87R12935 MEW/KJE/BDP-F
By: Huberty H.B. No. 1525
A BILL TO BE ENTITLED
AN ACT
relating to the public school finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.106, Education Code, is amended by
adding Subsections (a-5) and (a-6) to read as follows:
(a-5) To ensure compliance with the requirements for the
maintenance of state financial support for special education under
20 U.S.C. Section 1412(a)(18), in determining the funding for an
open-enrollment charter school under Subsection (a) for the Section
48.102 allotment, the commissioner shall:
(1) if necessary, increase the amount of that
allotment to an amount equal to the amount the charter holder was
entitled to receive for the charter school under the allotment
under former Section 42.151, Education Code, for the 2018-2019
school year; and
(2) reduce the amount of the allotment the charter
holder is entitled to receive for the charter school under
Subsection (a-2) by the amount of any increase provided for the
charter school under Subdivision (1).
(a-6) Subsection (a-5) and this subsection expire September
1, 2025.
SECTION 2. Sections 12.133(b), (b-1), and (c), Education
Code, are amended to read as follows:
(b) Each school year, [using state funds received by the
charter holder for that purpose under Subsection (d),] a charter
holder that participated in the program under Chapter 1579,
Insurance Code, for the 2005-2006 school year shall provide
employees of the charter holder, other than administrators,
compensation in the form of annual salaries, incentives, or other
compensation determined appropriate by the charter holder that
results in an average compensation increase for classroom teachers,
full-time librarians, full-time school counselors, and full-time
school nurses who are employed by the charter holder and who would
be entitled to a minimum salary under Section 21.402 if employed by
a school district, in an amount at least equal to $2,500.
(b-1) A [Using state funds received by the charter holder
for that purpose under Subsection (d-1), a] charter holder that
participated in the program under Chapter 1579, Insurance Code, for
the 2005-2006 school year shall provide employees of the charter
holder, other than administrators, compensation in the form of
annual salaries, incentives, or other compensation determined
appropriate by the charter holder that results in average
compensation increases as follows:
(1) for full-time employees other than employees who
would be entitled to a minimum salary under Section 21.402 if
employed by a school district, an average increase at least equal to
$500; and
(2) for part-time employees, an average increase at
least equal to $250.
(c) Each school year, [using state funds received by the
charter holder for that purpose under Subsection (e),] a charter
holder that did not participate in the program under Chapter 1579,
Insurance Code, for the 2005-2006 school year shall provide
employees of the charter holder, other than administrators,
compensation in the form of annual salaries, incentives, or other
compensation determined appropriate by the charter holder that
results in an average compensation increase for classroom teachers,
full-time librarians, full-time school counselors, and full-time
school nurses who are employed by the charter holder and who would
be entitled to a minimum salary under Section 21.402 if employed by
a school district, in an amount at least equal to $2,000.
SECTION 3. Section 25.001(h), Education Code, is amended to
read as follows:
(h) In addition to the penalty provided by Section 37.10,
Penal Code, a person who knowingly falsifies information on a form
required for enrollment of a student in a school district is liable
to the district if the student is not eligible for enrollment in the
district but is enrolled on the basis of the false information. The
person is liable, for the period during which the ineligible
student is enrolled, for [the greater of:
[(1) the maximum tuition fee the district may charge
under Section 25.038; or
[(2)] the amount the district has budgeted for each
student as maintenance and operating expenses.
SECTION 4. Section 37.108(b-1), Education Code, is amended
to read as follows:
(b-1) In a school district's safety and security audit
required under Subsection (b), the district must certify that the
district used the funds provided to the district through the school
safety allotment under Section 48.115 [42.168] only for the
purposes provided by that section.
SECTION 5. Section 39.0261, Education Code, is amended by
adding Subsection (a-1) and amending Subsection (b) to read as
follows:
(a-1) Notwithstanding Subsection (a)(3), the commissioner
by rule may allow a student to take at state cost an assessment
instrument described by that subsection if circumstances existed
that prevented the student from taking the assessment instrument
before the student graduated from high school.
(b) The agency shall:
(1) select and approve vendors of the specific
assessment instruments administered under this section and
negotiate with each approved vendor a price for each assessment
instrument; and
(2) provide reimbursement to a school district in the
amount negotiated under Subdivision (1) for [all fees associated
with] the administration of the assessment instrument from funds
appropriated for that purpose.
