Texas 2021 - 87th Regular

Texas House Bill HB3837 Compare Versions

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

Old	New	Differences
1	1	87R12935 MEW/KJE/BDP-F
2	2	By: Huberty H.B. No. 3837
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the public school finance system.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 12.106, Education Code, is amended by
10	10	adding Subsections (a-5) and (a-6) to read as follows:
11	11	(a-5) To ensure compliance with the requirements for the
12	12	maintenance of state financial support for special education under
13	13	20 U.S.C. Section 1412(a)(18), in determining the funding for an
14	14	open-enrollment charter school under Subsection (a) for the Section
15	15	48.102 allotment, the commissioner shall:
16	16	(1) if necessary, increase the amount of that
17	17	allotment to an amount equal to the amount the charter holder was
18	18	entitled to receive for the charter school under the allotment
19	19	under former Section 42.151, Education Code, for the 2018-2019
20	20	school year; and
21	21	(2) reduce the amount of the allotment the charter
22	22	holder is entitled to receive for the charter school under
23	23	Subsection (a-2) by the amount of any increase provided for the
24	24	charter school under Subdivision (1).
25	25	(a-6) Subsection (a-5) and this subsection expire September
26	26	1, 2025.
27	27	SECTION 2. Sections 12.133(b), (b-1), and (c), Education
28	28	Code, are amended to read as follows:
29	29	(b) Each school year, [using state funds received by the
30	30	charter holder for that purpose under Subsection (d),] a charter
31	31	holder that participated in the program under Chapter 1579,
32	32	Insurance Code, for the 2005-2006 school year shall provide
33	33	employees of the charter holder, other than administrators,
34	34	compensation in the form of annual salaries, incentives, or other
35	35	compensation determined appropriate by the charter holder that
36	36	results in an average compensation increase for classroom teachers,
37	37	full-time librarians, full-time school counselors, and full-time
38	38	school nurses who are employed by the charter holder and who would
39	39	be entitled to a minimum salary under Section 21.402 if employed by
40	40	a school district, in an amount at least equal to $2,500.
41	41	(b-1) A [Using state funds received by the charter holder
42	42	for that purpose under Subsection (d-1), a] charter holder that
43	43	participated in the program under Chapter 1579, Insurance Code, for
44	44	the 2005-2006 school year shall provide employees of the charter
45	45	holder, other than administrators, compensation in the form of
46	46	annual salaries, incentives, or other compensation determined
47	47	appropriate by the charter holder that results in average
48	48	compensation increases as follows:
49	49	(1) for full-time employees other than employees who
50	50	would be entitled to a minimum salary under Section 21.402 if
51	51	employed by a school district, an average increase at least equal to
52	52	$500; and
53	53	(2) for part-time employees, an average increase at
54	54	least equal to $250.
55	55	(c) Each school year, [using state funds received by the
56	56	charter holder for that purpose under Subsection (e),] a charter
57	57	holder that did not participate in the program under Chapter 1579,
58	58	Insurance Code, for the 2005-2006 school year shall provide
59	59	employees of the charter holder, other than administrators,
60	60	compensation in the form of annual salaries, incentives, or other
61	61	compensation determined appropriate by the charter holder that
62	62	results in an average compensation increase for classroom teachers,
63	63	full-time librarians, full-time school counselors, and full-time
64	64	school nurses who are employed by the charter holder and who would
65	65	be entitled to a minimum salary under Section 21.402 if employed by
66	66	a school district, in an amount at least equal to $2,000.
67	67	SECTION 3. Section 25.001(h), Education Code, is amended to
68	68	read as follows:
69	69	(h) In addition to the penalty provided by Section 37.10,
70	70	Penal Code, a person who knowingly falsifies information on a form
71	71	required for enrollment of a student in a school district is liable
72	72	to the district if the student is not eligible for enrollment in the
73	73	district but is enrolled on the basis of the false information. The
74	74	person is liable, for the period during which the ineligible
75	75	student is enrolled, for [the greater of:
76	76	[(1) the maximum tuition fee the district may charge
77	77	under Section 25.038; or
78	78	[(2)] the amount the district has budgeted for each
79	79	student as maintenance and operating expenses.
