Texas 2023 - 88th Regular

Texas House Bill HB3781 Latest Draft

Bill / Introduced Version Filed 03/14/2023

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                            By: Jetton H.B. No. 3781


 A BILL TO BE ENTITLED
 AN ACT
 relating to special education in public schools, including the
 special education allotment under the Foundation School Program, an
 education savings account program for certain children with
 disabilities, and a grant program to reimburse public schools for
 the cost of certain employer contributions for retirees of the
 Teacher Retirement System of Texas employed to teach special
 education.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Effective September 1, 2024, 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.  Chapter 22, Education Code, is amended by adding
 Subchapter E to read as follows:
 SUBCHAPTER E.  RETIRED SPECIAL EDUCATION TEACHER GRANT PROGRAM
 Sec. 22.151.  RETIRED SPECIAL EDUCATION TEACHER GRANT
 PROGRAM. (a)  From money appropriated or otherwise available for
 the purpose, the commissioner shall establish a grant program to
 reimburse school districts and open-enrollment charter schools for
 the cost of required contributions under Section 825.4092,
 Government Code, for the employment of a retiree hired to:
 (1)  teach special education; or
 (2)  provide services related to special education.
 (b)  A grant received under the program may only be used for
 the cost of required contributions for the employment of a retiree:
 (1)  who retired before September 1, 2022; or
 (2)  as provided by the General Appropriations Act.
 (c)  If the amount of grant requests under the program
 exceeds the amount appropriated or otherwise available for the
 purpose, the commissioner shall proportionately reduce the amount
 of each grant.
 SECTION 3.  Section 29.001, Education Code, is amended to
 read as follows:
 Sec. 29.001.  IMPLEMENTATION OF SPECIAL EDUCATION LAW
 [STATEWIDE PLAN].  (a)  As the state education agency responsible
 for carrying out the purposes of Part B, Individuals with
 Disabilities Education Act (20 U.S.C. Section 1411 et seq.), the
 [The] agency shall develop, and revise [modify] as necessary, a
 comprehensive system to ensure statewide and local compliance
 [design, consistent] with federal and state law related to special
 education[, for the delivery of services to children with
 disabilities in this state that includes rules for the
 administration and funding of the special education program so that
 a free appropriate public education is available to all of those
 children between the ages of three and 21].
 (b)  The comprehensive system [statewide design] shall
 include the provision of services primarily through school
 districts and shared services arrangements, supplemented by
 regional education service centers.
 (c)  The comprehensive system [agency] shall focus on
 maximizing student outcomes and include [also develop and implement
 a statewide plan with programmatic content that includes procedures
 designed to]:
 (1)  rulemaking, technical assistance, guidance
 documents, monitoring protocols, and other resources as necessary
 to implement and ensure compliance with federal and state law
 related to special education [ensure state compliance with
 requirements for supplemental federal funding for all
 state-administered programs involving the delivery of
 instructional or related services to students with disabilities];
 (2)  the facilitation of [facilitate] interagency
 coordination when other state agencies are involved in the delivery
 of instructional or related services to students with disabilities;
 (3)  the pursuit of [periodically assess statewide
 personnel needs in all areas of specialization related to special
 education and pursue] strategies to meet statewide special
 education and related services personnel [those] needs [through a
 consortium of representatives from regional education service
 centers, local education agencies, and institutions of higher
 education and through other available alternatives];
 (4)  ensuring [ensure] that regional education service
 centers throughout the state maintain a regional support function,
 which may include direct service delivery and a component designed
 to facilitate the placement of students with disabilities who
 cannot be appropriately served in their resident districts;
 (5)  [allow the agency to] effectively monitoring
 [monitor] and periodically conducting [conduct] site visits of all
 school districts to ensure that rules adopted under this subchapter
 [section] are applied in a consistent and uniform manner, to ensure
 that districts are complying with those rules, and to ensure that
 annual statistical reports filed by the districts and not otherwise
 available through the Public Education Information Management
 System under Sections 48.008 and 48.009 are accurate and complete;
 and
 (6)  the provision of training and technical assistance
 to ensure that:
 (A)  appropriately trained personnel are involved
 in the diagnostic and evaluative procedures operating in all
 districts and that those personnel routinely serve on district
 admissions, review, and dismissal committees;
 (B)  [(7) ensure that] an individualized
 education program for each student with a disability is properly
 developed, implemented, and maintained in the least restrictive
 environment that is appropriate to meet the student's educational
 needs;
 (C)  [(8) ensure that,] when appropriate, each
 student with a disability is provided an opportunity to participate
 in career and technology and physical education classes[, in
 addition to participating in regular or special classes];
 (D)  [(9) ensure that] each student with a
 disability is provided necessary related services;
 (E)  [(10) ensure that] an individual assigned to
 act as a surrogate parent for a child with a disability, as provided
 by 20 U.S.C. Section 1415(b), is required to:
 (i) [(A)]  complete a training program that
 complies with minimum standards established by agency rule;
 (ii) [(B)]  visit the child and the child's
 school;
 (iii) [(C)]  consult with persons involved
 in the child's education, including teachers, caseworkers,
 court-appointed volunteers, guardians ad litem, attorneys ad
 litem, foster parents, and caretakers;
 (iv) [(D)]  review the child's educational
 records;
 (v) [(E)]  attend meetings of the child's
 admission, review, and dismissal committee;
 (vi) [(F)]  exercise independent judgment
 in pursuing the child's interests; and
 (vii) [(G)]  exercise the child's due
 process rights under applicable state and federal law; and
 (F) [(11)  ensure that] each district develops a
 process to be used by a teacher who instructs a student with a
 disability in a regular classroom setting:
 (i) [(A)]  to request a review of the
 student's individualized education program;
 (ii) [(B)]  to provide input in the
 development of the student's individualized education program;
 (iii) [(C)]  that provides for a timely
 district response to the teacher's request; and
 (iv) [(D)]  that provides for notification
 to the student's parent or legal guardian of that response.
 SECTION 4.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Section 29.0012 to read as follows:
 Sec. 29.0012.  ANNUAL MEETING ON SPECIAL EDUCATION. (a)  At
 least once each year, the board of trustees of a school district or
 the governing body of an open-enrollment charter school shall
 include during a public meeting the discussion of the performance
 of students receiving special education services at the district or
 school.
 (b)  The agency by rule shall adopt a set of performance
 indicators for measuring and evaluating the quality of learning and
 achievement for students receiving special education services at
 the school district or open-enrollment charter school to be
 considered at a meeting held under this section.  The indicators
 must include performance on the college, career, or military
 readiness outcomes described by Section 48.110.
