	3861		result, or to minimize or reduce any administrative burden or
4194	3862		expense.
4195	3863		(k) For purposes of this section, a school district is
4196	3864		assigned to a county if the school district is assigned to that
4197	3865		county in the 1992-1993 Texas School Directory published by the
4198	3866		Central Education Agency.
4199	3867		Sec. 49.307 [41.207]. LIMITATIONS ON DETACHMENT AND
4200	3868		ANNEXATION. The commissioner may detach and annex property under
4201	3869		this subchapter only if:
4202	3870		(1) the property is not exempt from ad valorem
4203	3871		taxation under Section 11.20 or 11.21, Tax Code; and
4204	3872		(2) the property does not contain a building or
4205	3873		structure owned by the United States, this state, or a political
4206	3874		subdivision of this state that is exempt from ad valorem taxation
4207	3875		under law.
4208	3876		Sec. 49.308 [41.208]. ORDERS AND NOTICE. (a) The
4209	3877		commissioner shall order any detachments and annexations of
4210	3878		property under this subchapter not later than November 8 of each
4211	3879		year.
4212	3880		(b) As soon as practicable after issuing the order under
4213	3881		Subsection (a), the commissioner shall notify each affected school
4214	3882		district and the appraisal district in which the affected property
4215	3883		is located of the determination.
4216	3884		Sec. 49.309 [41.209]. TREATMENT OF SUBDIVIDED PROPERTY.
4217	3885		(a) If the commissioner orders the detachment or annexation of a
4218	3886		portion of a parcel or item of property under this subchapter, the
4219	3887		order shall specify the portion of the taxable value of the property
4220	3888		to be detached or annexed and may, but need not, describe the
4221	3889		specific area of the parcel or item to be detached or annexed.
4222	3890		(b) If an order for the detachment or annexation of a
4223	3891		portion of a parcel or item of property does not describe the
4224	3892		specific area of the parcel or item to be detached or annexed, the
4225	3893		commissioner, as soon as practicable after issuing the order, shall
4226	3894		determine the specific area to be detached or annexed and shall
4227	3895		certify that determination to the appraisal district for the county
4228	3896		in which the property is located.
4229	3897		(c) If portions of a parcel or item of property are located
4230	3898		in two or more school districts as the result of a detachment or
4231	3899		annexation, the parcel or item shall be appraised for taxation as a
4232	3900		unit, and the commissioner shall determine the portion of the
4233	3901		taxable value of the property that is located in each of those
4234	3902		school districts based on the square footage of the property, or any
4235	3903		other reasonable method adopted by the commissioner.
4236	3904		Sec. 49.310 [41.210]. DUTIES OF CHIEF APPRAISER. (a) The
4237	3905		chief appraiser of each appraisal district shall cooperate with the
4238	3906		commissioner in administering this subchapter. The commissioner
4239	3907		may require the chief appraiser to submit any reports or provide any
4240	3908		information available to the chief appraiser in the form and at the
4241	3909		times required by the commissioner.
4242	3910		(b) As soon as practicable after the detachment and
4243	3911		annexation of property, the chief appraiser of the appraisal
4244	3912		district in which the property is located shall send a written
4245	3913		notice of the detachment and annexation to the owner of any property
4246	3914		taxable in a different school district as a result of the detachment
4247	3915		and annexation. The notice must include the name of the school
4248	3916		district by which the property is taxable after the detachment and
4249	3917		annexation.
4250	3918		(c) The commissioner may reimburse an appraisal district
4251	3919		for any costs incurred in administering this subchapter and may
4252	3920		condition the reimbursement or the amount of the reimbursement on
4253	3921		the timely submission of reports or information required by the
4254	3922		commissioner or the satisfactory performance of any other action
4255	3923		required or requested by the commissioner.
4256	3924		Sec. 49.311 [41.211]. STUDENT ATTENDANCE. A student who
4257	3925		is a resident of real property detached from a school district may
4258	3926		choose to attend school in that district or in the district to which
4259	3927		the property is annexed. For purposes of determining average daily
4260	3928		attendance under Section 48.005 [42.005], the student shall be
4261	3929		counted in the district to which the property is annexed. If the
4262	3930		student chooses to attend school in the district from which the
4263	3931		property is detached, the state shall withhold any foundation
4264	3932		school funds from the district to which the property is annexed and
4265	3933		shall allocate to the district in which the student is attending
4266	3934		school those funds and the amount of funds equal to the difference
4267	3935		between the state funds the district is receiving for the student
4268	3936		and the district's cost in educating the student.
4269	3937		Sec. 49.312 [41.212]. BOND TAXES. Property detached from
4270	3938		a school district is released from the obligation for any tax to pay
4271	3939		principal and interest on bonds authorized by the district before
4272	3940		detachment. The property is subject to any tax to pay principal or
4273	3941		interest on bonds authorized by the district to which the property
4274	3942		is annexed whether authorized before or after annexation.
4275	3943		Sec. 49.313 [41.213]. DETERMINATION BY COMMISSIONER
4276	3944		FINAL. A decision or determination of the commissioner under this
4277	3945		subchapter is final and not appealable.
4278		-	SECTION 1.~~060~~. Subchapter H, Chapter 41, Education Code, is
	3946	+	SECTION 1.057. Subchapter H, Chapter 41, Education Code, is
4279	3947		transferred to Chapter 49, Education Code, as added by this Act,
4280	3948		redesignated as Subchapter H, Chapter 49, Education Code, and
4281	3949		amended to read as follows:
4282	3950		SUBCHAPTER H. CONSOLIDATION BY COMMISSIONER
4283	3951		Sec. 49.351 [41.251]. COMMISSIONER ORDER. If the
4284	3952		commissioner is required under Section 49.004 [41.004] to order the
4285	3953		consolidation of districts, the consolidation is governed by this
4286	3954		subchapter. The commissioner's order shall be effective on a date
4287	3955		determined by the commissioner, but not later than the earliest
4288	3956		practicable date after November 8.
4289	3957		Sec. 49.352 [41.252]. SELECTION CRITERIA. (a) In
4290	3958		selecting the districts to be consolidated with a district that has
4291	3959		taxable values of property in an amount that exceeds the local
4292	3960		revenue level established under Section 48.257 [a property wealth
4293	3961		greater than the equalized wealth level], the commissioner shall
4294	3962		select one or more districts [with a wealth per student] that, when
4295	3963		consolidated, will result in a consolidated district with a local
4296	3964		revenue level [wealth per student] equal to or less than the
4297	3965		[equalized wealth] level established under Section 48.257. In
4298	3966		achieving that result, the commissioner shall give priority to
4299	3967		school districts in the following order:
4300	3968		(1) first, to the contiguous district that has the
4301	3969		lowest local revenue level [wealth per student] and is located in
4302	3970		the same county;
4303	3971		(2) second, to the district that has the lowest local
4304	3972		revenue level [wealth per student] and is located in the same
4305	3973		county;
4306	3974		(3) third, to a contiguous district with a local
4307	3975		revenue level [property wealth] below the [equalized wealth] level
4308	3976		established under Section 48.257 that has requested the
4309	3977		commissioner that it be considered in a consolidation plan;
4310	3978		(4) fourth, to include as few districts as possible
4311	3979		that have the lowest local revenue levels below the [fall below the
4312	3980		equalized wealth] level established under Section 48.257 within the
4313	3981		consolidation order that have not requested the commissioner to be
4314	3982		included;
4315	3983		(5) fifth, to the district that has the lowest local
4316	3984		revenue level [wealth per student] and is located in the same
4317	3985		regional education service center area; and
4318	3986		(6) sixth, to a district that has a tax rate similar to
4319	3987		that of the district that has a local revenue level [property
4320	3988		wealth] greater than the [equalized wealth] level established under
4321	3989		Section 48.257.
4322	3990		(b) The commissioner may not select a district that has been
4323	3991		created as a result of consolidation by agreement under Subchapter
4324	3992		B to be consolidated under this subchapter with a district that has
4325	3993		a local revenue level [property wealth] greater than the [equalized
4326	3994		wealth] level established under Section 48.257.
4327	3995		(c) In applying the selection criteria specified by
4328	3996		Subsection (a), if more than two districts are to be consolidated,
4329	3997		the commissioner shall select the third and each subsequent
4330	3998		district to be consolidated by treating the district that has a
4331	3999		local revenue level [property wealth] greater than the [equalized
4332	4000		wealth] level established under Section 48.257 and the district or
4333	4001		districts previously selected for consolidation as one district.
4334	4002		Sec. 49.353 [41.253]. GOVERNANCE. (a) Until the initial
4335	4003		trustees elected as provided by Subsection (b) have qualified and
4336	4004		taken office, a district consolidated under this subchapter is
4337	4005		governed by a transitional board of trustees consisting of the
4338	4006		board of trustees of the district having the greatest student
4339	4007		membership on the last day of the school year preceding the
4340	4008		consolidation plus one member of the board of trustees of each other
4341	4009		consolidating district selected by that board.
4342	4010		(b) The transitional board of trustees shall divide the
4343	4011		consolidated district into nine single-member trustee districts in
4344	4012		accordance with the procedures provided by Section 11.052. The
4345	4013		transitional board shall order an election for the initial board of
4346	4014		trustees to be held on the first May uniform election date after the
4347	4015		effective date of a consolidation order.
4348	4016		(c) Members of the board of trustees of a consolidated
4349	4017		district serve staggered terms of office for four years.
4350	4018		(d) Section 13.156 applies to districts consolidated under
4351	4019		this subchapter.
4352	4020		Sec. 49.354 [41.254]. DISSOLUTION OF CONSOLIDATED
4353	4021		DISTRICT. (a) If the legislature abolishes ad valorem taxes for
4354	4022		public school maintenance and operations and adopts another method
4355	4023		of funding public education, the board of trustees of a
4356	4024		consolidated district created under this subchapter may dissolve
4357	4025		the consolidated district, provided that the dissolution is
4358	4026		approved by a majority of those voters residing within the district
4359	4027		participating in an election called for the purpose of approving
4360	4028		the dissolution of the consolidated school district.
4361	4029		(b) If a consolidated district is dissolved, each of the
4362	4030		former districts is restored as a separate district and is
4363	4031		classified as an independent district.
4364	4032		(c) Title to real property of the consolidated district is
4365	4033		allocated to the restored district in which the property is
4366	4034		located. Title to proportionate shares of the fund balances and
4367	4035		personal property of the consolidated district, as determined by
4368	4036		Subsection (e), are allocated to each restored district.
4369	4037		(d) Each of the restored districts assumes and is liable
4370	4038		for:
4371	4039		(1) indebtedness of the consolidated district that
4372	4040		relates to real property allocated to the district; and
4373	4041		(2) a proportionate share, as determined by Subsection
4374	4042		(e), of indebtedness of the consolidated district that does not
4375	4043		relate to real property.
4376	4044		(e) A restored district's proportionate share of fund
4377	4045		balances, personal property, or indebtedness is equal to the
4378	4046		proportion that the number of students in average daily attendance
4379	4047		in the restored district bears to the number of students in average
4380	4048		daily attendance in the consolidated district.
4381	4049		Sec. 49.355 [41.255]. FUND BALANCES. Fund balances of a
4382	4050		school district consolidated under this subchapter may be used only
4383	4051		for the benefit of the schools within the district that generated
4384	4052		the funds.
4385	4053		Sec. 49.356 [41.256]. EMPLOYMENT CONTRACTS. A
4386	4054		consolidated district created under this subchapter shall honor an
4387	4055		employment contract entered into by a consolidating district.
4388	4056		Sec. 49.357 [41.257]. APPLICATION OF [SMALL AND] SPARSE
4389	4057		ADJUSTMENT [ADJUSTMENTS] AND SMALL AND TRANSPORTATION ALLOTMENTS
4390	4058		[ALLOTMENT]. The budget of the consolidated district must apply
4391	4059		the benefit of the adjustment or allotment to the schools of the
4392	4060		consolidating district to which Section 48.052 [42.103], 48.101
4393	4061		[42.105], or 48.151 [42.155] would have applied in the event that
4394	4062		the consolidated district still qualifies as a small or sparse
4395	4063		district.
4396		-	SECTION 1.061. Section 403.302(d), Government Code, is
4397		-	amended to read as follows:
4398		-	(d) For the purposes of this section, "taxable value" means
4399		-	the market value of all taxable property less:
4400		-	(1) the total dollar amount of any residence homestead
4401		-	exemptions lawfully granted under Section 11.13(b) or (c), Tax
4402		-	Code, in the year that is the subject of the study for each school
4403		-	district;
4404		-	(2) one-half of the total dollar amount of any
4405		-	residence homestead exemptions granted under Section 11.13(n), Tax
4406		-	Code, in the year that is the subject of the study for each school
4407		-	district;
4408		-	(3) the total dollar amount of any exemptions granted
4409		-	before May 31, 1993, within a reinvestment zone under agreements
4410		-	authorized by Chapter 312, Tax Code;
4411		-	(4) subject to Subsection (e), the total dollar amount
4412		-	of any captured appraised value of property that:
4413		-	(A) is within a reinvestment zone created on or
4414		-	before May 31, 1999, or is proposed to be included within the
4415		-	boundaries of a reinvestment zone as the boundaries of the zone and
4416		-	the proposed portion of tax increment paid into the tax increment
4417		-	fund by a school district are described in a written notification
4418		-	provided by the municipality or the board of directors of the zone
4419		-	to the governing bodies of the other taxing units in the manner
4420		-	provided by former Section 311.003(e), Tax Code, before May 31,
4421		-	1999, and within the boundaries of the zone as those boundaries
4422		-	existed on September 1, 1999, including subsequent improvements to
4423		-	the property regardless of when made;
4424		-	(B) generates taxes paid into a tax increment
4425		-	fund created under Chapter 311, Tax Code, under a reinvestment zone
4426		-	financing plan approved under Section 311.011(d), Tax Code, on or
4427		-	before September 1, 1999; and
4428		-	(C) is eligible for tax increment financing under
4429		-	Chapter 311, Tax Code;
4430		-	(5) the total dollar amount of any captured appraised
4431		-	value of property that:
4432		-	(A) is within a reinvestment zone:
4433		-	(i) created on or before December 31, 2008,
4434		-	by a municipality with a population of less than 18,000; and
4435		-	(ii) the project plan for which includes
4436		-	the alteration, remodeling, repair, or reconstruction of a
4437		-	structure that is included on the National Register of Historic
4438		-	Places and requires that a portion of the tax increment of the zone
4439		-	be used for the improvement or construction of related facilities
4440		-	or for affordable housing;
4441		-	(B) generates school district taxes that are paid
4442		-	into a tax increment fund created under Chapter 311, Tax Code; and
4443		-	(C) is eligible for tax increment financing under
4444		-	Chapter 311, Tax Code;
4445		-	(6) the total dollar amount of any exemptions granted
4446		-	under Section 11.251 or 11.253, Tax Code;
4447		-	(7) the difference between the comptroller's estimate
4448		-	of the market value and the productivity value of land that
4449		-	qualifies for appraisal on the basis of its productive capacity,
4450		-	except that the productivity value estimated by the comptroller may
4451		-	not exceed the fair market value of the land;
4452		-	(8) the portion of the appraised value of residence
4453		-	homesteads of individuals who receive a tax limitation under
4454		-	Section 11.26, Tax Code, on which school district taxes are not
4455		-	imposed in the year that is the subject of the study, calculated as
4456		-	if the residence homesteads were appraised at the full value
4457		-	required by law;
4458		-	(9) a portion of the market value of property not
4459		-	otherwise fully taxable by the district at market value because
4460		-	of[:
4461		-	[(A)] action required by statute or the
4462		-	constitution of this state, other than Section 11.311, Tax Code,
4463		-	that, if the tax rate adopted by the district is applied to it,
4464		-	produces an amount equal to the difference between the tax that the
4465		-	district would have imposed on the property if the property were
4466		-	fully taxable at market value and the tax that the district is
4467		-	actually authorized to impose on the property, if this subsection
4468		-	does not otherwise require that portion to be deducted; [or
4469		-	[(B) action taken by the district under
4470		-	Subchapter B or C, Chapter 313, Tax Code, before the expiration of
4471		-	the subchapter;]
4472		-	(10) the market value of all tangible personal
4473		-	property, other than manufactured homes, owned by a family or
4474		-	individual and not held or used for the production of income;
4475		-	(11) the appraised value of property the collection of
4476		-	delinquent taxes on which is deferred under Section 33.06, Tax
4477		-	Code;
4478		-	(12) the portion of the appraised value of property
4479		-	the collection of delinquent taxes on which is deferred under
4480		-	Section 33.065, Tax Code; and
4481		-	(13) the amount by which the market value of a
4482		-	residence homestead to which Section 23.23, Tax Code, applies
4483		-	exceeds the appraised value of that property as calculated under
4484		-	that section.
4485		-	SECTION 1.062. Sections 825.405(a), (b), (e), and (f),
	4064	+	SECTION 1.058. Sections 825.405(a), (b), (e), and (f),
4486	4065		Government Code, are amended to read as follows:
4487	4066		(a) An employing school district or an open-enrollment
4488	4067		charter school, as applicable, shall pay the state's contribution
4489	4068		on the portion of a member's salary that exceeds the statutory
4490	4069		minimum salary for [For] members:
4491	4070		(1) entitled to the minimum salary for certain school
4492	4071		personnel under Section 21.402, Education Code;
4493	4072		(2) [, and for members] who would have been entitled to
4494	4073		the minimum salary for certain school personnel under former
4495	4074		Section 16.056, Education Code, as that section existed on January
4496	4075		1, 1995; and
4497	4076		(3) who would be entitled to the minimum salary for
4498	4077		certain school personnel under Section 21.402, Education Code, if
4499	4078		the member was employed by a school district subject to that section
4500	4079		instead of being employed by:
4501	4080		(A) an open-enrollment charter school; or
4502	4081		(B) a school district that has adopted a local
4503	4082		innovation plan under Chapter 12A, Education Code, that exempts the
4504	4083		district's employees from the minimum salary schedule under that
4505	4084		section[, the employing district shall pay the state's contribution
4506	4085		on the portion of the member's salary that exceeds the statutory
4507	4086		minimum salary].
4508	4087		(b) For purposes of this section,[:
4509	4088		[(1)] the statutory minimum salary for a member
4510	4089		described by:
4511	4090		(1) Subsection (a)(1) [certain school personnel under
4512	4091		Section 21.402, Education Code,] is the salary provided by Section
4513	4092		21.402, Education Code [that section multiplied by the cost of
4514	4093		education adjustment applicable under Section 42.102, Education
4515	4094		Code, to the district in which the member is employed]; [and]
4516	4095		(2) Subsection (a)(2) [the statutory minimum salary
4517	4096		for members who would have been entitled to the minimum salary for
4518	4097		certain school personnel under former Section 16.056, Education
4519	4098		Code, as that section existed on January 1, 1995,] is a minimum
4520	4099		salary computed in the same manner as the minimum salary for certain
4521	4100		school personnel under Section 21.402, Education Code; and
4522	4101		(3) Subsection (a)(3) is the minimum salary the member
4523	4102		would have been entitled to if the member was subject to Section
4524	4103		21.402, Education Code[, multiplied by the cost of education
4525	4104		adjustment applicable under Section 42.102, Education Code, to the
4526	4105		district in which the member is employed].
4527	4106		(e) After the end of each school year, the retirement system
4528	4107		shall certify to the commissioner of education:
4529	4108		(1) the names of any employers [employing districts]
4530	4109		that have failed to remit, within the period required by Section
4531	4110		825.408, all contributions required under this section for the
4532	4111		school year; and
4533	4112		(2) the amounts of the unpaid contributions.
4534	4113		(f) If the commissioner of education receives a
4535	4114		certification under Subsection (e), the commissioner shall direct
4536	4115		the comptroller of public accounts to withhold the amount
4537	4116		certified, plus interest computed at the rate and in the manner
4538	4117		provided by Section 825.408, from the first state money payable to
4539	4118		the employer [school district]. The amount withheld shall be
4540	4119		deposited to the credit of the appropriate accounts of the
4541	4120		retirement system.
4542		-	SECTION 1.~~063~~. Section 26.08, Tax Code, is amended by
4543		-	amending Subsections (a), (b), (i), and (n) and adding ~~Subsections~~
4544		-	(a~~-1) and (n~~-1) to read as follows:
	4121	+	SECTION 1.059. Section 26.08, Tax Code, is amended by
	4122	+	amending Subsections (a), (b), (i), and (n) and adding Subsection
	4123	+	(a-1) to read as follows:
4545	4124		(a) If the governing body of a school district adopts a tax
4546		-	rate that exceeds the district's voter-approval [rollback] tax
4547		-	rate, the registered voters of the district at an election held for
4548		-	that purpose must determine whether to approve the adopted tax
4549		-	rate.
	4125	+	rate that exceeds the district's rollback tax rate, the registered
	4126	+	voters of the district at an election held for that purpose must
	4127	+	determine whether to approve the adopted tax rate.
4550	4128		(a-1) When increased expenditure of money by a school
4551	4129		district is necessary to respond to a disaster, including a
4552		-	tornado, hurricane, flood~~, wildfire~~, or other calamity, but not
4553		-	~~including a~~ drought, that has impacted a school district and the
4554		-	~~governor has~~ requested federal disaster assistance for the area in
4555		-	~~which the~~ school district is located, an election is not required
4556		-	~~under this~~ section to approve the tax rate adopted by the governing
4557		-	~~body for~~ the year following the year in which the disaster occurs.
4558		-	~~A tax~~ rate adopted under this subsection applies only in the year
4559		-	~~for~~ which the rate is adopted. If a district adopts a tax rate under
	4130	+	tornado, hurricane, flood, or other calamity, but not including a
	4131	+	drought, that has impacted a school district and the governor has
	4132	+	requested federal disaster assistance for the area in which the
	4133	+	school district is located, an election is not required under this
	4134	+	section to approve the tax rate adopted by the governing body for
	4135	+	the year following the year in which the disaster occurs. A tax
	4136	+	rate adopted under this subsection applies only in the year for
	4137	+	which the rate is adopted. If a district adopts a tax rate under
4560	4138		this subsection, the amount by which that rate exceeds the
4561		-	district's voter-approval tax rate for that tax year may not be
4562		-	considered when calculating the district's voter-approval tax rate
4563		-	for the tax year following the year in which the district adopts the
4564		-	rate.
	4139	+	district's rollback tax rate for that tax year may not be considered
	4140	+	when calculating the district's rollback tax rate for the tax year
	4141	+	following the year in which the district adopts the rate.
4565	4142		(b) The governing body shall order that the election be held
4566	4143		in the school district on the next uniform election [a] date
4567	4144		prescribed by [not less than 30 or more than 90 days after the day on
4568	4145		which it adopted the tax rate.] Section 41.001, Election Code, that
4569	4146		occurs after the date of the election order and that allows
4570	4147		sufficient time to comply with the requirements of other law [does
4571	4148		not apply to the election unless a date specified by that section
4572	4149		falls within the time permitted by this section]. At the election,
4573	4150		the ballots shall be prepared to permit voting for or against the
4574	4151		proposition: "Ratifying [Approving] the ad valorem tax rate of ___
4575	4152		(insert adopted tax rate) [$_____ per $100 valuation] in (name of
4576	4153		school district) for the current year, a rate that will result in an
4577	4154		increase of _____ (insert percentage increase in maintenance and
4578	4155		operations tax revenue under the adopted tax rate as compared to
4579	4156		maintenance and operations tax revenue in the preceding tax year)
4580	4157		percent in maintenance and operations tax revenue for the district
4581	4158		for the current year as compared to the preceding year, which is an
4582	4159		additional $____ (insert dollar amount of increase in maintenance
4583	4160		and operations tax revenue under the adopted tax rate as compared to
4584	4161		maintenance and operations tax revenue in the preceding tax year)
4585	4162		[is $_____ higher per $100 valuation than the school district
4586	4163		rollback tax rate, for the purpose of (description of purpose of
4587	4164		increase)]." [The ballot proposition must include the adopted tax
4588	4165		rate and the difference between that rate and the rollback tax rate
4589	4166		in the appropriate places.]
4590	4167		(i) For purposes of this section, "enrichment tax rate" has
4591	4168		the meaning assigned by Section 45.0032, Education Code [the
4592	4169		effective maintenance and operations tax rate of a school district
4593	4170		is the tax rate that, applied to the current total value for the
4594	4171		district, would impose taxes in an amount that, when added to state
4595	4172		funds that would be distributed to the district under Chapter 42,
4596	4173		Education Code, for the school year beginning in the current tax
4597	4174		year using that tax rate, would provide the same amount of state
4598	4175		funds distributed under Chapter 42, Education Code, and maintenance
4599	4176		and operations taxes of the district per student in weighted
4600	4177		average daily attendance for that school year that would have been
4601	4178		available to the district in the preceding year if the funding
4602	4179		elements for Chapters 41 and 42, Education Code, for the current
4603	4180		year had been in effect for the preceding year].
4604		-	(n) For purposes of this section, the voter-approval
4605		-	[rollback] tax rate of a school district [whose maintenance and
4606		-	operations tax rate for the 2005 tax year was $1.50 or less per $100
4607		-	of taxable value] is:
	4181	+	(n) For purposes of this section, the rollback tax rate of a
	4182	+	school district [whose maintenance and operations tax rate for the
	4183	+	2005 tax year was $1.50 or less per $100 of taxable value] is:
4608	4184		(1) for the 2019 [2006] tax year, the sum of the
4609	4185		following:
4610	4186		(A) the rate [that is equal to 88.67 percent of
4611	4187		the maintenance and operations tax rate adopted by the district for
4612	4188		the 2005 tax year, the rate of $0.04] per $100 of taxable value that
4613	4189		is equal to the product of the state compression percentage, as
4614	4190		determined under Section 48.255, Education Code, for the 2019 tax
4615	4191		year and $1.00;
4616	4192		(B) the greater of:
4617	4193		(i) the district's maintenance and
4618	4194		operations tax rate for the 2018 tax year, less the sum of:
4619	4195		(a) $1.00; and
4620	4196		(b) any amount by which the district
4621	4197		is required to reduce the district's enrichment tax rate under
4622	4198		Section 48.202(f), Education Code, in the 2019 tax year; or
4623	4199		(ii) the rate of $0.04 per $100 of taxable
4624	4200		value; and
4625	4201		(C) [, and] the district's current debt rate; and
4626	4202		(2) for the 2020 [2007] and subsequent tax years, the
4627	4203		sum [lesser] of the following:
4628	4204		(A) [the sum of the following:
4629	4205		[(i)] the rate per $100 of taxable value
4630	4206		that is equal to the product of the state compression percentage, as
4631	4207		determined under Section 48.255 [42.2516], Education Code, for the
4632	4208		current year and $1.00 [$1.50];
4633	4209		(B) the greater of:
4634	4210		(i) the district's enrichment tax rate for
4635	4211		the preceding tax year, less any amount by which the district is
4636	4212		required to reduce the district's enrichment tax rate under Section
4637	4213		48.202(f), Education Code, in the current tax year; or
4638		-	(ii) the rate of $0.~~05 [$0.~~04] per $100 of
4639		-	~~taxable~~ value; and
	4214	+	(ii) the rate of $0.04 per $100 of taxable
	4215	+	value; and
4640	4216		(C) [(iii) the rate that is equal to the sum of
4641	4217		the differences for the 2006 and each subsequent tax year between
4642	4218		the adopted tax rate of the district for that year if the rate was
4643	4219		approved at an election under this section and the rollback tax rate
4644	4220		of the district for that year; and
4645	4221		[(iv)] the district's current debt rate[;
4646	4222		or
4647	4223		[(B) the sum of the following:
4648	4224		[(i) the effective maintenance and
4649	4225		operations tax rate of the district as computed under Subsection
4650	4226		(i) or (k), as applicable;
4651	4227		[(ii) the rate per $100 of taxable value
4652	4228		that is equal to the product of the state compression percentage, as
4653	4229		determined under Section 42.2516, Education Code, for the current
4654	4230		year and $0.06; and
4655	4231		[(iii) the district's current debt rate].
4656		-	(n-1) For the 2020 tax year, a school district shall
4657		-	substitute "$0.04" for "$0.05" in Subsection (n)(2)(B)(ii) if the
4658		-	governing body of the district does not adopt by unanimous vote for
4659		-	that tax year a maintenance and operations tax rate at least equal
4660		-	to the sum of the rate described by Subsection (n)(2)(A) and the
4661		-	rate of $0.05 per $100 of taxable value.
4662		-	SECTION 1.064. Chapter 26, Tax Code, is amended by adding
4663		-	Section 26.151 to read as follows:
4664		-	Sec. 26.151. ESCROW ACCOUNT FOR PROPERTY TAXES. (a) In this
4665		-	section:
4666		-	(1) "Home loan" has the meaning assigned by Section
4667		-	343.001, Finance Code.
4668		-	(2) "Home loan servicer" means a person who:
4669		-	(A) receives scheduled payments from a borrower
4670		-	under the terms of a home loan, including amounts for escrow
4671		-	accounts; and
4672		-	(B) makes the payments of principal and interest
4673		-	to the owner of the loan or other third party and makes any other
4674		-	payments with respect to the amounts received from the borrower as
4675		-	may be required under the terms of the servicing loan document or
4676		-	servicing contract.
4677		-	(3) "Property tax escrow account" means an escrow
4678		-	account maintained by a lender or loan servicer to hold funds
4679		-	prepaid by the borrower on a loan for the payment of property taxes
4680		-	on real property securing the loan as the taxes become due.
4681		-	(b) To the extent that H.B. 3, 86th Legislature, Regular
4682		-	Session, 2019, has the effect of reducing property taxes in this
4683		-	state, a lender or home loan servicer of a home loan that maintains
4684		-	a property tax escrow account must take into account the effect of
4685		-	that legislation in establishing the borrower's annual property tax
4686		-	payments to be held in that account and immediately adjust the
4687		-	borrower's monthly payments accordingly.
4688		-	(c) This section expires September 1, 2023.
4689		-	SECTION 1.065. Effective January 1, 2020, Sections 26.08(d)
4690		-	and (g), Tax Code, are amended to read as follows:
4691		-	(d) If the proposition is not approved as provided by
4692		-	Subsection (c), the governing body may not adopt a tax rate for the
4693		-	school district for the current year that exceeds the school
4694		-	district's voter-approval [rollback] tax rate.
4695		-	(g) In a school district that received distributions from an
4696		-	equalization tax imposed under former Chapter 18, Education Code,
4697		-	the no-new-revenue [effective] rate of that tax as of the date of
4698		-	the county unit system's abolition is added to the district's
4699		-	voter-approval [rollback] tax rate.
4700		-	ARTICLE 1A. PROPERTY TAX COMPRESSION
4701		-	SECTION 1A.001. Effective September 1, 2020, Section
4702		-	13.054, Education Code, is amended by amending Subsection (f) and
4703		-	adding Subsection (f-1) to read as follows:
4704		-	(f) For five years beginning with the school year in which
4705		-	the annexation occurs, a school district shall receive additional
4706		-	funding under this subsection or Subsection (h). The amount of
4707		-	funding shall be determined by multiplying the lesser of the
4708		-	enlarged district's local fund assignment computed under Section
4709		-	48.256 [42.252] or the enlarged district's total cost of tier one by
4710		-	a fraction, the numerator of which is the number of students
4711		-	residing in the territory annexed to the receiving district
4712		-	preceding the date of the annexation and the denominator of which is
4713		-	the number of students residing in the district as enlarged on the
4714		-	date of the annexation, and multiplying the resulting product by
4715		-	the quotient of the enlarged district's maximum compressed tax
4716		-	rate, as determined under Section 48.2551, for the current school
4717		-	year divided by the receiving district's maximum compressed tax
4718		-	rate, as determined under Section 48.2551, for the year in which the
4719		-	annexation occurred.
4720		-	(f-1) Notwithstanding Subsection (f), for an annexation
4721		-	that occurred before September 1, 2019, for five years beginning
4722		-	with the school year in which the annexation occurs, a school
4723		-	district shall receive additional funding under this subsection or
4724		-	Subsection (h). The amount of funding shall be determined by
4725		-	multiplying the lesser of the enlarged district's local fund
4726		-	assignment computed under Section 48.256 or the enlarged district's
4727		-	total cost of tier one by a fraction, the numerator of which is the
4728		-	number of students residing in the territory annexed to the
4729		-	receiving district preceding the date of the annexation and the
4730		-	denominator of which is the number of students residing in the
4731		-	district as enlarged on the date of the annexation, and dividing the
4732		-	receiving district's maximum compressed tax rate, as determined
4733		-	under Section 48.2551. This subsection expires September 1, 2021.
4734		-	SECTION 1A.002. Effective September 1, 2020, Section
4735		-	30.003, Education Code, is amended by amending Subsection (f-1) and
4736		-	adding Subsection (f-2) to read as follows:
4737		-	(f-1) The commissioner shall determine the total amount
4738		-	that the Texas School for the Blind and Visually Impaired and the
4739		-	Texas School for the Deaf would have received from school districts
4740		-	in accordance with this section if the following provisions had not
4741		-	reduced the districts' share of the cost of providing education
4742		-	services:
4743		-	(1) H.B. No. 1, Acts of the 79th Legislature, 3rd
4744		-	Called Session, 2006;
4745		-	(2) Section 45.0032;
4746		-	(3) Section 48.255; and
4747		-	(4) Section 48.2551.
4748		-	(f-2) The amount determined under Subsection (f-1), [had
4749		-	not reduced the districts' share of the cost of providing education
4750		-	services. That amount,] minus any amount the schools do receive
4751		-	from school districts, shall be set aside as a separate account in
4752		-	the foundation school fund and appropriated to those schools for
4753		-	educational purposes.
4754		-	SECTION 1A.003. Effective September 1, 2020, Section
4755		-	45.003(d), Education Code, is amended to read as follows:
4756		-	(d) A proposition submitted to authorize the levy of
4757		-	maintenance taxes must include the question of whether the
4758		-	governing board or commissioners court may levy, assess, and
4759		-	collect annual ad valorem taxes for the further maintenance of
4760		-	public schools, at a rate not to exceed the rate stated in the
4761		-	proposition. For any year, the maintenance tax rate per $100 of
4762		-	taxable value adopted by the district may not exceed the rate equal
4763		-	to the sum of $0.17 and the district's maximum compressed rate
4764		-	[product of the state compression percentage], as determined under
4765		-	Section 48.2551 [42.2516, multiplied by $1.50].
4766		-	SECTION 1A.004. (a) Effective September 1, 2020, Section
4767		-	45.0032, Education Code, as added by this Act, is amended by adding
4768		-	Subsection (a) to read as follows:
4769		-	(a) A school district's tier one maintenance and operations
4770		-	tax rate is the number of cents levied by the district for
4771		-	maintenance and operations that does not exceed the maximum
4772		-	compressed rate, as determined under Section 48.2551.
4773		-	(b) Section 45.0032(a), Education Code, as added by Article
4774		-	1 of this Act, expires on the effective date of this section.
4775		-	SECTION 1A.005. Effective September 1, 2020, Section
4776		-	42.101, Education Code, is transferred to Subchapter B, Chapter 48,
4777		-	Education Code, as added by this Act, redesignated as Section
4778		-	48.051, Education Code, and amended to read as follows:
4779		-	Sec. 48.051 [42.101]. BASIC ALLOTMENT. (a) For each
4780		-	student in average daily attendance, not including the time
4781		-	students spend each day in special education programs in an
4782		-	instructional arrangement other than mainstream or career and
4783		-	technology education programs, for which an additional allotment is
4784		-	made under Subchapter C, a district is entitled to an allotment
4785		-	equal to the lesser of $6,160 [$4,765] or the amount that results
4786		-	from the following formula:
4787		-	A = $6,160 [$4,765] X TR/MCR [(DCR/MCR)]
4788		-	where:
4789		-	"A" is the allotment to which a district is entitled;
4790		-	"TR" ["DCR"] is the district's tier one maintenance and
4791		-	operations [compressed] tax rate, as provided by Section 45.0032
4792		-	[which is the product of the state compression percentage, as
4793		-	determined under Section 42.2516, multiplied by the maintenance and
4794		-	operations tax rate adopted by the district for the 2005 tax year];
4795		-	and
4796		-	"MCR" is the district's [state] maximum compressed tax rate,
4797		-	as determined under Section 48.2551 [which is the product of the
4798		-	state compression percentage, as determined under Section 42.2516,
4799		-	multiplied by $1.50].
4800		-	[(a-1) Notwithstanding Subsection (a), for a school
4801		-	district that adopted a maintenance and operations tax rate for the
4802		-	2005 tax year below the maximum rate permitted by law for that year,
4803		-	the district's compressed tax rate ("DCR") includes the portion of
4804		-	the district's current maintenance and operations tax rate in
4805		-	excess of the first six cents above the district's compressed tax
4806		-	rate, as defined by Subsection (a), until the district's compressed
4807		-	tax rate computed in accordance with this subsection is equal to the
4808		-	state maximum compressed tax rate ("MCR").]
4809		-	(b) A greater amount for any school year may be provided by
4810		-	appropriation.
4811		-	(c) During any school year for which the maximum amount of
4812		-	the basic allotment provided under Subsection (a) or (b) is greater
4813		-	than the maximum amount provided for the preceding school year, a
4814		-	school district must use at least 30 percent of the amount, if the
4815		-	amount is greater than zero, that equals the product of the average
4816		-	daily attendance of the district multiplied by the amount of the
4817		-	difference between the district's funding under this chapter per
4818		-	student in average daily attendance for the current school year and
4819		-	the preceding school year to provide compensation increases to
4820		-	full-time district employees other than administrators as follows:
4821		-	(1) 75 percent must be used to increase the
4822		-	compensation paid to classroom teachers, full-time librarians,
4823		-	full-time school counselors certified under Subchapter B, Chapter
4824		-	21, and full-time school nurses, prioritizing differentiated
4825		-	compensation for classroom teachers with more than five years of
4826		-	experience; and
4827		-	(2) 25 percent may be used as determined by the
4828		-	district to increase compensation paid to full-time district
4829		-	employees [This subsection applies to a school district for which
4830		-	the compressed tax rate ("DCR") is determined in accordance with
4831		-	Subsection (a-1). Any reduction in the district's adopted
4832		-	maintenance and operations tax rate is applied to the following
4833		-	components of the district's tax rate in the order specified:
4834		-	[(1) tax effort described by Section 42.302(a-1)(2);
4835		-	[(2) tax effort described by Section 42.302(a-1)(1);
4836		-	and
4837		-	[(3) tax effort included in the determination of the
4838		-	district's compressed tax rate ("DCR") under Subsection (a-1)].
4839		-	(d) In this section, "compensation" includes benefits such
4840		-	as insurance premiums.
4841		-	SECTION 1A.006. Effective September 1, 2020, Section
4842		-	42.2516, Education Code, is transferred to Subchapter F, Chapter
4843		-	48, Education Code, as added by this Act, redesignated as Section
4844		-	48.255, Education Code, and amended to read as follows:
4845		-	Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
4846		-	In this title, "state compression percentage" means the percentage
4847		-	of the rate of $1.00 per $100 valuation of taxable property that is
4848		-	used to determine a school district's maximum compressed [adopted
4849		-	maintenance and operations] tax rate under Section 48.2551.
4850		-	(b) The [for the 2005 tax year that serves as the basis for
4851		-	state funding. If the] state compression percentage is the lower
4852		-	of:
4853		-	(1) 93 percent, or a lower percentage set [not
4854		-	established] by appropriation for a school year;
4855		-	(2) the percentage determined by the following
4856		-	formula:
4857		-	SCP = PYCP X 1.025/(1 + ECPV); or
4858		-	(3) the percentage determined under this section for
4859		-	the preceding school year.
4860		-	(c) For purposes of Subsection (b)(2):
4861		-	(1) "SCP" is the state compression percentage;
4862		-	(2) "PYCP" is the state compression percentage for the
4863		-	preceding school year; and
4864		-	(3) "ECPV" is the estimated percentage change in total
4865		-	taxable property value for the applicable tax year as determined
4866		-	based on the estimate submitted to the legislature under Section
4867		-	48.269. [, the commissioner shall determine the state compression
4868		-	percentage for each school year based on the percentage by which a
4869		-	district is able to reduce the district's maintenance and
4870		-	operations tax rate for that year, as compared to the district's
4871		-	adopted maintenance and operations tax rate for the 2005 tax year,
4872		-	as a result of state funds appropriated for that year from the
4873		-	property tax relief fund established under Section 403.109,
4874		-	Government Code, or from another funding source available for
4875		-	school district property tax relief.
4876		-	[(g) The commissioner may adopt rules necessary to
4877		-	implement this section.
4878		-	[(h) A determination by the commissioner under this section
4879		-	is final and may not be appealed.]
4880		-	SECTION 1A.007. Effective September 1, 2020, Subchapter F,
4881		-	Chapter 48, Education Code, as added by this Act, is amended by
4882		-	adding Sections 48.2551, 48.2552, 48.2553, and 48.2554 to read as
4883		-	follows:
4884		-	Sec. 48.2551. MAXIMUM COMPRESSED TAX RATE. (a) In this
4885		-	section:
4886		-	(1) "DPV" has the meaning assigned by Section 48.256;
4887		-	(2) "E" is the expiration of the exclusion of
4888		-	appraised property value for the preceding tax year that is
4889		-	recognized as taxable property value for the current tax year,
4890		-	which is the sum of the following:
4891		-	(A) property value that is no longer subject to a
4892		-	limitation on appraised value under Chapter 313, Tax Code; and
4893		-	(B) property value under Section 311.013(n), Tax
4894		-	Code, that is no longer excluded from the calculation of "DPV" from
4895		-	the preceding year because of refinancing or renewal after
4896		-	September 1, 2019;
4897		-	(3) "MCR" is the district's maximum compressed rate,
4898		-	which is the tax rate for the current tax year per $100 of valuation
4899		-	of taxable property at which the district must levy a maintenance
4900		-	and operations tax to receive the full amount of the tier one
4901		-	allotment to which the district is entitled under this chapter;
4902		-	(4) "PYDPV" is the district's value of "DPV" for the
4903		-	preceding tax year; and
4904		-	(5) "PYMCR" is the district's value of "MCR" for the
4905		-	preceding tax year.
4906		-	(b) Except as provided by Subsection (c), a district's
4907		-	maximum compressed rate ("MCR") is the lesser of:
4908		-	(1) the rate determined by the following applicable
4909		-	formula:
4910		-	(A) if "DPV" exceeds "PYDPV" by an amount equal
4911		-	to or greater than 2.5 percent:
4912		-	MCR = (1.025((PYDPV+E) X PYMCR))/DPV; or
4913		-	(B) if Paragraph (A) does not apply:
4914		-	MCR = PYMCR; or
4915		-	(2) the product of the state compression percentage,
4916		-	as determined under Section 48.255, for the current tax year,
4917		-	multiplied by $1.00.
4918		-	(c) Notwithstanding Subsection (b), for a district to which
4919		-	Section 48.2552(b) applies, the district's maximum compressed rate
4920		-	is the value calculated for "MCR" under Subsection (b)(1)(B).