80	80	SECTION 4. Section 37.108(b-1), Education Code, is amended
81	81	to read as follows:
82	82	(b-1) In a school district's safety and security audit
83	83	required under Subsection (b), the district must certify that the
84	84	district used the funds provided to the district through the school
85	85	safety allotment under Section 48.115 [42.168] only for the
86	86	purposes provided by that section.
87	87	SECTION 5. Section 39.0261, Education Code, is amended by
88	88	adding Subsection (a-1) and amending Subsection (b) to read as
89	89	follows:
90	90	(a-1) Notwithstanding Subsection (a)(3), the commissioner
91	91	by rule may allow a student to take at state cost an assessment
92	92	instrument described by that subsection if circumstances existed
93	93	that prevented the student from taking the assessment instrument
94	94	before the student graduated from high school.
95	95	(b) The agency shall:
96	96	(1) select and approve vendors of the specific
97	97	assessment instruments administered under this section and
98	98	negotiate with each approved vendor a price for each assessment
99	99	instrument; and
100	100	(2) provide reimbursement to a school district in the
101	101	amount negotiated under Subdivision (1) for [all fees associated
102	102	with] the administration of the assessment instrument from funds
103	103	appropriated for that purpose.
104	104	SECTION 6. Section 39.053(g-4), Education Code, is amended
105	105	to read as follows:
106	106	(g-4) For purposes of the computation of dropout and
107	107	completion rates such as high school graduation rates under
108	108	Subsection (c)(1)(B)(ix), the commissioner shall exclude a student
109	109	who was reported as having dropped out of school under Section
110	110	48.009(b-4) [42.006(a-9)], and the student may not be considered to
111	111	have dropped out from the school district or campus in which the
112	112	student was last enrolled.
113	113	SECTION 7. Section 45.0021, Education Code, is amended by
114	114	amending Subsection (a) and adding Subsections (c), (d), and (e) to
115	115	read as follows:
116	116	(a) A school district may not impose [increase the rate of]
117	117	the district's maintenance taxes described by Section 45.002 at a
118	118	rate intended to create a surplus in maintenance tax revenue for the
119	119	purpose of paying the district's debt service.
120	120	(c) The agency shall:
121	121	(1) develop a method to identify school districts that
122	122	may have adopted a maintenance tax rate in violation of Subsection
123	123	(a), which must include a review of data over multiple years;
124	124	(2) for each school district identified under the
125	125	method developed under Subdivision (1), investigate as necessary to
126	126	determine whether the district has adopted a maintenance tax rate
127	127	in violation of Subsection (a); and
128	128	(3) if the agency determines that a school district
129	129	has adopted a maintenance tax rate in violation of Subsection (a):
130	130	(A) order the district to comply with Subsection
131	131	(a) not later than three years after the date of the order; and
132	132	(B) assist the district in developing a
133	133	corrective action plan that, to the extent feasible, does not
134	134	result in a net increase in the district's total tax rate.
135	135	(d) The implementation of a corrective action plan under
136	136	Subsection (c)(3)(B) does not prohibit a school district from
137	137	increasing the district's total tax rate as necessary to achieve
138	138	other legal purposes.
139	139	(e) If a school district fails to take action under a
140	140	corrective action plan developed under Subsection (c)(3)(B), the
141	141	commissioner may impose on the district any interventions or
142	142	sanctions under Chapter 39A the commissioner deems appropriate.
143	143	Section 39A.003(c)(5) does not apply to a conservator or management
144	144	team appointed for a school district under this subsection.
