Texas 2023 - 88th 4th C.S.

Texas Senate Bill SB37 Compare Versions

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1	1	By: Menéndez, et al. S.B. No. 37
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	Relating to the public school finance system.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	ARTICLE 1. BASIC ALLOTMENT
9	9	SECTION 1.01. Section 48.051, Education Code, is amended by
10	10	amending Subsection (a) and adding Subsection (a-1) to read as
11	11	follows:
12	12	(a) Subject to adjustment under Subsection (a-1), for [For]
13	13	each student in average daily attendance, not including the time
14	14	students spend each day in special education programs in an
15	15	instructional arrangement other than mainstream or career and
16	16	technology education programs, for which an additional allotment is
17	17	made under Subchapter C, a district is entitled to an allotment
18	18	equal to the lesser of $7,365 [$6,160] or the amount that results
19	19	from the following formula:
20	20	A = $7,365 [$6,160] X TR/MCR
21	21	where:
22	22	"A" is the allotment to which a district is entitled;
23	23	"TR" is the district's tier one maintenance and operations
24	24	tax rate, as provided by Section 45.0032; and
25	25	"MCR" is the district's maximum compressed tax rate, as
26	26	determined under Section 48.2551.
27	27	(a-1) Beginning with the 2024-2025 school year, the basic
28	28	allotment provided to a district under Subsection (a) or (b) is
29	29	adjusted annually to increase the allotment by the amount that
30	30	results from applying the inflation rate, as determined by the
31	31	comptroller on the basis of changes in the Consumer Price Index for
32	32	All Urban Consumers published by the Bureau of Labor Statistics of
33	33	the United States Department of Labor, to the allotment for the
34	34	preceding school year.
35	35	SECTION 1.02. Section 48.202(a-1), Education Code, is
36	36	amended to read as follows:
37	37	(a-1) For purposes of Subsection (a), the dollar amount
38	38	guaranteed level of state and local funds per weighted student per
39	39	cent of tax effort ("GL") for a school district is:
40	40	(1) the greater of the amount of district tax revenue per
41	41	weighted student per cent of tax effort available to a school
42	42	district at the 96th percentile of wealth per weighted student or
43	43	the amount that results from multiplying 7,365 [6,160], or the
44	44	greater amount provided under Section 48.051(a-1) or (b)
45	45	[48.051(b)], if applicable, by 0.016, for the first eight cents by
46	46	which the district's maintenance and operations tax rate exceeds
47	47	the district's tier one tax rate; and
48	48	(2) subject to Subsection (f), the amount that results from
49	49	multiplying $7,365 [$6,160], or the greater amount provided under
50	50	Section 48.051(a-1) or (b) [48.051(b)], if applicable, by 0.008,
51	51	for the district's maintenance and operations tax effort that
52	52	exceeds the amount of tax effort described by Subdivision (1).
53	53	ARTICLE 2. ENROLLMENT-BASED FUNDING
54	54	SECTION 2.01. Section 48.005, Education Code, is amended to
55	55	read as follows:
56	56	Sec. 48.005. AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
57	57	In this chapter, average enrollment [daily attendance] is:
58	58	(1) the average number of students enrolled in the
59	59	school district during a school year [quotient of the sum of
60	60	attendance for each day of the minimum number of days of instruction
61	61	as described under Section 25.081(a) divided by the minimum number
62	62	of days of instruction;
63	63	[(2) for a district that operates under a flexible
64	64	year program under Section 29.0821, the quotient of the sum of
65	65	attendance for each actual day of instruction as permitted by
66	66	Section 29.0821(b)(1) divided by the number of actual days of
67	67	instruction as permitted by Section 29.0821(b)(1);
68	68	[(3) for a district that operates under a flexible
69	69	school day program under Section 29.0822, the average daily
70	70	attendance as calculated by the commissioner in accordance with
71	71	Sections 29.0822(d) and (d-1)]; or
72	72	(2) [(4)] for a district that operates a half-day
73	73	program or a full-day program under Section 29.153(c), one-half of
74	74	the average enrollment [daily attendance] calculated under
75	75	Subdivision (1).