4921		-	(c-1) For purposes of determining a district's maximum
4922		-	compressed rate ("MCR") under Subsection (b) for the 2020-2021
4923		-	school year, the value of "PYMCR" is $1.00. This subsection expires
4924		-	September 1, 2021.
4925		-	(d) The agency shall calculate and make available school
4926		-	districts' maximum compressed rates, as determined under this
4927		-	section.
4928		-	(e) It is the intent of the legislature that the state
4929		-	continue to fund public schools at the same or similar level as the
4930		-	state would have if this section had not taken effect.
4931		-	Sec. 48.2552. LIMITATION ON MAXIMUM COMPRESSED RATE. (a)
4932		-	Each year, the agency shall evaluate the difference between school
4933		-	districts' maximum compressed rates, as determined under Section
4934		-	48.2551.
4935		-	(b) If a school district has a maximum compressed rate that
4936		-	is less than 90 percent of another school district's maximum
4937		-	compressed rate, the district's maximum compressed rate is
4938		-	calculated under Section 48.2551(c) until the agency determines
4939		-	that the difference between the district's and another district's
4940		-	maximum compressed rates is not more than 10 percent.
4941		-	(c) The amount of revenue available to the state as a result
4942		-	of the differences in the amount of state aid and reduction in local
4943		-	revenue between calculating a district's maximum compressed rate in
4944		-	accordance with Subsection (b) and calculating the district's
4945		-	maximum compressed rate under Section 48.2551 shall be used to
4946		-	lower the state compression percentage under Section 48.255. The
4947		-	agency shall provide estimates to the legislature of the reduction
4948		-	of the state compression percentage based on this subsection.
4949		-	Sec. 48.2553. PERMITTED TAX RATE FOR MAINTENANCE OF
4950		-	2020-2021 SCHOOL YEAR BASIC ALLOTMENT. (a) Notwithstanding any
4951		-	other provision of this title or Chapter 26, Tax Code, if the
4952		-	maximum amount of the basic allotment provided under Section
4953		-	48.051(a) or (b) for a school year is less than the maximum amount
4954		-	provided for the 2020-2021 school year, subject to Subsection (b),
4955		-	a school district may adopt a maintenance and operations tax rate
4956		-	that exceeds the maximum compressed tax rate permitted under
4957		-	Section 48.2551, provided that:
4958		-	(1) the rate adopted by the district was previously
4959		-	approved by voters for a tax year subsequent to the 2005 tax year;
4960		-	and
4961		-	(2) the rate may not exceed the lesser of:
4962		-	(A) $1.17; or
4963		-	(B) the district's maximum compressed tax rate
4964		-	and the additional tax rate necessary to generate the amount of
4965		-	revenue equal to the difference in per student funding.
4966		-	(b) Before adopting a maintenance and operations tax rate
4967		-	under Subsection (a), a school district must receive approval from
4968		-	the agency. To receive approval from the agency under this
4969		-	subsection the district must submit the following information:
4970		-	(1) a statement detailing the loss of funding to the
4971		-	district that resulted from the decline in the maximum amount of the
4972		-	basic allotment provided under Section 48.051(a) or (b);
4973		-	(2) the proposed additional tax effort and the amount
4974		-	of funding the proposed additional tax effort will generate;
4975		-	(3) evidence that the proposed additional tax effort
4976		-	described by Subdivision (2) had been previously authorized by
4977		-	voters subsequent to the 2005 tax year; and
4978		-	(4) any other information required by the
4979		-	commissioner.
4980		-	(c) The agency's approval of a district's tax rate under
4981		-	Subsection (b) expires at the end of each tax year.
4982		-	(d) Any additional tax effort by a school district
4983		-	authorized under this section is not:
4984		-	(1) eligible for funding under Subchapter B, C, or D;
4985		-	(2) eligible for the guaranteed yield amount of state
4986		-	funds under Section 48.202; or
4987		-	(3) subject to the limit on local revenue under
4988		-	Section 48.257.
4989		-	(e) The commissioner shall reduce state aid or adjust the
4990		-	limit on local revenue under Section 48.257 in an amount equal to
4991		-	the amount of revenue generated by a school district's tax effort
4992		-	that is not in compliance with this section or Section 48.2551.
4993		-	(f) This section does not apply to a school district to
4994		-	which Section 45.003(f) applies.
4995		-	Sec. 48.2554. STUDY ON DISTRICT PROPERTY TAX COMPRESSION.
4996		-	(a) The Legislative Budget Board, in conjunction with other
4997		-	appropriate state agencies, shall study possible methods of
4998		-	providing property tax relief through the reduction of school
4999		-	district maintenance and operations taxes. The study must
5000		-	evaluate:
5001		-	(1) potential sources of revenue that may be used to
5002		-	reduce school district maintenance and operations taxes;
5003		-	(2) methods of limiting increases in maintenance and
5004		-	operations tax revenue that adjust for enrollment growth,
5005		-	inflation, and other relevant factors; and
5006		-	(3) for each method of providing property tax relief
5007		-	considered:
5008		-	(A) any difference in anticipated benefits to
5009		-	property taxpayers based on the school district in which the
5010		-	taxpayer resides;
5011		-	(B) the cost to the state; and
5012		-	(C) the anticipated impact on equity in the
5013		-	public school finance system.
5014		-	(b) Not later than September 1, 2020, the Legislative Budget
5015		-	Board shall submit to the governor, the lieutenant governor, and
5016		-	the speaker of the house of representatives a report on the results
5017		-	of the study and any recommendations for legislative or other
5018		-	action.
5019		-	(c) This section expires September 1, 2021.
5020		-	SECTION 1A.008. Effective January 1, 2020, Section
5021		-	26.08(n), Tax Code, is amended to read as follows:
5022		-	(n) For purposes of this section, the voter-approval
5023		-	[rollback] tax rate of a school district [whose maintenance and
5024		-	operations tax rate for the 2005 tax year was $1.50 or less per $100
5025		-	of taxable value] is the sum of the following:
5026		-	(1) [for the 2006 tax year, the sum of the rate that is
5027		-	equal to 88.67 percent of the maintenance and operations tax rate
5028		-	adopted by the district for the 2005 tax year, the rate of $0.04 per
5029		-	$100 of taxable value, and the district's current debt rate; and
5030		-	[(2) for the 2007 and subsequent tax years, the lesser
5031		-	of the following:
5032		-	[(A) the sum of the following:
5033		-	[(i)] the rate per $100 of taxable value
5034		-	that is equal to the district's maximum compressed tax rate
5035		-	[product of the state compression percentage], as determined under
5036		-	Section 48.2551 [42.2516], Education Code, for the current year
5037		-	[and $1.50];
5038		-	(2) the greater of:
5039		-	(A) the district's enrichment tax rate for the
5040		-	preceding tax year, less any amount by which the district is
5041		-	required to reduce the district's enrichment tax rate under Section
5042		-	48.202(f), Education Code, in the current tax year; or
5043		-	(B) [(ii)] the rate of $0.05 [$0.04] per $100 of
5044		-	taxable value; and
5045		-	(3) [(iii) the rate that is equal to the sum of the
5046		-	differences for the 2006 and each subsequent tax year between the
5047		-	adopted tax rate of the district for that year if the rate was
5048		-	approved at an election under this section and the rollback tax rate
5049		-	of the district for that year; and
5050		-	[(iv)] the district's current debt rate[;
5051		-	or
5052		-	[(B) the sum of the following:
5053		-	[(i) the effective maintenance and
5054		-	operations tax rate of the district as computed under Subsection
5055		-	(i) or (k), as applicable;
5056		-	[(ii) the rate per $100 of taxable value
5057		-	that is equal to the product of the state compression percentage, as
5058		-	determined under Section 42.2516, Education Code, for the current
5059		-	year and $0.06; and
5060		-	[(iii) the district's current debt rate].
5061	4232		ARTICLE 2. PUBLIC EDUCATION
5062		-	SECTION 2.001. Section 7.028(a), Education Code, is amended
	4233	+	SECTION 2.001. Chapter 4, Education Code, is amended by
	4234	+	adding Section 4.003 to read as follows:
	4235	+	Sec. 4.003. 60x30TX GOALS. To further the state's master
	4236	+	plan developed under Section 61.051 for at least 60 percent of all
	4237	+	adults aged 25 to 34 in this state to achieve a postsecondary degree
	4238	+	or workforce credential by 2030, the following goals are
	4239	+	established:
	4240	+	(1) at least 60 percent of all public school students
	4241	+	in each demographic category considered under Section 39.053(c)(3)
	4242	+	shall perform satisfactorily on a third grade reading assessment
	4243	+	instrument described by Section 48.109(b) by 2030; and
	4244	+	(2) at least 60 percent of all public school students
	4245	+	in each demographic category considered under Section 39.053(c)(3)
	4246	+	who graduate high school shall meet college, career, and military
	4247	+	readiness standards as provided by Section 48.110(e) by 2030.
	4248	+	SECTION 2.002. Section 7.028(a), Education Code, is amended
5063	4249		to read as follows:
5064		-	(a) Except as provided by Section 21.~~006~~(k), 22.~~093~~(l),
5065		-	~~22.096, 29.001(5), 29.010(a), or~~ 39.057, the agency may monitor
5066		-	~~compliance with requirements~~ applicable to a process or program
5067		-	~~provided by a school district,~~ campus, program, or school granted
5068		-	~~charters under Chapter 12,~~ including the process described by
5069		-	~~Subchapter F, Chapter 11, or a~~ program described by Subchapter B, C,
5070		-	~~D, E, F, H, or I, Chapter 29,~~ Subchapter A, Chapter 37, or Section
5071		-	~~38.003, [and the use of funds~~ provided for such a program under
5072		-	~~Subchapter C, Chapter 42,] only as~~ necessary to ensure:
	4250	+	(a) Except as provided by Section 29.001(5), 29.010(a), or
	4251	+	39.057, the agency may monitor compliance with requirements
	4252	+	applicable to a process or program provided by a school district,
	4253	+	campus, program, or school granted charters under Chapter 12,
	4254	+	including the process described by Subchapter F, Chapter 11, or a
	4255	+	program described by Subchapter B, C, D, E, F, H, or I, Chapter 29,
	4256	+	Subchapter A, Chapter 37, or Section 38.003, [and the use of funds
	4257	+	provided for such a program under Subchapter C, Chapter 42,] only as
	4258	+	necessary to ensure:
5073	4259		(1) compliance with federal law and regulations;
5074	4260		(2) financial accountability, including compliance
5075	4261		with grant requirements; [and]
5076	4262		(3) data integrity for purposes of:
5077	4263		(A) the Public Education Information Management
5078	4264		System (PEIMS); and
5079	4265		(B) accountability under Chapters 39 and 39A; and
5080	4266		(4) qualification for funding under Chapter 48.
5081		-	SECTION 2.002. Subchapter C, Chapter 7, Education Code, is
	4267	+	SECTION 2.003. Subchapter B, Chapter 7, Education Code, is
	4268	+	amended by adding Sections 7.038 and 7.039 to read as follows:
	4269	+	Sec. 7.038. 60x30TX PROGRESS REPORT. (a) Not later than
	4270	+	December 1 of each even-numbered year, the agency and the Texas
	4271	+	Higher Education Coordinating Board jointly shall prepare and
	4272	+	submit to the governor, the lieutenant governor, the speaker of the
	4273	+	house of representatives, and the standing legislative committees
	4274	+	with primary jurisdiction over public education a report assessing
	4275	+	the state's progress toward achieving the 60x30TX goals established
	4276	+	under Section 4.003.
	4277	+	(b) The report must:
	4278	+	(1) be combined with the Texas Higher Education
	4279	+	Coordinating Board's report on the state's master plan for higher
	4280	+	education required under Section 61.051(a-3); and
	4281	+	(2) analyze progress made toward the 60x30TX goals
	4282	+	disaggregated by each demographic category considered under
	4283	+	Section 39.053(c)(3).
	4284	+	Sec. 7.039. POSTSECONDARY OUTCOMES REPORTING. To track
	4285	+	progress toward the 60x30TX goals established under Section 4.003,
	4286	+	the agency shall:
	4287	+	(1) maintain an online reporting system regarding the
	4288	+	postsecondary outcomes of students enrolled in:
	4289	+	(A) each school district or open-enrollment
	4290	+	charter school; and
	4291	+	(B) each public high school; and
	4292	+	(2) collect data as necessary to maintain the
	4293	+	reporting system under Subdivision (1).
	4294	+	SECTION 2.004. Subchapter C, Chapter 7, Education Code, is
5082	4295		amended by adding Section 7.070 to read as follows:
5083	4296		Sec. 7.070. COORDINATION OF DATA COLLECTION. The
5084	4297		commissioner may enter into agreements with appropriate entities as
5085	4298		necessary to provide for the collection of data regarding college,
5086	4299		career, and military readiness of public school students, including
5087	4300		data maintained by:
5088	4301		(1) governmental agencies of the United States, this
5089	4302		state, or another state;
5090	4303		(2) political subdivisions of this state or another
5091	4304		state;
5092	4305		(3) public or private institutions of higher
5093	4306		education; and
5094	4307		(4) relevant private organizations.
5095		-	SECTION 2.003. Subchapter D, Chapter 11, Education Code, is
5096		-	amended by adding Sections 11.185 and 11.186 to read as follows:
5097		-	Sec. 11.185. EARLY CHILDHOOD LITERACY AND MATHEMATICS
5098		-	PROFICIENCY PLANS. (a) The board of trustees of each school
5099		-	district shall adopt and post on the district's Internet website
5100		-	early childhood literacy and mathematics proficiency plans that set
5101		-	specific annual goals for the following five school years to reach
5102		-	quantifiable goals for student performance in reading and
5103		-	mathematics at each campus.
5104		-	(b) Each plan adopted under Subsection (a) must:
5105		-	(1) identify annual goals for students in each group
5106		-	evaluated under the closing the gaps domain under Section
5107		-	39.053(c)(3);
5108		-	(2) include annual goals for aggregate student growth
5109		-	on the third grade reading or mathematics assessment instrument, as
5110		-	applicable, administered under Section 39.023 or on an alternative
5111		-	assessment instrument determined by the board of trustees;
	4308	+	SECTION 2.005. Subchapter D, Chapter 11, Education Code, is
	4309	+	amended by adding Section 11.185 to read as follows:
	4310	+	Sec. 11.185. 60x30TX DISTRICT GOALS. (a) To support the
	4311	+	achievement of the 60x30TX goals established under Section 4.003,
	4312	+	the board of trustees of a school district shall develop at least
	4313	+	three student outcome goals, with five-year performance targets for
	4314	+	each goal. At least one goal must support early childhood literacy.
	4315	+	(b) The board of trustees shall regularly monitor the
	4316	+	district's progress toward each goal developed under Subsection
	4317	+	(a), including progress toward those goals by students in each
	4318	+	demographic category considered under Section 39.053(c)(3).
	4319	+	(c) Not later than September 1 of each year, each school
	4320	+	district shall post on the district's Internet website a report
	4321	+	assessing the progress of the district and each campus in the
	4322	+	district toward achieving the goals developed under Subsection (a).
	4323	+	SECTION 2.006. Subchapter F, Chapter 11, Education Code, is
	4324	+	amended by adding Section 11.256 to read as follows:
	4325	+	Sec. 11.256. EARLY CHILDHOOD LITERACY PLAN. (a) To support
	4326	+	achieving the student outcome goal or goals regarding early
	4327	+	childhood literacy developed under Section 11.185, each school
	4328	+	district shall adopt and post on the district's Internet website an
	4329	+	early childhood literacy plan.
	4330	+	(b) The plan adopted under Subsection (a) must:
	4331	+	(1) provide for the use of a phonics curriculum that
	4332	+	uses systematic direct instruction in kindergarten through third
	4333	+	grade to ensure all students obtain necessary early literacy
	4334	+	skills;
	4335	+	(2) identify the reading instruments used to diagnose
	4336	+	student reading development and comprehension in prekindergarten
	4337	+	through third grade, including the purpose of each instrument and
	4338	+	the frequency of its use;
5112	4339		(3) provide for targeted professional development for
5113	4340		classroom teachers in kindergarten or first, second, or third grade
5114		-	who are assigned to campuses that the board of trustees identifies
5115		-	as not meeting the plan's goals;
	4341	+	that focuses on scientifically supported reading instructional
	4342	+	practices and the effective use of reading instruments intended to
	4343	+	diagnose reading development and comprehension;
5116	4344		(4) assign at least one district-level administrator
5117	4345		or employee of the regional education service center for the
5118	4346		district's region to:
5119	4347		(A) coordinate implementation of the plan; and
5120		-	(B) submit an annual report to the board of
5121		-	trustees on the district's progress toward the goals set under the
5122		-	plan; and
	4348	+	(B) submit a quarterly report to the board of
	4349	+	trustees of the district on the district's progress toward the
	4350	+	student outcome goal or goals regarding early childhood literacy
	4351	+	developed under Section 11.185, including aggregated results on
	4352	+	reading instruments administered in prekindergarten through third
	4353	+	grade during that quarter; and
5123	4354		(5) be reviewed annually by the board of trustees at a
5124	4355		public meeting.
5125		-	(c) Each plan adopted under Subsection (a) may set separate
5126		-	goals for students in a bilingual education or special language
5127		-	program under Subchapter B, Chapter 29.
5128		-	(d) The professional development provided to classroom
5129		-	teachers under Subsection (b)(3) must, as appropriate, consider the
5130		-	unique needs of students in a bilingual education or special
5131		-	language program under Subchapter B, Chapter 29.
5132		-	(e) A school district shall post the annual report described
5133		-	by Subsection (b)(4)(B) on the district's Internet website and on
5134		-	the Internet website, if any, of each campus in the district.
5135		-	Sec. 11.186. COLLEGE, CAREER, AND MILITARY READINESS PLANS.
5136		-	(a) The board of trustees of each school district shall adopt
5137		-	college, career, and military readiness plans that set specific
5138		-	annual goals for the following five school years to reach
5139		-	quantifiable goals for measures of student college, career, and
5140		-	military readiness at each campus.
5141		-	(b) Each plan adopted under Subsection (a) must:
5142		-	(1) identify annual goals for students in each group
5143		-	evaluated under the closing the gaps domain under Section
5144		-	39.053(c)(3);
5145		-	(2) include annual goals for aggregate student growth
5146		-	on college, career, and military readiness indicators evaluated
5147		-	under the student achievement domain under Section 39.053(c)(1);
5148		-	(3) assign at least one district-level administrator
5149		-	or employee of the regional education service center for the
5150		-	district's region to:
5151		-	(A) coordinate implementation of the plan; and
5152		-	(B) submit an annual report to the board of
5153		-	trustees on the district's progress toward the goals set under the
5154		-	plan; and
5155		-	(4) be reviewed annually by the board of trustees at a
5156		-	public meeting.
5157		-	(c) A school district shall post the annual report described
5158		-	by Subsection (b)(3)(B) on the district's Internet website and on
5159		-	the Internet website, if any, of each campus in the district.
5160		-	SECTION 2.004. Section 12.104(b), Education Code, as
5161		-	amended by Chapters 324 (S.B. 1488), 522 (S.B. 179), and 735 (S.B.
5162		-	1153), Acts of the 85th Legislature, Regular Session, 2017, is
5163		-	reenacted and amended to read as follows:
5164		-	(b) An open-enrollment charter school is subject to:
5165		-	(1) a provision of this title establishing a criminal
5166		-	offense;
5167		-	(2) the provisions in Chapter 554, Government Code;
5168		-	and
5169		-	(3) [(2)] a prohibition, restriction, or requirement,
5170		-	as applicable, imposed by this title or a rule adopted under this
5171		-	title, relating to:
5172		-	(A) the Public Education Information Management
5173		-	System (PEIMS) to the extent necessary to monitor compliance with
5174		-	this subchapter as determined by the commissioner;
5175		-	(B) criminal history records under Subchapter C,
5176		-	Chapter 22;
5177		-	(C) reading instruments and accelerated reading
5178		-	instruction programs under Section 28.006;
5179		-	(D) accelerated instruction under Section
5180		-	28.0211;
5181		-	(E) high school graduation requirements under
5182		-	Section 28.025;
5183		-	(F) special education programs under Subchapter
5184		-	A, Chapter 29;
5185		-	(G) bilingual education under Subchapter B,
5186		-	Chapter 29;
5187		-	(H) prekindergarten programs under Subchapter E
5188		-	or E-1, Chapter 29;
5189		-	(I) extracurricular activities under Section
5190		-	33.081;
5191		-	(J) discipline management practices or behavior
5192		-	management techniques under Section 37.0021;
5193		-	(K) health and safety under Chapter 38;
5194		-	(L) public school accountability under
5195		-	Subchapters B, C, D, F, G, and J, Chapter 39, and Chapter 39A;
5196		-	(M) the requirement under Section 21.006 to
5197		-	report an educator's misconduct;
5198		-	(N) intensive programs of instruction under
5199		-	Section 28.0213;
5200		-	(O) the right of a school employee to report a
5201		-	crime, as provided by Section 37.148; [and]
5202		-	(P) bullying prevention policies and procedures
5203		-	under Section 37.0832;
5204		-	(Q) the right of a school under Section 37.0052
5205		-	to place a student who has engaged in certain bullying behavior in a
5206		-	disciplinary alternative education program or to expel the student;
5207		-	[and]
5208		-	(R) the right under Section 37.0151 to report to
5209		-	local law enforcement certain conduct constituting assault or
5210		-	harassment;
5211		-	(S) [(P)] a parent's right to information
5212		-	regarding the provision of assistance for learning difficulties to
5213		-	the parent's child as provided by Sections 26.004(b)(11) and
5214		-	26.0081(c) and (d);
5215		-	(T) the early childhood literacy and mathematics
5216		-	proficiency plans under Section 11.185; and
5217		-	(U) the college, career, and military readiness
5218		-	plans under Section 11.186.
5219		-	SECTION 2.005. Section 21.048, Education Code, is amended
5220		-	by adding Subsection (a-2) to read as follows:
5221		-	(a-2) The board shall adopt rules that provide that in order
5222		-	to teach any grade level from prekindergarten through grade six a
5223		-	person must demonstrate proficiency in the science of teaching
5224		-	reading on a certification examination for each class of
5225		-	certificate issued by the board after January 1, 2021.
5226		-	SECTION 2.006. Subchapter B, Chapter 21, Education Code, is
	4356	+	(c) A school district shall post the quarterly report
	4357	+	described by Subsection (b)(4)(B) on the district's Internet
	4358	+	website.
	4359	+	(d) The agency shall assist school districts as necessary to
	4360	+	ensure compliance with this section.
	4361	+	SECTION 2.007. Section 12A.003(b), Education Code, is
	4362	+	amended to read as follows:
	4363	+	(b) A local innovation plan must:
	4364	+	(1) provide for a comprehensive educational program
	4365	+	for the district, which program may include:
	4366	+	(A) innovative curriculum, instructional
	4367	+	methods, and provisions regarding community participation, campus
	4368	+	governance, and parental involvement;
	4369	+	(B) except as provided by Section 12A.004(a),
	4370	+	modifications to the school day or year;
	4371	+	(C) provisions regarding the district budget and
	4372	+	sustainable program funding;
	4373	+	(D) accountability and assessment measures that
	4374	+	exceed the requirements of state and federal law; and
	4375	+	(E) any other innovations prescribed by the board
	4376	+	of trustees; and
	4377	+	(2) identify requirements imposed by this code that
	4378	+	inhibit the goals of the plan and from which the district should be
	4379	+	exempted on adoption of the plan, subject to Section 12A.004.
	4380	+	SECTION 2.008. Section 12A.004(a), Education Code, is
	4381	+	amended to read as follows:
	4382	+	(a) A local innovation plan may not provide for the
	4383	+	exemption of a district designated as a district of innovation from
	4384	+	the following provisions of this title:
	4385	+	(1) a state or federal requirement applicable to an
	4386	+	open-enrollment charter school operating under Subchapter D,
	4387	+	Chapter 12;
	4388	+	(2) Subchapters A, C, D, and E, Chapter 11, except that
	4389	+	a district may be exempt from Sections 11.1511(b)(5) and (14) and
	4390	+	Section 11.162;
	4391	+	(3) state curriculum and graduation requirements
	4392	+	adopted under Chapter 28; [and]
	4393	+	(4) academic and financial accountability and
	4394	+	sanctions under Chapters 39 and 39A; and
	4395	+	(5) the first day of instruction requirements under
	4396	+	Section 25.0811(a)(3).
	4397	+	SECTION 2.009. Subchapter B, Chapter 21, Education Code, is
5227	4398		amended by adding Sections 21.063 and 21.064 to read as follows:
5228		-	Sec. 21.063. TEACHER DESIGNATIONS ON CERTIFICATE. The
5229		-	board shall place on or remove from a teacher's certificate the
5230		-	appropriate designation issued to the teacher under Section
5231		-	21.3521:
5232		-	(1) after being notified by the agency of the issuance
5233		-	or removal of the designation; or
5234		-	(2) if the board determines that removal of the
5235		-	designation is necessary because of action taken against the
5236		-	teacher's certificate.
	4399	+	Sec. 21.063. TEACHER DESIGNATIONS ON CERTIFICATE. (a) The
	4400	+	board shall place the appropriate designation issued to a teacher
	4401	+	under Subchapter P on the teacher's certificate as soon as
	4402	+	practicable after being notified by the agency of the issuance of
	4403	+	the designation.
	4404	+	(b) The board shall remove a designation under Subchapter P
	4405	+	from a teacher's certificate on:
	4406	+	(1) expiration of the designation, unless the agency
	4407	+	notifies the board that the designation has been renewed; or
	4408	+	(2) revocation of the designation under Section
	4409	+	21.755(d).
5237	4410		Sec. 21.064. LEGACY MASTER TEACHER CERTIFICATIONS. (a)
5238	4411		The board shall recognize a master teacher certificate issued under
5239	4412		former Section 21.0481, 21.0482, 21.0483, or 21.0484 until the
5240	4413		certificate expires. The board shall note a designation of
5241	4414		"legacy" on the certificate.
5242	4415		(b) A master teacher certificate described by Subsection
5243	4416		(a) is not eligible for funding under the teacher incentive
5244	4417		allotment under Section 48.112.
5245		-	SECTION 2.007. Section 21.352(c), Education Code, is
	4418	+	SECTION 2.010. Sections 21.351(a) and (c), Education Code,
	4419	+	are amended to read as follows:
	4420	+	(a) The commissioner shall adopt a recommended appraisal
	4421	+	process and criteria on which to appraise the performance of
	4422	+	teachers. The criteria must be based on observable, job-related
	4423	+	behavior, including:
	4424	+	(1) a teacher's [teachers'] implementation of
	4425	+	discipline management procedures; and
	4426	+	(2) the performance of a teacher's [teachers']
	4427	+	students.
	4428	+	(c) Under the recommended appraisal process, an appraiser
	4429	+	must be the teacher's supervisor or a person approved by the board
	4430	+	of trustees. An appraiser who is a classroom teacher may not
	4431	+	appraise the performance of another classroom teacher who teaches
	4432	+	at the same school campus at which the appraiser teaches, unless it
	4433	+	is impractical because of the number of campuses or unless the
	4434	+	appraiser is in a supervisory role or is the chair of a department
	4435	+	or grade level whose job description includes classroom observation
	4436	+	responsibilities.
	4437	+	SECTION 2.011. Section 21.352(c), Education Code, is
5246	4438		amended to read as follows:
5247	4439		(c) Except as otherwise provided by this subsection,
5248	4440		appraisal must be done at least once for [during] each school year.
5249	4441		A teacher may be appraised less frequently if the teacher agrees in
5250	4442		writing and the teacher's most recent evaluation rated the teacher
5251	4443		as at least proficient, or the equivalent, and did not identify any
5252	4444		area of deficiency. A teacher who is appraised less frequently than
5253	4445		annually must be appraised at least once during each period of five
5254	4446		school years. The district shall maintain a written copy of the
5255	4447		evaluation of each teacher's performance in the teacher's personnel
5256	4448		file. Each teacher is entitled to receive a written copy of the
5257	4449		evaluation promptly on its completion. After receiving a written
5258	4450		copy of the evaluation, a teacher is entitled to a second appraisal
5259	4451		by a different appraiser or to submit a written rebuttal to the
5260	4452		evaluation to be attached to the evaluation in the teacher's
5261	4453		personnel file. The evaluation and any rebuttal may be given to
5262	4454		another school district at which the teacher has applied for
5263	4455		employment at the request of that district.
5264		-	SECTION 2.008. Subchapter H, Chapter 21, Education Code, is
5265		-	amended by adding Section 21.3521 to read as follows:
5266		-	Sec. 21.3521. LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM.
5267		-	(a) Subject to Subsection (b), a school district or open-enrollment
5268		-	charter school may designate a certified classroom teacher as a
5269		-	master, exemplary, or recognized teacher for a five-year period
5270		-	based on the results from single year or multiyear appraisals that
5271		-	comply with Section 21.351 or 21.352.
5272		-	(b) The commissioner shall establish performance and
5273		-	validity standards for each local optional teacher designation
5274		-	system. The performance standards:
5275		-	(1) must provide a mathematical possibility that all
5276		-	teachers eligible for a designation may earn the designation; and
5277		-	(2) may not require a district to use an assessment
5278		-	instrument adopted under Section 39.023 to evaluate teacher
5279		-	performance.
5280		-	(c) Notwithstanding performance standards established
5281		-	under Subsection (b), a classroom teacher that holds a National
5282		-	Board Certification issued by the National Board for Professional
5283		-	Teaching Standards may be designated as recognized.
5284		-	(d) The commissioner shall:
5285		-	(1) ensure that local optional teacher designation
5286		-	systems:
5287		-	(A) meet the requirements of this section; and
5288		-	(B) prioritize high needs campuses; and
5289		-	(2) enter into a memorandum of understanding with
5290		-	Texas Tech University to monitor the quality and fairness of local
5291		-	optional teacher designation systems.
5292		-	(e) The agency shall develop and provide technical
5293		-	assistance for school districts and open-enrollment charter
5294		-	schools that request assistance in implementing a local optional
5295		-	teacher designation system, including assistance in prioritizing
5296		-	high needs campuses.
5297		-	(f) A teacher has no vested property right in a teacher
5298		-	designation assigned to the teacher under this section. A teacher
5299		-	designation issued under this section is void in the determination
5300		-	that the designation was issued improperly. Subchapters C through
5301		-	H, Chapter 2001, Government Code, do not apply to the voiding of a
5302		-	teacher designation under this subsection.
5303		-	(g) The agency shall periodically conduct evaluations of
5304		-	the effectiveness of the local optional teacher designation systems
5305		-	under this section and the teacher incentive allotment under
5306		-	Section 48.112 and report the results of the evaluations to the
5307		-	legislature. A school district or open-enrollment charter school
5308		-	that has implemented a local optional teacher designation system or
5309		-	received funds under the teacher incentive allotment shall
5310		-	participate in the evaluations.
5311		-	(h) The agency shall collect information necessary to
5312		-	implement this section. Information otherwise confidential remains
	4456	+	SECTION 2.012. Section 21.355(d), Education Code, is
	4457	+	amended to read as follows:
	4458	+	(d) A school district or open-enrollment charter school
	4459	+	shall [may] give the agency information regarding the performance
	4460	+	of a teacher or administrator, including a document evaluating the
	4461	+	performance of a teacher or administrator currently or previously
	4462	+	employed by the district or school [for purposes of an
	4463	+	investigation conducted by the agency].
	4464	+	SECTION 2.013. Subchapter I, Chapter 21, Education Code, is
	4465	+	amended by adding Section 21.4023 to read as follows:
	4466	+	Sec. 21.4023. CLASSROOM TEACHER AND LIBRARIAN SALARY
	4467	+	INCREASE. (a) A classroom teacher or full-time librarian employed
	4468	+	by a school district or open-enrollment charter school in the
	4469	+	2019-2020 school year is, as long as the teacher or librarian is
	4470	+	employed by the same district or school, entitled to a salary that
	4471	+	is at least equal to the salary the teacher or librarian received
	4472	+	for the 2019-2020 school year.
	4473	+	(a-1) For the 2019-2020 school year, a school district or
	4474	+	open-enrollment charter school shall increase the salary of each
	4475	+	classroom teacher and full-time librarian employed by the district
	4476	+	or school in the 2018-2019 school year by at least $5,000. This
	4477	+	subsection expires September 1, 2020.
	4478	+	(b) The commissioner may adopt rules as necessary to
	4479	+	implement this section.
	4480	+	SECTION 2.014. Section 21.410(c), Education Code, is
	4481	+	amended to read as follows:
	4482	+	(c) The commissioner shall annually identify each high-need
	4483	+	campus in a school district using criteria established by the
	4484	+	commissioner by rule, including performance on the language arts
	4485	+	[reading] assessment instrument administered under Section 39.023.
	4486	+	The commissioner shall also use the criteria to rank campuses in
	4487	+	order of greatest need.
	4488	+	SECTION 2.015. Section 21.4551(c), Education Code, is
	4489	+	amended to read as follows:
	4490	+	(c) The commissioner by rule shall require a teacher to
	4491	+	attend a reading academy if the teacher provides instruction in
	4492	+	reading, mathematics, science, or social studies to students at the
	4493	+	sixth, seventh, or eighth grade level at a campus that fails to
	4494	+	satisfy any standard under Section 39.054(e) on the basis of
	4495	+	student performance on the language arts [reading] assessment
	4496	+	instrument administered under Section 39.023(a) to students in any
	4497	+	grade level at the campus.
	4498	+	SECTION 2.016. Chapter 21, Education Code, is amended by
	4499	+	adding Subchapter P to read as follows:
	4500	+	SUBCHAPTER P. RECOGNIZED, EXEMPLARY, AND MASTER TEACHER
	4501	+	DESIGNATIONS
	4502	+	Sec. 21.751. DEFINITION. In this subchapter, "classroom
	4503	+	teacher" includes an individual who:
	4504	+	(1) is a teacher of record who teaches at least half
	4505	+	the average number of students for a teaching assignment at the
	4506	+	school campus at which the teacher is employed; and
	4507	+	(2) satisfies the amount of teaching time requirement
	4508	+	in the definition of a classroom teacher under Section 5.001 by
	4509	+	providing educator leadership, including collaborating with,
	4510	+	mentoring, or supporting other teachers.
	4511	+	Sec. 21.752. RECOGNIZED, EXEMPLARY, AND MASTER TEACHER
	4512	+	DESIGNATIONS. (a) To recognize the performance of teachers in this
	4513	+	state, the commissioner shall:
	4514	+	(1) establish an approval process for school districts
	4515	+	and open-enrollment charter schools to designate a teacher as a
	4516	+	recognized, exemplary, or master teacher and include the
	4517	+	designation on the teacher's teaching certificate;
	4518	+	(2) develop and provide technical assistance for
	4519	+	school districts and open-enrollment charter schools in making
	4520	+	teacher designations, including:
	4521	+	(A) methods to involve staff in locally
	4522	+	developing the process for designating teachers under this
	4523	+	subchapter; and
	4524	+	(B) assistance focusing on problems faced by
	4525	+	rural school districts; and
	4526	+	(3) subject to Subsection (b), authorize school
	4527	+	districts and open-enrollment charter schools to make teacher
	4528	+	designations for a five-year period, provided that the district's
	4529	+	or school's teacher designation system meets the requirements under
	4530	+	Section 21.754.
	4531	+	(b) The commissioner shall verify that the appraisals of a
	4532	+	representative sample of classroom teachers meet the requirements
	4533	+	for teacher designations under this subchapter. Verification may
	4534	+	include on-site classroom observations or observations by video or
	4535	+	audio recording of classroom sessions.
	4536	+	(c) The commissioner may not rely solely on student
	4537	+	performance on an assessment instrument administered under Section
	4538	+	39.023 in determining whether a school district's or
	4539	+	open-enrollment charter school's teacher designation system
	4540	+	complies with this subchapter.
	4541	+	Sec. 21.753. ELIGIBILITY CRITERIA FOR TEACHER DESIGNATION.
	4542	+	(a) To be eligible for a teacher designation under this subchapter,
	4543	+	a classroom teacher must:
	4544	+	(1) hold an eligible teaching certificate issued under
	4545	+	Subchapter B; and
	4546	+	(2) satisfy any additional requirements adopted by the
	4547	+	school district or open-enrollment charter school at which the
	4548	+	teacher is employed.
	4549	+	(b) A school district or open-enrollment charter school may
	4550	+	designate a classroom teacher as recognized if the classroom
	4551	+	teacher:
	4552	+	(1) holds a National Board Certification issued by the
	4553	+	National Board for Professional Teaching Standards; and
	4554	+	(2) meets the other requirements of Subsection (a).
	4555	+	(c) Except as provided by Subsection (d), the commissioner
	4556	+	may approve a school district or open-enrollment charter school to
	4557	+	designate a teacher under this subchapter if the district's or
	4558	+	school's designation system under Section 21.754 provides
	4559	+	sufficient information to distinguish that among teachers in the
	4560	+	state in similar teaching assignments, the teacher is:
	4561	+	(1) for a recognized teacher, in the top 33 percent in
	4562	+	teaching performance;
	4563	+	(2) for an exemplary teacher, in the top 20 percent in
	4564	+	teaching performance; or
	4565	+	(3) for a master teacher, in the top 5 percent of
	4566	+	teaching performance.
	4567	+	(d) The commissioner may raise the percentages required
	4568	+	under Subsection (c) to ensure consistency of teacher performance
	4569	+	standards over multiple school years as statewide performance
	4570	+	improves, including for the purpose of teacher designation
	4571	+	renewals.
	4572	+	Sec. 21.754. TEACHER DESIGNATION SYSTEMS. (a) A school
	4573	+	district's or open-enrollment charter school's teacher designation
	4574	+	system must incorporate:
	4575	+	(1) an educator appraisal system that complies with
	4576	+	Section 21.351 or 21.352, including incorporating student
	4577	+	performance, which may be measured by student performance over
	4578	+	multiple school years;
	4579	+	(2) student perception surveys for the third grade
	4580	+	level and higher;
	4581	+	(3) educator leadership, including collaborating
	4582	+	with, mentoring, or supporting other teachers;
	4583	+	(4) reliable observation-based appraisal components,
	4584	+	including the use of independent observers and processes to ensure
	4585	+	inter-rater reliability of observers; and
	4586	+	(5) reliable underlying student assessments used to
	4587	+	evaluate student performance, including test security protocols
	4588	+	and defined testing windows.
	4589	+	(a-1) A school district's or open-enrollment charter
	4590	+	school's teacher designation system is not required to incorporate
	4591	+	the surveys required under Subsection (a)(2) until the 2022-2023
	4592	+	school year. This subsection expires September 1, 2023.
	4593	+	(b) A district's or school's educator appraisal system under
	4594	+	Subsection (a)(1) may not rely solely on student performance on
	4595	+	assessment instruments administered under Section 39.023.
	4596	+	(c) The commissioner may not authorize a school district or
	4597	+	open-enrollment charter school to make teacher designations under
	4598	+	this subchapter until the district's or school's teacher
	4599	+	designation system has evaluated classroom teachers in compliance
	4600	+	with Subsection (a).
	4601	+	(d) The commissioner may develop an auditing process for
	4602	+	teacher designation systems to maintain quality and ensure
	4603	+	compliance. The commissioner may, as necessary:
	4604	+	(1) revoke the commissioner's approval of a
	4605	+	designation system;
	4606	+	(2) require modifications to a designation system to
	4607	+	retain the commissioner's approval;
	4608	+	(3) suspend eligibility for funding for a district's
	4609	+	or school's noncompliance with an audit; or
	4610	+	(4) recover funds under Section 48.272 from a district
	4611	+	or school that has a designation system that is out of compliance or
	4612	+	for which the commissioner's approval has been revoked.
	4613	+	(e) The commissioner may adopt necessary reporting
	4614	+	processes and timelines for the auditing process under Subsection
	4615	+	(d).
	4616	+	Sec. 21.755. VALIDITY AND EXPIRATION OF TEACHER
	4617	+	DESIGNATION. (a) A teacher designation under this subchapter:
	4618	+	(1) is valid until the teacher designation expires
	4619	+	regardless of whether the teacher:
	4620	+	(A) changes teaching assignment;
	4621	+	(B) transfers school campuses; or
	4622	+	(C) is employed by another school district or
	4623	+	open-enrollment charter school; and
	4624	+	(2) expires at the end of the school year during which
	4625	+	the fifth anniversary of the date on which the teacher receives the
	4626	+	designation occurs.
	4627	+	(b) A teacher has no vested property right in a teacher
	4628	+	designation assigned to the teacher under this subchapter.
	4629	+	(c) A teacher designation issued under this subchapter is
	4630	+	void on the determination that the designation was issued
	4631	+	improperly. Subchapters C through H, Chapter 2001, Government
	4632	+	Code, do not apply to the voiding of a teacher designation under
	4633	+	this subsection.
	4634	+	(d) The State Board for Educator Certification may revoke or
	4635	+	suspend a certificate holder's teacher designation issued under
	4636	+	this subchapter.
	4637	+	Sec. 21.756. MULTIPLE DESIGNATIONS PROHIBITED. A teacher
	4638	+	may receive only one teacher designation under this subchapter at
	4639	+	any time. If a teacher qualifies for:
	4640	+	(1) both a recognized and exemplary teacher
	4641	+	designation, the teacher receives the exemplary designation; and
	4642	+	(2) either a recognized or exemplary designation and a
	4643	+	master designation, the teacher receives a master designation.
	4644	+	Sec. 21.757. INFORMATION RELATING TO TEACHER AND STUDENT
	4645	+	PERFORMANCE. (a) The agency, or an entity the agency contracts
	4646	+	with to implement this subchapter, may access information required
	4647	+	to verify an eligibility determination under this subchapter,
	4648	+	including information from the school district or open-enrollment
	4649	+	charter school at which the teacher is or was employed relating to
	4650	+	the performance of the teacher's current or previous students.
	4651	+	(b) The agency shall collect information necessary to
	4652	+	implement this subchapter, which may include student performance
	4653	+	information for a sample of students across the state and
	4654	+	information regarding educator appraisals.
	4655	+	(c) A school district or open-enrollment charter school
	4656	+	shall provide any information required under this subchapter.
	4657	+	(d) Information otherwise confidential remains
5313	4658		confidential and is not subject to Chapter 552, Government Code.
5314		-	(i) The commissioner may adopt fees to implement this
5315		-	section. A fee adopted by the agency under this section is not
	4659	+	Sec. 21.758. FEES. (a) The commissioner may adopt fees for
	4660	+	the authorization of school districts and open-enrollment charter
	4661	+	schools to make teacher designations under this subchapter.
	4662	+	(b) A fee adopted by the agency under this subchapter is not
5316	4663		subject to Sections 2001.0045 and 2001.0221, Government Code.
5317		-	(j) The commissioner may adopt rules to implement this
5318		-	section. A decision made by the commissioner under this section is
5319		-	final and may not be appealed.