145	145	SECTION 8. Section 48.009, Education Code, is amended by
146	146	amending Subsection (b) and adding Subsection (b-4) to read as
147	147	follows:
148	148	(b) The commissioner by rule shall require each school
149	149	district and open-enrollment charter school to report through the
150	150	Public Education Information Management System information
151	151	regarding:
152	152	(1) the number of students enrolled in the district or
153	153	school who are identified as having dyslexia;
154	154	(2) the availability of school counselors, including
155	155	the number of full-time equivalent school counselors, at each
156	156	campus;
157	157	(3) the availability of expanded learning
158	158	opportunities as described by Section 33.252 at each campus;
159	159	(4) the total number of students, other than students
160	160	described by Subdivision (5), enrolled in the district or school
161	161	with whom the district or school, as applicable, used intervention
162	162	strategies, as that term is defined by Section 26.004, at any time
163	163	during the year for which the report is made; [and]
164	164	(5) the total number of students enrolled in the
165	165	district or school to whom the district or school provided aids,
166	166	accommodations, or services under Section 504, Rehabilitation Act
167	167	of 1973 (29 U.S.C. Section 794), at any time during the year for
168	168	which the report is made;
169	169	(6) disaggregated by campus and grade, the number of:
170	170	(A) children who are required to attend school
171	171	under Section 25.085, are not exempted under Section 25.086, and
172	172	fail to attend school without excuse for 10 or more days or parts of
173	173	days within a six-month period in the same school year;
174	174	(B) students for whom the district initiates a
175	175	truancy prevention measure under Section 25.0915(a-4); and
176	176	(C) parents of students against whom an
177	177	attendance officer or other appropriate school official has filed a
178	178	complaint under Section 25.093; and
179	179	(7) the number of students who are enrolled in a high
180	180	school equivalency program, a dropout recovery school, or an adult
181	181	education program provided under a high school diploma and industry
182	182	certification charter school program provided by the district or
183	183	school and who:
184	184	(A) are at least 18 years of age and under 26
185	185	years of age;
186	186	(B) have not previously been reported to the
187	187	agency as dropouts; and
188	188	(C) enroll in the program at the district or
189	189	school after not attending school for a period of at least nine
190	190	months.
191	191	(b-4) A student reported under Subsection (b)(7) as having
192	192	enrolled in a high school equivalency program, a dropout recovery
193	193	school, or an adult education program provided under a high school
194	194	diploma and industry certification charter school program must be
195	195	reported through the Public Education Information Management
196	196	System as having previously dropped out of school.
197	197	SECTION 9. Section 48.101(a), Education Code, is amended to
198	198	read as follows:
199	199	(a) Small and mid-sized districts are entitled to an annual
200	200	allotment in accordance with this section. In this section:
201	201	(1) "AA" is the district's annual allotment per
202	202	student in average daily attendance;
203	203	(2) "ADA" is the number of students in average daily
204	204	attendance determined [for which the district is entitled to an
205	205	allotment] under Section 48.005 [48.051]; and
206	206	(3) "BA" is the basic allotment determined under
207	207	Section 48.051.
208	208	SECTION 10. Section 48.104, Education Code, is amended by
209	209	adding Subsection (e-1) to read as follows:
210	210	(e-1) For each student who is a homeless child or youth as
211	211	defined by 42 U.S.C. Section 11434a, a school district is entitled
212	212	to an annual allotment equal to the basic allotment multiplied by
213	213	the highest weight provided under Subsection (d).
214	214	SECTION 11. Section 48.106, Education Code, is amended by
215	215	amending Subsection (a) and adding Subsection (a-1) to read as
216	216	follows:
217	217	(a) For each full-time equivalent student in average daily
218	218	attendance in an approved career and technology education program
219	219	in grades 7 through 12, a district is entitled to:
220	220	(1) an annual allotment equal to the basic allotment
221	221	multiplied by a weight of 1.35; and
222	222	(2) $50 if [for each of the following in which] the
223	223	student is enrolled in[:
224	224	[(A)] two or more advanced career and technology
225	225	education classes for a total of three or more credits.
226	226	(a-1) In addition to the amounts under Subsection (a), a
227	227	district is entitled to $50 for each student in average daily
228	228	attendance enrolled at:
229	229	(1) [;
230	230	[(B)] a campus designated as a P-TECH school under
231	231	Section 29.556; or
232	232	(2) [(C)] a campus that is a member of the New Tech
233	233	Network and that focuses on project-based learning and work-based
234	234	education.
