Texas 2023 88th 3rd C.S.

Texas House Bill HB1 Introduced / Bill

Filed 10/19/2023

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                    88S30762 MM-D
 By: Buckley H.B. No. 1


 A BILL TO BE ENTITLED
 AN ACT
 relating to primary and secondary education, including the
 certification, compensation, and health coverage of certain public
 school employees, the public school finance system, special
 education in public schools, the establishment of an education
 savings account program, measures to support the education of
 public school students that include certain educational grant
 programs, reading instruction, and early childhood education, the
 provision of virtual education, and public school accountability.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. CHANGES RELATED TO PUBLIC SCHOOL EDUCATORS EFFECTIVE FOR
 2024-2025 SCHOOL YEAR
 SECTION 1.01.  Section 19.009(d-2), Education Code, is
 amended to read as follows:
 (d-2)  Beginning with the 2009-2010 school year, the
 district shall increase the [monthly] salary of each classroom
 teacher, full-time speech pathologist, full-time librarian,
 full-time school counselor certified under Subchapter B, Chapter
 21, and full-time school nurse employed by the district by the
 greater of:
 (1)  $80 per month; or
 (2)  the maximum uniform amount per month that, when
 combined with any resulting increases in the amount of
 contributions made by the district for social security coverage for
 the specified employees or by the district on behalf of the
 specified employees under Section 825.405, Government Code, may be
 provided using an amount equal to the product of $60 multiplied by
 the number of students in weighted average daily attendance in the
 district during the 2009-2010 school year.
 SECTION 1.02.  Subchapter A, Chapter 21, Education Code, is
 amended by adding Section 21.010 to read as follows:
 Sec. 21.010.  TEACHER POSITION DATA COLLECTION. The agency
 shall collect data from school districts and open-enrollment
 charter schools for the recruitment and retention of classroom
 teachers, including the classification, grade level, subject area,
 duration, and other relevant information regarding vacant teaching
 positions in a district or school. The data may be collected using
 the Public Education Information Management System (PEIMS) or
 another reporting mechanism specified by the agency.
 SECTION 1.03.  Subchapter B, Chapter 21, Education Code, is
 amended by adding Section 21.0411 to read as follows:
 Sec. 21.0411.  WAIVER OR PAYMENT OF CERTAIN EXAMINATION AND
 CERTIFICATION FEES. (a) Notwithstanding a rule adopted under
 Section 21.041(c), the board shall, for a person applying for a
 certification to teach established under this subchapter, waive:
 (1)  a certification examination fee imposed by the
 board for the first administration of the examination to the
 person; and
 (2)  a fee associated with the application for
 certification by the person.
 (b)  The board shall pay to a vendor that administers a
 certification examination required for certification to teach
 under this subchapter a fee assessed by that vendor for the
 examination of a person applying for a certification to teach
 established under this subchapter for the first administration of
 the examination to the person.
 SECTION 1.04.  Section 21.054, Education Code, is amended by
 amending Subsections (a) and (i) and adding Subsection (i-1) to
 read as follows:
 (a)  The board shall propose rules establishing a process for
 identifying continuing education courses and programs that fulfill
 educators' continuing education requirements, including
 opportunities for educators to receive micro-credentials, as
 provided by Subsection (i), in:
 (1)  fields of study related to the educator's
 certification class; or
 (2)  digital teaching [as provided by Subsection (i)].
 (i)  The board shall propose rules establishing a program to
 issue micro-credentials in fields of study related to an educator's
 certification class or in digital teaching. The agency shall
 approve continuing education providers to offer micro-credential
 courses. A micro-credential received by an educator shall be
 recorded on the agency's Educator Certification Online System
 (ECOS) and included as part of the educator's public certification
 records.
 (i-1)  In proposing rules under Subsection (i) for
 micro-credentials related to digital teaching, the board shall
 engage relevant stakeholders.
 SECTION 1.05.  Section 21.105, Education Code, is amended by
 amending Subsection (c) and adding Subsection (g) to read as
 follows:
 (c)  Subject to Subsections (e), [and] (f), and (g), on
 written complaint by the employing district, the State Board for
 Educator Certification may impose sanctions against a teacher
 employed under a probationary contract who:
 (1)  resigns;
 (2)  fails without good cause to comply with Subsection
 (a) or (b); and
 (3)  fails to perform the contract.
 (g)  The State Board for Educator Certification may not
 impose a sanction under Subsection (c) against a teacher who
 relinquishes a position under a probationary contract and leaves
 the employment of the district after the 45th day before the first
 day of instruction for the upcoming school year in violation of
 Subsection (a) and without the consent of the board of trustees
 under Subsection (b) if the teacher's failure to comply with
 Subsection (a) was due to:
 (1)  a serious illness or health condition of the
 teacher or a close family member of the teacher;
 (2)  the teacher's relocation because the teacher's
 spouse or a partner who resides with the teacher changes employers;
 (3)  a significant change in the needs of the teacher's
 family in a manner that requires the teacher to:
 (A)  relocate; or
 (B)  forgo employment during a period of required
 employment under the teacher's contract; or
 (4)  the teacher's reasonable belief that the teacher
 had written permission from the school district's administration to
 resign.
 SECTION 1.06.  Section 21.160, Education Code, is amended by
 amending Subsection (c) and adding Subsection (g) to read as
 follows:
 (c)  Subject to Subsections (e), [and] (f), and (g), on
 written complaint by the employing district, the State Board for
 Educator Certification may impose sanctions against a teacher who
 is employed under a continuing contract that obligates the district
 to employ the person for the following school year and who:
 (1)  resigns;
 (2)  fails without good cause to comply with Subsection
 (a) or (b); and
 (3)  fails to perform the contract.
 (g)  The State Board for Educator Certification may not
 impose a sanction under Subsection (c) against a teacher who
 relinquishes a position under a continuing contract and leaves the
 employment of the district after the 45th day before the first day
 of instruction of the upcoming school year in violation of
 Subsection (a) and without the consent of the board of trustees
 under Subsection (b) if the teacher's failure to comply with
 Subsection (a) was due to:
 (1)  a serious illness or health condition of the
 teacher or a close family member of the teacher;
 (2)  the teacher's relocation because the teacher's
 spouse or a partner who resides with the teacher changes employers;
 (3)  a significant change in the needs of the teacher's
 family in a manner that requires the teacher to:
 (A)  relocate; or
 (B)  forgo employment during a period of required
 employment under the teacher's contract; or
 (4)  the teacher's reasonable belief that the teacher
 had written permission from the school district's administration to
 resign.
 SECTION 1.07.  Section 21.210, Education Code, is amended by
 amending Subsection (c) and adding Subsection (g) to read as
 follows:
 (c)  Subject to Subsections (e), [and] (f), and (g), on
 written complaint by the employing district, the State Board for
 Educator Certification may impose sanctions against a teacher who
 is employed under a term contract that obligates the district to
 employ the person for the following school year and who:
 (1)  resigns;
 (2)  fails without good cause to comply with Subsection
 (a) or (b); and
 (3)  fails to perform the contract.
 (g)  The State Board for Educator Certification may not
 impose a sanction under Subsection (c) against a teacher who
 relinquishes a position under a term contract and leaves the
 employment of the district after the 45th day before the first day
 of instruction of the upcoming school year in violation of
 Subsection (a) and without the consent of the board of trustees
 under Subsection (b) if the teacher's failure to comply with
 Subsection (a) was due to:
 (1)  a serious illness or health condition of the
 teacher or a close family member of the teacher;
 (2)  the teacher's relocation because the teacher's
 spouse or a partner who resides with the teacher changes employers;
 (3)  a significant change in the needs of the teacher's
 family in a manner that requires the teacher to:
 (A)  relocate; or
 (B)  forgo employment during a period of required
 employment under the teacher's contract; or
 (4)  the teacher's reasonable belief that the teacher
 had written permission from the school district's administration to
 resign.
 SECTION 1.08.  Section 21.257, Education Code, is amended by
 amending Subsection (a) and adding Subsection (f) to read as
 follows:
 (a)  Except as provided by Subsection (f), not [Not] later
 than the 60th day after the date on which the commissioner receives
 a teacher's written request for a hearing, the hearing examiner
 shall complete the hearing and make a written recommendation that:
 (1)  includes proposed findings of fact and conclusions
 of law; and
 (2)  may include a proposal for granting relief.
 (f)  The hearing examiner may dismiss a hearing before
 completing the hearing or making a written recommendation if:
 (1)  the teacher requests the dismissal;
 (2)  the school district withdraws the proposed
 decision that is the basis of the hearing; or
 (3)  the teacher and school district request the
 dismissal after reaching a settlement regarding the proposed
 decision that is the basis of the hearing.
 SECTION 1.09.  Sections 21.3521(a), (c), and (e), Education
 Code, are amended to read as follows:
 (a)  Subject to Subsection (b), a school district or
 open-enrollment charter school may designate a classroom teacher as
 a master, exemplary, [or] recognized, or acknowledged teacher for a
 five-year period based on the results from single year or multiyear
 appraisals that comply with Section 21.351 or 21.352.
 (c)  Notwithstanding performance standards established
 under Subsection (b), a classroom teacher that holds a National
 Board Certification issued by the National Board for Professional
 Teaching Standards may be designated as nationally board certified
 [recognized].
 (e)  The agency shall develop and provide technical
 assistance for school districts and open-enrollment charter
 schools that request assistance in implementing a local optional
 teacher designation system, including:
 (1)  providing assistance in prioritizing high needs
 campuses;
 (2)  providing examples or models of local optional
 teacher designation systems to reduce the time required for a
 district or school to implement a teacher designation system;
 (3)  establishing partnerships between districts and
 schools that request assistance and districts and schools that have
 implemented a teacher designation system;
 (4)  applying the performance and validity standards
 established by the commissioner under Subsection (b);
 (5)  providing centralized support for the analysis of
 the results of assessment instruments administered to district
 students; and
 (6)  facilitating effective communication on and
 promotion of local optional teacher designation systems.
 SECTION 1.10.  Subchapter H, Chapter 21, Education Code, is
 amended by adding Section 21.3522 to read as follows:
 Sec. 21.3522.  LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM
 GRANT PROGRAM.  (a)  From funds appropriated or otherwise
 available for the purpose, the agency shall establish and
 administer a grant program to provide money and technical
 assistance to:
 (1)  expand implementation of local optional teacher
 designation systems under Section 21.3521; and
 (2)  increase the number of classroom teachers eligible
 for a designation under that section.
 (b)  A grant awarded under this section must:
 (1)  meet the needs of individual school districts; and
 (2)  enable regional leadership capacity.
 (c)  The commissioner may adopt rules to establish and
 administer the grant program under this section.
 SECTION 1.11.  Section 21.402, Education Code, is amended by
 amending Subsections (a) and (g) and adding Subsections (a-1),
 (c-2), (i), (j), and (k) to read as follows:
 (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a
 school district must pay each employee who is employed as a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse not less
 than the highest annual minimum [minimum monthly] salary described
 by the following schedule applicable to [, based on] the employee's
 certification, if any, and years [level] of experience:
 (1)  for an employee with less than five years of
 experience who:
 (A)  holds no certification  $35,000;
 (B)  holds a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $37,000;
 (C)  holds the base certificate required under
 Section 21.003(a) for employment in the employee's position other
 than a certificate described by Paragraph (B)  $40,000;
 (D)  holds a designation under Section 21.3521
 $43,000; or
 (E)  holds a residency educator certificate or has
 successfully completed a residency partnership program under
 Subchapter R $43,000;
 (2)  for an employee with at least five years of
 experience who holds:
 (A)  no certification  $45,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $47,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's position other than a
 certificate described by Paragraph (B)  $50,000; or
 (D)  a designation under Section 21.3521
 $53,000; or
 (3)  for an employee with at least 10 years of
 experience who holds:
 (A)  no certification  $55,000;
 (B)  a teacher intern, teacher trainee, or
 probationary certificate issued under Subchapter B  $57,000;
 (C)  the base certificate required under Section
 21.003(a) for employment in the employee's
 position . . .. $60,000; or
 (D)  a designation under Section 21.3521
 $63,000 [in addition to other factors, as determined by
 commissioner rule, determined by the following formula:
 [MS = SF x FS
 [where:
 ["MS" is the minimum monthly salary;
 ["SF" is the applicable salary factor specified by Subsection
 (c); and
 ["FS" is the amount, as determined by the commissioner under
 Subsection (b), of the basic allotment as provided by Section
 48.051(a) or (b) for a school district with a maintenance and
 operations tax rate at least equal to the state maximum compressed
 tax rate, as defined by Section 48.051(a)].
 (a-1)  For purposes of Subsection (a), a full-time school
 nurse is considered to hold the base certificate required under
 Section 21.003(a) for employment as a school nurse, regardless of
 the other certifications held by the nurse.
 (c-2)  A school district is not required to pay an employee
 who is employed as a classroom teacher, full-time librarian,
 full-time school counselor certified under Subchapter B, or
 full-time school nurse the minimum salary required under Subsection
 (a) for the school year following a school year during which the
 district reviews the employee's performance and finds the
 employee's performance unsatisfactory.
 (g)  The commissioner may adopt rules to govern the
 application of this section, including rules that:
 (1)  require the payment of a minimum salary under this
 section to a person employed in more than one capacity for which a
 minimum salary is provided and whose combined employment in those
 capacities constitutes full-time employment; and
 (2)  specify the credentials a person must hold to be
 considered a [speech pathologist or] school nurse under this
 section.
 (i)  A school district that increases employee compensation
 in the 2024-2025 school year to comply with Subsection (a), as
 amended by _.B. ___, 88th Legislature, 3rd Called Session, 2023, is
 providing compensation for services rendered independently of an
 existing employment contract applicable to that year and is not in
 violation of Section 53, Article III, Texas Constitution. A school
 district that does not meet the requirements of Subsection (a) in
 the 2024-2025 school year may satisfy the requirements of this
 section by providing an employee a one-time bonus payment during
 the 2025-2026 school year in an amount equal to the difference
 between the compensation earned by the employee during the
 2024-2025 school year and the compensation the employee should have
 received during that school year if the district had complied with
 Subsection (a).
 (j)  Notwithstanding the minimum salary schedule under
 Subsection (a), a school district that increases the amount a
 classroom teacher, full-time librarian, full-time school counselor
 certified under Subchapter B, or full-time school nurse is
 compensated during the 2024-2025 school year by at least $8,000
 more than the amount the employee was compensated during the
 2023-2024 school year complies with the requirements of this
 section for the 2024-2025 school year.
 (k)  Subsections (i) and (j) and this subsection expire
 September 1, 2027.
 SECTION 1.12.  The heading to Section 21.403, Education
 Code, is amended to read as follows:
 Sec. 21.403.  DETERMINATION OF YEARS OF EXPERIENCE
 [PLACEMENT ON MINIMUM SALARY SCHEDULE].
 SECTION 1.13.  Sections 21.403(b) and (c), Education Code,
 are amended to read as follows:
 (b)  For each year of work experience required for
 certification in a career or technological field, up to a maximum of
 two years, a certified career or technology education teacher is
 entitled to [salary step] credit as if the work experience were
 teaching experience.
 (c)  The commissioner shall adopt rules for determining the
 experience for which a teacher, librarian, school counselor, or
 nurse is to be given credit for purposes of the minimum salary
 schedule under Section 21.402(a) [in placing the teacher,
 librarian, school counselor, or nurse on the minimum salary
 schedule].  A district shall credit the teacher, librarian, school
 counselor, or nurse for each year of experience without regard to
 whether the years are consecutive.
 SECTION 1.14.  Subchapter I, Chapter 21, Education Code, is
 amended by adding Sections 21.416 and 21.417 to read as follows:
 Sec. 21.416.  EMPLOYED RETIREE TEACHER REIMBURSEMENT GRANT
 PROGRAM. (a)  From funds appropriated or otherwise available, the
 commissioner shall establish and administer a grant program to
 award funds to reimburse a school district, an open-enrollment
 charter school, the Windham School District, the Texas School for
 the Deaf, or the Texas School for the Blind and Visually Impaired
 that hires a teacher, including an educator who provides services
 related to special education, who retired before September 1, 2022,
 for the increased contributions to the Teacher Retirement System of
 Texas associated with hiring the retired teacher.
 (b)  In appropriating money for grants awarded under this
 section, the legislature may provide for, modify, or limit amounts
 appropriated for that purpose in the General Appropriations Act,
 including by:
 (1)  providing, notwithstanding Subsection (a), a date
 or date range other than September 1, 2022, before which a teacher
 must have retired for a school district, an open-enrollment charter
 school, the Windham School District, the Texas School for the Deaf,
 or the Texas School for the Blind and Visually Impaired that hires
 the teacher to be eligible; or
 (2)  limiting eligibility to a school district or
 open-enrollment charter school that hires a retired teacher:
 (A)  who holds a certain certification;
 (B)  to teach a certain subject or grade;
 (C)  in a certain geographical area; or
 (D)  to provide instruction to certain students,
 including to students with disabilities.
 (c)  The commissioner shall proportionally reduce the amount
 of funds awarded to school districts, open-enrollment charter
 schools, the Windham School District, the Texas School for the
 Deaf, and the Texas School for the Blind and Visually Impaired under
 this section if the number of grant applications by eligible
 districts or schools exceeds the number of grants the commissioner
 could award with the money appropriated or otherwise available for
 the purpose.
 (d)  A school district, an open-enrollment charter school,
 the Windham School District, the Texas School for the Deaf, or the
 Texas School for the Blind and Visually Impaired may use funds
 received under this section to make required payments under Section
 825.4092, Government Code.
 Sec. 21.417.  ELECTION BY TEACHER TO USE UNPAID LEAVE. The
 board of trustees of a school district shall adopt a policy that
 provides a classroom teacher employed by the district the option to
 elect not to take the teacher's paid personal leave concurrently
 with unpaid leave the teacher is entitled to take under the Family
 and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.) for
 an absence due to pregnancy or the birth or adoption of a child.
 SECTION 1.15.  Section 21.4552(d), Education Code, is
 amended to read as follows:
 (d)  From funds appropriated for that purpose, a teacher who
 attends a literacy achievement academy is entitled to receive a
 stipend in the amount determined by the commissioner.  A stipend
 received under this subsection is not considered in determining
 whether a school district is paying the teacher the minimum
 [monthly] salary under Section 21.402.
 SECTION 1.16.  Section 21.4553(d), Education Code, is
 amended to read as follows:
 (d)  From funds appropriated for that purpose, a teacher who
 attends a mathematics achievement academy is entitled to receive a
 stipend in the amount determined by the commissioner.  A stipend
 received under this subsection is not considered in determining
 whether a district is paying the teacher the minimum [monthly]
 salary under Section 21.402.
 SECTION 1.17.  Section 21.4555(f), Education Code, is
 amended to read as follows:
 (f)  From funds available for that purpose, a teacher who
 attends a civics training program may receive a stipend in an amount
 determined by the commissioner.  A stipend received under this
 section is not included in determining whether a district is paying
 the teacher the minimum [monthly] salary under Section 21.402.
 SECTION 1.18.  Subchapter J, Chapter 21, Education Code, is
 amended by adding Sections 21.466 and 21.467 to read as follows:
 Sec. 21.466.  TEACHER QUALITY ASSISTANCE. (a) From funds
 appropriated or otherwise available for the purpose, the agency
 shall develop training for and provide technical assistance to
 school districts and open-enrollment charter schools regarding:
 (1)  strategic compensation, staffing, and scheduling
 efforts that improve professional growth, teacher leadership
 opportunities, and staff retention;
 (2)  programs that encourage high school students or
 other members of the community in the area served by the district to
 become teachers, including available teacher apprenticeship
 programs; and
 (3)  programs or strategies that school leaders may use
 to establish clear and attainable behavior expectations while
 proactively supporting students.
 (b)  From funds appropriated or otherwise available, the
 agency shall provide grants to school districts and open-enrollment
 charter schools to implement initiatives developed under this
 section.
 Sec. 21.467.  TEACHER TIME STUDY. (a) From funds
 appropriated or otherwise available for the purpose, the agency
 shall develop and maintain a technical assistance program to
 support school districts and open-enrollment charter schools in:
 (1)  studying how the district's or school's staff and
 student schedules, required noninstructional duties for classroom
 teachers, and professional development requirements for educators
 are affecting the amount of time classroom teachers work each week;
 and
 (2)  refining the schedules for students or staff as
 necessary to ensure teachers have sufficient time during normal
 work hours to fulfill all job duties, including addressing the
 needs of students.
 (b)  The agency shall periodically make findings and
 recommendations for best practices publicly available using
 information from participating school districts and
 open-enrollment charter schools.
 SECTION 1.19.  Chapter 21, Education Code, is amended by
 adding Subchapter R to read as follows:
 SUBCHAPTER R. TEXAS TEACHER RESIDENCY PARTNERSHIP PROGRAM
 Sec. 21.901.  DEFINITIONS. In this subchapter:
 (1)  "Board" means the State Board for Educator
 Certification.
 (2)  "Cooperating teacher" means a classroom teacher
 who:
 (A)  has at least three full school years of
 teaching experience with a superior record of assisting students in
 achieving improvement in student performance;
 (B)  is employed by a school district or
 open-enrollment charter school participating in a partnership
 program under this subchapter and paired with a partnership
 resident at the district or school; and
 (C)  provides coaching to a partnership resident
 in the teacher's classroom.
 (3)  "Partnership program" means a Texas Teacher
 Residency Partnership Program established at a school district or
 open-enrollment charter school in accordance with this subchapter.
 (4)  "Partnership resident" means a person enrolled in
 a qualified educator preparation program participating in a
 partnership program as a candidate for educator certification.
 (5)  "Qualified educator preparation program" means an
 educator preparation program approved in accordance with rules
 proposed under Section 21.903.
 Sec. 21.902.  ESTABLISHMENT OF PARTNERSHIP PROGRAM. (a)
 The commissioner shall establish the Texas Teacher Residency
 Partnership Program to enable qualified educator preparation
 programs to form partnerships with school districts or
 open-enrollment charter schools to provide residency positions to
 partnership residents at the district or school.
 (b)  The partnership program must be designed to:
 (1)  allow partnership residents to receive
 field-based experience working with cooperating teachers in
 prekindergarten through grade 12 classrooms; and
 (2)  gradually increase the amount of time a
 partnership resident spends engaging in instructional
 responsibilities, including observation, co-teaching, and
 lead-teaching responsibilities.
 Sec. 21.903.  QUALIFIED EDUCATOR PREPARATION PROGRAMS. The
 board shall propose rules specifying the requirements for board
 approval of an educator preparation program as a qualified educator
 preparation program for purposes of this subchapter.  The rules
 must require an educator preparation program to:
 (1)  use research-based best practices for recruiting
 and admitting candidates into the educator preparation program to
 participate in the partnership program;
 (2)  integrate curriculum, classroom practice, and
 formal observation and feedback;
 (3)  use multiple assessments to measure a partnership
 resident's progress in the partnership program; and
 (4)  partner with a school district or open-enrollment
 charter school.
 Sec. 21.904.  REQUIREMENTS FOR PARTICIPATING DISTRICTS AND
 SCHOOLS. (a)  A school district or open-enrollment charter school
 participating in the partnership program shall:
 (1)  enter into a written agreement with a qualified
 educator preparation program to:
 (A)  provide a partnership resident with at least
 one school year of clinical teaching in a residency position at the
 district or school in the subject area and grade level for which the
 resident seeks certification; and
 (B)  pair the partnership resident with a
 cooperating teacher;
 (2)  specify the amount of money the district receives
 under Section 48.157 that the district will provide to the program;
 (3)  only use money received under Section 48.157 to:
 (A)  implement the partnership program;
 (B)  provide compensation to:
 (i)  partnership residents in residency
 positions at the district or school; and
 (ii)  cooperating teachers who are paired
 with partnership residents at the district or school; and
 (C)  provide an amount equal to at least 10
 percent of the funding received by the district or school to the
 qualified educator preparation program with which the district or
 school partners;
 (4)  pay at least 50 percent of the compensation paid to
 partnership residents using money other than money received under
 Section 48.157; and
 (5)  provide any information required by the agency
 regarding the district's or school's implementation of the program.