5320		-	SECTION 2.009. Section 21.458, Education Code, is amended
5321		-	by adding Subsections (a-1), (b-1), (f), (f-1), and (g) and
5322		-	amending Subsections (b) and (d) to read as follows:
5323		-	(a-1) To be assigned as a mentor, a teacher must agree to
5324		-	serve as a mentor teacher for at least one school year. The
5325		-	assignment must begin not later than the 30th day of employment of
5326		-	the classroom teacher to whom the mentor teacher is assigned. A
5327		-	district must agree to assign a mentor to a new classroom teacher
5328		-	for at least two school years.
5329		-	(b) The commissioner shall adopt rules necessary to
5330		-	administer this section, including rules concerning the duties and
5331		-	qualifications of a teacher who serves as a mentor and the number of
5332		-	classroom teachers that may be assigned to a mentor. The rules
5333		-	concerning qualifications must require that to serve as a mentor a
5334		-	teacher must:
5335		-	(1) complete a research-based mentor and induction
5336		-	training program approved by the commissioner;
5337		-	(2) complete a mentor training program provided by the
5338		-	district; [and]
5339		-	(3) have at least three complete years of teaching
5340		-	experience with a superior record of assisting students, as a
5341		-	whole, in achieving improvement in student performance; and
5342		-	(4) demonstrate interpersonal skills, instructional
5343		-	effectiveness, and leadership skills.
5344		-	(b-1) A school district must provide training to mentor
5345		-	teachers and any appropriate district and campus employees who work
5346		-	with the classroom teacher or supervise the classroom teacher. The
5347		-	training must be completed by the mentor teacher and the district
5348		-	and campus employees before the beginning of the school year. The
5349		-	district shall also provide supplemental training to mentor
5350		-	teachers and employees during the school year. The training must
5351		-	include content related to best mentorship practices.
5352		-	(d) In adopting rules under this section [Subsection (c)],
5353		-	the commissioner shall rely on research-based mentoring programs
5354		-	that, through external evaluation, have demonstrated success.
5355		-	(f) A mentor teacher must meet with each classroom teacher
5356		-	assigned to the mentor not less than 12 hours each semester.
5357		-	Observations of the mentor by the classroom teacher being mentored
5358		-	or of the classroom teacher being mentored by the mentor may count
5359		-	toward the 12 hours of meeting time required for the semester.
5360		-	Except as provided by Subsection (f-1), the mentoring sessions must
5361		-	address the following topics:
5362		-	(1) orientation to the context, policies, and
5363		-	practices of the school district;
5364		-	(2) data-driven instructional practices;
5365		-	(3) specific instructional coaching cycles, including
5366		-	coaching regarding conferences between parents and the classroom
5367		-	teacher;
5368		-	(4) professional development; and
5369		-	(5) professional expectations.
5370		-	(f-1) Subject to approval by the agency, in determining the
5371		-	topics to be addressed in the mentoring sessions, a school district
5372		-	may create an appropriate curriculum that meets the district needs.
5373		-	(g) A school district must:
5374		-	(1) designate a specific time during the regularly
5375		-	contracted school day for meetings between mentor teachers and
5376		-	classroom teachers assigned to a mentor; and
5377		-	(2) schedule release time or a reduced teaching load
5378		-	for mentor teachers and classroom teachers under this section to
5379		-	facilitate mentoring activities, including classroom observations
5380		-	or participation in supportive coaching.
5381		-	SECTION 2.010. Subchapter J, Chapter 21, Education Code, is
5382		-	amended by adding Section 21.465 to read as follows:
5383		-	Sec. 21.465. AUTISM TRAINING. (a) A school district may
5384		-	provide a salary incentive or similar compensation to a teacher who
5385		-	completes training provided by a regional education service center
5386		-	relating to autism.
5387		-	(b) A school district that decides to provide an incentive
5388		-	or compensation under Subsection (a) shall adopt a policy to
5389		-	implement this section.
5390		-	SECTION 2.011. Effective September 1, 2020, Section 25.085,
5391		-	Education Code, is amended by adding Subsection (i) to read as
5392		-	follows:
	4664	+	Sec. 21.759. STUDENT PERFORMANCE STUDY. (a) The
	4665	+	commissioner shall periodically conduct a study using an external
	4666	+	organization to determine the impact of the teacher designations
	4667	+	issued under this subchapter on student performance.
	4668	+	(b) The commissioner shall make recommendations as
	4669	+	necessary to the governor and the legislature to improve the
	4670	+	quality of and impact on student performance of teacher
	4671	+	designations issued under this subchapter.
	4672	+	Sec. 21.760. ADVISORY COMMITTEE OR PANEL. (a) The
	4673	+	commissioner may appoint a committee or panel to advise, make
	4674	+	recommendations, or make determinations relating to any duties
	4675	+	assigned to the commissioner under this subchapter.
	4676	+	(b) A committee or panel appointed under this section is not
	4677	+	subject to Chapter 2110, Government Code.
	4678	+	Sec. 21.761. RULES; FINALITY OF DECISIONS. (a) The
	4679	+	commissioner may adopt rules to implement this subchapter.
	4680	+	(b) A decision made by the commissioner under this
	4681	+	subchapter is final and may not be appealed.
	4682	+	SECTION 2.017. Section 25.0811(a), Education Code, is
	4683	+	amended to read as follows:
	4684	+	(a) Except as provided by this section, a school district
	4685	+	may not begin instruction for students for a school year before the
	4686	+	fourth Monday in August. A school district may:
	4687	+	(1) begin instruction for students for a school year
	4688	+	before the fourth Monday in August if the district operates a
	4689	+	year-round system under Section 25.084; [or]
	4690	+	(2) begin instruction for students for a school year
	4691	+	on or after the first Monday in August at a campus or at not more
	4692	+	than 20 percent of the campuses in the district if:
	4693	+	(A) the district has a student enrollment of
	4694	+	190,000 or more;
	4695	+	(B) the district at the beginning of the school
	4696	+	year provides, financed with local funds, days of instruction for
	4697	+	students at the campus or at each of the multiple campuses, in
	4698	+	addition to the minimum [number of days of] instruction time
	4699	+	required under Section 25.081;
	4700	+	(C) the campus or each of the multiple campuses
	4701	+	is [are] undergoing comprehensive reform, as determined by the
	4702	+	board of trustees of the district; and
	4703	+	(D) a majority of the students at the campus or at
	4704	+	each of the multiple campuses are educationally disadvantaged; or
	4705	+	(3) begin instruction for students for a school year
	4706	+	on or after the third Monday in August if the district is designated
	4707	+	as a district of innovation under Chapter 12A.
	4708	+	SECTION 2.018. Section 25.085, Education Code, is amended
	4709	+	by adding Subsection (i) to read as follows:
5393	4710		(i) Notwithstanding any other provision of this section, a
5394	4711		student enrolled in a school district is not required to attend
5395	4712		school for any additional instructional days described by Section
5396	4713		48.0051.
5397		-	SECTION 2.~~012~~. Section 28.006, Education Code, is amended
5398		-	by amending Subsections (b), (c), (d), and (f) and adding
5399		-	Subsections (b-1), (c-2), (c-3), and (l) to read as follows:
	4714	+	SECTION 2.019. Section 28.006, Education Code, is amended
	4715	+	by amending Subsections (b), (c), (c-1), (d), and (f) and adding
	4716	+	Subsections (b-1), (b-2), (c-2), (c-3), and (l) to read as follows:
5400	4717		(b) The commissioner shall adopt a list of reading
5401	4718		instruments that a school district may use to diagnose student
5402	4719		reading development and comprehension. For use in diagnosing the
5403	4720		reading development and comprehension of kindergarten students,
5404	4721		the commissioner shall adopt a [include on the commissioner's list
5405	4722		at least two] multidimensional assessment tool that includes
5406	4723		[tools. A multidimensional assessment tool on the commissioner's
5407	4724		list must either include] a reading instrument and tests [test] at
5408	4725		least three developmental skills, including literacy[, or test at
5409	4726		least two developmental skills, other than literacy, and be
5410	4727		administered in conjunction with a separate reading instrument that
5411	4728		is on a list adopted under this subsection]. A multidimensional
5412	4729		assessment tool administered as provided by this subsection is
5413	4730		considered to be a reading instrument for purposes of this section.
5414	4731		A district-level committee established under Subchapter F, Chapter
5415	4732		11, may adopt a list of reading instruments for use in the district
5416	4733		in a grade level other than kindergarten in addition to the reading
5417	4734		instruments on the commissioner's list. Each reading instrument
5418	4735		adopted by the commissioner or a district-level committee must be
5419	4736		based on scientific research concerning reading skills development
5420	4737		and reading comprehension. A list of reading instruments adopted
5421	4738		under this subsection must provide for diagnosing the reading
5422	4739		development and comprehension of students participating in a
5423	4740		program under Subchapter B, Chapter 29.
5424	4741		(b-1) The commissioner may approve an alternative reading
5425	4742		instrument for use in diagnosing the reading development and
5426	4743		comprehension of kindergarten students that complies with the
5427	4744		requirements under Subsection (b).
	4745	+	(b-2) The agency may develop reading instruments for
	4746	+	purposes of this section.
5428	4747		(c) Each school district shall administer, at the
5429	4748		[kindergarten and] first and second grade levels, a reading
5430	4749		instrument on the list adopted by the commissioner or by the
5431	4750		district-level committee. The district shall administer the
5432	4751		reading instrument in accordance with the commissioner's
5433	4752		recommendations under Subsection (a)(1).
	4753	+	(c-1) Each school district shall administer at the
	4754	+	beginning of the seventh grade a reading instrument adopted by the
	4755	+	commissioner to each student whose performance on the assessment
	4756	+	instrument in language arts [reading] administered under Section
	4757	+	39.023(a) to the student in grade six did not demonstrate reading
	4758	+	proficiency, as determined by the commissioner. The district shall
	4759	+	administer the reading instrument in accordance with the
	4760	+	commissioner's recommendations under Subsection (a)(1).
5434	4761		(c-2) Each school district shall administer at the
5435	4762		kindergarten level a reading instrument adopted by the commissioner
5436	4763		under Subsection (b) or approved by the commissioner under
5437	4764		Subsection (b-1). The district shall administer the reading
5438	4765		instrument in accordance with the commissioner's recommendations
5439	4766		under Subsection (a)(1).
5440	4767		(c-3) The commissioner by rule shall determine the
5441	4768		performance on the reading instrument adopted under Subsection (b)
5442	4769		that indicates kindergarten readiness.
5443	4770		(d) The superintendent of each school district shall:
5444	4771		(1) report to the commissioner and the board of
5445	4772		trustees of the district the results of the reading instruments;
5446		-	(2) not later than the 60th ~~calendar~~ day after the date
5447		-	~~on which~~ a reading instrument was administered report, in writing,
5448		-	~~to a~~ student's parent or guardian the student's results on the
5449		-	~~[reading]~~ instrument; and
	4773	+	(2) not later than the 60th day after the date on which
	4774	+	a reading instrument was administered report, in writing, to a
	4775	+	student's parent or guardian the student's results on the [reading]
	4776	+	instrument; and
5450	4777		(3) using the school readiness certification system
5451	4778		provided to the school district in accordance with Section
5452	4779		29.161(e), report electronically each student's raw score on the
5453	4780		reading instrument to the agency for use in the school readiness
5454	4781		certification system.
5455	4782		(f) The agency shall ensure at least one reading instrument
5456	4783		for each grade level for which a reading instrument is required to
5457	4784		be administered under this section is available to school districts
5458	4785		at no cost. [This section may be implemented only if funds are
5459	4786		appropriated for administering the reading instruments. Funds,
5460	4787		other than local funds, may be used to pay the cost of administering
5461	4788		a reading instrument only if the instrument is on the list adopted
5462	4789		by the commissioner.]
5463	4790		(l) The commissioner may adopt rules as necessary to
5464	4791		implement this section. Section 2001.0045, Government Code, does
5465	4792		not apply to rules adopted under this subsection.
5466		-	SECTION 2.013. Subchapter A, Chapter 28, Education Code, is
5467		-	amended by adding Section 28.0062 to read as follows:
5468		-	Sec. 28.0062. READING STANDARDS FOR KINDERGARTEN THROUGH
5469		-	THIRD GRADE. (a) Each school district and open-enrollment charter
5470		-	school shall:
5471		-	(1) provide for the use of a phonics curriculum that
5472		-	uses systematic direct instruction in kindergarten through third
5473		-	grade to ensure all students obtain necessary early literacy
5474		-	skills;
5475		-	(2) ensure that:
5476		-	(A) not later than the 2021-2022 school year,
5477		-	each classroom teacher in kindergarten or first, second, or third
5478		-	grade and each principal at a campus with kindergarten or first,
5479		-	second, or third grade has attended a teacher literacy achievement
5480		-	academy developed under Section 21.4552; and
5481		-	(B) each classroom teacher and each principal
5482		-	initially employed in a grade level or at a campus described by
5483		-	Paragraph (A) for the 2021-2022 school year or a subsequent school
5484		-	year has attended a teacher literacy achievement academy developed
5485		-	under Section 21.4552 before the teacher's or principal's first
5486		-	year of placement in that grade level or campus; and
5487		-	(3) certify to the agency that the district or school:
5488		-	(A) prioritizes placement of highly effective
5489		-	teachers in kindergarten through second grade; and
5490		-	(B) has integrated reading instruments used to
5491		-	diagnose reading development and comprehension to support each
5492		-	student in prekindergarten through third grade.
5493		-	(b) The agency shall provide assistance to school districts
5494		-	and open-enrollment charter schools in complying with the
5495		-	requirements under this section.
5496		-	(c) The agency shall:
5497		-	(1) monitor the implementation of this section; and
5498		-	(2) periodically report to the legislature on the
5499		-	implementation of this section and the effectiveness of this
5500		-	section in improving educational outcomes.
5501		-	(d) The commissioner shall establish an advisory board to
5502		-	assist the agency in fulfilling the agency's duties under this
5503		-	section. Chapter 2110, Government Code, does not apply to the
5504		-	advisory board.
5505		-	(e) The commissioner may adopt rules to implement this
5506		-	section.
5507		-	SECTION 2.014. Section 28.025(c), Education Code, is
	4793	+	SECTION 2.020. Section 28.0061(b), Education Code, is
	4794	+	amended to read as follows:
	4795	+	(b) A school district is eligible to participate in the
	4796	+	pilot program if, as determined by the commissioner, the district
	4797	+	has low student performance on:
	4798	+	(1) a reading instrument administered in accordance
	4799	+	with Section 28.006(c); or
	4800	+	(2) a third grade language arts [reading] assessment
	4801	+	instrument administered under Section 39.023(a).
	4802	+	SECTION 2.021. Section 28.0211(a), Education Code, is
	4803	+	amended to read as follows:
	4804	+	(a) Except as provided by Subsection (b) or (e), a student
	4805	+	may not be promoted to:
	4806	+	(1) the sixth grade program to which the student would
	4807	+	otherwise be assigned if the student does not perform
	4808	+	satisfactorily on the fifth grade mathematics and language arts
	4809	+	[reading] assessment instruments under Section 39.023; or
	4810	+	(2) the ninth grade program to which the student would
	4811	+	otherwise be assigned if the student does not perform
	4812	+	satisfactorily on the eighth grade mathematics and language arts
	4813	+	[reading] assessment instruments under Section 39.023.
	4814	+	SECTION 2.022. Section 28.025(c), Education Code, is
5508	4815		amended to read as follows:
5509	4816		(c) A person may receive a diploma if the person is eligible
5510	4817		for a diploma under Section 28.0251. In other cases, a student may
5511	4818		graduate and receive a diploma only if:
5512	4819		(1) the student successfully completes the curriculum
5513	4820		requirements identified by the State Board of Education under
5514	4821		Subsection (a) and complies with Sections 28.0256 and [Section]
5515	4822		39.025; or
5516	4823		(2) the student successfully completes an
5517	4824		individualized education program developed under Section 29.005.
5518		-	SECTION 2.~~015~~. Subchapter B, Chapter 28, Education Code, is
	4825	+	SECTION 2.023. Subchapter B, Chapter 28, Education Code, is
5519	4826		amended by adding Section 28.0256 to read as follows:
5520	4827		Sec. 28.0256. FINANCIAL AID APPLICATION REQUIREMENT FOR
5521	4828		HIGH SCHOOL GRADUATION. (a) Before graduating from high school,
5522	4829		each student must complete and submit a free application for
5523		-	federal student aid (FAFSA) or a Texas application ~~for state~~
5524		-	financial aid (TASFA).
	4830	+	federal student aid (FAFSA) or, if applicable, a Texas application
	4831	+	for state financial aid (TASFA).
5525	4832		(b) A student is not required to comply with Subsection (a)
5526	4833		if:
5527	4834		(1) the student's parent or other person standing in
5528	4835		parental relation submits a signed form indicating that the parent
5529	4836		or other person authorizes the student to decline to complete and
5530		-	submit the financial aid application;
	4837	+	submit the financial aid application; or
5531	4838		(2) the student signs and submits the form described
5532	4839		by Subdivision (1) on the student's own behalf if the student is 18
5533	4840		years of age or older or the student's disabilities of minority have
5534		-	been removed for general purposes under Chapter 31, Family Code; or
5535		-	(3) a school counselor authorizes the student to
5536		-	decline to complete and submit the financial aid application for
5537		-	good cause, as determined by the school counselor.
5538		-	(c) A school district or open-enrollment charter school
5539		-	shall adopt a form to be used for purposes of Subsection (b). The
5540		-	form must be:
5541		-	(1) approved by the agency; and
5542		-	(2) made available in English, Spanish, and any other
5543		-	language spoken by a majority of the students enrolled in a
5544		-	bilingual education or special language program under Subchapter B,
5545		-	Chapter 29, in the district or school.
5546		-	(d) If a school counselor notifies a school district whether
5547		-	a student has complied with this section for purposes of
5548		-	determining whether the student meets high school graduation
5549		-	requirements under Section 28.025, the school counselor may only
5550		-	indicate whether the student has complied with this section and may
5551		-	not indicate the manner in which the student complied.
5552		-	(e) The commissioner shall adopt rules as necessary to
5553		-	implement this section, including rules to:
5554		-	(1) establish:
5555		-	(A) a timeline for:
5556		-	(i) the distribution to students of the
5557		-	free application for federal student aid or Texas application for
5558		-	state financial aid and the form adopted under Subsection (c); and
5559		-	(ii) the submission of a form under
5560		-	Subsection (b);
5561		-	(B) standards regarding the information that a
5562		-	school district or open-enrollment charter school must provide to
5563		-	students regarding:
5564		-	(i) in accordance with Section
5565		-	33.007(b)(5), instructions for filling out the free application for
5566		-	federal student aid or Texas application for state financial aid;
5567		-	and
5568		-	(ii) the options available to a student
5569		-	under Subsection (b) if the student wishes to decline to complete
5570		-	and submit a financial aid application; and
5571		-	(C) the method by which a student must provide to
5572		-	a school district or open-enrollment charter school proof that the
5573		-	student has completed and submitted the free application for
5574		-	federal student aid or Texas application for state financial aid as
5575		-	required by this section;
5576		-	(2) require each school district to report to the
5577		-	agency:
5578		-	(A) the number of students who completed and
5579		-	submitted a financial aid application under Subsection (a); and
5580		-	(B) the number of students who received an
5581		-	exception from complying with Subsection (a) under Subsection (b);
5582		-	and
5583		-	(3) ensure compliance with federal law regarding
5584		-	confidentiality of student educational information, including the
5585		-	Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
5586		-	Section 1232g), and any state law relating to the privacy of student
5587		-	information.
5588		-	(f) The agency shall establish an advisory committee to
5589		-	assist the agency in adopting rules under Subsection (e) to
5590		-	implement this section and to develop recommendations for that
5591		-	purpose. The advisory committee is composed of:
5592		-	(1) school counselors;
5593		-	(2) school administrators; and
5594		-	(3) stakeholders to represent the needs of interested
5595		-	students.
5596		-	(g) Not later than January 1, 2021, the agency shall report
5597		-	the advisory committee's recommendations to the standing committee
5598		-	of each house of the legislature with jurisdiction over public
5599		-	education. Subsection (f) and this subsection expire January 1,
5600		-	2023.
5601		-	SECTION 2.016. Subchapter B, Chapter 29, Education Code, is
	4841	+	been removed for general purposes under Chapter 31, Family Code.
	4842	+	(c) The agency, in consultation with the Texas Higher
	4843	+	Education Coordinating Board, shall develop a form to be used by a
	4844	+	school district or open-enrollment charter school for purposes of
	4845	+	Subsection (b).
	4846	+	SECTION 2.024. Section 29.056(g), Education Code, is
	4847	+	amended to read as follows:
	4848	+	(g) A district may transfer a student of limited English
	4849	+	proficiency out of a bilingual education or special language
	4850	+	program for the first time or a subsequent time if the student is
	4851	+	able to participate equally in a regular all-English instructional
	4852	+	program as determined by:
	4853	+	(1) agency-approved tests administered at the end of
	4854	+	each school year to determine the extent to which the student has
	4855	+	developed oral and written language proficiency and specific
	4856	+	language skills in English;
	4857	+	(2) satisfactory performance on the language arts
	4858	+	[reading] assessment instrument under Section 39.023(a) or an
	4859	+	English language arts assessment instrument under Section
	4860	+	39.023(c), as applicable, with the assessment instrument
	4861	+	administered in English, or, if the student is enrolled in the first
	4862	+	or second grade, an achievement score at or above the 40th
	4863	+	percentile in the reading and language arts sections of an English
	4864	+	standardized test approved by the agency; and
	4865	+	(3) agency-approved criterion-referenced tests and
	4866	+	the results of a subjective teacher evaluation.
	4867	+	SECTION 2.025. Subchapter B, Chapter 29, Education Code, is
5602	4868		amended by adding Section 29.065 to read as follows:
5603	4869		Sec. 29.065. ASSISTANCE BY AGENCY. The agency shall
5604	4870		develop tools to assist school districts and open-enrollment
5605	4871		charter schools in implementing bilingual education and special
5606	4872		language programs under this chapter.
5607		-	SECTION 2.~~017~~. Section 29.122, Education Code, is amended
	4873	+	SECTION 2.026. Section 29.122, Education Code, is amended
5608	4874		to read as follows:
5609	4875		Sec. 29.122. ESTABLISHMENT. (a) Using criteria established
5610	4876		by the State Board of Education, each school district shall adopt a
5611	4877		process for identifying and serving gifted and talented students in
5612	4878		the district and shall establish a program for those students in
5613	4879		each grade level. A district may establish a shared services
5614	4880		arrangement program with one or more other districts.
5615	4881		(b) Each school district shall adopt a policy regarding the
5616	4882		use of funds to support the district's program for gifted and
5617	4883		talented students.
5618		-	SECTION 2.~~018~~. Subchapter D, Chapter 29, Education Code, is
	4884	+	SECTION 2.027. Subchapter D, Chapter 29, Education Code, is
5619	4885		amended by adding Section 29.124 to read as follows:
5620	4886		Sec. 29.124. CERTIFICATION AND REPORTING REQUIRED. (a)
5621	4887		Each school district shall annually certify to the commissioner
5622	4888		that the district has established a program for gifted and talented
5623	4889		students as required by this subchapter and that the program is
5624	4890		consistent with the state plan developed under Section 29.123.
5625	4891		(b) If the commissioner determines that a school district
5626	4892		has failed to comply with Subsection (a) for a school year, the
5627	4893		commissioner shall reduce the total amount of funding to which the
5628	4894		district is entitled under Chapter 48 for that school year by an
5629	4895		amount equal to the basic allotment multiplied by the product of:
5630	4896		(1) 0.12; and
5631	4897		(2) an amount equal to five percent of the students in
5632	4898		average daily attendance in the district.
5633	4899		(c) The commissioner may restore to a school district all or
5634	4900		part of the funding withheld from the district's entitlement under
5635	4901		Subsection (b) if during the school year the district complies with
5636	4902		Subsection (a).
5637	4903		(d) At the same time that a school district makes the
5638	4904		certification required under Subsection (a), the district shall
5639	4905		report to the commissioner regarding the use of funds on the
5640	4906		district's program for gifted and talented students as provided by
5641	4907		State Board of Education rule.
5642	4908		(e) Nothing in this section may be construed as limiting the
5643	4909		number of students that a school district may identify as gifted and
5644	4910		talented or serve under the district's program for gifted and
5645	4911		talented students.
5646		-	SECTION 2.019. Section 29.153, Education Code, is amended
5647		-	by amending Subsections (c) and (d) and adding Subsections (c-1),
5648		-	(d-1), (d-2), and (g) to read as follows:
	4912	+	SECTION 2.028. Section 29.153, Education Code, is amended
	4913	+	by amending Subsections (b), (c), (d), and (f) and adding
	4914	+	Subsections (c-1), (d-1), and (d-2) to read as follows:
	4915	+	(b) A child is eligible for enrollment in a prekindergarten
	4916	+	class under this section if the child is at least three years of age
	4917	+	and:
	4918	+	(1) is unable to speak and comprehend the English
	4919	+	language;
	4920	+	(2) is educationally disadvantaged;
	4921	+	(3) is a homeless child, as defined by 42 U.S.C.
	4922	+	Section 11434a, regardless of the residence of the child, of either
	4923	+	parent of the child, or of the child's guardian or other person
	4924	+	having lawful control of the child;
	4925	+	(4) is the child of an active duty member of the armed
	4926	+	forces of the United States, including the state military forces or
	4927	+	a reserve component of the armed forces, who is ordered to active
	4928	+	duty by proper authority;
	4929	+	(5) is the child of a member of the armed forces of the
	4930	+	United States, including the state military forces or a reserve
	4931	+	component of the armed forces, who was injured or killed while
	4932	+	serving on active duty;
	4933	+	(6) is or ever has been in the conservatorship of the
	4934	+	Department of Family and Protective Services following an adversary
	4935	+	hearing held as provided by Section 262.201, Family Code; [or]
	4936	+	(7) is the child of a person eligible for the Star of
	4937	+	Texas Award as:
	4938	+	(A) a peace officer under Section 3106.002,
	4939	+	Government Code;
	4940	+	(B) a firefighter under Section 3106.003,
	4941	+	Government Code; or
	4942	+	(C) an emergency medical first responder under
	4943	+	Section 3106.004, Government Code; or
	4944	+	(8) is the child of an educator employed by a school
	4945	+	district in this state.
5649	4946		(c) A prekindergarten class under this section may [shall]
5650	4947		be operated on a half-day basis for children under four years of age
5651	4948		and shall be operated on a full-day basis for children who are at
5652	4949		least four years of age. A district is not required to provide
5653	4950		transportation for a prekindergarten class, but transportation, if
5654	4951		provided, is included for funding purposes as part of the regular
5655	4952		transportation system.
5656	4953		(c-1) A prekindergarten class under this section for
5657	4954		children who are least four years of age must comply with the
5658	4955		program standards required for high quality prekindergarten
5659	4956		programs under Subchapter E-1.
5660	4957		(d) Subject to Subsections (d-1) and (d-2), on [On]
5661	4958		application of a district, the commissioner shall [may] exempt a
5662	4959		district from the application of all or any part of this section,
5663	4960		including all or any part of Subchapter E-1 for a prekindergarten
5664	4961		class described by Subsection (c-1), if the commissioner determines
5665	4962		that:
5666	4963		(1) the district would be required to construct
5667	4964		classroom facilities in order to provide prekindergarten classes;
5668	4965		or
5669	4966		(2) implementing any part of this section would result
5670	4967		in fewer eligible children being enrolled in a prekindergarten
5671	4968		class under this section.
5672	4969		(d-1) A district may not receive an exemption under
5673	4970		Subsection (d) unless the district has solicited and considered at
5674	4971		a public meeting proposals for partnerships with public or private
5675	4972		entities regarding prekindergarten classes required under this
5676	4973		section. A decision of the board of trustees regarding a
5677	4974		partnership described by this subsection is final.
5678	4975		(d-2) An exemption under Subsection (d) may not be granted
5679	4976		for a period longer than three school years and may be renewed only
5680	4977		once.
5681		-	(g) Before a school district or open-enrollment charter
5682		-	school may construct, repurpose, or lease a classroom facility, or
5683		-	issue bonds for the construction or repurposing of a classroom
5684		-	facility, to provide the prekindergarten classes required under
5685		-	this section, the district or school must solicit and consider
5686		-	proposals for partnerships to provide those classes with
5687		-	community-based child-care providers who:
5688		-	(1) are a Texas Rising Star Program provider with a
5689		-	three-star certification or higher;
5690		-	(2) are nationally accredited;
5691		-	(3) are a Head Start program provider;
5692		-	(4) are a Texas School Ready! participant; or
5693		-	(5) meet the requirements under Section 29.1532.
5694		-	SECTION 2.020. Section 29.1531(a), Education Code, is
	4978	+	(f) A child who is eligible for enrollment in a
	4979	+	prekindergarten class under Subsection (b)(4), [or] (5), or (8)
	4980	+	remains eligible for enrollment after the child begins a
	4981	+	prekindergarten class if, as applicable, the child's parent:
	4982	+	(1) leaves the armed forces;
	4983	+	(2) [, or] is no longer on active duty; or
	4984	+	(3) is no longer employed as an educator by a school
	4985	+	district in this state[, after the child begins a prekindergarten
	4986	+	class].
	4987	+	SECTION 2.029. Section 29.1531(a), Education Code, is
5695	4988		amended to read as follows:
5696	4989		(a) A school district may offer on a tuition basis or use
5697	4990		district funds to provide:
5698	4991		(1) an additional half-day of prekindergarten classes
5699	4992		to children who are eligible for classes under Section 29.153 and
5700	4993		are under four years of age; and
5701	4994		(2) half-day and full-day prekindergarten classes to
5702	4995		children not eligible for classes under Section 29.153.
5703		-	SECTION 2.~~021~~. Section 29.1532(c), Education Code, is
	4996	+	SECTION 2.030. Section 29.1532(c), Education Code, is
5704	4997		amended to read as follows:
5705	4998		(c) A school district that offers prekindergarten classes[,
5706	4999		including a high quality prekindergarten program class under
5707	5000		Subchapter E-1,] shall include the following information in the
5708	5001		district's Public Education Information Management System (PEIMS)
5709	5002		report:
5710	5003		(1) demographic information, as determined by the
5711	5004		commissioner, on students enrolled in district and campus
5712	5005		prekindergarten classes, including the number of students who are
5713	5006		eligible for classes under Section 29.153;
5714	5007		(2) the numbers of half-day and full-day
5715	5008		prekindergarten classes offered by the district and campus;
5716	5009		(3) the number of half-day prekindergarten classes for
5717	5010		which the district has received an exemption from full-day
5718	5011		operation under Section 29.153(d);
5719	5012		(4) the sources of funding for the prekindergarten
5720	5013		classes;
5721	5014		(5) [(4)] the class size and ratio of instructional
5722	5015		staff to students for each prekindergarten program class offered by
5723	5016		the district and campus;
5724	5017		(6) [(5)] if the district elects to administer an
5725	5018		assessment instrument under Section 29.169 to students enrolled in
5726	5019		district and campus prekindergarten program classes, a description
5727	5020		and the results of each type of assessment instrument; and
5728	5021		(7) [(6)] curricula used in the district's
5729	5022		prekindergarten program classes.
5730		-	SECTION 2.~~022~~. Section 29.1543, Education Code, is amended
	5023	+	SECTION 2.031. Section 29.1543, Education Code, is amended
5731	5024		to read as follows:
5732	5025		Sec. 29.1543. EARLY EDUCATION REPORTS. The agency shall
5733	5026		produce and make available to the public on the agency's Internet
5734	5027		website annual district and campus-level reports containing
5735	5028		information from the previous school year on early education in
5736	5029		school districts and open-enrollment charter schools. A report
5737	5030		under this section must contain:
5738	5031		(1) the information required by Section 29.1532(c) to
5739	5032		be reported through the Public Education Information Management
5740	5033		System (PEIMS);
5741	5034		(2) a description of the diagnostic reading
5742	5035		instruments administered in accordance with Section 28.006(c) or
5743	5036		(c-2);
5744	5037		(3) the number of students who were administered a
5745	5038		diagnostic reading instrument administered in accordance with
5746	5039		Section 28.006(c) or (c-2);
5747	5040		(4) the number of students whose scores from a
5748	5041		diagnostic reading instrument administered in accordance with
5749	5042		Section 28.006(c) or (c-2) indicate reading proficiency; [and]
5750	5043		(5) the number of kindergarten students who were
5751	5044		enrolled in a prekindergarten program in the previous school year
5752	5045		in the same district or school as the district or school in which
5753	5046		the student attends kindergarten;
5754	5047		(6) the number and percentage of students who perform
5755	5048		satisfactorily on the third grade reading or mathematics assessment
5756	5049		instrument administered under Section 39.023, disaggregated by
5757	5050		whether the student was eligible for free prekindergarten under
5758	5051		Section 29.153;
5759	5052		(7) the number of students described by Subdivision
5760	5053		(6) who attended kindergarten in the district, disaggregated by:
5761	5054		(A) whether the student met the kindergarten
5762	5055		readiness standard on the reading instrument adopted under Section
5763	5056		28.006;
5764	5057		(B) whether the student attended prekindergarten
5765	5058		in the district; and
5766	5059		(C) the type of prekindergarten the student
5767	5060		attended, if applicable; and
5768	5061		(8) the information described by Subdivisions (6) and
5769	5062		(7) disaggregated by whether the student is educationally
5770	5063		disadvantaged.
5771		-	SECTION 2.023. Subchapter E, Chapter 29, Education Code, is
5772		-	amended by adding Section 29.1544 to read as follows:
5773		-	Sec. 29.1544. REPORTING OF CERTAIN INFORMATION REGARDING
5774		-	PREKINDERGARTEN PROGRAMS; AGENCY REPORT. (a) The agency by rule
5775		-	shall require each school district that offers a prekindergarten
5776		-	program under Section 29.153 and each private entity that provides
5777		-	a prekindergarten program under contract with a school district to
5778		-	report the following information in the form and manner prescribed
5779		-	by the agency for each prekindergarten class offered by the
5780		-	district or private entity:
5781		-	(1) the number of students in each prekindergarten
5782		-	class;
5783		-	(2) the number of certified teachers in each
5784		-	prekindergarten class;
5785		-	(3) the number of teacher's aides in each
5786		-	prekindergarten class;
5787		-	(4) whether each prekindergarten class is full-day or
5788		-	half-day; and
5789		-	(5) if the district offers half-day classes, whether
5790		-	the district offers two half-day classes per day.
5791		-	(b) From the information submitted under Subsection (a),
5792		-	the agency shall determine the total number of teachers and
5793		-	teacher's aides in prekindergarten classes in this state.
5794		-	(c) From the information submitted under Subsection (a) and
5795		-	for purposes of calculating the student/teacher ratio for each
5796		-	prekindergarten class offered by a school district or private
5797		-	entity that provides a prekindergarten program under contract with
5798		-	a school district, the agency shall count each teacher or teacher's
5799		-	aide:
5800		-	(1) once for a full-day class; and
5801		-	(2) twice for a half-day class if the district offers
5802		-	two half-day classes per day.
5803		-	(d) Not later than August 1 of each year, the agency shall
5804		-	prepare and submit a report to the legislature based on the
5805		-	information collected under Subsection (a).
5806		-	SECTION 2.024. Section 29.162, Education Code, is amended
	5064	+	SECTION 2.032. Section 29.162, Education Code, is amended
5807	5065		to read as follows:
5808	5066		Sec. 29.162. RULES [DETERMINATION OF FULL-DAY AND
5809	5067		HALF-DAY]. (a) The commissioner may adopt rules for this
5810	5068		subchapter, including rules establishing full-day and half-day
5811	5069		minutes of operation requirements as provided by Section 25.081.
5812	5070		(b) Section 2001.0045, Government Code, does not apply to
5813	5071		rules adopted under this section.
5814		-	SECTION 2.~~025~~. The heading to Subchapter E-1, Chapter 29,
	5072	+	SECTION 2.033. The heading to Subchapter E-1, Chapter 29,
5815	5073		Education Code, is amended to read as follows:
5816	5074		SUBCHAPTER E-1. HIGH QUALITY PREKINDERGARTEN [GRANT] PROGRAM
5817	5075		REQUIREMENTS
5818		-	SECTION 2.~~026~~. Section 29.164, Education Code, is amended
	5076	+	SECTION 2.034. Section 29.164, Education Code, is amended
5819	5077		to read as follows:
5820	5078		Sec. 29.164. DEFINITION. In this subchapter, "program"
5821	5079		means a high quality prekindergarten [grant] program required under
5822	5080		Section 29.153(c-1) to be provided free of tuition or fees in
5823	5081		accordance with this subchapter.
5824		-	SECTION 2.~~027~~. Section 29.167(a), Education Code, is
	5082	+	SECTION 2.035. Section 29.167(a), Education Code, is
5825	5083		amended to read as follows:
5826	5084		(a) A school district shall select and implement a
5827	5085		curriculum for a prekindergarten [grant] program [under this
5828	5086		subchapter] that:
5829	5087		(1) includes the prekindergarten guidelines
5830	5088		established by the agency;
5831	5089		(2) measures the progress of students in meeting the
5832	5090		recommended learning outcomes; and
5833	5091		(3) does not use national curriculum standards
5834	5092		developed by the Common Core State Standards Initiative.
5835		-	SECTION 2.~~028~~. Section 29.170(a), Education Code, is
	5093	+	SECTION 2.036. Section 29.170(a), Education Code, is
5836	5094		amended to read as follows:
5837	5095		(a) The commissioner shall evaluate the use and
5838	5096		effectiveness of prekindergarten funding [provided under this
5839	5097		subchapter] in improving student learning. The commissioner shall
5840	5098		identify effective instruction strategies implemented by school
5841	5099		districts under this subchapter.
5842		-	SECTION 2.~~029~~. Section 29.171(a), Education Code, is
	5100	+	SECTION 2.037. Section 29.171(a), Education Code, is
5843	5101		amended to read as follows:
5844	5102		(a) A school district that offers a prekindergarten
5845	5103		[participating in the grant] program under this subchapter may
5846	5104		enter into a contract with an eligible private provider to provide
5847	5105		services or equipment for the program.
5848		-	SECTION 2.~~030~~. Section 29.172, Education Code, is amended
	5106	+	SECTION 2.038. Section 29.172, Education Code, is amended
5849	5107		to read as follows:
5850	5108		Sec. 29.172. RULES. (a) The commissioner may adopt rules
5851	5109		necessary to implement this subchapter.
5852	5110		(b) Section 2001.0045, Government Code, does not apply to
5853	5111		rules adopted under this section.
5854		-	SECTION 2.~~031~~. Section 29.190, Education Code, is amended
	5112	+	SECTION 2.039. Section 29.190, Education Code, is amended
5855	5113		by amending Subsection (a) and adding Subsection (a-1) to read as
5856	5114		follows:
5857	5115		(a) A student is entitled to a subsidy under this section
5858	5116		if:
5859	5117		(1) the student:
5860	5118		(A) successfully completes the career and
5861	5119		technology program of a school district in which the student
5862	5120		receives training and instruction for employment; or
5863	5121		(B) is enrolled in a special education program
5864	5122		under Subchapter A; and
5865	5123		(2) the student passes a certification examination to
5866	5124		qualify for a license or certificate that is an industry
5867	5125		certification for purposes of Section 39.053(c)(1)(B)(v),
5868	5126		administered while the student is enrolled in a school district.
5869	5127		(a-1) A student may not receive more than one subsidy under
5870	5128		this section.
5871		-	SECTION 2.032. Subchapter F, Chapter 29, Education Code, is
5872		-	amended by adding Section 29.194 to read as follows:
5873		-	Sec. 29.194. SUMMER CAREER AND TECHNOLOGY EDUCATION GRANT
5874		-	PROGRAM. (a) From funds appropriated or available for the purpose,
5875		-	the commissioner, in cooperation with an appropriate private
5876		-	entity, shall establish a grant program to provide funding to
5877		-	school districts for career and technology education courses
5878		-	offered during the summer.
5879		-	(b) The commissioner may solicit and accept gifts,
5880		-	donations, or other contributions for the grant program established
5881		-	under this section.
5882		-	(c) The commissioner may adopt rules as necessary to
5883		-	implement this section.
5884		-	SECTION 2.033. Subchapter Z, Chapter 29, Education Code, is
	5129	+	SECTION 2.040. Section 29.556(b), Education Code, is
	5130	+	amended to read as follows:
	5131	+	(b) From funds appropriated or available for that purpose,
	5132	+	the commissioner by rule shall establish a grant program to assist
	5133	+	school districts and open-enrollment charter schools in
	5134	+	implementing the P-TECH program at a campus designated as a P-TECH
	5135	+	school under Subsection (a). The commissioner may use not more than
	5136	+	three percent of the funds used [appropriated] for the grant
	5137	+	program to cover the cost of administering the grant program [and to
	5138	+	provide technical assistance and support to P-TECH schools].
	5139	+	SECTION 2.041. Subchapter Z, Chapter 29, Education Code, is
5885	5140		amended by adding Section 29.924 to read as follows:
5886	5141		Sec. 29.924. BLENDED LEARNING GRANT PROGRAM. (a) In this
5887	5142		section, "blended learning" means an instructional delivery method
5888	5143		that combines classroom and online instruction.
5889	5144		(b) From funds appropriated or available for purposes of
5890	5145		this section, the commissioner shall establish a grant program to
5891	5146		assist school districts and open-enrollment charter schools in
5892	5147		developing and implementing effective blended learning models,
5893	5148		including an innovative mathematics instructional program at a
5894	5149		campus designated as a mathematics innovation zone as provided by
5895	5150		Section 28.020. In awarding grants under the program, the
5896	5151		commissioner shall give priority to school districts and
5897	5152		open-enrollment charter schools that have the highest enrollment of
5898	5153		students who are educationally disadvantaged.
5899	5154		(c) A school district or open-enrollment charter school
5900	5155		that receives a grant under this section must:
5901	5156		(1) develop a plan to implement a blended learning
5902	5157		model that meets the requirements under Subsection (d);
5903	5158		(2) provide training to teachers and other relevant
5904	5159		personnel on effective blended learning practices using a program
5905	5160		approved by the commissioner for that purpose;
5906	5161		(3) after completion of the training under Subdivision
5907	5162		(2):
5908	5163		(A) certify to the agency that the blended
5909	5164		learning model has been implemented; and
5910	5165		(B) immediately following the fourth school year
5911	5166		of implementation, submit to the agency a report on student
5912	5167		outcomes under the blended learning model; and
5913	5168		(4) provide any other information to the agency as
5914	5169		necessary for the implementation of this section.