235	235	SECTION 12. Section 48.106(b)(1), Education Code, is
236	236	amended to read as follows:
237	237	(1) "Career and technology education class" and
238	238	"career and technology education program" include:
239	239	(A) technology applications courses; and
240	240	(B) only courses or programs designed for the
241	241	high school level.
242	242	SECTION 13. Section 48.110(f), Education Code, is amended
243	243	to read as follows:
244	244	(f) For purposes of this section, an annual graduate
245	245	demonstrates:
246	246	(1) college readiness if the annual graduate:
247	247	(A) both:
248	248	(i) achieves college readiness standards
249	249	used for accountability purposes under Chapter 39 on the ACT, the
250	250	SAT, or an assessment instrument designated by the Texas Higher
251	251	Education Coordinating Board under Section 51.334; and
252	252	(ii) [(B)] during a time period established
253	253	by commissioner rule, enrolls at a postsecondary educational
254	254	institution; or
255	255	(B) earns an associate degree while attending
256	256	high school or during a time period established by commissioner
257	257	rule;
258	258	(2) career readiness if the annual graduate:
259	259	(A) achieves college readiness standards used
260	260	for accountability purposes under Chapter 39 on the ACT, the SAT, or
261	261	an assessment instrument designated by the Texas Higher Education
262	262	Coordinating Board under Section 51.334; and
263	263	(B) during a time period established by
264	264	commissioner rule, earns an industry-accepted certificate; and
265	265	(3) military readiness if the annual graduate:
266	266	(A) achieves a passing score set by the
267	267	applicable military branch on the Armed Services Vocational
268	268	Aptitude Battery; and
269	269	(B) during a time period established by
270	270	commissioner rule, enlists in the armed forces of the United
271	271	States.
272	272	SECTION 14. Section 48.111, Education Code, is amended to
273	273	read as follows:
274	274	Sec. 48.111. FAST GROWTH ALLOTMENT. (a) A school district
275	275	in which the growth in student enrollment in the district over the
276	276	[preceding] three school years preceding the current school year is
277	277	in the top quartile of student enrollment growth in school
278	278	districts in the state for that period, as determined by the
279	279	commissioner, is entitled to an annual allotment equal to the basic
280	280	allotment multiplied by the weight assigned to the district's
281	281	growth category under Subsection (b) [0.04] for each student in
282	282	average daily attendance.
283	283	(b) The agency shall identify each school district that
284	284	qualifies for an allotment under this section and rank those
285	285	districts, from fastest to least fastest growth, based on student
286	286	enrollment growth, during the period described by Subsection (a).
287	287	Based on the rankings determined under this section, the agency
288	288	shall divide the districts into four growth categories according to
289	289	relative student enrollment growth. Each growth category must be of
290	290	approximately equal student enrollments. If, based on student
291	291	enrollment, a district is between two growth categories, the agency
292	292	shall assign the district to the faster growth category. The weight
293	293	for each growth category is assigned as follows:
294	294	(1) 0.064 for the fastest growth category;
295	295	(2) 0.048 for the second fastest growth category;
296	296	(3) 0.032 for the third fastest growth category; and
297	297	(4) 0.016 for the least fastest growth category.
298	298	SECTION 15. Section 42.168, Education Code, as added by
299	299	Chapter 464 (S.B. 11), Acts of the 86th Legislature, Regular
300	300	Session, 2019, is transferred to Subchapter C, Chapter 48,
301	301	Education Code, redesignated as Section 48.115, Education Code, and
302	302	amended to read as follows:
303	303	Sec. 48.115 [42.168]. SCHOOL SAFETY ALLOTMENT. (a) From
304	304	funds appropriated for that purpose, the commissioner shall provide
305	305	to a school district an annual allotment in the amount provided by
306	306	appropriation for each student in average daily attendance.