 (b)  A school district or open-enrollment charter school may
 only pair a partnership resident with a cooperating teacher who
 agrees to participate in that role in a partnership program at the
 district or school partnership program.
 (c)  A partnership resident may not serve as a teacher of
 record, as that term is defined by Section 21.051.
 Sec. 21.905.  RESIDENCY EDUCATOR CERTIFICATE. The board
 shall propose rules specifying the requirements for the issuance of
 a residency educator certificate to a candidate who has
 successfully completed a qualified educator preparation program
 under Section 21.903.  The rules may not require the resident to
 pass a pedagogy examination unless the examination tests
 subject-specific content appropriate for the grade and subject area
 for which the candidate seeks certification.
 Sec. 21.906.  AGENCY SUPPORT. The agency shall provide
 technical assistance, planning, and support to school districts,
 open-enrollment charter schools, and qualified educator
 preparation programs, which must include:
 (1)  providing model forms and agreements a district,
 school, or educator preparation program may use to comply with the
 requirements of this subchapter; and
 (2)  support for district and school strategic staffing
 and compensation models to incentivize participation in a
 partnership program.
 Sec. 21.907.  AUTHORITY TO ACCEPT CERTAIN FUNDS. The
 commissioner may solicit and accept gifts, grants, and donations
 from public and private entities to use for the purposes of this
 subchapter.
 Sec. 21.908.  RULES; NEGOTIATED RULEMAKING COMMITTEE. (a)
 The board shall propose rules necessary to implement this
 subchapter, including, subject to Subsection (b), rules under
 Sections 21.903 and 21.905.
 (b)  In using negotiated rulemaking procedures under Chapter
 2008, Government Code, for any proposed rule related to the
 implementation of Section 21.903 or 21.905, the board must appoint
 to the negotiated rulemaking committee persons representing
 institutions of higher education, as defined by Section 61.003.
 (c)  The commissioner shall adopt rules as necessary to
 implement this subchapter after considering the recommendations of
 the negotiated rulemaking committee appointed under Subsection
 (b).
 SECTION 1.20.  Section 29.153(b), Education Code, is amended
 to read as follows:
 (b)  A child is eligible for enrollment in a prekindergarten
 class under this section if the child is at least three years of age
 and:
 (1)  is unable to speak and comprehend the English
 language;
 (2)  is educationally disadvantaged;
 (3)  is homeless, regardless of the residence of the
 child, of either parent of the child, or of the child's guardian or
 other person having lawful control of the child;
 (4)  is the child of an active duty member of the armed
 forces of the United States, including the state military forces or
 a reserve component of the armed forces, who is ordered to active
 duty by proper authority;
 (5)  is the child of a member of the armed forces of the
 United States, including the state military forces or a reserve
 component of the armed forces, who was injured or killed while
 serving on active duty;
 (6)  is or ever has been in:
 (A)  the conservatorship of the Department of
 Family and Protective Services following an adversary hearing held
 as provided by Section 262.201, Family Code; or
 (B)  foster care in another state or territory, if
 the child resides in this state; [or]
 (7)  is the child of a person eligible for the Star of
 Texas Award as:
 (A)  a peace officer under Section 3106.002,
 Government Code;
 (B)  a firefighter under Section 3106.003,
 Government Code; or
 (C)  an emergency medical first responder under
 Section 3106.004, Government Code; or
 (8)  is the child of a person employed as a classroom
 teacher at a public primary or secondary school in the school
 district that offers a prekindergarten class under this section.
 SECTION 1.21.  Section 30.102(b), Education Code, is amended
 to read as follows:
 (b)  A classroom teacher, full-time librarian, full-time
 school counselor certified under Subchapter B, Chapter 21, or
 full-time school nurse employed by the department is entitled to
 receive as a minimum salary the [monthly] salary specified by
 Section 21.402. A classroom teacher, full-time librarian,
 full-time school counselor, or full-time school nurse may be paid,
 from funds appropriated to the department, a salary in excess of the
 minimum specified by that section, but the salary may not exceed the
 rate of pay for a similar position in the public schools of an
 adjacent school district.
 SECTION 1.22.  Section 33.009(h), Education Code, is amended
 to read as follows:
 (h)  From funds appropriated for that purpose, a school
 counselor who attends the academy under this section is entitled to
 receive a stipend in the amount determined by the coordinating
 board. If funds are available after all eligible school counselors
 have received a stipend under this subsection, the coordinating
 board shall pay a stipend in the amount determined by the
 coordinating board to a teacher who attends the academy under this
 section. A stipend received under this subsection is not
 considered in determining whether a district is paying the school
 counselor or teacher the minimum [monthly] salary under Section
 21.402.
 SECTION 1.23.  Sections 48.112(c) and (d), Education Code,
 are amended to read as follows:
 (c)  For each classroom teacher with a teacher designation
 under Section 21.3521 employed by a school district, the school
 district is entitled to an allotment equal to the following
 applicable base amount increased by the high needs and rural factor
 as determined under Subsection (d):
 (1)  $12,000, or an increased amount not to exceed
 $36,000 [$32,000] as determined under Subsection (d), for each
 master teacher;
 (2)  $9,000 [$6,000], or an increased amount not to
 exceed $25,000 [$18,000] as determined under Subsection (d), for
 each exemplary teacher; [and]
 (3)  $5,000 [$3,000], or an increased amount not to
 exceed $15,000 [$9,000] as determined under Subsection (d), for
 each recognized teacher; and
 (4)  $3,000, or an increased amount not to exceed
 $9,000 as determined under Subsection (d), for each:
 (A)  acknowledged teacher; or
 (B)  teacher designated as nationally board
 certified.
 (d)  The high needs and rural factor is determined by
 multiplying the following applicable amounts by the average of the
 point value assigned to each student at a district campus under
 Subsection (e):
 (1)  $6,000 [$5,000] for each master teacher;
 (2)  $4,000 [$3,000] for each exemplary teacher; [and]
 (3)  $2,500 [$1,500] for each recognized teacher; and
 (4)  $1,500 for each:
 (A)  acknowledged teacher; or
 (B)  teacher designated as nationally board
 certified.
 SECTION 1.24.  Subchapter D, Chapter 48, Education Code, is
 amended by adding Section 48.157 to read as follows:
 Sec. 48.157.  RESIDENCY PARTNERSHIP ALLOTMENT. (a)  In this
 section, "partnership program" and "partnership resident" have the
 meanings assigned by Section 21.901.
 (b)  For each partnership resident employed at a school
 district in a residency position under Subchapter R, Chapter 21,
 the district is entitled to an allotment equal to a base amount of
 $22,000 increased by the high needs and rural factor, as determined
 under Subsection (c), to an amount not to exceed $42,000.
 (c)  The high needs and rural factor is determined by
 multiplying $5,000 by the lesser of:
 (1)  the average of the point value assigned to each
 student at a district campus under Sections 48.112(e) and (f); or
 (2)  4.0.
 (d)  In addition to the funding under Subsection (b), a
 district that qualifies for an allotment under this section is
 entitled to an additional $2,000 for each partnership resident
 employed in a residency position at the district who is a candidate
 for special education or bilingual education certification.
 (e)  The Texas School for the Deaf and the Texas School for
 the Blind and Visually Impaired are entitled to an allotment under
 this section.  If the commissioner determines that assigning point
 values under Subsection (c) to students enrolled in the Texas
 School for the Deaf or the Texas School for the Blind and Visually
 Impaired is impractical, the commissioner may use the average point
 value assigned for those students' home districts for purposes of
 calculating the high needs and rural factor.
 SECTION 1.25.  Subchapter F, Chapter 48, Education Code, is
 amended by adding Section 48.280 to read as follows:
 Sec. 48.280.  SALARY TRANSITION ALLOTMENT. (a) A school
 district is entitled to receive an annual salary transition
 allotment equal to the number of employees on the minimum salary
 schedule under Section 21.402 for the applicable school year
 multiplied by the difference, if that amount is greater than zero,
 between:
 (1)  the amount calculated under Subsection (b); and
 (2)  the amount calculated under Subsection (c).
 (b)  The agency shall calculate a school district's value for
 Subsection (a)(1) by determining the difference between:
 (1)  the amount the district must pay in compensation
 for the current school year for employees on the minimum salary
 schedule under Section 21.402, as amended by _.B. ___, 88th
 Legislature, 3rd Called Session, 2023, divided by the total number
 of employees on the minimum salary schedule under that section for
 that school year; and
 (2)  the amount paid in compensation for the 2023-2024
 school year for employees on the minimum salary schedule under
 Section 21.402 divided by the total number of employees on the
 minimum salary schedule under that section for that school year.
 (c)  The agency shall calculate a school district's value for
 Subsection (a)(2) by determining the difference between:
 (1)  the total maintenance and operations revenue for
 the current school year divided by the total number of employees on
 the minimum salary schedule under Section 21.402 for that school
 year; and
 (2)  the total maintenance and operations revenue that
 would have been available to the district for the current school
 year using the basic allotment formula provided by Section 48.051
 and the small and mid-sized allotment formulas provided by Section
 48.101 as those sections existed on January 1, 2023, divided by the
 total number of employees on the minimum salary schedule under
 Section 21.402 for that school year.
 (d)  In calculating the values under this section for a
 school district or open-enrollment charter school to which Section
 21.402 does not apply, the agency shall include as employees on the
 minimum salary schedule under that section employees of the
 district or school who would have been on the minimum salary
 schedule under that section if the district or school were a school
 district to which that section applies.
 (e)  Before making a final determination of the amount of an
 allotment to which a school district is entitled under this
 section, the agency shall ensure each school district has an
 opportunity to review and submit revised information to the agency
 for purposes of calculating the values under Subsection (a).
 (f)  For purposes of this section, "compensation" includes
 contributions made to the Teacher Retirement System of Texas under
 Sections 825.4035 and 825.405, Government Code.
 SECTION 1.26.  The following provisions are repealed:
 (1)  Sections 21.402(b), (c), (c-1), (f), and (h),
 Education Code;
 (2)  Sections 21.403(a) and (d), Education Code;
 (3)  Subchapter Q, Chapter 21, Education Code;
 (4)  Section 48.114(b), Education Code; and
 (5)  Section 825.4092(f), Government Code.
 SECTION 1.27.  Not later than September 1, 2026, the
 commissioner of education, with the assistance of the executive
 director of the Teacher Retirement System of Texas and the
 comptroller of public accounts, shall make recommendations to the
 legislature to improve and coordinate pension contribution
 appropriations for public school employees.
 SECTION 1.28.  Section 21.257(f), Education Code, as added
 by this article, applies only to a hearing before a hearing examiner
 commenced on or after the effective date of this article.
 SECTION 1.29.  Immediately following the effective date of
 this article, a school district or open-enrollment charter school
 shall redesignate a teacher who holds a designation made under
 Section 21.3521, Education Code, before the effective date of this
 article, to reflect the teacher's designation under Section
 21.3521, Education Code, as amended by this article.  Funding
 provided to a school district under Section 48.112, Education Code,
 for a teacher who held a designation made under Section 21.3521,
 Education Code, as that section existed immediately before the
 effective date of this article, shall be increased to reflect the
 teacher's redesignation under Section 21.3521, Education Code, as
 amended by this article.
 SECTION 1.30.  Notwithstanding Section 21.903, Education
 Code, as added by this article, until the State Board for Educator
 Certification adopts rules specifying the requirements for
 approval of an educator preparation program as a qualified educator
 preparation program as required by that section, the commissioner
 of education may approve a program as a qualified educator
 preparation program for purposes of Subchapter R, Chapter 21,
 Education Code, as added by this article, if the commissioner
 determines that the program meets the requirements under Section
 21.903, Education Code, as added by this article.  An educator
 preparation program's designation as a qualified educator
 preparation program by the commissioner under this section remains
 effective until the first anniversary of the earliest effective
 date of a rule adopted by the State Board for Educator Certification
 under Section 21.903, Education Code, as added by this article.
 SECTION 1.31.  This article takes effect September 1, 2024.
 ARTICLE 2. CHANGES RELATED TO PUBLIC SCHOOL FINANCE EFFECTIVE FOR
 2023-2024 SCHOOL YEAR
 SECTION 2.01.  Section 12.106, Education Code, is amended by
 amending Subsection (d) and adding Subsections (d-1) and (d-2) to
 read as follows:
 (d)  Subject to Subsection (e), in addition to other amounts
 provided by this section, a charter holder is entitled to receive,
 for the open-enrollment charter school, funding per student in
 average daily attendance in an amount equal to the guaranteed level
 of state and local funds per student per cent of tax effort under
 Section 46.032(a) multiplied by the lesser of:
 (1)  the state average interest and sinking fund tax
 rate imposed by school districts for the current year; or
 (2)  a rate that would result in a total amount to which
 charter schools are entitled under this subsection for the current
 year equal to $300 [$60] million or a greater amount provided by
 appropriation.
 (d-1)  Notwithstanding Subsection (d)(2), the total amount
 that may be used to provide allotments under Subsection (d) may not
 exceed:
 (1)  for the 2023-2024 school year, $108 million;
 (2)  for the 2024-2025 school year, $156 million;
 (3)  for the 2025-2026 school year, $204 million; and
 (4)  for the 2026-2027 school year, $252 million.
 (d-2)  Subsection (d-1) and this subsection expire September
 1, 2028.
 SECTION 2.02.  Subchapter Z, Chapter 29, Education Code, is
 amended by adding Section 29.935 to read as follows:
 Sec. 29.935.  UNIVERSITY OF TEXAS MCDONALD OBSERVATORY
 EDUCATION AND OUTREACH GRANT. (a)  From money appropriated for the
 Foundation School Program or otherwise made available for purposes
 of this section, the commissioner shall transfer the amount of $10
 million to The University of Texas at Austin to enhance education
 outreach and visitor experiences and engagement, particularly for
 students and educators, at The University of Texas McDonald
 Observatory at Mount Locke.
 (b)  Funds transferred under this section may only be used by
 The University of Texas McDonald Observatory at Mount Locke to:
 (1)  install new exhibits and renovate existing
 exhibits;
 (2)  modernize self-guided tours with the integration
 of technology;
 (3)  renovate and upgrade the observatory's theater and
 facilities;
 (4)  leverage technology to create first-class virtual
 experiences; and
 (5)  design in-person and virtual engagements for all
 ages with special consideration given to students and educators.
 (c)  The commissioner shall adopt rules as necessary to
 implement this section.
 (d)  This section expires September 1, 2025.
 SECTION 2.03.  Section 30.003, Education Code, is amended by
 amending Subsections (b) and (f-1) and adding Subsection (b-1) to
 read as follows:
 (b)  If the student is admitted to the school for a full-time
 program for the equivalent of two long semesters, the district's
 share of the cost is an amount equal to the dollar amount of
 maintenance and debt service taxes imposed by the district for that
 year, subject to Subsection (b-1), divided by the district's
 average daily attendance for the preceding year.
 (b-1)  For purposes of Subsection (b), the commissioner
 shall reduce the dollar amount of maintenance and debt service
 taxes imposed by the district for a year by the amount, if any, by
 which the district is required to reduce the district's local
 revenue level under Section 48.257 for that year.
 (f-1)  The commissioner shall determine the total amount
 that the Texas School for the Blind and Visually Impaired and the
 Texas School for the Deaf would have received from school districts
 in accordance with this section if the following provisions had not
 reduced the districts' share of the cost of providing education
 services:
 (1)  H.B. No. 1, Acts of the 79th Legislature, 3rd
 Called Session, 2006;
 (2)  Subsection (b-1) of this section;
 (3)  Section 45.0032;
 (4) [(3)]  Section 48.255; and
 (5) [(4)]  Section 48.2551.
 SECTION 2.04.  Subchapter B, Chapter 38, Education Code, is
 amended by adding Section 38.0631 to read as follows:
 Sec. 38.0631.  TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER
 TEXAS SCHOOL-BASED HEALTH CENTERS GRANT. (a)  From money
 appropriated for the Foundation School Program or otherwise made
 available for purposes of this section and in addition to other
 grants available under this subchapter, the commissioner shall
 transfer the amount of $20 million to the Texas Tech University
 Health Sciences Center to enhance the provision of telehealth
 services to public school students who receive services from
 school-based health centers located in partner schools that
 participate in the Texas Child Health Access through Telemedicine
 program operated by the Texas Child Mental Health Care Consortium
 established under Chapter 113, Health and Safety Code.
 (b)  Funds transferred under this section may only be used by
 the Texas Tech University Health Sciences Center to:
 (1)  establish health care delivery infrastructure to
 provide public school students the option of virtual health care
 clinic visits during school hours;
 (2)  develop a network of health care providers to
 facilitate direct access for public school students to health care
 providers through telehealth platforms; and
 (3)  establish partnerships with school districts.
 (c)  The commissioner shall adopt rules as necessary to
 implement this section.
 (d)  This section expires September 1, 2025.
 SECTION 2.05.  Sections 48.005(b), (e), and (f), Education
 Code, are amended to read as follows:
 (b)  A school district that experiences a decline of more
 than five [two] percent [or more] in average daily attendance shall
 be funded on the basis of[:
 [(1)  the actual average daily attendance of the
 preceding school year, if the decline is the result of the closing
 or reduction in personnel of a military base; or
 [(2)  subject to Subsection (e),] an average daily
 attendance of 95 [not to exceed 98] percent of the actual average
 daily attendance of the preceding school year[, if the decline is
 not the result of the closing or reduction in personnel of a
 military base].
 (e)  For each school year, the commissioner shall adjust the
 average daily attendance of school districts that are entitled to
 funding on the basis of an adjusted average daily attendance under
 Subsection (b) [(b)(2)] so that:
 (1)  all districts are funded on the basis of the same
 percentage of the preceding year's actual average daily attendance;
 and
 (2)  the total cost to the state does not exceed $50
 million [the amount specifically appropriated for that year for
 purposes of Subsection (b)(2)].
 (f)  An open-enrollment charter school is not entitled to
 funding based on an adjustment under Subsection (b) [(b)(2)].
 SECTION 2.06.  Sections 48.011(a-1), (d), and (e), Education
 Code, are amended to read as follows:
 (a-1)  The commissioner may modify dates relating to the
 adoption of a school district's maintenance and operations tax rate
 and, if applicable, an election required for the district to adopt
 that rate as necessary to implement the changes to the Foundation
 School Program and requirements relating to school district tax
 rates made by the 88th [H.B. 3, 86th] Legislature, 3rd Called
 [Regular] Session, 2023 [2019].
 (d)  Beginning with the 2027-2028 [2021-2022] school year,
 the commissioner may not make an adjustment under Subsection (a) or
 (a-1).
 (e)  This section expires September 1, 2028 [2023].
 SECTION 2.07.  Section 48.051, Education Code, is amended by
 amending Subsections (a), (c), and (d) and adding Subsections
 (c-3), (c-4), (c-5), and (c-6) to read as follows:
 (a)  For each student in average daily attendance, not
 including the time students spend each day in special education
 programs in an instructional arrangement other than mainstream or
 career and technology education programs, for which an additional
 allotment is made under Subchapter C, a district is entitled to an
 allotment equal to [the lesser of $6,160 or] the amount that results
 from the following formula:
 A = B [$6,160] X TR/MCR
 where:
 "A" is the allotment to which a district is entitled;
 "B" is the base amount, which equals the greater of:
 (1)  $6,190;
 (2)  an amount equal to the district's base amount under
 this section for the preceding school year; or
 (3)  the amount appropriated under Subsection (b);
 "TR" is the district's tier one maintenance and operations
 tax rate, as provided by Section 45.0032; and
 "MCR" is the district's maximum compressed tax rate, as
 determined under Section 48.2551.
 (c)  During any school year for which the value of "A"
 determined [maximum amount of the basic allotment provided] under
 Subsection (a) or, if applicable, the sum of the value of "A" and
 the allotment under Section 48.101 to which the district is
 entitled, [or (b)] is greater than the value of "A" or, if
 applicable, the sum of the value of "A" and the allotment under
 Section 48.101 to which the district is entitled, [maximum amount
 provided] for the preceding school year, a school district must use
 at least 50 [30] percent of the amount[, if the amount is greater
 than zero,] that equals the product of the average daily attendance
 of the district multiplied by the amount of the difference between
 the district's funding under this chapter per student in average
 daily attendance, excluding the amounts described by Subsection
 (c-6), for the current school year and the preceding school year to
 increase the average total compensation per [provide compensation
 increases to] full-time district employee [employees] other than an
 administrator [administrators] as follows:
 (1)  75 percent must be used to increase the average
 total compensation per full-time district employee employed as
 [paid to] classroom teachers, full-time librarians, full-time
 school counselors certified under Subchapter B, Chapter 21, and
 full-time school nurses[, prioritizing differentiated compensation
 for classroom teachers with more than five years of experience];
 and
 (2)  25 percent may be used as determined by the
 district to increase the average total compensation per [paid to]
 full-time district employee who is not described by Subdivision (1)
 [employees].
 (c-3)  In calculating the average total compensation per
 full-time district employee under Subsection (c), a school district
 may not consider compensation paid to a district employee employed
 in a position described by that subsection who is added by the
 district for the current school year and that increases the ratio of
 those employees to students enrolled in the district compared to
 the preceding school year.
 (c-4)  If a school district increases employee compensation
 in a school year to comply with Subsection (c), as amended by
 _.B. ___, 88th Legislature, 3rd Called Session, 2023, the district
 is providing compensation for services rendered independently of an
 existing employment contract applicable to that year and is not a
 violation of Section 53, Article III, Texas Constitution.
 (c-5)  A school district that does not meet the requirements
 of Subsection (c) during a school year may satisfy the requirements
 of this section by providing a full-time district employee
 described by that subsection a one-time bonus payment during the
 following school year in an amount equal to the difference between
 the compensation earned by the employee and the compensation the
 employee should have received during the school year if the
 district had complied with Subsection (c).
 (c-6)  For purposes of determining the amount of a school
 district's funding under this chapter under Subsection (c), the
 commissioner shall exclude:
 (1)  money received from the state instructional
 materials and technology fund under Section 31.021;
 (2)  the special education full individual and initial
 evaluation allotment under Section 48.1022;
 (3)  the college, career, and military readiness
 outcomes bonuses under Section 48.110;
 (4)  the school safety allotment under Section 48.115;
 and
 (5)  the allotments under Subchapter D, other than the
 allotments under Sections 48.153 and 48.154.
 (d)  In this section, "compensation" includes:
 (1)  benefits such as insurance premiums; and
 (2)  contributions to the Teacher Retirement System of
 Texas under Section 825.4035, Government Code.
 SECTION 2.08.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Section 48.1022 to read as follows:
 Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
 EVALUATION. For each student for whom a school district conducts a
 full individual and initial evaluation under Section 29.004 or 20
 U.S.C. Section 1414(a)(1), the district is entitled to an allotment
 of $500 or a greater amount provided by appropriation.
 SECTION 2.09.  Section 48.106(a-1), Education Code, is
 amended to read as follows:
 (a-1)  In addition to the amounts under Subsection (a), for
 each student in average daily attendance, a district is entitled to
 $150 [$50] for each of the following in which the student is
 enrolled:
 (1)  a campus designated as a P-TECH school under
 Section 29.556; or
 (2)  a campus that is a member of the New Tech Network
 and that focuses on project-based learning and work-based
 education.
 SECTION 2.10.  Section 48.108(a), Education Code, is amended
 to read as follows:
 (a)  For each student in average daily attendance in
 prekindergarten [kindergarten] through third grade, a school
 district is entitled to an annual allotment equal to the basic
 allotment multiplied by 0.1 if the student is:
 (1)  educationally disadvantaged; or
 (2)  an emergent bilingual student, as defined by
 Section 29.052, and is in a bilingual education or special language
 program under Subchapter B, Chapter 29.
 SECTION 2.11.  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 2.12.  Section 48.111(a), Education Code, is amended
 to read as follows:
 (a)  A [Except as provided by Subsection (c), a] school
 district is entitled to an annual allotment equal to the basic
 allotment multiplied by the applicable weight under Subsection
 (a-1) for each enrolled student equal to the difference, if the
 difference is greater than zero, that results from subtracting 250
 from the difference between the number of students enrolled in the
 district during the school year immediately preceding the current
 school year and the number of students enrolled in the district
 during the school year six years preceding the current school year.
