Texas House Bill HB100 House Committee Report / Bill

                    88R22726 KJE-F
 By: King of Hemphill, VanDeaver, Dutton, H.B. No. 100
 Howard, Buckley, et al.
 Substitute the following for H.B. No. 100:
 By:  Buckley C.S.H.B. No. 100


 A BILL TO BE ENTITLED
 AN ACT
 relating to the compensation of public school educators and to the
 public school finance system, including enrollment-based funding
 for certain allotments under the Foundation School Program.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. CHANGES EFFECTIVE FOR 2023-2024 SCHOOL YEAR
 SECTION 1.01.  Section 12.106(a-2), Education Code, is
 amended to read as follows:
 (a-2)  In addition to the funding provided by Subsection (a),
 a charter holder is entitled to receive for the open-enrollment
 charter school an allotment per student in average daily attendance
 in an amount equal to the difference between:
 (1)  the product of:
 (A)  the quotient of:
 (i)  the total amount of funding provided to
 eligible school districts under Section 48.101(b) or (c); and
 (ii)  the total number of students in
 average daily attendance in school districts that receive an
 allotment under Section 48.101(b) or (c); and
 (B)  the sum of one and the quotient of:
 (i)  the total number of students in average
 daily attendance in school districts that receive an allotment
 under Section 48.101(b) or (c); and
 (ii)  the total number of students in
 average daily attendance in school districts statewide; and
 (2)  $500 [$125].
 SECTION 1.02.  Section 13.054, Education Code, is amended by
 amending Subsection (f) and adding Subsections (i-1), (i-2), (i-3),
 (i-4), and (i-5) to read as follows:
 (f)  For five years beginning with the school year in which
 the annexation occurs, a school district shall receive additional
 funding under this subsection or Subsection (h).  The amount of
 funding shall be determined by multiplying the lesser of the
 enlarged district's local fund assignment computed under Section
 48.256 or the enlarged district's total cost of tier one by a
 fraction, the numerator of which is the number of students residing
 in the territory annexed to the receiving district preceding the
 date of the annexation and the denominator of which is the number of
 students residing in the district as enlarged on the date of the
 annexation, and multiplying the resulting product by the quotient
 of the enlarged district's maximum compressed tax rate, as
 determined under Section 48.2551, for the current school year
 divided by the receiving district's maximum compressed tax rate, as
 determined under Section 48.2551, for the year in which the
 annexation occurred. The commissioner shall provide the funding
 under this subsection from funds appropriated for purposes of the
 Foundation School Program.  A determination by the commissioner
 under this subsection is final and may not be appealed.
 (i-1)  Notwithstanding any other law, a school district is
 entitled to funding under Subsection (f) for an annexation that
 occurs on or after June 1, 2013.
 (i-2)  For each school district entitled to funding under
 Subsection (f) as provided by Subsection (i-1) that, as of
 September 1, 2023, has not received the full amount of funding to
 which the district would have been entitled under Subsection (f) if
 Subsection (i-1) had been in effect since June 1, 2013, the
 commissioner shall:
 (1)  determine the difference between:
 (A)  the amount of funding to which the district
 would have been entitled under Subsection (f) if Subsection (i-1)
 had been in effect since June 1, 2013; and
 (B)  the amount of funding the district has
 received under Subsection (f); and
 (2)  provide the amount determined under Subdivision
 (1) to the district in the form of:
 (A)  a lump sum; or
 (B)  equal annual installments over a period not
 to exceed three years.
 (i-3)  In addition to the funding provided to a school
 district under Subsection (i-2), the commissioner may allocate
 money to the district from funds appropriated for purposes of the
 Foundation School Program to pay for facilities improvements the
 commissioner determines necessary as a result of the annexation.
 (i-4)  Each school district that receives funding under
 Subsection (f) as provided by Subsection (i-2) or under Subsection
 (i-3) for any year shall submit to the commissioner in the form and
 manner provided by commissioner rule a report on the district's use
 of the funding for that year.
 (i-5)  This subsection and Subsections (i-2), (i-3), and
 (i-4) expire September 1, 2027.
 SECTION 1.03.  Section 19.009(d-2), Education Code, is
 amended to read as follows:
 (d-2)  Beginning with the 2009-2010 school year, the
 district shall increase the [monthly] salary of each classroom
 teacher, full-time speech pathologist, full-time librarian,
 full-time school counselor certified under Subchapter B, Chapter
 21, and full-time school nurse employed by the district by the
 greater of:
 (1)  $80 per month; or
 (2)  the maximum uniform amount per month that, when
 combined with any resulting increases in the amount of
 contributions made by the district for social security coverage for
 the specified employees or by the district on behalf of the
 specified employees under Section 825.405, Government Code, may be
 provided using an amount equal to the product of $60 multiplied by
 the number of students in weighted average daily attendance in the
 district during the 2009-2010 school year.
 SECTION 1.04.  (a)  This section takes effect only if H.B.
 11, 88th Legislature, Regular Session, 2023, or another Act of that
 legislature establishing a residency partnership program and
 authorizing the issuance of a residency educator certificate
 becomes law.
 (b)  Section 21.402(a), Education Code, is amended to read as
 follows:
 (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a
 school district must pay each employee who is employed as a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse not less
 than the highest annual minimum [minimum monthly] salary described
 by the following schedule applicable to [, based on] the employee's
 certification, if any, and years [level] of experience:
 (1)  for an employee with less than five years of
 experience who:
 (A)  holds no certification  $35,000;
 (B)  holds a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $37,000;
 (C)  holds the base certificate required under
 Section 21.003(a) for employment in the employee's position other
 than a certificate described by Paragraph (B)  $40,000;
 (D)  holds a designation under Section 21.3521
 $43,000; or
 (E)  holds a residency educator certificate or has
 successfully completed a residency partnership program $43,000;
 (2)  for an employee with at least five years of
 experience who holds:
 (A)  no certification  $45,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $47,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's position other than a
 certificate described by Paragraph (B)  $50,000; or
 (D)  a designation under Section 21.3521
 $53,000; or
 (3)  for an employee with at least 10 years of
 experience who holds:
 (A)  no certification  $55,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $57,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's
 position . . .. $60,000; or
 (D)  a designation under Section 21.3521
 $63,000 [in addition to other factors, as determined by
 commissioner rule, determined by the following formula:
 [MS = SF x FS
 [where:
 ["MS" is the minimum monthly salary;
 ["SF" is the applicable salary factor specified by Subsection
 (c); and
 ["FS" is the amount, as determined by the commissioner under
 Subsection (b), of the basic allotment as provided by Section
 48.051(a) or (b) for a school district with a maintenance and
 operations tax rate at least equal to the state maximum compressed
 tax rate, as defined by Section 48.051(a)].
 SECTION 1.05.  (a)  This section takes effect only if H.B.
 11, 88th Legislature, Regular Session, 2023, or another Act of that
 legislature establishing a residency partnership program and
 authorizing the issuance of a residency educator certificate does
 not become law.
 (b)  Section 21.402(a), Education Code, is amended to read as
 follows:
 (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a
 school district must pay each employee who is employed as a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse not less
 than the highest annual minimum [minimum monthly] salary described
 by the following schedule applicable to [, based on] the employee's
 certification, if any, and years [level] of experience:
 (1)  for an employee with less than five years of
 experience who holds:
 (A)  no certification  $35,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $37,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's position other than a
 certificate described by Paragraph (B)  $40,000; or
 (D)  a designation under Section 21.3521 . .
 $43,000;
 (2)  for an employee with at least five years of
 experience who holds:
 (A)  no certification  $45,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $47,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's position other than a
 certificate described by Paragraph (B)  $50,000; or
 (D)  a designation under Section 21.3521
 $53,000; or
 (3)  for an employee with at least 10 years of
 experience who holds:
 (A)  no certification  $55,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $57,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's
 position . . .. $60,000; or
 (D)  a designation under Section 21.3521
 $63,000 [in addition to other factors, as determined by
 commissioner rule, determined by the following formula:
 [MS = SF x FS
 [where:
 ["MS" is the minimum monthly salary;
 ["SF" is the applicable salary factor specified by Subsection
 (c); and
 ["FS" is the amount, as determined by the commissioner under
 Subsection (b), of the basic allotment as provided by Section
 48.051(a) or (b) for a school district with a maintenance and
 operations tax rate at least equal to the state maximum compressed
 tax rate, as defined by Section 48.051(a)].
