Texas 2023 - 88th 4th C.S.

Texas House Bill HB116 Compare Versions

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1	1	By: Guillen H.B. No. 116
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the basic allotment and guaranteed yield under the
7	7	public school finance system, certain allotments under the
8	8	Foundation School Program, determination of a school district's
9	9	assets to liabilities ratio under the public school financial
10	10	accountability rating system, and credit for prepayment of the
11	11	amount required to be paid by a school district for the purchase of
12	12	attendance credit under the public school finance system.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 48.051, Education Code, is amended by
15	15	amending Subsection (a) and adding Subsection (c-3) to read as
16	16	follows:
17	17	(a) For each student in average daily attendance, not
18	18	including the time students spend each day in special education
19	19	programs in an instructional arrangement other than mainstream or
20	20	career and technology education programs, for which an additional
21	21	allotment is made under Subchapter C, a district is entitled to an
22	22	allotment equal to the lesser of $8,000 [$6,160] or the amount that
23	23	results from the following formula:
24	24	A = $8,000 [$6,160] X TR/MCR
25	25	where:
26	26	"A" is the allotment to which a district is entitled;
27	27	"TR" is the district's tier one maintenance and operations
28	28	tax rate, as provided by Section 45.0032; and
29	29	"MCR" is the district's maximum compressed tax rate, as
30	30	determined under Section 48.2551.
31	31	(b) A greater amount for any school year may be provided by
32	32	appropriation.
33	33	(c) During any school year for which the maximum amount of
34	34	the basic allotment provided under Subsection (a) or (b) is greater
35	35	than the maximum amount provided for the preceding school year, a
36	36	school district must use at least 30 percent of the amount, if the
37	37	amount is greater than zero, that equals the product of the average
38	38	daily attendance of the district multiplied by the amount of the
39	39	difference between the district's funding under this chapter per
40	40	student in average daily attendance for the current school year and
41	41	the preceding school year to provide compensation increases to
42	42	full-time district employees other than administrators as follows:
43	43	(1) 75 percent must be used to increase the
44	44	compensation paid to classroom teachers, full-time librarians,
45	45	full-time school counselors certified under Subchapter B, Chapter
46	46	21, and full-time school nurses, prioritizing differentiated
47	47	compensation for classroom teachers with more than five years of
48	48	experience; and
49	49	(2) 25 percent may be used as determined by the
50	50	district to increase compensation paid to full-time district
51	51	employees.
52	52	(c-1) A school district employee who received a salary
53	53	increase under Subsection (c) from a school district for the
54	54	2019-2020 school year is, as long as the employee remains employed
55	55	by the same district and the district is receiving at least the same
56	56	amount of funding as the amount of funding the district received for
57	57	the 2019-2020 school year, entitled to salary that is at least equal
58	58	to the salary the employee received for the 2019-2020 school year.
59	59	This subsection does not apply if the board of trustees of the
60	60	school district at which the employee is employed:
61	61	(1) complies with Sections 21.4021, 21.4022, and
62	62	21.4032 in reducing the employee's salary; and
63	63	(2) has adopted a resolution declaring a financial
64	64	exigency for the district under Section 44.011.
65	65	(c-2) A reduction in the salary of a school district
66	66	employee described by Subsection (c-1) is subject to the rights
67	67	granted to the employee under this code.
68	68	(c-3) Subsection (c)(1) does not apply to a school district
69	69	employee subject to Section 48.310 or Section 48.311.
70	70	(d) In this section, "compensation" includes benefits such
71	71	as insurance premiums.
72	72	SECTION 2. Section 48.202(a-1), Education Code, is amended
73	73	to read as follows:
74	74	(a-1) For purposes of Subsection (a), the dollar amount
75	75	guaranteed level of state and local funds per weighted student per
76	76	cent of tax effort ("GL") for a school district is:
77	77	(1) the greater of the amount of district tax revenue
78	78	per weighted student per cent of tax effort available to a school
79	79	district at the 96th percentile of wealth per weighted student or
80	80	the amount that results from multiplying $8,000 [6,160], or the
81	81	greater amount provided under Section 48.051(b), if applicable, by
82	82	0.016, for the first eight cents by which the district's
83	83	maintenance and operations tax rate exceeds the district's tier one
84	84	tax rate; and
85	85	(2) subject to Subsection (f), the amount that results
86	86	from multiplying $8,000 [$6,160], or the greater amount provided
87	87	under Section 48.051(b), if applicable, by 0.008, for the
88	88	district's maintenance and operations tax effort that exceeds the
89	89	amount of tax effort described by Subdivision (1).