 SECTION 5.  Section 29.003, Education Code, is amended to
 read as follows:
 Sec. 29.003.  ELIGIBILITY CRITERIA.  (a)  The agency shall
 develop specific eligibility criteria based on the general
 classifications established by this section and in accordance with
 federal law [with reference to contemporary diagnostic or
 evaluative terminologies and techniques].  Eligible students with
 disabilities shall enjoy the right to a free appropriate public
 education, which may include instruction in the regular classroom,
 instruction through special teaching, or instruction through
 contracts approved under this subchapter.  Instruction shall be
 supplemented by the provision of related services when appropriate.
 (b)  A student is eligible to participate in a school
 district's special education program [if the student]:
 (1)  from birth through [is not more than] 21 years of
 age if the student [and] has a visual [or auditory] impairment or is
 deaf or hard of hearing and that disability prevents the student
 from being adequately or safely educated in public school without
 the provision of special education services; [or]
 (2)  from three years of age through five years of age
 if the student is experiencing developmental delays as described by
 20 U.S.C. Section 1401(3)(B) and defined by commissioner rule; or
 (3)  from 3 years of age through [is at least three but
 not more than] 21 years of age if the student [and] has one or more
 of the [following] disabilities described by 20 U.S.C. Section
 1401(3)(A) and that disability prevents the student from being
 adequately or safely educated in public school without the
 provision of special education services[:
 [(A)  physical disability;
 [(B)  intellectual or developmental disability;
 [(C)  emotional disturbance;
 [(D)  learning disability;
 [(E)  autism;
 [(F)  speech disability; or
 [(G)  traumatic brain injury].
 SECTION 6.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Section 29.0055 to read as follows:
 Sec. 29.0055.  LOCAL INTELLECTUAL AND DEVELOPMENTAL
 DISABILITY AUTHORITY INFORMATION. At the meeting at which a child's
 initial individualized education program is developed, the school
 district shall provide to the child's parent the contact
 information for the local intellectual and developmental
 disability authority for the region in which the district is
 located for use in discussing services or public benefits that may
 provide additional support to the child.
 SECTION 7.  Subchapter A, Chapter 29 Education Code, is
 amended by adding Section 29.0056 to read as follows:
 Sec. 29.0056.  INFORMATION REGARDING STATE SUPPORTED
 LIVING CENTERS.  (a) At an admission, review, dismissal meeting
 when residential placement is discussed, the school district shall
 provide to the child's parent or legal guardian the information
 regarding state supported living centers developed under
 Subsection (b) for use in discussing possible residential options.
 (b)  The Health and Human Services Commission, in
 collaboration with the agency and stakeholders representing the
 full continuum of educational residential placement options, shall
 develop materials to be provided to a parent of a child who may
 qualify for placement in a state supported living center.
 (c)  The agency shall make the materials developed under
 Subsection (b) available for school districts.
 SECTION 8.  Section 29.008, Education Code, is amended by
 amending Subsections (a) and (b) and adding Subsection (a-1) to
 read as follows:
 (a)  The commissioner shall establish a list of approved
 public or private facilities, institutions, or agencies inside or
 outside of this state that a [A] school district, shared services
 arrangement unit, or regional education service center may contract
 with [a public or private facility, institution, or agency inside
 or outside of this state] for the provision of services to students
 with disabilities in a residential placement.  The commissioner may
 approve either the whole or a part of a facility or program.
 (a-1)  Each contract described by this section [for
 residential placement] must be approved by the commissioner.  The
 commissioner may approve a [residential placement] contract under
 this section only after at least a programmatic evaluation of
 personnel qualifications, costs, adequacy of physical plant and
 equipment, and curriculum content.  [The commissioner may approve
 either the whole or a part of a facility or program.]
 (b)  Except as provided by Subsection (c), costs of an
 approved contract for residential placement may be paid from a
 combination of federal, state, and local funds.  The local share of
 the total contract cost for each student is that portion of the
 local tax effort that exceeds the district's local fund assignment
 under Section 48.256, divided by the average daily attendance in
 the district.  If the contract involves a private facility, the
 state share of the total contract cost is that amount remaining
 after subtracting the local share.  If the contract involves a
 public facility, the state share is that amount remaining after
 subtracting the local share from the portion of the contract that
 involves the costs of instructional and related services.  For
 purposes of this subsection, "local tax effort" means the total
 amount of money generated by taxes imposed for debt service and
 maintenance and operation less any amounts paid into a tax
 increment fund under Chapter 311, Tax Code.  This subsection
 expires September 1, 2027.
 SECTION 9.  The heading to Section 29.009, Education Code,
 is amended to read as follows:
 Sec. 29.009.  PUBLIC NOTICE CONCERNING EARLY CHILDHOOD
 SPECIAL EDUCATION [PRESCHOOL] PROGRAMS [FOR STUDENTS WITH
 DISABILITIES].
 SECTION 10.  Section 29.010, Education Code, is amended to
 read as follows:
 Sec. 29.010.  GENERAL SUPERVISION AND COMPLIANCE.  (a)  The
 agency shall develop [adopt] and implement a comprehensive system
 for monitoring school district compliance with federal and state
 laws relating to special education.  The monitoring system must
 include a comprehensive cyclical process and a targeted risk-based
 process [provide for ongoing analysis of district special education
 data and of complaints filed with the agency concerning special
 education services and for inspections of school districts at
 district facilities].  The agency shall establish criteria and
 instruments for use in determining district compliance under this
 section [use the information obtained through analysis of district
 data and from the complaints management system to determine the
 appropriate schedule for and extent of the inspection].
 (b)  As part of the monitoring process [To complete the
 inspection], the agency must obtain information from parents and
 teachers of students in special education programs in the district.
 (c)  The agency shall develop and implement a system of
 interventions and sanctions for school districts the agency
 identifies as being in noncompliance with [whose most recent
 monitoring visit shows a failure to comply with major requirements
 of] the Individuals with Disabilities Education Act (20 U.S.C.
 Section 1400 et seq.), federal regulations, state statutes, or
 agency requirements necessary to carry out federal law or
 regulations or state law relating to special education.
 (d)  The agency shall establish a graduated process of
 sanctions to apply to [For] districts that remain in noncompliance
 for more than one year[, the first stage of sanctions shall begin
 with annual or more frequent monitoring visits].  The [Subsequent]
 sanctions shall [may] range in severity and may include [up to] the
 withholding of funds.  If funds are withheld, the agency may use the
 funds to provide, through alternative arrangements, services to
 students and staff members in the district from which the funds are
 withheld.