 SECTION 1.06.  Section 21.402, Education Code, is amended by
 adding Subsections (a-1), (c-2), (i), (j), (k), and (l) and
 amending Subsection (g) to read as follows:
 (a-1)  For purposes of Subsection (a), a full-time school
 nurse is considered to hold the base certificate required under
 Section 21.003(a) for employment as a school nurse, regardless of
 the other certifications held by the nurse.
 (c-2)  A school district is not required to pay an employee
 who is employed as a classroom teacher, full-time librarian,
 full-time school counselor certified under Subchapter B, or
 full-time school nurse the minimum salary required under Subsection
 (a) for the school year following a school year during which the
 district reviews the employee's performance and finds the
 employee's performance unsatisfactory.
 (g)  The commissioner may adopt rules to govern the
 application of this section, including rules that:
 (1)  require the payment of a minimum salary under this
 section to a person employed in more than one capacity for which a
 minimum salary is provided and whose combined employment in those
 capacities constitutes full-time employment; and
 (2)  specify the credentials a person must hold to be
 considered a [speech pathologist or] school nurse under this
 section.
 (i)  A school district must use at least 50 percent of the
 difference between what the district would have paid under Section
 825.405, Government Code, based on the salaries paid under this
 section as it existed on January 1, 2023, and what the district pays
 under Section 825.405, Government Code, based on the salaries paid
 under this section as it exists after September 1, 2023, to increase
 the average total compensation per district employee employed as a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse. In
 calculating average total compensation per district employee under
 this subsection, a district may not include compensation paid to a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse in a
 position added by the school district for the current school year
 that increases the ratio of those employees to enrolled students
 over the ratio of those employees to enrolled students for the
 preceding year.
 (j)  A school district that increases employee compensation
 in the 2023-2024 school year to comply with Subsection (a), as
 amended by H.B. 100, Acts of the 88th Legislature, Regular Session,
 2023, is providing compensation for services rendered
 independently of an existing employment contract applicable to that
 year and is not in violation of Section 53, Article III, Texas
 Constitution. A school district that does not meet the
 requirements of Subsection (a) in the 2023-2024 school year may
 satisfy the requirements of this section by providing an employee a
 one-time bonus payment during the 2024-2025 school year in an
 amount equal to the difference between the compensation earned by
 the employee during the 2023-2024 school year and the compensation
 the employee should have received during that school year if the
 district had complied with Subsection (a).
 (k)  Notwithstanding the minimum salary schedule under
 Subsection (a), a school district that increases the amount a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse is
 compensated during the 2023-2024 school year by at least $8,000
 more than the amount the employee was compensated during the
 2022-2023 school year complies with the requirements of this
 section for the 2023-2024 school year.
 (l)  Subsections (i), (j), and (k) and this subsection expire
 September 1, 2025.
 SECTION 1.07.  The heading to Section 21.403, Education
 Code, is amended to read as follows:
 Sec. 21.403.  DETERMINATION OF YEARS OF EXPERIENCE
 [PLACEMENT ON MINIMUM SALARY SCHEDULE].
 SECTION 1.08.  Sections 21.403(b) and (c), Education Code,
 are amended to read as follows:
 (b)  For each year of work experience required for
 certification in a career or technological field, up to a maximum of
 two years, a certified career or technology education teacher is
 entitled to [salary step] credit as if the work experience were
 teaching experience.
 (c)  The commissioner shall adopt rules for determining the
 experience for which a teacher, librarian, school counselor, or
 nurse is to be given credit for purposes of the minimum salary
 schedule under Section 21.402(a) [in placing the teacher,
 librarian, school counselor, or nurse on the minimum salary
 schedule].  A district shall credit the teacher, librarian, school
 counselor, or nurse for each year of experience without regard to
 whether the years are consecutive.
 SECTION 1.09.  Section 21.4552(d), Education Code, is
 amended to read as follows:
 (d)  From funds appropriated for that purpose, a teacher who
 attends a literacy achievement academy is entitled to receive a
 stipend in the amount determined by the commissioner.  A stipend
 received under this subsection is not considered in determining
 whether a school district is paying the teacher the minimum
 [monthly] salary under Section 21.402.
 SECTION 1.10.  Section 21.4553(d), Education Code, is
 amended to read as follows:
 (d)  From funds appropriated for that purpose, a teacher who
 attends a mathematics achievement academy is entitled to receive a
 stipend in the amount determined by the commissioner.  A stipend
 received under this subsection is not considered in determining
 whether a district is paying the teacher the minimum [monthly]
 salary under Section 21.402.
 SECTION 1.11.  Section 21.4555(f), Education Code, is
 amended to read as follows:
 (f)  From funds available for that purpose, a teacher who
 attends a civics training program may receive a stipend in an amount
 determined by the commissioner.  A stipend received under this
 section is not included in determining whether a district is paying
 the teacher the minimum [monthly] salary under Section 21.402.
 SECTION 1.12.  Subchapter Z, Chapter 29, Education Code, is
 amended by adding Section 29.912 to read as follows:
 Sec. 29.912.  RURAL PATHWAY EXCELLENCE PARTNERSHIP (R-PEP)
 PROGRAM. (a) In this section, "program" means the Rural Pathway
 Excellence Partnership (R-PEP) program established under this
 section.
 (b)  The commissioner shall establish and administer the
 Rural Pathway Excellence Partnership (R-PEP) program to
 incentivize and support multidistrict, cross-sector, rural college
 and career pathway partnerships that expand opportunities for
 underserved students to succeed in school and life while promoting
 economic development in rural areas.
 (c)  The program must enable an eligible school district that
 lacks an economy of scale, as determined by commissioner rule, to
 partner with at least one other school district to offer a broader
 array of robust college and career pathways. Each partnership must:
 (1)  offer college and career pathways that align with
 regional labor market projections for high-wage, high-demand
 careers; and
 (2)  be managed by a coordinating entity that:
 (A)  has or will have at the time students are
 served under the partnership the capacity to effectively coordinate
 the partnership;
 (B)  has entered into a performance agreement
 approved by the board of trustees of each partnering school
 district that confers to the coordinating entity the same authority
 with respect to the partnership as provided to an entity that
 contracts to operate a district campus under Section 11.174;
 (C)  is eligible to be awarded a charter under
 Section 12.101(a);
 (D)  has been granted a charter by each partnering
 school district under Subchapter C, Chapter 12; and
 (E)  has on the entity's governing board as either
 voting or ex officio members representatives of each partnering
 school district and members of regional higher education and
 workforce organizations.
 (d)  The performance agreement described by Subsection
 (c)(2)(B) must:
 (1)  include ambitious and measurable performance
 goals and progress measures tied to current college, career, and
 military readiness outcomes and longitudinal postsecondary
 completion and employment-related outcomes;
 (2)  allocate responsibilities for accessing and
 managing progress and outcome information and annually publishing
 that information on the Internet website of each partnering
 district and the coordinating entity;
 (3)  authorize the coordinating entity to optimize the
 value of each college and career pathway offered through the
 partnership by determining scheduling, adding or removing a
 pathway, hiring of pathway-specific personnel, setting
 pathway-specific budgets, and other matters critical to the
 efficacy of the pathways; and
 (4)  provide that any eligible student residing in a
 partnering school district may participate in a college or career
 pathway offered through the partnership.
 (e)  An employee of a coordinating entity that manages a
 partnership under the program is eligible for membership in and
 benefits from the Teacher Retirement System of Texas if the
 employee would be eligible for membership and benefits by holding
 the same position at a partnering school district.
 (f)  A student enrolled in a college or career pathway
 offered through a partnership under the program is not considered
 for accountability purposes under Chapter 39 to have dropped out of
 high school or failed to complete the curriculum requirements for
 high school graduation until the sixth anniversary of the student's
 first day in high school.
 (g)  A school district proposing to enter into a performance
 agreement under this section shall notify the commissioner of the
 district's intent to enter into the agreement. The commissioner
 shall establish procedures for a district to notify the
 commissioner, including the period within which notification is
 required before the school year in which the proposed agreement
 would take effect, and to provide any additional information
 required by the commissioner. The commissioner shall notify the
 district whether the proposed agreement is approved or denied not
 later than the 60th day after the date the commissioner receives
 notification of the proposed agreement and all other information
 required by the commissioner. If the commissioner fails to notify
 the district that the proposed agreement has been approved or
 denied within the period prescribed by this subsection, the
 proposed agreement is considered approved.