307	307	(b) Funds allocated under this section must be used to
308	308	improve school safety and security, including costs associated
309	309	with:
310	310	(1) securing school facilities, including:
311	311	(A) improvements to school infrastructure;
312	312	(B) the use or installation of physical barriers;
313	313	and
314	314	(C) the purchase and maintenance of:
315	315	(i) security cameras or other security
316	316	equipment; and
317	317	(ii) technology, including communications
318	318	systems or devices, that facilitates communication and information
319	319	sharing between students, school personnel, and first responders in
320	320	an emergency;
321	321	(2) providing security for the district, including:
322	322	(A) employing school district peace officers,
323	323	private security officers, and school marshals; and
324	324	(B) collaborating with local law enforcement
325	325	agencies, such as entering into a memorandum of understanding for
326	326	the assignment of school resource officers to schools in the
327	327	district;
328	328	(3) school safety and security training and planning,
329	329	including:
330	330	(A) active shooter and emergency response
331	331	training;
332	332	(B) prevention and treatment programs relating
333	333	to addressing adverse childhood experiences; and
334	334	(C) the prevention, identification, and
335	335	management of emergencies and threats, including:
336	336	(i) providing mental health personnel and
337	337	support;
338	338	(ii) providing behavioral health services;
339	339	and
340	340	(iii) establishing threat reporting
341	341	systems; and
342	342	(4) providing programs related to suicide prevention,
343	343	intervention, and postvention.
344	344	(c) A school district may use funds allocated under this
345	345	section for equipment or software that is used for a school safety
346	346	and security purpose and an instructional purpose, provided that
347	347	the instructional use does not compromise the safety and security
348	348	purpose of the equipment or software.
349	349	[(d) A school district that is required to take action under
350	350	Chapter 41 to reduce its wealth per student to the equalized wealth
351	351	level is entitled to a credit, in the amount of the allotments to
352	352	which the district is to receive as provided by appropriation,
353	353	against the total amount required under Section 41.093 for the
354	354	district to purchase attendance credits.
355	355	[(e) The commissioner may adopt rules to implement this
356	356	section.]
357	357	SECTION 16. Section 48.2551, Education Code, is amended by
358	358	amending Subsections (a) and (c) and adding Subsections (d-1) and
359	359	(d-2) to read as follows:
360	360	(a) In this section:
361	361	(1) "DPV" is the taxable value of property in the
362	362	school district, as determined by the agency by rule, using locally
363	363	determined property values adjusted in accordance with Section
364	364	403.302(d), Government Code [has the meaning assigned by Section
365	365	48.256];
366	366	(2) "E" is the expiration of the exclusion of
367	367	appraised property value for the preceding tax year that is
368	368	recognized as taxable property value for the current tax year,
369	369	which is the sum of the following:
370	370	(A) property value that is no longer subject to a
371	371	limitation on appraised value under Chapter 313, Tax Code; and
372	372	(B) property value under Section 311.013(n), Tax
373	373	Code, that is no longer excluded from the calculation of "DPV" from
374	374	the preceding year because of refinancing or renewal after
375	375	September 1, 2019;
376	376	(3) "MCR" is the district's maximum compressed rate,
377	377	which is the tax rate for the current tax year per $100 of valuation
378	378	of taxable property at which the district must levy a maintenance
379	379	and operations tax to receive the full amount of the tier one
380	380	allotment to which the district is entitled under this chapter;
381	381	(4) "PYDPV" is the district's value of "DPV" for the
382	382	preceding tax year; and
383	383	(5) "PYMCR" is the district's value of "MCR" for the
384	384	preceding tax year.
385	385	(c) Notwithstanding Subsection (b), for a district to which
386	386	Section 48.2552(b) applies, the district's maximum compressed rate
387	387	is the value calculated in accordance with Section 48.2552(b) [for
388	388	"MCR" under Subsection (b)(1)(B)].
389	389	(d-1) Local appraisal districts, school districts, and the
390	390	comptroller shall provide any information necessary to the agency
391	391	to implement this section.
392	392	(d-2) A school district may appeal to the commissioner the
393	393	district's taxable property value as determined by the agency under
394	394	this section. A decision by the commissioner is final and may not be
395	395	appealed.