76	76	(b) A school district that experiences a decline of two
77	77	percent or more in average enrollment [daily attendance] shall be
78	78	funded on the basis of:
79	79	(1) the actual average enrollment [daily attendance]
80	80	of the preceding school year, if the decline is the result of the
81	81	closing or reduction in personnel of a military base; or
82	82	(2) subject to Subsection (e), an average enrollment
83	83	[daily attendance] not to exceed 98 percent of the actual average
84	84	enrollment [daily attendance] of the preceding school year, if the
85	85	decline is not the result of the closing or reduction in personnel
86	86	of a military base.
87	87	(c) The commissioner shall adjust the average enrollment
88	88	[daily attendance] of a school district that has a significant
89	89	percentage of students who are migratory children as defined by 20
90	90	U.S.C. Section 6399.
91	91	(d) The commissioner may adjust the average enrollment
92	92	[daily attendance] of a school district in which a disaster, flood,
93	93	extreme weather condition, fuel curtailment, or other calamity has
94	94	a significant effect on the district's enrollment [attendance]. In
95	95	addition to providing the adjustment for the amount of
96	96	instructional days during the semester in which the calamity first
97	97	occurred, an adjustment under this section may only be provided
98	98	based on a particular calamity for an additional amount of
99	99	instructional days equivalent to one school year. The commissioner
100	100	may divide the adjustment between two consecutive school years.
101	101	(e) For each school year, the commissioner shall adjust the
102	102	average enrollment [daily attendance] of school districts that are
103	103	entitled to funding on the basis of an adjusted average enrollment
104	104	[daily attendance] under Subsection (b)(2) so that:
105	105	(1) all districts are funded on the basis of the same
106	106	percentage of the preceding year's actual average enrollment [daily
107	107	attendance]; and
108	108	(2) the total cost to the state does not exceed the
109	109	amount specifically appropriated for that year for purposes of
110	110	Subsection (b)(2).
111	111	(f) An open-enrollment charter school is not entitled to
112	112	funding based on an adjustment under Subsection (b)(2).
113	113	(g) If a student may receive course credit toward the
114	114	student's high school academic requirements and toward the
115	115	student's higher education academic requirements for a single
116	116	course, including a course provided under Section 28.009 by a
117	117	public institution of higher education, the time during which the
118	118	student attends the course shall be counted as part of the minimum
119	119	number of instructional hours required for a student to be
120	120	considered a full-time student in average enrollment [daily
121	121	attendance] for purposes of this section.
122	122	[(g-1) The commissioner shall adopt rules to calculate
123	123	average daily attendance for students participating in a blended
124	124	learning program in which classroom instruction is supplemented
125	125	with applied workforce learning opportunities, including
126	126	participation of students in internships, externships, and
127	127	apprenticeships.]
128	128	(h) Time [Subject to rules adopted by the commissioner under
129	129	Section 48.007(b), time] that a student participates in an
130	130	off-campus instructional program provided by an entity other than a
131	131	school district or open-enrollment charter school and approved by
132	132	the commissioner in accordance with commissioner rule [under
133	133	Section 48.007(a)] shall be counted as part of the minimum number of
134	134	instructional hours required for a student to be considered a
135	135	full-time student in average enrollment [daily attendance] for
136	136	purposes of this section.
137	137	(i) A district or a charter school operating under Chapter
138	138	12 that operates a prekindergarten program is eligible to receive
139	139	one-half of average enrollment [daily attendance] under Subsection
140	140	(a) if the district's or charter school's prekindergarten program
141	141	provides at least 32,400 minutes of instructional time to students.
142	142	(j) A district or charter school is eligible to earn full
143	143	average enrollment [daily attendance] under Subsection (a) if the
144	144	district or school provides at least 43,200 minutes of
145	145	instructional time to students enrolled in:
146	146	(1) a dropout recovery school or program operating
147	147	under Section 12.1141(c) or Section 39.0548;
148	148	(2) an alternative education program operating under
149	149	Section 37.008;
150	150	(3) a school program located at a day treatment
151	151	facility, residential treatment facility, psychiatric hospital, or
152	152	medical hospital;
153	153	(4) a school program offered at a correctional
154	154	facility; or
155	155	(5) a school operating under Subchapter G, Chapter 12.