90	90	SECTION 3. Section 48.101, Subchapter C, Chapter 48,
91	91	Education Code, is amended to read as follows:
92	92	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
93	93	Small and mid-sized districts are entitled to an annual allotment
94	94	in accordance with this section. In this section:
95	95	(1) "AA" is the district's annual allotment per
96	96	student in average daily attendance;
97	97	(2) "ADA" is the number of students in average daily
98	98	attendance for which the district is entitled to an allotment under
99	99	Section 48.051; and
100	100	(3) "BA" is the basic allotment determined under
101	101	Section 48.051.
102	102	(b) A school district that has fewer than 1,600 students in
103	103	average daily attendance is entitled to an annual allotment for
104	104	each student in average daily attendance based on the following
105	105	formula:
106	106	AA = ((1,600 - ADA) X .0004.0008) X BA
107	107	(c) A school district that offers a kindergarten through
108	108	grade 12 program and has less than 5,000 students in average daily
109	109	attendance is entitled to an annual allotment for each student in
110	110	average daily attendance based on the formula, of the following
111	111	formulas, that results in the greatest annual allotment:
112	112	(1) the formula in Subsection (b), if the district is
113	113	eligible for that formula; or
114	114	(2) AA = ((5,000 - ADA) X .000025.00005) X BA.
115	115	(d) Instead of the allotment under Subsection (b) or (c)(1),
116	116	a school district that has fewer than 300 students in average daily
117	117	attendance and is the only school district located in and operating
118	118	in a county is entitled to an annual allotment for each student in
119	119	average daily attendance based on the following formula:
120	120	AA = ((1,600 - ADA) X .00047.00094) X BA
121	121	SECTION 4. Subchapter G, Chapter 48, Education Code, is
122	122	amended by adding Sections 48.310 and 48.311 to read as follows:
123	123	Sec. 48.310. TEACHER RETENTION ALLOTMENT. (a) In this
124	124	section, "classroom teacher" has the meaning assigned by Section
125	125	5.001, except that the term also includes a person who is not
126	126	required to hold a certificate issued under Subchapter B, Chapter
127	127	21, who otherwise meets the definition of a classroom teacher under
128	128	that section.
129	129	(b) A school district is entitled to an annual allotment for
130	130	each classroom teacher employed by the district in the school year
131	131	for which the allotment is provided as follows:
132	132	(1) if the district has 10,000 or fewer students
133	133	enrolled for that school year, $10,000 per classroom teacher; and
134	134	(2) if the district has more than 10,000 students
135	135	enrolled for that school year, $3,000 per classroom teacher.
136	136	(b-1) In addition to the amount under Subsection (b)(2), a
137	137	school district described by that subdivision is entitled to an
138	138	allotment in the amount equal to $7,000 multiplied by the result of
139	139	dividing 10,000 by 14.5 if the school district received an
140	140	allotment in a previous school year under:
141	141	(1) Subsection (b)(1); or
142	142	(2) Section 48.311(b)(1), as that section existed on
143	143	the date it was enacted.
144	144	(c) For the 2024-2025 school year, a school district shall
145	145	use money received under Subsection (b) to increase the salary
146	146	provided to each classroom teacher in the district for that year
147	147	over the salary the teacher received or would have received if
148	148	employed by the district in the 2023-2024 school year by at least
149	149	the amount received per classroom teacher under Subsection (b).
150	150	(d) For the 2025-2026 and each subsequent school year, a
151	151	school district shall use money received under Subsection (b) to
152	152	maintain the salary increases for classroom teachers provided under
153	153	Subsection (c). Any additional funding generated for a school
154	154	district under this section may only be used for the compensation of
155	155	classroom teachers employed by the district.