 SECTION 2.13.  Section 48.115(a), Education Code, is amended
 to read as follows:
 (a)  Except as provided by Subsection (a-1), a school
 district is entitled to an annual allotment equal to the greater of
 [sum of the following amounts or a greater amount provided by
 appropriation]:
 (1)  [$10 for each student in average daily attendance,
 plus $1 for each student in average daily attendance per every $50
 by which] the [district's maximum] basic allotment multiplied by
 0.005 for each student in average daily attendance [under Section
 48.051 exceeds $6,160, prorated as necessary]; and
 (2)  the following amount, as applicable, [$15,000] per
 campus:
 (A)  $30,000 for each campus with 500 or fewer
 enrolled students;
 (B)  $50,000 for each campus with 501 to 1,000
 enrolled students;
 (C)  $75,000 for each campus with 1,001 to 1,500
 enrolled students;
 (D)  $87,500 for each campus with 1,501 to 2,000
 enrolled students; and
 (E)  $100,000 for each campus with more than 2,000
 enrolled students.
 SECTION 2.14.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Sections 48.116 and 48.119 to read as follows:
 Sec. 48.116.  FINE ARTS ALLOTMENT. (a)  For each student in
 average daily attendance enrolled in a fine arts education course
 approved by the agency under Subsection (b) in grades 6 through 12,
 a school district is entitled to an annual allotment equal to:
 (1)  if the student is not educationally disadvantaged,
 the basic allotment, or, if applicable, the sum of the basic
 allotment and the allotment under Section 48.101 to which the
 district is entitled, multiplied by .008; or
 (2) if the student is educationally disadvantaged, the
 amount determined under Subdivision (1) multiplied by two.
 (b)  The agency shall approve fine arts education courses
 that qualify for the allotment provided under this section.  The
 approved courses must include fine arts education courses that:
 (1)  are authorized by the State Board of Education,
 including music, art, theater, and dance;
 (2)  provide students with the knowledge and skills
 necessary for success in the fine arts; and
 (3)  require a student in full-time attendance to
 receive not less than 225 minutes of fine arts instruction per week.
 (c)  The agency shall annually publish a list of fine arts
 courses approved under Subsection (b).
 Sec. 48.119.  BOOK SAFETY ALLOTMENT. (a)  For each student
 in average daily attendance, a school district is entitled to an
 annual allotment of $3 or a greater amount provided by
 appropriation.
 (b)  Funds allocated under this section may be used only to
 ensure that school library books and related materials meet the
 standards adopted under Section 33.021.
 (c)  The agency shall adopt a list of approved vendors at
 which a school district may spend funds allocated under this
 section for the purpose described by Subsection (b).
 SECTION 2.15.  Section 48.118(f), Education Code, is amended
 to read as follows:
 (f)  The total amount of state funding for allotments and
 outcomes bonuses under this section may not exceed $5 million per
 year unless money is specifically appropriated for the purpose of
 this section and designated as money in excess of the $5 million
 permitted under this subsection.  If the total amount of allotments
 and outcomes bonuses to which school districts are entitled under
 this section exceeds the amount permitted under this subsection,
 the agency shall allocate state funding to districts under this
 section in the following order:
 (1)  allotments under Subsection (a) for which school
 districts participating in partnerships prioritized under Section
 29.912(h) are eligible;
 (2)  allotments under Subsection (a) for which school
 districts that entered into a memorandum of understanding or letter
 of commitment regarding a multidistrict pathway partnership, as
 defined by commissioner rule, before May 1, 2023, are eligible;
 (3)  allotments under Subsection (a) for which school
 districts that have entered into a performance agreement under
 Section 29.912 with a coordinating entity that is an institution of
 higher education, as defined by Section 61.003, are eligible;
 (4)  allotments under Subsection (a) for which school
 districts with the highest percentage of students who are
 educationally disadvantaged, in descending order, are eligible;
 and
 (5)  outcomes bonuses under Subsection (c) for which
 school districts with the highest percentage of students who are
 educationally disadvantaged, in descending order, are eligible.
 SECTION 2.16.  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 special education students is
 entitled to a state allocation at a [paid on a previous year's
 cost-per-mile basis. The] rate of $1.75 per mile or a greater
 amount provided [allowable shall be set] by appropriation [based on
 data gathered from the first year of each preceding biennium].
 Districts may use a portion of their support allocation to pay
 transportation costs, if necessary. The commissioner may grant an
 amount set by appropriation for private transportation to reimburse
 parents or their agents for transporting eligible special education
 students. The mileage allowed shall be computed along the shortest
 public road from the student's home to school and back, morning and
 afternoon. The need for this type of transportation shall be
 determined on an individual basis and shall be approved only in
 extreme hardship cases.
 SECTION 2.17.  Subchapter D, Chapter 48, Education Code, is
 amended by adding Sections 48.160  and 48.161 to read as follows:
 Sec. 48.160.  ALLOTMENT FOR ADVANCED MATHEMATICS PATHWAYS
 AND CERTAIN PROGRAMS OF STUDY. (a)  A school district is eligible
 to receive an allotment under this section if the district offers
 through in-person instruction, remote instruction, or a hybrid of
 in-person and remote instruction:
 (1)  an advanced mathematics pathway that begins with
 Algebra I in grade eight and continues through progressively more
 advanced mathematics courses in each grade from grade 9 through 12;
 (2)  a program of study in:
 (A)  computer programming and software
 development; or
 (B)  cybersecurity; and
 (3)  a program of study in a specialized skilled trade,
 such as:
 (A)  plumbing and pipefitting;
 (B)  electrical;
 (C)  welding;
 (D)  diesel and heavy equipment;
 (E)  aviation maintenance; or
 (F)  applied agricultural engineering.
 (b)  Notwithstanding Subsection (a), a school district is
 eligible for the allotment under this section for students in
 average daily attendance in a high school in the district that does
 not offer a program of study described by Subsection (a)(2) or (3)
 if:
 (1)  high school students who reside in the attendance
 zone of the high school may participate in the program of study by
 enrolling in another high school:
 (A)  that:
 (i)  is in the same district or a neighboring
 school district;
 (ii)  was assigned the same or a better
 campus overall performance rating under Section 39.054 as the high
 school in whose attendance zone the students reside; and
 (iii)  offers the program of study; and
 (B)  to and from which transportation is provided
 for those students; or
 (2)  students in average daily attendance in the high
 school:
 (A)  are offered instruction for the program of
 study at another location, such as another high school in the same
 district or a neighboring school district; and
 (B)  receive transportation to and from the
 location described by Paragraph (A).
 (c)  An eligible school district is entitled to an annual
 allotment of $10 for each student in average daily attendance at a
 high school in the district that offers a pathway or program of
 study from each subdivision described by Subsection (a) if:
 (1)  each student in average daily attendance at the
 high school takes a progressively more advanced mathematics course
 each year of enrollment; and
 (2)  for each of those pathways or programs of study, at
 least one student in average daily attendance at the high school
 completes a course in the pathway or program of study.
 (d)  A school district that receives an allotment under
 Subsection (c) and Section 48.101 is entitled to receive an
 additional allotment in an amount equal to the product of 0.1 and
 the allotment to which the district is entitled under Section
 48.101 for each student for which the district receives an
 allotment under Subsection (c).  An open-enrollment charter school
 is not eligible for an allotment under this subsection.
 (e)  The commissioner by rule may establish requirements to
 ensure students in average daily attendance in a high school to
 which Subsection (b) applies have meaningful access to the programs
 of study described by Subsections (a)(2) and (3).
 (f)  The agency may reduce the amount of a school district's
 allotment under this section if the agency determines that the
 district has not complied with any provision of this section.
 Sec. 48.161.  COMMUNITIES IN SCHOOLS EXPANSION
 ALLOTMENT.  (a)  A school district is eligible to receive an
 annual allotment of $50,000 for each campus in the district that
 participates in the Communities In Schools program under Subchapter
 E, Chapter 33.
 (b)  The commissioner by rule may establish requirements for
 the use of an allotment under this section by a school district to
 ensure that the allotment is used to establish or expand a
 Communities In Schools program on a district campus.
 (c)  The amount appropriated for allotments under this
 section may not exceed $50 million in a school year.  If the total
 amount of allotments to which districts are entitled under this
 section for a school year exceeds the amount appropriated under
 this subsection, the commissioner shall proportionately reduce
 each district's allotment under this section.
 (d)  The commissioner may reduce the amount of a school
 district's allotment under this section if the commissioner
 determines that the district has not complied with any provision of
 this section.
 SECTION 2.18.  Section 48.202, Education Code, is amended by
 amending Subsection (a-1) and adding Subsections (f-1) and (f-2) to
 read as follows:
 (a-1)  For purposes of Subsection (a), the dollar amount
 guaranteed level of state and local funds per weighted student per
 cent of tax effort ("GL") for a school district is:
 (1)  the greater of the amount of district tax revenue
 per weighted student per cent of tax effort available to a school
 district at the 96th percentile of wealth per weighted student or
 the amount that results from multiplying the maximum amount of the
 basic allotment provided under Section 48.051 for the applicable
 school year [6,160, or the greater amount provided under Section
 48.051(b), if applicable,] by 0.016, for the first eight cents by
 which the district's maintenance and operations tax rate exceeds
 the district's tier one tax rate; and
 (2)  subject to Subsection (f), the amount that results
 from multiplying the maximum amount of the basic allotment provided
 under Section 48.051 for the applicable school year [$6,160, or the
 greater amount provided under Section 48.051(b), if applicable,] by
 0.008, for the district's maintenance and operations tax effort
 that exceeds the amount of tax effort described by Subdivision (1).
 (f-1)  Notwithstanding any other provision of this chapter,
 Subsection (f) does not apply for the 2023-2024 school year.
 (f-2)  Subsection (f-1) and this subsection expire September
 1, 2025.
 SECTION 2.19.  Section 48.277(b), Education Code, is amended
 to read as follows:
 (b)  For purposes of calculating maintenance and operations
 revenue under Subsection (a), the commissioner shall:
 (1)  for purposes of Subsections (a)(1) and (2), use
 the following applicable school year:
 (A)  in a school year ending in an even-numbered
 year, the 2019-2020 school year; and
 (B)  in a school year ending in an odd-numbered
 year, the 2019-2020 or 2020-2021 school year, whichever is greater;
 (2)  include all state and local funding, except for
 any funding resulting from:
 (A)  reimbursement for disaster remediation costs
 under former Sections 41.0931 and 42.2524;
 (B)  an adjustment for rapid decline in taxable
 value of property under former Section 42.2521;
 (C)  an adjustment for property value affected by
 a state of disaster under former Section 42.2523; [and]
 (D)  additional state aid under Section 48.307 or
 48.308; and
 (E)  additional state aid for retention stipends
 under Section 48.285;
 (3)  adjust the calculation to reflect a reduction in
 tax effort by a school district; and
 (4)  if a school district or open-enrollment charter
 school receives a waiver relating to eligibility requirements for
 the national free or reduced-price lunch program under 42 U.S.C.
 Section 1751 et seq., use the numbers of educationally
 disadvantaged students on which the district's or school's
 entitlement to compensatory education funds was based for the
 school year before the school year in which the district or school
 received the waiver, adjusted for estimated enrollment growth.
 SECTION 2.20.  Subchapter F, Chapter 48, Education Code, is
 amended by adding Sections 48.284 and 48.285 to read as follows:
 Sec. 48.284.  PROPERTY VALUE STUDY HARDSHIP GRANTS. (a) For
 the 2023-2024 and 2024-2025 school years, from money appropriated
 for purposes of this section, the commissioner may administer a
 grant program to provide grants to eligible school districts to
 offset a reduction in the district's funding under the Foundation
 School Program resulting from the use of the state value for the
 district's taxable value of property as provided by Section
 403.302(c), Government Code, for the 2022 and 2023 tax years.
 (b)  The amount of a grant awarded under this section is the
 difference, if that difference is greater than zero, between:
 (1)  the funding the school district would have
 received under Chapter 46, this chapter, and Chapter 49 for the
 applicable school year if the local value for the district's
 taxable value of property was used for the applicable tax year; and
 (2)  the funding to which the district is entitled
 under Chapter 46, this chapter, and Chapter 49 for the applicable
 school year.
 (c)  An open-enrollment charter school is not eligible to
 receive a grant under this section.
 (d)  Funding provided to a school district under this section
 is in addition to all other funding provided under Chapter 46, this
 chapter, and Chapter 49.
 (e)  The commissioner may require a school district to
 submit, or request from a state agency or a political subdivision of
 this state, additional information as needed to make a
 determination under this section.
 (f)  The total amount of grants awarded under this section
 for a school year may not exceed $60 million.
 (g)  In awarding grants under this section, the commissioner
 shall prioritize school districts experiencing the greatest
 percentage reduction in funding described by Subsection (a).
 (h)  The commissioner may not adjust the amount of a grant
 awarded under this section based on data revisions received after
 the grant has been awarded.
 (i)  A determination by the commissioner under this section
 is final and may not be appealed.
 (j)  This section expires September 1, 2025.
 Sec. 48.285.  ADDITIONAL STATE AID FOR RETENTION STIPENDS.
 (a)  For the 2023-2024 school year, a school district, including a
 school district that is otherwise ineligible for state aid under
 this chapter, is entitled to state aid in an amount equal to the sum
 of:
 (1)  the product of $4,000 multiplied by the number of
 full-time employees subject to the minimum salary schedule under
 Section 21.402 employed by the district; and
 (2)  the product of $2,000 multiplied by the number of
 part-time classroom teachers, part-time librarians, part-time
 school counselors certified under Subchapter B, Chapter 21, and
 part-time school nurses employed by the district.
 (b)  A school district shall use state aid received under
 Subsection (a) to provide a one-time stipend to each employee for
 whom the district received state aid in the amount of the state aid
 provided under that subsection for that employee.
 (c)  An open-enrollment charter school is entitled to state
 aid under this section in the same manner as a school district and
 is required to provide a one-time stipend to each employee in a
 comparable role as a school district employee described by
 Subsection (a) as if those employees were subject to the minimum
 salary schedule under Section 21.402.
 (d)  A one-time stipend provided to an eligible employee
 under this section satisfies the compensation increase required by
 Section 48.051.
 (e)  A determination by the commissioner under this section
 is final and may not be appealed.
 (f)  A school district or an open-enrollment charter school
 is not entitled to funding under this section beginning with the
 2024-2025 school year.
 (g)  This section expires September 1, 2025.
 SECTION 2.21.  Sections 48.111(c), (c-1), and (c-2),
 Education Code, are repealed.
 SECTION 2.22.  Except as otherwise provided by this article,
 this article takes effect immediately if this Act receives a vote of
 two-thirds of all the members elected to each house, as provided by
 Section 39, Article III, Texas Constitution.  If this Act does not
 receive the vote necessary for immediate effect, the entirety of
 this article takes effect on the 91st day after the last day of the
 legislative session.
 ARTICLE 3. CHANGES RELATED TO PUBLIC SCHOOL FINANCE EFFECTIVE FOR
 2024-2025 SCHOOL YEAR
 SECTION 3.01.  Section 12.263(b), Education Code, is amended
 to read as follows:
 (b)  For purposes of determining the average daily
 attendance of an adult education program operated under a charter
 granted under this subchapter, a student is considered to be in
 average daily attendance, with a 100 percent attendance rate, for:
 (1)  all of the instructional days of the school year,
 if the student is enrolled for at least 75 percent of the school
 year;
 (2)  three-quarters [half] of the instructional days of
 the school year, if the student is enrolled for at least 50 percent
 but less than 75 percent of the school year;
 (3)  half [a quarter] of the instructional days of the
 school year, if the student is enrolled for at least 25 percent but
 less than 50 percent of the school year; or
 (4)  a quarter [one-tenth] of the instructional days of
 the school year, if the student is enrolled for at least 10 percent
 but less than 25 percent of the school year.
 SECTION 3.02.  Sections 48.0051(a), (b), and (d), Education
 Code, are amended to read as follows:
 (a)  The [Subject to Subsection (a-1), the] commissioner
 shall adjust the average daily attendance of a school district or
 open-enrollment charter school under Section 48.005 in the manner
 provided by Subsection (b) if the district or school:
 (1)  provides the minimum number of minutes of
 operational and instructional time required under Section 25.081
 and commissioner rules adopted under that section over at least 175
 [180] days of instruction; and
 (2)  offers an additional 30 days of half-day
 instruction for students enrolled in prekindergarten through fifth
 grade.
 (b)  For a school district or open-enrollment charter school
 described by Subsection (a), the commissioner shall increase the
 average daily attendance of the district or school under Section
 48.005 by the amount that results from the quotient of the sum of
 attendance by students described by Subsection (a)(2) for each of
 the 30 additional instructional days of half-day instruction that
 are provided divided by 175 [180].
 (d)  This section does not prohibit a school district from
 providing the minimum number of minutes of operational and
 instructional time required under Section 25.081 and commissioner
 rules adopted under that section over fewer than 175 [180] days of
 instruction.
 SECTION 3.03.  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 special education
 programs in a setting [an instructional arrangement] other than a
 general education setting [mainstream] or career and technology
 education programs, for which an additional allotment is made under
 Subchapter C, a district is entitled to an allotment equal to [the
 lesser of $6,160 or] the amount that results from the following
 formula:
 A = B [$6,160] X TR/MCR
 where:
 "A" is the allotment to which a district is entitled;
 "B" is the base amount, which equals the greater of:
 (1)  $6,500;
 (2)  an amount equal to the district's base amount under
 this section for the preceding school year; or
 (3)  the amount appropriated under Subsection (b);
 "TR" is the district's tier one maintenance and operations
 tax rate, as provided by Section 45.0032; and
 "MCR" is the district's maximum compressed tax rate, as
 determined under Section 48.2551.
 SECTION 3.04.  Effective September 1, 2026, Section 48.051,
 Education Code, is amended by adding Subsection (a-1) to read as
 follows:
 (a-1)  Notwithstanding Subsection (a), for the second year
 of each state fiscal biennium, the commissioner shall adjust the
 value of "B" under that subsection for the preceding state fiscal
 year by a factor equal to the average annual percentage increase, if
 any, in the Texas Consumer Price Index for the preceding 10 years.
 SECTION 3.05.  Section 48.101, Education Code, is amended to
 read as follows:
 Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT.  (a)
 Small and mid-sized districts are entitled to an annual allotment
 in accordance with this section.  In this section:
 (1)  "AA" is the district's annual allotment per
 student in average daily attendance;
 (2)  "ADA" is the number of students in average daily
 attendance for which the district is entitled to an allotment under
 Section 48.051, other than students in average daily attendance who
 do not reside in the district and are enrolled in a full-time
 virtual program; and
 (3)  "BA" is the basic allotment determined under
 Section 48.051.
 (b)  A school district that has fewer than 1,600 students in
 average daily attendance is entitled to an annual allotment for
 each student in average daily attendance based on the following
 formula:
 AA = ((1,600 - ADA) X .00044 [.0004]) X BA
 (c)  A school district that offers a kindergarten through
 grade 12 program and has less than 5,000 students in average daily
 attendance is entitled to an annual allotment for each student in
 average daily attendance based on the formula, of the following
 formulas, that results in the greatest annual allotment:
 (1)  the formula in Subsection (b), if the district is
 eligible for that formula; or
 (2)  AA = ((5,000 - ADA) X .000034 [.000025]) X BA.
 (d)  Instead of the allotment under Subsection (b) or (c)(1),
 a school district that has fewer than 300 students in average daily
 attendance and is the only school district located in and operating
 in a county is entitled to an annual allotment for each student in
 average daily attendance based on the following formula:
 AA = ((1,600 - ADA) X .00054 [.00047]) X BA
 SECTION 3.06.  Section 48.102, Education Code, is amended to
 read as follows:
 Sec. 48.102.  SPECIAL EDUCATION. (a) For each enrolled
 student [in average daily attendance] in a special education
 program under Subchapter A, Chapter 29, [in a mainstream
 instructional arrangement,] a school district is entitled to an
 annual allotment equal to the basic allotment, or, if applicable,
 the sum of the basic allotment and the allotment under Section
 48.101 to which the district is entitled, multiplied by a weight in
 an amount set by the legislature in the General Appropriations Act
 for the highest tier of intensity of service for which the student
 qualifies [1.15]. [For each full-time equivalent student in
 average daily attendance in a special education program under
 Subchapter A, Chapter 29, in an instructional arrangement other
 than a mainstream instructional arrangement, a district is entitled
 to an annual allotment equal to the basic allotment, or, if
 applicable, the sum of the basic allotment and the allotment under
 Section 48.101 to which the district is entitled, multiplied by a
 weight determined according to instructional arrangement as
 follows:
 [Homebound             5.0
 [Hospital class             3.0
 [Speech therapy             5.0
 [Resource room             3.0
 [Self-contained, mild and moderate,
 regular campus             3.0
 [Self-contained, severe, regular campus           3.0
 [Off home campus             2.7
 [Nonpublic day school             1.7
 [Vocational adjustment class             2.3]
 (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and
 2025-2026 school years, the amount of an allotment under this
 section shall be determined in accordance with Section 48.1023.
 This subsection expires September 1, 2026.
 (b)  The commissioner by rule shall define seven tiers of
 intensity of service for use in determining funding under this
 section. The commissioner must include one tier specifically
 addressing students receiving special education services in
 residential placement [A special instructional arrangement for
 students with disabilities residing in care and treatment
 facilities, other than state schools, whose parents or guardians do
 not reside in the district providing education services shall be
 established by commissioner rule.  The funding weight for this
 arrangement shall be 4.0 for those students who receive their
 education service on a local school district campus.  A special
 instructional arrangement for students with disabilities residing
 in state schools shall be established by commissioner rule with a
 funding weight of 2.8].
 (c)  [For funding purposes, the number of contact hours
 credited per day for each student in the off home campus
 instructional arrangement may not exceed the contact hours credited
 per day for the multidistrict class instructional arrangement in
 the 1992-1993 school year.
 [(d)  For funding purposes the contact hours credited per day
 for each student in the resource room;  self-contained, mild and
 moderate; and self-contained, severe, instructional arrangements
 may not exceed the average of the statewide total contact hours
 credited per day for those three instructional arrangements in the
 1992-1993 school year.
 [(e)  The commissioner by rule shall prescribe the
 qualifications an instructional arrangement must meet in order to
 be funded as a particular instructional arrangement under this
 section.  In prescribing the qualifications that a mainstream
 instructional arrangement must meet, the commissioner shall
 establish requirements that students with disabilities and their
 teachers receive the direct, indirect, and support services that
 are necessary to enrich the regular classroom and enable student
 success.
 [(f)  In this section, "full-time equivalent student" means
 30 hours of contact a week between a special education student and
 special education program personnel.
 [(g)]  The commissioner shall adopt rules and procedures
 governing contracts for residential and day program placement of
 [special education] students receiving special education services.
 (d)  [The legislature shall provide by appropriation for the
 state's share of the costs of those placements.
 [(h)]  At least 55 percent of the funds allocated under this
 section must be used in the special education program under
 Subchapter A, Chapter 29.
 (e) [(i)]  The agency shall ensure [encourage] the placement
 of students in special education programs, including students in
 residential placement [instructional arrangements], in the least
 restrictive environment appropriate for their educational needs.
 (f) [(j)]  A school district that provides an extended year
 program required by federal law for special education students who
 may regress is entitled to receive funds in an amount equal to 75
 percent, or a lesser percentage determined by the commissioner, of
 the basic allotment, or, if applicable, the sum of the basic
 allotment and the allotment under Section 48.101 to which the
 district is entitled for each [full-time equivalent] student in
 average enrollment [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 3.07.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Sections 48.1021 and 48.1023 to read as follows:
 Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
 (a)  For each six-week period in which a student in a special
 education program under Subchapter A, Chapter 29, receives eligible
 special education services, a school district is entitled to an
 allotment in an amount set by the legislature in the General
 Appropriations Act for the service group for which the student is
 eligible.