 (h)  From money appropriated for that purpose, the
 commissioner shall establish a grant program to assist in the
 planning and implementation of a partnership under the program.
 The commissioner may award a grant only to a coordinating entity
 that has entered into a performance agreement approved under
 Subsection (g). The commissioner may use not more than 15 percent
 of the money appropriated for the grant program to cover the cost of
 administering the grant program and to provide technical assistance
 and support to partnerships under the program.
 (i)  The commissioner shall adopt rules as necessary to
 implement this section, including rules establishing:
 (1)  requirements for a coordinating entity and a
 performance agreement with the entity;
 (2)  the period for which a partnership under the
 program may operate after commissioner approval before renewal of
 commissioner approval is required; and
 (3)  standards for renewal of commissioner approval for
 a partnership under the program.
 (j)  This section does not prohibit an agreement between a
 school district and another entity for the provision of services at
 a district campus.
 (k)  The commissioner may accept gifts, grants, and
 donations from any source, including private and nonprofit
 organizations, for the program. A private or nonprofit
 organization that contributes to the program may receive an award
 under Section 7.113.
 SECTION 1.13.  Section 30.003, Education Code, is amended by
 amending Subsections (b) and (f-1) and adding Subsection (b-1) to
 read as follows:
 (b)  If the student is admitted to the school for a full-time
 program for the equivalent of two long semesters, the district's
 share of the cost is an amount equal to the dollar amount of
 maintenance and debt service taxes imposed by the district for that
 year, subject to Subsection (b-1), divided by the district's
 average daily attendance for the preceding year.
 (b-1)  For purposes of Subsection (b), the commissioner
 shall reduce the dollar amount of maintenance and debt service
 taxes imposed by the district for a year by the amount, if any, by
 which the district is required to reduce the district's local
 revenue level under Section 48.257 for that year.
 (f-1)  The commissioner shall determine the total amount
 that the Texas School for the Blind and Visually Impaired and the
 Texas School for the Deaf would have received from school districts
 in accordance with this section if the following provisions had not
 reduced the districts' share of the cost of providing education
 services:
 (1)  H.B. No. 1, Acts of the 79th Legislature, 3rd
 Called Session, 2006;
 (2)  Subsection (b-1) of this section;
 (3)  Section 45.0032;
 (4) [(3)]  Section 48.255; and
 (5) [(4)]  Section 48.2551.
 SECTION 1.14.  Section 30.102(b), Education Code, is amended
 to read as follows:
 (b)  A classroom teacher, full-time librarian, full-time
 school counselor certified under Subchapter B, Chapter 21, or
 full-time school nurse employed by the department is entitled to
 receive as a minimum salary the [monthly] salary specified by
 Section 21.402. A classroom teacher, full-time librarian,
 full-time school counselor, or full-time school nurse may be paid,
 from funds appropriated to the department, a salary in excess of the
 minimum specified by that section, but the salary may not exceed the
 rate of pay for a similar position in the public schools of an
 adjacent school district.
 SECTION 1.15.  Section 33.009(h), Education Code, is amended
 to read as follows:
 (h)  From funds appropriated for that purpose, a school
 counselor who attends the academy under this section is entitled to
 receive a stipend in the amount determined by the coordinating
 board. If funds are available after all eligible school counselors
 have received a stipend under this subsection, the coordinating
 board shall pay a stipend in the amount determined by the
 coordinating board to a teacher who attends the academy under this
 section. A stipend received under this subsection is not
 considered in determining whether a district is paying the school
 counselor or teacher the minimum [monthly] salary under Section
 21.402.
 SECTION 1.16.  Subchapter A, Chapter 48, Education Code, is
 amended by adding Section 48.0055 to read as follows:
 Sec. 48.0055.  ENROLLMENT-BASED FUNDING. The commissioner
 by rule shall establish the method for determining average
 enrollment for purposes of funding provided based on average
 enrollment under Chapter 46 and this chapter.
 SECTION 1.17.  Section 48.051, Education Code, is amended by
 amending Subsections (a) and (c) and adding Subsections (c-3) and
 (c-4) to read as follows:
 (a)  For each student in average daily attendance, not
 including the time students spend each day in special education
 programs in an instructional arrangement other than mainstream or
 career and technology education programs, for which an additional
 allotment is made under Subchapter C, a district is entitled to an
 allotment equal to [the lesser of $6,160 or] the amount that results
 from the following formula:
 A = B [$6,160] X TR/MCR
 where:
 "A" is the allotment to which a district is entitled;
 "B" is the base amount, which equals the greater of:
 (1)  $6,250;
 (2)  an amount equal to the district's base amount under
 this section for the preceding school year; or
 (3)  the amount appropriated under Subsection (b);
 "TR" is the district's tier one maintenance and operations
 tax rate, as provided by Section 45.0032; and
 "MCR" is the district's maximum compressed tax rate, as
 determined under Section 48.2551.
 (c)  During any school year for which the value of "A"
 determined [maximum amount of the basic allotment provided] under
 Subsection (a) or, if applicable, the sum of the value of "A" and
 the allotment under Section 48.101 to which the district is
 entitled, [or (b)] is greater than the value of "A" or, if
 applicable, the sum of the value of "A" and the allotment under
 Section 48.101 to which the district is entitled, [maximum amount
 provided] for the preceding school year, a school district must use
 at least 50 [30] percent of the amount[, if the amount is greater
 than zero,] that equals the product of the average daily attendance
 of the district multiplied by the amount of the difference between
 the district's funding under this chapter per student in average
 daily attendance for the current school year and the preceding
 school year to increase the average total compensation per employee
 employed by the district as [provide compensation increases to
 full-time district employees other than administrators as follows:
 [(1)  75 percent must be used to increase the
 compensation paid to] classroom teachers, full-time librarians,
 full-time school counselors certified under Subchapter B, Chapter
 21, and full-time school nurses [, prioritizing differentiated
 compensation for classroom teachers with more than five years of
 experience; and
 [(2)  25 percent may be used as determined by the
 district to increase compensation paid to full-time district
 employees]. In calculating average total compensation per employee
 under this subsection, a school district may not consider
 compensation paid to a district employee employed in a position
 described by this subsection added by the school district for the
 current school year that increases the ratio of those employees to
 the students enrolled in the district compared to the preceding
 school year.
 (c-3)  If a school district increases employee compensation
 in a school year to comply with Subsection (c), as amended by
 H.B. 100, Acts of the 88th Legislature, Regular Session, 2023, the
 district is providing compensation for services rendered
 independently of an existing employment contract applicable to that
 year and is not a violation of Section 53, Article III, Texas
 Constitution.
 (c-4)  A school district that does not meet the requirements
 of Subsection (c) during a school year may satisfy the requirements
 of this section by providing an employee a one-time bonus payment
 during the following school year in an amount equal to the
 difference between the compensation earned by the employee and the
 compensation the employee should have received during the school
 year if the district had complied with Subsection (c).
 SECTION 1.18.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Section 48.1022 to read as follows:
 Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
 EVALUATION. For each student for whom a school district conducts a
 full individual and initial evaluation under Section 29.004 or 20
 U.S.C. Section 1414(a)(1), the district is entitled to an allotment
 of $500 or a greater amount provided by appropriation.
 SECTION 1.19.  Section 48.111(a), Education Code, is amended
 to read as follows:
 (a)  A [Except as provided by Subsection (c), a] school
 district is entitled to an annual allotment equal to the basic
 allotment multiplied by the applicable weight under Subsection
 (a-1) 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.
 SECTION 1.20.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Sections 48.116 and 48.118 to read as follows:
 Sec. 48.116.  FINE ARTS ALLOTMENT. (a)  For each student in
 average daily attendance enrolled in a fine arts education course
 approved by the agency under Subsection (b) in grades 6 through 12,
 a school district is entitled to 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 .008.
 (b)  The agency shall approve fine arts education courses
 that qualify for the allotment provided under this section.  The
 approved courses must include fine arts education courses that:
 (1)  are authorized by the State Board of Education,
 including music, art, theater, and dance;
 (2)  provide students with the knowledge and skills
 necessary for success in the fine arts; and
 (3)  require a student in full-time attendance to
 receive not less than 225 minutes of fine arts instruction per week.
 (c)  The agency shall annually publish a list of fine arts
 courses approved under Subsection (b).