396	396	SECTION 17. Section 48.2552(b), Education Code, is amended
397	397	to read as follows:
398	398	(b) If a school district's [district has a] maximum
399	399	compressed rate as calculated under Section 48.2551(b) would be
400	400	[that is] less than 90 percent of another school district's maximum
401	401	compressed rate, the district's maximum compressed rate is the
402	402	value at which the district's maximum compressed rate would be
403	403	equal to 90 percent of the other district's maximum compressed rate
404	404	[calculated under Section 48.2551(c) until the agency determines
405	405	that the difference between the district's and another district's
406	406	maximum compressed rates is not more than 10 percent].
407	407	SECTION 18. Section 48.257(c), Education Code, is amended
408	408	to read as follows:
409	409	(c) For purposes of Subsection (a), state aid to which a
410	410	district is entitled under this chapter [that is not described by
411	411	Section 48.266(a)(1), (2), or (3)] may offset the amount by which a
412	412	district must reduce the district's [tier one] revenue level under
413	413	this section [Subsection (a)]. Any amount of state aid used as an
414	414	offset under this subsection shall reduce the amount of state aid to
415	415	which the district is entitled.
416	416	SECTION 19. Subchapter F, Chapter 48, Education Code, is
417	417	amended by adding Section 48.2721 to read as follows:
418	418	Sec. 48.2721. RECOVERY OF FUNDS FROM EXCESSIVE TAXATION.
419	419	The commissioner shall reduce state aid or adjust the limit on local
420	420	revenue under Section 48.257 in an amount equal to the amount of
421	421	revenue generated by a school district's tax effort that is not in
422	422	compliance with Section 45.003 or this chapter.
423	423	SECTION 20. Subchapter G, Chapter 48, Education Code, is
424	424	amended by adding Section 48.303 to read as follows:
425	425	Sec. 48.303. ADDITIONAL STATE AID FOR REGIONAL EDUCATION
426	426	SERVICE CENTER STAFF SALARY INCREASES. (a) A regional education
427	427	service center is entitled to state aid in an amount equal to the
428	428	sum of:
429	429	(1) the product of $500 multiplied by the number of
430	430	full-time center employees, other than administrators or classroom
431	431	teachers, full-time librarians, full-time school counselors
432	432	certified under Subchapter B, Chapter 21, or full-time school
433	433	nurses; and
434	434	(2) the product of $250 multiplied by the number of
435	435	part-time center employees, other than administrators or teachers,
436	436	librarians, school counselors certified under Subchapter B,
437	437	Chapter 21, or school nurses.
438	438	(b) A determination by the commissioner under Subsection
439	439	(a) is final and may not be appealed.
440	440	SECTION 21. Subchapter A, Chapter 49, Education Code, is
441	441	amended by adding Section 49.0041 to read as follows:
442	442	Sec. 49.0041. LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT
443	443	AFTER REVIEW NOTIFICATION. If the commissioner determines that a
444	444	school district has a local revenue level in excess of entitlement
445	445	after the date the commissioner sends notification for the school
446	446	year under Section 49.004(a), the commissioner shall include the
447	447	amount of the district's local revenue level that exceeded the
448	448	level established under Section 48.257 for that school year in the
449	449	annual review for the following school year of the district's local
450	450	revenue levels under Section 49.004(a).
451	451	SECTION 22. Section 49.054(b), Education Code, is amended
452	452	to read as follows:
453	453	(b) A consolidated [Except as provided by Subsection (c), a]
454	454	district under this subchapter [receiving incentive aid payments
455	455	under this section] is [not] entitled to incentive aid under
456	456	Subchapter G, Chapter 13.
457	457	SECTION 23. Section 48.302, Education Code, is transferred
458	458	to Subchapter J, Chapter 301, Labor Code, redesignated as Section
459	459	301.172, Labor Code, and amended to read as follows:
460	460	Sec. 301.172 [48.302]. SUBSIDY FOR HIGH SCHOOL EQUIVALENCY
461	461	EXAMINATION FOR CERTAIN INDIVIDUALS. (a) From funds appropriated
462	462	for this purpose, the commission [In this section, "commission"
463	463	means the Texas Workforce Commission.
464	464	[(b) The agency] shall [enter into a memorandum of
465	465	understanding with the commission for the agency to transfer to the
466	466	commission funds specifically appropriated to the agency for the
467	467	commission to] provide to an individual who is 21 years of age or
468	468	older a subsidy in an amount equal to the cost of taking one high
469	469	school equivalency examination administered under Section 7.111,
470	470	Education Code.