 (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and
 2025-2026 school years, the amount of an allotment under this
 section shall be determined in accordance with Section 48.1023.
 This subsection expires September 1, 2026.
 (b)  The commissioner by rule shall establish four service
 groups for use in determining funding under this section. In
 establishing the groups, the commissioner must consider the level
 of services, equipment, and technology required to meet the needs
 of students receiving special education services.
 (c)  A school district is entitled to receive an allotment
 under this section for each service group for which a student is
 eligible.
 (d)  A school district is entitled to the full amount of an
 allotment under this section for a student receiving eligible
 special education services during any part of a six-week period.
 (e)  At least 55 percent of the funds allocated under this
 section must be used for a special education program under
 Subchapter A, Chapter 29.
 (f)  Not later than December 1 of each even-numbered year,
 the commissioner shall submit to the Legislative Budget Board, for
 purposes of the allotment under this section, proposed amounts of
 funding for the service groups for the next state fiscal biennium.
 Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING. (a)
 For the 2024-2025 and 2025-2026 school years, the commissioner may
 adjust weights or amounts provided under Section 48.102 or 48.1021
 as necessary to ensure compliance with requirements regarding
 maintenance of state financial support under 20 U.S.C. Section
 1412(a)(18) and maintenance of local financial support under
 applicable federal law.
 (b)  For the 2024-2025 and 2025-2026 school years, the
 commissioner shall determine the formulas through which school
 districts receive funding under Sections 48.102 and 48.1021. In
 determining the formulas, the commissioner may combine the methods
 of funding under those sections with the method of funding provided
 by Section 48.102, as it existed on September 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 September 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 3.08.  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 3.09.  Sections 48.104(a), (d), and (e), Education
 Code, are amended to read as follows:
 (a)  For each student who does not have a disability and
 resides in a residential placement facility in a district in which
 the student's parent or legal guardian does not reside, a district
 is entitled to an annual allotment equal to the basic allotment
 multiplied by 0.2 or, if the student is educationally
 disadvantaged, 0.28 [0.275]. For each full-time equivalent student
 who is in a remedial and support program under Section 29.081
 because the student is pregnant, a district is entitled to an annual
 allotment equal to the basic allotment multiplied by 2.41.
 (d)  The weights assigned to the five tiers of the index
 established under Subsection (c) are, from least to most severe
 economic disadvantage, 0.23 [0.225], 0.2425 [0.2375], 0.255
 [0.25], 0.2675 [0.2625], and 0.28 [0.275].
 (e)  If insufficient data is available for any school year to
 evaluate the level of economic disadvantage in a census block
 group, a school district is entitled to an annual allotment equal to
 the basic allotment multiplied by 0.23 [0.225] for each student who
 is educationally disadvantaged and resides in that census block
 group.
 SECTION 3.10.  Section 48.108, Education Code, is amended by
 adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
 follows:
 (a-1)  In addition to the allotment under Subsection (a) and
 subject to Subsection (a-2), a school district is entitled to an
 annual allotment equal to the basic allotment multiplied by 0.2 for
 each student in average daily attendance enrolled in a
 prekindergarten class provided through a contract with a
 community-based child-care provider under Section 29.153.
 (a-2)  The total number of students in average daily
 attendance statewide for whom an allotment may be provided under
 Subsection (a-1) for a school year may not exceed 10,000 students in
 average daily attendance. If the number of students in average
 daily attendance for whom a school district is entitled to an
 allotment under this section exceeds the maximum number provided by
 this subsection, the commissioner shall allocate the allotments to
 school districts under this section in accordance with commissioner
 rule.
 (a-3)  Notwithstanding Subsection (a-2), the maximum number
 of students in average daily attendance statewide for whom an
 allotment may be provided under Subsection (a-1) for a school year
 is:
 (1)  for the 2024-2025 school year, 2,000 students;
 (2)  for the 2025-2026 school year, 4,500 students; and
 (3)  for the 2026-2027 school year, 7,000 students.
 (a-4)  Subsection (a-3) and this subsection expire September
 1, 2027.
 SECTION 3.11.  Section 48.114, Education Code, is amended by
 amending Subsection (a) and adding Subsection (d) to read as
 follows:
 (a)  A school district [that has implemented a mentoring
 program for classroom teachers who have less than two years of
 teaching experience under Section 21.458] is entitled to an
 allotment [as determined under Subsection (b)] to fund a [the]
 mentoring program and to provide stipends for mentor teachers if:
 (1)  the district has implemented a mentoring program
 for classroom teachers under Section 21.458; and
 (2)  the mentor teachers assigned under that program
 complete a training program that is required or developed by the
 agency for mentor teachers.
 (d)  A school district is entitled to an allotment of $2,000
 for each classroom teacher with less than two years of experience
 who participates in a mentoring program described by Subsection
 (a).  A district may receive an allotment under this section for no
 more than 40 teachers during a school year unless an appropriation
 is made for the purposes of providing a greater number of allotments
 per district.
 SECTION 3.12.  Section 48.115(a), Education Code, is amended
 to read as follows:
 (a)  Except as provided by Subsection (a-1), a school
 district is entitled to an annual allotment equal to the greater of
 [sum of the following amounts or a greater amount provided by
 appropriation]:
 (1)  [$10 for each student in average daily attendance,
 plus $1 for each student in average daily attendance per every $50
 by which] the [district's maximum] basic allotment multiplied by
 0.01 for each student in average daily attendance [under Section
 48.051 exceeds $6,160, prorated as necessary]; and
 (2)  the following amount, as applicable, [$15,000] per
 campus:
 (A)  $50,000 for each campus with 500 or fewer
 enrolled students;
 (B)  $100,000 for each campus with 501 to 1,000
 enrolled students;
 (C)  $150,000 for each campus with 1,001 to 1,500
 enrolled students;
 (D)  $175,000 for each campus with 1,501 to 2,000
 enrolled students; and
 (E)  $200,000 for each campus with more than 2,000
 enrolled students.
 SECTION `1.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Section 48.120 to read as follows:
 Sec. 48.120.  MILITARY TRANSITION AID. (a)  A school
 district is entitled to an annual allotment equal to the basic
 allotment multiplied by 0.08 for each eligible student in average
 daily attendance.
 (b)  A student is eligible for purposes of Subsection (a) if
 the student:
 (1)  is a military-connected student, as defined by
 Section 25.006; and
 (2)  is in the student's first year of enrollment in the
 school district.
 (c)  Funds allocated under this section may be used only to
 maintain a transition program that assists military families with
 relocation, enrollment, registration, records transfer, academic
 planning, counseling, and other support services available at a
 Purple Star Campus, as described by Section 33.909.
 SECTION 3.14.  Section 48.257, Education Code, is amended by
 amending Subsection (a) and adding Subsection (b-1) to read as
 follows:
 (a)  Subject to Subsection (b) and except as provided by
 Subsection (b-1), if a school district's tier one local share under
 Section 48.256 exceeds the district's entitlement under Section
 48.266(a)(1) less the district's distribution from the state
 available school fund, the district must reduce the district's tier
 one revenue level in accordance with Chapter 49 to a level not to
 exceed the district's entitlement under Section 48.266(a)(1) less
 the district's distribution from the state available school fund.
 (b-1)  This subsection applies only to a school district to
 which Subsection (a) applies, that received an allotment under
 Section 48.277 for the 2023-2024 school year, and that adopts a
 maintenance and operations tax rate for the current school year
 equal to or greater than the sum of the district's maximum
 compressed tax rate, as determined under Section 48.2551, and four
 cents.  Notwithstanding Subsection (a), if, after reducing the tier
 one revenue level of a school district to which this subsection
 applies as required under Subsection (a), the maintenance and
 operations revenue per student in average daily attendance of the
 district for a school year would be less than the maintenance and
 operations revenue per student in average daily attendance
 available to the district for the 2023-2024 school year, excluding
 any funding provided to the district under Sections 48.279 and
 48.281, the agency shall adjust the amount of the reduction
 required in the district's tier one revenue level under Subsection
 (a) up to the amount of local funds necessary to provide the
 district with the amount of maintenance and operations revenue per
 student in average daily attendance available to the district for
 the 2023-2024 school year.
 SECTION 3.15.  Subchapter F, Chapter 48, Education Code, is
 amended by adding Section 48.286 to read as follows:
 Sec. 48.286.  REGIONAL DISASTER INSURANCE VARIATION
 ALLOTMENT. (a) A school district is entitled to an annual
 allotment for each student in average daily attendance 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 the product, if the product is greater  than
 zero, of the district's variation factor as determined under
 Subsection (b) and .012.
 (b)  The commissioner shall determine a school district's
 variation factor by:
 (1)  assigning each school district to the county in
 which the district's central administrative office is located;
 (2)  determining the percentage spent on expenses
 related to property and casualty insurance by calculating the
 average of the quotient of property and casualty insurance expenses
 incurred by all districts assigned to a county under Subdivision
 (1) divided by total expenditures made by those districts for each
 of the three most recent school years; and
 (3)  subtracting one percentage point from the
 percentage determined under Subdivision (2).
 (c)  The commissioner shall use the variation factor
 determined under Subsection (b) for the 2023-2024 school year for a
 school district for purposes of determining a school district's
 allotment under Subsection (a) for any subsequent school year.
 SECTION 3.16.  Subchapter G, Chapter 48, Education Code, is
 amended by adding Sections 48.304 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. 48.306.  PARENT-DIRECTED SERVICES FOR STUDENTS
 RECEIVING SPECIAL EDUCATION SERVICES GRANT. (a) A student to whom
 the agency awards a grant under Subchapter A-1, Chapter 29, is
 entitled to receive an amount of $1,500 or a greater amount provided
 by appropriation.
 (b)  The legislature shall include in the appropriations for
 the Foundation School Program state aid sufficient for the agency
 to award grants under Subchapter A-1, Chapter 29, in the amount
 provided by this section.
 (c)  A student may receive one grant under Subchapter A-1,
 Chapter 29, unless the legislature appropriates money for an
 additional grant in the General Appropriations Act.
 (d)  A determination of the commissioner under this section
 is final and may not be appealed.
 SECTION 3.17.  Effective January 1, 2024, Section 26.08(n),
 Tax Code, is amended to read as follows:
 (n)  For purposes of this section, the voter-approval tax
 rate of a school district is the sum of the following:
 (1)  the rate per $100 of taxable value that is equal to
 the district's maximum compressed tax rate, as determined under
 Section 48.2551, Education Code, for the current year;
 (2)  the greater of:
 (A)  the district's enrichment tax rate for the
 preceding tax year, less any amount by which the district is
 required to reduce the district's enrichment tax rate under Section
 48.202(f), Education Code, in the current tax year; or
 (B)  the rate of $0.06 [$0.05] per $100 of taxable
 value; and
 (3)  the district's current debt rate.
 SECTION 3.18.  Except as otherwise provided by this article,
 this article takes effect September 1, 2024.
 ARTICLE 4.  CHANGES RELATED TO SPECIAL EDUCATION EFFECTIVE FOR
 2024-2025 SCHOOL YEAR
 SECTION 4.01.  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 (IDEA) (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 4.02.  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 a 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 4.03.  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 4.04.  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)  In this section, "state supported living center" has
 the meaning assigned by Section 531.002, Health and Safety Code.
 (b)  The Health and Human Services Commission, in
 collaboration with the agency and stakeholders who represent the
 full continuum of educational residential placement options, shall
 develop and provide to the agency materials regarding educational
 residential placement options for children who may qualify for
 placement in a state supported living center. The agency shall make
 the materials developed under this subsection available to school
 districts.
 (c)  At a meeting of a child's admission, review, and
 dismissal committee at which residential placement is discussed,
 the school district shall provide to the child's parent the
 materials developed under Subsection (b).
 SECTION 4.05.  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 4.06.  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 4.07.  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 4.08.  Section 29.018, Education Code, is amended by
 adding Subsection (g) to read as follows:
 (g)  This section expires September 1, 2026.
 SECTION 4.09.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Sections 29.026, 29.027, and 29.029 to read as
 follows:
 Sec. 29.026.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
 WITH AUTISM. (a)  The commissioner shall establish a program to
 award grants to school districts and open-enrollment charter
 schools that provide innovative services to students with autism.
 (b)  A school district, including a school district acting
 through a district charter issued under Subchapter C, Chapter 12,
 and an open-enrollment charter school, including a charter school
 that primarily serves students with disabilities, as provided under
 Section 12.1014, may apply for a grant under this section.
 (c)  A program is eligible for a grant under this section if
 the program:
 (1)  incorporates:
 (A)  evidence-based and research-based design;
 (B)  the use of empirical data on student
 achievement and improvement;
 (C)  parental support and collaboration;
 (D)  the use of technology;
 (E)  meaningful inclusion; and
 (F)  the ability to replicate the program for
 students statewide; and
 (2)  gives priority for enrollment to students with
 autism.
 (d)  A school district or open-enrollment charter school may
 not:
 (1)  charge a fee for the program, other than those
 authorized by law for students in public schools;
 (2)  require a parent to enroll a child in the program;
 (3)  allow an admission, review, and dismissal
 committee to place a student in the program without the written
 consent of the student's parent or guardian; or
 (4)  continue the placement of a student in the program
 after the student's parent or guardian revokes consent, in writing,
 to the student's placement in the program.
 (e)  A program under this section may:
 (1)  alter the length of the school day or school year
 or the number of minutes of instruction received by students;
 (2)  coordinate services with private or
 community-based providers;
 (3)  allow the enrollment of students without
 disabilities or with other disabilities, if approved by the
 commissioner; and
 (4)  adopt staff qualifications and staff to student
 ratios that differ from the applicable requirements of this title.
 (f)  The commissioner shall create an external panel of
 stakeholders, including parents of students with disabilities, to
 provide assistance in the selection of applications for the award
 of grants under this section.
 (g)  In selecting programs to receive a grant under this
 section, the commissioner shall prioritize programs that are
 collaborations between multiple school districts, multiple charter
 schools, or school districts and charter schools.  The selected
 programs must reflect the diversity of this state.
 (h)  A program selected to receive a grant under this section
 is to be funded for two years.
 (i)  A grant awarded to a school district or open-enrollment
 charter school under this section is in addition to the Foundation
 School Program funds that the district or charter school is
 otherwise entitled to receive.  A grant awarded under this section
 may not come out of Foundation School Program funds.
 (j)  The commissioner shall use funds appropriated or
 otherwise available to fund grants under this section.
 (k)  The commissioner and any program selected under this
 section may accept gifts, grants, and donations from any public or
 private source, person, or group to implement and administer the
 program.  The commissioner and any program selected under this
 section may not require any financial contribution from parents to
 implement and administer the program.
 (l)  A regional education service center may administer
 grants awarded under this section.
 Sec. 29.027.  GRANT PROGRAM PROVIDING TRAINING IN DYSLEXIA
 FOR TEACHERS AND STAFF. (a)  The commissioner shall establish a
 program to award grants to school districts and open-enrollment
 charter schools to increase local capacity to appropriately serve
 students with dyslexia.
 (b)  A school district, including a school district acting
 through a district charter issued under Subchapter C, Chapter 12,
 or an open-enrollment charter school, including a charter school
 that primarily serves students with disabilities, as provided under
 Section 12.1014, is eligible to apply for a grant under this section
 if the district or school submits to the commissioner a proposal on
 the use of grant funds that:
 (1)  incorporates  evidence-based and research-based
 design; and
 (2)  increases local capacity to appropriately serve
 students with dyslexia by providing:
 (A)  high-quality training to classroom teachers
 and administrators in meeting the needs of students with dyslexia;
 or
 (B)  training to intervention staff resulting in
 appropriate credentialing related to dyslexia.
 (c)   The commissioner shall create an external panel of
 stakeholders, including parents of students with disabilities, to
 provide assistance in the selection of applications for the award
 of grants under this section.
 (d)  A grant under this section is to be awarded for two
 years.
 (e)  A grant awarded to a school district or open-enrollment
 charter school under this section is in addition to the Foundation
 School Program funds that the district or charter school is
 otherwise entitled to receive. A grant awarded under this section
 may not come out of Foundation School Program funds.
 (f)  The commissioner shall use funds appropriated or
 otherwise available to fund grants under this section.
 (g)  The commissioner and any grant recipient selected under
 this section may accept gifts, grants, and donations from any
 public or private source, person, or group to implement and
 administer the grant.  The commissioner and any grant recipient
 selected under this section may not require any financial
 contribution from parents to implement and administer the grant.
 (h)  A regional education service center may administer
 grants awarded under this section.
 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 4.10.  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 4.11.  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 4.12.  Section 29.042(a), Education Code, is 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 the amount provided under Section 48.306 [of
 not more than $1,500] to purchase supplemental [special education]
 services and supplemental [special education] instructional
 materials.  A student may receive one grant under this subchapter
 unless the legislature appropriates money for an additional grant
 in the General Appropriations Act.
 SECTION 4.13.  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 4.14.  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 4.15.  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 4.16.  Subchapter A-1, Chapter 29, Education Code,
 is amended by adding Section 29.0475 to read as follows:
 Sec. 29.0475.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
 AUTONOMY. (a) A provider of supplemental services or vendor of
 supplemental instructional materials that receives money
 distributed under the program is not a recipient of federal
 financial assistance on the basis of receiving that money.
 (b)  A rule adopted or action taken related to the program by
 an individual, governmental entity, court of law, or program
 administrator may not:
 (1)  consider the actions of a provider of supplemental
 services, vendor of supplemental instructional materials, or
 program participant to be the actions of an agent of state
 government;
 (2)  limit:
 (A)  a provider of supplemental services' ability
 to determine the methods used to educate the provider's students or
 to exercise the provider's religious or institutional values; or
 (B)  a program participant's ability to determine
 the participant's educational content or to exercise the
 participant's religious values;
 (3)  obligate a provider of supplemental services or
 program participant to act contrary to the provider's or
 participant's religious or institutional values, as applicable;
 (4)  impose any regulation on a provider of
 supplemental services, vendor of supplemental instructional
 materials, or program participant beyond those regulations
 necessary to enforce the requirements of the program; or
 (5)  require as a condition of receiving money
 distributed under the program:
 (A)  a provider of supplemental services to modify
 the provider's creed, practices, admissions policies, curriculum,
 performance standards, employment policies, or assessments; or
 (B)  a program participant to modify the
 participant's creed, practices, curriculum, performance standards,
 or assessments.
 (c)  In a 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 by clear and convincing evidence
 that the rule:
 (1)  is necessary to implement or enforce the program
 as provided by this subchapter;
 (2)  does not violate this section;
 (3)  does not impose an undue burden on a program
 participant or a provider of supplemental services or vendor of
 supplemental instructional materials that participates or applies
 to participate in the program; and
 (4)  is the least restrictive means of accomplishing
 the purpose of the program while recognizing the independence of a
 provider of supplemental services to meet the educational needs of
 students in accordance with the provider's religious or
 institutional values.
 SECTION 4.17.  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 4.18.  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 is final and may not be appealed.
 SECTION 4.19.  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 4.20.  Section 29.315, Education Code, is amended to
 read as follows:
 Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF
 UNDERSTANDING. The 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 4.21.  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 education supports
 [services], including special seats, books, instructional media,
 and other supplemental supplies and services required for proper
 instruction.
 SECTION 4.22.  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 4.23.  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 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 4.24.  Section 37.146(a), Education Code, as
 effective until January 1, 2025, 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 4.25.  Section 37.146(a), Education Code, as
 effective January 1, 2025, 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 45A.101,
 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 4.26.  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 4.27.  Section 29.002, Education Code, is repealed.
 SECTION 4.28.  This article takes effect immediately if this
 Act receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, this article takes effect on the 91st day after the last day
 of the legislative session.
 ARTICLE 5. EDUCATION SAVINGS ACCOUNT PROGRAM
 SECTION 5.01.  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)  "Certified educational assistance organization"
 means an organization certified under Section 29.354 to support the
 administration of the program.
 (3)  "Child with a disability" means a child who is
 eligible to participate in a school district's special education
 program under Section 29.003.
 (4)  "Higher education provider" means an institution
 of higher education or a private or independent institution of
 higher education, as those terms are defined by Section 61.003.
 (5)  "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.
 (6)  "Participating child" means a child enrolled in
 the program.
 (7)  "Participating parent" means a parent of a
 participating child who submitted an application under Section
 29.356 on behalf of the child.
 (8)  "Program" means the program established under this
 subchapter.
 (9)  "Program participant" means a participating child
 or a participating parent.
 Sec. 29.352.  ESTABLISHMENT OF PROGRAM. The comptroller
 shall establish a program to provide funding for approved
 education-related expenses of participating children.
 Sec. 29.353.  PROGRAM FUND. (a) The program fund is an
 account in the general revenue fund to be administered by the
 comptroller.
 (b)  The fund is composed of:
 (1)  money appropriated to the fund;
 (2)  gifts, grants, and donations received under
 Section 29.370; and
 (3)  any other money available for purposes of the
 program.
 (c)  Money in the fund may be appropriated only for the uses
 specified by this subchapter.
 (d)  The governor and the Legislative Budget Board may not
 transfer or repurpose money under a proposal under Chapter 317,
 Government Code, to provide funding to administer the program.
 Sec. 29.3535.  PROMOTION OF PROGRAM.  Notwithstanding
 Chapter 2113, Government Code, the comptroller or the comptroller's
 designee may enter into contracts or agreements and engage in
 marketing, advertising, and other activities to promote, market,
 and advertise the development and use of the program. The
 comptroller may use money from the program fund to pay for
 activities authorized under this section.
 Sec. 29.354.  SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
 ORGANIZATIONS. (a) An organization may apply to the comptroller
 for certification as a certified educational assistance
 organization during an application period established by the
 comptroller.
 (b)  To be eligible for certification, an organization must:
 (1)  have the ability to perform one or more of the
 duties and functions required of a certified educational assistance
 organization under this subchapter;
 (2)  be in good standing with the state; and
 (3)  be able to assist the comptroller in administering
 the program in whole or in part, such as the ability to:
 (A)  accept, process, and track applications for
 the program;
 (B)  assist prospective applicants, applicants,
 and program participants with finding preapproved education
 service providers and vendors of educational products;
 (C)  accept and process payments for approved
 education-related expenses; and
 (D)  verify that program funding is used only for
 approved education-related expenses.
 (c)  The comptroller may certify one or more educational
 assistance organizations to support the administration of the
 program, including by:
 (1)  administering in whole or in part:
 (A)  the application process under Section
 29.356; and
 (B)  the program expenditures process under
 Section 29.360; and
 (2)  assisting prospective applicants, applicants, and
 program participants with understanding approved education-related
 expenses and finding preapproved education service providers and
 vendors of educational products.
 (d)  A certified educational assistance organization is not
 considered to be a provider of professional or consulting services
 under Chapter 2254, Government Code.
 Sec. 29.355.  ELIGIBLE CHILD. (a) A child is eligible to
 participate in the program and may, subject to available funding
 and the requirements of this subchapter, initially enroll in the
 program for the following school year if the child is eligible to
 attend a public school under Section 25.001 and:
 (1)  either:
 (A)  was enrolled in a public school in this state
 for at least 90 percent of the school year preceding the school year
 for which the child applies to enroll in the program;
 (B)  is enrolling in kindergarten or first grade
 for the first time; or
 (C)  attended a private school on a full-time
 basis or was home-schooled for the preceding school year; or
 (2)  is a sibling of a child who is eligible to
 participate in the program and:
 (A)  applies to enroll in the program for the same
 school year in which the sibling applies to enroll in the program;
 or
 (B)  is participating in the program.
 (b)  A child who establishes eligibility under this section
 may, subject to available funding and the requirements of this
 subchapter, 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, in a manner in
 which the child will be counted toward the school's average daily
 attendance for purposes of the allocation of funding under the
 foundation school program;
 (4)  for a child who performed satisfactorily on an
 assessment instrument administered under Subchapter B, Chapter 39,
 in the school year preceding the child's enrollment in the program,
 the date of the first day of the school year following the school
 year in which the child fails to perform satisfactorily for the
 second consecutive year in the same subject area on an assessment
 instrument required under Section 29.371; or
 (5)  the date on which the child is declared ineligible
 for the program by the comptroller under this subchapter.