 Sec. 48.118.  RURAL PATHWAY EXCELLENCE PARTNERSHIP (R-PEP)
 ALLOTMENT AND OUTCOME BONUS. (a) For each full-time equivalent
 student in average daily attendance in grades 9 through 12 in a
 college or career pathway offered through a partnership under the
 Rural Pathway Excellence Partnership (R-PEP) program under Section
 29.912, a school district is entitled to an 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)  1.15, if the student is educationally
 disadvantaged; or
 (2)  1.11, if the student is not educationally
 disadvantaged.
 (b)  Each year, the commissioner shall determine for each
 school district the minimum number of annual graduates of a college
 or career pathway described by Subsection (a) in each cohort
 described by Section 48.110(b) who would have to demonstrate
 college, career, or military readiness, as determined by
 commissioner rule, in order for the district to qualify for an
 outcomes bonus under Subsection (c).
 (c)  In addition to the allotment under Subsection (a), for
 each annual graduate in a cohort described by Subsection (b) who
 demonstrates college, career, or military readiness, as determined
 by commissioner rule, in excess of the minimum number of students
 determined for the applicable district cohort under Subsection (b),
 a school district is entitled to an annual outcomes bonus of:
 (1)  if the annual graduate is educationally
 disadvantaged, $2,000;
 (2)  if the annual graduate is not educationally
 disadvantaged, $1,000; and
 (3)  if the annual graduate is enrolled in a special
 education program under Subchapter A, Chapter 29, $2,000,
 regardless of whether the annual graduate is educationally
 disadvantaged.
 (d)  A school district is entitled to an outcomes bonus under
 each subdivision of Subsection (c) for which an annual graduate
 qualifies.
 (e)  A school district may receive funding for a student
 under this section and any other section for which the student
 qualifies.
 SECTION 1.21.  Sections 48.151(c) and (g), Education Code,
 are amended to read as follows:
 (c)  Each district or county operating a regular
 transportation system is entitled to an allotment based on a rate of
 $1.54 per mile per regular eligible student or a greater rate set by
 the legislature in the General Appropriations Act.
 (g)  A school district or county that provides special
 transportation services for eligible special education students is
 entitled to a state allocation at a [paid on a previous year's
 cost-per-mile basis. The] rate of $1.28 per mile or a greater
 amount provided [allowable shall be set] by appropriation [based on
 data gathered from the first year of each preceding biennium].
 Districts may use a portion of their support allocation to pay
 transportation costs, if necessary. The commissioner may grant an
 amount set by appropriation for private transportation to reimburse
 parents or their agents for transporting eligible special education
 students. The mileage allowed shall be computed along the shortest
 public road from the student's home to school and back, morning and
 afternoon. The need for this type of transportation shall be
 determined on an individual basis and shall be approved only in
 extreme hardship cases.
 SECTION 1.22.  Subchapter D, Chapter 48, Education Code, is
 amended by adding Section 48.160 to read as follows:
 Sec. 48.160.  ALLOTMENT FOR ADVANCED MATHEMATICS PATHWAYS
 AND CERTAIN PROGRAMS OF STUDY. (a)  A school district is eligible
 to receive an allotment under this section if the district offers
 through in-person instruction, remote instruction, or a hybrid of
 in-person and remote instruction:
 (1)  an advanced mathematics pathway that begins with
 Algebra I in grade eight and continues through progressively more
 advanced mathematics courses in each grade from grade 9 through 12;
 (2)  a program of study in:
 (A)  computer programming and software
 development; or
 (B)  cybersecurity; and
 (3)  a program of study in a specialized skilled trade,
 such as:
 (A)  plumbing and pipefitting;
 (B)  electrical;
 (C)  welding;
 (D)  diesel and heavy equipment;
 (E)  aviation maintenance; or
 (F)  applied agricultural engineering.
 (b)  Notwithstanding Subsection (a), a school district is
 eligible for the allotment under this section for students enrolled
 in a high school in the district that does not offer a program of
 study described by Subsection (a)(2) or (3) if:
 (1)  high school students who reside in the attendance
 zone of the high school may participate in the program of study by
 enrolling in another high school:
 (A)  that:
 (i)  is in the same district or a neighboring
 school district;
 (ii)  was assigned the same or a better
 campus overall performance rating under Section 39.054 as the high
 school in whose attendance zone the students reside; and
 (iii)  offers the program of study; and
 (B)  to and from which transportation is provided
 for those students; or
 (2)  students enrolled in the high school:
 (A)  are offered instruction for the program of
 study at another location, such as another high school in the same
 district or a neighboring school district; and
 (B)  receive transportation to and from the
 location described by Paragraph (A).
 (c)  An eligible school district is entitled to an annual
 allotment of $10 for each student enrolled at a high school in the
 district that offers a pathway or program of study from each
 subdivision described by Subsection (a) if:
 (1)  each student enrolled at the high school takes a
 progressively more advanced mathematics course each year of
 enrollment; and
 (2)  for each of those pathways or programs of study, at
 least one student enrolled at the high school completes a course in
 the pathway or program of study.
 (d)  A school district that receives an allotment under
 Subsection (c) and Section 48.101 is entitled to receive an
 additional allotment in an amount equal to the product of 0.1 and
 the allotment to which the district is entitled under Section
 48.101 for each student for which the district receives an
 allotment under Subsection (c).  An open-enrollment charter school
 is not eligible for an allotment under this subsection.
 (e)  The commissioner by rule may establish requirements to
 ensure students enrolled in a high school to which Subsection (b)
 applies have meaningful access to the programs of study described
 by Subsections (a)(2) and (3).
 (f)  The agency may reduce the amount of a school district's
 allotment under this section if the agency determines that the
 district has not complied with any provision of this section.
 SECTION 1.23.  Section 48.202(a-1), Education Code, is
 amended to read as follows:
 (a-1)  For purposes of Subsection (a), the dollar amount
 guaranteed level of state and local funds per weighted student per
 cent of tax effort ("GL") for a school district is:
 (1)  the greater of the amount of district tax revenue
 per weighted student per cent of tax effort available to a school
 district at the 96th percentile of wealth per weighted student or
 the amount that results from multiplying the maximum amount of the
 basic allotment provided under Section 48.051 for the applicable
 school year [6,160, or the greater amount provided under Section
 48.051(b), if applicable,] by 0.016, for the first eight cents by
 which the district's maintenance and operations tax rate exceeds
 the district's tier one tax rate; and
 (2)  subject to Subsection (f), the amount that results
 from multiplying the maximum amount of the basic allotment provided
 under Section 48.051 for the applicable school year [$6,160, or the
 greater amount provided under Section 48.051(b), if applicable,] by
 0.008, for the district's maintenance and operations tax effort
 that exceeds the amount of tax effort described by Subdivision (1).
 SECTION 1.24.  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 Section 13.054 or this chapter that is
 not described by Section 48.266(a)(3) may offset the amount by
 which a district must reduce the district's revenue level under
 this section. 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 1.25.  Sections 48.277(d) and (e), Education Code,
 are amended to read as follows:
 (d)  A school district or open-enrollment charter school is
 not entitled to an allotment under Subsection (a) beginning with
 the 2029-2030 [2024-2025] school year.
 (e)  This section expires September 1, 2030 [2025].
 SECTION 1.26.  Subchapter F, Chapter 48, Education Code, is
 amended by adding Section 48.280 to read as follows:
 Sec. 48.280.  SALARY TRANSITION ALLOTMENT. (a) In the
 2023-2024, 2024-2025, and 2025-2026 school years, a school district
 is entitled to receive an annual salary transition allotment equal
 to the difference, if that amount is greater than zero, between:
 (1)  the amount calculated under Subsection (b); and
 (2)  the amount calculated under Subsection (c).
 (b)  The agency shall calculate a school district's value for
 Subsection (a)(1) by determining the difference in the amount the
 district must pay in compensation to employees on the minimum
 salary schedule under Section 21.402, as amended by H.B. 100, Acts
 of the 88th Legislature, Regular Session, 2023, from the amount
 paid in compensation to employees on the minimum salary schedule
 under that section as effective in the 2022-2023 school year, less
 the difference between:
 (1)  the amount of employer contributions under Section
 825.4035, Government Code, and Section 1575.203, Insurance Code,
 the district paid in the 2022-2023 school year for employees on the
 minimum salary schedule under Section 21.402; and
 (2)  the amount the district would have paid in
 employer contributions under Section 825.4035, Government Code,
 and Section 1575.203, Insurance Code, in the 2022-2023 school year
 for employees on the minimum salary schedule if the changes made to
 Section 21.402 by H.B. 100, Acts of the 88th Legislature, Regular
 Session, 2023, had been in effect.