 (e)  The agency's complaint management division shall
 develop a system for expedited investigation and resolution of
 complaints concerning a district's failure to provide special
 education or related services to a student eligible to participate
 in the district's special education program.
 [(f)  This section does not create an obligation for or
 impose a requirement on a school district or open-enrollment
 charter school that is not also created or imposed under another
 state law or a federal law.]
 SECTION 11.  Effective September 1, 2024, 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 12.  Section 29.018, Education Code, is amended by
 adding Subsection (g) to read as follows:
 (g)  This section expires September 1, 2026.
 SECTION 13.  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 14.  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 15.  Section 29.026(i), Education Code, is amended
 to read as follows:
 (i)  A program selected to receive a grant under this section
 is [The commissioner shall select programs and award grant funds to
 those programs beginning in the 2018-2019 school year.  The
 selected programs are] to be funded for two years.
 SECTION 16.  Section 29.027(d), Education Code, is amended
 to read as follows:
 (d)  A grant under this section is [The commissioner shall
 select grant recipients and award grant funds beginning in the
 2021-2022 school year.  The grants are] to be awarded for two years.
 SECTION 17.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Section 29.029 to read as follows:
 Sec. 29.029.  SUPPORTS FOR RECRUITING SPECIAL EDUCATION
 STAFF.  (a)  From funds appropriated or otherwise available for the
 purpose, the agency shall provide grants to school districts and
 open-enrollment charter schools to increase the number of qualified
 and appropriately credentialed special education staff, including
 special education teachers, special education paraprofessionals,
 evaluation personnel, ancillary instruction personnel, and related
 service personnel.
 (b)  A school district or open-enrollment charter school
 that receives a grant under this section shall require each person
 the district or school uses the grant money to assist in becoming
 licensed, certified, or otherwise credentialed as described by
 Subsection (a) to work at the district or school for a period
 established by commissioner rule.
 (c)  The commissioner shall adopt rules establishing the
 period of required employment described by Subsection (b) and any
 other rules necessary to implement this section.
 SECTION 18.  The heading to Subchapter A-1, Chapter 29,
 Education Code, is amended to read as follows:
 SUBCHAPTER A-1.  PARENT-DIRECTED [SUPPLEMENTAL SPECIAL EDUCATION]
 SERVICES FOR STUDENTS RECEIVING SPECIAL EDUCATION Services
 [PROGRAM]
 SECTION 19.  Sections 29.041(2) and (3), Education Code, are
 amended to read as follows:
 (2)  "Supplemental [special education] instructional
 materials" includes textbooks, computer hardware or software,
 other technological devices, and other materials suitable for
 addressing an educational need of a student receiving special
 education services under Subchapter A.
 (3)  "Supplemental [special education] services" means
 an additive service that provides an educational benefit to a
 student receiving special education services under Subchapter A,
 including:
 (A)  occupational therapy, physical therapy, and
 speech therapy; and
 (B)  private tutoring and other supplemental
 private instruction or programs.
 SECTION 20.  Sections 29.042(a), (c), and (d) Education
 Code, are amended to read as follows:
 (a)  The agency by rule shall establish and administer a
 parent-directed [supplemental special education services and
 instructional materials] program for students receiving special
 education services, through which a parent may direct supplemental
 services and supplemental instructional materials for the parent's
 student [students] who meets [meet] the eligibility requirements
 for participation in the program.  Subject to Subsection (c), the
 agency shall provide each student approved as provided by this
 subchapter a grant in accordance with Section 48.305 [of not more
 than $1,500] to purchase supplemental [special education] services
 and supplemental [special education] instructional materials.
 (c)  [The commissioner shall set aside an amount not to
 exceed $30 million from the total amount of funds appropriated for
 each state fiscal year to fund the program under this section.  For
 each state fiscal year, the total amount provided for student
 grants under Subsection (a) may not exceed the amount set aside by
 the commissioner under this subsection].
 [(d)]  The agency shall designate one or more regional
 education service centers to administer the program.
 SECTION 21.  Section 29.045, Education Code, is amended to
 read as follows:
 Sec. 29.045.  APPROVAL OF APPLICATION; ASSIGNMENT OF
 ACCOUNT.  The [Subject to available funding the] agency shall
 approve each student who meets the program eligibility criteria
 established under Section 29.044 and assign to the student an
 account maintained under Section 29.042(b).  The account may only
 be used by the student's parent to purchase supplemental [special
 education] services or supplemental [special education]
 instructional materials for the student, subject to Sections 29.046
 and 29.047.
 SECTION 22.  Sections 29.046(a) and (b), Education Code, are
 amended to read as follows:
 (a)  Money in an account assigned to a student under Section
 29.045 may be used only for supplemental [special education]
 services and supplemental [special education] instructional
 materials.
 (b)  Supplemental [special education] services must be
 provided by an agency-approved provider.
 SECTION 23.  Sections 29.047(a), (c), (d), and (e),
 Education Code, are amended to read as follows:
 (a)  The agency shall establish criteria necessary for
 agency approval for each category of provider of a professional
 service that is a supplemental [special education] service, as
 identified by the agency.
 (c)  The agency shall provide a procedure for providers of
 supplemental [special education] services to apply to the agency to
 become an agency-approved provider.
 (d)  The agency may establish criteria for agency approval of
 vendors for each category of supplemental [special education]
 instructional materials identified by the agency.
 (e)  If the agency establishes criteria for agency approval
 for a vendor of a category of supplemental [special education]
 instructional materials, the agency shall provide a procedure for
 vendors of that category to apply to the agency to become an
 agency-approved vendor.
 SECTION 24.  Section 29.048, Education Code, is amended to
 read as follows:
 Sec. 29.048.  ADMISSION, REVIEW, AND DISMISSAL COMMITTEE
 DUTIES.  (a)  A student's admission, review, and dismissal
 committee shall develop a student's individualized education
 program under Section 29.005, in compliance with the Individuals
 with Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
 without consideration of any supplemental [special education]
 services or supplemental instructional materials that may be
 provided under the program under this subchapter.
 (b)  Unless the district first verifies that an account has
 been assigned to the student under Section 29.045, the [The]
 admission, review, and dismissal committee of a student approved
 for participation in the program shall provide to the student's
 parent at an admission, review, and dismissal committee meeting for
 the student:
 (1)  information regarding the types of supplemental
 [special education] services or supplemental instructional
 materials available under the program and provided by
 agency-approved providers for which an account maintained under
 Section 29.042(b) for the student may be used; and
 (2)  instructions regarding accessing an account
 described by Subdivision (1).