 (c)  Notwithstanding Subsection (a) or (b), a child is not
 eligible to participate in the program during the period in which
 the child's parent or legal guardian is a state representative or
 state senator.
 Sec. 29.3551.  PROGRAM ENROLLMENT. (a) For the 2024-2025
 school year, the total amount of children participating in the
 program may not exceed 25,000.
 (b)  For the 2025-2026 and 2026-2027 school years, the total
 amount of children participating in the program may not exceed the
 sum of:
 (1)  the number of children who participated in the
 program during the preceding school year; and
 (2)  25,000.
 (c)  This section expires September 1, 2027.
 Sec. 29.356.  APPLICATION TO PROGRAM. (a) A parent of an
 eligible child may apply to a certified educational assistance
 organization designated by the comptroller to enroll the child in
 the program for the following school year. The comptroller shall
 establish deadlines by which an applicant must complete and submit
 an application form to participate in the program.
 (b)  On receipt of more acceptable applications during an
 application period for admission under this section than available
 positions in the program due to insufficient funding, a certified
 educational assistance organization shall, at the direction of the
 comptroller, prioritize applicants:
 (1)  in the following order:
 (A)  children to whom Paragraph (B) does not
 apply; and
 (B)  children who previously ceased participation
 in the program due to enrollment in a public school; and
 (2)  within each of the groups described by Subdivision
 (1), as follows, as applicable:
 (A)  children with a disability who are members of
 a household with a total annual income that is at or below 400
 percent of the federal poverty guidelines;
 (B)  children who are members of a household with
 a total annual income that is at or below 185 percent of the federal
 poverty guidelines;
 (C)  children who are members of a household with
 a total annual income that is above 185 percent of the federal
 poverty guidelines and below 400 percent of the federal poverty
 guidelines; and
 (D)  children who are members of a household with
 a total annual income that is at or above 400 percent of the federal
 poverty guidelines.
 (b-1)  For purposes of Subsection (b), a certified
 educational assistance organization shall prioritize a
 participating child's sibling who is initially eligible to
 participate in the program under Section 29.355(a)(2) in the same
 manner as the participating child.
 (b-2)  The agency shall provide to the comptroller the
 information necessary to make the determinations required under
 Subsection (b).
 (c)  The comptroller shall create an application form for the
 program and ensure the application form is made readily available
 through various sources, including a certified educational
 assistance organization's Internet website. The application form
 must state the application deadlines established by the comptroller
 under Subsection (a). Each certified educational assistance
 organization designated under Subsection (a) shall ensure that the
 application form, including any required supporting document, is
 capable of being submitted to the organization electronically.
 (d)  The comptroller shall create and maintain a waiting list
 based on the priority categories described by Subsection (b) for
 applicants if, during an application period, there are more
 acceptable applications for admission than there are available
 positions.
 (e)  Each certified educational assistance organization
 designated under Subsection (a) shall post on the organization's
 Internet website program information for prospective applicants,
 including:
 (1)  a description of the program;
 (2)  expenses allowed under the program under Section
 29.359;
 (3)  a link to a list of preapproved education service
 providers and vendors of educational products under Section 29.358;
 (4)  a description of the application process;
 (5)  a description of the applicant selection process;
 (6)  a description of the program expenditures process
 under Section 29.360; and
 (7)  a description of the responsibilities of program
 participants.
 (f)  A certified educational assistance organization shall
 produce and provide to each participating parent a
 comptroller-approved program participant handbook that includes:
 (1)  information regarding expenses allowed under the
 program under Section 29.359;
 (2)  if the handbook is provided electronically, a link
 to  a list of preapproved education service providers and vendors of
 educational products under Section 29.358;
 (3)  a description of the program expenditures process
 under Section 29.360; and
 (4)  a description of the responsibilities of program
 participants.
 (g)  Each certified educational assistance organization
 designated under Subsection (a) shall on enrollment and annually
 provide to each participating parent the information described by
 Subsections (e) and (f). The organization may provide the
 information electronically.
 (h)  The comptroller or a certified educational assistance
 organization designated under Subsection (a):
 (1)  may require a participating parent to submit
 annual notice regarding the parent's intent for the child to
 continue participating in the program for the next school year; and
 (2)  may not require a program participant in good
 standing to annually resubmit an application for continued
 participation in the program.
 Sec. 29.357.  PARTICIPATION IN PROGRAM. To receive funding
 under the program, a participating parent must agree to:
 (1)  spend money received through the program only for
 expenses allowed under Section 29.359;
 (2)  ensure the administration of assessment
 instruments to the participating child in accordance with Section
 29.371 and share or authorize administrators of assessment
 instruments to share with the child's certified educational
 assistance organization the results of those assessment
 instruments;
 (3)  refrain from selling an item purchased with
 program money while the child is participating in the program; and
 (4)  notify the applicable certified educational
 assistance organization not later than 30 days after the date on
 which the child:
 (A)  enrolls in a public school, including an
 open-enrollment charter school in a manner in which the child will
 be counted toward the school's average daily attendance for
 purposes of the allocation of funding under the foundation school
 program;
 (B)  graduates from high school; or
 (C)  is no longer eligible to enroll in a public
 school under Section 25.001.
 Sec. 29.358.  PREAPPROVED PROVIDERS AND VENDORS. (a) The
 comptroller shall by rule establish a process for the preapproval
 of education service providers and vendors of educational products
 for participation in the program. The comptroller shall allow for
 the submission of applications on a rolling basis.
 (b)  The comptroller shall approve an education service
 provider or vendor of educational products for participation in the
 program if the provider or vendor:
 (1)  has previously been approved by the agency to
 provide supplemental special education services under Subchapter
 A-1 and remains in good standing with the agency;
 (2)  for a private school, demonstrates accreditation
 by an organization recognized by:
 (A)  the Texas Private School Accreditation
 Commission; or
 (B)  the agency;
 (3)  for a public school, demonstrates:
 (A)  accreditation by the agency; and
 (B)  the ability to provide services or products
 to participating children in a manner in which the children are not
 counted toward the school's average daily attendance;
 (4)  for a private tutor, therapist, or teaching
 service, demonstrates that:
 (A)  the tutor or therapist or each employee of
 the teaching service who intends to provide educational services to
 a participating child:
 (i)  is an educator employed by or a retired
 educator formerly employed by a school accredited by the agency, an
 organization recognized by the agency, or an organization
 recognized by the Texas Private School Accreditation Commission;
 (ii)  holds a relevant license or
 accreditation issued by a state, regional, or national
 certification or accreditation organization; or
 (iii)  is employed in or retired from a
 teaching or tutoring capacity at a higher education provider;
 (B)  the tutor or therapist or each employee of
 the teaching service who intends to provide educational services to
 a participating child provided to the comptroller a national
 criminal history record information review completed by the tutor,
 therapist, or employee, as applicable, within a period established
 by comptroller rule; and
 (C)  the tutor or therapist or each employee of
 the teaching service who intends to provide educational services to
 a participating child is not:
 (i)  required to be discharged or refused to
 be hired by a school district under Section 22.085; or
 (ii)  included in the registry under Section
 22.092; or
 (5)  for a higher education provider, demonstrates
 nationally recognized postsecondary accreditation.
 (c)  The comptroller shall review the national criminal
 history record information or documentation for each private tutor,
 therapist, or teaching service employee who submits information or
 documentation under this section. The tutor, therapist, or service
 must provide the comptroller with any information requested by the
 comptroller to enable the comptroller to complete the review.
 (d)  An education service provider or vendor of educational
 products shall provide information requested by the comptroller to
 verify the provider's or vendor's eligibility for preapproval under
 Subsection (b). The comptroller may not approve a provider or
 vendor if the comptroller cannot verify the provider's or vendor's
 eligibility for preapproval.
 (e)  An education service provider or vendor of educational
 products must agree to:
 (1)  abide by the disbursement schedule under Section
 29.360(c) and all other requirements of this subchapter;
 (2)  accept money from the program only for
 education-related expenses approved under Section 29.359;
 (3)  notify the comptroller not later than the 30th day
 after the date that the provider or vendor no longer meets the
 requirements of this section; and
 (4)  return any money received in violation of this
 subchapter or other relevant law to the comptroller for deposit
 into the program fund.
 (f)  An education service provider or vendor of educational
 products that receives approval under this section may participate
 in the program until the earliest of the date on which the provider
 or vendor:
 (1)  no longer meets the requirements under this
 section; or
 (2)  violates this subchapter or other relevant law.
 (g)  This section may not be construed to allow a learning
 pod, as defined by Section 27.001, or a home school to qualify as an
 approved education service provider or vendor of educational
 products.
 Sec. 29.359.  APPROVED EDUCATION-RELATED EXPENSES. (a)
 Subject to Subsection (b), money received under the program may be
 used only for the following education-related expenses incurred by
 a participating child at a preapproved education service provider
 or vendor of educational products:
 (1)  tuition and fees for:
 (A)  a private school;
 (B)  a higher education provider;
 (C)  an online educational course or program; or
 (D)  a program that provides training for an
 industry-based credential;
 (2)  the purchase of textbooks or other instructional
 materials or uniforms required by a private school, higher
 education provider, or course in which the child is enrolled,
 including purchases made through a third-party vendor of
 educational products;
 (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)  costs related to academic assessments;
 (5)  fees for services provided by a private tutor or
 teaching service;
 (6)  fees for transportation provided by a
 fee-for-service transportation provider for the child to travel to
 and from a preapproved education service provider or vendor of
 educational products;
 (7)  fees for educational therapies or services
 provided by a practitioner or provider, only for fees that are not
 covered by any federal, state, or local government benefits such as
 Medicaid or the Children's Health Insurance Program (CHIP) or by
 any private insurance that the child is enrolled in at the time of
 receiving the therapies or services;
 (8)  costs of computer hardware and software and other
 technological devices prescribed by a physician to facilitate a
 child's education, not to exceed in any year 10 percent of the total
 amount paid to the participating child's account that year;
 (9)  costs of breakfast or lunch provided to a child
 during the school day by a private school; and
 (10)  before- and after-school academic child care.
 (b)  Money received under the program may not be used to pay
 any person who is related to the program participant within the
 third degree by consanguinity or affinity, as determined under
 Chapter 573, Government Code.
 (c)  A finding that a program participant used money
 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 approved education-related expense
 that is allowed under that subsection.
 Sec. 29.360.  PROGRAM EXPENDITURES. (a) The comptroller
 shall disburse from the program fund to each certified educational
 assistance organization the amount specified under Section
 29.361(a) for each participating child for which the organization
 is responsible.
 (b)  To initiate payment to an education service provider or
 vendor of educational products for an education-related expense
 approved under Section 29.359, the participating parent must submit
 a request in a form prescribed by comptroller rule to the applicable
 certified educational assistance organization.
 (c)  Subject to Subsection (d) and Sections 29.362(g) and
 29.364, on receiving a request under Subsection (b), a certified
 educational assistance organization shall verify that the request
 is for an expense approved under Section 29.359 and, not later than
 the 15th business day after the date the organization verifies the
 request, send payment to the education service provider or vendor
 of educational products.
 (d)  A disbursement under this section may not exceed the
 applicable participating child's account balance.
 (e)  A certified educational assistance organization shall
 provide the participating parent for which the organization is
 responsible with electronic access to:
 (1)  view the current balance of the participating
 child's account;
 (2)  initiate the payment process under Subsection (b);
 and
 (3)  view a summary of the past activity on the
 participating child's account, including payments from the account
 to education service providers and vendors of educational products.
 Sec. 29.361.  AMOUNT OF PAYMENT; FINANCING. (a) Regardless
 of the deadline by which the participating parent applies for
 enrollment in the program under Section 29.356(a) and except as
 provided by Subsections (a-1) and (a-3), a participating parent
 shall receive each school year that the parent's child participates
 in the program payments from the state to be held in trust for the
 benefit of the child from funds available under Section 29.353 to
 the child's account equal to 75 percent of the estimated statewide
 average amount of funding per student in average daily attendance
 for the applicable school year, as determined by the commissioner
 not later than January 15 preceding the applicable school year.  For
 purposes of determining the estimated statewide average amount of
 funding per student under this subsection, the commissioner shall
 include state and local funding under Chapters 46, 48, and 49 and
 the amount the state is required to contribute under Section
 825.404, Government Code.
 (a-1)  If a child enrolls in the program after the beginning
 of a school year, the comptroller shall prorate the amount the
 participating parent of the child receives under Subsection (a)
 based on the date the child enrolls in the program.
 (a-2)  A participating parent must submit all requests for
 payment from the account of the parent's child for expenses
 incurred during a fiscal year to the comptroller not less than 90
 days after the end of that fiscal year.
 (a-3)  Notwithstanding Subsection (a), a participating child
 who is a home-schooled student, as defined by Section 29.916(a)(1),
 may not receive payments to the child's account under Subsection
 (a) in an amount that exceeds $1,000 for a school year.
 (b)  Any money remaining in a participating child's account
 at the end of a fiscal year that is not obligated for expenses
 incurred during that fiscal year shall be returned to the
 comptroller for deposit to the program fund. The comptroller shall
 provide to a participating parent adequate notice of the return of
 money in the account under this subsection.
 (c)  A participating parent may make payments for the
 expenses of educational programs, services, and products not
 covered by money in the account of the parent's child.
 (d)  A payment under Subsection (a) may not be financed using
 federal money or money from the available school fund or
 instructional materials fund.
 (e)  Payments received under this subchapter do not
 constitute taxable income to a participating parent, unless
 otherwise provided by federal or another state's law.
 (f)  On dates consistent with satisfying the application
 deadlines established under Section 29.356(a), the agency shall
 calculate and report to the comptroller the amount specified under
 Subsection (a) for each participating child.
 Sec. 29.3615.  ENROLLMENT IN PUBLIC SCHOOL. Notwithstanding
 any other provision of this subchapter or other law, if a child
 ceases participation in the program due to the child's enrollment
 in a public school, including an open-enrollment charter school:
 (1)  the public school is entitled to receive an amount
 equal to the amount in the child's account returned to the
 comptroller under Section 29.362(f); and
 (2)  the child may not be considered in evaluating the
 performance of a public school under the public school
 accountability system as prescribed by Chapters 39 and 39A for the
 first school year after the child ceases participation in the
 program.
 Sec. 29.362.  ADMINISTRATION OF ACCOUNTS. (a)  On receipt of
 money distributed by the comptroller for purposes of making
 payments to accounts, a certified educational assistance
 organization shall hold the money in trust for the benefit of
 participating children and make quarterly payments to the account
 of each participating child for which the organization is
 responsible in equal amounts on or before the first day of July,
 October, January, and April.
 (b)  Each year, the comptroller may deduct from the total
 amount of money appropriated for purposes of this subchapter an
 amount, not to exceed three percent of that total amount, to cover
 the comptroller's cost of administering the program.
 (c)  Each quarter, each certified educational assistance
 organization shall submit to the comptroller a breakdown of the
 organization's actual costs of administering the program for the
 previous quarter and the comptroller shall disburse from money
 appropriated for the program to each certified educational
 assistance organization the amount necessary to cover the
 organization's actual costs of administering the program for that
 quarter. The total amount disbursed to all certified educational
 assistance organizations under this subsection for a state fiscal
 year may not exceed five percent of the amount appropriated for the
 purposes of the program for that fiscal year.
 (d)  On or before the first day of October and February or
 another date determined by comptroller rule, each certified
 educational assistance organization shall:
 (1)  verify with the agency that each participating
 child for which the organization is responsible is not enrolled in a
 public school, including an open-enrollment charter school, in a
 manner in which the child is counted toward the school's average
 daily attendance for purposes of the allocation of state funding
 under the foundation school program; and
 (2)  notify the comptroller if the organization
 determines that a participating child for which the organization is
 responsible is enrolled in a public school, including an
 open-enrollment charter school, in a manner in which the child is
 counted toward the school's average daily attendance for purposes
 of the allocation of state funding under the foundation school
 program.
 (e)  The comptroller by rule shall establish a process by
 which a participating parent may authorize the comptroller or the
 certified educational assistance organization to make a payment
 directly from the account of the parent's child to a preapproved
 education service provider or vendor of educational products for an
 expense allowed under Section 29.359.
 (f)  On the date on which a child who participated in the
 program is no longer eligible to participate in the program under
 Section 29.355 and payments for any education-related expenses
 allowed under Section 29.359 from the child's account have been
 completed, the child's account shall be closed and any remaining
 money returned to the comptroller for deposit in the program fund.
 (g)  Each quarter, any interest or other earnings
 attributable to money held by a certified educational assistance
 organization for purposes of the program shall be remitted to the
 comptroller for deposit in the program fund.
 Sec. 29.363.  AUDITING. (a) The comptroller shall contract
 with a private entity to audit accounts and program participant
 eligibility data not less than once per year to ensure compliance
 with applicable law and program requirements.  The audit must
 include a review of:
 (1)  each certified educational assistance
 organization's internal controls over program transactions; and
 (2)  compliance by:
 (A)  certified educational assistance
 organizations with Section 29.354 and other program requirements;
 (B)  program participants with Section 29.357 and
 other program requirements; and
 (C)  education service providers and vendors of
 educational products with Section 29.358 and other program
 requirements.
 (b)  In conducting an audit, the private entity may require a
 certified educational assistance organization, program
 participant, or education service provider or vendor of educational
 products to provide information and documentation regarding any
 transaction occurring under the program.
 (c)  The private entity shall report to the comptroller any
 violation of this subchapter or other relevant law and any
 transactions the entity determines to be unusual or suspicious
 found by the entity during an audit conducted under this section.
 The comptroller shall report the violation or transaction to:
 (1)  the applicable certified educational assistance
 organization;
 (2)  the education service provider or vendor of
 educational products, as applicable; and
 (3)  the participating parent of each participating
 child who is affected by the violation or transaction.
 Sec. 29.364.  SUSPENSION OF ACCOUNT. (a) The comptroller
 shall suspend the account of a program participant who fails to
 remain in good standing by complying with applicable law or a
 requirement of the program.
 (b)  On suspension of an account under Subsection (a), the
 comptroller shall notify the participating parent in writing that
 the account of the parent's child has been suspended and that no
 additional payments may be made from the account. The notification
 must specify the grounds for the suspension and state that the
 participating parent has 30 days to respond and take any corrective
 action required by the comptroller.
 (c)  On the expiration of the 30-day period under Subsection
 (b), the comptroller shall:
 (1)  order closure of the suspended account;
 (2)  order temporary reinstatement of the account,
 conditioned on the performance of a specified action by the program
 participant; or
 (3)  order full reinstatement of the account.
 (d)  The comptroller may recover money distributed under the
 program that was used for expenses not allowed under Section
 29.359, for a child who was not eligible to participate in the
 program at the time of the expenditure, or from an education service
 provider or vendor of educational products that was not approved at
 the time of the expenditure. The money may be recovered from the
 program participant or the education service provider or vendor of
 educational products that received the money if the participating
 child's account is suspended or closed under this section. Failure
 to reimburse the state on demand by the comptroller constitutes a
 debt to the state for purposes of Section 403.055, Government Code.
 The comptroller shall deposit money recovered under this subsection
 into the program fund.
 Sec. 29.365.  TUITION AND FEES; REFUND PROHIBITED. (a) An
 education service provider or vendor of educational products may
 not charge a participating child an amount greater than the
 standard amount charged for that service or product by the provider
 or vendor.
 (b)  An education service provider or vendor of educational
 products receiving money 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
 money paid or owed by the participant to the provider or vendor.
 Sec. 29.366.  REFERRAL TO DISTRICT ATTORNEY. If the
 comptroller obtains evidence of fraudulent use of an account or
 money distributed under the program or any other violation of law by
 a certified educational assistance organization, program
 participant, or education service provider or vendor of educational
 products, the comptroller shall notify the appropriate local county
 or district attorney with jurisdiction over, as applicable:
 (1)  the principal place of business of the
 organization or provider or vendor; or
 (2)  the residence of the program participant.
 Sec. 29.367.  SPECIAL EDUCATION NOTICE. (a) Each certified
 educational assistance organization designated under Section
 29.356(a) shall post on the organization's Internet website and
 provide to each parent who submits an application for the program a
 notice that:
 (1)  states that a private school is not subject to
 federal and state laws regarding the provision of educational
 services to a child with a disability in the same manner as a public
 school; and
 (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.); and
 (B)  rights provided under Subchapter A.
 (b)  A private school in which a participating child with a
 disability enrolls shall provide to the participating parent a copy
 of the notice required under Subsection (a).
 Sec. 29.368.  CHARACTER OF DISTRIBUTION. An education
 service provider or vendor of educational products that receives
 money distributed under the program is not a recipient of federal
 financial assistance and may not be considered to be an agent of
 state government on the basis of receiving that money.
 Sec. 29.369.  STUDENT RECORDS AND INFORMATION. (a) On
 request by the parent of a child participating or seeking to
 participate 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.
 (b)  As necessary to verify a child's eligibility for the
 program, the agency, a school district, or an open-enrollment
 charter school shall provide to the applicable certified
 educational assistance organization any information available to
 the agency, district, or school requested by the organization
 regarding a child who participates or seeks to participate in the
 program, including information regarding:
 (1)  the child's public school enrollment status; and
 (2)  whether the child:
 (A)  is a child with a disability; or
 (B)  can be counted toward a public school's
 average daily attendance for purposes of the allocation of funding
 under the foundation school program.
 (c)  A certified educational assistance organization may not
 retain information provided under Subsection (b) beyond the period
 necessary to determine a child's eligibility to participate in the
 program.
 (d)  A certified educational assistance organization or an
 education service provider or vendor of educational products that
 obtains information regarding a participating child:
 (1)  shall comply with state and federal law regarding
 the confidentiality of student educational information; and
 (2)  may not sell or otherwise distribute information
 regarding a child participating in the program.
 Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The comptroller
 and a certified educational assistance organization 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 establishing the program and contracting for the
 report required under Section 29.372.
 Sec. 29.371.  ADMINISTRATION OF STATE ASSESSMENT
 INSTRUMENTS. (a)  The agency shall ensure that each child
 participating in the program is annually administered each
 assessment instrument required to be administered to a public
 school student at the child's grade and course level under Section
 39.023(a) or (c), subject to any applicable exemptions or
 accommodations provided under Subchapter B, Chapter 39.
 (b)  For purposes of the annual report required under Section
 29.372, the agency shall provide to the comptroller the results of
 the assessment instruments administered under this section, in
 aggregate and disaggregated by race, ethnicity, socioeconomic
 status, and status as a child with a disability.  A child's results
 on an assessment instrument administered under this section are
 confidential, are not subject to disclosure under Chapter 552,
 Government Code, and may only be shared as necessary to develop the
 annual report required under Section 29.372 of this subchapter.  In
 providing the results of the assessment instruments, the agency
 shall ensure compliance with state and federal law regarding the
 confidentiality of student educational information, including the
 Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
 Section 1232g).
 (c)  The agency shall require a regional education service
 center to administer assessment instruments under this section.
 (d)  A school district may administer assessment instruments
 under this section.
 (e)  If authorized by the agency, a private school may, but
 is not required to, administer assessment instruments under this
 section in accordance with agency rule.
 Sec. 29.372.  ANNUAL REPORT. (a)  The comptroller shall
 require that the certified educational assistance organizations
 collaborate to compile program data and produce an annual
 longitudinal report regarding:
 (1)  the number of program applications received,
 accepted, and wait-listed, disaggregated by age;
 (2)  program participant satisfaction;
 (3)  the results of assessment instruments provided in
 accordance with Section 29.371;
 (4)  the effect of the program on public and private
 school capacity and availability;
 (5)  the amount of cost savings accruing to the state as
 a result of the program;
 (6)  in a report submitted in an even-numbered year
 only, an estimate of the total amount of funding required for the
 program for the next state fiscal biennium;
 (7)  the amount of gifts, grants, and donations
 received under Section 29.370; and
 (8)  based on surveys of former program participants or
 other sources available to the organizations, the number and
 percentage of participating children who, within one year after
 graduating from high school, are:
 (A)  college ready, as indicated by earning a
 minimum of 12 non-remedial semester credit hours or the equivalent
 or an associate degree from a postsecondary educational
 institution;
 (B)  career ready, as indicated by:
 (i)  earning a credential of value included
 in a library of credentials established under Section 2308A.007,
 Government Code; or
 (ii)  employment at or above the median wage
 in the child's region; or
 (C)  military ready, as indicated by achieving a
 passing score set by the applicable military branch on the Armed
 Services Vocational Aptitude Battery and enlisting in the armed
 forces of the United States or the Texas National Guard.
