By: Huberty, VanDeaver, King of Hemphill, H.B. No. 1525
Dutton, González of El Paso, et al.
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 21.3521(a), Education Code, is amended
to read as follows:
(a) Subject to Subsection (b), a school district or
open-enrollment charter school may designate a [certified]
classroom teacher as a master, exemplary, or recognized teacher for
a five-year period based on the results from single year or
multiyear appraisals that comply with Section 21.351 or 21.352.
SECTION 4. Section 28.0062(a), Education Code, is amended
to read as follows:
(a) Each school district and open-enrollment charter school
shall:
(1) provide for the use of a phonics curriculum that
uses systematic direct instruction in kindergarten through third
grade to ensure all students obtain necessary early literacy
skills;
(2) ensure that:
(A) not later than the 2023-2024 [2021-2022]
school year, each classroom teacher in kindergarten or first,
second, or third grade and each principal at a campus with
kindergarten or first, second, or third grade has attended a
teacher literacy achievement academy developed under Section
21.4552; and
(B) each classroom teacher and each principal
initially employed in a grade level or at a campus described by
Paragraph (A) for the 2023-2024 [2021-2022] school year or a
subsequent school year has attended a teacher literacy achievement
academy developed under Section 21.4552 by the end of [before] the
teacher's or principal's first year of placement in that grade level
or campus; and
(3) certify to the agency that the district or school:
(A) prioritizes placement of highly effective
teachers in kindergarten through second grade; and
(B) has integrated reading instruments used to
diagnose reading development and comprehension to support each
student in prekindergarten through third grade.
SECTION 5. Section 29.153, Education Code, is amended by
amending Subsection (d-1) and adding Subsection (d-2) to read as
follows:
(d-1) A district may not receive an exemption under
Subsection (d) unless the district has:
(1) solicited [and considered at a public meeting]
proposals for partnerships in accordance with guidance regarding
soliciting partnerships provided by the agency; and
(2) considered submitted proposals at a public meeting
with public or private entities regarding prekindergarten classes
required under this section [with public or private entities
regarding prekindergarten classes required under this section].
(d-2) A decision of the board of trustees regarding a
partnership described by Subsection (d-1) [this subsection] is
final.
SECTION 6. Section 31.0211(c), Education Code, is amended
to read as follows:
(c) Subject to Subsection (d), funds allotted under this
section may be used to:
(1) purchase:
(A) materials on the list adopted by the
commissioner, as provided by Section 31.0231;
(B) instructional materials, regardless of
whether the instructional materials are on the list adopted under
Section 31.024;
(C) consumable instructional materials,
including workbooks;
(D) instructional materials for use in bilingual
education classes, as provided by Section 31.029;
(E) instructional materials for use in college
preparatory courses under Section 28.014, as provided by Section
31.031;
(F) supplemental instructional materials, as
provided by Section 31.035;
(G) state-developed open education resource
instructional materials, as provided by Subchapter B-1;
(H) instructional materials and technological
equipment under any continuing contracts of the district in effect
on September 1, 2011;
(I) technological equipment necessary to support
the use of materials included on the list adopted by the
commissioner under Section 31.0231 or any instructional materials
purchased with an allotment under this section; and
(J) inventory software or systems for storing,
managing, and accessing instructional materials and analyzing the
usage and effectiveness of the instructional materials; and
(2) pay:
(A) for training educational personnel directly
involved in student learning in the appropriate use of
instructional materials and for providing for access to
technological equipment for instructional use; [and]
(B) the salary and other expenses of an employee
who provides technical support for the use of technological
equipment directly involved in student learning; and
(C) for costs associated with distance learning,
including Wi-Fi, Internet access hotspots, wireless network
service, broadband service, and other services and technological
equipment necessary to facilitate Internet access.
SECTION 7. 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 8. 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 subdivision 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 9. 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 10. Section 45.0021, Education Code, is amended by
amending Subsection (a) and adding Subsections (c), (d), (e), (f),
and (g) to read as follows:
(a) A school district may not levy [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;
(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; and
(C) post the name of the school district on the
agency's Internet website.