 SECTION 25.  Subchapter A-1, Chapter 29, Education Code, is
 amended by adding Section 29.0485 to read as follows:
 Sec. 29.0485.  DETERMINATION OF COMMISSIONER
 FINAL.  Notwithstanding Section 7.057, a determination of the
 commissioner under this subchapter or Section 48.305 is final and
 may not be appealed.
 SECTION 26.  Section 29.049, Education Code, is amended to
 read as follows:
 Sec. 29.049.  RULES. The commissioner shall adopt rules as
 necessary to administer the supplemental [special education]
 services and supplemental instructional materials program under
 this subchapter.
 SECTION 27.  Section 29.315, Education Code, is amended to
 read as follows:
 Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF
 UNDERSTANDING. The agency [Texas Education Agency] and the Texas
 School for the Deaf shall develop[, agree to, and by commissioner
 rule adopt no later than September 1, 1998,] a memorandum of
 understanding to establish:
 (1)  the method for developing and reevaluating a set
 of indicators of the quality of learning at the Texas School for the
 Deaf;
 (2)  the process for the agency to conduct and report on
 an annual evaluation of the school's performance on the indicators;
 (3)  the requirements for the school's board to
 publish, discuss, and disseminate an annual report describing the
 educational performance of the school;
 (4)  the process for the agency to assign an
 accreditation status to the school, to reevaluate the status on an
 annual basis, and, if necessary, to conduct monitoring reviews; and
 (5)  the type of information the school shall be
 required to provide through the Public Education Information
 Management System (PEIMS).
 SECTION 28.  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 29.  Chapter 29, Education Code, is amended by
 adding Subchapter J to read as follows:
 SUBCHAPTER J.  EDUCATION SAVINGS ACCOUNT PROGRAM
 Sec. 29.351.  DEFINITIONS. In this subchapter:
 (1)  "Account" means an education savings account
 established under the program.
 (2)  "Child with a disability" means a child who is:
 (A)  eligible to participate in a school
 district's special education program under Section 29.003; or
 (B)  covered by Section 504, Rehabilitation Act of
 1973 (29 U.S.C. Section 794).
 (3)  "Curriculum" means a complete course of study for
 a particular content area or grade level.
 (4)  "Financial institution" means a bank, credit
 union, savings bank, or savings and loan association organized
 under the laws of this state, the laws of another state, or federal
 law that has its main office or a branch office in this state.  The
 term does not include any institution the deposits of which are not
 insured by the Federal Deposit Insurance Corporation or the
 National Credit Union Administration.
 (5)  "Institution of higher education" and "private or
 independent institution of higher education" have the meanings
 assigned by Section 61.003.
 (6)  "Parent" means a resident of this state who is a
 natural or adoptive parent, managing or possessory conservator,
 legal guardian, custodian, or other person with legal authority to
 act on behalf of a child.
 (7)  "Program" means the education savings account
 program established under this subchapter.
 (8)  "Program participant" means a child and a parent
 of a child enrolled in the program.
 Sec. 29.352.  PURPOSES.  The purposes of the education
 savings account program are to:
 (1)  improve public schools and overall academic
 performance;
 (2)  promote efficiency;
 (3)  promote and preserve the liberties and rights of
 the people; and
 (4)  increase parental choice in learning
 opportunities and supports.
 Sec. 29.353.  ESTABLISHMENT OF PROGRAM.  (a)  The agency
 shall establish and administer an education savings account
 program to provide funding for certain education-related expenses
 of eligible children.
 (b)  The agency shall ensure that information about the
 program is readily available to parents of children with
 disabilities and the public through various sources, including the
 agency's Internet website.  The information made available to
 parents of children with disabilities must include a notice that:
 (1)  states that a private school is not subject to laws
 regarding the provision of educational services in the same manner
 as a public school, and a child with a disability attending a
 private school may not receive the services a child with a
 disability attending a public school is entitled to receive under
 federal and state law;
 (2)  provides information regarding rights to which a
 child with a disability is entitled under federal and state law if
 the child attends a public school, including:
 (A)  rights provided under the Individuals with
 Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
 including:
 (i)  an individualized education program
 that provides a free and appropriate public education;
 (ii)  educational services provided in the
 least restrictive environment;
 (iii)  instruction from certified teachers;
 (iv)  dispute resolution options Section to
 ensure proper and full implementation of an individualized
 education program;
 (v)  transition and planning services; and
 (vi)  supplementary aids and services;
 (B)  rights provided under Subchapter A; and
 (C)  other rights provided under federal or state
 law; and
 (3)  provides information regarding the program,
 including:
 (A)  the operation of an account;
 (B)  expenses allowed under Section 29.357 and the
 consequences for using money in an account on expenses that are not
 allowed under that section; and
 (C)  common service offerings.
 Sec. 29.354.  ELIGIBLE CHILD.  (a)  A child is eligible to
 participate in the program if the child:
 (1)  is a child with a disability;
 (2)  is eligible to attend a public school under
 Section 25.001; and
 (3)  meets at least one of the following criteria:
 (A)  was enrolled in a public school in this state
 for a period of at least six weeks during the preceding or current
 school year;
 (B)  was required to attend school under Section
 25.085 for a period of less than six weeks during the preceding and
 current school year due to the child's age or nonresidence in this
 state; or
 (C)  participated in the program during the
 preceding school year.
 (b)  A child who establishes eligibility under this section
 may participate in the program until the earliest of the following
 dates:
 (1)  the date on which the child graduates from high
 school;
 (2)  the date on which the child is no longer eligible
 to attend a public school under Section 25.001;
 (3)  the date on which the child enrolls in a public
 school, including an open-enrollment charter school; or
 (4)  the date on which the child is declared ineligible
 for the program by the commissioner under this subchapter.
 (c)  Notwithstanding Subsection (b), the commissioner shall
 establish a process for, in the least disruptive manner possible:
 (1)  a child participating in the program to cease
 participation and enroll in a public school, including an
 open-enrollment charter school; and
 (2)  a child who previously participated in the program
 and subsequently enrolled in a public school, including an
 open-enrollment charter school, to resume participation in the
 program.
 Sec. 29.355.  ENROLLMENT IN PROGRAM.  (a)  A parent of an
 eligible child may enroll the child in the program for the following
 school year.
 (b)  The commissioner shall by rule create an enrollment
 application for the program and make the enrollment application
 readily available to interested parents through various sources,
 including the agency's Internet website.  An enrollment application
 for the program must be submitted to the commissioner
 electronically.