 (c)  The agency shall calculate a school district's value for
 Subsection (a)(2) by determining the total maintenance and
 operations revenue for the current school year less the total
 maintenance and operations revenue that would have been available
 to the district using the basic allotment formula provided by
 Section 48.051 and the small and mid-sized allotment formulas
 provided by Section 48.101 as those sections existed on January 1,
 2023.
 (d)  Before making a final determination of the amount of an
 allotment to which a school district is entitled under this
 section, the agency shall ensure each school district has an
 opportunity to review and submit revised information to the agency
 for purposes of calculating the values under Subsection (a).
 (e)  A school district is entitled to an allotment in an
 amount equal to:
 (1)  for the 2026-2027 school year, two-thirds of the
 value determined under Subsection (a); and
 (2)  for the 2027-2028 school year, one-third of the
 value determined under Subsection (a).
 (f)  A school district is not entitled to an allotment under
 this section in the 2028-2029 school year or a later school year.
 (g)  This section expires September 1, 2029.
 SECTION 1.27.  Section 26.08(n), Tax Code, is amended to
 read as follows:
 (n)  For purposes of this section, the voter-approval tax
 rate of a school district is the sum of the following:
 (1)  the rate per $100 of taxable value that is equal to
 the district's maximum compressed tax rate, as determined under
 Section 48.2551, Education Code, for the current year;
 (2)  the greater of:
 (A)  the district's enrichment tax rate for the
 preceding tax year, less any amount by which the district is
 required to reduce the district's enrichment tax rate under Section
 48.202(f), Education Code, in the current tax year; or
 (B)  the rate of $0.06 [$0.05] per $100 of taxable
 value; and
 (3)  the district's current debt rate.
 SECTION 1.28.  The following provisions of the Education
 Code are repealed:
 (1)  Sections 21.402(b), (c), (c-1), (f), and (h);
 (2)  Sections 21.403(a) and (d); and
 (3)  Sections 48.111(c), (c-1), and (c-2).
 SECTION 1.29.  If both this Act and H.B. 11, 88th
 Legislature, Regular Session, 2023, are enacted, this Act prevails
 over H.B. 11, to the extent of any conflict, without regard to the
 date of enactment of this Act or H.B. 11.
 SECTION 1.30.  (a) Except as provided by Subsection (b) of
 this section or as otherwise provided by this article, this article
 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, the entirety of this article
 takes effect September 1, 2023.
 (b)  Sections 12.106(a-2), 13.054, 30.003, 48.051, 48.111,
 48.151(c) and (g), 48.202(a-1), 48.257(c), and 48.277(d) and (e),
 Education Code, and Section 26.08(n), Tax Code, as amended by this
 article, and Sections 48.0055, 48.1022, 48.116, 48.118, 48.160, and
 48.280, Education Code, as added by this article, take effect
 September 1, 2023.
 ARTICLE 2. CHANGES EFFECTIVE FOR 2024-2025 SCHOOL YEAR
 SECTION 2.01.  Section 8.051(d), Education Code, is amended
 to read as follows:
 (d)  Each regional education service center shall maintain
 core services for purchase by school districts and campuses. The
 core services are:
 (1)  training and assistance in:
 (A)  teaching each subject area assessed under
 Section 39.023; and
 (B)  providing instruction in personal financial
 literacy as required under Section 28.0021;
 (2)  training and assistance in providing each program
 that qualifies for a funding allotment under Section 48.102,
 48.1021, 48.104, 48.105, or 48.109;
 (3)  assistance specifically designed for a school
 district or campus assigned an unacceptable performance rating
 under Section 39.054;
 (4)  training and assistance to teachers,
 administrators, members of district boards of trustees, and members
 of site-based decision-making committees;
 (5)  assistance specifically designed for a school
 district that is considered out of compliance with state or federal
 special education requirements, based on the agency's most recent
 compliance review of the district's special education programs; and
 (6)  assistance in complying with state laws and rules.
 SECTION 2.02.  Section 29.002, Education Code, is amended to
 read as follows:
 Sec. 29.002.  DEFINITION. In this subchapter, "special
 services" means:
 (1)  special education, as defined by 20 U.S.C. Section
 1401(29) [instruction, which may be provided by professional and
 supported by paraprofessional personnel in the regular classroom or
 in an instructional arrangement described by Section 48.102]; and
 (2)  related services, as defined by 20 U.S.C. Section
 1401(26) [which are developmental, corrective, supportive, or
 evaluative services, not instructional in nature, that may be
 required for the student to benefit from special education
 instruction and for implementation of a student's individualized
 education program].
 SECTION 2.03.  Section 29.014(d), Education Code, is amended
 to read as follows:
 (d)  The basic allotment for a student enrolled in a district
 to which this section applies is adjusted by the tier of intensity
 of service defined in accordance with [weight for a homebound
 student under] Section 48.102 and designated by commissioner rule
 for use under this section [48.102(a)].
 SECTION 2.04.  Section 29.018, Education Code, is amended by
 adding Subsection (g) to read as follows:
 (g)  This section expires September 1, 2026.
 SECTION 2.05.  Sections 29.022(a), (a-1), (b), (c), (c-1),
 (d), (f), (h), (k), (l), (s), and (t), Education Code, are amended
 to read as follows:
 (a)  In order to promote student safety, on receipt of a
 written request authorized under Subsection (a-1), a school
 district or open-enrollment charter school shall provide
 equipment, including a video camera, to the school or schools in the
 district or the charter school campus or campuses specified in the
 request.  A school or campus that receives equipment as provided by
 this subsection shall place, operate, and maintain one or more
 video cameras in special education [self-contained] classrooms and
 other special education settings [in which a majority of the
 students in regular attendance are provided special education and
 related services and are assigned to one or more self-contained
 classrooms or other special education settings for at least 50
 percent of the instructional day], provided that:
 (1)  a school or campus that receives equipment as a
 result of the request by a parent or staff member is required to
 place equipment only in classrooms or settings in which the
 parent's child is in regular attendance or to which the staff member
 is assigned, as applicable; and
 (2)  a school or campus that receives equipment as a
 result of the request by a board of trustees, governing body,
 principal, or assistant principal is required to place equipment
 only in classrooms or settings identified by the requestor, if the
 requestor limits the request to specific classrooms or settings
 subject to this subsection.
 (a-1)  For purposes of Subsection (a):
 (1)  a parent of a child who receives special education
 services in one or more special education [self-contained]
 classrooms or other special education settings may request in
 writing that equipment be provided to the school or campus at which
 the child receives those services;
 (2)  a board of trustees or governing body may request
 in writing that equipment be provided to one or more specified
 schools or campuses at which one or more children receive special
 education services in special education [self-contained]
 classrooms or other special education settings;
 (3)  the principal or assistant principal of a school
 or campus at which one or more children receive special education
 services in special education [self-contained] classrooms or other
 special education settings may request in writing that equipment be
 provided to the principal's or assistant principal's school or
 campus; and
 (4)  a staff member assigned to work with one or more
 children receiving special education services in special education
 [self-contained] classrooms or other special education settings
 may request in writing that equipment be provided to the school or
 campus at which the staff member works.
 (b)  A school or campus that places a video camera in a
 special education classroom or other special education setting in
 accordance with Subsection (a) shall operate and maintain the video
 camera in the classroom or setting, as long as the classroom or
 setting continues to satisfy the requirements under Subsection (a),
 for the remainder of the school year in which the school or campus
 received the request, unless the requestor withdraws the request in
 writing.  If for any reason a school or campus will discontinue
 operation of a video camera during a school year, not later than the
 fifth school day before the date the operation of the video camera
 will be discontinued, the school or campus must notify the parents
 of each student in regular attendance in the classroom or setting
 that operation of the video camera will not continue unless
 requested by a person eligible to make a request under Subsection
 (a-1).  Not later than the 10th school day before the end of each
 school year, the school or campus must notify the parents of each
 student in regular attendance in the classroom or setting that
 operation of the video camera will not continue during the
 following school year unless a person eligible to make a request for
 the next school year under Subsection (a-1) submits a new request.