5915	5170		(d) A plan to implement a blended learning model developed
5916	5171		under Subsection (c) must:
5917	5172		(1) during the first year require implementation of
5918	5173		the model across an entire grade level at a campus and permit
5919	5174		subsequent expansion of the model to additional grade levels at the
5920	5175		campus or, if the campus has achieved full implementation of the
5921	5176		model across all grade levels, to additional campuses in a manner
5922	5177		that provides students a consistent learning experience;
5923	5178		(2) require teachers to differentiate instruction for
5924	5179		all students in a grade level using the blended learning model,
5925	5180		including by:
5926	5181		(A) using curricula and assessments that allow
5927	5182		each student to progress at the student's pace based on
5928	5183		demonstrated proficiency;
5929	5184		(B) providing learning opportunities that give
5930	5185		students, in collaboration with the teacher, control over the time,
5931	5186		place, path, and pace of the student's learning; and
5932	5187		(C) allocating a certain amount of instructional
5933	5188		preparation time to collaborating with students and developing
5934	5189		blended learning lesson plans and activities driven by individual
5935	5190		student needs;
5936	5191		(3) provide teachers and other relevant personnel with
5937	5192		professional development opportunities regarding blended learning;
5938	5193		and
5939	5194		(4) require the use of a proficiency-based assessment
5940	5195		to inform instruction and provide teachers with relevant
5941	5196		information regarding strengths and gaps in a student's learning
5942	5197		and proficiency in the essential knowledge and skills.
5943	5198		(e) Funds awarded under the grant program may be used only
5944	5199		to implement a program under this section and satisfy the
5945	5200		requirements under Subsection (c).
5946	5201		(f) A school district or open-enrollment charter school may
5947	5202		receive a grant under this section for not more than four
5948	5203		consecutive school years.
5949	5204		(g) The commissioner shall adopt rules as necessary to
5950	5205		implement this section, including rules establishing an
5951	5206		application and selection process for awarding grants under this
5952	5207		section and a list of programs that may be used for training under
5953	5208		Subsection (c)(2). In adopting rules under this subsection, the
5954	5209		commissioner may not impose any requirements on a school district's
5955	5210		or open-enrollment charter school's plan to implement a blended
5956	5211		learning model not listed under Subsection (d).
5957		-	SECTION 2.034. Sections 39.0261(a), (e), and (f), Education
	5212	+	SECTION 2.042. Section 34.007, Education Code, is amended
	5213	+	by amending Subsection (a) and adding Subsection (a-1) to read as
	5214	+	follows:
	5215	+	(a) A board of county school trustees or a school district
	5216	+	board of trustees may establish and operate an economical public
	5217	+	school transportation system inside or outside[:
	5218	+	[(1) in] the county or district[,] as necessary to
	5219	+	transport students enrolled in a school in the county or in the
	5220	+	district along the most efficient routes.
	5221	+	(a-1) A county or school district that provides
	5222	+	transportation for a student who transferred to a school in the
	5223	+	county or to the district under Section 25.035 shall enter
	5224	+	[applicable; or
	5225	+	[(2) outside the county or district, as applicable, if
	5226	+	the county or school district enters] into an interlocal contract
	5227	+	as provided by Chapter 791, Government Code, with the sending
	5228	+	county or district regarding transportation for the student.
	5229	+	SECTION 2.043. Section 39.022, Education Code, is amended
	5230	+	to read as follows:
	5231	+	Sec. 39.022. ASSESSMENT PROGRAM. The commissioner [State
	5232	+	Board of Education] by rule shall create and implement a statewide
	5233	+	assessment program that is knowledge- and skills-based to ensure
	5234	+	school accountability for student achievement that achieves the
	5235	+	goals provided under Section 4.002. After adopting rules under this
	5236	+	section, the commissioner [State Board of Education] shall consider
	5237	+	the importance of maintaining stability in the statewide assessment
	5238	+	program when adopting any subsequent modification of the rules.
	5239	+	SECTION 2.044. Section 39.023, Education Code, is amended
	5240	+	by amending Subsections (a), (a-12), (a-13), (b-1), (c), and (c-3)
	5241	+	and adding Subsections (a-3), (a-14), (a-15), (c-7), (c-8), and (o)
	5242	+	to read as follows:
	5243	+	(a) The agency shall adopt or develop appropriate
	5244	+	criterion-referenced assessment instruments designed to assess
	5245	+	essential knowledge and skills in language arts [reading, writing],
	5246	+	mathematics, social studies, and science. Except as provided by
	5247	+	Subsection (a-2), all students, other than students assessed under
	5248	+	Subsection (b) or (l) or exempted under Section 39.027, shall be
	5249	+	assessed in:
	5250	+	(1) mathematics, annually in grades three through
	5251	+	[seven without the aid of technology and in grade] eight [with the
	5252	+	aid of technology on any assessment instrument that includes
	5253	+	algebra];
	5254	+	(2) language arts, including reading and writing,
	5255	+	annually in grades three through eight;
	5256	+	(3) [writing, including spelling and grammar, in
	5257	+	grades four and seven;
	5258	+	[(4)] social studies, in grade eight;
	5259	+	(4) [(5)] science, in grades five and eight; and
	5260	+	(5) [(6)] any other subject and grade required by
	5261	+	federal law.
	5262	+	(a-3) For purposes of Subsection (a)(1), the commissioner
	5263	+	by rule may designate sections of a mathematics assessment
	5264	+	instrument for a grade level that:
	5265	+	(1) may be completed with the aid of technology; and
	5266	+	(2) must be completed without the aid of technology.
	5267	+	(a-12) Each [An] assessment instrument adopted or developed
	5268	+	under Subsection (a) must be designed so that:
	5269	+	(1) if administered to students in grades three
	5270	+	through five, 85 percent of students will be able to complete all
	5271	+	[the] assessment instruments for that grade [instrument] within an
	5272	+	aggregate period equal to the number of assessment instruments for
	5273	+	that grade multiplied by 120 minutes; and
	5274	+	(2) if administered to students in grades six through
	5275	+	eight, 85 percent of students will be able to complete all [the]
	5276	+	assessment instruments for that grade [instrument] within an
	5277	+	aggregate period equal to the number of assessment instruments for
	5278	+	that grade multiplied by 180 minutes.
	5279	+	(a-13) The amount of time allowed for administration of an
	5280	+	assessment instrument adopted or developed under Subsection (a) may
	5281	+	not exceed eight hours, and the administration may occur in
	5282	+	multiple parts over more than [on only] one day.
	5283	+	(a-14) Subsections (a-12) and (a-13) do not apply to the
	5284	+	administration of assessment instruments for a grade level if the
	5285	+	time restriction imposed would result in a determination by the
	5286	+	commissioner that an assessment instrument is no longer valid and
	5287	+	reliable.
	5288	+	(a-15) Subsections (a-12) and (a-13) do not apply to a
	5289	+	classroom portfolio method used to assess writing performance.
	5290	+	(b-1) The agency, in conjunction with appropriate
	5291	+	interested persons, shall redevelop assessment instruments adopted
	5292	+	or developed under Subsection (b) for administration to
	5293	+	significantly cognitively disabled students in a manner consistent
	5294	+	with federal law. An assessment instrument under this subsection
	5295	+	may not require a teacher to prepare tasks or materials for a
	5296	+	student who will be administered such an assessment instrument. A
	5297	+	classroom portfolio method used to assess writing performance may
	5298	+	require a teacher to prepare tasks and materials [Assessment
	5299	+	instruments adopted or developed under this subsection shall be
	5300	+	administered not later than the 2014-2015 school year].
	5301	+	(c) The agency shall also adopt end-of-course assessment
	5302	+	instruments for secondary-level courses in Algebra I, biology,
	5303	+	English I, English II, and United States history. The Algebra I
	5304	+	end-of-course assessment instrument must be administered with the
	5305	+	aid of technology, but may include one or more parts that prohibit
	5306	+	the use of technology. The English I and English II end-of-course
	5307	+	assessment instruments must each assess essential knowledge and
	5308	+	skills in both reading and writing [in the same assessment
	5309	+	instrument] and must provide a single score. A school district
	5310	+	shall comply with commissioner [State Board of Education] rules
	5311	+	regarding administration of the assessment instruments listed in
	5312	+	this subsection. If a student is in a special education program
	5313	+	under Subchapter A, Chapter 29, the student's admission, review,
	5314	+	and dismissal committee shall determine whether any allowable
	5315	+	modification is necessary in administering to the student an
	5316	+	assessment instrument required under this subsection. The
	5317	+	commissioner [State Board of Education] shall administer the
	5318	+	assessment instruments. An end-of-course assessment instrument
	5319	+	may be administered in multiple parts over more than one day [The
	5320	+	State Board of Education shall adopt a schedule for the
	5321	+	administration of end-of-course assessment instruments that
	5322	+	complies with the requirements of Subsection (c-3)].
	5323	+	(c-3) Except as provided by Subsection (c-7), in [In]
	5324	+	adopting a schedule for the administration of assessment
	5325	+	instruments under this section, the commissioner [State Board of
	5326	+	Education] shall ensure that [require:
	5327	+	[(1)] assessment instruments administered under
	5328	+	Subsection (a) or (c) are not [to be] administered on the first
	5329	+	instructional day of a week [a schedule so that the first assessment
	5330	+	instrument is administered at least two weeks later than the date on
	5331	+	which the first assessment instrument was administered under
	5332	+	Subsection (a) during the 2006-2007 school year; and
	5333	+	[(2) the spring administration of end-of-course
	5334	+	assessment instruments under Subsection (c) to occur in each school
	5335	+	district not earlier than the first full week in May, except that
	5336	+	the spring administration of the end-of-course assessment
	5337	+	instruments in English I and English II must be permitted to occur
	5338	+	at an earlier date].
	5339	+	(c-7) Subsection (c-3) does not apply to a classroom
	5340	+	portfolio method used to assess writing performance if student
	5341	+	performance under that method is less than 50 percent of a student's
	5342	+	overall assessed performance in writing.
	5343	+	(c-8) Beginning with the 2022-2023 school year, an
	5344	+	assessment instrument developed under Subsection (a) or (c) may not
	5345	+	present more than 75 percent of the questions in a multiple choice
	5346	+	format.
	5347	+	(o) The agency shall adopt or develop optional interim
	5348	+	assessment instruments for each subject or course for each grade
	5349	+	level subject to assessment under this section. A school district
	5350	+	may not be required to administer interim assessment instruments
	5351	+	adopted or developed under this subsection. An interim assessment
	5352	+	instrument:
	5353	+	(1) must be:
	5354	+	(A) predictive of the assessment instrument for
	5355	+	the applicable subject or course for that grade level required
	5356	+	under this section; and
	5357	+	(B) administered electronically; and
	5358	+	(2) may not be used for accountability purposes.
	5359	+	SECTION 2.045. Subchapter B, Chapter 39, Education Code, is
	5360	+	amended by adding Section 39.02302 to read as follows:
	5361	+	Sec. 39.02302. ADVISORY COMMITTEES FOR ASSESSMENT
	5362	+	INSTRUMENTS. (a) The commissioner shall appoint a technical
	5363	+	advisory committee to advise the commissioner and the agency
	5364	+	regarding the development of valid and reliable assessment
	5365	+	instruments for purposes of this chapter. The members of the
	5366	+	committee must be experts on educational assessments and
	5367	+	psychometrics.
	5368	+	(b) The commissioner shall appoint an educator advisory
	5369	+	committee to advise the commissioner and the agency regarding the
	5370	+	development of academically appropriate assessment instruments for
	5371	+	purposes of this chapter. The members of the committee must include
	5372	+	experts in curriculum and instruction.
	5373	+	(c) The agency may compensate a member of the technical or
	5374	+	educator advisory committee or reimburse the member for expenses
	5375	+	incurred in the performance of duties related to the member's
	5376	+	service on the committee.
	5377	+	(d) The selection of or payment to a member of the technical
	5378	+	or educator advisory committee is not subject to Chapter 2254,
	5379	+	Government Code.
	5380	+	SECTION 2.046. Section 39.0234, Education Code, is amended
	5381	+	to read as follows:
	5382	+	Sec. 39.0234. ELECTRONIC ADMINISTRATION OF ASSESSMENT
	5383	+	INSTRUMENTS [BY COMPUTER]. (a) The agency shall ensure that
	5384	+	assessment instruments required under Section 39.023 are capable of
	5385	+	being administered electronically [by computer].
	5386	+	(b) A school district shall administer each assessment
	5387	+	instrument required under Section 39.023 electronically unless the
	5388	+	district receives a waiver from the commissioner. This subsection
	5389	+	does not apply to the administration of an assessment instrument to
	5390	+	a student who requires accommodations in the administration of the
	5391	+	assessment instrument that are not available if administered
	5392	+	electronically.
	5393	+	(c) Except as provided by Section 39.02341, a school
	5394	+	district must comply with Subsection (b) beginning with the
	5395	+	2022-2023 school year. This subsection expires September 1, 2022.
	5396	+	[The commissioner may not require a school district or
	5397	+	open-enrollment charter school to administer an assessment
	5398	+	instrument by computer.]
	5399	+	SECTION 2.047. Subchapter B, Chapter 39, Education Code, is
	5400	+	amended by adding Sections 39.02341 and 39.0236 to read as follows:
	5401	+	Sec. 39.02341. TRANSITION TO ELECTRONIC ADMINISTRATION OF
	5402	+	ASSESSMENT INSTRUMENTS. (a) The agency shall develop a transition
	5403	+	plan to administer all assessment instruments required under
	5404	+	Section 39.023 electronically beginning not later than the
	5405	+	2022-2023 school year.
	5406	+	(b) As part of the transition plan, the agency may provide
	5407	+	results on an assessment instrument required under Section 39.023
	5408	+	on an accelerated schedule to school districts that administer the
	5409	+	assessment instrument electronically. For purposes of this
	5410	+	subsection, the commissioner by rule may require the results on an
	5411	+	assessment instrument administered electronically to be reported
	5412	+	to the district as soon as practicable after administration.
	5413	+	(c) As part of the transition plan, the commissioner may
	5414	+	require a school district to comply with Section 39.0234(b) before
	5415	+	the 2022-2023 school year.
	5416	+	(d) Not later than December 1, 2020, the agency shall submit
	5417	+	to the governor and the members of the legislature a report on the
	5418	+	progress of transitioning to electronic administration of all
	5419	+	assessment instruments required under Section 39.023. The report
	5420	+	must include:
	5421	+	(1) information from school districts assessing the
	5422	+	needs of those districts in transitioning to electronic
	5423	+	administration;
	5424	+	(2) any recommended changes to state law to assist in
	5425	+	the transition; and
	5426	+	(3) any recommended adjustments to the timeline for
	5427	+	statewide implementation of electronic administration.
	5428	+	(e) Not later than December 1, 2022, the agency shall submit
	5429	+	to the members of the legislature a report on the anticipated impact
	5430	+	to school districts of the implementation of electronic
	5431	+	administration of all assessment instruments required under
	5432	+	Section 39.023.
	5433	+	(f) This section expires September 1, 2023.
	5434	+	Sec. 39.0236. INTEGRATED FORMATIVE ASSESSMENT PILOT
	5435	+	PROGRAM. (a) The agency shall establish a pilot program in which
	5436	+	participating school districts administer to students integrated
	5437	+	formative assessment instruments for subjects or courses for a
	5438	+	grade level subject to assessment under Section 28.006 or 39.023.
	5439	+	(b) A school district may elect to participate in the pilot
	5440	+	program.
	5441	+	(c) A school district's participation in the pilot program
	5442	+	does not affect the district's obligations regarding the
	5443	+	administration of assessment instruments required under Section
	5444	+	39.023.
	5445	+	(d) Not later than December 1 of each even-numbered year,
	5446	+	the agency shall submit to the governor and the members of the
	5447	+	legislature a report on the pilot program that includes:
	5448	+	(1) an analysis of whether the administration of
	5449	+	integrated formative assessment instruments under the pilot
	5450	+	program provided any improvement in instructional support during
	5451	+	the preceding two school years; and
	5452	+	(2) a determination of the feasibility of replacing
	5453	+	the assessment instruments required under Section 39.023 with
	5454	+	integrated formative assessment instruments.
	5455	+	SECTION 2.048. Section 39.0241(a), Education Code, is
	5456	+	amended to read as follows:
	5457	+	(a) The commissioner shall determine the level of
	5458	+	performance considered to be satisfactory on the assessment
	5459	+	instruments, including:
	5460	+	(1) a meets grade level performance standard in the
	5461	+	applicable subject or course that indicates that a student has a
	5462	+	high likelihood of success in the subject for the subsequent grade
	5463	+	level or in the subsequent course but may still need short-term,
	5464	+	targeted intervention; and
	5465	+	(2) a masters grade level performance standard in the
	5466	+	applicable subject or course that indicates that a student is
	5467	+	expected to succeed in the subject for the subsequent grade level or
	5468	+	in the subsequent course with little or no academic intervention.
	5469	+	SECTION 2.049. Section 39.026, Education Code, is amended
	5470	+	to read as follows:
	5471	+	Sec. 39.026. LOCAL OPTION. In addition to the assessment
	5472	+	instruments adopted by the agency [and administered by the State
	5473	+	Board of Education], a school district may adopt and administer
	5474	+	criterion-referenced or norm-referenced assessment instruments, or
	5475	+	both, at any grade level. A norm-referenced assessment instrument
	5476	+	adopted under this section must be economical, nationally
	5477	+	recognized, and state-approved.
	5478	+	SECTION 2.050. Sections 39.0261(a), (e), and (f), Education
5958	5479		Code, are amended to read as follows:
5959	5480		(a) In addition to the assessment instruments otherwise
5960	5481		authorized or required by this subchapter:
5961	5482		(1) each school year and at state cost, a school
5962	5483		district may administer to students in the spring of the eighth
5963	5484		grade an established, valid, reliable, and nationally
5964	5485		norm-referenced preliminary college preparation assessment
5965	5486		instrument for the purpose of diagnosing the academic strengths and
5966	5487		deficiencies of students before entrance into high school;
5967	5488		(2) each school year and at state cost, a school
5968	5489		district may administer to students in the 10th grade an
5969	5490		established, valid, reliable, and nationally norm-referenced
5970	5491		preliminary college preparation assessment instrument for the
5971	5492		purpose of measuring a student's progress toward readiness for
5972	5493		college and the workplace; and
5973	5494		(3) high school students in the spring of the 11th
5974	5495		grade or during the 12th grade may select and take once, at state
5975	5496		cost:
5976	5497		(A) [,] one of the valid, reliable, and
5977	5498		nationally norm-referenced assessment instruments used by colleges
5978	5499		and universities as part of their undergraduate admissions
5979	5500		processes; or
5980	5501		(B) the assessment instrument designated by the
5981	5502		Texas Higher Education Coordinating Board under Section 51.334.
5982	5503		(e) Subsection (a)(3) does not prohibit a high school
5983	5504		student [in the spring of the 11th grade or during the 12th grade]
5984	5505		from selecting and taking, at the student's own expense, an
5985	5506		assessment instrument described by that subdivision [one of the
5986	5507		valid, reliable, and nationally norm-referenced assessment
5987	5508		instruments used by colleges and universities as part of their
5988	5509		undergraduate admissions processes more than once].
5989	5510		(f) The provisions of this section regarding assessment
5990	5511		instruments administered under Subsection (a)(1) or (2) apply only
5991	5512		if the legislature appropriates funds for those purposes [of this
5992	5513		section].
5993		-	SECTION 2.035. Section 39.306(a), Education Code, is
5994		-	amended to read as follows:
5995		-	(a) Each board of trustees shall publish an annual report
5996		-	describing the educational performance of the district and of each
5997		-	campus in the district that includes uniform student performance
5998		-	and descriptive information as determined under rules adopted by
5999		-	the commissioner. The annual report must also include:
6000		-	(1) campus performance objectives established under
6001		-	Section 11.253 and the progress of each campus toward those
6002		-	objectives, which shall be available to the public;
6003		-	(2) information indicating the district's
6004		-	accreditation status and identifying each district campus awarded a
6005		-	distinction designation under Subchapter G or considered an
6006		-	unacceptable campus under Chapter 39A;
6007		-	(3) the district's current special education
6008		-	compliance status with the agency;
6009		-	(4) a statement of the number, rate, and type of
6010		-	violent or criminal incidents that occurred on each district
6011		-	campus, to the extent permitted under the Family Educational Rights
6012		-	and Privacy Act of 1974 (20 U.S.C. Section 1232g);
6013		-	(5) information concerning school violence prevention
6014		-	and violence intervention policies and procedures that the district
6015		-	is using to protect students;
6016		-	(6) the findings that result from evaluations
6017		-	conducted under the Safe and Drug-Free Schools and Communities Act
6018		-	of 1994 (20 U.S.C. Section 7101 et seq.); [and]
6019		-	(7) information received under Section 51.403(e) for
6020		-	each high school campus in the district, presented in a form
6021		-	determined by the commissioner; and
6022		-	(8) the progress of the district and each campus in the
6023		-	district toward meeting the goals set in the district's:
6024		-	(A) early childhood literacy and mathematics
6025		-	proficiency plans adopted under Section 11.185; and
6026		-	(B) college, career, and military readiness
6027		-	plans adopted under Section 11.186.
6028		-	SECTION 2.036. Subchapter Z, Chapter 39A, Education Code,
6029		-	is amended by adding Section 39A.907 to read as follows:
6030		-	Sec. 39A.907. ASSESSMENT INSTRUMENT STUDY. (a) The
6031		-	commissioner shall enter into a memorandum of understanding with a
6032		-	public institution of higher education to conduct a study to
6033		-	determine whether, for each applicable grade level, each assessment
6034		-	instrument administered under Section 39.023(a) during the
6035		-	2018-2019 school year or scheduled to be administered during the
6036		-	2019-2020 school year:
6037		-	(1) is written at the appropriate reading level for
6038		-	students in that grade level; and
6039		-	(2) includes only:
6040		-	(A) passages, questions, answers, and other
6041		-	content aligned with the essential knowledge and skills adopted by
6042		-	the State Board of Education for the applicable subject for the
6043		-	grade level at which the assessment instrument is administered or
6044		-	for any previous grade level; and
6045		-	(B) passages written at a reading level not
6046		-	higher than the grade level at which the assessment instrument is
6047		-	administered.
6048		-	(b) Not later than December 1, 2019, the commissioner shall
6049		-	submit a report to the legislature and the presiding officer of each
6050		-	legislative standing committee with jurisdiction over primary and
6051		-	secondary education that includes the results of the study.
6052		-	ARTICLE 2A. PROVISIONS REGARDING EMPLOYING, TERMINATING, AND
6053		-	REPORTING MISCONDUCT OF PUBLIC SCHOOL AND RELATED ENTITY PERSONNEL
6054		-	SECTION 2A.001. Section 12.027(a), Education Code, is
6055		-	amended to read as follows:
6056		-	(a) The State Board of Education may place on probation or
6057		-	revoke a home-rule school district charter of a school district if
6058		-	the board determines that the district:
6059		-	(1) committed a material violation of the charter,
6060		-	including by failure to comply with the duty to discharge or refuse
6061		-	to hire certain employees or applicants for employment, as provided
6062		-	by Section 12.0271;
6063		-	(2) failed to satisfy generally accepted accounting
6064		-	standards of fiscal management; or
6065		-	(3) failed to comply with this subchapter or other
6066		-	applicable federal or state law or rule.
6067		-	SECTION 2A.002. Subchapter B, Chapter 12, Education Code,
6068		-	is amended by adding Section 12.0271 to read as follows:
6069		-	Sec. 12.0271. FAILURE TO DISCHARGE OR REFUSE TO HIRE
6070		-	CERTAIN EMPLOYEES OR APPLICANTS. A home-rule school district
6071		-	commits a material violation of the school district's charter if
6072		-	the school district fails to comply with the duty to discharge or
6073		-	refuse to hire certain employees or applicants for employment under
6074		-	Section 22.085 or 22.092.
6075		-	SECTION 2A.003. Section 12.056(b), Education Code, is
6076		-	amended to read as follows:
6077		-	(b) A campus or program for which a charter is granted under
6078		-	this subchapter is subject to:
6079		-	(1) a provision of this title establishing a criminal
6080		-	offense; and
6081		-	(2) a prohibition, restriction, or requirement, as
6082		-	applicable, imposed by this title or a rule adopted under this
6083		-	title, relating to:
6084		-	(A) the Public Education Information Management
6085		-	System (PEIMS) to the extent necessary to monitor compliance with
6086		-	this subchapter as determined by the commissioner;
6087		-	(B) criminal history records under Subchapter C,
6088		-	Chapter 22;
6089		-	(C) high school graduation under Section 28.025;
6090		-	(D) special education programs under Subchapter
6091		-	A, Chapter 29;
6092		-	(E) bilingual education under Subchapter B,
6093		-	Chapter 29;
6094		-	(F) prekindergarten programs under Subchapter E,
6095		-	Chapter 29;
6096		-	(G) extracurricular activities under Section
6097		-	33.081;
6098		-	(H) health and safety under Chapter 38; [and]
6099		-	(I) public school accountability under
6100		-	Subchapters B, C, D, F, and J, Chapter 39, and Chapter 39A; and
6101		-	(J) the duty to discharge or refuse to hire
6102		-	certain employees or applicants for employment under Section
6103		-	12.1059.
6104		-	SECTION 2A.004. Section 12.063(a), Education Code, is
6105		-	amended to read as follows:
6106		-	(a) A board of trustees may place on probation or revoke a
6107		-	charter it grants if the board determines that the campus or
6108		-	program:
6109		-	(1) committed a material violation of the charter,
6110		-	including by failure to comply with the duty to discharge or refuse
6111		-	to hire certain employees or applicants for employment, as provided
6112		-	by Section 12.0631;
6113		-	(2) failed to satisfy generally accepted accounting
6114		-	standards of fiscal management; or
6115		-	(3) failed to comply with this subchapter, another
6116		-	law, or a state agency rule.
6117		-	SECTION 2A.005. Subchapter C, Chapter 12, Education Code,
6118		-	is amended by adding Section 12.0631 to read as follows:
6119		-	Sec. 12.0631. FAILURE TO DISCHARGE OR REFUSE TO HIRE
6120		-	CERTAIN EMPLOYEES OR APPLICANTS. A campus or campus program
6121		-	granted a charter under this subchapter commits a material
6122		-	violation of its charter if the campus or program fails to comply
6123		-	with the duty to discharge or refuse to hire certain employees or
6124		-	applicants for employment under Section 12.1059, 22.085, or 22.092.
6125		-	SECTION 2A.006. Section 12.1059, Education Code, is amended
	5514	+	SECTION 2.051. Section 39A.105, Education Code, is amended
6126	5515		to read as follows:
6127		-	Sec. 12.1059. REQUIREMENTS [AGENCY APPROVAL REQUIRED] FOR
6128		-	EMPLOYMENT OF CERTAIN EMPLOYEES. A person may not be employed by or
6129		-	serve as a teacher, librarian, educational aide, administrator, or
6130		-	school counselor for an open-enrollment charter school unless:
6131		-	(1) the person has been approved by the agency
6132		-	following a review of the person's national criminal history record
6133		-	information as provided by Section 22.0832; and
6134		-	(2) the school has confirmed that the person is not
6135		-	included in the registry under Section 22.092.
6136		-	SECTION 2A.007. Section 12.115(a), Education Code, is
6137		-	amended to read as follows:
6138		-	(a) Except as provided by Subsection (c), the commissioner
6139		-	shall revoke the charter of an open-enrollment charter school or
6140		-	reconstitute the governing body of the charter holder if the
6141		-	commissioner determines that the charter holder:
6142		-	(1) committed a material violation of the charter,
6143		-	including by a failure to:
6144		-	(A) satisfy accountability provisions prescribed
6145		-	by the charter; or
6146		-	(B) comply with the duty to discharge or refuse
6147		-	to hire certain employees or applicants for employment, as provided
6148		-	by Section 12.1151;
6149		-	(2) failed to satisfy generally accepted accounting
6150		-	standards of fiscal management;
6151		-	(3) failed to protect the health, safety, or welfare
6152		-	of the students enrolled at the school;
6153		-	(4) failed to comply with this subchapter or another
6154		-	applicable law or rule;
6155		-	(5) failed to satisfy the performance framework
6156		-	standards adopted under Section 12.1181; or
6157		-	(6) is imminently insolvent as determined by the
6158		-	commissioner in accordance with commissioner rule.
6159		-	SECTION 2A.008. Subchapter D, Chapter 12, Education Code,
6160		-	is amended by adding Section 12.1151 to read as follows:
6161		-	Sec. 12.1151. FAILURE TO DISCHARGE OR REFUSE TO HIRE
6162		-	CERTAIN EMPLOYEES OR APPLICANTS. An open-enrollment charter school
6163		-	commits a material violation of the school's charter if the school
6164		-	fails to comply with the duty to discharge or refuse to hire certain
6165		-	employees or applicants for employment under Section 12.1059,
6166		-	22.085, or 22.092.
6167		-	SECTION 2A.009. Section 12A.008, Education Code, is amended
6168		-	by adding Subsection (b-1) to read as follows:
6169		-	(b-1) The commissioner may terminate a district's
6170		-	designation as a district of innovation if the district fails to
6171		-	comply with the duty to discharge or refuse to hire certain
6172		-	employees or applicants for employment under Section 12.1059,
6173		-	applicable to the district under Section 12A.004(a)(1), or Section
6174		-	22.085 or 22.092.
6175		-	SECTION 2A.010. Section 21.006, Education Code, is amended
6176		-	by amending Subsections (a), (b), (b-1), (b-2), (c-1), (d), and (e)
6177		-	and adding Subsections (g-1) and (k) to read as follows:
6178		-	(a) In this section:
6179		-	(1) "Abuse"[, "abuse"] has the meaning assigned by
6180		-	Section 261.001, Family Code, and includes any sexual conduct
6181		-	involving an educator and a student or minor.
6182		-	(2) "Other charter entity" means:
6183		-	(A) a school district operating under a home-rule
6184		-	school district charter adopted under Subchapter B, Chapter 12;
6185		-	(B) a campus or campus program operating under a
6186		-	charter granted under Subchapter C, Chapter 12; and
6187		-	(C) an entity that contracts to partner with a
6188		-	school district under Section 11.174(a)(2) to operate a district
6189		-	campus under a charter granted to the entity by the district under
6190		-	Subchapter C, Chapter 12.
6191		-	(b) In addition to the reporting requirement under Section
6192		-	261.101, Family Code, the superintendent or director of a school
6193		-	district, district of innovation, open-enrollment charter school,
6194		-	other charter entity, regional education service center, or shared
6195		-	services arrangement shall notify the State Board for Educator
6196		-	Certification if:
6197		-	(1) an educator employed by or seeking employment by
6198		-	the school district, district of innovation, charter school, other
6199		-	charter entity, service center, or shared services arrangement has
6200		-	a criminal record and the school district, district of innovation,
6201		-	charter school, other charter entity, service center, or shared
6202		-	services arrangement obtained information about the educator's
6203		-	criminal record by a means other than the criminal history
6204		-	clearinghouse established under Section 411.0845, Government Code;
6205		-	(2) an educator's employment at the school district,
6206		-	district of innovation, charter school, other charter entity,
6207		-	service center, or shared services arrangement was terminated and
6208		-	there is evidence that the educator:
6209		-	(A) abused or otherwise committed an unlawful act
6210		-	with a student or minor;
6211		-	(A-1) was involved in a romantic relationship
6212		-	with or solicited or engaged in sexual contact with a student or
6213		-	minor;
6214		-	(B) possessed, transferred, sold, or distributed
6215		-	a controlled substance, as defined by Chapter 481, Health and
6216		-	Safety Code, or by 21 U.S.C. Section 801 et seq.;
6217		-	(C) illegally transferred, appropriated, or
6218		-	expended funds or other property of the school district, district
6219		-	of innovation, charter school, other charter entity, service
6220		-	center, or shared services arrangement;
6221		-	(D) attempted by fraudulent or unauthorized
6222		-	means to obtain or alter a professional certificate or license for
6223		-	the purpose of promotion or additional compensation; or
6224		-	(E) committed a criminal offense or any part of a
6225		-	criminal offense on school property or at a school-sponsored event;
6226		-	(3) the educator resigned and there is evidence that
6227		-	the educator engaged in misconduct described by Subdivision (2); or
6228		-	(4) the educator engaged in conduct that violated the
6229		-	assessment instrument security procedures established under
6230		-	Section 39.0301.
6231		-	(b-1) A superintendent or director of a school district,
6232		-	district of innovation, open-enrollment charter school, other
6233		-	charter entity, regional education service center, or shared
6234		-	services arrangement shall complete an investigation of an educator
6235		-	that involves evidence that the educator may have engaged in
6236		-	misconduct described by Subsection (b)(2)(A) or (A-1), despite the
6237		-	educator's resignation from employment before completion of the
6238		-	investigation.
6239		-	(b-2) The principal of a school district, district of
6240		-	innovation, [or] open-enrollment charter school, or other charter
6241		-	entity campus must notify the superintendent or director of the
6242		-	school district, district of innovation, [or] charter school, or
6243		-	other charter entity not later than the seventh business day after
6244		-	the date:
6245		-	(1) of an educator's termination of employment or
6246		-	resignation following an alleged incident of misconduct described
6247		-	by Subsection (b); or
6248		-	(2) the principal knew about an educator's criminal
6249		-	record under Subsection (b)(1).
6250		-	(c-1) The report under Subsection (c):
6251		-	(1) must be:
6252		-	(A) [(1)] in writing; and
6253		-	(B) [(2)] in a form prescribed by the board; and
6254		-	(2) may be filed through the Internet portal developed
6255		-	and maintained by the State Board for Educator Certification under
6256		-	Subsection (g-1).
6257		-	(d) The superintendent or director shall notify the board of
6258		-	trustees or governing body of the school district, open-enrollment
6259		-	charter school, other charter entity, regional education service
6260		-	center, or shared services arrangement and the educator of the
6261		-	filing of the report required by Subsection (c).
6262		-	(e) A superintendent, director, or principal of a school
6263		-	district, district of innovation, open-enrollment charter school,
6264		-	other charter entity, regional education service center, or shared
6265		-	services arrangement who in good faith and while acting in an
6266		-	official capacity files a report with the State Board for Educator
6267		-	Certification under this section or communicates with another
6268		-	superintendent, director, or principal concerning an educator's
6269		-	criminal record or alleged incident of misconduct is immune from
6270		-	civil or criminal liability that might otherwise be incurred or
6271		-	imposed.
6272		-	(g-1) The State Board for Educator Certification shall
6273		-	develop and maintain an Internet portal through which a report
6274		-	required under Subsection (c) may be confidentially and securely
6275		-	filed.
6276		-	(k) The commissioner may review the records of a school
6277		-	district, district of innovation, open-enrollment charter school,
6278		-	other charter entity, regional education service center, or shared
6279		-	services arrangement to ensure compliance with the requirement to
6280		-	report misconduct under this section.
6281		-	SECTION 2A.011. Section 21.0061, Education Code, is amended
6282		-	by amending Subsection (a) and adding Subsection (c) to read as
6283		-	follows:
6284		-	(a) The board of trustees or governing body of a school
6285		-	district, district of innovation, open-enrollment charter school,
6286		-	other charter entity, regional education service center, or shared
6287		-	services arrangement shall adopt a policy under which notice is
6288		-	provided to the parent or guardian of a student with whom an
6289		-	educator is alleged to have engaged in misconduct described by
6290		-	Section 21.006(b)(2)(A) or (A-1) informing the parent or guardian:
6291		-	(1) that the alleged misconduct occurred;
6292		-	(2) whether the educator was terminated following an
6293		-	investigation of the alleged misconduct or resigned before
6294		-	completion of the investigation; and
6295		-	(3) whether a report was submitted to the State Board
6296		-	for Educator Certification concerning the alleged misconduct.
6297		-	(c) In this section, "other charter entity" has the meaning
6298		-	assigned by Section 21.006.
6299		-	SECTION 2A.012. Subchapter B, Chapter 21, Education Code,
6300		-	is amended by adding Section 21.0585 to read as follows:
6301		-	Sec. 21.0585. NOTICE TO AGENCY REGARDING REVOCATION OF
6302		-	CERTIFICATE OR PERMIT FOR CERTAIN MISCONDUCT. The board shall
6303		-	promptly notify the agency for purposes of Section 22.092 if the
6304		-	board revokes a certificate or permit of a person on a finding that
6305		-	the person engaged in misconduct described by Section
6306		-	21.006(b)(2)(A) or (A-1).
6307		-	SECTION 2A.013. Subchapter C, Chapter 22, Education Code,
6308		-	is amended by adding Sections 22.0815 and 22.0825 to read as
6309		-	follows:
6310		-	Sec. 22.0815. APPLICABILITY OF SUBCHAPTER TO DISTRICTS OF
6311		-	INNOVATION AND OTHER CHARTER ENTITIES. (a) In this section, "other
6312		-	charter entity" has the meaning assigned by Section 21.006.
6313		-	(b) A prohibition, restriction, or requirement imposed by
6314		-	this subchapter on an open-enrollment charter school applies to the
6315		-	same extent to a district of innovation or other charter entity.
6316		-	(c) The failure of a district of innovation to provide
6317		-	information required under Section 22.0832 may result in
6318		-	termination of the district's designation as a district of
6319		-	innovation.
6320		-	Sec. 22.0825. ACCESS TO CRIMINAL HISTORY RECORDS BY TEXAS
6321		-	EDUCATION AGENCY. (a) In this section, "other charter entity" has
6322		-	the meaning assigned by Section 21.006.
6323		-	(b) The agency shall subscribe to the criminal history
6324		-	clearinghouse as provided by Section 411.0845, Government Code, and
6325		-	may obtain from any law enforcement or criminal justice agency all
6326		-	criminal history record information and all records contained in
6327		-	any closed criminal investigation file that relate to a specific
6328		-	applicant for employment or current or former employee of a school
6329		-	district, district of innovation, open-enrollment charter school,
6330		-	other charter entity, regional education service center, or shared
6331		-	services arrangement.
6332		-	SECTION 2A.014. The heading to Section 22.085, Education
6333		-	Code, is amended to read as follows:
6334		-	Sec. 22.085. EMPLOYEES AND APPLICANTS CONVICTED OF OR
6335		-	PLACED ON DEFERRED ADJUDICATION COMMUNITY SUPERVISION FOR CERTAIN
6336		-	OFFENSES.
6337		-	SECTION 2A.015. Sections 22.085(a) and (e), Education Code,
6338		-	are amended to read as follows:
6339		-	(a) A school district, open-enrollment charter school, or
6340		-	shared services arrangement shall discharge or refuse to hire an
6341		-	employee or applicant for employment if the district, school, or
6342		-	shared services arrangement obtains information through a criminal
6343		-	history record information review that[:
6344		-	[(1)] the employee or applicant has been:
6345		-	(1) convicted of or placed on deferred adjudication
6346		-	community supervision for[:
6347		-	[(A) a felony offense under Title 5, Penal Code;
6348		-	[(B)] an offense for [on conviction of] which a
6349		-	defendant is required to register as a sex offender under Chapter
6350		-	62, Code of Criminal Procedure; or
6351		-	(2) convicted of:
6352		-	(A) a felony offense under Title 5, Penal Code,
6353		-	if the victim of the offense was under 18 years of age at the time
6354		-	the offense was committed; or
6355		-	(B) [(C)] an offense under the laws of another
6356		-	state or federal law that is equivalent to an offense under
6357		-	Subdivision (1) or Paragraph (A) [or (B); and
6358		-	[(2) at the time the offense occurred, the victim of
6359		-	the offense described by Subdivision (1) was under 18 years of age
6360		-	or was enrolled in a public school].
6361		-	(e) The State Board for Educator Certification may impose a
6362		-	sanction on an educator who does not discharge an employee or refuse
6363		-	to hire an applicant for employment if the educator knows or should
6364		-	have known, through a criminal history record information review,
6365		-	that the employee or applicant has been:
6366		-	(1) convicted of or placed on deferred adjudication
6367		-	community supervision for an offense described by Subsection
6368		-	(a)(1); or
6369		-	(2) convicted of an offense described by Subsection
6370		-	(a)(2) [(a)].
6371		-	SECTION 2A.016. Chapter 22, Education Code, is amended by
6372		-	adding Subchapter C-1 to read as follows:
6373		-	SUBCHAPTER C-1. PERSONS NOT ELIGIBLE FOR EMPLOYMENT IN PUBLIC
6374		-	SCHOOLS
6375		-	Sec. 22.091. DEFINITION. In this subchapter, "other
6376		-	charter entity" has the meaning assigned by Section 21.006.
6377		-	Sec. 22.092. REGISTRY OF PERSONS NOT ELIGIBLE FOR
6378		-	EMPLOYMENT IN PUBLIC SCHOOLS. (a) The agency shall maintain and
6379		-	make available through the Internet portal developed and maintained
6380		-	by the agency under Section 22.095 a registry of persons who are not
6381		-	eligible to be employed by a school district, district of
6382		-	innovation, open-enrollment charter school, other charter entity,
6383		-	regional education service center, or shared services arrangement.
6384		-	(b) A school district, district of innovation,
6385		-	open-enrollment charter school, other charter entity, regional
6386		-	education service center, or shared services arrangement shall
6387		-	discharge or refuse to hire a person listed on the registry
6388		-	maintained under this section.
6389		-	(c) The registry maintained under this section must list the
6390		-	following persons as not eligible to be employed by public schools:
6391		-	(1) a person determined by the agency under Section
6392		-	22.0832 as a person who would not be eligible for educator
6393		-	certification under Subchapter B, Chapter 21;
6394		-	(2) a person determined by the agency to be not
6395		-	eligible for employment based on the person's criminal history
6396		-	record information review, as provided by Section 22.0833;
6397		-	(3) a person who is not eligible for employment based
6398		-	on criminal history record information received by the agency under
6399		-	Section 21.058(b);
6400		-	(4) a person whose certification or permit issued
6401		-	under Subchapter B, Chapter 21, is revoked by the State Board for
6402		-	Educator Certification on a finding that the person engaged in
6403		-	misconduct described by Section 21.006(b)(2)(A) or (A-1); and
6404		-	(5) a person who is determined by the commissioner
6405		-	under Section 22.094 to have engaged in misconduct described by
6406		-	Section 22.093(c)(1)(A) or (B).
6407		-	(d) The agency shall provide private schools and public
6408		-	schools equivalent access to the registry maintained under this
6409		-	section.
6410		-	(e) The agency shall adopt rules as necessary to implement
6411		-	this section.
6412		-	Sec. 22.093. REQUIREMENT TO REPORT EMPLOYEE MISCONDUCT.
6413		-	(a) In this section, "abuse" has the meaning assigned by Section
6414		-	261.001, Family Code, and includes any sexual conduct involving a
6415		-	student or minor.
6416		-	(b) This section applies to a person who is employed by a
6417		-	school district, district of innovation, open-enrollment charter
6418		-	school, other charter entity, regional education service center, or
6419		-	shared services arrangement and who does not hold a certification
6420		-	or permit issued under Subchapter B, Chapter 21.
6421		-	(c) In addition to the reporting requirement under Section
6422		-	261.101, Family Code, the superintendent or director of a school
6423		-	district, district of innovation, open-enrollment charter school,
6424		-	other charter entity, regional education service center, or shared
6425		-	services arrangement shall notify the commissioner if:
6426		-	(1) an employee's employment at the school district,
6427		-	district of innovation, charter school, other charter entity,
6428		-	service center, or shared services arrangement was terminated and
6429		-	there is evidence that the employee:
6430		-	(A) abused or otherwise committed an unlawful act
6431		-	with a student or minor; or
6432		-	(B) was involved in a romantic relationship with
6433		-	or solicited or engaged in sexual contact with a student or minor;
6434		-	or
6435		-	(2) the employee resigned and there is evidence that
6436		-	the employee engaged in misconduct described by Subdivision (1).