 (c)  The commissioner shall post on the agency's Internet
 website and provide to each parent who submits an enrollment
 application a publication that describes the operation of the
 program, including:
 (1)  expenses allowed under the program under Section
 29.357;
 (2)  expense reporting requirements; and
 (3)  a description of the responsibilities of program
 participants and the duties of the commissioner under this
 subchapter.
 (d)  The commissioner shall provide to each parent who
 submits an enrollment application a written copy of the notice
 described by Section 29.353(b).  Before the parent may receive
 funding under the program, the parent must sign an acknowledgment
 of receipt and understanding of the notice and return the signed
 acknowledgment to the commissioner.
 Sec. 29.356.  PARTICIPATION IN PROGRAM.  (a)  To receive
 funding under the program, a parent of an eligible child must agree
 to:
 (1)  spend funds received through the program only for
 expenses allowed under Section 29.357;
 (2)  notify the commissioner if the child enrolls in a
 public school, including an open-enrollment charter school, not
 later than the 30th day after the date of enrollment;
 (3)  provide to the commissioner information necessary
 to determine the child's eligibility and the amount to which the
 child is entitled under the program;
 (4)  ensure that the child's quality of learning is
 appropriately measured in accordance with Subsection (d) and
 commissioner rule and report the results to the agency; and
 (5)  inform the commissioner if the child graduates
 from high school.
 (b)  The parent of a child participating in the program is
 the trustee of the child's account.
 (c)  The commissioner shall provide annually to each program
 participant the publication provided under Section 29.355(c).
 (d)  The commissioner shall adopt a list of approved
 instruments that allow for a comparison between the quality of
 educational attainment for a child participating in the program and
 for students in other educational placements.  To the extent
 practicable, the list must include nationally norm-referenced
 assessments and assessment instruments adopted under Section
 39.023.  A child's performance on an instrument approved under this
 subsection for measuring a child's quality of learning may not be
 considered in determining the child's eligibility to participate in
 the program.
 Sec. 29.357.  APPROVED EDUCATION-RELATED EXPENSES.  (a)
 Funds received under the program may be used only for the following
 expenses incurred by a program participant:
 (1)  tuition and fees:
 (A)  at a private school accredited by an entity
 recognized by the commissioner as an accrediting entity for private
 schools in this state;
 (B)  at an institution of higher education or a
 private or independent institution of higher education;
 (C)  for an online educational course or program;
 or
 (D)  for a program that provides training for an
 industry-based certification;
 (2)  the purchase of textbooks or other instructional
 materials required by a school, institution, course, or program
 described by Subdivision (1) in which the child is enrolled;
 (3)  fees for classes or other educational services
 provided by a public school, including an open-enrollment charter
 school, if the classes or services do not qualify the child to be
 included in the school's average daily attendance;
 (4)  fees for services provided by a private tutor or
 teaching service;
 (5)  fees paid to a vendor for transportation to and
 from school, not to exceed $500 per year;
 (6)  fees for educational therapies or services
 provided by a practitioner or provider;
 (7)  costs of computer hardware and software and other
 technological devices prescribed to facilitate a child's education
 by a physician, therapist, or other licensed service provider;
 (8)  fees for a nationally norm-referenced achievement
 test or examination, an assessment instrument adopted under Section
 39.023, an advanced placement test or similar examination, an
 examination related to college or university admission, or any
 other instrument included on the agency's list under Section
 29.356(d);
 (9)  fees for the management of the participant's
 account charged by a financial institution;
 (10)  costs of breakfast or lunch provided to a child
 during the school day by a private school;
 (11)  the purchase of school uniforms required by a
 private school;
 (12)  costs of a school-age program, as defined by
 Section 42.002, Human Resources Code; and
 (13)  costs of a youth camp licensed under Chapter 141,
 Health and Safety Code, that provides educational services.
 (b)  Expenses allowed under Subsection (a) do not include
 expenses for:
 (1)  consumable supplies, including paper, pens,
 pencils, folders, and notebooks; or
 (2)  food, other than breakfast or lunch as authorized
 under Subsection (a)(10).
 (c)  Any money remaining in a program participant's account
 on the child's graduation from high school may be used by the child
 for tuition, fees, textbooks, and other instructional materials to
 attend or take courses from an institution of higher education or a
 private or independent institution of higher education.
 (d)  An education service provider or vendor of educational
 products must provide a program participant with a receipt for each
 expense allowed under Subsection (a) charged by the provider or
 vendor to the participant.
 (e)  The content, subject to Section 29.364(c), or religious
 nature of a product or service may not be considered in determining
 whether a payment for the product or service is an expense allowed
 under Subsection (a).
 (f)  A finding that a program participant used funds
 distributed under the program to pay for an expense not allowed
 under Subsection (a) does not affect the validity of any payment
 made by the participant for an expense that is allowed under that
 subsection.
 Sec. 29.358.  AMOUNT OF PAYMENT; FINANCING.  (a)  A parent of
 an eligible child shall receive each year that the child
 participates in the program a payment from the state to the child's
 account in an amount in accordance with Section 48.306.
 (b)  Money in an account may not be considered to be the
 property of a program participant and may be spent only in
 accordance with this subchapter.
 (c)  Any funds remaining in a child's account at the end of a
 fiscal year are carried forward to the next fiscal year unless
 another provision of this subchapter mandates the closure of the
 account.
 (d)  The parent of a child participating in the program may
 make payments for the expenses of educational programs, services,
 and products not covered by funds in the child's account.
 Sec. 29.359.  ADMINISTRATION OF ACCOUNTS.  (a)  The
 commissioner may contract with one or more financial institutions
 or other entities that accept fiduciary responsibility to establish
 and manage an account for each child participating in the program.
 A program participant must be able to access the participant's
 account by using an online or electronic transfer payment service.
 (b)  The commissioner shall make quarterly payments to each
 program participant's account in equal amounts, with the first
 payment for each school year made on September 1 and the remaining
 payments made on or before the 15th days of November, February, and
 May.
 (c)  After the end of each fiscal year, the commissioner
 shall reconcile payments made to and from all accounts under the
 program.
 (d)  On the earlier of the child's 26th birthday or the sixth
 anniversary of the child's graduation from high school, the child's
 account is closed and any remaining funds are returned to the state.
 (e)  The commissioner may contract with an entity to
 administer all or any part of the program.
 (f)  An entity responsible for managing accounts:
 (1)  shall ensure that each expenditure from an account
 is for an expense allowed under Section 29.357; and
 (2)  may require a program participant to submit any
 information necessary to make the determination described by
 Subdivision (1).