156	156	(k) A charter school operating under a charter granted under
157	157	Chapter 12 before January 1, 2015, is eligible to earn full average
158	158	enrollment [daily attendance] under Subsection (a), as that
159	159	subsection existed immediately before January 1, 2015, for:
160	160	(1) all campuses of the charter school operating
161	161	before January 1, 2015; and
162	162	(2) any campus or site expansion approved on or after
163	163	January 1, 2015, provided that the charter school received an
164	164	academic accountability performance rating of C or higher, and the
165	165	campus or site expansion is approved by the commissioner.
166	166	(l) A school district campus or charter school described by
167	167	Subsection (j) may operate more than one program and be eligible for
168	168	full average enrollment [daily attendance] for each program if the
169	169	programs operated by the district campus or charter school satisfy
170	170	all applicable state and federal requirements.
171	171	(m) The commissioner shall adopt rules necessary to
172	172	implement this section, including rules that:
173	173	(1) determine the method to calculate the average
174	174	number of students enrolled in a school district during a school
175	175	year;
176	176	(2) establish the minimum amount of instructional time
177	177	per day that allows a school district or charter school to be
178	178	eligible for full average enrollment [daily attendance], which may
179	179	differ based on the instructional program offered by the district
180	180	or charter school;
181	181	(3) [(2)] establish the requirements necessary for a
182	182	school district or charter school to be eligible for one-half of
183	183	average enrollment [daily attendance], which may differ based on
184	184	the instructional program offered by the district or charter
185	185	school;
186	186	(4) [(3)] proportionally reduce the average
187	187	enrollment [daily attendance] for a school district if any campus
188	188	or instructional program in the district provides fewer than the
189	189	required minimum minutes of instruction to students; and
190	190	(5) [(4)] allow a grade or course repeated under
191	191	Section 28.02124 to qualify for average enrollment [daily
192	192	attendance] even if the student previously passed or earned credit
193	193	for the grade or course, if the grade or course would otherwise be
194	194	eligible.
195	195	(n) To assist school districts in implementing this section
196	196	as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
197	197	Session, 2017, the commissioner may waive a requirement of this
198	198	section or adopt rules to implement this section.
199	199	SECTION 2.02. Section 7.062(a), Education Code, is amended
200	200	to read as follows:
201	201	(a) In this section, "wealth per student" means a school
202	202	district's taxable value of property as determined under Subchapter
203	203	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
204	204	divided by the district's average enrollment [daily attendance] as
205	205	determined under Section 48.005.
206	206	SECTION 2.03. Section 11.052(f), Education Code, is amended
207	207	to read as follows:
208	208	(f) If single-member trustee districts are adopted or
209	209	approved as provided by this section, the board shall divide the
210	210	school district into the appropriate number of trustee districts,
211	211	based on the number of members of the board that are to be elected
212	212	from single-member trustee districts, and shall number each trustee
213	213	district. The trustee districts must be compact and contiguous and
214	214	must be as nearly as practicable of equal population. In a district
215	215	with 150,000 or more students in average enrollment [daily
216	216	attendance], the boundary of a trustee district may not cross a
217	217	county election precinct boundary except at a point at which the
218	218	boundary of the school district crosses the county election
219	219	precinct boundary. Trustee districts must be drawn not later than
220	220	the 90th day before the date of the first election of trustees from
221	221	those districts.
222	222	SECTION 2.04. Sections 12.106(a), (a-2), and (d), Education
223	223	Code, are amended to read as follows:
224	224	(a) A charter holder is entitled to receive for the
225	225	open-enrollment charter school funding under Chapter 48 equal to
226	226	the amount of funding per student in weighted average enrollment
227	227	[daily attendance], excluding the adjustment under Section 48.052,
228	228	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
229	229	enrichment funding under Section 48.202(a), to which the charter
230	230	holder would be entitled for the school under Chapter 48 if the
231	231	school were a school district without a tier one local share for
232	232	purposes of Section 48.266.
