By: Hinojosa H.B. No. 5288 A BILL TO BE ENTITLED AN ACT relating to a study by the Texas Education Agency on a service-intensity based funding formula to replace the special education allotment under the Foundation School Program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 48, Education Code, is amended by adding Section 48.304 to read as follows: Sec. 48.304. STUDY ON SERVICE-INTENSITY BASED FUNDING FORMULA FOR SPECIAL EDUCATION. (a) In this section, "service-intensity based funding" means a method of funding special education services that: (1) establishes tiers of intensity of service based on the educational arrangements and specialized services required under a student's individual education program; and (2) provides for an amount of funding per student based on the tier of intensity of service appropriate for the student. (b) The agency shall conduct a study on a transition to service-intensity based funding for special education services under the Foundation School Program. (c) The study conducted under Subsection (b) must: (1) assess current and projected needs of students who receive special education services in public schools; (2) identify current shortfalls in special education services and funding mechanisms and analyze whether service-intensity based funding could address those shortfalls; (3) propose a plan for the optimal implementation of a transition to service-intensity based funding; and (4) include agency predictions regarding the likely effect on local shares and the guaranteed yield amount of state funds for school districts if the state transitions to service-intensity based funding for special education services. (d) In conducting the study under Subsection (b), the agency shall solicit input from: (1) parents or persons standing in parental relation to students who receive special education services; (2) students who receive special education services; (3) teachers of students who receive special education services; (4) administrators; and (5) school support staff. (e) Not later than December 1, 2024, the agency shall prepare and submit to the legislature a report on the results of the study conducted under this section and recommendations based on those results regarding: (1) weights to be applied for students in each tier of intensity of service to be included in a service-intensity based funding formula included in proposed legislation relating to transitioning special education funding under Section 48.102 to service-intensity based funding; (2) the amount and manner of determining tiers of intensity of service based on the educational arrangements and specialized services required under a student's individual education program; and (3) any other recommendations for legislative or other action. (f) This section expires September 1, 2025. SECTION 2. 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.