 Sec. 29.360.  RANDOM AUDITING OF ACCOUNTS.  (a)  The
 commissioner may randomly audit accounts as necessary to ensure
 compliance with applicable law and the requirements of the program.
 The commissioner may contract with another entity to audit accounts
 under this section.
 (b)  In auditing an account, the commissioner or an entity
 contracted to audit accounts under this section may require that a
 program participant provide further information and documentation
 regarding any payment from the participant's account.
 (c)  An entity contracted to audit accounts under this
 section shall report to the commissioner any violation of this
 subchapter or other relevant law found by the entity during an audit
 conducted under this section.
 Sec. 29.361.  SUSPENSION OF ACCOUNT.  (a)  The commissioner
 shall suspend the account of a program participant who fails to
 comply with applicable law or a requirement of the program,
 including a requirement under Section 29.356(a), or who
 substantially misuses funds received under the program.
 (b)  On suspension of an account under Subsection (a), the
 commissioner shall notify the program participant in writing that
 the account has been suspended and that no further payments may be
 made from the account. The notification must specify the grounds
 for the suspension and state that the participant has 10 business
 days to respond and take any corrective action required by the
 commissioner.
 (c)  On the expiration of the 10-day period under Subsection
 (b), the commissioner shall:
 (1)  order permanent closure of the suspended account
 and declare the program participant ineligible for the program;
 (2)  order temporary reinstatement of the account,
 conditioned on the performance of a specified action by the
 participant; or
 (3)  order full reinstatement of the account.
 (d)  The commissioner may recover funds distributed under
 the program that were used for expenses not allowed under Section
 29.357(a) from the program participant or the entity that received
 the funds if the participant's account is suspended or closed under
 this section.
 Sec. 29.362.  LIMITATION ON AMOUNTS CHARGED; REFUND
 PROHIBITED. (a)  An education service provider may not:
 (1)  charge a child participating in the program an
 amount greater than the standard amount charged for that service by
 the provider; or
 (2)  increase the amount charged to a child
 participating in the program for a service:
 (A)  if the total amount charged to the child for
 that service by the provider during the preceding year was less than
 two-thirds of the amount deposited in the child's account for that
 year, to an amount that exceeds two-thirds of the amount deposited
 in the child's account for the current year; or
 (B)  if the total amount charged to the child for
 that service by the provider during the preceding year was
 two-thirds or more of the amount deposited in the child's account
 for that year, by more than five percent of the amount charged to
 the child for that service by the provider during the preceding
 year.
 (b)  An education service provider or a vendor of educational
 products receiving funds distributed under the program may not in
 any manner rebate, refund, or credit to or share with a program
 participant, or any person on behalf of a participant, any program
 funds paid or owed by the participant to the provider or vendor.
 Sec. 29.363.  REFERRAL TO ATTORNEY GENERAL.  (a)  If the
 commissioner obtains evidence of fraudulent use of an account, the
 commissioner may refer the case to the attorney general for
 investigation.
 (b)  With the consent of the appropriate local county or
 district attorney, the attorney general has concurrent
 jurisdiction with the consenting local prosecutor to prosecute an
 offense referred to the attorney general under Subsection (a).
 Sec. 29.364.  PROVIDER ACCOUNTABILITY. (a)  To receive
 funds distributed under the program, a private school must be
 accredited by an entity recognized by the commissioner as an
 accrediting entity for private schools in this state.
 (b)  To receive funds distributed under the program, an
 education service provider that provides a full course load to a
 child participating in the program must administer to the child an
 instrument included on the list adopted by the commissioner under
 Section 29.356(d) and report the results to the agency.
 (c)  A practitioner or provider who provides educational
 therapies or services must be licensed or accredited by a regional
 or national accrediting organization to receive funds distributed
 under the program.
 (d)  A private tutor, teaching service, online educational
 course or program provider, or industry-based certification
 training provider must apply to and be approved by the agency to
 receive funds distributed under the program.
 (e)  To be eligible for approval under Subsection (d), a
 private tutor or each employee of a teaching service who intends to
 provide educational services to a program participant must:
 (1)  complete a national criminal history record
 information review; or
 (2)  provide to the agency documentation indicating
 that the tutor or employee, as applicable, has completed a national
 criminal history record information review within a period
 established by commissioner rule.
 (f)  The agency shall review the national criminal history
 record information or documentation for each private tutor or
 employee of a teaching service who submits an application under
 Subsection (d). The tutor or employee must provide the agency with
 any information requested by the agency to enable the agency to
 complete the review.
 (g)  The agency shall maintain and post on the agency's
 Internet website a list of private tutors, teaching services,
 online educational course or program providers, and industry-based
 certification training providers approved to receive funds
 distributed under the program.
 (h)  A private tutor, teaching service, online educational
 course or program provider, or industry-based certification
 training provider may appeal the agency's rejection of an
 application submitted under Subsection (d).  The agency shall
 review the application and make a recommendation to the
 commissioner regarding whether to approve or reject the
 application. A decision of the commissioner under this section is
 final and may not be appealed.
 Sec. 29.365.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
 AUTONOMY.  (a)  An education service provider or vendor of
 educational products that receives funds distributed under the
 program is not an agent of the state.
 (b)  Except as provided by this subchapter, the
 commissioner, the agency, the State Board of Education, any other
 state agency, or any school district may not:
 (1)  regulate the educational program of an education
 service provider or vendor of educational products that receives
 funds distributed under the program; or
 (2)  exercise control or supervision over a program
 participant or an education service provider or vendor of
 educational products that receives funds distributed under the
 program.
 (c)  The program does not expand the regulatory authority of
 the state or any school district to impose any additional
 regulation on an education service provider or vendor of
 educational products except those reasonably necessary to enforce
 the program as provided by this subchapter.
 (d)  A private school may not be required to modify the
 school's creed, practices, admissions policies, curriculum,
 performance standards, or assessments to receive funds distributed
 under the program.
 (e)  A private school voluntarily selected by a parent for
 the parent's child to attend, with or without governmental
 assistance, may not be required to comply with any state law or rule
 governing the applicable educational program that was not in effect
 on January 1, 2023.
 (f)  In any proceeding challenging a rule adopted by a state
 agency or officer under this subchapter, the agency or officer has
 the burden of proof to establish that the rule:
 (1)  is necessary to implement or enforce the program
 as provided by this subchapter; and
 (2)  does not impose an undue burden on a program
 participant or an education service provider or vendor of
 educational products that receives or seeks to receive funds
 distributed under the program.