233	233	(a-2) In addition to the funding provided by Subsection (a),
234	234	a charter holder is entitled to receive for the open-enrollment
235	235	charter school an allotment per student in average enrollment
236	236	[daily attendance] in an amount equal to the difference between:
237	237	(1) the product of:
238	238	(A) the quotient of:
239	239	(i) the total amount of funding provided to
240	240	eligible school districts under Section 48.101(b) or (c); and
241	241	(ii) the total number of students in
242	242	average enrollment [daily attendance] in school districts that
243	243	receive an allotment under Section 48.101(b) or (c); and
244	244	(B) the sum of one and the quotient of:
245	245	(i) the total number of students in average
246	246	enrollment [daily attendance] in school districts that receive an
247	247	allotment under Section 48.101(b) or (c); and
248	248	(ii) the total number of students in
249	249	average enrollment [daily attendance] in school districts
250	250	statewide; and
251	251	(2) $125.
252	252	(d) Subject to Subsection (e), in addition to other amounts
253	253	provided by this section, a charter holder is entitled to receive,
254	254	for the open-enrollment charter school, funding per student in
255	255	average enrollment [daily attendance] in an amount equal to the
256	256	guaranteed level of state and local funds per student per cent of
257	257	tax effort under Section 46.032(a) multiplied by the lesser of:
258	258	(1) the state average interest and sinking fund tax
259	259	rate imposed by school districts for the current year; or
260	260	(2) a rate that would result in a total amount to which
261	261	charter schools are entitled under this subsection for the current
262	262	year equal to $60 million.
263	263	SECTION 2.05. Sections 12.263(a), (b), and (c), Education
264	264	Code, are amended to read as follows:
265	265	(a) Except as otherwise provided by this section, funding
266	266	for an adult education program operated under a charter granted
267	267	under this subchapter is an amount per participant through the
268	268	Foundation School Program equal to the amount of state funding per
269	269	student in weighted average enrollment [daily attendance] that
270	270	would be allocated under the Foundation School Program for the
271	271	student's attendance at an open-enrollment charter school in
272	272	accordance with Section 12.106.
273	273	(b) For purposes of determining the average enrollment
274	274	[daily attendance] of an adult education program operated under a
275	275	charter granted under this subchapter, a student is considered to
276	276	be in average enrollment [daily attendance, with a 100 percent
277	277	attendance rate,] for:
278	278	(1) all of the instructional days of the school year,
279	279	if the student is enrolled for at least 75 percent of the school
280	280	year;
281	281	(2) half of the instructional days of the school year,
282	282	if the student is enrolled for at least 50 percent but less than 75
283	283	percent of the school year;
284	284	(3) a quarter of the instructional days of the school
285	285	year, if the student is enrolled for at least 25 percent but less
286	286	than 50 percent of the school year; or
287	287	(4) one-tenth of the instructional days of the school
288	288	year, if the student is enrolled for at least 10 percent but less
289	289	than 25 percent of the school year.
290	290	(c) A student enrolled in an adult education program
291	291	operated under a charter granted under this subchapter for less
292	292	than 10 percent of a school year may not be counted toward the adult
293	293	education program's average enrollment [daily attendance] for that
294	294	school year.
295	295	SECTION 2.06. Section 13.051(c), Education Code, is amended
296	296	to read as follows:
297	297	(c) Territory that does not have residents may be detached
298	298	from a school district and annexed to another school district if:
299	299	(1) the total taxable value of the property in the
300	300	territory according to the most recent certified appraisal roll for
301	301	each school district is not greater than:
302	302	(A) five percent of the district's taxable value
303	303	of all property in that district as determined under Subchapter M,
304	304	Chapter 403, Government Code; and
305	305	(B) $5,000 property value per student in average
306	306	enrollment [daily attendance] as determined under Section 48.005;
307	307	and
308	308	(2) the school district from which the property will
309	309	be detached does not own any real property located in the territory.
310	310	SECTION 2.07. Section 13.102, Education Code, is amended to
311	311	read as follows:
312	312	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
313	313	REQUIREMENTS. A new district may not be created with an area of
314	314	less than nine square miles or fewer than 8,000 students in average
315	315	enrollment [daily attendance], and a district may not be reduced to
316	316	an area of less than nine square miles or fewer than 8,000 students
317	317	in average enrollment [daily attendance].
318	318	SECTION 2.08. Section 13.283, Education Code, is amended to
319	319	read as follows:
320	320	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
321	321	shall be reduced in direct proportion to any reduction in the
322	322	average enrollment [daily attendance] as determined under Section
323	323	48.005 of the reorganized school district for the preceding year.