SECTION 6. Section 39.053(g-4), Education Code, is amended
to read as follows:
(g-4) For purposes of the computation of dropout and
completion rates such as high school graduation rates under
Subsection (c)(1)(B)(ix), the commissioner shall exclude a student
who was reported as having dropped out of school under Section
48.009(b-4) [42.006(a-9)], and the student may not be considered to
have dropped out from the school district or campus in which the
student was last enrolled.
SECTION 7. Section 45.0021, Education Code, is amended by
amending Subsection (a) and adding Subsections (c), (d), and (e) to
read as follows:
(a) A school district may not impose [increase the rate of]
the district's maintenance taxes described by Section 45.002 at a
rate intended to create a surplus in maintenance tax revenue for the
purpose of paying the district's debt service.
(c) The agency shall:
(1) develop a method to identify school districts that
may have adopted a maintenance tax rate in violation of Subsection
(a), which must include a review of data over multiple years;
(2) for each school district identified under the
method developed under Subdivision (1), investigate as necessary to
determine whether the district has adopted a maintenance tax rate
in violation of Subsection (a); and
(3) if the agency determines that a school district
has adopted a maintenance tax rate in violation of Subsection (a):
(A) order the district to comply with Subsection
(a) not later than three years after the date of the order; and
(B) assist the district in developing a
corrective action plan that, to the extent feasible, does not
result in a net increase in the district's total tax rate.
(d) The implementation of a corrective action plan under
Subsection (c)(3)(B) does not prohibit a school district from
increasing the district's total tax rate as necessary to achieve
other legal purposes.
(e) If a school district fails to take action under a
corrective action plan developed under Subsection (c)(3)(B), the
commissioner may impose on the district any interventions or
sanctions under Chapter 39A the commissioner deems appropriate.
Section 39A.003(c)(5) does not apply to a conservator or management
team appointed for a school district under this subsection.
SECTION 8. Section 48.009, Education Code, is amended by
amending Subsection (b) and adding Subsection (b-4) to read as
follows:
(b) The commissioner by rule shall require each school
district and open-enrollment charter school to report through the
Public Education Information Management System information
regarding:
(1) the number of students enrolled in the district or
school who are identified as having dyslexia;
(2) the availability of school counselors, including
the number of full-time equivalent school counselors, at each
campus;
(3) the availability of expanded learning
opportunities as described by Section 33.252 at each campus;
(4) the total number of students, other than students
described by Subdivision (5), enrolled in the district or school
with whom the district or school, as applicable, used intervention
strategies, as that term is defined by Section 26.004, at any time
during the year for which the report is made; [and]
(5) the total number of students enrolled in the
district or school to whom the district or school provided aids,
accommodations, or services under Section 504, Rehabilitation Act
of 1973 (29 U.S.C. Section 794), at any time during the year for
which the report is made;
(6) disaggregated by campus and grade, the number of:
(A) children who are required to attend school
under Section 25.085, are not exempted under Section 25.086, and
fail to attend school without excuse for 10 or more days or parts of
days within a six-month period in the same school year;
(B) students for whom the district initiates a
truancy prevention measure under Section 25.0915(a-4); and
(C) parents of students against whom an
attendance officer or other appropriate school official has filed a
complaint under Section 25.093; and
(7) the number of students who are enrolled in a high
school equivalency program, a dropout recovery school, or an adult
education program provided under a high school diploma and industry
certification charter school program provided by the district or
school and who:
(A) are at least 18 years of age and under 26
years of age;
(B) have not previously been reported to the
agency as dropouts; and
(C) enroll in the program at the district or
school after not attending school for a period of at least nine
months.
(b-4) A student reported under Subsection (b)(7) as having
enrolled in a high school equivalency program, a dropout recovery
school, or an adult education program provided under a high school
diploma and industry certification charter school program must be
reported through the Public Education Information Management
System as having previously dropped out of school.
SECTION 9. Section 48.101(a), Education Code, is amended to
read as follows:
(a) Small and mid-sized districts are entitled to an annual
allotment in accordance with this section. In this section:
(1) "AA" is the district's annual allotment per
student in average daily attendance;
(2) "ADA" is the number of students in average daily
attendance determined [for which the district is entitled to an
allotment] under Section 48.005 [48.051]; and
(3) "BA" is the basic allotment determined under
Section 48.051.
SECTION 10. Section 48.104, Education Code, is amended by
adding Subsection (e-1) to read as follows:
(e-1) For each student who is a homeless child or youth as
defined by 42 U.S.C. Section 11434a, a school district is entitled
to an annual allotment equal to the basic allotment multiplied by
the highest weight provided under Subsection (d).