6437		-	(d) A superintendent or director of a school district,
6438		-	district of innovation, open-enrollment charter school, other
6439		-	charter entity, regional education service center, or shared
6440		-	services arrangement shall complete an investigation of an employee
6441		-	that involves evidence that the employee may have engaged in
6442		-	misconduct described by Subsection (c)(1)(A) or (B), despite the
6443		-	employee's resignation from employment before completion of the
6444		-	investigation.
6445		-	(e) The principal of a school district, district of
6446		-	innovation, open-enrollment charter school, or other charter
6447		-	entity campus must notify the superintendent or director of the
6448		-	school district, district of innovation, charter school, or other
6449		-	charter entity not later than the seventh business day after the
6450		-	date of an employee's termination of employment or resignation
6451		-	following an alleged incident of misconduct described by Subsection
6452		-	(c)(1)(A) or (B).
6453		-	(f) The superintendent or director must notify the
6454		-	commissioner by filing a report with the commissioner not later
6455		-	than the seventh business day after the date the superintendent or
6456		-	director receives a report from a principal under Subsection (e) or
6457		-	knew about an employee's termination of employment or resignation
6458		-	following an alleged incident of misconduct described by Subsection
6459		-	(c)(1)(A) or (B). The report must be:
6460		-	(1) in writing; and
6461		-	(2) in a form prescribed by the commissioner.
6462		-	(g) The superintendent or director shall notify the board of
6463		-	trustees or governing body of the school district, district of
6464		-	innovation, open-enrollment charter school, other charter entity,
6465		-	regional education service center, or shared services arrangement
6466		-	and the employee of the filing of the report required by Subsection
6467		-	(f).
6468		-	(h) A superintendent or director who in good faith and while
6469		-	acting in an official capacity files a report with the commissioner
6470		-	under Subsection (f) or a principal who in good faith and while
6471		-	acting in an official capacity notifies a superintendent or
6472		-	director under Subsection (e) is immune from civil or criminal
6473		-	liability that might otherwise be incurred or imposed.
6474		-	(i) The commissioner shall refer an educator who fails to
6475		-	file a report in violation of Subsection (f) to the State Board for
6476		-	Educator Certification, and the board shall determine whether to
6477		-	impose sanctions against the educator.
6478		-	(j) The name of a student or minor who is the victim of abuse
6479		-	or unlawful conduct by an employee must be included in a report
6480		-	filed under this section, but the name of the student or minor is
6481		-	not public information under Chapter 552, Government Code.
6482		-	(k) A superintendent or director required to file a report
6483		-	under Subsection (f) commits an offense if the superintendent or
6484		-	director fails to file the report by the date required by that
6485		-	subsection with intent to conceal an employee's criminal record or
6486		-	alleged incident of misconduct. A principal required to notify a
6487		-	superintendent or director about an employee's alleged incident of
6488		-	misconduct under Subsection (e) commits an offense if the principal
6489		-	fails to provide the notice by the date required by that subsection
6490		-	with intent to conceal an employee's alleged incident of
6491		-	misconduct. An offense under this subsection is a state jail
6492		-	felony.
6493		-	(l) The commissioner may review the records of a school
6494		-	district, district of innovation, open-enrollment charter school,
6495		-	other charter entity, regional education service center, or shared
6496		-	services arrangement to ensure compliance with the requirement to
6497		-	report misconduct under this section.
6498		-	(m) The commissioner shall adopt rules as necessary to
6499		-	implement this section.
6500		-	Sec. 22.094. NOTICE OF ALLEGED MISCONDUCT; INVESTIGATION;
6501		-	HEARING. (a) A person described by Section 22.093(b) and who is
6502		-	the subject of a report that alleges misconduct described by
6503		-	Section 22.093(c)(1)(A) or (B) is entitled to a hearing on the
6504		-	merits of the allegations of misconduct under the procedures
6505		-	provided by Chapter 2001, Government Code, to contest the
6506		-	allegation in the report.
6507		-	(b) On receiving a report filed under Section 22.093(f), the
6508		-	commissioner shall promptly send to the person who is the subject of
6509		-	the report a notice that includes:
6510		-	(1) a statement informing the person that the person
6511		-	must request a hearing on the merits of the allegations of
6512		-	misconduct within the period provided by Subsection (c);
6513		-	(2) a request that the person submit a written
6514		-	response within the period provided by Subsection (c) to show cause
6515		-	why the commissioner should not pursue an investigation; and
6516		-	(3) a statement informing the person that if the
6517		-	person does not timely submit a written response to show cause as
6518		-	provided by Subdivision (2), the agency shall provide information
6519		-	indicating the person is under investigation in the manner provided
6520		-	by Subsection (d).
6521		-	(c) A person entitled to a hearing under Subsection (a) must
6522		-	request a hearing and submit a written response to show cause not
6523		-	later than the 10th day after the date the person receives the
6524		-	notice from the commissioner provided under Subsection (b).
6525		-	(d) If a person who receives notice provided under
6526		-	Subsection (b) does not timely submit a written response to show
6527		-	cause why the commissioner should not pursue an investigation, the
6528		-	commissioner shall instruct the agency to make available through
6529		-	the Internet portal developed and maintained by the agency under
6530		-	Section 22.095 information indicating that the person is under
6531		-	investigation for alleged misconduct.
6532		-	(e) If a person entitled to a hearing under Subsection (a)
6533		-	does not request a hearing as provided by Subsection (c), the
6534		-	commissioner shall:
6535		-	(1) based on the report filed under Section 22.093(f),
6536		-	make a determination whether the person engaged in misconduct; and
6537		-	(2) if the commissioner determines that the person
6538		-	engaged in misconduct described by Section 22.093(c)(1)(A) or (B),
6539		-	instruct the agency to add the person's name to the registry
6540		-	maintained under Section 22.092.
6541		-	(f) If a person entitled to a hearing under Subsection (a)
6542		-	requests a hearing as provided by Subsection (c) and the final
6543		-	decision in that hearing determines that the person engaged in
6544		-	misconduct described by Section 22.093(c)(1)(A) or (B), the
6545		-	commissioner shall instruct the agency to add the person's name to
6546		-	the registry maintained under Section 22.092.
6547		-	(g) If a person entitled to a hearing under Subsection (a)
6548		-	requests a hearing as provided by Subsection (c) and the final
6549		-	decision in that hearing determines that the person did not engage
6550		-	in misconduct described by Section 22.093(c)(1)(A) or (B), the
6551		-	commissioner shall instruct the agency to immediately remove from
6552		-	the Internet portal developed and maintained by the agency under
6553		-	Section 22.095 the information indicating that the person is under
6554		-	investigation for alleged misconduct.
6555		-	(h) The commissioner shall adopt rules as necessary to
6556		-	implement this section.
6557		-	Sec. 22.095. INTERNET PORTAL. The agency shall develop and
6558		-	maintain an Internet portal through which:
6559		-	(1) a report required under Section 22.093(f) may be
6560		-	confidentially and securely filed; and
6561		-	(2) the agency makes available:
6562		-	(A) the registry of persons who are not eligible
6563		-	to be employed in public schools as described by Section 22.092; and
6564		-	(B) information indicating that a person is under
6565		-	investigation for alleged misconduct in accordance with Section
6566		-	22.094(d), provided that the agency must provide the information
6567		-	through a procedure other than the registry described under
6568		-	Paragraph (A).
6569		-	Sec. 22.096. COMPLIANCE MONITORING. The agency shall
6570		-	periodically conduct site visits and review the records of school
6571		-	districts, districts of innovation, open-enrollment charter
6572		-	schools, other charter entities, regional education service
6573		-	centers, and shared services arrangements to ensure compliance with
6574		-	Section 22.092(b).
6575		-	SECTION 2A.017. Section 39.0302(a), Education Code, is
6576		-	amended to read as follows:
6577		-	(a) During an agency investigation or audit of a school
6578		-	district under Section 39.0301(e) or (f), an accreditation
6579		-	investigation under Section 39.057(a)(8) or (14), a compliance
6580		-	review under Section 21.006(k), 22.093(l), or 22.096, or an
6581		-	investigation by the State Board for Educator Certification of an
6582		-	educator for an alleged violation of an assessment instrument
6583		-	security procedure established under Section 39.0301(a), the
6584		-	commissioner may issue a subpoena to compel the attendance of a
6585		-	relevant witness or the production, for inspection or copying, of
6586		-	relevant evidence that is located in this state.
	5516	+	Sec. 39A.105. CONTENTS OF CAMPUS TURNAROUND PLAN. (a) A
	5517	+	campus turnaround plan must include:
	5518	+	(1) details on the method for restructuring,
	5519	+	reforming, or reconstituting the campus;
	5520	+	(2) a detailed description of the academic programs to
	5521	+	be offered at the campus, including:
	5522	+	(A) instructional methods;
	5523	+	(B) length of school day and school year;
	5524	+	(C) academic credit and promotion criteria; and
	5525	+	(D) programs to serve special student
	5526	+	populations;
	5527	+	(3) if a district charter is to be granted for the
	5528	+	campus under Section 12.0522:
	5529	+	(A) the term of the charter; and
	5530	+	(B) information on the implementation of the
	5531	+	charter;
	5532	+	(4) written comments from:
	5533	+	(A) the campus-level committee established under
	5534	+	Section 11.251, if applicable;
	5535	+	(B) parents; and
	5536	+	(C) teachers at the campus; and
	5537	+	(5) a detailed description of the budget, staffing,
	5538	+	and financial resources required to implement the plan, including
	5539	+	any supplemental resources to be provided by the school district or
	5540	+	other identified sources.
	5541	+	(b) A campus may submit an accelerated campus excellence
	5542	+	turnaround plan as provided by this subsection. The plan must
	5543	+	provide:
	5544	+	(1) the assignment of a principal to the campus who has
	5545	+	demonstrated a history of improvement in student academic growth at
	5546	+	campuses in which the principal has previously worked;
	5547	+	(2) that the principal has final authority over
	5548	+	personnel decisions at the campus;
	5549	+	(3) that at least 80 percent of the classroom teachers
	5550	+	assigned to the campus be teachers who performed in the top quartile
	5551	+	of teachers in the district that employed the teacher during the
	5552	+	previous school year, with performance determined by:
	5553	+	(A) for a teacher who taught in the district
	5554	+	during the previous school year:
	5555	+	(i) the teacher's impact on student growth;
	5556	+	and
	5557	+	(ii) an evaluation of the teacher based on
	5558	+	classroom observation; and
	5559	+	(B) for a teacher who did not teach in the
	5560	+	district during the previous school year, data and other evidence
	5561	+	indicating that if the teacher had taught in the district during the
	5562	+	previous school year, the teacher would have performed in the top
	5563	+	quartile of teachers in the district;
	5564	+	(4) a detailed description of the employment and
	5565	+	compensation structures for the principal and classroom teachers,
	5566	+	which must include:
	5567	+	(A) significant incentives for a high-performing
	5568	+	principal or teacher to remain at the campus; and
	5569	+	(B) a three-year commitment by the district to
	5570	+	continue incentives for the principal and teachers;
	5571	+	(5) policies and procedures for the implementation of
	5572	+	best practices at the campus, including:
	5573	+	(A) data-driven instructional practices;
	5574	+	(B) a system of observation of and feedback for
	5575	+	classroom teachers;
	5576	+	(C) positive student culture on the campus;
	5577	+	(D) family and community engagement, including
	5578	+	partnerships with parent and community groups; and
	5579	+	(E) extended learning opportunities for
	5580	+	students, which may include service or workforce learning
	5581	+	opportunities; and
	5582	+	(6) assistance by a third-party provider that is
	5583	+	approved by the commissioner in the development and implementation
	5584	+	of the district's plan.
	5585	+	SECTION 2.052. Section 39A.107, Education Code, is amended
	5586	+	by adding Subsection (a-3) to read as follows:
	5587	+	(a-3) Notwithstanding Subsection (a), the commissioner
	5588	+	shall approve a campus turnaround plan that the commissioner
	5589	+	determines meets the requirements for an accelerated campus
	5590	+	excellence turnaround plan under Section 39A.105(b).
	5591	+	SECTION 2.053. Subchapter C, Chapter 39A, Education Code,
	5592	+	is amended by adding Section 39A.116 to read as follows:
	5593	+	Sec. 39A.116. COMMISSIONER AUTHORITY. A decision by the
	5594	+	commissioner under this subchapter is final and may not be
	5595	+	appealed.
	5596	+	SECTION 2.054. Section 822.201(b), Government Code, is
	5597	+	amended to read as follows:
	5598	+	(b) "Salary and wages" as used in Subsection (a) means:
	5599	+	(1) normal periodic payments of money for service the
	5600	+	right to which accrues on a regular basis in proportion to the
	5601	+	service performed;
	5602	+	(2) amounts by which the member's salary is reduced
	5603	+	under a salary reduction agreement authorized by Chapter 610;
	5604	+	(3) amounts that would otherwise qualify as salary and
	5605	+	wages under Subdivision (1) but are not received directly by the
	5606	+	member pursuant to a good faith, voluntary written salary reduction
	5607	+	agreement in order to finance payments to a deferred compensation
	5608	+	or tax sheltered annuity program specifically authorized by state
	5609	+	law or to finance benefit options under a cafeteria plan qualifying
	5610	+	under Section 125 of the Internal Revenue Code of 1986, if:
	5611	+	(A) the program or benefit options are made
	5612	+	available to all employees of the employer; and
	5613	+	(B) the benefit options in the cafeteria plan are
	5614	+	limited to one or more options that provide deferred compensation,
	5615	+	group health and disability insurance, group term life insurance,
	5616	+	dependent care assistance programs, or group legal services plans;
	5617	+	(4) performance pay awarded to an employee by a school
	5618	+	district as part of a total compensation plan approved by the board
	5619	+	of trustees of the district and meeting the requirements of
	5620	+	Subsection (e);
	5621	+	(5) the benefit replacement pay a person earns under
	5622	+	Subchapter H, Chapter 659, except as provided by Subsection (c);
	5623	+	(6) stipends paid to teachers in accordance with
	5624	+	former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
	5625	+	(7) amounts by which the member's salary is reduced or
	5626	+	that are deducted from the member's salary as authorized by
	5627	+	Subchapter J, Chapter 659;
	5628	+	(8) a merit salary increase made under Section 51.962,
	5629	+	Education Code;
	5630	+	(9) amounts received under the relevant parts of the
	5631	+	educator excellence awards program under Subchapter O, Chapter 21,
	5632	+	Education Code, or a mentoring program under Section 21.458,
	5633	+	Education Code, that authorize compensation for service;
	5634	+	(10) salary amounts designated as health care
	5635	+	supplementation by an employee under Subchapter D, Chapter 22,
	5636	+	Education Code; [and]
	5637	+	(11) to the extent required by Sections 3401(h) and
	5638	+	414(u)(12), Internal Revenue Code of 1986, differential wage
	5639	+	payments received by an individual from an employer on or after
	5640	+	January 1, 2009, while the individual is performing qualified
	5641	+	military service as defined by Section 414(u), Internal Revenue
	5642	+	Code of 1986; and
	5643	+	(12) a salary increase paid to classroom teachers and
	5644	+	librarians under Section 21.4023, Education Code.
6587	5645		ARTICLE 3. CONFORMING CHANGES
6588	5646		SECTION 3.001. Sections 7.055(b)(34) and (35), Education
6589	5647		Code, are amended to read as follows:
6590	5648		(34) The commissioner shall perform duties in
6591	5649		connection with the options for local revenue levels in excess of
6592	5650		entitlement [equalized wealth level] under Chapter 49 [41].
6593	5651		(35) The commissioner shall perform duties in
6594	5652		connection with the Foundation School Program as prescribed by
6595	5653		Chapter 48 [42].
6596	5654		SECTION 3.002. Sections 7.062(a) and (c), Education Code,
6597	5655		are amended to read as follows:
6598	5656		(a) In this section, "wealth per student" means a school
6599	5657		district's taxable value of property as determined under Subchapter
6600	5658		M, Chapter 403, Government Code, or, if applicable, Section 48.258
6601	5659		[42.2521], divided by the district's average daily attendance as
6602	5660		determined under Section 48.005 [42.005].
6603	5661		(c) Except as otherwise provided by this subsection, if the
6604	5662		commissioner certifies that the amount appropriated for a state
6605	5663		fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
6606	5664		the amount to which school districts are entitled under those
6607	5665		subchapters for that year, the commissioner shall use the excess
6608	5666		funds, in an amount not to exceed $20 million in any state fiscal
6609	5667		year, for the purpose of making grants under this section. The use
6610	5668		of excess funds under this subsection has priority over any
6611	5669		provision of Chapter 48 [42] that permits or directs the use of
6612	5670		excess foundation school program funds, including Sections 48.258
6613	5671		[42.2517, 42.2521], 48.259 [42.2522], and 48.267 [42.2531]. The
6614	5672		commissioner is required to use excess funds as provided by this
6615	5673		subsection only if the commissioner is not required to reduce the
6616	5674		total amount of state funds allocated to school districts under
6617	5675		Section 48.266(f) [42.253(h)].
6618	5676		SECTION 3.003. Section 7.102(c)(30), Education Code, is
6619	5677		amended to read as follows:
6620	5678		(30) The board shall perform duties in connection with
6621	5679		the Foundation School Program as prescribed by Chapter 48 [42].
6622	5680		SECTION 3.004. Section 8.051(d), Education Code, is amended
6623	5681		to read as follows:
6624	5682		(d) Each regional education service center shall maintain
6625	5683		core services for purchase by school districts and campuses. The
6626	5684		core services are:
6627	5685		(1) training and assistance in:
6628	5686		(A) teaching each subject area assessed under
6629	5687		Section 39.023; and
6630	5688		(B) providing instruction in personal financial
6631	5689		literacy as required under Section 28.0021;
6632	5690		(2) training and assistance in providing a gifted and
6633	5691		talented program and each program that qualifies for a funding
6634	5692		allotment under Section 48.102 [42.151], 48.104 [42.152], or 48.105
6635	5693		[42.153, or 42.156];
6636	5694		(3) assistance specifically designed for a school
6637	5695		district or campus assigned an unacceptable performance rating
6638	5696		under Section 39.054;
6639	5697		(4) training and assistance to teachers,
6640	5698		administrators, members of district boards of trustees, and members
6641	5699		of site-based decision-making committees;
6642	5700		(5) assistance specifically designed for a school
6643	5701		district that is considered out of compliance with state or federal
6644	5702		special education requirements, based on the agency's most recent
6645	5703		compliance review of the district's special education programs; and
6646	5704		(6) assistance in complying with state laws and rules.
6647	5705		SECTION 3.005. Section 8.056, Education Code, is amended to
6648	5706		read as follows:
6649	5707		Sec. 8.056. LIMITATION ON COMPENSATION FOR CERTAIN
6650	5708		SERVICES. A regional education service center that acts as a fiscal
6651	5709		agent or broker in connection with an agreement between two school
6652	5710		districts under Subchapter E, Chapter 49 [41], may not, unless
6653	5711		authorized in writing by the district receiving transferred funds
6654	5712		in accordance with the agreement:
6655	5713		(1) be compensated by the districts in an amount that
6656	5714		exceeds the administrative cost of providing the service; or
6657	5715		(2) otherwise retain for use by the center any amount
6658	5716		other than the compensation permitted under Subdivision (1) from
6659	5717		the funds transferred between the districts in accordance with the
6660	5718		agreement.
6661	5719		SECTION 3.006. Section 11.158(a), Education Code, is
6662	5720		amended to read as follows:
6663	5721		(a) The board of trustees of an independent school district
6664	5722		may require payment of:
6665	5723		(1) a fee for materials used in any program in which
6666	5724		the resultant product in excess of minimum requirements becomes, at
6667	5725		the student's option, the personal property of the student, if the
6668	5726		fee does not exceed the cost of materials;
6669	5727		(2) membership dues in student organizations or clubs
6670	5728		and admission fees or charges for attending extracurricular
6671	5729		activities, if membership or attendance is voluntary;
6672	5730		(3) a security deposit for the return of materials,
6673	5731		supplies, or equipment;
6674	5732		(4) a fee for personal physical education and athletic
6675	5733		equipment and apparel, although any student may provide the
6676	5734		student's own equipment or apparel if it meets reasonable
6677	5735		requirements and standards relating to health and safety
6678	5736		established by the board;
6679	5737		(5) a fee for items of personal use or products that a
6680	5738		student may purchase at the student's option, such as student
6681	5739		publications, class rings, annuals, and graduation announcements;
6682	5740		(6) a fee specifically permitted by any other statute;
6683	5741		(7) a fee for an authorized voluntary student health
6684	5742		and accident benefit plan;
6685	5743		(8) a reasonable fee, not to exceed the actual annual
6686	5744		maintenance cost, for the use of musical instruments and uniforms
6687	5745		owned or rented by the district;
6688	5746		(9) a fee for items of personal apparel that become the
6689	5747		property of the student and that are used in extracurricular
6690	5748		activities;
6691	5749		(10) a parking fee or a fee for an identification card;
6692	5750		(11) a fee for a driver training course, not to exceed
6693	5751		the actual district cost per student in the program for the current
6694	5752		school year;
6695	5753		(12) a fee for a course offered for credit that
6696	5754		requires the use of facilities not available on the school premises
6697	5755		or the employment of an educator who is not part of the school's
6698	5756		regular staff, if participation in the course is at the student's
6699	5757		option;
6700	5758		(13) a fee for a course offered during summer school,
6701	5759		except that the board may charge a fee for a course required for
6702	5760		graduation only if the course is also offered without a fee during
6703	5761		the regular school year;
6704	5762		(14) a reasonable fee for transportation of a student
6705	5763		who lives within two miles of the school the student attends to and
6706	5764		from that school, except that the board may not charge a fee for
6707	5765		transportation for which the school district receives funds under
6708	5766		Section 48.151(d) [42.155(d)];
6709	5767		(15) a reasonable fee, not to exceed $50, for costs
6710	5768		associated with an educational program offered outside of regular
6711	5769		school hours through which a student who was absent from class
6712	5770		receives instruction voluntarily for the purpose of making up the
6713	5771		missed instruction and meeting the level of attendance required
6714	5772		under Section 25.092; or
6715	5773		(16) if the district does not receive any funds under
6716	5774		Section 48.151 [42.155] and does not participate in a county
6717	5775		transportation system for which an allotment is provided under
6718	5776		Section 48.151(i) [42.155(i)], a reasonable fee for the
6719	5777		transportation of a student to and from the school the student
6720	5778		attends.
6721	5779		SECTION 3.007. Section 11.174(a), Education Code, is
6722	5780		amended to read as follows:
6723	5781		(a) A school district campus qualifies for an exemption from
6724	5782		intervention as provided by Subsection (f) and qualifies for
6725	5783		funding as provided by Section 48.252 [42.2511] if the board of
6726	5784		trustees of the district contracts to partner to operate the
6727	5785		district campus as provided by this section with:
6728	5786		(1) the governing body of an open-enrollment charter
6729	5787		school; or
6730	5788		(2) on approval by the commissioner, an entity granted
6731	5789		a charter by the district under Subchapter C, Chapter 12, that is
6732	5790		eligible to be awarded a charter under Section 12.101(a).
6733	5791		SECTION 3.008. Section 12.013(b), Education Code, is
6734	5792		amended to read as follows:
6735	5793		(b) A home-rule school district is subject to:
6736	5794		(1) a provision of this title establishing a criminal
6737	5795		offense;
6738	5796		(2) a provision of this title relating to limitations
6739	5797		on liability; and
6740	5798		(3) a prohibition, restriction, or requirement, as
6741	5799		applicable, imposed by this title or a rule adopted under this
6742	5800		title, relating to:
6743	5801		(A) the Public Education Information Management
6744	5802		System (PEIMS) to the extent necessary to monitor compliance with
6745	5803		this subchapter as determined by the commissioner;
6746	5804		(B) educator certification under Chapter 21 and
6747	5805		educator rights under Sections 21.407, 21.408, and 22.001;
6748	5806		(C) criminal history records under Subchapter C,
6749	5807		Chapter 22;
6750	5808		(D) student admissions under Section 25.001;
6751	5809		(E) school attendance under Sections 25.085,
6752	5810		25.086, and 25.087;
6753	5811		(F) inter-district or inter-county transfers of
6754	5812		students under Subchapter B, Chapter 25;
6755	5813		(G) elementary class size limits under Section
6756	5814		25.112, in the case of any campus in the district that fails to
6757	5815		satisfy any standard under Section 39.054(e);
6758	5816		(H) high school graduation under Section 28.025;
6759	5817		(I) special education programs under Subchapter
6760	5818		A, Chapter 29;
6761	5819		(J) bilingual education under Subchapter B,
6762	5820		Chapter 29;
6763	5821		(K) prekindergarten programs under Subchapter E,
6764	5822		Chapter 29;
6765	5823		(L) safety provisions relating to the
6766	5824		transportation of students under Sections 34.002, 34.003, 34.004,
6767	5825		and 34.008;
6768	5826		(M) computation and distribution of state aid
6769	5827		under Chapters 31, [42, and] 43, and 48;
6770	5828		(N) extracurricular activities under Section
6771	5829		33.081;
6772	5830		(O) health and safety under Chapter 38;
6773	5831		(P) public school accountability under
6774	5832		Subchapters B, C, D, and J, Chapter 39, and Chapter 39A;
6775	5833		(Q) options for local revenue levels in excess of
6776	5834		entitlement [equalized wealth] under Chapter 49 [41];
6777	5835		(R) a bond or other obligation or tax rate under
6778	5836		Chapters [42,] 43, [and] 45, and 48; and
6779	5837		(S) purchasing under Chapter 44.
6780	5838		SECTION 3.009. Section 12.029(b), Education Code, is
6781	5839		amended to read as follows:
6782	5840		(b) Except as provided by Subchapter H, Chapter 49 [41], if
6783	5841		two or more school districts having different status, one of which
6784	5842		is home-rule school district status, consolidate into a single
6785	5843		district, the petition under Section 13.003 initiating the
6786	5844		consolidation must state the status for the consolidated district.
6787	5845		The ballot shall be printed to permit voting for or against the
6788	5846		proposition: "Consolidation of (names of school districts) into a
6789	5847		single school district governed as (status of school district
6790	5848		specified in the petition)."
6791	5849		SECTION 3.010. Section 13.051(c), Education Code, is
6792	5850		amended to read as follows:
6793	5851		(c) Territory that does not have residents may be detached
6794	5852		from a school district and annexed to another school district if:
6795	5853		(1) the total taxable value of the property in the
6796	5854		territory according to the most recent certified appraisal roll for
6797	5855		each school district is not greater than:
6798	5856		(A) five percent of the district's taxable value
6799	5857		of all property in that district as determined under Subchapter M,
6800	5858		Chapter 403, Government Code; and
6801	5859		(B) $5,000 property value per student in average
6802	5860		daily attendance as determined under Section 48.005 [42.005]; and
6803	5861		(2) the school district from which the property will
6804	5862		be detached does not own any real property located in the territory.
6805		-	SECTION 3.011. Section 13.054(i), Education Code, is
6806		-	amended to read as follows:
	5863	+	SECTION 3.011. Sections 13.054(f) and (i), Education Code,
	5864	+	are amended to read as follows:
	5865	+	(f) For five years beginning with the school year in which
	5866	+	the annexation occurs, a school district shall receive additional
	5867	+	funding under this subsection or Subsection (h). The amount of
	5868	+	funding shall be determined by multiplying the lesser of the
	5869	+	enlarged district's local fund assignment computed under Section
	5870	+	48.256 [42.252] or the enlarged district's total cost of tier one by
	5871	+	a fraction, the numerator of which is the number of students
	5872	+	residing in the territory annexed to the receiving district
	5873	+	preceding the date of the annexation and the denominator of which is
	5874	+	the number of students residing in the district as enlarged on the
	5875	+	date of the annexation.
6807	5876		(i) The funding provided under Subsection (f), (g), or (h)
6808	5877		is in addition to other funding the district receives through other
6809	5878		provisions of this code, including Chapters 48 [41] and 49 [42].
6810	5879		SECTION 3.012. Sections 13.282(a) and (b), Education Code,
6811	5880		are amended to read as follows:
6812	5881		(a) The amount of incentive aid payments may not exceed the
6813	5882		difference between:
6814	5883		(1) the sum of the entitlements computed under Section
6815	5884		48.266 [42.253] that would have been paid to the districts included
6816	5885		in the reorganized district if the districts had not been
6817	5886		consolidated; and
6818	5887		(2) the amount to which the reorganized district is
6819	5888		entitled under Section 48.266 [42.253].
6820	5889		(b) If the reorganized district is not eligible for an
6821	5890		entitlement under Section 48.266 [42.253], the amount of the
6822	5891		incentive aid payments may not exceed the sum of the entitlements
6823	5892		computed under Section 48.266 [42.253] for which the districts
6824	5893		included in the reorganized district were eligible in the school
6825	5894		year when they were consolidated.
6826	5895		SECTION 3.013. Section 13.283, Education Code, is amended
6827	5896		to read as follows:
6828	5897		Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
6829	5898		shall be reduced in direct proportion to any reduction in the
6830	5899		average daily attendance as determined under Section 48.005
6831	5900		[42.005] of the reorganized school district for the preceding year.
6832	5901		SECTION 3.014. Section 21.402(a), Education Code, is
6833	5902		amended to read as follows:
6834	5903		(a) Except as provided by Subsection (e-1) or (f), a school
6835	5904		district must pay each classroom teacher, full-time librarian,
6836	5905		full-time school counselor certified under Subchapter B, or
6837	5906		full-time school nurse not less than the minimum monthly salary,
6838	5907		based on the employee's level of experience in addition to other
6839	5908		factors, as determined by commissioner rule, determined by the
6840	5909		following formula:
6841	5910		MS = SF x FS
6842	5911		where:
6843	5912		"MS" is the minimum monthly salary;
6844	5913		"SF" is the applicable salary factor specified by Subsection
6845	5914		(c); and
6846	5915		"FS" is the amount, as determined by the commissioner under
6847	5916		Subsection (b), of the basic allotment as provided by Section
6848	5917		48.051(a) [42.101(a)] or (b) for a school district with a
6849	5918		maintenance and operations tax rate at least equal to the state
6850	5919		maximum compressed tax rate, as defined by Section 48.051(a)
6851	5920		[42.101(a)].
6852	5921		SECTION 3.015. Section 21.4021(a), Education Code, is
6853	5922		amended to read as follows:
6854	5923		(a) Notwithstanding Section 21.401 and subject to Section
6855	5924		21.4022, the board of trustees of a school district may, in
6856	5925		accordance with district policy, implement a furlough program and
6857	5926		reduce the number of days of service otherwise required under
6858	5927		Section 21.401 by not more than six days of service during a school
6859	5928		year if the commissioner certifies in accordance with Section
6860	5929		48.010 [42.009] that the district will be provided with less state
6861	5930		and local funding for that year than was provided to the district
6862	5931		for the 2010-2011 school year.
6863		-	SECTION 3.016. Section 25.001(a), Education Code, is
	5932	+	SECTION 3.016. Section 21.410(h), Education Code, is
	5933	+	amended to read as follows:
	5934	+	(h) A grant a school district receives under this section is
	5935	+	in addition to any funding the district receives under Chapter 48
	5936	+	[42]. The commissioner shall distribute funds under this section
	5937	+	with the Foundation School Program payment to which the district is
	5938	+	entitled as soon as practicable after the end of the school year as
	5939	+	determined by the commissioner. A district to which Chapter 49 [41]
	5940	+	applies is entitled to the grants paid under this section. The
	5941	+	commissioner shall determine the timing of the distribution of
	5942	+	grants to a district that does not receive Foundation School
	5943	+	Program payments.
	5944	+	SECTION 3.017. Section 21.411(h), Education Code, is
	5945	+	amended to read as follows:
	5946	+	(h) A grant a school district receives under this section is
	5947	+	in addition to any funding the district receives under Chapter 48
	5948	+	[42]. The commissioner shall distribute funds under this section
	5949	+	with the Foundation School Program payment to which the district is
	5950	+	entitled as soon as practicable after the end of the school year as
	5951	+	determined by the commissioner. A district to which Chapter 49 [41]
	5952	+	applies is entitled to the grants paid under this section. The
	5953	+	commissioner shall determine the timing of the distribution of
	5954	+	grants to a district that does not receive Foundation School
	5955	+	Program payments.
	5956	+	SECTION 3.018. Section 21.412(h), Education Code, is
	5957	+	amended to read as follows:
	5958	+	(h) A grant a school district receives under this section is
	5959	+	in addition to any funding the district receives under Chapter 48
	5960	+	[42]. The commissioner shall distribute funds under this section
	5961	+	with the Foundation School Program payment to which the district is
	5962	+	entitled as soon as practicable after the end of the school year as
	5963	+	determined by the commissioner. A district to which Chapter 49 [41]
	5964	+	applies is entitled to the grants paid under this section. The
	5965	+	commissioner shall determine the timing of the distribution of
	5966	+	grants to a district that does not receive Foundation School
	5967	+	Program payments.
	5968	+	SECTION 3.019. Section 21.413(h), Education Code, is
	5969	+	amended to read as follows:
	5970	+	(h) A grant a school district receives under this section is
	5971	+	in addition to any funding the district receives under Chapter 48
	5972	+	[42]. The commissioner shall distribute funds under this section
	5973	+	with the Foundation School Program payment to which the district is
	5974	+	entitled as soon as practicable after the end of the school year as
	5975	+	determined by the commissioner. A district to which Chapter 49 [41]
	5976	+	applies is entitled to the grants paid under this section. The
	5977	+	commissioner shall determine the timing of the distribution of
	5978	+	grants to a district that does not receive Foundation School
	5979	+	Program payments.
	5980	+	SECTION 3.020. Section 25.001(a), Education Code, is
6864	5981		amended to read as follows:
6865	5982		(a) A person who, on the first day of September of any school
6866	5983		year, is at least five years of age and under 21 years of age, or is
6867	5984		at least 21 years of age and under 26 years of age and is admitted by
6868	5985		a school district to complete the requirements for a high school
6869	5986		diploma is entitled to the benefits of the available school fund for
6870	5987		that year. Any other person enrolled in a prekindergarten class
6871	5988		under Section 29.153 [or Subchapter E-1, Chapter 29,] is entitled
6872	5989		to the benefits of the available school fund.
6873		-	SECTION 3.~~017~~. Section 25.008(b), Education Code, is
	5990	+	SECTION 3.021. Section 25.008(b), Education Code, is
6874	5991		amended to read as follows:
6875	5992		(b) Subsection (a) does not apply to enrollment in a program
6876	5993		under Section 29.088 or [,] 29.090[, or 29.098] or in a similar
6877	5994		intensive program.
6878		-	SECTION 3.~~018~~. Section 25.081(e), Education Code, is
	5995	+	SECTION 3.022. Section 25.081(e), Education Code, is
6879	5996		amended to read as follows:
6880	5997		(e) A school district or education program is exempt from
6881	5998		the minimum minutes of operation requirement if the district's or
6882	5999		program's average daily attendance is calculated under Section
6883	6000		48.005(j) [42.005(j)].
6884		-	SECTION 3.~~019~~. Section 25.081(f), Education Code, as added
	6001	+	SECTION 3.023. Section 25.081(f), Education Code, as added
6885	6002		by Chapter 851 (H.B. 2442), Acts of the 85th Legislature, Regular
6886	6003		Session, 2017, is amended to read as follows:
6887	6004		(f) The commissioner may proportionally reduce the amount
6888	6005		of funding a district receives under Chapter [41, 42, or] 46, 48, or
6889	6006		49 and the average daily attendance calculation for the district if
6890	6007		the district operates on a calendar that provides fewer minutes of
6891	6008		operation than required under Subsection (a).
6892		-	SECTION 3.~~020~~. Sections 25.112(a) and (b), Education Code,
	6009	+	SECTION 3.024. Sections 25.112(a) and (b), Education Code,
6893	6010		are amended to read as follows:
6894	6011		(a) Except as otherwise authorized by this section, a school
6895	6012		district may not enroll more than 22 students in a kindergarten,
6896	6013		first, second, third, or fourth grade class. That limitation does
6897	6014		not apply during:
6898	6015		(1) any 12-week period of the school year selected by
6899	6016		the district, in the case of a district whose average daily
6900	6017		attendance is adjusted under Section 48.005(c) [42.005(c)]; or
6901	6018		(2) the last 12 weeks of any school year in the case of
6902	6019		any other district.
6903	6020		(b) Not later than the 30th day after the first day of the
6904	6021		12-week period for which a district whose average daily attendance
6905	6022		is adjusted under Section 48.005(c) [42.005(c)] is claiming an
6906	6023		exemption under Subsection (a), the district shall notify the
6907	6024		commissioner in writing that the district is claiming an exemption
6908	6025		for the period stated in the notice.
6909		-	SECTION 3.~~021~~. Section 28.0061(b), Education Code, is
	6026	+	SECTION 3.025. Section 28.0061(b), Education Code, is
6910	6027		amended to read as follows:
6911	6028		(b) A school district is eligible to participate in the
6912	6029		pilot program if, as determined by the commissioner, the district
6913	6030		has low student performance on:
6914	6031		(1) a reading instrument administered in accordance
6915	6032		with Section 28.006(c) or (c-2); or
6916	6033		(2) a third grade reading assessment instrument
6917	6034		administered under Section 39.023(a).
6918		-	SECTION 3.~~022~~. Section 28.0211(m-1), Education Code, is
	6035	+	SECTION 3.026. Section 28.0211(m-1), Education Code, is
6919	6036		amended to read as follows:
6920	6037		(m-1) For purposes of certification under Subsection (m),
6921	6038		the commissioner may not consider Foundation School Program funds
6922	6039		except for compensatory education funds under Section 48.104
6923	6040		[42.152]. This section may be implemented only if the commissioner
6924	6041		certifies that sufficient funds have been appropriated during a
6925	6042		school year for administering the accelerated instruction programs
6926	6043		specified under this section and Section 28.0217, including teacher
6927	6044		training for that purpose.
6928		-	SECTION 3.~~023~~. Section 29.001, Education Code, is amended
	6045	+	SECTION 3.027. Section 29.001, Education Code, is amended
6929	6046		to read as follows:
6930	6047		Sec. 29.001. STATEWIDE PLAN. The agency shall develop, and
6931	6048		modify as necessary, a statewide design, consistent with federal
6932	6049		law, for the delivery of services to children with disabilities in
6933	6050		this state that includes rules for the administration and funding
6934	6051		of the special education program so that a free appropriate public
6935	6052		education is available to all of those children between the ages of
6936	6053		three and 21. The statewide design shall include the provision of
6937	6054		services primarily through school districts and shared services
6938		-	arrangements, supplemented by regional education service
6939		-	centers. The agency shall also develop and implement a statewide
6940		-	plan with programmatic content that includes procedures designed
6941		-	to:
	6055	+	arrangements, supplemented by regional education service centers.
	6056	+	The agency shall also develop and implement a statewide plan with
	6057	+	programmatic content that includes procedures designed to:
6942	6058		(1) ensure state compliance with requirements for
6943	6059		supplemental federal funding for all state-administered programs
6944	6060		involving the delivery of instructional or related services to
6945	6061		students with disabilities;
6946	6062		(2) facilitate interagency coordination when other
6947	6063		state agencies are involved in the delivery of instructional or
6948	6064		related services to students with disabilities;
6949	6065		(3) periodically assess statewide personnel needs in
6950	6066		all areas of specialization related to special education and pursue
6951	6067		strategies to meet those needs through a consortium of
6952	6068		representatives from regional education service centers, local
6953	6069		education agencies, and institutions of higher education and
6954	6070		through other available alternatives;
6955	6071		(4) ensure that regional education service centers
6956	6072		throughout the state maintain a regional support function, which
6957	6073		may include direct service delivery and a component designed to
6958	6074		facilitate the placement of students with disabilities who cannot
6959	6075		be appropriately served in their resident districts;
6960	6076		(5) allow the agency to effectively monitor and
6961	6077		periodically conduct site visits of all school districts to ensure
6962	6078		that rules adopted under this section are applied in a consistent
6963	6079		and uniform manner, to ensure that districts are complying with
6964	6080		those rules, and to ensure that annual statistical reports filed by
6965	6081		the districts and not otherwise available through the Public
6966	6082		Education Information Management System under Sections 48.008 and
6967	6083		48.009 [Section 42.006] are accurate and complete;
6968	6084		(6) ensure that appropriately trained personnel are
6969	6085		involved in the diagnostic and evaluative procedures operating in
6970	6086		all districts and that those personnel routinely serve on district
6971	6087		admissions, review, and dismissal committees;
6972	6088		(7) ensure that an individualized education program
6973	6089		for each student with a disability is properly developed,
6974	6090		implemented, and maintained in the least restrictive environment
6975	6091		that is appropriate to meet the student's educational needs;
6976	6092		(8) ensure that, when appropriate, each student with a
6977	6093		disability is provided an opportunity to participate in career and
6978	6094		technology and physical education classes, in addition to
6979	6095		participating in regular or special classes;
6980	6096		(9) ensure that each student with a disability is
6981	6097		provided necessary related services;
6982	6098		(10) ensure that an individual assigned to act as a
6983	6099		surrogate parent for a child with a disability, as provided by 20
6984	6100		U.S.C. Section 1415(b), is required to:
6985	6101		(A) complete a training program that complies
6986	6102		with minimum standards established by agency rule;
6987	6103		(B) visit the child and the child's school;
6988	6104		(C) consult with persons involved in the child's
6989	6105		education, including teachers, caseworkers, court-appointed
6990	6106		volunteers, guardians ad litem, attorneys ad litem, foster parents,
6991	6107		and caretakers;
6992	6108		(D) review the child's educational records;
6993	6109		(E) attend meetings of the child's admission,
6994	6110		review, and dismissal committee;
6995	6111		(F) exercise independent judgment in pursuing
6996	6112		the child's interests; and
6997	6113		(G) exercise the child's due process rights under
6998	6114		applicable state and federal law; and
6999	6115		(11) ensure that each district develops a process to
7000	6116		be used by a teacher who instructs a student with a disability in a
7001	6117		regular classroom setting:
7002	6118		(A) to request a review of the student's
7003	6119		individualized education program;
7004	6120		(B) to provide input in the development of the
7005	6121		student's individualized education program;
7006	6122		(C) that provides for a timely district response
7007	6123		to the teacher's request; and
7008	6124		(D) that provides for notification to the
7009	6125		student's parent or legal guardian of that response.
7010		-	SECTION 3.~~024~~. Section 29.002, Education Code, is amended
	6126	+	SECTION 3.028. Section 29.002, Education Code, is amended
7011	6127		to read as follows:
7012	6128		Sec. 29.002. DEFINITION. In this subchapter, "special
7013	6129		services" means:
7014	6130		(1) special education instruction, which may be
7015	6131		provided by professional and supported by paraprofessional
7016	6132		personnel in the regular classroom or in an instructional
7017	6133		arrangement described by Section 48.102 [42.151]; and
7018	6134		(2) related services, which are developmental,
7019	6135		corrective, supportive, or evaluative services, not instructional
7020	6136		in nature, that may be required for the student to benefit from
7021	6137		special education instruction and for implementation of a student's
7022	6138		individualized education program.