324	324	SECTION 2.09. Section 19.009(d-2), Education Code, is
325	325	amended to read as follows:
326	326	(d-2) Beginning with the 2009-2010 school year, the
327	327	district shall increase the monthly salary of each classroom
328	328	teacher, full-time speech pathologist, full-time librarian,
329	329	full-time school counselor certified under Subchapter B, Chapter
330	330	21, and full-time school nurse employed by the district by the
331	331	greater of:
332	332	(1) $80; or
333	333	(2) the maximum uniform amount that, when combined
334	334	with any resulting increases in the amount of contributions made by
335	335	the district for social security coverage for the specified
336	336	employees or by the district on behalf of the specified employees
337	337	under Section 825.405, Government Code, may be provided using an
338	338	amount equal to the product of $60 multiplied by the number of
339	339	students in weighted average enrollment [daily attendance] in the
340	340	district during the 2009-2010 school year.
341	341	SECTION 2.10. Section 25.038, Education Code, is amended to
342	342	read as follows:
343	343	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
344	344	receiving school district may charge a tuition fee to the extent
345	345	that the district's actual expenditure per student in average
346	346	enrollment [daily attendance], as determined by its board of
347	347	trustees, exceeds the sum the district benefits from state aid
348	348	sources as provided by Section 25.037. However, unless a tuition
349	349	fee is prescribed and set out in a transfer agreement before its
350	350	execution by the parties, an increase in tuition charge may not be
351	351	made for the year of that transfer that exceeds the tuition charge,
352	352	if any, of the preceding school year.
353	353	SECTION 2.11. Section 25.045(c), Education Code, is amended
354	354	to read as follows:
355	355	(c) A student who transfers to another school district under
356	356	this section may not be charged tuition. The student is included in
357	357	the average enrollment [daily attendance] of the district in which
358	358	the student attends school.
359	359	SECTION 2.12. Sections 25.081(e) and (f), Education Code,
360	360	are amended to read as follows:
361	361	(e) A school district or education program is exempt from
362	362	the minimum minutes of operation requirement if the district's or
363	363	program's average enrollment [daily attendance] is calculated
364	364	under Section 48.005(j).
365	365	(f) The commissioner may proportionally reduce the amount
366	366	of funding a district receives under Chapter 46, 48, or 49 and the
367	367	average enrollment [daily attendance] calculation for the district
368	368	if the district operates on a calendar that provides fewer minutes
369	369	of operation than required under Subsection (a).
370	370	SECTION 2.13. Section 25.087(d), Education Code, is amended
371	371	to read as follows:
372	372	(d) A student whose absence is excused under Subsection (b),
373	373	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
374	374	penalized for that absence and shall be counted as if the student
375	375	attended school for purposes of funding under Chapter 48
376	376	[calculating the average daily attendance of students in the school
377	377	district]. A student whose absence is excused under Subsection (b),
378	378	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
379	379	reasonable time to make up school work missed on those days. If the
380	380	student satisfactorily completes the school work, the day of
381	381	absence shall be counted as a day of compulsory attendance.
382	382	SECTION 2.14. Section 25.111, Education Code, is amended to
383	383	read as follows:
384	384	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
385	385	Section 25.112, each school district must employ a sufficient
386	386	number of teachers certified under Subchapter B, Chapter 21, to
387	387	maintain an average ratio of not less than one teacher for each 20
388	388	students in average enrollment [daily attendance].
389	389	SECTION 2.15. Sections 25.112(a) and (b), Education Code,
390	390	are amended to read as follows:
391	391	(a) Except as otherwise authorized by this section, a school
392	392	district may not enroll more than 22 students in a prekindergarten,
393	393	kindergarten, first, second, third, or fourth grade class. That
394	394	limitation does not apply during:
395	395	(1) any 12-week period of the school year selected by
396	396	the district, in the case of a district whose average enrollment
397	397	[daily attendance] is adjusted under Section 48.005(c); or
398	398	(2) the last 12 weeks of any school year in the case of
399	399	any other district.
400	400	(b) Not later than the 30th day after the first day of the
401	401	12-week period for which a district whose average enrollment [daily
402	402	attendance] is adjusted under Section 48.005(c) is claiming an
403	403	exemption under Subsection (a), the district shall notify the
404	404	commissioner in writing that the district is claiming an exemption
405	405	for the period stated in the notice.