SECTION 11. Section 48.106, Education Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades 7 through 12, a district is entitled to:
(1) an annual allotment equal to the basic allotment
multiplied by a weight of 1.35; and
(2) $50 if [for each of the following in which] the
student is enrolled in[:
[(A)] two or more advanced career and technology
education classes for a total of three or more credits.
(a-1) In addition to the amounts under Subsection (a), a
district is entitled to $50 for each student in average daily
attendance enrolled at:
(1) [;
[(B)] a campus designated as a P-TECH school under
Section 29.556; or
(2) [(C)] a campus that is a member of the New Tech
Network and that focuses on project-based learning and work-based
education.
SECTION 12. Section 48.106(b)(1), Education Code, is
amended to read as follows:
(1) "Career and technology education class" and
"career and technology education program" include:
(A) technology applications courses; and
(B) only courses or programs designed for the
high school level.
SECTION 13. Section 48.110(f), Education Code, is amended
to read as follows:
(f) For purposes of this section, an annual graduate
demonstrates:
(1) college readiness if the annual graduate:
(A) both:
(i) achieves college readiness standards
used for accountability purposes under Chapter 39 on the ACT, the
SAT, or an assessment instrument designated by the Texas Higher
Education Coordinating Board under Section 51.334; and
(ii) [(B)] during a time period established
by commissioner rule, enrolls at a postsecondary educational
institution; or
(B) earns an associate degree while attending
high school or during a time period established by commissioner
rule;
(2) career readiness if the annual graduate:
(A) achieves college readiness standards used
for accountability purposes under Chapter 39 on the ACT, the SAT, or
an assessment instrument designated by the Texas Higher Education
Coordinating Board under Section 51.334; and
(B) during a time period established by
commissioner rule, earns an industry-accepted certificate; and
(3) military readiness if the annual graduate:
(A) achieves a passing score set by the
applicable military branch on the Armed Services Vocational
Aptitude Battery; and
(B) during a time period established by
commissioner rule, enlists in the armed forces of the United
States.
SECTION 14. Section 48.111, Education Code, is amended to
read as follows:
Sec. 48.111. FAST GROWTH ALLOTMENT. (a) A school district
in which the growth in student enrollment in the district over the
[preceding] three school years preceding the current school year is
in the top quartile of student enrollment growth in school
districts in the state for that period, as determined by the
commissioner, is entitled to an annual allotment equal to the basic
allotment multiplied by the weight assigned to the district's
growth category under Subsection (b) [0.04] for each student in
average daily attendance.
(b) The agency shall identify each school district that
qualifies for an allotment under this section and rank those
districts, from fastest to least fastest growth, based on student
enrollment growth, during the period described by Subsection (a).
Based on the rankings determined under this section, the agency
shall divide the districts into four growth categories according to
relative student enrollment growth. Each growth category must be of
approximately equal student enrollments. If, based on student
enrollment, a district is between two growth categories, the agency
shall assign the district to the faster growth category. The weight
for each growth category is assigned as follows:
(1) 0.064 for the fastest growth category;
(2) 0.048 for the second fastest growth category;
(3) 0.032 for the third fastest growth category; and
(4) 0.016 for the least fastest growth category.
SECTION 15. Section 42.168, Education Code, as added by
Chapter 464 (S.B. 11), Acts of the 86th Legislature, Regular
Session, 2019, is transferred to Subchapter C, Chapter 48,
Education Code, redesignated as Section 48.115, Education Code, and
amended to read as follows:
Sec. 48.115 [42.168]. SCHOOL SAFETY ALLOTMENT. (a) From
funds appropriated for that purpose, the commissioner shall provide
to a school district an annual allotment in the amount provided by
appropriation for each student in average daily attendance.
(b) Funds allocated under this section must be used to
improve school safety and security, including costs associated
with:
(1) securing school facilities, including:
(A) improvements to school infrastructure;
(B) the use or installation of physical barriers;
and
(C) the purchase and maintenance of:
(i) security cameras or other security
equipment; and
(ii) technology, including communications
systems or devices, that facilitates communication and information
sharing between students, school personnel, and first responders in
an emergency;
(2) providing security for the district, including:
(A) employing school district peace officers,
private security officers, and school marshals; and
(B) collaborating with local law enforcement
agencies, such as entering into a memorandum of understanding for
the assignment of school resource officers to schools in the
district;
(3) school safety and security training and planning,
including:
(A) active shooter and emergency response
training;
(B) prevention and treatment programs relating
to addressing adverse childhood experiences; and
(C) the prevention, identification, and
management of emergencies and threats, including:
(i) providing mental health personnel and
support;
(ii) providing behavioral health services;
and
(iii) establishing threat reporting
systems; and
(4) providing programs related to suicide prevention,
intervention, and postvention.