(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 reduce the district's entitlement under Chapter 48
by an amount equal to the difference between:
(1) the amount of state and local funding the district
received as a result of adopting a maintenance tax rate in violation
of Subsection (a); and
(2) the amount of state and local funding the district
would have received if the district had not adopted a maintenance
tax rate in violation of Subsection (a).
(f) This section does not prohibit a school district from
using a surplus in maintenance tax revenue to pay the district's
debt service if:
(1) the district's interest and sinking fund tax
revenue is insufficient to pay the district's debt service due to
circumstances beyond the district's control; and
(2) the use of the surplus maintenance tax revenue to
pay the district's debt service is necessary to prevent a default on
the district's debt.
(g) This section may not be construed to prohibit a school
district from:
(1) paying a portion of the district's maintenance tax
revenue into the tax increment fund for a reinvestment zone under
Chapter 311, Tax Code; or
(2) using money disbursed from the tax increment fund
for a reinvestment zone under Chapter 311, Tax Code, in accordance
with the agreement entered into by the district with the governing
body of the municipality or county that designated the zone under
Section 311.013(f) of that code.
SECTION 11. 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 12. Section 48.051, Education Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) A school district employee who received a salary
increase under Subsection (c) from a school district for the
2019-2020 school year is, as long as the employee remains employed
by the same district, entitled to salary that is at least equal to
the salary the employee received for the 2019-2020 school year.
This subsection does not apply if the board of trustees of the
school district at which the employee is employed:
(1) complies with Sections 21.4021, 21.4022, and
21.4032 in reducing the employee's salary; and
(2) has adopted a resolution declaring a financial
exigency for the district under Section 44.011.
SECTION 13. Section 48.104, Education Code, is amended by
adding Subsection (e-1) and amending Subsections (j-1) and (k) 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).
(j-1) In addition to other purposes for which funds
allocated under this section may be used, those funds may also be
used to:
(1) provide child-care services or assistance with
child-care expenses for students at risk of dropping out of school,
as described by Section 29.081(d)(5); [or]
(2) pay the costs associated with services provided
through a life skills program in accordance with Sections
29.085(b)(1) and (3)-(7); or
(3) pay costs for services provided by an
instructional coach to raise student achievement at a campus in
which educationally disadvantaged students are enrolled.
(k) At least 55 percent of the funds allocated under this
section must be used to:
(1) fund supplemental programs and services,
including services provided by an instructional coach, designed to
eliminate any disparity in performance on assessment instruments
administered under Subchapter B, Chapter 39, or disparity in the
rates of high school completion between:
(A) students who are educationally disadvantaged
and students who are not educationally disadvantaged; and
(B) students at risk of dropping out of school,
as defined by Section 29.081, and all other students; or
(2) support a program eligible under Title I of the
Elementary and Secondary Education Act of 1965, as provided by Pub.
L. No. 103-382 and its subsequent amendments, and by federal
regulations implementing that Act.
SECTION 14. Section 48.106, Education Code, is amended by
amending Subsection (a) and adding Subsections (a-1) and (d) 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, or, if applicable, the sum of the basic allotment and the
allotment under Section 48.101 to which the district is entitled,
multiplied by:
(1) 1.1 for a full-time equivalent student in career
and technology education courses not in an approved program of
study;
(2) 1.28 for a full-time equivalent student in levels
one and two career and technology education courses in an approved
program of study, as identified by the agency [a weight of 1.35];
and
(3) 1.47 for a full-time equivalent student in levels
three and four career and technology education courses in an
approved program of study, as identified by the agency.
(a-1) In addition to the amounts under Subsection (a), for
each student in average daily attendance, a district is entitled to
[(2)] $50 for each of the following in which the
student is enrolled:
(1) [(A) two or more advanced career and technology
education classes for a total of three or more credits;
[(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.
(d) The agency shall annually publish a list of career and
technology courses that qualify for an allotment under Subsection
(a), disaggregated by the weight for which the course qualifies.