 Sec. 29.366.  STUDENT RECORDS AND INFORMATION.  On request
 by the parent of a child participating in the program, the school
 district or open-enrollment charter school that the child would
 otherwise attend shall provide a copy of the child's school records
 possessed by the district or school, if any, to the child's parent
 or, if applicable, the private school the child attends.
 Sec. 29.367.  ANNUAL SURVEY. The commissioner may conduct
 an annual parental satisfaction survey that asks each parent of a
 child participating in the program to express:
 (1)  the parent's overall level of satisfaction with
 the program; and
 (2)  the parent's opinion on specified topics and
 issues relevant to the effectiveness of the program.
 Sec. 29.368.  DETERMINATION OF COMMISSIONER FINAL.
 Notwithstanding Section 7.057, a determination of the commissioner
 regarding eligibility or the approval of expenses under this
 subchapter or funding under Section 48.306 is final and may not be
 appealed.
 Sec. 29.369.  RULES.  The commissioner shall:
 (1)  adopt rules as necessary to implement this
 subchapter, including:
 (A)  rules regarding eligibility determination,
 expense reporting requirements for program participants, and
 approval of expenses, including appeals of agency determinations on
 those issues;
 (B)  rules for measuring the quality of learning
 for a child participating in the program; and
 (C)  rules for implementing this subchapter in a
 manner that ensures compliance with federal law regarding
 confidentiality of student educational information, including the
 Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
 Section 1232g); and
 (2)  coordinate as necessary to:
 (A)  calculate annually the savings to the state
 from the implementation of the program; and
 (B)  prevent fraud in financial transactions
 under the program, including by adopting measures to permit
 anonymous fraud reporting by telephone hotline or online
 communication.
 Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS.  The
 commissioner may solicit and accept gifts, grants, and donations
 from any public or private source for any expenses related to the
 administration of the program, including the initial
 implementation of the program and making payments to a program
 participant's account.
 SECTION 30.  Section 30.001(b), Education Code, is amended
 to read as follows:
 (b)  The commissioner, with the approval of the State Board
 of Education, shall develop and implement a plan for the
 coordination of services to children with disabilities in each
 region served by a regional education service center. The plan must
 include procedures for:
 (1)  identifying existing public or private
 educational and related services for children with disabilities in
 each region;
 (2)  identifying and referring children with
 disabilities who cannot be appropriately served by the school
 district in which they reside to other appropriate programs;
 (3)  assisting school districts to individually or
 cooperatively develop programs to identify and provide appropriate
 services for children with disabilities;
 (4)  expanding and coordinating services provided by
 regional education service centers for children with disabilities;
 and
 (5)  providing for special supports, including special
 seats, books, instructional media, and other supplemental supplies
 and services required for proper instruction.
 SECTION 31.  Section 30.002(g), Education Code, is amended
 to read as follows:
 (g)  To facilitate implementation of this section, the
 commissioner shall develop a system to distribute from the
 foundation school fund to school districts or regional education
 service centers a special supplemental allowance for each student
 with a visual impairment and for each student with a serious visual
 disability and another medically diagnosed disability of a
 significantly limiting nature who is receiving special education
 services through any approved program. The supplemental allowance
 may be spent only for special education services uniquely required
 by the nature of the student's disabilities and may not be used in
 lieu of educational funds otherwise available under this code or
 through state or local appropriations.
 SECTION 32.  Section 30.005, Education Code, is amended to
 read as follows:
 Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY
 IMPAIRED MEMORANDUM OF UNDERSTANDING. The agency [Texas Education
 Agency] and the Texas School for the Blind and Visually Impaired
 shall develop[, agree to, and by commissioner rule adopt] a
 memorandum of understanding to establish:
 (1)  the method for developing and reevaluating a set
 of indicators of the quality of learning at the Texas School for the
 Blind and Visually Impaired;
 (2)  the process for the agency to conduct and report on
 an annual evaluation of the school's performance on the indicators;
 (3)  the requirements for the school's board to
 publish, discuss, and disseminate an annual report describing the
 educational performance of the school;
 (4)  the process for the agency to:
 (A)  assign an accreditation status to the school;
 (B)  reevaluate the status on an annual basis; and
 (C)  if necessary, conduct monitoring reviews;
 and
 (5)  the type of information the school shall be
 required to provide through the Public Education Information
 Management System (PEIMS).
 SECTION 33.  Section 37.146(a), Education Code, is amended
 to read as follows:
 (a)  A complaint alleging the commission of a school offense
 must, in addition to the requirements imposed by Article 45.019,
 Code of Criminal Procedure:
 (1)  be sworn to by a person who has personal knowledge
 of the underlying facts giving rise to probable cause to believe
 that an offense has been committed; and
 (2)  be accompanied by a statement from a school
 employee stating:
 (A)  whether the child is eligible for or receives
 special education services under Subchapter A, Chapter 29; and
 (B)  the graduated sanctions, if required under
 Section 37.144, that were imposed on the child before the complaint
 was filed.
 SECTION 34.  Effective September 1, 2024, Section 48.005,
 Education Code, is amended by adding subsection (o) to read as
 follows:
 (o)  The commissioner shall define enrollment for funding
 purposes under this title. For purposes of calculating eligibility
 and funding amounts of allotments under this chapter and Chapter
 46, a reference to a student means a student in enrollment at the
 school district unless otherwise indicated.
 SECTION 35.  Effective September 1, 2024, Section 48.051(a),
 Education Code, is amended to read as follows:
 (a)  For each student in average daily attendance, not
 including the time students spend each day in career and technology
 education programs or in special education programs receiving
 special education services 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 = $6,160 X TR/MCR
 where:
 "A" is the allotment to which a district is entitled;
 "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.
 SECTION 36.  Effective September 1, 2024, Section 48.102,
 Education Code, is amended to read as follows:
 Sec. 48.102.  SPECIAL EDUCATION. (a)  For each student 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 37.  Effective September 1, 2024, Subchapter C,
 Chapter 48, Education Code, is amended by adding Section 48.1021 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.
 SECTION 38.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Sections 48.1022 and 48.1023 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.
 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 39.  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 40.  Section 48.110(d), Education Code, is amended
 to read as follows:
 (d)  For each annual graduate in a cohort described by
 Subsection (b) who demonstrates college, career, or military
 readiness as described by Subsection (f) in excess of the minimum
 number of students determined for the applicable district cohort
 under Subsection (c), a school district is entitled to an annual
 outcomes bonus of:
 (1)  if the annual graduate is educationally
 disadvantaged, $5,000;
 (2)  if the annual graduate is not educationally
 disadvantaged, $3,000; and
 (3)  if the annual graduate is enrolled in a special
 education program under Subchapter A, Chapter 29, $4,000 [$2,000],
 regardless of whether the annual graduate is educationally
 disadvantaged.