406	406	SECTION 2.16. Section 29.008(b), Education Code, is amended
407	407	to read as follows:
408	408	(b) Except as provided by Subsection (c), costs of an
409	409	approved contract for residential placement may be paid from a
410	410	combination of federal, state, and local funds. The local share of
411	411	the total contract cost for each student is that portion of the
412	412	local tax effort that exceeds the district's local fund assignment
413	413	under Section 48.256, divided by the average enrollment [daily
414	414	attendance] in the district. If the contract involves a private
415	415	facility, the state share of the total contract cost is that amount
416	416	remaining after subtracting the local share. If the contract
417	417	involves a public facility, the state share is that amount
418	418	remaining after subtracting the local share from the portion of the
419	419	contract that involves the costs of instructional and related
420	420	services. For purposes of this subsection, "local tax effort"
421	421	means the total amount of money generated by taxes imposed for debt
422	422	service and maintenance and operation less any amounts paid into a
423	423	tax increment fund under Chapter 311, Tax Code.
424	424	SECTION 2.17. Section 29.014(b), Education Code, is amended
425	425	to read as follows:
426	426	(b) A school district to which this section applies may
427	427	operate an extended year program for a period not to exceed 45 days.
428	428	[The district's average daily attendance shall be computed for the
429	429	regular school year plus the extended year.]
430	430	SECTION 2.18. Section 29.081(f), Education Code, is amended
431	431	to read as follows:
432	432	(f) The commissioner shall include a student who
433	433	successfully completes a course offered through a program under
434	434	Subsection (e) in the computation of the district's or school's
435	435	average enrollment [daily attendance] for funding purposes. [For a
436	436	student who successfully completes a remote course offered through
437	437	the program, the commissioner shall include the student in the
438	438	computation of the district's or school's average daily attendance
439	439	with an attendance rate equal to:
440	440	[(1) the district's or school's average attendance
441	441	rate for students successfully completing a course offered in
442	442	person under the program; or
443	443	[(2) if the district or school does not offer courses
444	444	in person under the program, the statewide average attendance rate
445	445	for students successfully completing a course offered in person
446	446	under a program under Subsection (e).]
447	447	SECTION 2.19. Section 29.0822(d), Education Code, is
448	448	amended to read as follows:
449	449	(d) The commissioner may adopt rules for the administration
450	450	of this section, including rules establishing application
451	451	requirements. [Subject to Subsection (d-1), the commissioner shall
452	452	calculate average daily attendance for students served under this
453	453	section. The commissioner shall allow accumulations of hours of
454	454	instruction for students whose schedule would not otherwise allow
455	455	full state funding. Funding under this subsection shall be
456	456	determined based on the number of instructional days in the school
457	457	district calendar and a seven-hour school day, but attendance may
458	458	be cumulated over a school year, including any summer or vacation
459	459	session. The attendance of students who accumulate less than the
460	460	number of attendance hours required under this subsection shall be
461	461	proportionately reduced for funding purposes. The commissioner
462	462	may:
463	463	[(1) set maximum funding amounts for an individual
464	464	course under this section; and
465	465	[(2) limit funding for the attendance of a student
466	466	described by Subsection (a)(3) in a course under this section to
467	467	funding only for the attendance necessary for the student to earn
468	468	class credit that, as a result of attendance requirements under
469	469	Section 25.092, the student would not otherwise be able to receive
470	470	without retaking the class.]
471	471	SECTION 2.20. Section 29.184(b), Education Code, is amended
472	472	to read as follows:
473	473	(b) A student who attends career and technology classes at
474	474	another school under a contract authorized by Subsection (a) is
475	475	included in the average enrollment [daily attendance] of the
476	476	district in which the student is regularly enrolled.
477	477	SECTION 2.21. Sections 29.203(a) and (c), Education Code,
478	478	are amended to read as follows:
479	479	(a) A student who under this subchapter uses a public
480	480	education grant to attend a public school in a school district other
481	481	than the district in which the student resides is included in the
482	482	average enrollment [daily attendance] of the district in which the
483	483	student attends school.