7023		-	SECTION 3.~~025~~. Section 29.008(b), Education Code, is
	6139	+	SECTION 3.029. Section 29.008(b), Education Code, is
7024	6140		amended to read as follows:
7025	6141		(b) Except as provided by Subsection (c), costs of an
7026	6142		approved contract for residential placement may be paid from a
7027	6143		combination of federal, state, and local funds. The local share of
7028	6144		the total contract cost for each student is that portion of the
7029	6145		local tax effort that exceeds the district's local fund assignment
7030	6146		under Section 48.256 [42.252], divided by the average daily
7031	6147		attendance in the district. If the contract involves a private
7032	6148		facility, the state share of the total contract cost is that amount
7033	6149		remaining after subtracting the local share. If the contract
7034	6150		involves a public facility, the state share is that amount
7035	6151		remaining after subtracting the local share from the portion of the
7036	6152		contract that involves the costs of instructional and related
7037	6153		services. For purposes of this subsection, "local tax effort"
7038	6154		means the total amount of money generated by taxes imposed for debt
7039	6155		service and maintenance and operation less any amounts paid into a
7040	6156		tax increment fund under Chapter 311, Tax Code.
7041		-	SECTION 3.~~026~~. Section 29.014(d), Education Code, is
	6157	+	SECTION 3.030. Section 29.014(d), Education Code, is
7042	6158		amended to read as follows:
7043	6159		(d) The basic allotment for a student enrolled in a district
7044	6160		to which this section applies is adjusted by[:
7045	6161		[(1) the cost of education adjustment under Section
7046	6162		42.102 for the school district in which the district is
7047	6163		geographically located; and
7048	6164		[(2)] the weight for a homebound student under Section
7049	6165		48.102(a) [42.151(a)].
7050		-	SECTION 3.~~027~~. Section 29.018(b), Education Code, is
	6166	+	SECTION 3.031. Section 29.018(b), Education Code, is
7051	6167		amended to read as follows:
7052	6168		(b) A school district is eligible to apply for a grant under
7053	6169		this section if:
7054	6170		(1) the district does not receive sufficient funds,
7055	6171		including state funds provided under Section 48.102 [42.151] and
7056	6172		federal funds, for a student with disabilities to pay for the
7057	6173		special education services provided to the student; or
7058	6174		(2) the district does not receive sufficient funds,
7059	6175		including state funds provided under Section 48.102 [42.151] and
7060	6176		federal funds, for all students with disabilities in the district
7061	6177		to pay for the special education services provided to the students.
7062		-	SECTION 3.~~028~~. Section 29.022(u)(3), Education Code, is
	6178	+	SECTION 3.032. Section 29.022(u)(3), Education Code, is
7063	6179		amended to read as follows:
7064	6180		(3) "Self-contained classroom" does not include a
7065	6181		classroom that is a resource room instructional arrangement under
7066	6182		Section 48.102 [42.151].
7067		-	SECTION 3.~~029~~. Section 29.081(b-2), Education Code, is
	6183	+	SECTION 3.033. Section 29.081(b-2), Education Code, is
7068	6184		amended to read as follows:
7069	6185		(b-2) A district that is required to provide accelerated
7070	6186		instruction under Subsection (b-1) shall separately budget
7071	6187		sufficient funds, including funds under Section 48.104 [42.152],
7072	6188		for that purpose. [A district may not budget funds received under
7073	6189		Section 42.152 for any other purpose until the district adopts a
7074	6190		budget to support additional accelerated instruction under
7075	6191		Subsection (b-1).]
7076		-	SECTION 3.~~030~~. Section 29.082(a), Education Code, is
	6192	+	SECTION 3.034. Section 29.082(a), Education Code, is
7077	6193		amended to read as follows:
7078	6194		(a) A school district may set aside an amount from the
7079	6195		district's allotment under Section 48.104 [42.152] or may apply to
7080	6196		the agency for funding of an extended year program for a period not
7081	6197		to exceed 30 instructional days for students in:
7082	6198		(1) kindergarten through grade 11 who are identified
7083	6199		as likely not to be promoted to the next grade level for the
7084	6200		succeeding school year; or
7085	6201		(2) grade 12 who are identified as likely not to
7086	6202		graduate from high school before the beginning of the succeeding
7087	6203		school year.
7088		-	SECTION 3.~~031~~. Section 29.086(e), Education Code, is
	6204	+	SECTION 3.035. Section 29.086(e), Education Code, is
7089	6205		amended to read as follows:
7090	6206		(e) The amount of a grant under this section must take into
7091	6207		account funds distributed to the school district under Chapter 48
7092	6208		[42].
7093		-	SECTION 3.~~032~~. Sections 29.087(h) and (j), Education Code,
	6209	+	SECTION 3.036. Sections 29.087(h) and (j), Education Code,
7094	6210		are amended to read as follows:
7095	6211		(h) A student who has received a high school equivalency
7096	6212		certificate is entitled to enroll in a public school as authorized
7097	6213		by Section 25.001 and is entitled to the benefits of the Foundation
7098	6214		School Program under Section 48.003 [42.003] in the same manner as
7099	6215		any other student who has not received a high school diploma.
7100	6216		(j) For purposes of funding under Chapters [41, 42, and] 46,
7101	6217		48, and 49, a student attending a program authorized by this section
7102	6218		may be counted in attendance only for the actual number of hours
7103	6219		each school day the student attends the program, in accordance with
7104	6220		Section 25.081.
7105		-	SECTION 3.~~033~~. Section 29.089(b), Education Code, is
	6221	+	SECTION 3.037. Section 29.089(b), Education Code, is
7106	6222		amended to read as follows:
7107	6223		(b) The commissioner, in consultation with the governor,
7108	6224		lieutenant governor, and speaker of the house of representatives,
7109	6225		by rule shall determine accountability standards under this section
7110	6226		for a school district providing a mentoring services program using
7111	6227		funds allocated under Section 48.104 [42.152].
7112		-	SECTION 3.~~034~~. Sections 29.203(b) and (c), Education Code,
	6228	+	SECTION 3.038. Sections 29.203(b) and (c), Education Code,
7113	6229		are amended to read as follows:
7114	6230		(b) A school district is entitled to the allotment provided
7115	6231		by Section 48.107 [42.157] for each eligible student using a public
7116	6232		education grant. If the district has a local revenue level [wealth
7117	6233		per student] greater than the guaranteed local revenue [wealth]
7118	6234		level but less than the [equalized wealth] level established under
7119	6235		Section 48.257, a school district is entitled under rules adopted
7120	6236		by the commissioner to additional state aid in an amount equal to
7121	6237		the difference between the cost to the district of providing
7122	6238		services to a student using a public education grant and the sum of
7123	6239		the state aid received because of the allotment under Section
7124	6240		48.107 [42.157] and money from the available school fund
7125	6241		attributable to the student.
7126	6242		(c) A school district is entitled to additional facilities
7127	6243		assistance under Section 48.301 [42.4101] if the district agrees
7128	6244		to:
7129	6245		(1) accept a number of students using public education
7130	6246		grants that is at least one percent of the district's average daily
7131	6247		attendance for the preceding school year; and
7132	6248		(2) provide services to each student until the student
7133	6249		either voluntarily decides to attend a school in a different
7134	6250		district or graduates from high school.
7135		-	SECTION 3.~~035~~. Section 29.203(g)(2), Education Code, is
	6251	+	SECTION 3.039. Section 29.203(g)(2), Education Code, is
7136	6252		amended to read as follows:
7137	6253		(2) "Guaranteed local revenue [wealth] level" means a
7138	6254		local revenue level [wealth per student] equal to the dollar amount
7139	6255		guaranteed level of state and local funds per weighted student per
7140	6256		cent of tax effort, as provided by Section 48.202 [42.302],
7141	6257		multiplied by 10,000.
7142		-	SECTION 3.~~036~~. Section 29.403(b), Education Code, is
	6258	+	SECTION 3.040. Section 29.403(b), Education Code, is
7143	6259		amended to read as follows:
7144	6260		(b) A student who is enrolled in a program under this
7145	6261		subchapter is included in determining the average daily attendance
7146	6262		under Section 48.005 [42.005] of the partnering school district.
7147		-	SECTION 3.~~037~~. Sections 29.918(a) and (b), Education Code,
	6263	+	SECTION 3.041. Sections 29.918(a) and (b), Education Code,
7148	6264		are amended to read as follows:
7149	6265		(a) Notwithstanding Section 48.104 [39.234 or 42.152], a
7150	6266		school district or open-enrollment charter school with a high
7151	6267		dropout rate, as determined by the commissioner, must submit a plan
7152	6268		to the commissioner describing the manner in which the district or
7153	6269		charter school intends to use the compensatory education allotment
7154	6270		under Section 48.104 [42.152 and the high school allotment under
7155	6271		Section 42.160] for developing and implementing research-based
7156	6272		strategies for dropout prevention. The district or charter school
7157	6273		shall submit the plan not later than December 1 of each school year
7158	6274		preceding the school year in which the district or charter school
7159	6275		will receive the compensatory education allotment [or high school
7160	6276		allotment] to which the plan applies.
7161	6277		(b) A school district or open-enrollment charter school to
7162	6278		which this section applies may not spend or obligate more than 25
7163	6279		percent of the district's or charter school's compensatory
7164	6280		education allotment [or high school allotment] unless the
7165	6281		commissioner approves the plan submitted under Subsection
7166	6282		(a). The commissioner shall complete an initial review of the
7167	6283		district's or charter school's plan not later than March 1 of the
7168	6284		school year preceding the school year in which the district or
7169	6285		charter school will receive the compensatory education allotment
7170	6286		[or high school allotment] to which the plan applies.
7171		-	SECTION 3.~~038~~. Section 30A.002(a), Education Code, is
	6287	+	SECTION 3.042. Section 30A.002(a), Education Code, is
7172	6288		amended to read as follows:
7173	6289		(a) A student is eligible to enroll in a course provided
7174	6290		through the state virtual school network only if the student:
7175	6291		(1) on September 1 of the school year:
7176	6292		(A) is younger than 21 years of age; or
7177	6293		(B) is younger than 26 years of age and entitled
7178	6294		to the benefits of the Foundation School Program under Section
7179	6295		48.003 [42.003];
7180	6296		(2) has not graduated from high school; and
7181	6297		(3) is otherwise eligible to enroll in a public school
7182	6298		in this state.
7183		-	SECTION 3.~~039~~. Section 30A.153(a), Education Code, is
	6299	+	SECTION 3.043. Section 30A.153(a), Education Code, is
7184	6300		amended to read as follows:
7185	6301		(a) Subject to the limitation imposed under Subsection
7186	6302		(a-1), a school district or open-enrollment charter school in which
7187	6303		a student is enrolled is entitled to funding under Chapter 48 [42]
7188	6304		or in accordance with the terms of a charter granted under Section
7189	6305		12.101 for the student's enrollment in an electronic course offered
7190	6306		through the state virtual school network in the same manner that the
7191	6307		district or school is entitled to funding for the student's
7192	6308		enrollment in courses provided in a traditional classroom setting,
7193	6309		provided that the student successfully completes the electronic
7194	6310		course.
7195		-	SECTION 3.~~040~~. Section 34.002(c), Education Code, is
	6311	+	SECTION 3.044. Section 34.002(c), Education Code, is
7196	6312		amended to read as follows:
7197	6313		(c) A school district that fails or refuses to meet the
7198	6314		safety standards for school buses established under this section is
7199	6315		ineligible to share in the transportation allotment under Section
7200	6316		48.151 [42.155] until the first anniversary of the date the
7201	6317		district begins complying with the safety standards.
7202		-	SECTION 3.~~041~~. Section 37.0061, Education Code, is amended
	6318	+	SECTION 3.045. Section 37.0061, Education Code, is amended
7203	6319		to read as follows:
7204	6320		Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
7205	6321		JUVENILE RESIDENTIAL FACILITIES. A school district that provides
7206	6322		education services to pre-adjudicated and post-adjudicated
7207	6323		students who are confined by court order in a juvenile residential
7208	6324		facility operated by a juvenile board is entitled to count such
7209	6325		students in the district's average daily attendance for purposes of
7210	6326		receipt of state funds under the Foundation School Program. If the
7211	6327		district has a local revenue level [wealth per student] greater
7212	6328		than the guaranteed local revenue [wealth] level but less than the
7213	6329		[equalized wealth] level established under Section 48.257, the
7214	6330		district in which the student is enrolled on the date a court orders
7215	6331		the student to be confined to a juvenile residential facility shall
7216	6332		transfer to the district providing education services an amount
7217	6333		equal to the difference between the average Foundation School
7218	6334		Program costs per student of the district providing education
7219	6335		services and the sum of the state aid and the money from the
7220	6336		available school fund received by the district that is attributable
7221	6337		to the student for the portion of the school year for which the
7222	6338		district provides education services to the student.
7223		-	SECTION 3.~~042~~. Section 37.011(h), Education Code, is
	6339	+	SECTION 3.046. Section 37.011(h), Education Code, is
7224	6340		amended to read as follows:
7225	6341		(h) Academically, the mission of juvenile justice
7226	6342		alternative education programs shall be to enable students to
7227	6343		perform at grade level. For purposes of accountability under
7228	6344		Chapters 39 and 39A, a student enrolled in a juvenile justice
7229	6345		alternative education program is reported as if the student were
7230	6346		enrolled at the student's assigned campus in the student's
7231	6347		regularly assigned education program, including a special
7232	6348		education program. Annually the Texas Juvenile Justice
7233	6349		Department, with the agreement of the commissioner, shall develop
7234	6350		and implement a system of accountability consistent with Chapters
7235	6351		39 and 39A, where appropriate, to assure that students make
7236	6352		progress toward grade level while attending a juvenile justice
7237	6353		alternative education program. The department shall adopt rules
7238	6354		for the distribution of funds appropriated under this section to
7239	6355		juvenile boards in counties required to establish juvenile justice
7240	6356		alternative education programs. Except as determined by the
7241	6357		commissioner, a student served by a juvenile justice alternative
7242	6358		education program on the basis of an expulsion required under
7243	6359		Section 37.007(a), (d), or (e) is not eligible for Foundation
7244	6360		School Program funding under Chapter [42 or] 31 or 48 if the
7245	6361		juvenile justice alternative education program receives funding
7246	6362		from the department under this subchapter.
7247		-	SECTION 3.~~043~~. Section 39.0233(a), Education Code, is
	6363	+	SECTION 3.047. Section 39.0233(a), Education Code, is
7248	6364		amended to read as follows:
7249	6365		(a) The agency, in coordination with the Texas Higher
7250	6366		Education Coordinating Board, shall adopt a series of questions to
7251	6367		be included in an end-of-course assessment instrument administered
7252	6368		under Section 39.023(c) to be used for purposes of Subchapter F-1,
7253	6369		Chapter 51. The questions adopted under this subsection must be
7254	6370		developed in a manner consistent with any college readiness
7255	6371		standards adopted under [Section 39.233 and] Subchapter F-1,
7256	6372		Chapter 51.
7257		-	SECTION 3.~~044~~. Section 39.027(f), Education Code, is
	6373	+	SECTION 3.048. Section 39.027(f), Education Code, is
7258	6374		amended to read as follows:
7259	6375		(f) In this section, "average daily attendance" is computed
7260	6376		in the manner provided by Section 48.005 [42.005].
7261		-	SECTION 3.~~045~~. Section 39.408, Education Code, is amended
	6377	+	SECTION 3.049. Section 39.408, Education Code, is amended
7262	6378		to read as follows:
7263	6379		Sec. 39.408. ELIGIBILITY CRITERIA FOR CERTAIN GRANT
7264	6380		PROGRAMS. A school district or campus is eligible to participate in
7265	6381		programs under Sections 21.4541, 29.095, and 29.096[, 29.097, and
7266	6382		29.098] if the district or campus exhibited during each of the three
7267	6383		preceding school years characteristics that strongly correlate
7268	6384		with high dropout rates.
7269		-	SECTION 3.~~046~~. Section 39.413, Education Code, is amended
	6385	+	SECTION 3.050. Section 39.413, Education Code, is amended
7270	6386		to read as follows:
7271	6387		Sec. 39.413. FUNDING FOR CERTAIN PROGRAMS. (a) From funds
7272	6388		appropriated, the Texas Higher Education Coordinating Board shall
7273	6389		allocate $8.75 million each year to establish mathematics, science,
7274	6390		and technology teacher preparation academies under Section
7275	6391		61.0766[, provide funding to the commissioner of education to
7276	6392		implement and administer the program under Section 29.098,] and
7277	6393		award grants under Section 61.0762(a)(3).
7278	6394		(b) The Texas Higher Education Coordinating Board shall
7279	6395		establish mathematics, science, and technology teacher preparation
7280	6396		academies under Section 61.0766[, provide funding to the
7281	6397		commissioner of education to implement and administer the program
7282	6398		under Section 29.098,] and award grants under Section 61.0762(a)(3)
7283	6399		in a manner consistent with the goals of this subchapter and the
7284	6400		goals in "Closing the Gaps," the state's master plan for higher
7285	6401		education.
7286		-	SECTION 3.~~047~~. Section 39A.903, Education Code, is amended
	6402	+	SECTION 3.051. Section 39A.903, Education Code, is amended
7287	6403		to read as follows:
7288	6404		Sec. 39A.903. COSTS PAID BY SCHOOL DISTRICT. The costs of
7289	6405		providing a monitor, conservator, management team, campus
7290	6406		intervention team, technical assistance team, managing entity, or
7291	6407		service provider under this chapter shall be paid by the school
7292	6408		district. If the district fails or refuses to pay the costs in a
7293	6409		timely manner, the commissioner may:
7294	6410		(1) pay the costs using amounts withheld from any
7295	6411		funds to which the district is otherwise entitled; or
7296	6412		(2) recover the amount of the costs in the manner
7297	6413		provided for recovery of an overallocation of state funds under
7298	6414		Section 48.272 [42.258].
7299		-	SECTION 3.~~048~~. Section 43.002(b), Education Code, is
	6415	+	SECTION 3.052. Section 43.002(b), Education Code, is
7300	6416		amended to read as follows:
7301	6417		(b) Of the amounts available for transfer from the general
7302	6418		revenue fund to the available school fund for the months of January
7303	6419		and February of each fiscal year, no more than the amount necessary
7304	6420		to enable the comptroller to distribute from the available school
7305	6421		fund an amount equal to 9-1/2 percent of the estimated annual
7306	6422		available school fund apportionment to category 1 school districts,
7307	6423		as defined by Section 48.273 [42.259], and 3-1/2 percent of the
7308	6424		estimated annual available school fund apportionment to category 2
7309	6425		school districts, as defined by Section 48.273 [42.259], may be
7310	6426		transferred from the general revenue fund to the available school
7311	6427		fund. Any remaining amount that would otherwise be available for
7312	6428		transfer for the months of January and February shall be
7313	6429		transferred from the general revenue fund to the available school
7314	6430		fund in equal amounts in June and in August of the same fiscal year.
7315		-	SECTION 3.~~049~~. Section 44.0011, Education Code, is amended
	6431	+	SECTION 3.053. Section 44.0011, Education Code, is amended
7316	6432		to read as follows:
7317	6433		Sec. 44.0011. FISCAL YEAR. The fiscal year of a school
7318	6434		district begins on July 1 or September 1 of each year, as determined
7319	6435		by the board of trustees of the district. The commissioner may adopt
7320	6436		rules concerning the submission of information by a district under
7321	6437		Chapter 39, 39A, or 48 [42] based on the fiscal year of the
7322	6438		district.
7323		-	SECTION 3.~~050~~. Section 44.051, Education Code, is amended
	6439	+	SECTION 3.054. Section 44.051, Education Code, is amended
7324	6440		to read as follows:
7325	6441		Sec. 44.051. INTERFERENCE WITH OPERATION OF FOUNDATION
7326	6442		SCHOOL PROGRAM. An offense under Section 37.10, Penal Code, is a
7327	6443		felony of the third degree if it is shown on trial of the offense
7328	6444		that the governmental record was a record, form, report, or budget
7329	6445		required under Chapter 48 [42] or rules adopted under that chapter.
7330	6446		If the actor's intent is to defraud the state or the public school
7331	6447		system, the offense is a felony of the second degree.
7332		-	SECTION 3.~~051~~. Section 45.0011(e), Education Code, is
	6448	+	SECTION 3.055. Section 45.0011(e), Education Code, is
7333	6449		amended to read as follows:
7334	6450		(e) In this section, average daily attendance is determined
7335	6451		in the manner provided by Section 48.005 [42.005].
7336		-	SECTION 3.~~052~~. Sections 45.0031(b) and (c), Education Code,
	6452	+	SECTION 3.056. Sections 45.0031(b) and (c), Education Code,
7337	6453		are amended to read as follows:
7338	6454		(b) A district may demonstrate the ability to comply with
7339	6455		Subsection (a) by using the most recent taxable value of property in
7340	6456		the district, combined with state assistance to which the district
7341	6457		is entitled under Chapter [42 or] 46 or 48 that may be lawfully used
7342	6458		for the payment of bonds.
7343	6459		(c) A district may demonstrate the ability to comply with
7344	6460		Subsection (a) by using a projected future taxable value of
7345	6461		property in the district anticipated for the earlier of the tax year
7346	6462		five years after the current tax year or the tax year in which the
7347	6463		final payment is due for the bonds submitted to the attorney
7348	6464		general, combined with state assistance to which the district is
7349	6465		entitled under Chapter [42 or] 46 or 48 that may be lawfully used
7350	6466		for the payment of bonds. The district must submit to the attorney
7351	6467		general a certification of the district's projected taxable value
7352	6468		of property that is prepared by a registered professional appraiser
7353	6469		certified under Chapter 1151, Occupations Code, who has
7354	6470		demonstrated professional experience in projecting taxable values
7355	6471		of property or who can by contract obtain any necessary assistance
7356	6472		from a person who has that experience. To demonstrate the
7357	6473		professional experience required by this subsection, a registered
7358	6474		professional appraiser must provide to the district written
7359	6475		documentation relating to two previous projects for which the
7360	6476		appraiser projected taxable values of property. Until the bonds
7361	6477		submitted to the attorney general are approved or disapproved, the
7362	6478		district must maintain the documentation and on request provide the
7363	6479		documentation to the attorney general or comptroller. The
7364	6480		certification of the district's projected taxable value of property
7365	6481		must be signed by the district's superintendent. The attorney
7366	6482		general must base a determination of whether the district has
7367	6483		complied with Subsection (a) on a taxable value of property that is
7368	6484		equal to 90 percent of the value certified under this subsection.
7369		-	SECTION 3.053. Effective January 1, 2020, Section
7370		-	45.105(e), Education Code, is amended to read as follows:
7371		-	(e) The governing body of an independent school district
7372		-	that governs a junior college district under Subchapter B, Chapter
7373		-	130, in a county with a population of more than two million may
7374		-	dedicate a specific percentage of the local tax levy to the use of
7375		-	the junior college district for facilities and equipment or for the
7376		-	maintenance and operating expenses of the junior college district.
7377		-	To be effective, the dedication must be made by the governing body
7378		-	on or before the date on which the governing body adopts its tax
7379		-	rate for a year. The amount of local tax funds derived from the
7380		-	percentage of the local tax levy dedicated to a junior college
7381		-	district from a tax levy may not exceed the amount that would be
7382		-	levied by five percent of the no-new-revenue [effective] tax rate
7383		-	for the tax year calculated as provided by Section 26.04, Tax Code,
7384		-	on all property taxable by the school district. All real property
7385		-	purchased with these funds is the property of the school district,
7386		-	but is subject to the exclusive control of the governing body of the
7387		-	junior college district for as long as the junior college district
7388		-	uses the property for educational purposes.
7389		-	SECTION 3.054. Section 45.251(2), Education Code, is
	6485	+	SECTION 3.057. Section 45.251(2), Education Code, is
7390	6486		amended to read as follows:
7391	6487		(2) "Foundation School Program" means the program
7392	6488		established under Chapters [41, 42, and] 46, 48, and 49, or any
7393	6489		successor program of state appropriated funding for school
7394	6490		districts in this state.
7395		-	SECTION 3.~~055~~. Section 45.259(d), Education Code, is
	6491	+	SECTION 3.058. Section 45.259(d), Education Code, is
7396	6492		amended to read as follows:
7397	6493		(d) If money appropriated for the Foundation School Program
7398	6494		is used for purposes of this subchapter and as a result there is
7399	6495		insufficient money to fully fund the Foundation School Program, the
7400	6496		commissioner shall, to the extent necessary, reduce each school
7401	6497		district's foundation school fund allocations, other than any
7402	6498		portion appropriated from the available school fund, in the same
7403	6499		manner provided by Section 48.266(f) [42.253(h)] for a case in
7404	6500		which school district entitlements exceed the amount
7405	6501		appropriated. The following fiscal year, a district's entitlement
7406	6502		under Section 48.266 [42.253] is increased by an amount equal to the
7407	6503		reduction under this subsection.
7408		-	SECTION 3.~~056~~. Section 45.261(a), Education Code, is
	6504	+	SECTION 3.059. Section 45.261(a), Education Code, is
7409	6505		amended to read as follows:
7410	6506		(a) If the commissioner orders payment from the money
7411	6507		appropriated to the Foundation School Program on behalf of a school
7412	6508		district that is not required to reduce its local revenue level
7413	6509		[wealth per student] under Section 48.257 [Chapter 41], the
7414	6510		commissioner shall direct the comptroller to withhold the amount
7415	6511		paid from the first state money payable to the district. If the
7416	6512		commissioner orders payment from the money appropriated to the
7417	6513		Foundation School Program on behalf of a school district that is
7418	6514		required to reduce its local revenue level [wealth per student]
7419	6515		under Section 48.257 [Chapter 41], the commissioner shall increase
7420	6516		amounts due from the district under Chapter 49 [that chapter] in a
7421	6517		total amount equal to the amount of payments made on behalf of the
7422	6518		district under this subchapter. Amounts withheld or received
7423	6519		under this subsection shall be used for the Foundation School
7424	6520		Program.
7425		-	SECTION 3.057. Effective January 1, 2020, Section
7426		-	45.261(e), Education Code, is amended to read as follows:
7427		-	(e) Any part of a school district's tax rate attributable to
7428		-	producing revenue for purposes of Subsection (c)(1) is considered
7429		-	part of the district's:
7430		-	(1) current debt rate for purposes of computing a
7431		-	voter-approval [rollback] tax rate under Section 26.08, Tax Code;
7432		-	and
7433		-	(2) interest and sinking fund tax rate.
7434		-	SECTION 3.058. Section 45.263(b), Education Code, is
	6521	+	SECTION 3.060. Section 45.263(b), Education Code, is
7435	6522		amended to read as follows:
7436	6523		(b) In adopting rules under Subsection (a), the
7437	6524		commissioner shall establish an annual deadline by which a school
7438	6525		district must pay the debt service on bonds for which credit
7439	6526		enhancement is provided under this subchapter. The deadline
7440	6527		established may not be later than the 10th day before the date
7441	6528		specified under Section 48.273 [42.259] for payment to school
7442	6529		districts of the final Foundation School Program installment for a
7443	6530		state fiscal year.
7444		-	SECTION 3.~~059~~. Section 46.003(a), Education Code, is
	6531	+	SECTION 3.061. Section 46.003(a), Education Code, is
7445	6532		amended to read as follows:
7446	6533		(a) For each year, except as provided by Sections 46.005 and
7447	6534		46.006, a school district is guaranteed a specified amount per
7448	6535		student in state and local funds for each cent of tax effort, up to
7449	6536		the maximum rate under Subsection (b), to pay the principal of and
7450	6537		interest on eligible bonds issued to construct, acquire, renovate,
7451	6538		or improve an instructional facility. The amount of state support
7452	6539		is determined by the formula:
7453	6540		FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
7454	6541		where:
7455	6542		"FYA" is the guaranteed facilities yield amount of state
7456	6543		funds allocated to the district for the year;
7457	6544		"FYL" is the dollar amount guaranteed level of state and
7458	6545		local funds per student per cent of tax effort, which is $35 or a
7459	6546		greater amount for any year provided by appropriation;
7460	6547		"ADA" is the greater of the number of students in average
7461	6548		daily attendance, as determined under Section 48.005 [42.005], in
7462	6549		the district or 400;
7463	6550		"BTR" is the district's bond tax rate for the current year,
7464	6551		which is determined by dividing the amount budgeted by the district
7465	6552		for payment of eligible bonds by the quotient of the district's
7466	6553		taxable value of property as determined under Subchapter M, Chapter
7467	6554		403, Government Code, or, if applicable, Section 48.258 [42.2521],
7468	6555		divided by 100; and
7469	6556		"DPV" is the district's taxable value of property as
7470	6557		determined under Subchapter M, Chapter 403, Government Code, or, if
7471	6558		applicable, Section 48.258 [42.2521].
7472		-	SECTION 3.~~060~~. Section 46.006(g), Education Code, is
	6559	+	SECTION 3.062. Section 46.006(g), Education Code, is
7473	6560		amended to read as follows:
7474	6561		(g) In this section, "wealth per student" means a school
7475	6562		district's taxable value of property as determined under Subchapter
7476	6563		M, Chapter 403, Government Code, or, if applicable, Section 48.258
7477	6564		[42.2521], divided by the district's average daily attendance as
7478	6565		determined under Section 48.005 [42.005].
7479		-	SECTION 3.~~061~~. Sections 46.009(b), (c), (e), and (f),
	6566	+	SECTION 3.063. Sections 46.009(b), (c), (e), and (f),
7480	6567		Education Code, are amended to read as follows:
7481	6568		(b) If the amount appropriated for purposes of this
7482	6569		subchapter for a year is less than the total amount determined under
7483	6570		Subsection (a) for that year, the commissioner shall:
7484	6571		(1) transfer from the Foundation School Program to the
7485	6572		instructional facilities program the amount by which the total
7486	6573		amount determined under Subsection (a) exceeds the amount
7487	6574		appropriated; and
7488	6575		(2) reduce each district's foundation school fund
7489	6576		allocations in the manner provided by Section 48.266(f)
7490	6577		[42.253(h)].
7491	6578		(c) Warrants for payments under this subchapter shall be
7492	6579		approved and transmitted to school district treasurers or
7493	6580		depositories in the same manner as warrants for payments under
7494	6581		Chapter 48 [42].
7495	6582		(e) Section 48.272 [42.258] applies to payments under this
7496	6583		subchapter.
7497	6584		(f) If a school district would have received a greater
7498	6585		amount under this subchapter for the applicable school year using
7499	6586		the adjusted value determined under Section 48.271 [42.257], the
7500	6587		commissioner shall add the difference between the adjusted value
7501	6588		and the amount the district received under this subchapter to
7502	6589		subsequent distributions to the district under this subchapter.
7503		-	SECTION 3.~~062~~. Section 46.0111(e), Education Code, is
	6590	+	SECTION 3.064. Section 46.0111(e), Education Code, is
7504	6591		amended to read as follows:
7505	6592		(e) The state's share is state property. The school
7506	6593		district shall send to the comptroller any portion of the state's
7507	6594		share not used by the school district to repair the defective
7508	6595		design, construction, renovation, or improvement of the
7509	6596		instructional facility on which the action is brought or to replace
7510	6597		the facility. Section 48.272 [42.258] applies to the state's share
7511	6598		under this subsection.
7512		-	SECTION 3.~~063~~. Section 46.013, Education Code, is amended
	6599	+	SECTION 3.065. Section 46.013, Education Code, is amended
7513	6600		to read as follows:
7514	6601		Sec. 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school
7515	6602		district is not entitled to state assistance under this subchapter
7516	6603		based on taxes with respect to which the district receives state
7517	6604		assistance under Subchapter E [F], Chapter 48 [42].
7518		-	SECTION 3.~~064~~. Section 46.032(a), Education Code, is
	6605	+	SECTION 3.066. Section 46.032(a), Education Code, is
7519	6606		amended to read as follows:
7520	6607		(a) Each school district is guaranteed a specified amount
7521	6608		per student in state and local funds for each cent of tax effort to
7522	6609		pay the principal of and interest on eligible bonds. The amount of
7523	6610		state support, subject only to the maximum amount under Section
7524	6611		46.034, is determined by the formula:
7525	6612		EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
7526	6613		where:
7527	6614		"EDA" is the amount of state funds to be allocated to the
7528	6615		district for assistance with existing debt;
7529	6616		"EDGL" is the dollar amount guaranteed level of state and
7530	6617		local funds per student per cent of tax effort, which is the lesser
7531	6618		of:
7532	6619		(1) $40 or a greater amount for any year provided by
7533	6620		appropriation; or
7534	6621		(2) the amount that would result in a total additional
7535	6622		amount of state funds under this subchapter for the current year
7536	6623		equal to $60 million in excess of the state funds to which school
7537	6624		districts would have been entitled under this section if the
7538	6625		guaranteed level amount were $35;
7539	6626		"ADA" is the number of students in average daily attendance,
7540	6627		as determined under Section 48.005 [42.005], in the district;
7541	6628		"EDTR" is the existing debt tax rate of the district, which is
7542	6629		determined by dividing the amount budgeted by the district for
7543	6630		payment of eligible bonds by the quotient of the district's taxable
7544	6631		value of property as determined under Subchapter M, Chapter 403,
7545	6632		Government Code, or, if applicable, under Section 48.258 [42.2521],
7546	6633		divided by 100; and
7547	6634		"DPV" is the district's taxable value of property as
7548	6635		determined under Subchapter M, Chapter 403, Government Code, or, if
7549	6636		applicable, under Section 48.258 [42.2521].
7550		-	SECTION 3.~~065~~. Section 46.037, Education Code, is amended
	6637	+	SECTION 3.067. Section 46.037, Education Code, is amended
7551	6638		to read as follows:
7552	6639		Sec. 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school
7553	6640		district is not entitled to state assistance under this subchapter
7554	6641		based on taxes with respect to which the district receives state
7555	6642		assistance under Subchapter E [F], Chapter 48 [42].
7556		-	SECTION 3.~~066~~. Section 61.0766(e), Education Code, is
	6643	+	SECTION 3.068. Section 61.0766(e), Education Code, is
7557	6644		amended to read as follows:
7558	6645		(e) An academy program may:
7559	6646		(1) provide financial assistance for the purpose of
7560	6647		allowing participants to complete the program [and obtain a master
7561	6648		teacher certificate under Section 21.0482, 21.0483, or 21.0484];
7562	6649		(2) include programs in leadership skills to develop
7563	6650		training, mentoring, and coaching skills;
7564	6651		(3) deliver coursework electronically for some or all
7565	6652		of the program; and
7566	6653		(4) provide for ongoing professional development and
7567	6654		coordination with specific public school instructional programs.
7568		-	SECTION 3.~~067~~. Section 79.10(f), Education Code, is amended
	6655	+	SECTION 3.069. Section 79.10(f), Education Code, is amended
7569	6656		to read as follows:
7570	6657		(f) For each student enrolled in the academy, the academy is
7571	6658		entitled to allotments from the foundation school fund under
7572	6659		Chapter 48 [42] as if the academy were a school district without a
7573	6660		tier one local share for purposes of Section 48.266 [42.253]. If
7574	6661		in any academic year the amount of the allotments under this
7575	6662		subsection exceeds the amount of state funds paid to the academy in
7576	6663		the first fiscal year of the academy's operation, the commissioner
7577	6664		of education shall set aside from the total amount of funds to which
7578	6665		school districts are entitled under Section 48.266(c) [42.253(c)]
7579	6666		an amount equal to the excess amount and shall distribute that
7580	6667		amount to the academy. After deducting the amount set aside and
7581	6668		paid to the academy by the commissioner of education under this
7582	6669		subsection, the commissioner of education shall reduce the amount
7583	6670		to which each district is entitled under Section 48.266(c)
7584	6671		[42.253(c)] in the manner described by Section 48.266(f)
7585	6672		[42.253(h)]. A determination of the commissioner of education
7586	6673		under this subsection is final and may not be appealed.
7587		-	SECTION 3.~~068~~. Section 87.208, Education Code, is amended
	6674	+	SECTION 3.070. Section 87.208, Education Code, is amended
7588	6675		to read as follows:
7589	6676		Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
7590	6677		regents of The Texas A&M University System administers a program
7591	6678		that is substantially similar to the Seaborne Conservation Corps as
7592	6679		it was administered by the board during the 1998-1999 school year,
7593	6680		the program is entitled, for each student enrolled, to allotments
7594	6681		from the Foundation School Program under Chapter 48 [42] as if the
7595	6682		program were a school district, except that the program has a local
7596	6683		share applied that is equivalent to the local fund assignment of the
7597	6684		school district in which the principal facilities of the program
7598	6685		are located.
7599		-	SECTION 3.~~069~~. Section 87.505(g), Education Code, is
	6686	+	SECTION 3.071. Section 87.505(g), Education Code, is
7600	6687		amended to read as follows:
7601	6688		(g) For each student enrolled in the academy, the academy is
7602	6689		entitled to allotments from the foundation school fund under
7603	6690		Chapter 48 [42] as if the academy were a school district without a
7604	6691		tier one local share for purposes of Section 48.266 [42.253]. If
7605	6692		in any academic year the amount of the allotments under this
7606	6693		subsection exceeds the amount of state funds paid to the academy in
7607	6694		the first fiscal year of the academy's operation, the commissioner
7608	6695		of education shall set aside from the total amount of funds to which
7609	6696		school districts are entitled under Section 48.266(c) [42.253(c)]
7610	6697		an amount equal to the excess amount and shall distribute that
7611	6698		amount to the academy. After deducting the amount set aside and
7612	6699		paid to the academy by the commissioner of education under this
7613	6700		subsection, the commissioner of education shall reduce the amount
7614	6701		to which each district is entitled under Section 48.266(c)
7615	6702		[42.253(c)] in the manner described by Section 48.266(f)
7616	6703		[42.253(h)]. A determination of the commissioner of education
7617	6704		under this subsection is final and may not be appealed.
7618		-	SECTION 3.~~070~~. Section 96.707(k), Education Code, is
	6705	+	SECTION 3.072. Section 96.707(k), Education Code, is
7619	6706		amended to read as follows:
7620	6707		(k) For each student enrolled in the academy, the academy is
7621	6708		entitled to allotments from the Foundation School Program under
7622	6709		Chapter 48 [42] as if the academy were a school district without a
7623	6710		tier one local share for purposes of Section 48.266 [42.253].
7624		-	SECTION 3.~~071~~. Sections 105.301(e) and (f), Education Code,
	6711	+	SECTION 3.073. Sections 105.301(e) and (f), Education Code,
7625	6712		are amended to read as follows:
7626	6713		(e) The academy is not subject to the provisions of this
7627	6714		code, or to the rules of the Texas Education Agency, regulating
7628	6715		public schools, except that:
7629	6716		(1) professional employees of the academy are entitled
7630	6717		to the limited liability of an employee under Section 22.0511,
7631	6718		22.0512, or 22.052;
7632	6719		(2) a student's attendance at the academy satisfies
7633	6720		compulsory school attendance requirements; and
7634	6721		(3) for each student enrolled, the academy is entitled
7635	6722		to allotments from the foundation school program under Chapter 48
7636	6723		[42] as if the academy were a school district without a tier one
7637	6724		local share for purposes of Section 48.266 [42.253].
7638	6725		(f) If in any academic year the amount of the allotments
7639	6726		under Subsection (e)(3) exceeds the amount of state funds paid to
7640	6727		the academy under this section in the fiscal year ending August 31,
7641	6728		2003, the commissioner shall set aside from the total amount of
7642	6729		funds to which school districts are entitled under Section
7643	6730		48.266(c) [42.253(c)] an amount equal to the excess amount and
7644	6731		shall distribute that amount to the academy. After deducting the
7645	6732		amount set aside and paid to the academy by the commissioner under
7646	6733		this subsection, the commissioner shall reduce the amount to which
7647	6734		each district is entitled under Section 48.266(c) [42.253(c)] in
7648	6735		the manner described by Section 48.266(f) [42.253(h)]. A
7649	6736		determination of the commissioner under this section is final and
7650	6737		may not be appealed.
7651		-	SECTION 3.~~072~~. Section 317.005(f), Government Code, is
	6738	+	SECTION 3.074. Section 317.005(f), Government Code, is
7652	6739		amended to read as follows:
7653	6740		(f) The governor or board may adopt an order under this
7654	6741		section withholding or transferring any portion of the total amount
7655	6742		appropriated to finance the foundation school program for a fiscal
7656	6743		year. The governor or board may not adopt such an order if it would
7657	6744		result in an allocation of money between particular programs or
7658	6745		statutory allotments under the foundation school program contrary
7659	6746		to the statutory proration formula provided by Section 48.266(f)
7660	6747		[42.253(h)], Education Code. The governor or board may transfer an
7661	6748		amount to the total amount appropriated to finance the foundation
7662	6749		school program for a fiscal year and may increase the basic
7663	6750		allotment. The governor or board may adjust allocations of amounts
7664	6751		between particular programs or statutory allotments under the
7665	6752		foundation school program only for the purpose of conforming the
7666	6753		allocations to actual pupil enrollments or attendance.
7667		-	SECTION 3.~~073~~. Section 403.093(d), Government Code, as
	6754	+	SECTION 3.075. Section 403.093(d), Government Code, as
7668	6755		amended by Chapters 581 (S.B. 810) and 705 (H.B. 3526), Acts of the
7669		-	85th Legislature, Regular Session, 2017, is reenacted ~~and amended~~
7670		-	~~to read as~~ follows:
	6756	+	85th Legislature, Regular Session, 2017, is reenacted to read as
	6757	+	follows:
7671	6758		(d) The comptroller shall transfer from the general revenue
7672	6759		fund to the foundation school fund an amount of money necessary to
7673	6760		fund the foundation school program as provided by Chapter 48 [42],
7674	6761		Education Code. The comptroller shall make the transfers in
7675	6762		installments as necessary to comply with Section 48.273 [42.259],
7676	6763		Education Code, and permit the Texas Education Agency, to the
7677	6764		extent authorized by the General Appropriations Act, to make
7678	6765		temporary transfers from the foundation school fund for payment of
7679	6766		the instructional materials and technology allotment under Section
7680	6767		31.0211, Education Code. Unless an earlier date is necessary for
7681	6768		purposes of temporary transfers for payment of the instructional
7682	6769		materials and technology allotment, an installment must be made not
7683	6770		earlier than two days before the date an installment to school
7684	6771		districts is required by Section 48.273 [42.259], Education Code,
7685	6772		and must not exceed the amount necessary for that payment and any
7686	6773		temporary transfers for payment of the instructional materials and
7687	6774		technology allotment.