 (c)  Except as provided by Subsection (c-1), video cameras
 placed under this section must be capable of:
 (1)  covering all areas of the special education
 classroom or other special education setting, including a room
 attached to the classroom or setting used for time-out; and
 (2)  recording audio from all areas of the special
 education classroom or other special education setting, including a
 room attached to the classroom or setting used for time-out.
 (c-1)  The inside of a bathroom or any area in the special
 education classroom or other special education setting in which a
 student's clothes are changed may not be visually monitored, except
 for incidental coverage of a minor portion of a bathroom or changing
 area because of the layout of the classroom or setting.
 (d)  Before a school or campus activates a video camera in a
 special education classroom or other special education setting
 under this section, the school or campus shall provide written
 notice of the placement to all school or campus staff and to the
 parents of each student attending class or engaging in school
 activities in the classroom or setting.
 (f)  A school district or open-enrollment charter school may
 solicit and accept gifts, grants, and donations from any person for
 use in placing video cameras in special education classrooms or
 other special education settings under this section.
 (h)  A school district or open-enrollment charter school may
 not:
 (1)  allow regular or continual monitoring of video
 recorded under this section; or
 (2)  use video recorded under this section for teacher
 evaluation or for any other purpose other than the promotion of
 safety of students receiving special education services in a
 special education [self-contained] classroom or other special
 education setting.
 (k)  The commissioner may adopt rules to implement and
 administer this section, including rules regarding the special
 education classrooms and other special education settings to which
 this section applies.
 (l)  A school district or open-enrollment charter school
 policy relating to the placement, operation, or maintenance of
 video cameras under this section must:
 (1)  include information on how a person may appeal an
 action by the district or school that the person believes to be in
 violation of this section or a policy adopted in accordance with
 this section, including the appeals process under Section 7.057;
 (2)  require that the district or school provide a
 response to a request made under this section not later than the
 seventh school business day after receipt of the request by the
 person to whom it must be submitted under Subsection (a-3) that
 authorizes the request or states the reason for denying the
 request;
 (3)  except as provided by Subdivision (5), require
 that a school or a campus begin operation of a video camera in
 compliance with this section not later than the 45th school
 business day, or the first school day after the 45th school business
 day if that day is not a school day, after the request is authorized
 unless the agency grants an extension of time;
 (4)  permit the parent of a student whose admission,
 review, and dismissal committee has determined that the student's
 placement for the following school year will be in a special
 education classroom or other special education setting in which a
 video camera may be placed under this section to make a request for
 the video camera by the later of:
 (A)  the date on which the current school year
 ends; or
 (B)  the 10th school business day after the date
 of the placement determination by the admission, review, and
 dismissal committee; and
 (5)  if a request is made by a parent in compliance with
 Subdivision (4), unless the agency grants an extension of time,
 require that a school or campus begin operation of a video camera in
 compliance with this section not later than the later of:
 (A)  the 10th school day of the fall semester; or
 (B)  the 45th school business day, or the first
 school day after the 45th school business day if that day is not a
 school day, after the date the request is made.
 (s)  This section applies to the placement, operation, and
 maintenance of a video camera in a special education
 [self-contained] classroom or other special education setting
 during the regular school year and extended school year services.
 (t)  A video camera placed under this section is not required
 to be in operation for the time during which students are not
 present in the special education classroom or other special
 education setting.
 SECTION 2.06.  Sections 29.022(u)(3) and (4), Education
 Code, are amended to read as follows:
 (3)  "Special education classroom or other special
 education setting" means a classroom or setting primarily used for
 delivering special education services to students who spend on
 average less than 40 percent of an instructional day in a general
 education classroom or setting ["Self-contained classroom" does
 not include a classroom that is a resource room instructional
 arrangement under Section 48.102].
 (4)  "Staff member" means a teacher, related service
 provider, paraprofessional, counselor, or educational aide
 assigned to work in a special education [self-contained] classroom
 or other special education setting.
 SECTION 2.07.  Section 29.316(c), Education Code, is amended
 to read as follows:
 (c)  Not later than August 31 of each year, the agency, the
 division, and the center jointly shall prepare and post on the
 agency's, the division's, and the center's respective Internet
 websites a report on the language acquisition of children eight
 years of age or younger who are deaf or hard of hearing. The report
 must:
 (1)  include:
 (A)  existing data reported in compliance with
 federal law regarding children with disabilities; and
 (B)  information relating to the language
 acquisition of children who are deaf or hard of hearing and also
 have other disabilities;
 (2)  state for each child:
 (A)  the percentage of the instructional day
 [arrangement used with the child, as described by Section 48.102,
 including the time] the child spends on average in a general
 education setting [mainstream instructional arrangement];
 (B)  the specific language acquisition services
 provided to the child, including:
 (i)  the time spent providing those
 services; and
 (ii)  a description of any hearing
 amplification used in the delivery of those services, including:
 (a)  the type of hearing amplification
 used;
 (b)  the period of time in which the
 child has had access to the hearing amplification; and
 (c)  the average amount of time the
 child uses the hearing amplification each day;
 (C)  the tools or assessments used to assess the
 child's language acquisition and the results obtained;
 (D)  the preferred unique communication mode used
 by the child at home; and
 (E)  the child's age, race, and gender, the age at
 which the child was identified as being deaf or hard of hearing, and
 any other relevant demographic information the commissioner
 determines to likely be correlated with or have an impact on the
 child's language acquisition;
 (3)  compare progress in English literacy made by
 children who are deaf or hard of hearing to progress in that subject
 made by children of the same age who are not deaf or hard of hearing,
 by appropriate age range; and
 (4)  be redacted as necessary to comply with state and
 federal law regarding the confidentiality of student medical or
 educational information.
 SECTION 2.08.  Section 46.003(a), Education Code, is amended
 to read as follows:
 (a)  For each year, except as provided by Sections 46.005 and
 46.006, a school district is guaranteed a specified amount per
 student in state and local funds for each cent of tax effort, up to
 the maximum rate under Subsection (b), to pay the principal of and
 interest on eligible bonds issued to construct, acquire, renovate,
 or improve an instructional facility.  The amount of state support
 is determined by the formula:
 FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
 where:
 "FYA" is the guaranteed facilities yield amount of state
 funds allocated to the district for the year;
 "FYL" is the dollar amount guaranteed level of state and
 local funds per student per cent of tax effort, which is $35 or a
 greater amount for any year provided by appropriation;
 "AE" ["ADA"] is the greater of the number of students in
 average enrollment [daily attendance], as determined under Section
 48.0055 [48.005], in the district or 400;
 "BTR" is the district's bond tax rate for the current year,
 which is determined by dividing the amount budgeted by the district
 for payment of eligible bonds by the quotient of the district's
 taxable value of property as determined under Subchapter M, Chapter
 403, Government Code, or, if applicable, Section 48.258, divided by
 100; and
 "DPV" is the district's taxable value of property as
 determined under Subchapter M, Chapter 403, Government Code, or, if
 applicable, Section 48.258.
 SECTION 2.09.  Section 46.005, Education Code, is amended to
 read as follows:
 Sec. 46.005.  LIMITATION ON GUARANTEED AMOUNT. The
 guaranteed amount of state and local funds for a new project that a
 district may be awarded in any state fiscal biennium under Section
 46.003 for a school district may not exceed the lesser of:
 (1)  the amount the actual debt service payments the
 district makes in the biennium in which the bonds are issued; or
 (2)  the greater of:
 (A)  $100,000; or
 (B)  the product of the number of students in
 average enrollment [daily attendance] in the district multiplied by
 $250.
 SECTION 2.10.  Section 46.006(g), Education Code, is amended
 to read as follows:
 (g)  In this section, "wealth per student" means a school
 district's taxable value of property as determined under Subchapter
 M, Chapter 403, Government Code, or, if applicable, Section 48.258,
 divided by the district's average enrollment [daily attendance] as
 determined under Section 48.0055 [48.005].