484	484	(c) A school district is entitled to additional facilities
485	485	assistance under Section 48.301 if the district agrees to:
486	486	(1) accept a number of students using public education
487	487	grants that is at least one percent of the district's average
488	488	enrollment [daily attendance] for the preceding school year; and
489	489	(2) provide services to each student until the student
490	490	either voluntarily decides to attend a school in a different
491	491	district or graduates from high school.
492	492	SECTION 2.22. Section 29.403(b), Education Code, is amended
493	493	to read as follows:
494	494	(b) A student who is enrolled in a program under this
495	495	subchapter is included in determining the average enrollment [daily
496	496	attendance] under Section 48.005 of the partnering school district.
497	497	SECTION 2.23. Section 29.457(a), Education Code, is amended
498	498	to read as follows:
499	499	(a) In addition to other funding to which a school district
500	500	is entitled under this code, each district in which alleged
501	501	offender residents attend school is entitled to an annual allotment
502	502	of $5,100 for each resident in average enrollment [daily
503	503	attendance] or a different amount for any year provided by
504	504	appropriation.
505	505	SECTION 2.24. Section 29.912(c), Education Code, is amended
506	506	to read as follows:
507	507	(c) The program must enable an eligible school district that
508	508	has fewer than 1,600 students in average enrollment [daily
509	509	attendance] to partner with at least one other school district
510	510	located within a distance of 100 miles to offer a broader array of
511	511	robust college and career pathways. Each partnership must:
512	512	(1) offer college and career pathways that align with
513	513	regional labor market projections for high-wage, high-demand
514	514	careers; and
515	515	(2) be managed by a coordinating entity that:
516	516	(A) has or will have at the time students are
517	517	served under the partnership the capacity to effectively coordinate
518	518	the partnership;
519	519	(B) has entered into a performance agreement
520	520	approved by the board of trustees of each partnering school
521	521	district that confers on the coordinating entity the same authority
522	522	with respect to pathways offered under the partnership provided to
523	523	an entity that contracts to operate a district campus under Section
524	524	11.174;
525	525	(C) is an eligible entity as defined by Section
526	526	12.101(a); and
527	527	(D) has on the entity's governing board as either
528	528	voting or ex officio members, or has on an advisory body,
529	529	representatives of each partnering school district and members of
530	530	regional higher education and workforce organizations.
531	531	SECTION 2.25. Section 30.003(b), Education Code, is amended
532	532	to read as follows:
533	533	(b) If the student is admitted to the school for a full-time
534	534	program for the equivalent of two long semesters, the district's
535	535	share of the cost is an amount equal to the dollar amount of
536	536	maintenance and debt service taxes imposed by the district for that
537	537	year divided by the district's average enrollment [daily
538	538	attendance] for the preceding year.
539	539	SECTION 2.26. Section 30.102(a), Education Code, is amended
540	540	to read as follows:
541	541	(a) The Texas Juvenile Justice Department is entitled to
542	542	receive the state available school fund apportionment based on the
543	543	average enrollment [daily attendance] in the department's
544	544	educational programs of students who are at least three years of age
545	545	and not older than 21 years of age.
546	546	SECTION 2.27. Section 30A.151(f), Education Code, is
547	547	amended to read as follows:
548	548	(f) For a full-time electronic course program offered
549	549	through the state virtual school network for a grade level at or
550	550	above grade level three but not above grade level eight, a school
551	551	district or open-enrollment charter school is entitled to receive
552	552	federal, state, and local funding for a student enrolled in the
553	553	program in an amount equal to the funding the district or school
554	554	would otherwise receive for a student enrolled in the district or
555	555	school. [The district or school may calculate the average daily
556	556	attendance of a student enrolled in the program based on:
557	557	[(1) hours of contact with the student;
558	558	[(2) the student's successful completion of a course;
559	559	or
560	560	[(3) a method approved by the commissioner.]
561	561	SECTION 2.28. Section 33.157, Education Code, is amended to
562	562	read as follows:
563	563	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
564	564	secondary school receiving funding under Section 33.156 shall
565	565	participate in a local Communities In Schools program if the number
566	566	of students enrolled in the school who are at risk of dropping out
567	567	of school is equal to at least 10 percent of the number of students
568	568	in average enrollment [daily attendance] at the school, as
569	569	determined by the agency.