7688		-	SECTION 3.~~074~~. Section 403.302(a), Government Code, is
	6775	+	SECTION 3.076. Section 403.302(a), Government Code, is
7689	6776		amended to read as follows:
7690	6777		(a) The comptroller shall conduct a study using comparable
7691	6778		sales and generally accepted auditing and sampling techniques to
7692	6779		determine the total taxable value of all property in each school
7693	6780		district. The study shall determine the taxable value of all
7694	6781		property and of each category of property in the district and the
7695	6782		productivity value of all land that qualifies for appraisal on the
7696	6783		basis of its productive capacity and for which the owner has applied
7697	6784		for and received a productivity appraisal. The comptroller shall
7698	6785		make appropriate adjustments in the study to account for actions
7699	6786		taken under Chapter 49 [41], Education Code.
7700		-	SECTION 3.~~075~~. Section 403.303(b), Government Code, is
	6787	+	SECTION 3.077. Section 403.303(b), Government Code, is
7701	6788		amended to read as follows:
7702	6789		(b) After receipt of a petition, the comptroller shall hold
7703	6790		a hearing. The comptroller has the burden to prove the accuracy of
7704	6791		the findings. Until a final decision is made by the comptroller,
7705	6792		the taxable value of property in the district is determined, with
7706	6793		respect to property subject to the protest, according to the value
7707	6794		claimed by the school district or property owner, except that the
7708	6795		value to be used while a final decision is pending may not be less
7709	6796		than the appraisal roll value for the year of the study. If after a
7710	6797		hearing the comptroller concludes that the findings should be
7711	6798		changed, the comptroller shall order the appropriate changes and
7712	6799		shall certify to the commissioner of education the changes in the
7713	6800		values of the school district that brought the protest, the values
7714	6801		of the school district named by the property owner who brought the
7715	6802		protest, or, if the comptroller by rule allows an appraisal
7716	6803		district to bring a protest, the values of the school district named
7717	6804		by the appraisal district that brought the protest. The
7718	6805		comptroller may not order a change in the values of a school
7719	6806		district as a result of a protest brought by another school
7720	6807		district, a property owner in the other school district, or an
7721	6808		appraisal district that appraises property for the other school
7722	6809		district. The comptroller shall complete all protest hearings and
7723	6810		certify all changes as necessary to comply with Chapter 48 [42],
7724	6811		Education Code. A hearing conducted under this subsection is not a
7725	6812		contested case for purposes of Section 2001.003.
7726		-	SECTION 3.~~076~~. Section 404.121(1), Government Code, is
	6813	+	SECTION 3.078. Section 404.121(1), Government Code, is
7727	6814		amended to read as follows:
7728	6815		(1) "Cash flow deficit" for any period means the
7729	6816		excess, if any, of expenditures paid and transfers made from the
7730	6817		general revenue fund in the period, including payments provided by
7731	6818		Section 48.273 [42.259], Education Code, over taxes and other
7732	6819		revenues deposited to the fund in the period, other than revenues
7733	6820		deposited pursuant to Section 403.092, that are legally available
7734	6821		for the expenditures and transfers.
7735		-	SECTION 3.~~077~~. Section 437.117(a), Government Code, is
	6822	+	SECTION 3.079. Section 437.117(a), Government Code, is
7736	6823		amended to read as follows:
7737	6824		(a) For each student enrolled in the Texas ChalleNGe
7738	6825		Academy, the department is entitled to allotments from the
7739	6826		Foundation School Program under Chapter 48 [42], Education Code, as
7740	6827		if the academy were a school district without a tier one local share
7741	6828		for purposes of Section 48.266 [42.253], Education Code.
7742		-	SECTION 3.~~078~~. Section 466.355(c), Government Code, as
	6829	+	SECTION 3.080. Section 466.355(c), Government Code, as
7743	6830		repealed by Chapter 431 (S.B. 559), Acts of the 83rd Legislature,
7744	6831		Regular Session, 2013, and amended by Chapter 1410 (S.B. 758), Acts
7745	6832		of the 83rd Legislature, Regular Session, 2013, is reenacted and
7746	6833		amended to read as follows:
7747	6834		(c) Each August the comptroller shall:
7748	6835		(1) estimate the amount to be transferred to the
7749	6836		foundation school fund on or before September 15; and
7750	6837		(2) notwithstanding Subsection (b)(4), transfer the
7751	6838		amount estimated in Subdivision (1) to the foundation school fund
7752	6839		before August installment payments are made under Section 48.273
7753	6840		[42.259], Education Code.
7754		-	SECTION 3.079. Section 822.201(b), Government Code, is
7755		-	amended to read as follows:
7756		-	(b) "Salary and wages" as used in Subsection (a) means:
7757		-	(1) normal periodic payments of money for service the
7758		-	right to which accrues on a regular basis in proportion to the
7759		-	service performed;
7760		-	(2) amounts by which the member's salary is reduced
7761		-	under a salary reduction agreement authorized by Chapter 610;
7762		-	(3) amounts that would otherwise qualify as salary and
7763		-	wages under Subdivision (1) but are not received directly by the
7764		-	member pursuant to a good faith, voluntary written salary reduction
7765		-	agreement in order to finance payments to a deferred compensation
7766		-	or tax sheltered annuity program specifically authorized by state
7767		-	law or to finance benefit options under a cafeteria plan qualifying
7768		-	under Section 125 of the Internal Revenue Code of 1986, if:
7769		-	(A) the program or benefit options are made
7770		-	available to all employees of the employer; and
7771		-	(B) the benefit options in the cafeteria plan are
7772		-	limited to one or more options that provide deferred compensation,
7773		-	group health and disability insurance, group term life insurance,
7774		-	dependent care assistance programs, or group legal services plans;
7775		-	(4) performance pay awarded to an employee by a school
7776		-	district as part of a total compensation plan approved by the board
7777		-	of trustees of the district and meeting the requirements of
7778		-	Subsection (e);
7779		-	(5) the benefit replacement pay a person earns under
7780		-	Subchapter H, Chapter 659, except as provided by Subsection (c);
7781		-	(6) stipends paid to teachers in accordance with
7782		-	former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
7783		-	(7) amounts by which the member's salary is reduced or
7784		-	that are deducted from the member's salary as authorized by
7785		-	Subchapter J, Chapter 659;
7786		-	(8) a merit salary increase made under Section 51.962,
7787		-	Education Code;
7788		-	(9) amounts received under the relevant parts of the
7789		-	educator excellence awards program under Subchapter O, Chapter 21,
7790		-	Education Code, or a mentoring program under Section 21.458,
7791		-	Education Code, that authorize compensation for service;
7792		-	(10) salary amounts designated as health care
7793		-	supplementation by an employee under Subchapter D, Chapter 22,
7794		-	Education Code; and
7795		-	(11) to the extent required by Sections 3401(h) and
7796		-	414(u)(12), Internal Revenue Code of 1986, differential wage
7797		-	payments received by an individual from an employer on or after
7798		-	January 1, 2009, while the individual is performing qualified
7799		-	military service as defined by Section 414(u), Internal Revenue
7800		-	Code of 1986.
7801		-	SECTION 3.080. Effective January 1, 2020, Sections
7802		-	825.405(h) and (i), Government Code, are amended to read as
7803		-	follows:
7804		-	(h) This section does not apply to state contributions for
7805		-	members employed by a school district in a school year if the
7806		-	district's no-new-revenue [effective] tax rate for maintenance and
7807		-	operation revenues for the tax year that ended in the preceding
7808		-	school year equals or exceeds 125 percent of the statewide average
7809		-	no-new-revenue [effective] tax rate for school district
7810		-	maintenance and operation revenues for that tax year. For a tax
7811		-	year, the statewide average no-new-revenue [effective] tax rate for
7812		-	school district maintenance and operation revenues is the tax rate
7813		-	that, if applied to the statewide total appraised value of taxable
7814		-	property for every school district in the state determined under
7815		-	Section 403.302, would produce an amount equal to the statewide
7816		-	total amount of maintenance and operation taxes imposed in the tax
7817		-	year for every school district in the state.
7818		-	(i) Not later than the seventh day after the final date the
7819		-	comptroller certifies to the commissioner of education changes to
7820		-	the property value study conducted under Subchapter M, Chapter 403,
7821		-	the comptroller shall certify to the Teacher Retirement System of
7822		-	Texas:
7823		-	(1) the no-new-revenue [effective] tax rate for school
7824		-	district maintenance and operation revenues for each school
7825		-	district in the state for the immediately preceding tax year; and
7826		-	(2) the statewide average no-new-revenue [effective]
7827		-	tax rate for school district maintenance and operation revenues for
7828		-	the immediately preceding tax year.
7829	6841		SECTION 3.081. Section 1371.001(4), Government Code, is
7830	6842		amended to read as follows:
7831	6843		(4) "Issuer" means:
7832	6844		(A) a home-rule municipality that:
7833	6845		(i) adopted its charter under Section 5,
7834	6846		Article XI, Texas Constitution;
7835	6847		(ii) has a population of 50,000 or more; and
7836	6848		(iii) has outstanding long-term
7837	6849		indebtedness that is rated by a nationally recognized rating agency
7838	6850		for municipal securities in one of the four highest rating
7839	6851		categories for a long-term obligation;
7840	6852		(B) a conservation and reclamation district
7841	6853		created and organized as a river authority under Section 52,
7842	6854		Article III, or Section 59, Article XVI, Texas Constitution;
7843	6855		(C) a joint powers agency organized and operating
7844	6856		under Chapter 163, Utilities Code;
7845	6857		(D) a metropolitan rapid transit authority,
7846	6858		regional transportation authority, or coordinated county
7847	6859		transportation authority created, organized, or operating under
7848	6860		Chapter 451, 452, or 460, Transportation Code;
7849	6861		(E) a conservation and reclamation district
7850	6862		organized or operating as a navigation district under Section 52,
7851	6863		Article III, or Section 59, Article XVI, Texas Constitution;
7852	6864		(F) a district organized or operating under
7853	6865		Section 59, Article XVI, Texas Constitution, that has all or part of
7854	6866		two or more municipalities within its boundaries;
7855	6867		(G) a state agency, including a state institution
7856	6868		of higher education;
7857	6869		(H) a hospital authority created or operating
7858	6870		under Chapter 262 or 264, Health and Safety Code, in a county that:
7859	6871		(i) has a population of more than 3.3
7860	6872		million; or
7861	6873		(ii) is included, in whole or in part, in a
7862	6874		standard metropolitan statistical area of this state that includes
7863	6875		a county with a population of more than 2.2 million;
7864	6876		(I) a hospital district in a county that has a
7865	6877		population of more than two million;
7866	6878		(J) a nonprofit corporation organized to
7867	6879		exercise the powers of a higher education loan authority under
7868	6880		Section 53B.47(e), Education Code;
7869	6881		(K) a county:
7870	6882		(i) that has a population of 3.3 million or
7871	6883		more; or
7872	6884		(ii) that, on the date of issuance of
7873	6885		obligations under this chapter, has authorized, outstanding, or any
7874	6886		combination of authorized and outstanding, indebtedness of at least
7875	6887		$100 million secured by and payable from the county's ad valorem
7876	6888		taxes and the authorized long-term indebtedness of which is rated
7877	6889		by a nationally recognized rating agency of securities issued by
7878	6890		local governments in one of the four highest rating categories for a
7879	6891		long-term obligation;
7880	6892		(L) an independent school district that has an
7881	6893		average daily attendance of 50,000 or more as determined under
7882	6894		Section 48.005 [42.005], Education Code;
7883	6895		(M) a municipality or county operating under
7884	6896		Chapter 334, Local Government Code;
7885	6897		(N) a district created under Chapter 335, Local
7886	6898		Government Code;
7887	6899		(O) a junior college district that has a total
7888	6900		headcount enrollment of 40,000 or more based on enrollment in the
7889	6901		most recent regular semester; or
7890	6902		(P) an issuer, as defined by Section 1201.002,
7891	6903		that has:
7892	6904		(i) a principal amount of at least $100
7893	6905		million in outstanding long-term indebtedness, in long-term
7894	6906		indebtedness proposed to be issued, or in a combination of
7895	6907		outstanding or proposed long-term indebtedness; and
7896	6908		(ii) some amount of long-term indebtedness
7897	6909		outstanding or proposed to be issued that is rated in one of the
7898	6910		four highest rating categories for long-term debt instruments by a
7899	6911		nationally recognized rating agency for municipal securities,
7900	6912		without regard to the effect of any credit agreement or other form
7901	6913		of credit enhancement entered into in connection with the
7902	6914		obligation.
7903	6915		SECTION 3.082. Section 1431.001(3), Government Code, is
7904	6916		amended to read as follows:
7905	6917		(3) "Eligible school district" means an independent
7906	6918		school district that has an average daily attendance of 190,000 or
7907	6919		more as determined under Section 48.005 [42.005], Education Code.
7908	6920		SECTION 3.083. Section 2175.304(c), Government Code, is
7909	6921		amended to read as follows:
7910	6922		(c) The procedures established under Subsection (b) must
7911	6923		give preference to transferring the property directly to a public
7912	6924		school or school district or to an assistance organization
7913	6925		designated by the school district before disposing of the property
7914	6926		in another manner. If more than one public school or school
7915	6927		district or assistance organization seeks to acquire the same
7916	6928		property on substantially the same terms, the system, institution,
7917	6929		or agency shall give preference to a public school that is
7918	6930		considered low-performing by the commissioner of education or to a
7919	6931		school district that has a taxable wealth per student that entitles
7920	6932		the district to an allotment of state funds under Subchapter E [F],
7921	6933		Chapter 48 [42], Education Code, or to the assistance organization
7922	6934		designated by such a school district.
7923	6935		SECTION 3.084. Section 221.0071(d), Human Resources Code,
7924	6936		is amended to read as follows:
7925	6937		(d) A charter school operating under a charter granted under
7926	6938		this section is entitled to receive open-enrollment charter school
7927	6939		funding under Chapter 48 [42], Education Code, in the same manner as
7928	6940		an open-enrollment charter school operating under Subchapter D,
7929	6941		Chapter 12, Education Code.
7930	6942		SECTION 3.085. Section 1579.251(a), Insurance Code, is
7931	6943		amended to read as follows:
7932	6944		(a) The state shall assist employees of participating
7933	6945		school districts and charter schools in the purchase of group
7934	6946		health coverage under this chapter by providing for each covered
7935	6947		employee the amount of $900 each state fiscal year or a greater
7936	6948		amount as provided by the General Appropriations Act. The state
7937	6949		contribution shall be distributed through the school finance
7938	6950		formulas under Chapters 48 [41] and 49 [42], Education Code, and
7939	6951		used by school districts and charter schools as provided by
7940	6952		Section 48.275 [42.260], Education Code.
7941	6953		SECTION 3.086. Section 1581.053, Insurance Code, is amended
7942	6954		to read as follows:
7943	6955		Sec. 1581.053. USE OF STATE FUNDS. (a) To comply with
7944	6956		Section 1581.052, a school district or participating charter school
7945	6957		may use state funds received under Chapter 48 [42], Education Code,
7946	6958		other than funds that may be used under that chapter only for a
7947	6959		specific purpose.
7948	6960		(b) Notwithstanding Subsection (a), amounts a district or
7949	6961		school is required to use to pay contributions under a group health
7950	6962		coverage plan for district or school employees under Section
7951	6963		48.275 [42.260], Education Code, other than amounts described by
7952	6964		Section 48.275(c)(2) [42.260(c)(2)(B)], are not used in computing
7953	6965		whether the district or school complies with Section 1581.052.
7954	6966		SECTION 3.087. Section 37.10(c)(2), Penal Code, is amended
7955	6967		to read as follows:
7956	6968		(2) An offense under this section is a felony of the
7957	6969		third degree if it is shown on the trial of the offense that the
7958	6970		governmental record was:
7959	6971		(A) a public school record, report, or assessment
7960	6972		instrument required under Chapter 39, Education Code, data reported
7961	6973		for a school district or open-enrollment charter school to the
7962	6974		Texas Education Agency through the Public Education Information
7963	6975		Management System (PEIMS) described by Sections 48.008 and 48.009
7964	6976		[Section 42.006], Education Code, under a law or rule requiring
7965	6977		that reporting, or a license, certificate, permit, seal, title,
7966	6978		letter of patent, or similar document issued by government, by
7967	6979		another state, or by the United States, unless the actor's intent is
7968	6980		to defraud or harm another, in which event the offense is a felony
7969	6981		of the second degree;
7970	6982		(B) a written report of a medical, chemical,
7971	6983		toxicological, ballistic, or other expert examination or test
7972	6984		performed on physical evidence for the purpose of determining the
7973	6985		connection or relevance of the evidence to a criminal action;
7974	6986		(C) a written report of the certification,
7975	6987		inspection, or maintenance record of an instrument, apparatus,
7976	6988		implement, machine, or other similar device used in the course of an
7977	6989		examination or test performed on physical evidence for the purpose
7978	6990		of determining the connection or relevance of the evidence to a
7979	6991		criminal action; or
7980	6992		(D) a search warrant issued by a magistrate.
7981	6993		SECTION 3.088. Section 39.03(d), Penal Code, is amended to
7982	6994		read as follows:
7983	6995		(d) An offense under this section is a Class A misdemeanor,
7984	6996		except that an offense is a felony of the third degree if the public
7985	6997		servant acted with the intent to impair the accuracy of data
7986	6998		reported to the Texas Education Agency through the Public Education
7987	6999		Information Management System (PEIMS) described by Sections 48.008
7988	7000		and 48.009 [Section 42.006], Education Code, under a law requiring
7989	7001		that reporting.
7990	7002		SECTION 3.089. Section 21.01, Tax Code, is amended to read
7991	7003		as follows:
7992	7004		Sec. 21.01. REAL PROPERTY. Real property is taxable by a
7993	7005		taxing unit if located in the unit on January 1, except as provided
7994	7006		by Chapter 49 [41], Education Code.
7995	7007		SECTION 3.090. Sections 21.02(b) and (c), Tax Code, are
7996	7008		amended to read as follows:
7997	7009		(b) Tangible personal property having taxable situs at the
7998	7010		same location as real property detached from a school district and
7999	7011		annexed by another school district under Chapter 49 [41], Education
8000	7012		Code, is taxable in the tax year in which the detachment and
8001	7013		annexation occurs by the same school district by which the real
8002	7014		property is taxable in that tax year under Chapter 49 [41],
8003	7015		Education Code. For purposes of this subsection and Chapter 49
8004	7016		[41], Education Code, tangible personal property has taxable situs
8005	7017		at the same location as real property detached and annexed under
8006	7018		Chapter 49 [41], Education Code, if the detachment and annexation
8007	7019		of the real property, had it occurred before January 1 of the tax
8008	7020		year, would have changed the taxable situs of the tangible personal
8009	7021		property determined as provided by Subsection (a) from the school
8010	7022		district from which the real property was detached to the school
8011	7023		district to which the real property was annexed.
8012	7024		(c) Tangible personal property has taxable situs in a school
8013	7025		district that is the result of a consolidation under Chapter 49
8014	7026		[41], Education Code, in the year in which the consolidation occurs
8015	7027		if the property would have had taxable situs in the consolidated
8016	7028		district in that year had the consolidation occurred before January
8017	7029		1 of that year.
8018	7030		SECTION 3.091. Section 25.25(k), Tax Code, is amended to
8019	7031		read as follows:
8020	7032		(k) The chief appraiser shall change the appraisal records
8021	7033		and school district appraisal rolls promptly to reflect the
8022	7034		detachment and annexation of property among school districts under
8023	7035		Subchapter C or G, Chapter 49 [41], Education Code.
8024	7036		SECTION 3.092. Section 311.013(n), Tax Code, is amended to
8025	7037		read as follows:
8026	7038		(n) This subsection applies only to a school district whose
8027	7039		taxable value computed under Section 403.302(d), Government Code,
8028	7040		is reduced in accordance with Subdivision (4) of that
8029	7041		subsection. In addition to the amount otherwise required to be
8030	7042		paid into the tax increment fund, the district shall pay into the
8031	7043		fund an amount equal to the amount by which the amount of taxes the
8032	7044		district would have been required to pay into the fund in the
8033	7045		current year if the district levied taxes at the rate the district
8034	7046		levied in 2005 exceeds the amount the district is otherwise
8035	7047		required to pay into the fund in the year of the reduction. This
8036	7048		additional amount may not exceed the amount the school district
8037	7049		receives in state aid for the current tax year under Section 48.253
8038	7050		[42.2514], Education Code. The school district shall pay the
8039	7051		additional amount after the district receives the state aid to
8040	7052		which the district is entitled for the current tax year under
8041	7053		Section 48.253 [42.2514], Education Code.
8042	7054		SECTION 3.093. Section 312.002(g), Tax Code, is amended to
8043	7055		read as follows:
8044	7056		(g) "Taxing unit" has the meaning assigned by Section 1.04,
8045	7057		except that for a tax abatement agreement executed on or after
8046	7058		September 1, 2001, the term does not include a school district that
8047	7059		is subject to Chapter 48 [42], Education Code, and that is organized
8048	7060		primarily to provide general elementary and secondary public
8049	7061		education.
8050	7062		SECTION 3.094. Section 312.210(b), Tax Code, is amended to
8051	7063		read as follows:
8052	7064		(b) A tax abatement agreement with the owner of real
8053	7065		property or tangible personal property that is located in the
8054	7066		reinvestment zone described by Subsection (a) and in a school
8055	7067		district that has a local revenue level [wealth per student] that
8056	7068		does not exceed the [equalized wealth] level established under
8057	7069		Section 48.257 must exempt from taxation:
8058	7070		(1) the portion of the value of the property in the
8059	7071		amount specified in the joint agreement among the municipality,
8060	7072		county, and junior college district; and
8061	7073		(2) an amount equal to 10 percent of the maximum
8062	7074		portion of the value of the property that may under Section
8063	7075		312.204(a) be otherwise exempted from taxation.
8064	7076		SECTION 3.095. Section 313.027(i), Tax Code, is amended to
8065	7077		read as follows:
8066	7078		(i) A person and the school district may not enter into an
8067	7079		agreement under which the person agrees to provide supplemental
8068	7080		payments to a school district or any other entity on behalf of a
8069	7081		school district in an amount that exceeds an amount equal to the
8070	7082		greater of $100 per student per year in average daily attendance, as
8071	7083		defined by Section 48.005 [42.005], Education Code, or $50,000 per
8072	7084		year, or for a period that exceeds the period beginning with the
8073	7085		period described by Section 313.021(4) and ending December 31 of
8074	7086		the third tax year after the date the person's eligibility for a
8075	7087		limitation under this chapter expires. This limit does not apply
8076	7088		to amounts described by Subsection (f)(1) or (2).
8077		-	ARTICLE 4. REPEALER
8078		-	SECTION 4.001. (a) The following provisions of the
	7089	+	ARTICLE 4. PROPERTY TAX RELIEF
	7090	+	SECTION 4.001. Effective September 1, 2021, Section
	7091	+	13.054(f), Education Code, is amended to read as follows:
	7092	+	(f) For five years beginning with the school year in which
	7093	+	the annexation occurs, a school district shall receive additional
	7094	+	funding under this subsection or Subsection (h). The amount of
	7095	+	funding shall be determined by multiplying the lesser of the
	7096	+	enlarged district's local fund assignment computed under Section
	7097	+	42.252 or the enlarged district's total cost of tier one by a
	7098	+	fraction, the numerator of which is the number of students residing
	7099	+	in the territory annexed to the receiving district preceding the
	7100	+	date of the annexation and the denominator of which is the number of
	7101	+	students residing in the district as enlarged on the date of the
	7102	+	annexation, and multiplying the resulting product by the quotient
	7103	+	of the enlarged district's maximum compressed tax rate, as
	7104	+	determined under Section 48.2551, for the current school year
	7105	+	divided by the receiving district's maximum compressed tax rate, as
	7106	+	determined under Section 48.2551, for the year in which the
	7107	+	annexation occurred.
	7108	+	SECTION 4.002. Effective September 1, 2021, Section 30.003,
	7109	+	Education Code, is amended by amending Subsection (f-1) and adding
	7110	+	Subsection (f-2) to read as follows:
	7111	+	(f-1) The commissioner shall determine the total amount
	7112	+	that the Texas School for the Blind and Visually Impaired and the
	7113	+	Texas School for the Deaf would have received from school districts
	7114	+	in accordance with this section if the following provisions had not
	7115	+	reduced the districts' share of the cost of providing education
	7116	+	services:
	7117	+	(1) H.B. No. 1, Acts of the 79th Legislature, 3rd
	7118	+	Called Session, 2006;
	7119	+	(2) Section 45.0032;
	7120	+	(3) Section 48.255; and
	7121	+	(4) Section 48.2551.
	7122	+	(f-2) The amount determined under Subsection (f-1), [had
	7123	+	not reduced the districts' share of the cost of providing education
	7124	+	services. That amount,] minus any amount the schools do receive
	7125	+	from school districts, shall be set aside as a separate account in
	7126	+	the foundation school fund and appropriated to those schools for
	7127	+	educational purposes.
	7128	+	SECTION 4.003. Effective September 1, 2020, Section 45.003,
	7129	+	Education Code, is amended by adding Subsections (d-1), (d-2),
	7130	+	(d-3), and (d-4) to read as follows:
	7131	+	(d-1) Except as provided by Subsection (d-2) and Section
	7132	+	26.08(a-1), Tax Code, a school district may not adopt a maintenance
	7133	+	and operations tax rate for the 2020 tax year that exceeds the tax
	7134	+	rate that results after adjusting the district's 2019 tax rate in
	7135	+	accordance with Sections 45.0032, 48.202, and 48.255.
	7136	+	(d-2) Subsection (d-1) does not apply to a school district
	7137	+	if the amount of the district's entitlement per student in average
	7138	+	daily attendance under Chapter 48 for the 2020-2021 school year
	7139	+	does not exceed the district's entitlement under former Chapters 41
	7140	+	and 42 for the 2018-2019 school year by more than $20.
	7141	+	(d-3) The commissioner's rulemaking authority under Section
	7142	+	48.004 applies to Subsections (d-1) and (d-2), and the commissioner
	7143	+	may take any action relating to Subsections (d-1) and (d-2)
	7144	+	necessary to implement and administer the Foundation School
	7145	+	Program.
	7146	+	(d-4) Subsections (d-1), (d-2), (d-3), and this subsection
	7147	+	expire September 1, 2021.
	7148	+	SECTION 4.004. Effective September 1, 2021, Sections
	7149	+	45.003(d) and (f), Education Code, are amended to read as follows:
	7150	+	(d) A proposition submitted to authorize the levy of
	7151	+	maintenance taxes must include the question of whether the
	7152	+	governing board or commissioners court may levy, assess, and
	7153	+	collect annual ad valorem taxes for the further maintenance of
	7154	+	public schools, at a rate not to exceed the rate stated in the
	7155	+	proposition. For any year, the maintenance tax rate per $100 of
	7156	+	taxable value adopted by the district may not exceed the rate equal
	7157	+	to the sum of $0.17 and the district's maximum compressed rate
	7158	+	[product of the state compression percentage], as determined under
	7159	+	Section 48.2551 [42.2516, multiplied by $1.50].
	7160	+	(f) Notwithstanding any other law, a district that levied a
	7161	+	maintenance tax for the 2005 tax year at a rate greater than $1.50
	7162	+	per $100 of taxable value in the district as permitted by special
	7163	+	law may not levy a maintenance tax at a rate that exceeds the rate
	7164	+	per $100 of taxable value that is equal to the sum of:
	7165	+	(1) $0.17; and
	7166	+	(2) the product of 66.67 percent [the state
	7167	+	compression percentage, as determined under Section 42.2516,]
	7168	+	multiplied by the rate of the maintenance tax levied by the district
	7169	+	for the 2005 tax year, minus the amount by which $1.00 exceeds the
	7170	+	state compression percentage, as determined under Section 48.255.
	7171	+	SECTION 4.005. (a) Effective September 1, 2021, Section
	7172	+	45.0032, Education Code, as added by this Act, is amended by adding
	7173	+	Subsection (a) to read as follows:
	7174	+	(a) A school district's tier one maintenance and operations
	7175	+	tax rate is the number of cents levied by the district for
	7176	+	maintenance and operations that does not exceed the maximum
	7177	+	compressed rate, as determined under Section 48.2551.
	7178	+	(b) Section 45.0032(a), Education Code, as added by Article
	7179	+	1 of this Act, expires on the effective date of this section.
	7180	+	SECTION 4.006. Section 46.071, Education Code, is amended
	7181	+	by adding Subsections (a-1), (b-1), and (c-1) and amending
	7182	+	Subsections (b) and (c) to read as follows:
	7183	+	(a-1) Beginning with the 2019-2020 school year, a school
	7184	+	district is entitled to additional state aid under this subchapter
	7185	+	to the extent that state and local revenue used to service debt
	7186	+	eligible under this chapter is less than the state and local revenue
	7187	+	that would have been available to the district under this chapter as
	7188	+	it existed on September 1, 2018, if the increase in the residence
	7189	+	homestead exemption under Section 1-b(c), Article VIII, Texas
	7190	+	Constitution, and the additional limitation on tax increases under
	7191	+	Section 1-b(d) of that article as proposed by the 86th Legislature,
	7192	+	Regular Session, 2019, had not occurred.
	7193	+	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
	7194	+	additional state aid under Subsection (a) [this section] is equal
	7195	+	to the amount by which the loss of local interest and sinking
	7196	+	revenue for debt service attributable to the increase in the
	7197	+	residence homestead exemption under Section 1-b(c), Article VIII,
	7198	+	Texas Constitution, and the additional limitation on tax increases
	7199	+	under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th
	7200	+	Legislature, Regular Session, 2015, is not offset by a gain in state
	7201	+	aid under this chapter.
	7202	+	(b-1) Subject to Subsections (c-1), (d), and (e),
	7203	+	additional state aid under Subsection (a-1) is equal to the amount
	7204	+	by which the loss of local interest and sinking revenue for debt
	7205	+	service attributable to the increase in the residence homestead
	7206	+	exemption under Section 1-b(c), Article VIII, Texas Constitution,
	7207	+	and the additional limitation on tax increases under Section 1-b(d)
	7208	+	of that article as proposed by the 86th Legislature, Regular
	7209	+	Session, 2019, is not offset by a gain in state aid under this
	7210	+	chapter.
	7211	+	(c) For the purpose of determining state aid under
	7212	+	Subsections (a) and (b) [this section], local interest and sinking
	7213	+	revenue for debt service is limited to revenue required to service
	7214	+	debt eligible under this chapter as of September 1, 2015, including
	7215	+	refunding of that debt, subject to Section 46.061. The limitation
	7216	+	imposed by Section 46.034(a) does not apply for the purpose of
	7217	+	determining state aid under this section.
	7218	+	(c-1) For the purpose of determining state aid under
	7219	+	Subsections (a-1) and (b-1), local interest and sinking revenue for
	7220	+	debt service is limited to revenue required to service debt
	7221	+	eligible under this chapter as of September 1, 2018, including
	7222	+	refunding of that debt, subject to Section 46.061. The limitation
	7223	+	imposed by Section 46.034(a) does not apply for the purpose of
	7224	+	determining state aid under this section.
	7225	+	SECTION 4.007. Effective September 1, 2021, Section 42.101,
	7226	+	Education Code, is transferred to Subchapter B, Chapter 48,
	7227	+	Education Code, as added by this Act, redesignated as Section
	7228	+	48.051, Education Code, and amended to read as follows:
	7229	+	Sec. 48.051 [42.101]. BASIC ALLOTMENT. (a) For each
	7230	+	student in average daily attendance, not including the time
	7231	+	students spend each day in special education programs in an
	7232	+	instructional arrangement other than mainstream or career and
	7233	+	technology education programs, for which an additional allotment is
	7234	+	made under Subchapter C, a district is entitled to an allotment
	7235	+	equal to the lesser of $5,880 [$4,765] or the amount that results
	7236	+	from the following formula:
	7237	+	A = $5,880 [$4,765] X TR/MCR [(DCR/MCR)]
	7238	+	where:
	7239	+	"A" is the allotment to which a district is entitled;
	7240	+	"TR" ["DCR"] is the district's tier one maintenance and
	7241	+	operations [compressed] tax rate, as provided by Section 45.0032
	7242	+	[which is the product of the state compression percentage, as
	7243	+	determined under Section 42.2516, multiplied by the maintenance and
	7244	+	operations tax rate adopted by the district for the 2005 tax year];
	7245	+	and
	7246	+	"MCR" is the district's [state] maximum compressed tax rate,
	7247	+	as determined under Section 48.2551 [which is the product of the
	7248	+	state compression percentage, as determined under Section 42.2516,
	7249	+	multiplied by $1.50].
	7250	+	[(a-1) Notwithstanding Subsection (a), for a school
	7251	+	district that adopted a maintenance and operations tax rate for the
	7252	+	2005 tax year below the maximum rate permitted by law for that year,
	7253	+	the district's compressed tax rate ("DCR") includes the portion of
	7254	+	the district's current maintenance and operations tax rate in
	7255	+	excess of the first six cents above the district's compressed tax
	7256	+	rate, as defined by Subsection (a), until the district's compressed
	7257	+	tax rate computed in accordance with this subsection is equal to the
	7258	+	state maximum compressed tax rate ("MCR").]
	7259	+	(b) A greater amount for any school year may be provided by
	7260	+	appropriation.
	7261	+	(c) Out of the total statewide allotment under this section,
	7262	+	the commissioner shall annually set aside $6 million to fund the
	7263	+	blended learning grant program under Section 29.924. After
	7264	+	deducting the amount set aside under this subsection from the total
	7265	+	statewide allotment under this section, the commissioner shall
	7266	+	reduce each school district's allotment under this section
	7267	+	proportionately and allocate funds to each district accordingly.
	7268	+	[This subsection applies to a school district for which the
	7269	+	compressed tax rate ("DCR") is determined in accordance with
	7270	+	Subsection (a-1). Any reduction in the district's adopted
	7271	+	maintenance and operations tax rate is applied to the following
	7272	+	components of the district's tax rate in the order specified:
	7273	+	[(1) tax effort described by Section 42.302(a-1)(2);
	7274	+	[(2) tax effort described by Section 42.302(a-1)(1);
	7275	+	and
	7276	+	[(3) tax effort included in the determination of the
	7277	+	district's compressed tax rate ("DCR") under Subsection (a-1).]
	7278	+	SECTION 4.008. Effective September 1, 2021, Section 42.302,
	7279	+	Education Code, is transferred to Subchapter E, Chapter 48,
	7280	+	Education Code, as added by this Act, redesignated as Section
	7281	+	48.202, Education Code, and amended to read as follows:
	7282	+	Sec. 48.202 [42.302]. TIER TWO ALLOTMENT. (a) Each school
	7283	+	district is guaranteed a specified amount per weighted student in
	7284	+	state and local funds for each cent of tax effort over that required
	7285	+	for the district's local fund assignment up to the maximum level
	7286	+	specified in this subchapter. The amount of state support, subject
	7287	+	only to the maximum amount under Section 48.203 [42.303], is
	7288	+	determined by the formula:
	7289	+	GYA = (GL X WADA X DTR X 100) - LR
	7290	+	where:
	7291	+	"GYA" is the guaranteed yield amount of state funds to be
	7292	+	allocated to the district;
	7293	+	"GL" is the dollar amount guaranteed level of state and local
	7294	+	funds per weighted student per cent of tax effort, which is an
	7295	+	amount described by Subsection (a-1) or a greater amount for any
	7296	+	year provided by appropriation;
	7297	+	"WADA" is the number of students in weighted average daily
	7298	+	attendance, which is calculated by dividing the sum of the school
	7299	+	district's allotments under Subchapters B and C[, less any
	7300	+	allotment to the district for transportation, any allotment under
	7301	+	Section 42.158 or 42.160, and 50 percent of the adjustment under
	7302	+	Section 42.102,] by the basic allotment for the applicable year;
	7303	+	"DTR" is the district enrichment tax rate of the school
	7304	+	district, which is determined by subtracting the amounts specified
	7305	+	by Subsection (b) from the total amount of maintenance and
	7306	+	operations taxes collected by the school district for the
	7307	+	applicable school year and dividing the difference by the quotient
	7308	+	of the district's taxable value of property as determined under
	7309	+	Subchapter M, Chapter 403, Government Code, or, if applicable,
	7310	+	under Section 48.258 [42.2521], divided by 100; and
	7311	+	"LR" is the local revenue, which is determined by multiplying
	7312	+	"DTR" by the quotient of the district's taxable value of property as
	7313	+	determined under Subchapter M, Chapter 403, Government Code, or, if
	7314	+	applicable, under Section 48.258 [42.2521], divided by 100.
	7315	+	(a-1) For purposes of Subsection (a), the dollar amount
	7316	+	guaranteed level of state and local funds per weighted student per
	7317	+	cent of tax effort ("GL") for a school district is:
	7318	+	(1) [the greater of the amount of district tax revenue
	7319	+	per weighted student per cent of tax effort that would be available
	7320	+	to the Austin Independent School District, as determined by the
	7321	+	commissioner in cooperation with the Legislative Budget Board, if
	7322	+	the reduction of the limitation on tax increases as provided by
	7323	+	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or]
	7324	+	the amount that results from multiplying $5,880, or the greater
	7325	+	amount provided under Section 48.051(b), if applicable, by 0.016
	7326	+	[of district tax revenue per weighted student per cent of tax effort
	7327	+	used for purposes of this subdivision in the preceding school
	7328	+	year], for the first six cents by which the district's maintenance
	7329	+	and operations tax rate exceeds the district's maximum compressed
	7330	+	rate [equal to the sum of the product of the state compression
	7331	+	percentage], as determined under Section 48.2551 [42.2516,
	7332	+	multiplied by the maintenance and operations tax rate adopted by
	7333	+	the district for the 2005 tax year and any additional tax effort
	7334	+	included in calculating the district's compressed tax rate under
	7335	+	Section 42.101(a-1)]; and
	7336	+	(2) subject to Subsection (f), the amount that results
	7337	+	from multiplying $5,880, or the greater amount provided under
	7338	+	Section 48.051(b), if applicable, by 0.008 [$31.95], for the
	7339	+	district's maintenance and operations tax effort that exceeds the
	7340	+	amount of tax effort described by Subdivision (1).
	7341	+	(a-2) The limitation on district enrichment tax rate
	7342	+	("DTR") under Section 48.203 [42.303] does not apply to the
	7343	+	district's maintenance and operations tax effort described by
	7344	+	Subsection (a-1)(1).
	7345	+	(b) In computing the district enrichment tax rate of a
	7346	+	school district, the total amount of maintenance and operations
	7347	+	taxes collected by the school district does not include the amount
	7348	+	of:
	7349	+	(1) the district's local fund assignment under Section
	7350	+	48.256 [42.252]; or
	7351	+	(2) taxes paid into a tax increment fund under Chapter
	7352	+	311, Tax Code.
	7353	+	(c) For purposes of this section, school district taxes for
	7354	+	which credit is granted under Section 31.035, 31.036, or 31.037,
	7355	+	Tax Code, are considered taxes collected by the school district as
	7356	+	if the taxes were paid when the credit for the taxes was granted.
	7357	+	(d) For purposes of this section, the total amount of
	7358	+	maintenance and operations taxes collected for an applicable school
	7359	+	year by a school district with alternate tax dates, as authorized by
	7360	+	Section 26.135, Tax Code, is the amount of taxes collected on or
	7361	+	after January 1 of the year in which the school year begins and not
	7362	+	later than December 31 of the same year.
	7363	+	(e) For purposes of this section, school district taxes for
	7364	+	which credit is granted under former Subchapter D, Chapter 313, Tax
	7365	+	Code, are considered taxes collected by the school district as if
	7366	+	the taxes were paid when the credit for the taxes was granted.
	7367	+	(f) For a school year in which the dollar amount guaranteed
	7368	+	level of state and local funds per weighted student per cent of tax
	7369	+	effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount
	7370	+	guaranteed level of state and local funds per weighted student per
	7371	+	cent of tax effort ("GL") under Subsection (a-1)(2) for the
	7372	+	preceding school year, a school district shall reduce the
	7373	+	district's tax rate under Section 45.0032(b)(2) for the tax year
	7374	+	that corresponds to that school year to a rate that results in the
	7375	+	amount of state and local funds per weighted student per cent of tax
	7376	+	effort available to the district at the dollar amount guaranteed
	7377	+	level for the preceding school year. A school district is not
	7378	+	entitled to the amount equal to the increase of revenue described by
	7379	+	this subsection for the school year for which the district must
	7380	+	reduce the district's tax rate. Unless Section 26.08(a-1), Tax
	7381	+	Code, applies to the district, for a tax year in which a district
	7382	+	must reduce the district's tax rate under this subsection, the
	7383	+	district may not increase the district's maintenance and operations
	7384	+	tax rate to a rate that exceeds the maximum maintenance and
	7385	+	operations tax rate permitted under Section 45.003(d) or (f), as
	7386	+	applicable, minus the reduction of tax effort required under this
	7387	+	subsection. This subsection does not apply if the amount of state
	7388	+	funds appropriated for a school year specifically excludes the
	7389	+	amount necessary to provide the dollar amount guaranteed level of
	7390	+	state and local funds per weighted student per cent of tax effort
	7391	+	under Subsection (a-1)(2) [If a school district imposes a
	7392	+	maintenance and operations tax at a rate greater than the rate equal
	7393	+	to the product of the state compression percentage, as determined
	7394	+	under Section 42.2516, multiplied by the maintenance and operations
	7395	+	tax rate adopted by the district for the 2005 tax year, the district
	7396	+	is entitled to receive an allotment under this section on the basis
	7397	+	of that greater tax effort].
	7398	+	(f-1) For the 2019 tax year, Subsection (f) applies to a
	7399	+	district's maintenance and operations tax rate after adjusting the
	7400	+	district's rate in accordance with Section 45.0032. This
	7401	+	subsection expires September 1, 2020.
	7402	+	SECTION 4.009. Effective September 1, 2020, Section
	7403	+	42.2516, Education Code, is transferred to Subchapter F, Chapter
	7404	+	48, Education Code, as added by this Act, redesignated as Section
	7405	+	48.255, Education Code, and amended to read as follows:
	7406	+	Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
	7407	+	In this title, "state compression percentage" means the percentage
	7408	+	of the rate of $1.00 per $100 valuation of taxable property at which
	7409	+	a school district must levy a [district's adopted] maintenance and
	7410	+	operations tax to receive the full amount of the tier one allotment
	7411	+	to which the district is entitled under this chapter.
	7412	+	(b) The [tax rate for the 2005 tax year that serves as the
	7413	+	basis for state funding. If the] state compression percentage is:
	7414	+	(1) 85 percent; or
	7415	+	(2) a lower percentage set [not established] by
	7416	+	appropriation for a school year [, the commissioner shall determine
	7417	+	the state compression percentage for each school year based on the
	7418	+	percentage by which a district is able to reduce the district's
	7419	+	maintenance and operations tax rate for that year, as compared to
	7420	+	the district's adopted maintenance and operations tax rate for the
	7421	+	2005 tax year, as a result of state funds appropriated for that year
	7422	+	from the property tax relief fund established under Section
	7423	+	403.109, Government Code, or from another funding source available
	7424	+	for school district property tax relief.
	7425	+	[(g) The commissioner may adopt rules necessary to
	7426	+	implement this section.