(c) A school district may use funds allocated under this
section for equipment or software that is used for a school safety
and security purpose and an instructional purpose, provided that
the instructional use does not compromise the safety and security
purpose of the equipment or software.
[(d) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotments to
which the district is to receive as provided by appropriation,
against the total amount required under Section 41.093 for the
district to purchase attendance credits.
[(e) The commissioner may adopt rules to implement this
section.]
SECTION 16. Section 48.2551, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsections (d-1) and
(d-2) to read as follows:
(a) In this section:
(1) "DPV" is the taxable value of property in the
school district, as determined by the agency by rule, using locally
determined property values adjusted in accordance with Section
403.302(d), Government Code [has the meaning assigned by Section
48.256];
(2) "E" is the expiration of the exclusion of
appraised property value for the preceding tax year that is
recognized as taxable property value for the current tax year,
which is the sum of the following:
(A) property value that is no longer subject to a
limitation on appraised value under Chapter 313, Tax Code; and
(B) property value under Section 311.013(n), Tax
Code, that is no longer excluded from the calculation of "DPV" from
the preceding year because of refinancing or renewal after
September 1, 2019;
(3) "MCR" is the district's maximum compressed rate,
which is the tax rate for the current tax year per $100 of valuation
of taxable property at which the district must levy a maintenance
and operations tax to receive the full amount of the tier one
allotment to which the district is entitled under this chapter;
(4) "PYDPV" is the district's value of "DPV" for the
preceding tax year; and
(5) "PYMCR" is the district's value of "MCR" for the
preceding tax year.
(c) Notwithstanding Subsection (b), for a district to which
Section 48.2552(b) applies, the district's maximum compressed rate
is the value calculated in accordance with Section 48.2552(b) [for
"MCR" under Subsection (b)(1)(B)].
(d-1) Local appraisal districts, school districts, and the
comptroller shall provide any information necessary to the agency
to implement this section.
(d-2) A school district may appeal to the commissioner the
district's taxable property value as determined by the agency under
this section. A decision by the commissioner is final and may not be
appealed.
SECTION 17. Section 48.2552(b), Education Code, is amended
to read as follows:
(b) If a school district's [district has a] maximum
compressed rate as calculated under Section 48.2551(b) would be
[that is] less than 90 percent of another school district's maximum
compressed rate, the district's maximum compressed rate is the
value at which the district's maximum compressed rate would be
equal to 90 percent of the other district's maximum compressed rate
[calculated under Section 48.2551(c) until the agency determines
that the difference between the district's and another district's
maximum compressed rates is not more than 10 percent].
SECTION 18. Section 48.257(c), Education Code, is amended
to read as follows:
(c) For purposes of Subsection (a), state aid to which a
district is entitled under this chapter [that is not described by
Section 48.266(a)(1), (2), or (3)] may offset the amount by which a
district must reduce the district's [tier one] revenue level under
this section [Subsection (a)]. Any amount of state aid used as an
offset under this subsection shall reduce the amount of state aid to
which the district is entitled.
SECTION 19. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2721 to read as follows:
Sec. 48.2721. RECOVERY OF FUNDS FROM EXCESSIVE TAXATION.
The commissioner shall reduce state aid or adjust the limit on local
revenue under Section 48.257 in an amount equal to the amount of
revenue generated by a school district's tax effort that is not in
compliance with Section 45.003 or this chapter.
SECTION 20. Subchapter G, Chapter 48, Education Code, is
amended by adding Section 48.303 to read as follows:
Sec. 48.303. ADDITIONAL STATE AID FOR REGIONAL EDUCATION
SERVICE CENTER STAFF SALARY INCREASES. (a) A regional education
service center is entitled to state aid in an amount equal to the
sum of:
(1) the product of $500 multiplied by the number of
full-time center employees, other than administrators or classroom
teachers, full-time librarians, full-time school counselors
certified under Subchapter B, Chapter 21, or full-time school
nurses; and
(2) the product of $250 multiplied by the number of
part-time center employees, other than administrators or teachers,
librarians, school counselors certified under Subchapter B,
Chapter 21, or school nurses.
(b) A determination by the commissioner under Subsection
(a) is final and may not be appealed.