 (b)  In producing the report, the certified educational
 assistance organizations shall:
 (1)  use appropriate analytical and behavioral science
 methodologies to ensure public confidence in the report; and
 (2)  comply with the requirements regarding the
 confidentiality of student educational information under the
 Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
 Section 1232g).
 (c)  The report must cover a period of not less than five
 years and include, subject to Subsection (b)(2), the data analyzed
 and methodology used.
 (d)  The comptroller and the applicable certified
 educational assistance organizations shall post the report on the
 comptroller's and organization's respective Internet websites.
 Sec. 29.373.  RULES; PROCEDURES. The comptroller shall
 adopt rules and procedures as necessary to implement, administer,
 and enforce this subchapter.
 Sec. 29.374.  APPEAL; FINALITY OF DECISIONS. (a) A program
 participant may appeal to the comptroller an administrative
 decision made by a certified educational assistance organization
 under this subchapter, including a decision regarding eligibility,
 allowable expenses, or the participant's removal from the program.
 (b)  This subchapter may not be construed to confer a
 property right on a certified educational assistance organization,
 education service provider, vendor of educational products, or
 program participant.
 (c)  A decision of the comptroller made under this subchapter
 is final and not subject to appeal.
 Sec. 29.375.  TERM OF AUTHORIZATION. (a) The program is
 subject to appropriations from the legislature and continues in
 existence until September 1, 2027, unless reauthorized by the
 legislature.
 (b)  Notwithstanding Subsection (a), a program participant
 who is participating in the program on or before September 1, 2027,
 shall continue to receive payments from the state under Section
 29.361 until the date on which the child who participated in the
 program would no longer be eligible to participate in the program
 under Section 29.355(b).
 (c)  This subchapter expires September 1, 2027.
 SECTION 5.02.  Section 22.092(d), Education Code, is amended
 to read as follows:
 (d)  The agency shall provide equivalent access to the
 registry maintained under this section to:
 (1)  private schools;
 (2)  public schools; [and]
 (3)  nonprofit teacher organizations approved by the
 commissioner for the purpose of participating in the tutoring
 program established under Section 33.913; and
 (4)  the comptroller for the purpose of preapproving
 education service providers and vendors of educational products
 under Section 29.358 for participation in the program established
 under Subchapter J, Chapter 29.
 SECTION 5.03.  Section 411.109, Government Code, is amended
 by adding Subsection (b-1) and amending Subsection (c) to read as
 follows:
 (b-1)  The comptroller is entitled to obtain criminal
 history record information as provided by Subsection (c) about a
 person who is a private tutor, a therapist, or an employee of a
 teaching service or school 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 money distributed under that program.
 (c)  Subject to Section 411.087 and consistent with the
 public policy of this state, the comptroller is entitled to:
 (1)  obtain through the Federal Bureau of Investigation
 criminal history record information maintained or indexed by that
 bureau that pertains to a person described by Subsection (a), [or]
 (b), or (b-1); and
 (2)  obtain from the department or any other criminal
 justice agency in this state criminal history record information
 maintained by the department or that criminal justice agency that
 relates to a person described by Subsection (a), [or] (b), or (b-1).
 SECTION 5.04.  Subchapter J, Chapter 29, Education Code, as
 added by this article, applies beginning with the 2024-2025 school
 year.
 SECTION 5.05.  Not later than May 15, 2024, the comptroller
 of public accounts shall adopt rules as provided by Section 29.373,
 Education Code, as added by this article.
 SECTION 5.06.  (a) The constitutionality and other validity
 under the state or federal constitution of all or any part of
 Subchapter J, Chapter 29, Education Code, as added by this article,
 may be determined in an action for declaratory judgment under
 Chapter 37, Civil Practice and Remedies Code, in a district court in
 Travis County.
 (b)  An order, however characterized, of a trial court
 granting or denying a temporary or otherwise interlocutory
 injunction or a permanent injunction on the grounds of the
 constitutionality or unconstitutionality, or other validity or
 invalidity, under the state or federal constitution of all or any
 part of Subchapter J, Chapter 29, Education Code, as added by this
 article, may be reviewed only by direct appeal to the Texas Supreme
 Court filed not later than the 15th day after the date on which the
 order was entered. The Texas Supreme Court shall give precedence to
 appeals under this section over other matters.
 (c)  The direct appeal is an accelerated appeal.
 (d)  This section exercises the authority granted by Section
 3-b, Article V, Texas Constitution.
 (e)  The filing of a direct appeal under this section will
 automatically stay any temporary or otherwise interlocutory
 injunction or permanent injunction granted in accordance with this
 section pending final determination by the Texas Supreme Court,
 unless the supreme court makes specific findings that the applicant
 seeking such injunctive relief has pleaded and proved that:
 (1)  the applicant has a probable right to the relief it
 seeks on final hearing;
 (2)  the applicant will suffer a probable injury that
 is imminent and irreparable, and that the applicant has no other
 adequate legal remedy; and
 (3)  maintaining the injunction is in the public
 interest.
 (f)  An appeal under this section, including an
 interlocutory, accelerated, or direct appeal, is governed, as
 applicable, by the Texas Rules of Appellate Procedure, including
 Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
 40.1(b), and 49.4.
 (g)  This section does not authorize an award of attorney's
 fees against this state, and Section 37.009, Civil Practice and
 Remedies Code, does not apply to an action filed under this section.
 SECTION 5.07.  It is the intent of the legislature that every
 provision, section, subsection, sentence, clause, phrase, or word
 in this article, and every application of the provisions in this
 article to each person or entity, is severable from each other. If
 any application of any provision in this article to any person,
 group of persons, or circumstances is found by a court to be invalid
 for any reason, the remaining applications of that provision to all
 other persons and circumstances shall be severed and may not be
 affected.
 SECTION 5.08.  This article takes effect immediately if this
 Act receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, this article takes effect on the 91st day after the last day
 of the legislative session.
 ARTICLE 6. CHANGES RELATED TO PUBLIC SCHOOLS GENERALLY
 SECTION 6.01.  Subchapter Z, Chapter 25, Education Code, is
 amended by adding Section 25.906 to read as follows:
 Sec. 25.906.  PROTECTIONS FOR CERTAIN MILITARY DEPENDENTS.
 (a) In this section:
 (1)  "Compact" means the Interstate Compact on
 Educational Opportunity for Military Children executed under
 Section 162.002.
 (2)  "Uniformed services" means:
 (A)  the United States Army, Navy, Air Force,
 Space Force, Marine Corps, or Coast Guard;
 (B)  the Commissioned Officer Corps of the
 National Oceanic and Atmospheric Administration; or
 (C)  the Commissioned Corps of the United States
 Public Health Service.
 (b)  The provisions of Articles IV, V, VI, and VII of the
 compact apply to the following children as if those children were
 children described by Article III of the compact:
 (1)  a child of a veteran of the uniformed services who
 was discharged or released through retirement, for a period of four
 years after the date of the veteran's retirement, if the veteran
 returns to the veteran's home of record on military orders; and
 (2)  a child of a member of the uniformed services who
 dies on active duty or as a result of injuries sustained on active
 duty, for a period of four years after the member's death.
 (c)  Each school district and open-enrollment charter school
 that maintains an Internet website shall post on the district's or
 school's Internet website an easily accessible link to information
 regarding the compact and the additional protections provided by
 this section.
 SECTION 6.02.  Section 26.002, Education Code, is amended to
 read as follows:
 Sec. 26.002.  DEFINITIONS [DEFINITION].  In this chapter:
 (1)  "Benchmark assessment" includes a benchmark
 assessment instrument as defined by Section 39.0263(a) and a
 district-required assessment designed to evaluate students against
 a set of national or state comparison points.
 (2)  "Parent" [, "parent"] includes a person standing
 in parental relation.  The term does not include a person as to whom
 the parent-child relationship has been terminated or a person not
 entitled to possession of or access to a child under a court order.
 Except as provided by federal law, all rights of a parent under
 Title 2 of this code and all educational rights under Section
 151.001(a)(10), Family Code, shall be exercised by a student who is
 18 years of age or older or whose disabilities of minority have been
 removed for general purposes under Chapter 31, Family Code, unless
 the student has been determined to be incompetent or the student's
 rights have been otherwise restricted by a court order.
 (3)  "Test" includes a benchmark assessment.
 SECTION 6.03.  Chapter 26, Education Code, is amended by
 adding Section 26.0062 to read as follows:
 Sec. 26.0062.  NOTICE REGARDING BENCHMARK ASSESSMENT
 RESULTS. A school district shall report in writing to each
 student's parent the results of a benchmark assessment administered
 to the student not later than the 30th calendar day after the date
 on which the results of the assessment are available.  The results
 may be made available to the parent through a parent portal.
 SECTION 6.04.  Section 28.006, Education Code, is amended by
 amending Subsections (a), (b), (c), (c-1), (c-2), (c-3), and (j)
 and adding Subsections (a-1), (b-2), (b-3), (b-4), (d-1), (g-3),
 (g-4), (g-5), (g-6), (n), and (o) to read as follows:
 (a)  The commissioner shall adopt procedures [develop
 recommendations] for school districts and open-enrollment charter
 schools for:
 (1)  administering reading instruments to:
 (A)  ensure the results of the reading instruments
 are valid, reliable, and equated;
 (B)  diagnose student reading development and
 comprehension; and
 (C)  identify students at risk for dyslexia or
 other reading difficulties;
 (2)  training educators in administering the reading
 instruments; and
 (3)  applying the results of the reading instruments to
 the instructional program and intervention practices.
 (a-1)  A school district or open-enrollment charter school
 may not administer a reading instrument to a student more than three
 times during a school year.
 (b)  The commissioner shall adopt a comprehensive list of
 reading instruments that a school district or open-enrollment
 charter school shall select from for [may] use in diagnosing [to
 diagnose student] reading development and comprehension for
 students who are enrolled in kindergarten through third grade. A
 reading instrument included on the commissioner's list must include
 the foundational literacy components of phonemic and phonological
 awareness, phonics, vocabulary, fluency, and comprehension. For
 use in diagnosing the reading development and comprehension of
 kindergarten students, the commissioner shall adopt [a]
 multidimensional assessment tools [tool] that include [includes a]
 reading instruments that test [instrument and tests] at least three
 developmental skills, including the foundational literacy
 components. A multidimensional assessment tool administered as
 provided by this subsection is considered to be a reading
 instrument for purposes of this section.  A school district or
 open-enrollment charter school [district-level committee
 established under Subchapter F, Chapter 11,] may use other [adopt a
 list of] reading instruments, subject to Subsection (b-4), [for use
 in the district in a grade level other than kindergarten] in
 addition to the reading instruments included on the commissioner's
 list.  Each reading instrument included on the list adopted by the
 commissioner or administered by a school district or
 open-enrollment charter school [or a district-level committee]
 must:
 (1)  be based on scientific research concerning reading
 skills development and reading comprehension;
 (2)  [.  A list of reading instruments adopted under
 this subsection must] provide for diagnosing the reading
 development and comprehension of students participating in a
 program under Subchapter B, Chapter 29;
 (3)  provide progress monitoring capabilities;
 (4)  provide a diagnostic tool to assist teachers in
 developing research-based targeted instruction;
 (5)  allow screening of students three times each
 school year;
 (6)  assess only foundational literacy components not
 already mastered by the student; and
 (7)  assess whether a student needs reading instruction
 intervention.
 (b-2)  The commissioner shall include on the commissioner's
 list any reading instrument that is:
 (1)  based on scientific research concerning reading
 skills development and reading comprehension; and
 (2)  submitted for inclusion on the list under
 Subsection (b-4).
 (b-3)  The commissioner shall update the list of reading
 instruments at least once every four years, including
 multidimensional assessment tools authorized under this section.
 (b-4)  A school district or open-enrollment charter school
 that uses one or more reading instruments not included on the
 commissioner's list in accordance with Subsection (b) must submit
 the instrument to the commissioner to verify the instrument
 satisfies the requirements of this section. The commissioner shall
 place on the commissioner's list a reading instrument that
 satisfies the requirements of this section.
 (c)  Each school district and open-enrollment charter school
 shall administer, at the first and second grade levels, a reading
 instrument that is based on scientific research concerning reading
 skills development and reading comprehension included on the list
 adopted by the commissioner [or by the district-level
 committee].  The district or school shall administer the reading
 instrument in accordance with the commissioner's recommendations
 under Subsection (a)(1).
 (c-1)  Each school district and open-enrollment charter
 school shall administer at the beginning of the seventh grade a
 reading instrument included on the list adopted by the commissioner
 to each student whose performance on the assessment instrument in
 reading administered under Section 39.023(a) to the student in
 grade six did not demonstrate reading proficiency, as determined by
 the commissioner.  The district or school shall administer the
 reading instrument in accordance with the commissioner's policies
 adopted [recommendations] under Subsection (a)(1).
 (c-2)  Each school district and open-enrollment charter
 school shall administer at the kindergarten level a reading
 instrument included on the list adopted by the commissioner [under
 Subsection (b) or approved by the commissioner under Subsection
 (b-1)].  The district or school shall administer the reading
 instrument in accordance with the commissioner's policies adopted
 [recommendations] under Subsection (a)(1).
 (c-3)  The commissioner by rule shall determine the
 performance on a [the] reading instrument adopted under Subsection
 (b) that indicates kindergarten readiness.
 (d-1)  The commissioner shall prominently display on the
 agency's Internet website information regarding the commissioner's
 list of reading instruments maintained under this section and the
 process for applying for inclusion on the list, as provided by
 agency rule adopted under Subsection (n).
 (g-3)  A school district or open-enrollment charter school
 shall provide reading intervention to each student in kindergarten
 through grade three who is determined to need reading intervention
 using an assessment administered in accordance with Subsection (b).
 The school district shall continue to offer a student reading
 intervention until the student achieves satisfactory performance
 on a reading instrument.  A reading intervention program offered
 under this subsection must:
 (1)  include targeted instruction to improve the
 student's reading skills in the relevant areas identified through
 the assessment instrument;
 (2)  monitor the progress of the student's reading
 skills throughout the school year;
 (3)  be implemented during regular school hours and in
 addition to core instruction;
 (4)  use high-quality instructional materials,
 curricula, and curricular tools that are research based and
 effective for early childhood literacy intervention; and
 (5)  be provided by a teacher who has attended a
 literacy achievement academy provided under Section 21.4552.
 (g-4)  In providing reading intervention under Subsection
 (g-3), a school district or open-enrollment charter school may not
 remove a student, except under circumstances for which a student
 enrolled in the same grade level who is not receiving reading
 intervention would be removed, from:
 (1)  instruction in the foundation curriculum and
 enrichment curriculum adopted under Section 28.002 for the grade
 level in which the student is enrolled; or
 (2)  recess or other physical activity that is
 available to other students enrolled in the same grade level.
 (g-5)  In addition to the report required under Subsection
 (d)(2), a school district or open-enrollment charter school shall
 notify the parent or guardian of each student in kindergarten
 through grade three who is determined to need reading intervention.
 The notification must:
 (1)  be distributed not later than the 30th day after
 the date the result of the reading instrument indicating that the
 student needs intervention is available;
 (2)  describe the current reading services the district
 or school provides to the student;
 (3)  describe the reading interventions that will be
 provided to the student to ensure the student will meet or exceed
 grade-level reading standards; and
 (4)  include high-quality resources for the parent or
 guardian of the student to use at home to help the student succeed
 at reading.
 (g-6)  From funds appropriated for teacher literacy
 achievement academies developed under Section 21.4552, the
 commissioner may, in collaboration with regional education service
 centers, provide assistance to school districts and
 open-enrollment charter schools in complying with the requirements
 of Section 28.0062. The commissioner shall prioritize providing
 assistance under this subsection in school districts with the
 highest rate of students performing below satisfactory levels on
 reading instruments administered under Subsection (b).
 (j)  [No more than 15 percent of the funds certified by the
 commissioner under Subsection (i) may be spent on indirect costs.]
 The commissioner shall evaluate the programs that fail to meet the
 standard of performance under Section 39.301(c)(5) and may
 implement interventions or sanctions under Chapter 39A.  [The
 commissioner may audit the expenditures of funds appropriated for
 purposes of this section.  The use of the funds appropriated for
 purposes of this section shall be verified as part of the district
 audit under Section 44.008.]
 (n)  The agency by rule shall provide a process under which a
 school district or open-enrollment charter school may submit an
 application for inclusion of a reading instrument on the
 commissioner's list of reading instruments maintained under this
 section.
 (o)  The agency may not use data collected from a reading
 instrument administered under this section in evaluating the
 performance of a school district or campus under Section 39.054.
 SECTION 6.05.  Subchapter A, Chapter 28, Education Code, is
 amended by adding Section 28.0063 to read as follows:
 Sec. 28.0063.  SUPPLEMENTAL READING INSTRUCTION FOR CERTAIN
 STUDENTS. (a) A school district or open-enrollment charter school
 shall make available supplemental instruction described by Section
 28.0211(a-4) to address a student's reading deficiency if the
 student's results on both of the reading assessments administered
 under Section 28.006 in two consecutive school years indicate the
 student needs reading intervention.
 (b)  A parent or guardian of a student described by
 Subsection (a) may select a tutor from a list of high-quality tutors
 approved by the agency or by the school district or open-enrollment
 charter school the student attends to provide the supplemental
 instruction required under Subsection (a).  The district or school
 shall contract directly with the tutor selected, who may be a
 classroom teacher employed at the district or school. A classroom
 teacher selected as a student's tutor is entitled to supplemental
 pay from the district or school.  The district or school may not
 provide money under this subsection directly to a parent or
 guardian of a student.
 (c)  A school district or open-enrollment charter school
 shall submit to the agency the district's or school's list of
 high-quality tutors and publish the list on the district's or
 school's Internet website.
 (d)  A school district or open-enrollment charter school
 that provides a tutor to a student under this section shall continue
 to provide the student any other reading support required of the
 district or school by federal or state law.
 SECTION 6.06.  Section 28.009, Education Code, is amended by
 amending Subsection (a) and adding Subsection (a-6) to read as
 follows:
 (a)  Each school district shall implement a program under
 which students may earn the equivalent of at least 12 semester
 credit hours of college credit in high school.  On request, a public
 institution of higher education in this state shall assist a school
 district in developing and implementing the program.  The college
 credit may be earned through:
 (1)  international baccalaureate, advanced placement,
 or dual credit courses, including courses provided through OnRamps;
 (2)  articulated postsecondary courses provided for
 local credit or articulated postsecondary advanced technical
 credit courses provided for state credit; or
 (3)  any combination of the courses described by
 Subdivisions (1) and (2).
 (a-6)  Each school district shall report through the Public
 Education Information Management System (PEIMS) the number of
 district students who, during that school year, were enrolled in an
 OnRamps course and provide the name of the OnRamps courses in which
 the students were enrolled.  The commissioner shall establish a
 unique identifier in PEIMS for each OnRamps course offered.
 SECTION 6.07.  Subchapter E, Chapter 29, Education Code, is
 amended by adding Section 29.1537 to read as follows:
 Sec. 29.1537.  PREKINDERGARTEN COMMUNITY-BASED CHILD-CARE
 PARTNERSHIP GRANT PROGRAM. (a) The commissioner shall establish
 and administer a grant program to support school districts and
 open-enrollment charter schools in increasing partnerships with
 community-based child-care providers to provide prekindergarten
 classes under Section 29.153.
 (b)  A school district or open-enrollment charter school may
 apply for a grant under the grant program in partnership with a
 community-based child-care provider described by Section
 29.153(g).
 (c)  A school district or open-enrollment charter school
 shall use money received under the grant program to fund the
 enrollment of eligible children in prekindergarten classes
 provided under Section 29.153 through a partnership between the
 district or school and a community-based child-care provider
 described by Section 29.153(g).  A child is eligible for enrollment
 in a prekindergarten class described by this subsection using money
 received under the grant program if the child:
 (1)  is at least three years of age; and
 (2)  receives subsidized child-care services provided
 through the child-care services program administered by the Texas
 Workforce Commission.
 (d)  The commissioner may provide grants under the grant
 program for the enrollment in each school year of not more than
 3,500 children in a prekindergarten class described by Subsection
 (c).
 (e)  The agency shall annually report to the legislature
 regarding the number of children described by Subsection (c)
 enrolled in a prekindergarten class.
 SECTION 6.08.  Section 29.1543, Education Code, is amended
 to read as follows:
 Sec. 29.1543.  EARLY EDUCATION REPORTS.  The agency shall
 produce and make available to the public on the agency's Internet
 website annual district and campus-level reports containing
 information from the previous school year on early education in
 school districts and open-enrollment charter schools. A report
 under this section must contain:
 (1)  the information required by Section 29.1532(c) to
 be reported through the Public Education Information Management
 System (PEIMS);
 (2)  a description of any [the] diagnostic reading
 instruments administered as provided by Section 28.006 [in
 accordance with Section 28.006(c) or (c-2)];
 (3)  the number of students who were administered a
 diagnostic reading instrument administered as provided by Section
 28.006 [in accordance with Section 28.006(c) or (c-2)];
 (4)  the number of students whose scores from a
 diagnostic reading instrument administered as provided by Section
 28.006 [in accordance with Section 28.006(c) or (c-2)] indicate
 reading proficiency;
 (5)  the number of kindergarten students who were
 enrolled in a prekindergarten program in the previous school year
 in the same district or school as the district or school in which
 the student attends kindergarten;
 (6)  the number and percentage of students who perform
 satisfactorily on the third grade reading or mathematics assessment
 instrument administered under Section 39.023, disaggregated by
 whether the student was eligible for free prekindergarten under
 Section 29.153;
 (7)  the number of students described by Subdivision
 (6) who attended kindergarten in the district, disaggregated by:
 (A)  whether the student met the kindergarten
 readiness standard on a [the] reading instrument adopted under
 Section 28.006;
 (B)  whether the student attended prekindergarten
 in the district; and
 (C)  the type of prekindergarten the student
 attended, if applicable; and
 (8)  the information described by Subdivisions (6) and
 (7) disaggregated by whether the student is educationally
 disadvantaged.
 SECTION 6.09.  Subchapter Z, Chapter 29, Education Code, is
 amended by adding Section 29.9016 to read as follows:
 Sec. 29.9016.  CAREER AND MILITARY TECHNICAL GRANT PILOT
 PROGRAM. (a)  The agency shall establish a pilot program to award
 grants to school districts to implement or maintain a program under
 which the district:
 (1)  establishes a junior reserve officer training
 corps program under 10 U.S.C. Section 2031 for students in high
 school;
 (2)  annually administers the Armed Services
 Vocational Aptitude Battery test to each student in grades 9
 through 12; and
 (3)  provides career counseling at least once each year
 to each student administered the test under Subdivision (2) based
 on the results of the test.
 (b)  The amount of a grant awarded under the pilot program is
 $50,000.
 (c)  The total amount of grants awarded under the pilot
 program for a school year may not exceed $2 million.
 (d)  Not later than December 1, 2026, the agency shall submit
 to the legislature a report on the results of the pilot program.
 The report must include the agency's recommendation on whether the
 pilot program should be continued, expanded, or terminated.
 (e)  The commissioner may adopt rules necessary to implement
 the pilot program.
 (f)  This section expires September 1, 2027.
 SECTION 6.10.  Chapter 791, Government Code, is amended by
 adding Subchapter D to read as follows:
 SUBCHAPTER D. INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION
 AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE
 Sec. 791.051.  DEFINITIONS. In this subchapter:
 (1)  "Cooperative" means a cooperative established
 under this subchapter by an interlocal contract for group health
 coverage.