471	471	(b) [(c)] The commission shall adopt rules to implement the
472	472	subsidy program described by Subsection (a) [(b)], including rules
473	473	regarding eligibility requirements.
474	474	SECTION 24. Section 822.201(b), Government Code, is amended
475	475	to read as follows:
476	476	(b) "Salary and wages" as used in Subsection (a) means:
477	477	(1) normal periodic payments of money for service the
478	478	right to which accrues on a regular basis in proportion to the
479	479	service performed;
480	480	(2) amounts by which the member's salary is reduced
481	481	under a salary reduction agreement authorized by Chapter 610;
482	482	(3) amounts that would otherwise qualify as salary and
483	483	wages under Subdivision (1) but are not received directly by the
484	484	member pursuant to a good faith, voluntary written salary reduction
485	485	agreement in order to finance payments to a deferred compensation
486	486	or tax sheltered annuity program specifically authorized by state
487	487	law or to finance benefit options under a cafeteria plan qualifying
488	488	under Section 125 of the Internal Revenue Code of 1986, if:
489	489	(A) the program or benefit options are made
490	490	available to all employees of the employer; and
491	491	(B) the benefit options in the cafeteria plan are
492	492	limited to one or more options that provide deferred compensation,
493	493	group health and disability insurance, group term life insurance,
494	494	dependent care assistance programs, or group legal services plans;
495	495	(4) performance pay awarded to an employee by a school
496	496	district as part of a total compensation plan approved by the board
497	497	of trustees of the district and meeting the requirements of
498	498	Subsection (e);
499	499	(5) the benefit replacement pay a person earns under
500	500	Subchapter H, Chapter 659, except as provided by Subsection (c);
501	501	(6) stipends paid to teachers in accordance with
502	502	former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
503	503	(7) amounts by which the member's salary is reduced or
504	504	that are deducted from the member's salary as authorized by
505	505	Subchapter J, Chapter 659;
506	506	(8) a merit salary increase made under Section 51.962,
507	507	Education Code;
508	508	(9) amounts received under the relevant parts of the
509	509	educator excellence awards program under Subchapter O, Chapter 21,
510	510	Education Code, or a mentoring program under Section 21.458,
511	511	Education Code, that authorize compensation for service;
512	512	(10) salary amounts designated as health care
513	513	supplementation by an employee under Subchapter D, Chapter 22,
514	514	Education Code; [and]
515	515	(11) to the extent required by Sections 3401(h) and
516	516	414(u)(12), Internal Revenue Code of 1986, differential wage
517	517	payments received by an individual from an employer on or after
518	518	January 1, 2009, while the individual is performing qualified
519	519	military service as defined by Section 414(u), Internal Revenue
520	520	Code of 1986; and
521	521	(12) increased compensation paid to a teacher by a
522	522	school district using funds received by the district under the
523	523	teacher incentive allotment under Section 48.112, Education Code.
524	524	SECTION 25. (a) The following provisions of the Education
525	525	Code are repealed:
526	526	(1) Sections 12.133(d), (d-1), and (e);
527	527	(2) Section 25.038;
528	528	(3) Sections 25.039(b) and (c);
529	529	(4) Section 48.154; and
530	530	(5) Sections 49.054(a) and (c).
531	531	(b) The following provisions, which amended Section 42.006,
532	532	Education Code, are repealed:
533	533	(1) Section 2, Chapter 1036 (H.B. 548), Acts of the
534	534	86th Legislature, Regular Session, 2019; and
535	535	(2) Section 8, Chapter 1060 (H.B. 1051), Acts of the
536	536	86th Legislature, Regular Session, 2019.
537	537	SECTION 26. To the extent of any conflict, this Act prevails
538	538	over another Act of the 87th Legislature, Regular Session, 2021,
539	539	relating to nonsubstantive additions to and corrections in enacted
540	540	codes.
541	541	SECTION 27. This Act takes effect September 1, 2021.