SECTION 15. Section 48.106(b), Education Code, is amended
by amending Subdivision (1) and adding Subdivision (1-a) to read as
follows:
(1) "Approved [Career and technology education class"
and "]career and technology education program":
(A) means a sequence of career and technology
education courses, including [include] technology applications
courses, authorized by the State Board of Education; and
(B) includes only courses that qualify for high
school credit.
(1-a) "Approved program of study" means a course
sequence that:
(A) provides students with the knowledge and
skills necessary for success in the students' chosen careers; and
(B) is approved by the agency for purposes of the
Strengthening Career and Technical Education for the 21st Century
Act (Pub. L. No. 115-224).
SECTION 16. 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 from a
postsecondary educational institution approved by the Texas Higher
Education Coordinating Board 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 17. Section 48.111, Education Code, is amended to
read as follows:
Sec. 48.111. FAST GROWTH ALLOTMENT. (a) Except as provided
by Subsection (b), a [A] school district [in which the growth in
student enrollment in the district over the preceding three school
years 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 0.35 [0.04] for each enrolled student
equal to the difference, if the difference is greater than zero,
that results from subtracting 250 from the difference between the
number of students enrolled in the district during the school year
immediately preceding the current school year and the number of
students enrolled in the district during the school year six years
preceding the current school year [in average daily attendance].
(a-1) For purposes of Subsection (a), in determining the
number of students enrolled in a school district, the commissioner
shall exclude students enrolled in the district who receive
full-time instruction through the state virtual school network
under Chapter 30A.
(a-2) Notwithstanding Subsection (a), instead of using the
weight of "0.35" in Subsection (a), the agency shall substitute the
following weights:
(1) for the 2021-2022 school year, "0.30"; and
(2) for the 2022-2023 school year, "0.348".
(a-3) Subsection (a-2) and this subsection expire September
1, 2024.
(b) Notwithstanding Subsection (a), the total amount that
may be used to provide allotments under Subsection (a) may not
exceed $320 million. If the total amount of allotments to which
districts are entitled under Subsection (a) for a school year
exceeds the amount permitted under this subsection, the
commissioner shall reduce each district's allotment under this
section in the manner provided by Section 48.266(f).
(b-1) Notwithstanding Subsection (b), the total amount that
may be used to provide allotments under Subsection (a) may not
exceed:
(1) for the 2021-2022 school year, $270 million;
(2) for the 2022-2023 school year, $310 million; and
(3) for the 2023-2024 school year, $315 million.
(b-2) Subsection (b-1) and this subsection expire September
1, 2025.
(c) For the 2021-2022 school year, the agency shall provide
to each school district that received an allotment under this
section for the 2019-2020 school year but is not entitled to an
allotment for the 2021-2022 school year an amount equal to the
amount of the allotment provided to the district under this section
for the 2019-2020 school year.
(c-1) The total amount that may be used to provide funding
under Subsection (c) may not exceed $40 million. If the total amount
of funding to which districts are entitled under Subsection (c) for
a school year exceeds the amount permitted under this subsection,
the commissioner shall reduce each district's amount under
Subsection (c) in the manner provided by Section 48.266(f).
(c-2) The amounts to which school districts are entitled
under Subsection (c) are not subject to the amount limitations
described by Subsections (b) and (b-1).
(c-3) Subsections (c), (c-1), (c-2), and this subsection
expire September 1, 2023.
SECTION 18. Section 48.112, Education Code, is amended by
adding Subsection (j) to read as follows:
(j) The Texas School for the Deaf and the Texas School for
the Blind and Visually Impaired are entitled to an allotment under
this section. If the commissioner determines that assigning point
values under Subsections (e) and (f) to students enrolled in the
Texas School for the Deaf or the Texas School for the Blind and
Visually Impaired is impractical, the commissioner may use the
average point value assigned for those students' home districts for
purposes of calculating the high needs and rural factor.