 SECTION 2.11.  Section 46.032(a), Education Code, is amended
 to read as follows:
 (a)  Each school district is guaranteed a specified amount
 per student in state and local funds for each cent of tax effort to
 pay the principal of and interest on eligible bonds. The amount of
 state support, subject only to the maximum amount under Section
 46.034, is determined by the formula:
 EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
 where:
 "EDA" is the amount of state funds to be allocated to the
 district for assistance with existing debt;
 "EDGL" is the dollar amount guaranteed level of state and
 local funds per student per cent of tax effort, which is the lesser
 of:
 (1)  $40 or a greater amount for any year provided by
 appropriation; or
 (2)  the amount that would result in a total additional
 amount of state funds under this subchapter for the current year
 equal to $60 million in excess of the state funds to which school
 districts would have been entitled under this section if the
 guaranteed level amount were $35;
 "AE" ["ADA"] is the number of students in average enrollment
 [daily attendance], as determined under Section 48.0055 [48.005],
 in the district;
 "EDTR" is the existing debt tax rate of the district, which is
 determined by dividing the amount budgeted by the district for
 payment of eligible bonds by the quotient of the district's taxable
 value of property as determined under Subchapter M, Chapter 403,
 Government Code, or, if applicable, under Section 48.258, divided
 by 100; and
 "DPV" is the district's taxable value of property as
 determined under Subchapter M, Chapter 403, Government Code, or, if
 applicable, under Section 48.258.
 SECTION 2.12.  Section 48.051, Education Code, is amended by
 amending Subsection (a) and adding Subsection (a-1) to read as
 follows:
 (a)  For each student in average daily attendance, not
 including the time students spend each day in special education
 programs in a setting [an instructional arrangement] other than a
 general education setting [mainstream or career and technology
 education programs], for which an additional allotment is made
 under Subchapter C, a district is entitled to an allotment equal to
 [the lesser of $6,160 or] the amount that results from the following
 formula:
 A = B [$6,160] X TR/MCR
 where:
 "A" is the allotment to which a district is entitled;
 "B" is the base amount, which equals the greater of:
 (1)  $6,300;
 (2)  an amount equal to the district's base amount under
 this section for the preceding school year; or
 (3)  the amount appropriated under Subsection (b);
 "TR" is the district's tier one maintenance and operations
 tax rate, as provided by Section 45.0032; and
 "MCR" is the district's maximum compressed tax rate, as
 determined under Section 48.2551.
 (a-1)  Notwithstanding Subsection (a), for the second year
 of each state fiscal biennium, the commissioner shall adjust the
 value of "B" under that subsection for the preceding state fiscal
 year by a factor equal to the average annual percentage increase, if
 any, in the Texas Consumer Price Index for the preceding 10 years.
 This subsection expires September 1, 2025.
 SECTION 2.13.  Section 48.102, Education Code, is amended to
 read as follows:
 Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in
 average daily attendance in a special education program under
 Subchapter A, Chapter 29, [in a mainstream instructional
 arrangement,] a school district is entitled to 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 a weight in an amount set by the
 legislature in the General Appropriations Act for the highest tier
 of intensity of service for which the student qualifies
 [1.15].  [For each full-time equivalent student in average daily
 attendance in a special education program under Subchapter A,
 Chapter 29, in an instructional arrangement other than a mainstream
 instructional arrangement, a district is entitled to 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 a weight determined
 according to instructional arrangement as follows:
 [Homebound             5.0
 [Hospital class             3.0
 [Speech therapy             5.0
 [Resource room             3.0
 [Self-contained, mild and moderate,
 regular campus             3.0
 [Self-contained, severe, regular campus           3.0
 [Off home campus             2.7
 [Nonpublic day school             1.7
 [Vocational adjustment class             2.3]
 (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and
 2025-2026 school years, the amount of an allotment under this
 section shall be determined in accordance with Section 48.1023.
 This subsection expires September 1, 2026.
 (b)  The commissioner by rule shall define seven tiers of
 intensity of service for use in determining funding under this
 section. The commissioner must include one tier specifically
 addressing students receiving special education services in
 residential placement [A special instructional arrangement for
 students with disabilities residing in care and treatment
 facilities, other than state schools, whose parents or guardians do
 not reside in the district providing education services shall be
 established by commissioner rule.  The funding weight for this
 arrangement shall be 4.0 for those students who receive their
 education service on a local school district campus.  A special
 instructional arrangement for students with disabilities residing
 in state schools shall be established by commissioner rule with a
 funding weight of 2.8].
 (c)  [For funding purposes, the number of contact hours
 credited per day for each student in the off home campus
 instructional arrangement may not exceed the contact hours credited
 per day for the multidistrict class instructional arrangement in
 the 1992-1993 school year.
 [(d)  For funding purposes the contact hours credited per day
 for each student in the resource room;  self-contained, mild and
 moderate; and self-contained, severe, instructional arrangements
 may not exceed the average of the statewide total contact hours
 credited per day for those three instructional arrangements in the
 1992-1993 school year.
 [(e)  The commissioner by rule shall prescribe the
 qualifications an instructional arrangement must meet in order to
 be funded as a particular instructional arrangement under this
 section.  In prescribing the qualifications that a mainstream
 instructional arrangement must meet, the commissioner shall
 establish requirements that students with disabilities and their
 teachers receive the direct, indirect, and support services that
 are necessary to enrich the regular classroom and enable student
 success.
 [(f)  In this section, "full-time equivalent student" means
 30 hours of contact a week between a special education student and
 special education program personnel.
 [(g)]  The commissioner shall adopt rules and procedures
 governing contracts for residential and day program placement of
 [special education] students receiving special education
 services.
 (d)  [The legislature shall provide by appropriation for the
 state's share of the costs of those placements.
 [(h)]  At least 55 percent of the funds allocated under this
 section must be used in the special education program under
 Subchapter A, Chapter 29.
 (e) [(i)]  The agency shall ensure [encourage] the placement
 of students in special education programs, including students in
 residential placement [instructional arrangements], in the least
 restrictive environment appropriate for their educational needs.
 (f) [(j)]  A school district that provides an extended year
 program required by federal law for special education students who
 may regress is entitled to receive funds in an amount equal to 75
 percent, or a lesser percentage determined by the commissioner, of
 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 for each [full-time equivalent] student in
 average daily attendance, multiplied by the amount designated for
 the highest tier of intensity of service for which the student
 qualifies [student's instructional arrangement] under this
 section, for each day the program is provided divided by the number
 of days in the minimum school year. The total amount of state
 funding for extended year services under this section may not
 exceed $10 million per year.  A school district may use funds
 received under this section only in providing an extended year
 program.
 (g) [(k)]  From the total amount of funds appropriated for
 special education under this section, the commissioner shall
 withhold an amount specified in the General Appropriations Act, and
 distribute that amount to school districts for programs under
 Section 29.014.  The program established under that section is
 required only in school districts in which the program is financed
 by funds distributed under this subsection and any other funds
 available for the program.  After deducting the amount withheld
 under this subsection from the total amount appropriated for
 special education, the commissioner shall reduce each district's
 allotment proportionately and shall allocate funds to each district
 accordingly.
 (h)  Not later than December 1 of each even-numbered year,
 the commissioner shall submit to the Legislative Budget Board, for
 purposes of the allotment under this section, proposed weights for
 the tiers of intensity of service for the next state fiscal
 biennium.
 SECTION 2.14.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Sections 48.1021 and 48.1023 to read as follows:
 Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
 (a) For each six-week period in which a student in a special
 education program under Subchapter A, Chapter 29, receives eligible
 special education services, a school district is entitled to an
 allotment in an amount set by the legislature in the General
 Appropriations Act for the service group for which the student is
 eligible.
 (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and
 2025-2026 school years, the amount of an allotment under this
 section shall be determined in accordance with Section 48.1023.
 This subsection expires September 1, 2026.
 (b)  The commissioner by rule shall establish four service
 groups for use in determining funding under this section. In
 establishing the groups, the commissioner must consider the level
 of services, equipment, and technology required to meet the needs
 of students receiving special education services.
 (c)  A school district is entitled to receive an allotment
 under this section for each service group for which a student is
 eligible.
 (d)  A school district is entitled to the full amount of an
 allotment under this section for a student receiving eligible
 special education services during any part of a six-week period.
 (e)  At least 55 percent of the funds allocated under this
 section must be used for a special education program under
 Subchapter A, Chapter 29.
 (f)  Not later than December 1 of each even-numbered year,
 the commissioner shall submit to the Legislative Budget Board, for
 purposes of the allotment under this section, proposed amounts of
 funding for the service groups for the next state fiscal biennium.
 Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING. (a)
 For the 2024-2025 and 2025-2026 school years, the commissioner may
 adjust weights or amounts provided under Section 48.102 or 48.1021
 as necessary to ensure compliance with requirements regarding
 maintenance of state financial support under 20 U.S.C. Section
 1412(a)(18) and maintenance of local financial support under
 applicable federal law.
 (b)  For the 2024-2025 and 2025-2026 school years, the
 commissioner shall determine the formulas through which school
 districts receive funding under Sections 48.102 and 48.1021. In
 determining the formulas, the commissioner may combine the methods
 of funding under those sections with the method of funding provided
 by Section 48.102, as it existed on January 1, 2023.
 (c)  For the 2026-2027 school year, the commissioner may
 adjust the weights or amounts set by the legislature in the General
 Appropriations Act for purposes of Section 48.102 or 48.1021.
 Before making an adjustment under this subsection, the commissioner
 shall notify and must receive approval from the Legislative Budget
 Board.
 (d)  Notwithstanding any other provision of this section,
 the sum of funding provided under Sections 48.102 and 48.1021 for
 the 2024-2025 or for the 2025-2026 school year as adjusted under
 this section may not exceed the sum of:
 (1)  funding that would have been provided under
 Section 48.102, as it existed on January 1, 2023; and
 (2)  the amount set by the legislature in the General
 Appropriations Act.
 (e)  Each school district and open-enrollment charter school
 shall report to the agency information necessary to implement this
 section.
 (f)  The agency shall provide technical assistance to school
 districts and open-enrollment charter schools to ensure a
 successful transition in funding formulas for special education.
 (g)  This section expires September 1, 2028.
 SECTION 2.15.  Section 48.103(c), Education Code, is amended
 to read as follows:
 (c)  A school district may receive funding for a student
 under each provision of this section, [and] Section 48.102, and
 Section 48.1021 for which [if] the student qualifies [satisfies the
 requirements of both sections].
 SECTION 2.16.  Sections 48.104(a), (d), and (e), Education
 Code, are amended to read as follows:
 (a)  For each student who does not have a disability and
 resides in a residential placement facility in a district in which
 the student's parent or legal guardian does not reside, a district
 is entitled to an annual allotment equal to the basic allotment
 multiplied by 0.2 or, if the student is educationally
 disadvantaged, 0.2755 [0.275].  For each full-time equivalent
 student who is in a remedial and support program under Section
 29.081 because the student is pregnant, a district is entitled to an
 annual allotment equal to the basic allotment multiplied by 2.41.
 (d)  The weights assigned to the five tiers of the index
 established under Subsection (c) are, from least to most severe
 economic disadvantage, 0.2255 [0.225], 0.238 [0.2375], 0.2505
 [0.25], 0.263 [0.2625], and 0.2755 [0.275].
 (e)  If insufficient data is available for any school year to
 evaluate the level of economic disadvantage in a census block
 group, a school district is entitled to an annual allotment equal to
 the basic allotment multiplied by 0.2255 [0.225] for each student
 who is educationally disadvantaged and resides in that census block
 group.
 SECTION 2.17.  Section 48.105(a), Education Code, is amended
 to read as follows:
 (a)  For each student in average enrollment [daily
 attendance] in a bilingual education or special language program
 under Subchapter B, Chapter 29, a district is entitled to an annual
 allotment equal to the basic allotment multiplied by:
 (1)  for an emergent bilingual student, as defined by
 Section 29.052:
 (A)  0.1; or
 (B)  0.15 if the student is in a bilingual
 education program using a dual language immersion/one-way or
 two-way program model; and
 (2)  for a student not described by Subdivision (1),
 0.05 if the student is in a bilingual education program using a dual
 language immersion/two-way program model.
 SECTION 2.18.  Sections 48.106(a) and (a-1), Education Code,
 are amended to read as follows:
 (a)  For each [full-time equivalent] student in average
 enrollment [daily attendance] in an approved career and technology
 education program in grades 7 through 12, a district is entitled to
 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)  0.1 [1.1] for a [full-time equivalent] student in
 career and technology education courses not in an approved program
 of study;
 (2)  0.28 [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; and
 (3)  0.47 [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 enrollment [daily attendance], a district
 is entitled to $50 for each of the following in which the student is
 enrolled:
 (1)  a campus designated as a P-TECH school under
 Section 29.556; or
 (2)  a campus that is a member of the New Tech Network
 and that focuses on project-based learning and work-based
 education.
 SECTION 2.19.  Section 48.107(a), Education Code, is amended
 to read as follows:
 (a)  Except as provided by Subsection (b), for each student
 in average enrollment [daily attendance] who is using a public
 education grant under Subchapter G, Chapter 29, to attend school in
 a district other than the district in which the student resides, the
 district in which the student attends school is entitled to an
 annual allotment equal to the basic allotment multiplied by a
 weight of 0.1.
 SECTION 2.20.  Section 48.108(a), Education Code, is amended
 to read as follows:
 (a)  For each student in average enrollment [daily
 attendance] in kindergarten through third grade, a school district
 is entitled to an annual allotment equal to the basic allotment
 multiplied by 0.1 if the student is:
 (1)  educationally disadvantaged; or
 (2)  an emergent bilingual student, as defined by
 Section 29.052, and is in a bilingual education or special language
 program under Subchapter B, Chapter 29.
 SECTION 2.21.  Section 48.109(c), Education Code, is amended
 to read as follows:
 (c)  Not more than five percent of a district's students in
 average enrollment [daily attendance] are eligible for funding
 under this section.
 SECTION 2.22.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Section 48.119 to read as follows:
 Sec. 48.119.  BOOK SAFETY ALLOTMENT. (a)  For each student
 in average enrollment, a school district is entitled to an annual
 allotment of $3 or a greater amount provided by appropriation.
 (b)  Funds allocated under this section may be used only to
 ensure that school library books and related materials meet the
 standards adopted under Section 33.021.
 (c)  The agency shall adopt a list of approved vendors at
 which a school district may spend funds allocated under this
 section for the purpose described by Subsection (b).
 SECTION 2.23.  Section 48.153, Education Code, is amended to
 read as follows:
 Sec. 48.153.  DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
 PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
 charter school is entitled to $275 for each student in average
 enrollment [daily attendance] who:
 (1)  resides in a residential placement facility; or
 (2)  is at a district or school or a campus of the
 district or school that is designated as a dropout recovery school
 under Section 39.0548.
 SECTION 2.24.  Section 48.257, Education Code, is amended by
 amending Subsection (a) and adding Subsection (b-1) to read as
 follows:
 (a)  Subject to Subsection (b) and except as provided by
 Subsection (b-1), if a school district's tier one local share under
 Section 48.256 exceeds the district's entitlement under Section
 48.266(a)(1) less the district's distribution from the state
 available school fund, the district must reduce the district's tier
 one revenue level in accordance with Chapter 49 to a level not to
 exceed the district's entitlement under Section 48.266(a)(1) less
 the district's distribution from the state available school fund.
 (b-1)  This subsection applies only to a school district to
 which Subsection (a) applies, that received an allotment under
 Section 48.277 for the 2023-2024 school year, and that adopted a
 maintenance and operations tax rate for the 2022-2023 school year
 equal to or greater than the sum of the district's maximum
 compressed tax rate, as determined under Section 48.2551, and five
 cents.  Notwithstanding Subsection (a), if, after reducing the tier
 one revenue level of a school district to which this subsection
 applies as required under Subsection (a), the maintenance and
 operations revenue per student in average daily attendance of the
 district for a school year would be less than the maintenance and
 operations revenue per student in average daily attendance
 available to the district for the 2023-2024 school year, excluding
 any funding provided to the district under Sections 48.279 and
 48.281, the agency shall adjust the amount of the reduction
 required in the district's tier one revenue level under Subsection
 (a) up to the amount of local funds necessary to provide the
 district with the amount of maintenance and operations revenue per
 student in average daily attendance available to the district for
 the 2023-2024 school year.
 SECTION 2.25.   Section 48.279(e), Education Code, is
 amended to read as follows:
 (e)  After the commissioner has replaced any withheld
 federal funds as provided by Subsection (d), the commissioner shall
 distribute the remaining amount, if any, of funds described by
 Subsection (a) to proportionately increase funding for the special
 education allotment under Section 48.102 and the special education
 service group allotment under Section 48.1021.
 SECTION 2.26.  Section 48.106(b)(2), Education Code, is
 repealed.
 SECTION 2.27.  This article takes effect September 1, 2024.