 SECTION 41.  Section 48.151(g), Education Code, is amended
 to read as follows:
 (g)  A school district or county that provides special
 transportation services for eligible students who receive special
 education services is entitled to a state allocation at a [paid on a
 previous year's cost-per-mile basis. The] rate of $1.13 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
 students who receive special education services.  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 42.  Subchapter D, Chapter 48, Education Code, is
 amended by adding Section 48.159 to read as follows:
 Sec. 48.159.  SPECIAL EDUCATION CERTIFICATION ALLOTMENT.
 (a) For each classroom teacher or educational diagnostician
 employed by a school district who, during the preceding year,
 became certified under Subchapter B, Chapter 21, to teach special
 education or as an educational diagnostician, as applicable, the
 district is entitled to an allotment in the amount of the teacher's
 or diagnostician's certification fee.
 (b)  A school district shall use an allotment received under
 this section to provide a stipend in the amount of the allotment to
 the classroom teacher or educational diagnostician for whom the
 district received the allotment.  A stipend received by a classroom
 teacher under this subsection is not considered in determining
 whether the district is paying the teacher the minimum monthly
 salary under Section 21.402.
 SECTION 43.  Section 48.265(a), Education Code, is amended
 to read as follows:
 (a)  If [Notwithstanding any other provision of law, if] the
 commissioner determines that the amount appropriated for the
 purposes of the Foundation School Program exceeds the amount to
 which school districts are entitled under this chapter, the
 commissioner may provide [by rule shall establish a grant program
 through which excess funds are awarded as] grants using the excess
 money for the purchase of video equipment, or for the reimbursement
 of costs for previously purchased video equipment, used for
 monitoring special education classrooms or other special education
 settings required under Section 29.022.
 SECTION 44.  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 45.  Subchapter G, Chapter 48, Education Code, is
 amended by adding Sections 48.304, 48.305, and 48.306 to read as
 follows:
 Sec. 48.304.  DAY PLACEMENT PROGRAM FUNDING.  (a)  For each
 qualifying day placement program that a regional education service
 center makes available in partnership with a school district,
 open-enrollment charter school, or shared services arrangement,
 the center is entitled to an allotment of:
 (1)  $250,000 for the first year of the program's
 operation; and
 (2)  $150,000 for each year of the program's operation
 after the first year.
 (b)  A day placement program qualifies for purposes of
 Subsection (a) if:
 (1)  the program complies with commissioner rules
 adopted under Section 48.102(c);
 (2)  the program offers services to students who are
 enrolled at any school district or open-enrollment charter school
 in the county in which the program is offered, unless the
 commissioner by rule waives or modifies the requirement under this
 subdivision for the program to serve all students in a county; and
 (3)  the agency has designated the program for service
 in the county in which the program is offered and determined that,
 at the time of designation, the program increases the availability
 of day placement services in the county.
 Sec. 48.305.  PARENT-DIRECTED SERVICES FOR STUDENTS
 RECEIVING SPECIAL EDUCATION SERVICES STUDENTS GRANT.  (a)  A
 student to whom the agency awards a grant under Subchapter A-1,
 Chapter 29, is entitled to receive an amount equal to $1,500 or a
 greater amount by appropriation.
 (b)  The agency shall use money appropriated to the agency
 for purposes of this section to award grants under Subchapter A-1,
 Chapter 29.
 (c)  A student may receive one grant under Subchapter A-1,
 Chapter 29.  A student may receive an additional grant if the
 legislature appropriates money for the additional grant in the
 General Appropriations Act.
 Sec. 48.306.  EDUCATION SAVINGS ACCOUNT FUNDING.  (a)  A
 person enrolled in the education savings account program
 established under Subchapter J, Chapter 29, is entitled to a
 deposit to the person's education savings account in an amount
 equal to the sum of $7,250 and:
 (1)  $1,500, if the child is educationally
 disadvantaged;
 (2)  $1,400, if the child has not previously
 participated in a school district's special education program under
 Section 29.003; and
 (3)  if the child has previously participated in a
 school district's special education program under Section 29.003,
 the amount of funding for special education services the district
 was entitled to receive for the child under Subchapters B and C,
 Chapter 48, for the most recent school year in which the child
 participated in the district's special education program.
 (b)  A greater amount may be provided by appropriation or by
 the agency from money available for the purpose.
 .
 (c)  The agency shall use money appropriated to the agency
 for purposes of this section to make deposits to education savings
 accounts under Subchapter J, Chapter 29.
 (d)  A payment under Subsection (a) may not be financed using
 federal funds or money appropriated from the permanent school fund
 or the available school fund.
 SECTION 46.  Section 411.0901, Government Code, is amended
 by adding Subsection (a-1) to read as follows:
 (a-1)  The Texas Education Agency is entitled to obtain
 criminal history record information maintained by the department
 about a person who is a private tutor or an employee of a teaching
 service who intends to provide educational services to a child
 participating in the program established under Subchapter J,
 Chapter 29, Education Code, and is seeking approval to receive
 funds distributed under that program.
 SECTION 47.  Section 825.4092(f), Government Code, as added
 by Chapter 546 (S.B. 202), Acts of the 87th Legislature, Regular
 Session, 2021, is amended to read as follows:
 (f)  A reporting employer is ultimately responsible for
 payment of the amounts required to be contributed under Subsections
 (b) and (c).  The employer may not directly or indirectly pass that
 cost on to the retiree through payroll deduction, by imposition of a
 fee, or by any other means designed to recover the cost.  This
 subsection does not apply to contributions required for a retiree
 employed by a school district or open-enrollment charter school to
 teach special education.
 SECTION 48.  The following provisions of the Education Code
 are repealed:
 (1)  Section 29.002;
 (2)  Sections 29.026(n) and (o);
 (3)  Section 29.027(i); and
 (4)  Section 29.050.
 SECTION 49.  Subchapter E, Chapter 22, Education Code, as
 added by this Act, Chapter 29, Education Code, as amended by this
 Act, and Section 825.4092(f), Government Code, as amended by this
 Act, apply beginning with the 2023-2024 school year.
 SECTION 50.  (a)  Except as provided by Subsection (b) of
 this section and as otherwise provided by this Act, this Act takes
 effect immediately if it 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, this Act takes effect September 1,
 2023.
 (b)  The amendments by this Act to Chapter 48, Education
 Code, except as otherwise provided by this Act, take effect
 September 1, 2023.