SECTION 21. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0041 to read as follows:
Sec. 49.0041. LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT
AFTER REVIEW NOTIFICATION. If the commissioner determines that a
school district has a local revenue level in excess of entitlement
after the date the commissioner sends notification for the school
year under Section 49.004(a), the commissioner shall include the
amount of the district's local revenue level that exceeded the
level established under Section 48.257 for that school year in the
annual review for the following school year of the district's local
revenue levels under Section 49.004(a).
SECTION 22. Section 49.054(b), Education Code, is amended
to read as follows:
(b) A consolidated [Except as provided by Subsection (c), a]
district under this subchapter [receiving incentive aid payments
under this section] is [not] entitled to incentive aid under
Subchapter G, Chapter 13.
SECTION 23. Section 48.302, Education Code, is transferred
to Subchapter J, Chapter 301, Labor Code, redesignated as Section
301.172, Labor Code, and amended to read as follows:
Sec. 301.172 [48.302]. SUBSIDY FOR HIGH SCHOOL EQUIVALENCY
EXAMINATION FOR CERTAIN INDIVIDUALS. (a) From funds appropriated
for this purpose, the commission [In this section, "commission"
means the Texas Workforce Commission.
[(b) The agency] shall [enter into a memorandum of
understanding with the commission for the agency to transfer to the
commission funds specifically appropriated to the agency for the
commission to] provide to an individual who is 21 years of age or
older a subsidy in an amount equal to the cost of taking one high
school equivalency examination administered under Section 7.111,
Education Code.
(b) [(c)] The commission shall adopt rules to implement the
subsidy program described by Subsection (a) [(b)], including rules
regarding eligibility requirements.
SECTION 24. Section 822.201(b), Government Code, is amended
to read as follows:
(b) "Salary and wages" as used in Subsection (a) means:
(1) normal periodic payments of money for service the
right to which accrues on a regular basis in proportion to the
service performed;
(2) amounts by which the member's salary is reduced
under a salary reduction agreement authorized by Chapter 610;
(3) amounts that would otherwise qualify as salary and
wages under Subdivision (1) but are not received directly by the
member pursuant to a good faith, voluntary written salary reduction
agreement in order to finance payments to a deferred compensation
or tax sheltered annuity program specifically authorized by state
law or to finance benefit options under a cafeteria plan qualifying
under Section 125 of the Internal Revenue Code of 1986, if:
(A) the program or benefit options are made
available to all employees of the employer; and
(B) the benefit options in the cafeteria plan are
limited to one or more options that provide deferred compensation,
group health and disability insurance, group term life insurance,
dependent care assistance programs, or group legal services plans;
(4) performance pay awarded to an employee by a school
district as part of a total compensation plan approved by the board
of trustees of the district and meeting the requirements of
Subsection (e);
(5) the benefit replacement pay a person earns under
Subchapter H, Chapter 659, except as provided by Subsection (c);
(6) stipends paid to teachers in accordance with
former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
(7) amounts by which the member's salary is reduced or
that are deducted from the member's salary as authorized by
Subchapter J, Chapter 659;
(8) a merit salary increase made under Section 51.962,
Education Code;
(9) amounts received under the relevant parts of the
educator excellence awards program under Subchapter O, Chapter 21,
Education Code, or a mentoring program under Section 21.458,
Education Code, that authorize compensation for service;
(10) salary amounts designated as health care
supplementation by an employee under Subchapter D, Chapter 22,
Education Code; [and]
(11) to the extent required by Sections 3401(h) and
414(u)(12), Internal Revenue Code of 1986, differential wage
payments received by an individual from an employer on or after
January 1, 2009, while the individual is performing qualified
military service as defined by Section 414(u), Internal Revenue
Code of 1986; and
(12) increased compensation paid to a teacher by a
school district using funds received by the district under the
teacher incentive allotment under Section 48.112, Education Code.
SECTION 25. (a) The following provisions of the Education
Code are repealed:
(1) Sections 12.133(d), (d-1), and (e);
(2) Section 25.038;
(3) Sections 25.039(b) and (c);
(4) Section 48.154; and
(5) Sections 49.054(a) and (c).
(b) The following provisions, which amended Section 42.006,
Education Code, are repealed:
(1) Section 2, Chapter 1036 (H.B. 548), Acts of the
86th Legislature, Regular Session, 2019; and
(2) Section 8, Chapter 1060 (H.B. 1051), Acts of the
86th Legislature, Regular Session, 2019.
SECTION 26. To the extent of any conflict, this Act prevails
over another Act of the 87th Legislature, Regular Session, 2021,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 27. This Act takes effect September 1, 2021.