	7427	+	[(h) A determination by the commissioner under this section
	7428	+	is final and may not be appealed].
	7429	+	SECTION 4.010. Effective September 1, 2021, Section
	7430	+	42.2516, Education Code, is transferred to Subchapter F, Chapter
	7431	+	48, Education Code, as added by this Act, redesignated as Section
	7432	+	48.255, Education Code, and amended to read as follows:
	7433	+	Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
	7434	+	In this title, "state compression percentage" means the percentage
	7435	+	of the rate of $1.00 per $100 valuation of taxable property that is
	7436	+	used to determine a school district's maximum compressed [adopted
	7437	+	maintenance and operations] tax rate under Section 48.2551.
	7438	+	(b) The [for the 2005 tax year that serves as the basis for
	7439	+	state funding. If the] state compression percentage is:
	7440	+	(1) 85 percent; or
	7441	+	(2) a lower percentage set [not established] by
	7442	+	appropriation for a school year [, the commissioner shall determine
	7443	+	the state compression percentage for each school year based on the
	7444	+	percentage by which a district is able to reduce the district's
	7445	+	maintenance and operations tax rate for that year, as compared to
	7446	+	the district's adopted maintenance and operations tax rate for the
	7447	+	2005 tax year, as a result of state funds appropriated for that year
	7448	+	from the property tax relief fund established under Section
	7449	+	403.109, Government Code, or from another funding source available
	7450	+	for school district property tax relief.
	7451	+	[(g) The commissioner may adopt rules necessary to
	7452	+	implement this section.
	7453	+	[(h) A determination by the commissioner under this section
	7454	+	is final and may not be appealed].
	7455	+	SECTION 4.011. Effective September 1, 2021, Subchapter F,
	7456	+	Chapter 48, Education Code, as added by this Act, is amended by
	7457	+	adding Sections 48.2551 and 48.2552 to read as follows:
	7458	+	Sec. 48.2551. MAXIMUM COMPRESSED TAX RATE. (a) In this
	7459	+	section:
	7460	+	(1) "DPV" has the meaning assigned by Section 48.256;
	7461	+	(2) "E" is the expiration of the exclusion of
	7462	+	appraised property value for the preceding tax year that is
	7463	+	recognized as taxable property value for the current tax year,
	7464	+	which is the sum of the following:
	7465	+	(A) property value that is no longer subject to a
	7466	+	limitation on appraised value under Chapter 313, Tax Code; and
	7467	+	(B) property value under Section 311.013(n), Tax
	7468	+	Code, that is no longer excluded from the calculation of "DPV" from
	7469	+	the preceding year because of refinancing or renewal after
	7470	+	September 1, 2019;
	7471	+	(3) "GLF" is the growth limit factor, which is
	7472	+	assigned a value as follows:
	7473	+	(A) 1.025, if "GLP" is assigned the value under
	7474	+	Subdivision (4)(A);
	7475	+	(B) 1.035, if "GLP" is assigned the value under
	7476	+	Subdivision (4)(B);
	7477	+	(C) 1.045, if "GLP" is assigned the value under
	7478	+	Subdivision (4)(C); and
	7479	+	(D) 1.1, if "GLP" is assigned the value under
	7480	+	Subdivision (4)(D);
	7481	+	(4) "GLP" is the growth limit percentage, which is
	7482	+	assigned a value by the commissioner as follows based on the annual
	7483	+	inflation rate for the current tax year, as determined by the
	7484	+	comptroller under Subsection (d) using the most recently published
	7485	+	data:
	7486	+	(A) 2.5 percent, if the annual inflation rate is
	7487	+	less than four percent;
	7488	+	(B) 3.5 percent, if the annual inflation rate is
	7489	+	equal to or greater than four percent but less than six percent;
	7490	+	(C) 4.5 percent, if the annual inflation rate is
	7491	+	equal to or greater than six percent but less than eight percent; or
	7492	+	(D) 10 percent, if the annual inflation rate is
	7493	+	equal to or greater than eight percent;
	7494	+	(5) "MCR" is the district's maximum compressed rate,
	7495	+	which is the tax rate for the current tax year per $100 of valuation
	7496	+	of taxable property at which the district must levy a maintenance
	7497	+	and operations tax to receive the full amount of the tier one
	7498	+	allotment to which the district is entitled under this chapter;
	7499	+	(6) "PYDPV" is the district's value of "DPV" for the
	7500	+	preceding tax year; and
	7501	+	(7) "PYMCR" is the district's value of "MCR" for the
	7502	+	preceding tax year.
	7503	+	(b) Except as provided by Subsection (c), a district's
	7504	+	maximum compressed rate ("MCR") is the lesser of:
	7505	+	(1) the rate determined by the following applicable
	7506	+	formula:
	7507	+	(A) if "DPV" exceeds "PYDPV" by an amount equal
	7508	+	to or greater than "GLP":
	7509	+	MCR = (GLF((PYDPV+E) X PYMCR))/DPV; or
	7510	+	(B) if Paragraph (A) does not apply:
	7511	+	MCR = PYMCR; or
	7512	+	(2) the product of the state compression percentage,
	7513	+	as determined under Section 48.255, for the current tax year,
	7514	+	multiplied by $1.00.
	7515	+	(c) Notwithstanding Subsection (b), for a district to which
	7516	+	Section 48.2552(b) applies, the district's maximum compressed rate
	7517	+	is the value calculated for "MCR" under Subsection (b)(1)(B).
	7518	+	(c-1) For purposes of determining a district's maximum
	7519	+	compressed rate ("MCR") under Subsection (b) for the 2021-2022
	7520	+	school year, the value of "PYMCR" is $1.00. This subsection expires
	7521	+	September 1, 2022.
	7522	+	(d) The comptroller shall determine the annual inflation
	7523	+	rate based on the Consumer Price Index for All Urban Consumers
	7524	+	published by the Bureau of Labor Statistics of the United States
	7525	+	Department of Labor.
	7526	+	(e) The agency shall calculate and make available school
	7527	+	districts' maximum compressed rates, as determined under this
	7528	+	section.
	7529	+	Sec. 48.2552. LIMITATION ON MAXIMUM COMPRESSED RATE. (a)
	7530	+	Each year, the agency shall evaluate the difference between school
	7531	+	districts' maximum compressed rates, as determined under Section
	7532	+	48.2551.
	7533	+	(b) If a school district has a maximum compressed rate that
	7534	+	is less than 85 percent of another school district's maximum
	7535	+	compressed rate, the district's maximum compressed rate is
	7536	+	calculated under Section 48.2551(c) until the agency determines
	7537	+	that the difference between the district's and another district's
	7538	+	maximum compressed rates is not more than 15 percent.
	7539	+	SECTION 4.012. Effective September 1, 2021, Section 48.257,
	7540	+	Education Code, as added by this Act, is amended by adding
	7541	+	Subsection (g) to read as follows:
	7542	+	(g) For a district to which Section 45.003(f) applies,
	7543	+	revenue generated from any cents of maintenance and operations tax
	7544	+	effort that exceeds the maximum rate permitted under Section
	7545	+	45.003(d) is subject to the revenue limit established under
	7546	+	Subsection (f).
	7547	+	SECTION 4.013. Section 49.004, Education Code, as
	7548	+	transferred, redesignated, and amended by this Act, is amended by
	7549	+	adding Subsections (a-1), (b-1), and (c-1) to read as follows:
	7550	+	(a-1) This subsection applies only if the constitutional
	7551	+	amendment proposed by the 86th Legislature, Regular Session, 2019,
	7552	+	to increase the amount of the exemption of residence homesteads
	7553	+	from ad valorem taxation by a school district is approved by the
	7554	+	voters in an election held for that purpose. As soon as practicable
	7555	+	after receiving revised property values that reflect adoption of
	7556	+	the constitutional amendment, the commissioner shall review the
	7557	+	local revenue level of districts in the state and revise as
	7558	+	necessary the notifications provided under Subsection (a) for the
	7559	+	2019-2020 school year. This subsection expires September 1, 2020.
	7560	+	(b-1) This subsection applies only to a district that has
	7561	+	not previously held an election under this chapter. Notwithstanding
	7562	+	Subsection (b), a district that enters into an agreement to
	7563	+	exercise an option to reduce the district's local revenue level in
	7564	+	excess of entitlement under Section 49.002(3), (4), or (5) for the
	7565	+	2019-2020 school year may request and, as provided by Section
	7566	+	49.0041(a), receive approval from the commissioner to delay the
	7567	+	date of the election otherwise required to be ordered before
	7568	+	September 1. This subsection expires September 1, 2020.
	7569	+	(c-1) Notwithstanding Subsection (c), a district that
	7570	+	receives approval from the commissioner to delay an election as
	7571	+	provided by Subsection (b-1) may adopt a tax rate for the 2019 tax
	7572	+	year before the commissioner certifies that the district has
	7573	+	reduced its local revenue level to the level established by Section
	7574	+	48.257. This subsection expires September 1, 2020.
	7575	+	SECTION 4.014. Subchapter A, Chapter 49, Education Code, as
	7576	+	added by this Act, is amended by adding Section 49.0041 to read as
	7577	+	follows:
	7578	+	Sec. 49.0041. TRANSITIONAL PROVISIONS: INCREASED
	7579	+	HOMESTEAD EXEMPTION AND LIMITATION ON TAX INCREASES. (a) The
	7580	+	commissioner shall approve a district's request under Section
	7581	+	49.004(b-1) to delay the date of an election required under this
	7582	+	chapter if the commissioner determines that the district would not
	7583	+	have a local revenue level in excess of entitlement if the
	7584	+	constitutional amendment proposed by the 86th Legislature, Regular
	7585	+	Session, 2019, to increase the amount of the exemption of residence
	7586	+	homesteads from ad valorem taxation by a school district were
	7587	+	approved by the voters.
	7588	+	(b) The commissioner shall set a date by which each district
	7589	+	that receives approval under this section must order the election.
	7590	+	(c) Not later than the 2020-2021 school year, the
	7591	+	commissioner shall order detachment and annexation of property
	7592	+	under Subchapter G or consolidation under Subchapter H as necessary
	7593	+	to reduce the district's local revenue level to the level
	7594	+	established by Section 48.259 for a district that receives approval
	7595	+	under this section and subsequently:
	7596	+	(1) fails to hold the election; or
	7597	+	(2) does not receive voter approval at the election.
	7598	+	(d) This section expires September 1, 2021.
	7599	+	SECTION 4.015. Subchapter A, Chapter 49, Education Code, as
	7600	+	added by this Act, is amended by adding Section 49.0121 to read as
	7601	+	follows:
	7602	+	Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
	7603	+	section applies only to an election under this chapter that occurs
	7604	+	during the 2019-2020 school year.
	7605	+	(b) Section 49.012 does not apply to a district that
	7606	+	receives approval of a request under Section 49.0041. The district
	7607	+	shall hold the election on a Tuesday or Saturday on or before a date
	7608	+	specified by the commissioner. Section 41.001, Election Code, does
	7609	+	not apply to the election.
	7610	+	(c) This section expires September 1, 2020.
	7611	+	SECTION 4.016. Section 49.154, Education Code, as added by
	7612	+	this Act, is amended by adding Subsection (a-1) to read as follows:
	7613	+	(a-1) Notwithstanding Subsection (a), a district that
	7614	+	receives approval of a request under Section 49.0041 shall pay for
	7615	+	credit purchased in equal monthly payments as determined by the
	7616	+	commissioner beginning March 15, 2020, and ending August 15, 2020.
	7617	+	This subsection expires September 1, 2020.
	7618	+	SECTION 4.017. Section 49.308, Education Code, as added by
	7619	+	this Act, is amended by adding Subsection (a-1) to read as follows:
	7620	+	(a-1) Notwithstanding Subsection (a), for the 2019-2020
	7621	+	school year, the commissioner shall order any detachments and
	7622	+	annexations of property under this subchapter as soon as
	7623	+	practicable after the canvass of the votes on the constitutional
	7624	+	amendment proposed by the 86th Legislature, Regular Session, 2019,
	7625	+	to increase the amount of the exemption of residence homesteads
	7626	+	from ad valorem taxation by a school district. This subsection
	7627	+	expires September 1, 2020.
	7628	+	SECTION 4.018. Sections 11.13(b) and (n-1), Tax Code, are
	7629	+	amended to read as follows:
	7630	+	(b) An adult is entitled to exemption from taxation by a
	7631	+	school district of $40,000 [$25,000] of the appraised value of the
	7632	+	adult's residence homestead, except that only $5,000 of the
	7633	+	exemption applies to an entity operating under former Chapter 17,
	7634	+	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
	7635	+	May 1, 1995, as permitted by Section 11.301, Education Code.
	7636	+	(n-1) The governing body of a school district,
	7637	+	municipality, or county that adopted an exemption under Subsection
	7638	+	(n) for the 2018 [2014] tax year may not reduce the amount of or
	7639	+	repeal the exemption. This subsection expires December 31, 2023
	7640	+	[2019].
	7641	+	SECTION 4.019. Section 11.26(a), Tax Code, is amended to
	7642	+	read as follows:
	7643	+	(a) The tax officials shall appraise the property to which
	7644	+	this section applies and calculate taxes as on other property, but
	7645	+	if the tax so calculated exceeds the limitation imposed by this
	7646	+	section, the tax imposed is the amount of the tax as limited by this
	7647	+	section, except as otherwise provided by this section. A school
	7648	+	district may not increase the total annual amount of ad valorem tax
	7649	+	it imposes on the residence homestead of an individual 65 years of
	7650	+	age or older or on the residence homestead of an individual who is
	7651	+	disabled, as defined by Section 11.13, above the amount of the tax
	7652	+	it imposed in the first tax year in which the individual qualified
	7653	+	that residence homestead for the applicable exemption provided by
	7654	+	Section 11.13(c) for an individual who is 65 years of age or older
	7655	+	or is disabled. If the individual qualified that residence
	7656	+	homestead for the exemption after the beginning of that first year
	7657	+	and the residence homestead remains eligible for the same exemption
	7658	+	for the next year, and if the school district taxes imposed on the
	7659	+	residence homestead in the next year are less than the amount of
	7660	+	taxes imposed in that first year, a school district may not
	7661	+	subsequently increase the total annual amount of ad valorem taxes
	7662	+	it imposes on the residence homestead above the amount it imposed in
	7663	+	the year immediately following the first year for which the
	7664	+	individual qualified that residence homestead for the same
	7665	+	exemption, except as provided by Subsection (b). If the first tax
	7666	+	year the individual qualified the residence homestead for the
	7667	+	exemption provided by Section 11.13(c) for individuals 65 years of
	7668	+	age or older or disabled was a tax year before the 2019 [2015] tax
	7669	+	year, the amount of the limitation provided by this section is the
	7670	+	amount of tax the school district imposed for the 2018 [2014] tax
	7671	+	year less an amount equal to the amount determined by multiplying
	7672	+	$15,000 [$10,000] times the tax rate of the school district for the
	7673	+	2019 [2015] tax year, plus any 2019 [2015] tax attributable to
	7674	+	improvements made in 2018 [2014], other than improvements made to
	7675	+	comply with governmental regulations or repairs.
	7676	+	SECTION 4.020. Section 25.23, Tax Code, is amended by
	7677	+	adding Subsection (a-1) to read as follows:
	7678	+	(a-1) This subsection applies only to the appraisal records
	7679	+	for the 2019 tax year. If the appraisal records submitted to the
	7680	+	appraisal review board include the taxable value of residence
	7681	+	homesteads or show the amount of the exemption under Section
	7682	+	11.13(b) applicable to residence homesteads, the chief appraiser
	7683	+	shall prepare supplemental appraisal records that reflect an
	7684	+	exemption amount under that subsection of $40,000. This subsection
	7685	+	expires December 31, 2020.
	7686	+	SECTION 4.021. Section 26.04, Tax Code, is amended by
	7687	+	adding Subsections (a-1) and (c-1) to read as follows:
	7688	+	(a-1) On receipt of the appraisal roll for the 2019 tax
	7689	+	year, the assessor for a school district shall determine the total
	7690	+	taxable value of property taxable by the school district and the
	7691	+	taxable value of new property based on a residence homestead
	7692	+	exemption under Section 11.13(b) of $40,000. This subsection
	7693	+	expires December 31, 2020.
	7694	+	(c-1) An officer or employee designated by the governing
	7695	+	body of a school district shall calculate the effective tax rate and
	7696	+	the rollback tax rate of the school district for the 2019 tax year
	7697	+	based on a residence homestead exemption under Section 11.13(b) of
	7698	+	$40,000. This subsection expires December 31, 2020.
	7699	+	SECTION 4.022. Section 26.08, Tax Code, is amended by
	7700	+	adding Subsection (q) to read as follows:
	7701	+	(q) For purposes of this section, the rollback tax rate of a
	7702	+	school district for the 2019 tax year shall be calculated based on a
	7703	+	residence homestead exemption under Section 11.13(b) of $40,000.
	7704	+	This subsection expires December 31, 2020.
	7705	+	SECTION 4.023. Effective January 1, 2021, Section 26.08(n),
	7706	+	Tax Code, is amended to read as follows:
	7707	+	(n) For purposes of this section, the rollback tax rate of a
	7708	+	school district [whose maintenance and operations tax rate for the
	7709	+	2005 tax year was $1.50 or less per $100 of taxable value] is the sum
	7710	+	of the following:
	7711	+	(1) [for the 2006 tax year, the sum of the rate that is
	7712	+	equal to 88.67 percent of the maintenance and operations tax rate
	7713	+	adopted by the district for the 2005 tax year, the rate of $0.04 per
	7714	+	$100 of taxable value, and the district's current debt rate; and
	7715	+	[(2) for the 2007 and subsequent tax years, the lesser
	7716	+	of the following:
	7717	+	[(A) the sum of the following:
	7718	+	[(i)] the rate per $100 of taxable value
	7719	+	that is equal to the district's maximum compressed tax rate
	7720	+	[product of the state compression percentage], as determined under
	7721	+	Section 48.2551 [42.2516], Education Code, for the current year
	7722	+	[and $1.50];
	7723	+	(2) the greater of:
	7724	+	(A) the district's enrichment tax rate for the
	7725	+	preceding tax year, less any amount by which the district is
	7726	+	required to reduce the district's enrichment tax rate under Section
	7727	+	48.202(f), Education Code, in the current tax year; or
	7728	+	(B) [(ii)] the rate of $0.04 per $100 of taxable
	7729	+	value; and
	7730	+	(3) [(iii) the rate that is equal to the sum of the
	7731	+	differences for the 2006 and each subsequent tax year between the
	7732	+	adopted tax rate of the district for that year if the rate was
	7733	+	approved at an election under this section and the rollback tax rate
	7734	+	of the district for that year; and
	7735	+	[(iv)] the district's current debt rate[;
	7736	+	or
	7737	+	[(B) the sum of the following:
	7738	+	[(i) the effective maintenance and
	7739	+	operations tax rate of the district as computed under Subsection
	7740	+	(i) or (k), as applicable;
	7741	+	[(ii) the rate per $100 of taxable value
	7742	+	that is equal to the product of the state compression percentage, as
	7743	+	determined under Section 42.2516, Education Code, for the current
	7744	+	year and $0.06; and
	7745	+	[(iii) the district's current debt rate].
	7746	+	SECTION 4.024. Section 26.09, Tax Code, is amended by
	7747	+	adding Subsection (c-1) to read as follows:
	7748	+	(c-1) The assessor for a school district shall calculate the
	7749	+	amount of tax imposed by the school district on a residence
	7750	+	homestead for the 2019 tax year based on an exemption under Section
	7751	+	11.13(b) of $25,000 and separately based on an exemption under that
	7752	+	subsection of $40,000. This subsection expires December 31, 2020.
	7753	+	SECTION 4.025. Section 26.15, Tax Code, is amended by
	7754	+	adding Subsection (h) to read as follows:
	7755	+	(h) The assessor for a school district shall correct the tax
	7756	+	roll for the school district for the 2019 tax year to reflect the
	7757	+	results of the election to approve the constitutional amendment
	7758	+	proposed by the 86th Legislature, Regular Session, 2019, to
	7759	+	increase the amount of the exemption of residence homesteads from
	7760	+	ad valorem taxation by a school district. This subsection expires
	7761	+	December 31, 2020.
	7762	+	SECTION 4.026. Section 31.01, Tax Code, is amended by
	7763	+	adding Subsections (d-2), (d-3), (d-4), and (d-5) to read as
	7764	+	follows:
	7765	+	(d-2) This subsection and Subsections (d-3) and (d-4) apply
	7766	+	only to taxes imposed by a school district on a residence homestead
	7767	+	for the 2019 tax year. The assessor for the school district shall
	7768	+	compute the amount of taxes imposed and the other information
	7769	+	required by this section based on a residence homestead exemption
	7770	+	under Section 11.13(b) of $40,000. The tax bill or the separate
	7771	+	statement must indicate that the bill is a provisional tax bill and
	7772	+	include a statement in substantially the following form:
	7773	+	"If the amount of the exemption from ad valorem taxation by a
	7774	+	school district of a residence homestead had not been increased by
	7775	+	the Texas Legislature, your tax bill would have been $____ (insert
	7776	+	amount equal to the sum of the amount calculated under Section
	7777	+	26.09(c-1) based on an exemption under Section 11.13(b) of $25,000
	7778	+	and the total amount of taxes imposed by the other taxing units
	7779	+	whose taxes are included in the bill). Because of action by the
	7780	+	Texas Legislature increasing the amount of the residence homestead
	7781	+	exemption, your tax bill has been lowered by $____ (insert
	7782	+	difference between amount calculated under Section 26.09(c-1)
	7783	+	based on an exemption under Section 11.13(b) of $25,000 and amount
	7784	+	calculated under Section 26.09(c-1) based on an exemption under
	7785	+	Section 11.13(b) of $40,000), resulting in a lower tax bill of $____
	7786	+	(insert amount equal to the sum of the amount calculated under
	7787	+	Section 26.09(c-1) based on an exemption under Section 11.13(b) of
	7788	+	$40,000 and the total amount of taxes imposed by the other taxing
	7789	+	units whose taxes are included in the bill), contingent on the
	7790	+	approval by the voters at an election to be held November 5, 2019,
	7791	+	of a constitutional amendment authorizing the residence homestead
	7792	+	exemption increase. If the constitutional amendment is not
	7793	+	approved by the voters at the election, a supplemental school
	7794	+	district tax bill in the amount of $____ (insert difference between
	7795	+	amount calculated under Section 26.09(c-1) based on an exemption
	7796	+	under Section 11.13(b) of $25,000 and amount calculated under
	7797	+	Section 26.09(c-1) based on an exemption under Section 11.13(b) of
	7798	+	$40,000) will be mailed to you."
	7799	+	(d-3) A tax bill prepared by the assessor for a school
	7800	+	district as provided by Subsection (d-2) and mailed to a person in
	7801	+	whose name property subject to an exemption under Section 11.13(b)
	7802	+	is listed on the tax roll and to the person's authorized agent as
	7803	+	provided by Subsection (a) of this section is considered to be a
	7804	+	provisional tax bill until the canvass of the votes on the
	7805	+	constitutional amendment proposed by the 86th Legislature, Regular
	7806	+	Session, 2019, to increase the amount of the exemption of residence
	7807	+	homesteads from ad valorem taxation by a school district. If the
	7808	+	constitutional amendment is approved by the voters, the tax bill is
	7809	+	considered to be a final tax bill for the taxes imposed on the
	7810	+	property for the 2019 tax year, and no additional tax bill is
	7811	+	required to be mailed to the person and to the person's authorized
	7812	+	agent, unless another provision of this title requires the mailing
	7813	+	of a corrected tax bill. If the constitutional amendment is not
	7814	+	approved by the voters:
	7815	+	(1) a tax bill prepared by the assessor for a school
	7816	+	district as provided by Subsection (d-2) and mailed to a person in
	7817	+	whose name property subject to an exemption under Section 11.13(b)
	7818	+	is listed on the tax roll and to the person's authorized agent as
	7819	+	provided by Subsection (a) of this section is considered to be a
	7820	+	final tax bill but only as to the portion of the taxes imposed on the
	7821	+	property for the 2019 tax year that are included in the bill;
	7822	+	(2) the amount of taxes imposed by each school
	7823	+	district on a residence homestead for the 2019 tax year is
	7824	+	calculated based on an exemption under Section 11.13(b) of $25,000;
	7825	+	and
	7826	+	(3) except as provided by Subsections (f), (i-1), and
	7827	+	(k), the assessor for each school district shall prepare and mail a
	7828	+	supplemental tax bill, by December 1 or as soon thereafter as
	7829	+	practicable, to each person in whose name property subject to an
	7830	+	exemption under Section 11.13(b) is listed on the tax roll and to
	7831	+	the person's authorized agent in an amount equal to the difference
	7832	+	between the amount calculated under Section 26.09(c-1) based on an
	7833	+	exemption under Section 11.13(b) of $25,000 and the amount
	7834	+	calculated under Section 26.09(c-1) based on an exemption under
	7835	+	Section 11.13(b) of $40,000.
	7836	+	(d-4) Except as otherwise provided by Subsection (d-3), the
	7837	+	provisions of this section other than Subsection (d-2) apply to a
	7838	+	supplemental tax bill mailed under Subsection (d-3).
	7839	+	(d-5) This subsection and Subsections (d-2), (d-3), and
	7840	+	(d-4) expire December 31, 2020.
	7841	+	SECTION 4.027. Section 31.02, Tax Code, is amended by
	7842	+	adding Subsection (a-1) to read as follows:
	7843	+	(a-1) Except as provided by Subsection (b) of this section
	7844	+	and Sections 31.03 and 31.04, taxes for which a supplemental tax
	7845	+	bill is mailed under Section 31.01(d-3) are due on receipt of the
	7846	+	tax bill and are delinquent if not paid before March 1 of the year
	7847	+	following the year in which imposed. This subsection expires
	7848	+	December 31, 2020.
	7849	+	SECTION 4.028. (a) An assessor or collector for a school
	7850	+	district is not liable for civil damages or subject to criminal
	7851	+	prosecution for compliance in good faith with Section 31.01, Tax
	7852	+	Code, as amended by this article.
	7853	+	(b) This section takes effect immediately if this Act
	7854	+	receives a vote of two-thirds of all the members of each house, as
	7855	+	provided by Section 39, Article III, Texas Constitution. If this
	7856	+	Act does not receive the vote necessary for this section to take
	7857	+	immediate effect, this section takes effect on the 91st day after
	7858	+	the last day of the legislative session.
	7859	+	(c) This section expires December 31, 2022.
	7860	+	ARTICLE 5. REPEALER
	7861	+	SECTION 5.001. (a) The following provisions of the
8079	7862		Education Code are repealed:
8080	7863		(1) Section 7.102(c)(5);
8081	7864		(2) Section 21.0481;
8082	7865		(3) Section 21.0482;
8083	7866		(4) Section 21.0483;
8084	7867		(5) Section 21.0484;
8085	7868		(6) Section 21.410;
8086	7869		(7) Section 21.411;
8087	7870		(8) Section 21.412;
8088	7871		(9) Section 21.413;
8089		-	(10) Section 21.458(c);
8090		-	(11) Sections 28.006(d-1) and (e);
8091		-	(12) Section 29.097;
8092		-	(13) Section 29.098;
8093		-	(14) Section 29.165;
8094		-	(15) Section 29.166;
8095		-	(16) Sections 29.203(g)(1) and (3);
8096		-	(17) Section 39.233;
8097		-	(18) Section 39.234;
8098		-	(19) the headings to Chapters 41 and 42;
8099		-	(20) the heading to Subchapter A, Chapter 41;
8100		-	(21) Section 41.002;
8101		-	(22) Section 41.0041;
8102		-	(23) the heading to Subchapter D, Chapter 41;
8103		-	(24) Section 41.0931;
8104		-	(25) Section 41.098;
8105		-	(26) the heading to Subchapter E, Chapter 41;
8106		-	(27) the heading to Subchapter A, Chapter 42;
8107		-	(28) the heading to Section 42.006;
8108		-	(29) Section 42.007;
8109		-	(30) the heading to Subchapter B, Chapter 42;
8110		-	(31) Section 42.102;
8111		-	(32) Section 42.103;
8112		-	(33) Section 42.104;
8113		-	(34) the heading to Subchapter C, Chapter 42;
8114		-	(35) Section 42.1541;
8115		-	(36) Section 42.156;
8116		-	(37) Section 42.160;
8117		-	(38) the heading to Subchapter E, Chapter 42;
8118		-	(39) Section 42.2513;
8119		-	(40) Section 42.2517;
8120		-	(41) Section 42.2518;
8121		-	(42) Section 42.262;
8122		-	(43) the headings to Subchapters F and G, Chapter 42;
	7872	+	(10) Sections 28.006(d-1), (e), and (i);
	7873	+	(11) Section 29.097;
	7874	+	(12) Section 29.098;
	7875	+	(13) Section 29.165;
	7876	+	(14) Section 29.166;
	7877	+	(15) Sections 29.203(g)(1) and (3);
	7878	+	(16) Section 39.233;
	7879	+	(17) Section 39.234;
	7880	+	(18) the headings to Chapters 41 and 42;
	7881	+	(19) the heading to Subchapter A, Chapter 41;
	7882	+	(20) Section 41.002;
	7883	+	(21) Section 41.0041;
	7884	+	(22) the heading to Subchapter D, Chapter 41;
	7885	+	(23) Section 41.0931;
	7886	+	(24) Section 41.098;
	7887	+	(25) the heading to Subchapter E, Chapter 41;
	7888	+	(26) the heading to Subchapter A, Chapter 42;
	7889	+	(27) the heading to Section 42.006;
	7890	+	(28) Section 42.007;
	7891	+	(29) the heading to Subchapter B, Chapter 42;
	7892	+	(30) Section 42.102;
	7893	+	(31) Section 42.103;
	7894	+	(32) Section 42.104;
	7895	+	(33) the heading to Subchapter C, Chapter 42;
	7896	+	(34) Section 42.1541;
	7897	+	(35) Section 42.156;
	7898	+	(36) Section 42.160;
	7899	+	(37) the heading to Subchapter E, Chapter 42;
	7900	+	(38) Section 42.2513;
	7901	+	(39) Section 42.2517;
	7902	+	(40) Section 42.2518;
	7903	+	(41) Section 42.262;
	7904	+	(42) the headings to Subchapters F and G, Chapter 42;
8123	7905		and
8124		-	(44) Section 42.352.
8125		-	(b) Sections 322.008(b) and 403.302(m), Government Code,
8126		-	are repealed.
	7906	+	(43) Section 42.352.
	7907	+	(b) Section 322.008(b), Government Code, is repealed.
8127	7908		(c) The following provisions of the Tax Code are repealed:
8128	7909		(1) Sections 26.08(o) and (p); and
8129	7910		(2) Section 312.210(c).
8130		-	ARTICLE 5. TRANSITION; CONFLICT OF LAW
8131		-	SECTION 5.001. (a) Except as provided by Subsection (b) or
8132		-	~~(c) of~~ this section, Article 2 of this Act applies beginning with
8133		-	~~the~~ 2019-2020 school year.
	7911	+	ARTICLE 6. TRANSITION; CONFLICT OF LAW
	7912	+	SECTION 6.001. (a) Except as provided by Subsection (b) of
	7913	+	this section, Article 2 of this Act applies beginning with the
	7914	+	2019-2020 school year.
8134	7915		(b) Section 28.006, Education Code, as amended by this Act,
8135	7916		applies beginning with the 2020-2021 school year.
8136		-	(c) Section 28.025, Education Code, as amended by this Act,
8137		-	and Section 28.0256, Education Code, as added by this Act, apply
8138		-	beginning with students enrolled at the 12th grade level during the
8139		-	2021-2022 school year.
8140		-	SECTION 5.002. Except as otherwise provided by this Act,
	7917	+	SECTION 6.002. Except as otherwise provided by this Act,
8141	7918		Section 26.08, Tax Code, as amended by this Act, applies beginning
8142		-	with the 2019 tax year. A school district is required to calculate
8143		-	the district's voter-approval tax rate for the 2019 tax year in the
8144		-	manner provided by Section 26.08, Tax Code, as amended by this Act,
8145		-	regardless of whether the district has already calculated that rate
8146		-	or adopted a tax rate for the 2019 tax year before September 1,
8147		-	2019.
8148		-	SECTION 5.003. As soon as practicable after September 1,
8149		-	2019:
8150		-	(1) the State Board for Educator Certification shall
8151		-	develop the Internet portal required by Section 21.006(g-1),
8152		-	Education Code, as added by this Act; and
8153		-	(2) the Texas Education Agency shall develop the
8154		-	Internet portal required by Section 22.095, Education Code, as
8155		-	added by this Act.
8156		-	SECTION 5.004. The Texas Education Agency shall establish
8157		-	the registry of persons who are not eligible to be employed by a
8158		-	school district, district of innovation, open-enrollment charter
8159		-	school, other charter entity, regional education service center, or
8160		-	shared services arrangement, as required by Section 22.092,
8161		-	Education Code, as added by this Act, as soon as practicable after
8162		-	September 1, 2019, and not later than January 1, 2020.
8163		-	SECTION 5.005. The State Board for Educator Certification
	7919	+	with the 2019 tax year.
	7920	+	SECTION 6.003. Except as otherwise provided by that
	7921	+	article, Article 4 of this Act applies beginning with the 2019 tax
	7922	+	year.
	7923	+	SECTION 6.004. The State Board for Educator Certification
8164	7924		may not issue a new or renew a master teacher certificate issued
8165	7925		under Section 21.0481, 21.0482, 21.0483, or 21.0484, Education
8166	7926		Code, on or after the effective date of this Act.
8167		-	SECTION 5.006. Not later than August 1, 2020, the Texas
8168		-	Education Agency shall submit the initial report required under
8169		-	Section 29.1544, Education Code, as added by this Act.
8170		-	SECTION 5.007. Notwithstanding any provision of the
	7927	+	SECTION 6.005. The commissioner of education shall select
	7928	+	one campus that received an unacceptable rating for the 2017-2018
	7929	+	school year, regardless of the number of consecutive years the
	7930	+	campus has received an unacceptable rating, to submit an
	7931	+	accelerated campus excellence turnaround plan as provided by
	7932	+	Section 39A.105(b), Education Code, as added by this Act, for the
	7933	+	2019-2020 school year. The commissioner may adjust timelines
	7934	+	established under Chapter 39A, Education Code, for the campus
	7935	+	selected by the commissioner under this section for purposes of
	7936	+	developing and implementing the accelerated campus excellence
	7937	+	turnaround plan. A decision by the commissioner under this section
	7938	+	is final and may not be appealed.
	7939	+	SECTION 6.006. Notwithstanding any provision of the
8171	7940		Education Code, for the 2019 tax year, a school district that took
8172	7941		action to comply with publication requirements under Section
8173	7942		44.004, Education Code, before the effective date of this Act may
8174	7943		amend the district's previously published notices to comply with
8175	7944		the changes made to the district's permissible and proposed tax
8176	7945		rates as a result of this Act by posting those changes on the
8177	7946		district's Internet website. A school district that complied with
8178	7947		the law in effect at the time of the district's original publication
8179	7948		may hold the district's scheduled public hearing as originally
8180	7949		published.
8181		-	SECTION 5.008. Not later than December 1, 2020, each school
8182		-	district shall submit to the legislature a report on salary or wage
8183		-	increases provided to district employees under Section 48.051(c),
8184		-	Education Code, as added by this Act, for the 2019-2020 school year.
8185		-	The report must include for each salary or wage increase:
8186		-	(1) the employee's position at the school district;
8187		-	and
8188		-	(2) the amount of the increase.
8189		-	SECTION 5.009. As soon as practicable after the effective
8190		-	date of Section 48.1021, Education Code, as added by this Act, the
8191		-	commissioner of education shall establish and appoint members to
8192		-	the advisory committee required under that section.
8193		-	SECTION 5.010. (a) Notwithstanding any other law, to secure
8194		-	the best value for the state and ensure the best design, operation,
8195		-	and implementation of assessment instruments, the Texas Education
8196		-	Agency may:
8197		-	(1) provide an additional period for all respondents
8198		-	to provide new proposals for the assessment solicitations posted in
8199		-	2019; and
8200		-	(2) extend the current assessment contracts through
8201		-	the end of the state fiscal biennium ending August 31, 2021.
8202		-	(b) This section expires September 1, 2021.
8203		-	SECTION 5.011. (a) The State Board for Educator
8204		-	Certification is required to implement a provision of Article 2A of
8205		-	this Act only if the legislature appropriates money specifically
8206		-	for that purpose. If the legislature does not appropriate money
8207		-	specifically for that purpose, the board may, but is not required
8208		-	to, implement a provision of Article 2A of this Act using other
8209		-	appropriations available for that purpose.
8210		-	(b) The Texas Education Agency is required to implement a
8211		-	provision of Article 2A of this Act only if the legislature
8212		-	appropriates money specifically for that purpose. If the
8213		-	legislature does not appropriate money specifically for that
8214		-	purpose, the agency may, but is not required to, implement a
8215		-	provision of Article 2A of this Act using other appropriations
8216		-	available for that purpose.
8217		-	SECTION 5.012. If any provision of this Act or its
8218		-	application to any person or circumstance is held invalid, the
8219		-	invalidity does not affect other provisions or applications of this
8220		-	Act that can be given effect without the invalid provision or
8221		-	application, and to this end the provisions of this Act are declared
8222		-	to be severable.
8223		-	SECTION 5.013. To the extent of any conflict, this Act
	7950	+	SECTION 6.007. Not later than December 1, 2022, the Texas
	7951	+	Education Agency shall submit the initial report required under
	7952	+	Section 39.0236, Education Code, as added by this Act.
	7953	+	SECTION 6.008. To the extent of any conflict, this Act
8224	7954		prevails over another Act of the 86th Legislature, Regular Session,
8225	7955		2019, regardless of the relative dates of enactment.
8226		-	ARTICLE 6. EFFECTIVE DATE
8227		-	SECTION 6.001. (a) Except as otherwise provided by this
8228		-	section or as otherwise provided by this Act, this Act takes effect
8229		-	September 1, 2019.
8230		-	(b) Section 11.184, Education Code, as added by this Act,
8231		-	takes effect January 1, 2020.
8232		-	(c) Section 47.006, Education Code, as added by this Act,
8233		-	takes effect only if H.B. 1525 or similar legislation of the 86th
8234		-	Legislature, Regular Session, 2019, relating to the administration
8235		-	and collection of sales and use taxes applicable to sales involving
8236		-	marketplace providers is enacted and becomes law.
8237		-	(d) Subject to Subsection (c) of this section, Chapter 47,
8238		-	Education Code, as added by this Act, takes effect January 1, 2020.
8239		-	(e) Sections 48.1021 and 48.1041, Education Code, as added
8240		-	by this Act, take effect immediately if this Act receives a vote of
8241		-	two-thirds of all the members elected to each house, as provided by
8242		-	Section 39, Article III, Texas Constitution. If this Act does not
8243		-	receive the vote necessary for Sections 48.1021 and 48.1041,
8244		-	Education Code, as added by this Act, to have immediate effect,
8245		-	those sections take effect September 1, 2019.
8246		-	(f) Article 2 and Section 5.010 of this Act take effect
8247		-	immediately if this Act receives a vote of two-thirds of all the
8248		-	members elected to each house, as provided by Section 39, Article
8249		-	III, Texas Constitution. If this Act does not receive the vote
8250		-	necessary for immediate effect, Article 2 and Section 5.010 of this
8251		-	Act take effect September 1, 2019.
8252		-	______________________________ ______________________________
8253		-	President of the Senate Speaker of the House
8254		-	I certify that H.B. No. 3 was passed by the House on April 3,
8255		-	2019, by the following vote: Yeas 148, Nays 1, 0 present, not
8256		-	voting; that the House refused to concur in Senate amendments to
8257		-	H.B. No. 3 on May 7, 2019, and requested the appointment of a
8258		-	conference committee to consider the differences between the two
8259		-	houses; that the House adopted the conference committee report on
8260		-	H.B. No. 3 on May 25, 2019, by the following vote: Yeas 139, Nays
8261		-	0, 0 present, not voting; and that the House adopted H.C.R. No. 193
8262		-	authorizing certain corrections in H.B. No. 3 on May 27, 2019, by
8263		-	the following vote: Yeas 149, Nays 0, 1 present, not voting.
8264		-	______________________________
8265		-	Chief Clerk of the House
8266		-	I certify that H.B. No. 3 was passed by the Senate, with
8267		-	amendments, on May 6, 2019, by the following vote: Yeas 26, Nays 2,
8268		-	3 present,
8269		-	not voting; at the request of the House, the Senate
8270		-	appointed a conference committee to consider the differences
8271		-	between the two houses; that the Senate adopted the conference
8272		-	committee report on H.B. No. 3 on May 25, 2019, by the following
8273		-	vote: Yeas 30, Nays 0; and that the Senate adopted H.C.R. No. 193
8274		-	authorizing certain corrections in H.B. No. 3 on May 27, 2019, by
8275		-	the following vote: Yeas 31, Nays 0.
8276		-	______________________________
8277		-	Secretary of the Senate
8278		-	APPROVED: __________________
8279		-	Date
8280		-	__________________
8281		-	Governor
	7956	+	ARTICLE 7. EFFECTIVE DATE
	7957	+	SECTION 7.001. (a) Except as provided by Subsection (b) of
	7958	+	this section or as otherwise provided by this Act, this Act takes
	7959	+	effect September 1, 2019.
	7960	+	(b) Article 2 of this Act takes effect immediately if this
	7961	+	Act receives a vote of two-thirds of all the members elected to each
	7962	+	house, as provided by Section 39, Article III, Texas Constitution.
	7963	+	If this Act does not receive the vote necessary for immediate
	7964	+	effect, Article 2 of this Act takes effect September 1, 2019.
	7965	+	SECTION 7.002. Section 1.037 of this Act takes effect only
	7966	+	if the constitutional amendment proposed by _.J.R. __, 86th
	7967	+	Legislature, Regular Session, 2019, is not approved by the voters.
	7968	+	SECTION 7.003. (a) Except as provided by Subsection (b) of
	7969	+	this section or as otherwise provided by Article 4 of this Act:
	7970	+	(1) Article 4 of this Act takes effect on the date on
	7971	+	which the constitutional amendment proposed by _.J.R. __, 86th
	7972	+	Legislature, Regular Session, 2019, takes effect; and
	7973	+	(2) if that amendment is not approved by the voters,
	7974	+	Article 4 of this Act has no effect.
	7975	+	(b) Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
	7976	+	26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
	7977	+	31.02(a-1), Tax Code, and Sections 49.004(a-1), (b-1), and (c-1),
	7978	+	49.0041, 49.0121, 49.154(a-1), and 49.308(a-1), Education Code, as
	7979	+	added by this Act, take effect immediately if this Act receives a
	7980	+	vote of two-thirds of all the members elected to each house, as
	7981	+	provided by Section 39, Article III, Texas Constitution. If this
	7982	+	Act does not receive the vote necessary for those sections to have
	7983	+	immediate effect, those sections take effect on the 91st day after
	7984	+	the last day of the legislative session.
	7985	+	* * * * *