156	156	(e) Notwithstanding any other law, the commissioner shall
157	157	exclude the funding to which a school district is entitled under
158	158	this section for purposes of:
159	159	(1) determining the amount by which the district must
160	160	reduce the district's tier one revenue level under Section 48.257;
161	161	and
162	162	(2) calculating a school district's maintenance and
163	163	operations revenue under Section 48.277(a).
164	164	Sec. 48.311. TEACHER RETENTION BONUS FOR 2023-2024 SCHOOL
165	165	YEAR. (a) In this section, "classroom teacher" has the meaning
166	166	assigned by Section 48.310.
167	167	(b) A school district is entitled to a one-time payment for
168	168	each classroom teacher employed by the district during the
169	169	2023-2024 school year in the following amount:
170	170	(1) if the district has 10,000 or fewer students
171	171	enrolled for that school year, $10,000 per classroom teacher; and
172	172	(2) if the district has more than 10,000 students
173	173	enrolled for that school year, $3,000 per classroom teacher.
174	174	(c) A school district shall use money received under
175	175	Subsection (b) to provide a bonus payment in the amount received per
176	176	classroom teacher under Subsection (b) to each classroom teacher in
177	177	the district as part of the teacher's salary payment for December
178	178	2023, if feasible, and if not feasible, then the district shall
179	179	provide the bonus payment as part of the teacher's salary payment
180	180	for the first month in which it is feasible. The bonus payment made
181	181	under this subsection is in addition to the salary and wages to
182	182	which the classroom teacher is otherwise entitled for the 2023-2024
183	183	school year.
184	184	(d) Notwithstanding any other law, the commissioner shall
185	185	exclude the funding to which a school district is entitled under
186	186	this section for purposes of:
187	187	(1) determining the amount by which the district must
188	188	reduce the district's tier one revenue level under Section 48.257;
189	189	and
190	190	(2) calculating a school district's maintenance and
191	191	operations revenue under Section 48.277(a).
192	192	(e) A bonus payment made under this section is included in
193	193	salary and wages for service for purposes of Section 822.201,
194	194	Government Code.
195	195	(f) This section expires September 1, 2024.
196	196	SECTION 5. Section 822.201(b), Government Code, is amended
197	197	to read as follows:
198	198	(b) "Salary and wages" as used in Subsection (a) means:
199	199	(1) normal periodic payments of money for service the
200	200	right to which accrues on a regular basis in proportion to the
201	201	service performed;
202	202	(2) amounts by which the member's salary is reduced
203	203	under a salary reduction agreement authorized by Chapter 610;
204	204	(3) amounts that would otherwise qualify as salary and
205	205	wages under Subdivision (1) but are not received directly by the
206	206	member pursuant to a good faith, voluntary written salary reduction
207	207	agreement in order to finance payments to a deferred compensation
208	208	or tax sheltered annuity program specifically authorized by state
209	209	law or to finance benefit options under a cafeteria plan qualifying
210	210	under Section 125 of the Internal Revenue Code of 1986, if:
211	211	(A) the program or benefit options are made
212	212	available to all employees of the employer; and
213	213	(B) the benefit options in the cafeteria plan are
214	214	limited to one or more options that provide deferred compensation,
215	215	group health and disability insurance, group term life insurance,
216	216	dependent care assistance programs, or group legal services plans;
217	217	(4) performance pay awarded to an employee by a school
218	218	district as part of a total compensation plan approved by the board
219	219	of trustees of the district and meeting the requirements of
220	220	Subsection (e);
221	221	(5) the benefit replacement pay a person earns under
222	222	Subchapter H, Chapter 659, except as provided by Subsection (c);
223	223	(6) stipends paid to teachers in accordance with
224	224	former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
225	225	(7) amounts by which the member's salary is reduced or
226	226	that are deducted from the member's salary as authorized by
227	227	Subchapter J, Chapter 659;
228	228	(8) a merit salary increase made under Section 51.962,
229	229	Education Code;
230	230	(9) amounts received under the relevant parts of the
231	231	educator excellence awards program under Subchapter O, Chapter 21,
232	232	Education Code, or a mentoring program under Section 21.458,
233	233	Education Code, that authorize compensation for service;
234	234	(10) salary amounts designated as health care
235	235	supplementation by an employee under Subchapter D, Chapter 22,
236	236	Education Code;
237	237	(11) to the extent required by Sections 3401(h) and
238	238	414(u)(12), Internal Revenue Code of 1986, differential wage
239	239	payments received by an individual from an employer on or after
240	240	January 1, 2009, while the individual is performing qualified
241	241	military service as defined by Section 414(u), Internal Revenue
242	242	Code of 1986; [and]
243	243	(12) increased compensation paid to a teacher by a
244	244	school district using funds received by the district under the
245	245	teacher incentive allotment under Section 48.112, Education Code;
246	246	and
247	247	(13) any increase in the payment of money made to a
248	248	classroom teacher by a school district from funds allotted to the
249	249	district under Section 48.310, Education Code.