SECTION 19. 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 20. 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 21. 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 22. 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)(3) [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 23. 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 24. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.280 to read as follows:
Sec. 48.280. ADJUSTMENT FOR CERTAIN DISTRICTS FOR TEACHER
INCENTIVE ALLOTMENT FUNDING. (a) If Section 48.257(b) applies to a
school district and the adjustment provided under that subsection
for the reduction of the district's tier one revenue level is less
than the amount to which the district is entitled under Section
48.112, the commissioner shall make adjustments to the district's
funding to ensure that the district receives the total amount to
which the district is entitled under Section 48.112.
(b) An adjustment to a district's funding under this section
is excluded for purposes of calculating the district's maintenance
and operations revenue under Section 48.277. This subsection
expires September 1, 2025.
SECTION 25. Section 48.302(b), Education Code, is amended
to read as follows:
(b) The agency shall enter into a memorandum of
understanding with the commission for the agency to transfer funds
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.
SECTION 26. 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 27. 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 28. 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 29. 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 30. Section 11.26, Tax Code, is amended by adding
Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
follows:
(a-4) In this section, "maximum compressed rate" means the
maximum compressed rate of a school district as calculated under
Section 48.2551, Education Code.
(a-5) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was a tax year before the 2019 tax
year, the amount of the limitation provided by this section on the
homestead in the 2022 tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2018 tax year by a tax rate equal to the difference between the
school district's tier one maintenance and operations rate for the
2018 tax year and the district's maximum compressed rate for the
2019 tax year;
(2) subtracting the greater of zero or the amount
computed under Subdivision (1) from the amount of tax the district
imposed on the homestead in the 2018 tax year;
(3) adding any tax imposed in the 2019 tax year
attributable to improvements made in the 2018 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2019 tax year and the
district's maximum compressed rate for the 2020 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6) adding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2020 tax year and the
district's maximum compressed rate for the 2021 tax year;
(8) subtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6);
(9) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8);
(10) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(11) subtracting the amount computed under
Subdivision (10) from the amount computed under Subdivision (9);
and
(12) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (11).
(a-6) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2019 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2019 tax year and
the district's maximum compressed rate for the 2020 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2019 tax year;
(3) adding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2020 tax year and the
district's maximum compressed rate for the 2021 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(8) subtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6); and
(9) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8).
(a-7) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2020 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2020 tax year and
the district's maximum compressed rate for the 2021 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2020 tax year;
(3) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3); and
(6) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5).
(a-8) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2021 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2021 tax year and
the district's maximum compressed rate for the 2022 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2021 tax year; and
(3) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2).
(a-9) Notwithstanding the other provisions of this section,
if in the 2023 or a subsequent tax year an individual qualifies for
a limitation on tax increases provided by this section on the
individual's residence homestead, the amount of the limitation
provided by this section on the homestead is equal to the amount
computed by:
(1) multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; and
(3) adding any tax imposed in the current tax year
attributable to improvements made in the preceding tax year as
provided by Subsection (b) to the amount computed under Subdivision
(2).
SECTION 31. (a) The following provisions of the Education
Code are repealed:
(1) Sections 12.133(d), (d-1), and (e);
(2) Section 48.0051(a-1); and
(3) 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 32. 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 33. Section 11.26, Tax Code, as amended by this Act,
applies only to ad valorem taxes imposed for a tax year beginning on
or after January 1, 2022.
SECTION 34. (a) Except as otherwise provided by this
section, this Act takes effect September 1, 2021.
(b) Section 31.0211(c), Education Code, as amended by this
Act, takes effect immediately if this Act receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, Section
31.0211(c), Education Code, as amended by this Act, takes effect
September 1, 2021.
(c) Section 11.26, Tax Code, as amended by this Act, takes
effect January 1, 2022, but only if the constitutional amendment
proposed by the 87th Legislature, Regular Session, 2021,
authorizing the legislature to provide for the reduction of the
amount of a limitation on the total amount of ad valorem taxes that
may be imposed for general elementary and secondary public school
purposes on the residence homestead of a person who is elderly or
disabled to reflect any statutory reduction from the preceding tax
year in the maximum compressed rate of the maintenance and
operations taxes imposed for those purposes on the homestead is
approved by the voters. If that amendment is not approved by the
voters, Section 11.26, Tax Code, as amended by this Act, has no
effect.