 (2)  "Local education agency" means:
 (A)  a school district; or
 (B)  an open-enrollment charter school as defined
 by Section 5.001, Education Code.
 (3)  "Participating local education agency" means,
 with respect to a cooperative, a local education agency that
 participates in the cooperative.
 Sec. 791.052.  COMPLIANCE WITH SUBCHAPTER REQUIRED. A local
 education agency shall comply with this subchapter when procuring
 and administering employee group health coverage with another local
 education agency.
 Sec. 791.053.  INTERLOCAL CONTRACT FOR GROUP HEALTH
 INSURANCE COVERAGE. (a) The governing body of a local education
 agency may by resolution enter into an interlocal contract and
 cooperate with one or more other local education agencies to
 establish a cooperative for the purposes of procuring group health
 insurance coverage under this subchapter.
 (b)  The governing body of a local education agency may renew
 an interlocal contract entered into under Subsection (a).
 (c)  This subchapter does not affect the ability of local
 education agencies to provide group health coverage through a risk
 pool established in accordance with Chapter 172, Local Government
 Code.
 Sec. 791.054.  COOPERATIVE. (a) A cooperative is a legal
 entity that may procure employee group health insurance coverage
 for each participating local education agency.
 (b)  Participating local education agencies may contract for
 the supervision and administration of the cooperative in accordance
 with Section 791.013.
 (c)  Except as provided by this subsection, a cooperative is
 governed by a board of directors composed of the chief executive
 officers of each participating local education agency or the
 officers' designees. If the cooperative is composed of more than
 seven local education agencies, the cooperative shall appoint at
 least seven directors to serve on the cooperative's board of
 directors.
 Sec. 791.055.  PROCUREMENT. (a) A cooperative must procure
 a contract for employee group health coverage under this subchapter
 through a request for proposals to potential vendors advertised in
 a manner consistent with Section 44.031(g), Education Code, in at
 least one county in which a participating local education agency's
 central office is located.
 (b)  The board of directors of a cooperative shall select the
 vendor that provides the best value to participating local
 education agencies considering the factors described by Section
 44.031(b), Education Code.
 (c)  A cooperative that enters into a contract in accordance
 with this section satisfies a competitive bidding requirement
 applicable to the procurement of group health coverage under other
 law.
 Sec. 791.056.  OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A
 cooperative shall offer one or more group health insurance plans
 procured under Section 791.055 to employees of participating local
 education agencies and dependents of those employees.
 (b)  The board of directors of a cooperative may determine a
 participating local education agency's payment of all or part of
 the premiums for employees or dependents for a plan offered under
 Subsection (a).
 (c)  A participating local education agency's payment:
 (1)  is subject to the requirements described by
 Section 1581.052, Insurance Code; and
 (2)  shall include the contributions by the state
 described by Subchapter F, Chapter 1579, Insurance Code.
 SECTION 6.11.  Section 28.006(b-1), Education Code, is
 repealed.
 SECTION 6.12.  This article applies beginning with the
 2024-2025 school year.
 SECTION 6.13.  This article takes effect on the 91st day
 after the last day of the legislative session.
 ARTICLE 7.  VIRTUAL EDUCATION
 SECTION 7.01.  Section 1.001(b), Education Code, is amended
 to read as follows:
 (b)  Except as provided by Chapter 18, Chapter 19, Subchapter
 A of Chapter 29, or Subchapter E of Chapter 30, [or Chapter 30A,]
 this code does not apply to students, facilities, or programs under
 the jurisdiction of the Department of Aging and Disability
 Services, the Department of State Health Services, the Health and
 Human Services Commission, the Texas Juvenile Justice Department,
 the Texas Department of Criminal Justice, a Job Corps program
 operated by or under contract with the United States Department of
 Labor, or any juvenile probation agency.
 SECTION 7.02.  Section 7.0561(f), Education Code, is amended
 to read as follows:
 (f)  In consultation with interested school districts,
 open-enrollment charter schools, and other appropriate interested
 persons, the commissioner shall adopt rules applicable to the
 consortium, according to the following principles for a next
 generation of higher performing public schools:
 (1)  engagement of students in digital learning,
 including engagement through the use of electronic textbooks and
 instructional materials adopted under Subchapters B and B-1,
 Chapter 31, and virtual or hybrid courses offered by school
 districts and open-enrollment charter schools under Chapter 30B
 [through the state virtual school network under Subchapter 30A];
 (2)  emphasis on learning standards that focus on
 high-priority standards identified in coordination with districts
 and charter schools participating in the consortium;
 (3)  use of multiple assessments of learning capable of
 being used to inform students, parents, districts, and charter
 schools on an ongoing basis concerning the extent to which learning
 is occurring and the actions consortium participants are taking to
 improve learning; and
 (4)  reliance on local control that enables communities
 and parents to be involved in the important decisions regarding the
 education of their children.
 SECTION 7.03.  Section 25.007(b), Education Code, is amended
 to read as follows:
 (b)  In recognition of the challenges faced by students who
 are homeless or in substitute care, the agency shall assist the
 transition of students who are homeless or in substitute care from
 one school to another by:
 (1)  ensuring that school records for a student who is
 homeless or in substitute care are transferred to the student's new
 school not later than the 10th working day after the date the
 student begins enrollment at the school;
 (2)  developing systems to ease transition of a student
 who is homeless or in substitute care during the first two weeks of
 enrollment at a new school;
 (3)  developing procedures for awarding credit,
 including partial credit if appropriate, for course work, including
 electives, completed by a student who is homeless or in substitute
 care while enrolled at another school;
 (4)  developing procedures to ensure that a new school
 relies on decisions made by the previous school regarding placement
 in courses or educational programs of a student who is homeless or
 in substitute care and places the student in comparable courses or
 educational programs at the new school, if those courses or
 programs are available;
 (5)  promoting practices that facilitate access by a
 student who is homeless or in substitute care to extracurricular
 programs, summer programs, credit transfer services, virtual or
 hybrid [electronic] courses provided under Chapter 30B [30A], and
 after-school tutoring programs at nominal or no cost;
 (6)  establishing procedures to lessen the adverse
 impact of the movement of a student who is homeless or in substitute
 care to a new school;
 (7)  entering into a memorandum of understanding with
 the Department of Family and Protective Services regarding the
 exchange of information as appropriate to facilitate the transition
 of students in substitute care from one school to another;
 (8)  encouraging school districts and open-enrollment
 charter schools to provide services for a student who is homeless or
 in substitute care in transition when applying for admission to
 postsecondary study and when seeking sources of funding for
 postsecondary study;
 (9)  requiring school districts, campuses, and
 open-enrollment charter schools to accept a referral for special
 education services made for a student who is homeless or in
 substitute care by a school previously attended by the student, and
 to provide comparable services to the student during the referral
 process or until the new school develops an individualized
 education program for the student;
 (10)  requiring school districts, campuses, and
 open-enrollment charter schools to provide notice to the child's
 educational decision-maker and caseworker regarding events that
 may significantly impact the education of a child, including:
 (A)  requests or referrals for an evaluation under
 Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794), or
 special education under Section 29.003;
 (B)  admission, review, and dismissal committee
 meetings;
 (C)  manifestation determination reviews required
 by Section 37.004(b);
 (D)  any disciplinary actions under Chapter 37 for
 which parental notice is required;
 (E)  citations issued for Class C misdemeanor
 offenses on school property or at school-sponsored activities;
 (F)  reports of restraint and seclusion required
 by Section 37.0021;
 (G)  use of corporal punishment as provided by
 Section 37.0011; and
 (H)  appointment of a surrogate parent for the
 child under Section 29.0151;
 (11)  developing procedures for allowing a student who
 is homeless or in substitute care who was previously enrolled in a
 course required for graduation the opportunity, to the extent
 practicable, to complete the course, at no cost to the student,
 before the beginning of the next school year;
 (12)  ensuring that a student who is homeless or in
 substitute care who is not likely to receive a high school diploma
 before the fifth school year following the student's enrollment in
 grade nine, as determined by the district, has the student's course
 credit accrual and personal graduation plan reviewed;
 (13)  ensuring that a student in substitute care who is
 in grade 11 or 12 be provided information regarding tuition and fee
 exemptions under Section 54.366 for dual-credit or other courses
 provided by a public institution of higher education for which a
 high school student may earn joint high school and college credit;
 (14)  designating at least one agency employee to act
 as a liaison officer regarding educational issues related to
 students in the conservatorship of the Department of Family and
 Protective Services; and
 (15)  providing other assistance as identified by the
 agency.
 SECTION 7.04.  The heading to Section 26.0031, Education
 Code, is amended to read as follows:
 Sec. 26.0031.  RIGHTS CONCERNING [STATE] VIRTUAL AND HYBRID
 COURSES [SCHOOL NETWORK].
 SECTION 7.05.  Section 26.0031, Education Code, is amended
 by amending Subsections (a), (b), (c), (c-1), (d), and (e) and
 adding Subsection (b-1) to read as follows:
 (a)  At the time and in the manner that a school district or
 open-enrollment charter school informs students and parents about
 courses that are offered in the district's or school's traditional
 classroom setting, the district or school shall notify parents and
 students of the option to enroll in a virtual or hybrid [an
 electronic] course offered by the district or school in which the
 student is enrolled or by another district or school [through the
 state virtual school network] under Chapter 30B [30A].
 (b)  Except as provided by Subsection (c), a school district
 or open-enrollment charter school in which a student is enrolled as
 a full-time student may not deny the request of a parent of a
 student to enroll the student in a virtual or hybrid [an electronic]
 course offered by the district or school in which the student is
 enrolled or by another district or school [through the state
 virtual school network] under Chapter 30B [30A].
 (b-1)  A school district or open-enrollment charter school
 may not actively discourage a student, including by threat or
 intimidation, from enrolling in a virtual or hybrid course.
 (c)  A school district or open-enrollment charter school may
 deny a request to enroll a student in a virtual or hybrid [an
 electronic] course if:
 (1)  a student attempts to enroll in a course load that
 is inconsistent with the student's high school graduation plan or
 requirements for college admission or earning an industry
 certification;
 (2)  the student requests permission to enroll in a
 virtual or hybrid [an electronic] course at a time that is not
 consistent with the enrollment period established by the school
 district or open-enrollment charter school providing the course; or
 (3)  the district or school determines that the cost of
 the course is too high [offers a substantially similar course].
 (c-1)  A school district or open-enrollment charter school
 may decline to pay the cost for a student of more than three
 yearlong virtual [electronic] courses, or the equivalent, during
 any school year.  This subsection does not:
 (1)  limit the ability of the student to enroll in
 additional virtual [electronic] courses at the student's cost; or
 (2)  apply to a student enrolled in a full-time virtual
 [online] program [that was operating on January 1, 2013].
 (d)  Notwithstanding Subsection (c)(2), a school district or
 open-enrollment charter school that provides a virtual or hybrid
 [an electronic] course [through the state virtual school network]
 under Chapter 30B [30A] shall make all reasonable efforts to
 accommodate the enrollment of a student in the course under special
 circumstances.
 (e)  A school district or open-enrollment charter school
 that denies a request to enroll a student in a virtual or hybrid
 course under Subsection (c) must provide a written explanation of
 the denial to the student and the student's parent. The written
 explanation must provide notice of the student's ability to appeal
 the decision and an explanation of the appeal process, including
 the process of pursuing a final appeal heard by the board of
 trustees of the district or the governing board of the school. A
 determination made by the board of trustees of the school district
 or the governing board of the open-enrollment charter school [A
 parent may appeal to the commissioner a school district's or
 open-enrollment charter school's decision to deny a request to
 enroll a student in an electronic course offered through the state
 virtual school network. The commissioner's decision] under this
 subsection is final and may not be appealed.
 SECTION 7.06.  Subtitle F, Title 2, Education Code, is
 amended by adding Chapter 30B to read as follows:
 CHAPTER 30B. VIRTUAL AND HYBRID CAMPUSES, PROGRAMS, AND COURSES
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 30B.001.  DEFINITIONS. In this chapter:
 (1)  "Full-time hybrid campus" means a school district
 or open-enrollment charter school campus at which at least 50
 percent of the enrolled students are enrolled in a full-time hybrid
 program authorized under Subchapter C.
 (2)  "Full-time hybrid program" means a full-time
 educational program offered by a school district or open-enrollment
 charter school campus in which:
 (A)  a student is in attendance in person for less
 than 90 percent of the minutes of instruction provided; and
 (B)  the instruction and content may be delivered
 synchronously or asynchronously over the Internet, in person, or
 through other means.
 (3)  "Full-time virtual campus" means a school district
 or open-enrollment charter school campus at which at least 50
 percent of the enrolled students are enrolled in a full-time
 virtual program authorized under Subchapter C.
 (4)  "Full-time virtual program" means a full-time
 educational program offered by a school district or open-enrollment
 charter school campus in which:
 (A)  a student is in attendance in person
 minimally or not at all; and
 (B)  the instruction and content are delivered
 synchronously or asynchronously primarily over the Internet.
 (5)  "Hybrid course" means a course in which:
 (A)  a student is in attendance in person for less
 than 90 percent of the minutes of instruction provided; and
 (B)  the instruction and content may be delivered
 synchronously or asynchronously over the Internet, in person, or
 through other means.
 (6)  "Parent" means a student's parent or a person
 standing in parental relation to a student.
 (7)  "Virtual course" means a course in which
 instruction and content are delivered synchronously or
 asynchronously primarily over the Internet.
 (8)  "Whole program virtual instruction provider"
 means a private or third-party service that provides oversight and
 management of the virtual instruction services or otherwise
 provides a preponderance of those services for a full-time virtual
 or full-time hybrid campus or program.
 Sec. 30B.002.  RULES. (a) The commissioner shall adopt
 rules as necessary to administer this chapter.
 (b)  To the extent practicable, the commissioner shall
 consult school districts, open-enrollment charter schools, and
 parents in adopting rules under this section.
 (c)  The agency may form an advisory committee to comply with
 the provisions of this section. Chapter 2110, Government Code,
 does not apply to an advisory committee formed under this section.
 Sec. 30B.003.  GRANTS AND FEDERAL FUNDS. (a) For purposes
 of this chapter, the commissioner may seek and accept a grant from a
 public or private person.
 (b)  For purposes of this chapter, the commissioner may
 accept federal funds and shall use those funds in compliance with
 applicable federal law, regulations, and guidelines.
 Sec. 30B.004.  PROVISION OF COMPUTER EQUIPMENT OR INTERNET
 SERVICE. This chapter does not:
 (1)  require a school district, an open-enrollment
 charter school, a virtual course provider, or the state to provide a
 student with home computer equipment or Internet access for a
 virtual course provided by a school district or open-enrollment
 charter school; or
 (2)  prohibit a school district or open-enrollment
 charter school from providing a student with home computer
 equipment or Internet access for a virtual course provided by the
 district or school.
 Sec. 30B.005.  EXTRACURRICULAR ACTIVITY.  A student enrolled
 in a virtual or hybrid course, program, or campus offered under this
 chapter may participate in an extracurricular activity sponsored or
 sanctioned by the school district or open-enrollment charter school
 in which the student is enrolled or by the University
 Interscholastic League in the same manner as other district or
 school students.
 Sec. 30B.006.  HYBRID AND VIRTUAL INSTRUCTION PERMITTED.
 (a) A school district or open-enrollment charter school may
 deliver instruction through hybrid courses, virtual courses,
 full-time hybrid programs, and full-time virtual programs in the
 manner provided by this chapter.
 (b)  The following entities may deliver instruction through
 hybrid or virtual courses under this chapter in the same manner
 provided for a school district or open-enrollment charter school:
 (1)  a consortium of school districts or
 open-enrollment charter schools;
 (2)  an institution of higher education, as that term
 is defined by Section 61.003; or
 (3)  a regional education service center.
 (c)  A school district or open-enrollment charter school
 that delivers instruction through a hybrid or virtual course shall
 develop written information describing each hybrid or virtual
 course available for enrollment and complying with any other
 requirement of Section 26.0031.
 (d)  A school district or open-enrollment charter school
 shall make information under this section available to students and
 parents at the time students ordinarily select courses and may
 provide that information to students and parents at other times as
 determined by the district or school.
 Sec. 30B.007.  FOUNDATION SCHOOL FUNDING. A student
 enrolled in a hybrid course, virtual course, full-time hybrid
 program, or full-time virtual program offered under this chapter by
 a school district or open-enrollment charter school is counted
 toward the district's or school's average daily attendance in the
 same manner as district or school students not enrolled in a hybrid
 course, virtual course, full-time hybrid program, or full-time
 virtual program.
 SUBCHAPTER B.  HYBRID AND VIRTUAL COURSES
 Sec. 30B.051.  HYBRID OR VIRTUAL COURSE QUALITY
 REQUIREMENTS. (a)  A school district or open-enrollment charter
 school that offers a hybrid or virtual course under this chapter
 must certify to the commissioner that the course:
 (1)  includes the appropriate essential knowledge and
 skills adopted under Subchapter A, Chapter 28;
 (2)  provides instruction at the appropriate level of
 rigor for the grade level at which the course is offered and will
 prepare a student enrolled in the course for the student's next
 grade level or a subsequent course in a similar subject matter; and
 (3)   except as provided by Subsection (b), meets
 standards for hybrid or virtual courses adopted by the
 commissioner.
 (b)  If the commissioner has not adopted applicable
 standards for hybrid or virtual courses, a school district or
 open-enrollment charter school that offers a hybrid or virtual
 course must instead certify to the commissioner that the course
 meets the National Standards for Quality Online Courses published
 by the Virtual Learning Leadership Alliance, Quality Matters, and
 the Digital Learning Collaborative, or a successor publication.
 Sec. 30B.052.  RIGHTS OF STUDENTS REGARDING HYBRID AND
 VIRTUAL COURSES. (a) Except as provided by Section 30B.104(b), a
 school district or open-enrollment charter school may not require a
 student to enroll in a hybrid or virtual course.
 (b)  A hybrid or virtual course offered under this chapter to
 a student receiving special education services or other
 accommodations must meet the needs of the participating student in
 a manner consistent with Subchapter A, Chapter 29, and with federal
 law, including the Individuals with Disabilities Education Act (20
 U.S.C. Section 1400 et seq.) and Section 504, Rehabilitation Act of
 1973 (29 U.S.C. Section 794), as applicable.
 Sec. 30B.053.  RIGHTS OF TEACHERS REGARDING HYBRID AND
 VIRTUAL COURSES. (a) Except as provided by Subsection (a-1), a
 school district or open-enrollment charter school may not require a
 classroom teacher to provide both virtual instruction and in-person
 instruction for a course offered under this chapter during the same
 class period. The commissioner may waive the requirements of this
 subsection for courses included in the enrichment curriculum under
 Section 28.002.
 (a-1)  Subsection (a) does not apply to a requirement that a
 classroom teacher simulcast the teacher's in-person instruction
 provided that the teacher is not required to interact with students
 observing the instruction virtually.
 (b)  A classroom teacher may not provide instruction for a
 hybrid or virtual course offered under this chapter unless:
 (1)  the teacher has received appropriate professional
 development in hybrid or virtual instruction, as determined by the
 school district or open-enrollment charter school at which the
 teacher is employed; or
 (2)  the district or school has determined that the
 teacher has sufficient previous experience to not require the
 professional development described by Subdivision (1).
 (c)  A school district or open-enrollment charter school may
 not directly or indirectly coerce any classroom teacher hired to
 provide in-person instruction to agree to an assignment to teach a
 hybrid or virtual course.
 Sec. 30B.054.  ASSESSMENTS. Except as authorized by
 commissioner rule, an assessment instrument administered under
 Section 39.023 or 39.025 to a student enrolled in a hybrid or
 virtual course offered under this chapter shall be administered to
 the student in the same manner in which the assessment instrument is
 administered to a student enrolled in an in-person course at the
 student's school district or open-enrollment charter school.
 Sec. 30B.055.  TUITION AND FEES. A school district or
 open-enrollment charter school may charge tuition and fees for a
 hybrid or virtual course provided to a student who:
 (1)  is not eligible to enroll in a public school in
 this state; or
 (2)  is not enrolled in the school district or
 open-enrollment charter school.
 Sec. 30B.056.  ATTENDANCE FOR CLASS CREDIT OR GRADE.
 Notwithstanding Section 25.092, a school district or
 open-enrollment charter school shall establish the participation
 necessary to earn credit or a grade for a hybrid or virtual course
 offered by the district or school.
 Sec. 30B.057.  AGENCY PUBLICATION OF AVAILABLE VIRTUAL
 COURSES. (a) The agency shall publish a list of virtual courses
 offered by school districts and open-enrollment charter schools in
 this state that includes:
 (1)  whether the course is available to a student who is
 not otherwise enrolled in the offering district or school;
 (2)  the cost of the course; and
 (3)  information regarding any third-party provider
 involved in the delivery of the course.
 (b)  A school district or open-enrollment charter school
 shall provide to the agency information required to publish the
 list under Subsection (a).
 SUBCHAPTER C. FULL-TIME HYBRID AND FULL-TIME VIRTUAL CAMPUSES
 Sec. 30B.101.  FULL-TIME HYBRID OR FULL-TIME VIRTUAL CAMPUS
 AUTHORIZATION. (a) A school district or open-enrollment charter
 school may operate a full-time hybrid campus or a full-time virtual
 campus if authorized by the commissioner in accordance with this
 section.
 (b)  The commissioner shall adopt rules establishing the
 requirements for and process by which a school district or
 open-enrollment charter school may apply for authorization to
 operate a full-time hybrid campus or a full-time virtual campus.
 The rules adopted by the commissioner may require certain written
 application materials and interviews and shall require a school
 district or open-enrollment charter school to:
 (1)  engage in a year of planning before offering a
 course under this chapter to verify the course is designed in
 accordance with high-quality criteria;
 (2)  develop an academic plan that incorporates:
 (A)  curriculum and instructional practices
 aligned with the appropriate essential knowledge and skills
 provided under Subchapter A, Chapter 28;
 (B)  monitoring of the progress of student
 performance and interventions;
 (C)  a method for meeting the needs of and
 complying with federal and state requirements for special
 populations and at-risk students; and
 (D)  compliance with the requirements of this
 chapter;
 (3)  develop an operations plan that addresses:
 (A)  staffing models;
 (B)  the designation of selected school leaders;
 (C)  professional development for staff;
 (D)  student and family engagement;
 (E)  school calendars and schedules;
 (F)  student enrollment eligibility;
 (G)  cybersecurity and student data privacy
 measures; and
 (H)  any educational services to be provided by a
 private or third party; and
 (4)  demonstrate the capacity to execute the district's
 or school's plan successfully.
 (c)  A full-time hybrid campus or full-time virtual campus
 authorized under this section must include:
 (1)  at least one grade level in which an assessment
 instrument is required to be administered under Section 39.023(a)
 or (c), including each subject or course for which an assessment
 instrument is required in that grade level;
 (2)  sufficient grade levels, as determined by the
 commissioner, to allow for the annual evaluation of the performance
 of students who complete the courses offered; or
 (3)  for a campus that does not include grade levels
 described by Subdivision (1) or (2), another performance evaluation
 measure approved by the commissioner during the authorization
 process.
 (d)  A campus approved under this subchapter may only apply
 for and receive authorization to operate as a full-time hybrid
 campus or a full-time virtual campus. A campus may not change its
 operation designation during the authorization process or after the
 campus is authorized.
 (e)  The commissioner may only authorize a school district or
 open-enrollment charter school to operate a full-time hybrid campus
 or a full-time virtual campus if the commissioner determines that
 the authorization of the campus is likely to result in improved
 student learning opportunities. If a district or school will use a
 private or third party in operating the campus, the commissioner
 shall consider the historical performance of the private or third
 party, if known, in making a determination under this section.
 (f)  A determination made by the commissioner under this
 section is final and not subject to appeal.
 Sec. 30B.102.  REVOCATION. (a)  Unless revoked as provided
 by this section, the commissioner's authorization of a full-time
 hybrid campus or full-time virtual campus under Section 30B.101
 continues indefinitely.