250	250	SECTION 6. Section 48.102, Education Code, is amended by
251	251	adding Subsection (a-1) to read as follows:
252	252	(a-1) A school district that for the 2023-2024 school year
253	253	spent a greater amount for students in a special education program
254	254	under Subchapter A, Chapter 29, than the amount the district
255	255	received from the allotment under this section is entitled to
256	256	additional funding for the 2024-2025 school year in an amount equal
257	257	to twice the amount of the difference between the total of those
258	258	amounts. This subsection expires September 1, 2025.
259	259	SECTION 7. Section 39.082(c), Education Code, is amended to
260	260	read as follows:
261	261	(c) The system may not include an indicator under Subsection
262	262	(b) or any other performance measure that:
263	263	(1) requires a school district to spend at least 65
264	264	percent or any other specified percentage of district operating
265	265	funds for instructional purposes; [or]
266	266	(2) lowers the financial management performance
267	267	rating of a school district for failure to spend at least 65 percent
268	268	or any other specified percentage of district operating funds for
269	269	instructional purposes; or
270	270	(3) for a school district required to reduce its local
271	271	revenue level under Section 48.257, includes in determining the
272	272	district's ratio of assets to liabilities any amount required to be
273	273	expended by the district to comply with Chapter 49.
274	274	SECTION 8. Subchapter D, Chapter 49, Education Code, is
275	275	amended by adding Section 49.1541 to read as follows:
276	276	Sec. 49.1541. CREDIT FOR PREPAYMENT. (a) If a school
277	277	district elects to pay for attendance credit purchased in the
278	278	manner provided by Section 49.154(a)(2), the total amount required
279	279	under Section 49.153 for the district to purchase credit under this
280	280	subchapter for any school year is reduced at a rate of one percent
281	281	for each full 30-day period remaining until August 15 of the school
282	282	year for which the agreement is in effect on the date the district
283	283	pays in one payment the total amount required to be paid by the
284	284	district.
285	285	(b) A reduction under Subsection (a) shall be made after
286	286	making any reduction to which the district is entitled under
287	287	Section 49.157 or another provision of this chapter.
288	288	SECTION 9. A bonus payment made to a classroom teacher, as
289	289	defined by Section 48.310, Education Code, as added by this Act, by
290	290	a school district with money received by the district under Section
291	291	48.311, Education Code, as added by this Act, as that section
292	292	existed prior to its expiration, shall be included in salary and
293	293	wages for service for purposes of Section 822.201, Government Code,
294	294	as amended by this Act, regardless of the date the payment was made.
295	295	SECTION 10. (a) Except as provided by Subsection (b) of
296	296	this section, this Act applies beginning with the 2024-2025 school
297	297	year.
298	298	(b) Section 48.311, Education Code, as added by this Act,
299	299	and Section 49.1541, Education Code, as added by this Act, apply
300	300	beginning with the 2023-2024 school year.
301	301	SECTION 11. This Act takes effect immediately if it
302	302	receives a vote of two-thirds of all the members elected to each
303	303	house, as provided by Section 39, Article III, Texas Constitution.
304	304	If this Act does not receive the vote necessary for immediate
305	305	effect, this Act takes effect on the 91st day after the last day of
306	306	the legislative session.