 (b)  The commissioner shall revoke the authorization of a
 full-time hybrid campus or full-time virtual campus if the campus
 has been assigned, for the three preceding school years:
 (1)  a needs improvement or unacceptable performance
 rating under Subchapter C, Chapter 39;
 (2)  a rating of performance that needs improvement or
 unacceptable, as determined by the commissioner, on a performance
 evaluation approved by the commissioner under Section
 30B.101(c)(3); or
 (3)  any combination of the ratings described by
 Subdivision (1) or (2).
 (c)  The commissioner may, based on a special investigation
 conducted under Section 39.003:
 (1)  revoke an authorization of a full-time hybrid
 campus or full-time virtual campus; or
 (2)  require any intervention authorized under that
 section.
 (d)  If a private or third party is determined to be
 ineligible under Section 30B.152, the commissioner shall revoke an
 authorization of a full-time hybrid campus or full-time virtual
 campus for which the private or third party acts as a whole program
 virtual instruction provider, unless the commissioner approves a
 request by the school district or open-enrollment charter school
 that operates the campus to use an alternative private or third
 party.
 (e)  An appeal by a school district or open-enrollment
 charter school of a revocation of an authorization under this
 chapter that results in the closure of a campus must be made under
 Section 39A.301.
 Sec. 30B.103.  STUDENT ELIGIBILITY. (a) A student eligible
 to enroll in a public school of this state is eligible to enroll at a
 full-time hybrid campus.
 (b)  A student is eligible to enroll in a full-time virtual
 campus if the student:
 (1)  attended a public school in this state for a
 minimum of six weeks in the current school year or in the preceding
 school year;
 (2)  is, in the school year in which the student first
 seeks to enroll in the full-time virtual campus, enrolled in the
 first grade or a lower grade level;
 (3)  was not required to attend public school in this
 state due to nonresidency during the preceding school year;
 (4)  is a dependent of a member of the United States
 military who has been deployed; or
 (5)  has been placed in substitute care in this state.
 Sec. 30B.104.  STUDENT RIGHTS REGARDING FULL-TIME HYBRID AND
 FULL-TIME VIRTUAL CAMPUSES.  (a) A student enrolled in a school
 district may not be compelled to enroll in a full-time hybrid or
 full-time virtual campus. A school district must offer the option
 for a student's parent to select in-person instruction for the
 student.
 (b)  Notwithstanding Subsection (a) or Section 30B.052, an
 open-enrollment charter school may require a student to attend a
 full-time hybrid or full-time virtual campus.
 Sec. 30B.105.  CAMPUS DESIGNATIONS. The commissioner shall
 determine and assign a unique campus designation number to each
 full-time hybrid campus or full-time virtual campus authorized
 under this subchapter.
 Sec. 30B.106.  FUNDING. (a) For purposes of calculating the
 average daily attendance of students attending a full-time hybrid
 campus or full-time virtual campus, the commissioner shall use the
 number of full-time equivalent students enrolled in the full-time
 hybrid or full-time virtual campus multiplied by the average
 attendance rate of the school district or open-enrollment charter
 school that offers the full-time hybrid or full-time virtual campus
 not including any student enrolled full-time in a full-time hybrid
 or full-time virtual campus. In the event that a reliable
 attendance rate cannot be determined under this section, the
 commissioner shall use the statewide average attendance rate.
 (b)  The commissioner shall provide proportionate funding to
 the applicable school district or open-enrollment charter school
 for a student that alternates attendance between a traditional,
 in-person campus setting and the full-time hybrid or full-time
 virtual campus of any single district or school in the same school
 year.
 SUBCHAPTER D. PRIVATE AND THIRD-PARTY PROVIDERS
 Sec. 30B.151.  NOTICE AND USE OF PRIVATE OR THIRD PARTY. (a)
 A school district or open-enrollment charter school shall provide
 notice to the commissioner of the use of or change in affiliation of
 a private or third party acting as a whole program virtual
 instruction provider for a full-time hybrid or full-time virtual
 campus or program.
 (b)  Except as provided by Section 30B.152, a school district
 or open-enrollment charter school may not use a private or third
 party to act as a whole program virtual instruction provider if the
 party has been determined to be ineligible under that section.
 Sec. 30B.152.  PRIVATE OR THIRD-PARTY ACCOUNTABILITY. (a)
 The commissioner shall, to the extent feasible, evaluate the
 performance of a private or third party acting as a whole program
 virtual instruction provider for a school district or
 open-enrollment charter school.
 (b)  The commissioner shall establish a standard to
 determine if a private or third party is ineligible to act as a
 whole program virtual instruction provider. A private or third
 party determined to be ineligible under this section remains
 ineligible until after the fifth anniversary of that determination.
 (c)  A school district or open-enrollment charter school may
 use a private or third party determined to be ineligible under
 Subsection (b) as a whole program virtual instruction provider if:
 (1)  the district or school requests approval from the
 commissioner; and
 (2)  the commissioner determines that the reasons the
 private or third party was declared ineligible under Subsection (b)
 will not affect the operation of the party as a whole program
 virtual instruction provider at the district or school.
 SUBCHAPTER E. STATE SUPPORT
 Sec. 30B.201.  EDUCATOR PROFESSIONAL DEVELOPMENT. From
 funds appropriated or otherwise available, the agency shall develop
 professional development courses and materials aligned with
 research-based practices for educators in providing high-quality
 virtual education.
 Sec. 30B.202.  DEVELOPMENT GRANTS FOR VIRTUAL EDUCATION.
 From funds appropriated or otherwise available, the agency shall
 provide grants and technical assistance to school districts and
 open-enrollment charter schools to aid in the establishment of
 high-quality full-time hybrid or full-time virtual campuses.
 SECTION 7.07.  Section 33.009(d), Education Code, is amended
 to read as follows:
 (d)  An academy developed under this section must provide
 counselors and other postsecondary advisors with knowledge and
 skills to provide counseling to students regarding postsecondary
 success and productive career planning and must include information
 relating to:
 (1)  each endorsement described by Section
 28.025(c-1), including:
 (A)  the course requirements for each
 endorsement; and
 (B)  the postsecondary educational and career
 opportunities associated with each endorsement;
 (2)  available methods for a student to earn credit for
 a course not offered at the school in which the student is enrolled,
 including enrollment in a virtual [an electronic] course provided
 [through the state virtual school network] under Chapter 30B [30A];
 (3)  general academic performance requirements for
 admission to an institution of higher education, including the
 requirements for automatic admission to a general academic teaching
 institution under Section 51.803;
 (4)  regional workforce needs, including information
 about the required education and the average wage or salary for
 careers that meet those workforce needs; and
 (5)  effective strategies for engaging students and
 parents in planning for postsecondary education and potential
 careers, including participation in mentorships and business
 partnerships.
 SECTION 7.08.  Subchapter A, Chapter 37, Education Code, is
 amended by adding Section 37.0071 to read as follows:
 Sec. 37.0071.  VIRTUAL EDUCATION AS ALTERNATIVE TO
 EXPULSION. (a)  Except as provided by Subsection (b), before a
 school district or open-enrollment charter school may expel a
 student, the district or school shall consider the appropriateness
 and feasibility of, as an alternative to expulsion, enrolling the
 student in a full-time hybrid program, full-time virtual program,
 full-time hybrid campus, or full-time virtual campus, as those
 terms are defined in Section 30B.001.
 (b)  Subsection (a) does not apply to a student expelled
 under Section 37.0081 or 37.007(a), (d), or (e).
 SECTION 7.09.  Section 48.005, Education Code, is amended by
 adding Subsection (e-1) to read as follows:
 (e-1)  In a school year in which the occurrence of an
 emergency or crisis, as defined by commissioner rule, causes a
 statewide decrease in average daily attendance of school districts
 entitled to funding under this chapter or, for an emergency or
 crisis occurring only within a specific region of this state,
 causes a regional decrease in the average daily attendance of
 school districts located in the affected region, the commissioner
 shall modify or waive requirements applicable to the affected
 districts under this section and adopt appropriate safeguards as
 necessary to ensure the continued support and maintenance of an
 efficient system of public free schools and the continued delivery
 of high-quality instruction under that system.
 SECTION 7.10.  Section 48.053(b), Education Code, is amended
 to read as follows:
 (b)  A school district to which this section applies is
 entitled to funding under this chapter as if the district were a
 full-time hybrid campus or full-time virtual campus for purposes of
 Section 30B.106 with [had] no tier one local share for purposes of
 Section 48.256 for each student enrolled in the district:
 (1)  who resides in this state; or
 (2)  who:
 (A)  is a dependent of a member of the United
 States military;
 (B)  was previously enrolled in school in this
 state; and
 (C)  does not reside in this state due to a
 military deployment or transfer.
 SECTION 7.11.  Section 48.104(f), Education Code, is amended
 to read as follows:
 (f)  A student receiving a full-time virtual education
 provided through a full-time virtual campus under Chapter 30B shall
 [through the state virtual school network may] be included in
 determining the number of students who are educationally
 disadvantaged and reside in an economically disadvantaged census
 block group under Subsection (b) or (e), as applicable[, if the
 school district submits to the commissioner a plan detailing the
 enhanced services that will be provided to the student and the
 commissioner approves the plan].
 SECTION 7.12.  Section 48.111, Education Code, is amended by
 amending Subsection (b) and adding Subsection (b-1) to read as
 follows:
 (b)  For purposes of Subsection (a), in determining the
 number of students enrolled in a school district, the commissioner
 shall exclude students enrolled in the district who receive
 full-time instruction provided through a full-time virtual campus
 under Chapter 30B [through the state virtual school network under
 Chapter 30A].
 (b-1)  For purposes of Subsection (a), in determining the
 number of students enrolled in a school district, the commissioner
 shall exclude students enrolled in the district who receive
 full-time instruction through the state virtual school network
 under Chapter 30A as that chapter existed on September 1, 2023.
 This subsection expires September 1, 2029.
 SECTION 7.13.  The following provisions of the Education
 Code are repealed:
 (1)  Section 26.0031(f); and
 (2)  Chapter 30A.
 SECTION 7.14.  (a)  Notwithstanding the repeal by this
 article of Chapter 30A, Education Code, a school district or
 open-enrollment charter school providing an electronic course or a
 full-time program through the state virtual school network in
 accordance with Chapter 30A, Education Code, as that law existed
 immediately before the effective date of this article, may, except
 as provided by Subsection (b) of this section, continue to provide
 that course or full-time program as if that chapter were still in
 effect until the end of the 2025-2026 school year.
 (b)  The funding provided to a school district or
 open-enrollment charter school for a student enrolled in an
 electronic course or full-time program offered through the state
 virtual school network in accordance with Chapter 30A, Education
 Code, as that law existed immediately before the effective date of
 this article, shall be determined, as applicable, under Section
 30B.007 or 30B.106, Education Code, as added by this article.
 SECTION 7.15.  The commissioner of education shall adopt
 rules providing an expedited authorization process for a school
 district or open-enrollment charter school that applies to operate
 a full-time hybrid campus or a full-time virtual campus under
 Chapter 30B, Education Code, as added by this article, if the
 district or school, as of the effective date of this article:
 (1)  operates an electronic course or full-time program
 through the state virtual school network in accordance with Chapter
 30A, Education Code, as that law existed immediately before the
 effective date of this article; or
 (2)  operates a virtual education program, regardless
 of whether the district or school received funding for students
 enrolled in the program during the 2022-2023 or 2023-2024 school
 year.
 SECTION 7.16.  This article takes effect immediately if this
 Act receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, this article takes effect on the 91st day after the last day
 of the legislative session.
 ARTICLE 8. CHANGES RELATED TO ACCOUNTABILITY
 SECTION 8.01.  Subchapter A, Chapter 39, Education Code, is
 amended by adding Section 39.008 to read as follows:
 Sec. 39.008.  EXPIRATION OF CHAPTER. This chapter expires
 August 31, 2026.
 SECTION 8.02.  Subchapter C, Chapter 39, Education Code, is
 amended by adding Section 39.0521 to read as follows:
 Sec. 39.0521.  TEMPORARY PROVISION: ASSIGNMENT OF
 PERFORMANCE RATINGS AND SCORING OF ASSESSMENT INSTRUMENTS.  (a)
 Notwithstanding any other law, for the 2023-2024, 2024-2025, and
 2025-2026 school years, the commissioner shall use the indicators,
 standards, procedures, criteria, and calculations prescribed by
 the 2022 Accountability Manual, adopted under 19 T.A.C. Section
 97.1001, as that rule existed on September 1, 2023, to:
 (1)  evaluate school district and campus performance
 and assign each district and campus a performance rating; and
 (2)  score assessment instruments administered under
 Subchapter B.
 (b)  The agency shall receive a direct appropriation from the
 legislature for any additional costs for scoring the assessment
 instruments administered under Subchapter B in the manner described
 by Subsection (a)(2).
 (c)  This section expires August 31, 2026.
 SECTION 8.03.  Section 39.053, Education Code, is amended by
 amending Subsection (c) and adding Subsections (c-4), (c-5), and
 (c-6) to read as follows:
 (c)  School districts and campuses must be evaluated based on
 three domains of indicators of achievement adopted under this
 section that include:
 (1)  in the student achievement domain, indicators of
 student achievement that must include:
 (A)  for evaluating the performance of districts
 and campuses generally:
 (i)  an indicator that accounts for the
 results of assessment instruments required under Sections
 39.023(a), (c), and (l), as applicable for the district and campus,
 including the results of assessment instruments required for
 graduation retaken by a student, aggregated across grade levels by
 subject area, including:
 (a)  for the performance standard
 determined by the commissioner under Section 39.0241(a), the
 percentage of students who performed satisfactorily on the
 assessment instruments, aggregated across grade levels by subject
 area; and
 (b)  for the college readiness
 performance standard as determined under Section 39.0241, the
 percentage of students who performed satisfactorily on the
 assessment instruments, aggregated across grade levels by subject
 area; and
 (ii)  an indicator that accounts for the
 results of assessment instruments required under Section
 39.023(b), as applicable for the district and campus, including the
 percentage of students who performed satisfactorily on the
 assessment instruments, as determined by the performance standard
 adopted by the agency, aggregated across grade levels by subject
 area; and
 (B)  for evaluating the performance of high school
 campuses and districts that include high school campuses,
 indicators that account for:
 (i)  students who satisfy the Texas Success
 Initiative (TSI) college readiness benchmarks prescribed by the
 Texas Higher Education Coordinating Board under Section 51.334 on
 an assessment instrument in reading or mathematics designated by
 the coordinating board under that section;
 (ii)  students who satisfy relevant
 performance standards on advanced placement tests or similar
 assessments;
 (iii)  students who earn dual course credits
 in the dual credit courses;
 (iv)  students who demonstrate military
 readiness by:
 (a)  enlisting [enlist] in the armed
 forces of the United States or the Texas National Guard;
 (b)  achieving a passing score set by
 the applicable military branch on the Armed Services Vocational
 Aptitude Battery test; or
 (c)  successfully completing a Junior
 Reserve Officer Training Corps program;
 (v)  students who earn industry
 certifications;
 (vi)  students admitted into postsecondary
 industry certification programs that require as a prerequisite for
 entrance successful performance at the secondary level;
 (vii)  students whose successful completion
 of a course or courses under Section 28.014 indicates the student's
 preparation to enroll and succeed, without remediation, in an
 entry-level general education course for a baccalaureate degree or
 associate degree;
 (viii)  students who successfully met
 standards on a composite of indicators that through research
 indicates the student's preparation to enroll and succeed, without
 remediation, in an entry-level general education course for a
 baccalaureate degree or associate degree;
 (ix)  high school graduation rates, computed
 in accordance with standards and definitions adopted in compliance
 with the Every Student Succeeds Act (20 U.S.C. Section 6301 et seq.)
 subject to the exclusions provided by Subsections (g), (g-1),
 (g-2), (g-3), and (g-4);
 (x)  students who successfully completed an
 OnRamps dual enrollment course;
 (xi)  students who successfully completed a
 practicum or internship approved by the State Board of Education;
 (xii)  students who are awarded an associate
 degree; and
 (xiii)  students who successfully completed
 a program of study in career and technical education;
 (2)  in the school progress domain, indicators for
 effectiveness in promoting student learning, which must include:
 (A)  for assessment instruments, including
 assessment instruments under Subdivisions (1)(A)(i) and (ii), the
 percentage of students who met the standard for improvement, as
 determined by the commissioner; and
 (B)  for evaluating relative performance, the
 performance of districts and campuses compared to similar districts
 or campuses; and
 (3)  in the closing the gaps domain, the use of
 disaggregated data to demonstrate the differentials among students
 from different racial and ethnic groups, socioeconomic
 backgrounds, and other factors, including:
 (A)  students formerly receiving special
 education services;
 (B)  students continuously enrolled; and
 (C)  students who are mobile.
 (c-4)  The agency shall study the college, career, and
 military readiness indicators adopted under Subsection (c) to
 determine the correlation of each indicator with post-secondary
 success, including the correlation of industry certifications with
 wages and available jobs.  The assignment of value for an indicator
 must be based on the strength of the indicator's correlation with
 successful outcomes.
 (c-5)  The agency shall maintain a list of industry
 certifications that are eligible for purposes of Subsection
 (c)(1)(B)(v). The certifications must:
 (1)  be aligned to a program of study that, according to
 labor market data, prepares students for high-wage, high-skill,
 in-demand occupations;
 (2)  allow students to demonstrate mastery of the
 skills required for occupations within an approved program of
 study; and
 (3)  be obtained through an assessment of the knowledge
 and skills provided by or determined by an independent, third-party
 certifying entity using predetermined standards for knowledge,
 skills, and competencies.
 (c-6)  The agency shall determine the eligibility of
 industry certifications under Subsection (c-5) using the most
 current labor market information.  A certification the agency
 determines is no longer eligible for purposes of Subsection
 (c)(1)(B)(v) shall be removed from the list maintained under
 Subsection (c-5) not later than four years after the date the agency
 makes the determination.  During the four years following an
 agency's determination under this subsection that an industry
 certification is no longer eligible for purposes of Subsection
 (c)(1)(B)(v), a school district may receive the benefit of
 achievement indicators based on that industry certification for
 purposes of Subsection (c) only for a cohort of students who earn
 the industry certification and graduate within the four-year
 period.
 SECTION 8.04.  Section 39.0541, Education Code, is amended
 to read as follows:
 Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS.  The
 commissioner may adopt indicators and standards under this
 subchapter at any time [during a school year] before issuing the
 evaluation of a school district or campus for a school year.
 SECTION 8.05.  Section 39.0542(a), Education Code, is
 amended to read as follows:
 (a)  The [Each school year, the] commissioner shall provide
 each school district a document in a simple, accessible format that
 explains the accountability performance measures, methods, and
 procedures that will be applied [for that school year] in assigning
 each school district and campus a performance rating under Section
 39.054.
 SECTION 8.06.  Subchapter H, Chapter 39, Education Code, is
 amended by adding Section 39.231 to read as follows:
 Sec. 39.231.  LOCAL ACCOUNTABILITY GRANT PROGRAM. (a) With
 funds appropriated or otherwise available for the purpose, the
 agency shall establish a grant program with capacity to assist at
 least one school district per education service center region in
 developing local accountability systems that comply with the
 requirements of Section 39.0544.
 (b)  The commissioner shall adopt rules to implement this
 section.
 SECTION 8.07.  Chapter 39, Education Code, is amended by
 adding Subchapter N to read as follows:
 SUBCHAPTER N. TEXAS COMMISSION ON ASSESSMENT AND ACCOUNTABILITY
 Sec. 39.451.  DEFINITION. In this subchapter, "commission"
 means the Texas Commission on Assessment and Accountability.
 Sec. 39.452.  TEXAS COMMISSION ON ASSESSMENT AND
 ACCOUNTABILITY. (a) The commission is established to develop and
 make recommendations for:
 (1)  improvements to the current public school
 assessment and accountability systems; and
 (2)  the adoption of a new assessment and
 accountability system as provided by the Every Student Succeeds Act
 (20 U.S.C. Section 6301 et seq.).
 (b)  The commission is composed of 15 members, consisting of:
 (1)  four members appointed by the governor;
 (2)  five members appointed by the lieutenant governor;
 (3)  five members appointed by the speaker of the house
 of representatives; and
 (4)  a member of the State Board of Education, as
 designated by the chair of that board.
 (c)  The members appointed by the governor must have an
 interest in public education and include at least:
 (1)  one person who is a current or retired classroom
 teacher with at least 10 years of teaching experience;
 (2)  one person who is a member of the business
 community; and
 (3)  one person who is a member of the civic community.
 (d)  The appointments made by the lieutenant governor and the
 speaker of the house of representatives must each consist of:
 (1)  three members of the applicable legislative
 chamber;
 (2)  an administrator in the public school system or an
 elected member of the board of trustees of a school district; and
 (3)  a member of the public who works in public
 education with experience in the assessment and accountability
 system.
 (e)  In making appointments under Subsections (b)(1), (2),
 and (3), the governor, lieutenant governor, and speaker of the
 house of representatives shall coordinate to ensure that the
 membership of the commission reflects, to the extent possible, the
 ethnic and geographic diversity of this state.
 Sec. 39.453.  PRESIDING OFFICER.  The governor shall
 designate the presiding officer of the commission.
 Sec. 39.454.  COMPENSATION AND REIMBURSEMENT. A member of
 the commission is not entitled to compensation for service on the
 commission but is entitled to reimbursement for actual and
 necessary expenses incurred in performing commission duties.
 Sec. 39.455.  ADMINISTRATIVE SUPPORT AND FUNDING. (a) One
 full-time employee of the agency shall provide administrative
 support for the commission.  Funding for the full-time employee
 shall be provided by legislative appropriation not to exceed
 $100,000 made to the agency for that purpose.
 (b)  Funding for the administrative and operational expenses
 of the commission shall be provided by legislative appropriation
 not to exceed $100,000 made to the agency for that purpose.
 Sec. 39.456.  RECOMMENDATIONS. (a) The commission shall
 develop recommendations under this subchapter to address issues
 related to the public school statewide assessment and
 accountability system, including:
 (1)  the purpose of the assessment and accountability
 system and the relationship between state and local accountability
 in that system;
 (2)  the appropriate number of assessments per grade
 level that comply with federal requirements;
 (3)  changes in policy regarding the assessment and
 accountability system necessary to meet the needs of the state;
 (4)  grading systems and the impact that those systems
 will have on the assessment and accountability system, including
 the use of artificial intelligence in grading systems;
 (5)  the development and use of additional
 research-based indicators for the assessment and accountability
 system; and
 (6)  the adoption of an assessment and accountability
 system that meets the needs of the 21st-century student.
 (b)  The commission may establish one or more working groups
 composed of not more than five members of the commission to study,
 discuss, and address specific policy issues and recommendations to
 refer to the commission for consideration.
 Sec. 39.457.  REPORT. Not later than December 31, 2024, the
 commission shall prepare and deliver a report to the governor and
 the legislature that recommends statutory changes to improve the
 public school assessment and accountability system, including any
 adjustments to funding necessary to account for student
 demographics.
 Sec. 39.458.  PUBLIC MEETINGS AND PUBLIC INFORMATION. (a)
 The commission may hold public meetings as needed to fulfill its
 duties under this subchapter.
 (b)  The commission is subject to Chapters 551 and 552,
 Government Code.
 Sec. 39.459.  COMMISSION ABOLISHED; EXPIRATION OF
 SUBCHAPTER.  The commission is abolished and this subchapter
 expires January 7, 2025.
 SECTION 8.08.  (a) Notwithstanding any other law, the
 commissioner of education may not assign A through F ratings,
 domain-scaled scores, or overall scaled scores to an independent
 school district or district campus under Chapter 39, Education
 Code, for the 2022-2023 school year.
 (b)  Notwithstanding Subchapter B, Chapter 2001, Government
 Code, the commissioner of education may, using abbreviated notice
 as determined practicable by the commissioner and without a public
 hearing, but with input from the legislature, adopt rules for
 determining the accountability of public schools for the 2022-2023
 school year.
 SECTION 8.09.  This article takes effect on the 91st day
 after the last day of the legislative session.