570	570	SECTION 2.29. Section 37.0061, Education Code, is amended
571	571	to read as follows:
572	572	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
573	573	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
574	574	education services to pre-adjudicated and post-adjudicated
575	575	students who are confined by court order in a juvenile residential
576	576	facility operated by a juvenile board is entitled to count such
577	577	students in the district's average enrollment [daily attendance]
578	578	for purposes of receipt of state funds under the Foundation School
579	579	Program. If the district has a local revenue level greater than the
580	580	guaranteed local revenue level but less than the level established
581	581	under Section 48.257, the district in which the student is enrolled
582	582	on the date a court orders the student to be confined to a juvenile
583	583	residential facility shall transfer to the district providing
584	584	education services an amount equal to the difference between the
585	585	average Foundation School Program costs per student of the district
586	586	providing education services and the sum of the state aid and the
587	587	money from the available school fund received by the district that
588	588	is attributable to the student for the portion of the school year
589	589	for which the district provides education services to the student.
590	590	SECTION 2.30. Section 37.008(f), Education Code, is amended
591	591	to read as follows:
592	592	(f) A student removed to a disciplinary alternative
593	593	education program is counted in computing the average enrollment
594	594	[daily attendance] of students in the district [for the student's
595	595	time in actual attendance in the program].
596	596	SECTION 2.31. Section 37.011(a-4), Education Code, is
597	597	amended to read as follows:
598	598	(a-4) A school district located in a county considered to be
599	599	a county with a population of 125,000 or less under Subsection (a-3)
600	600	shall provide educational services to a student who is expelled
601	601	from school under this chapter. The district is entitled to count
602	602	the student in the district's average enrollment [daily attendance]
603	603	for purposes of receipt of state funds under the Foundation School
604	604	Program. An educational placement under this section may include:
605	605	(1) the district's disciplinary alternative education
606	606	program; or
607	607	(2) a contracted placement with:
608	608	(A) another school district;
609	609	(B) an open-enrollment charter school;
610	610	(C) an institution of higher education;
611	611	(D) an adult literacy council; or
612	612	(E) a community organization that can provide an
613	613	educational program that allows the student to complete the credits
614	614	required for high school graduation.
615	615	SECTION 2.32. Sections 39.027(c) and (f), Education Code,
616	616	are amended to read as follows:
617	617	(c) The commissioner shall develop and adopt a process for
618	618	reviewing the exemption process of a school district or shared
619	619	services arrangement that gives an exemption under Subsection
620	620	(a)(1) as follows:
621	621	(1) to more than five percent of the students in the
622	622	special education program, in the case of a district or shared
623	623	services arrangement with an average enrollment [daily attendance]
624	624	of at least 1,600;
625	625	(2) to more than 10 percent of the students in the
626	626	special education program, in the case of a district or shared
627	627	services arrangement with an average enrollment [daily attendance]
628	628	of at least 190 and not more than 1,599; or
629	629	(3) to the greater of more than 10 percent of the
630	630	students in the special education program or to at least five
631	631	students in the special education program, in the case of a district
632	632	or shared services arrangement with an average enrollment [daily
633	633	attendance] of not more than 189.
634	634	(f) In this section, "average enrollment [daily
635	635	attendance]" is computed in the manner provided by Section 48.005.
636	636	SECTION 2.33. Section 39.053(g-1), Education Code, is
637	637	amended to read as follows:
638	638	(g-1) In computing dropout and completion rates such as high
639	639	school graduation rates under Subsection (c)(1)(B)(ix), the
640	640	commissioner shall exclude:
641	641	(1) students who are ordered by a court to attend a
642	642	high school equivalency certificate program but who have not yet
643	643	earned a high school equivalency certificate;
644	644	(2) students who were previously reported to the state
645	645	as dropouts, including a student who is reported as a dropout,
646	646	reenrolls, and drops out again, regardless of the number of times of
647	647	reenrollment and dropping out;
648	648	(3) students in attendance who are not in membership
649	649	for purposes of average enrollment [daily attendance];
650	650	(4) students whose initial enrollment in a school in
651	651	the United States in grades 7 through 12 was as an unschooled asylee
652	652	or refugee as defined by Section 39.027(a-1);
653	653	(5) students who are detained at a county
654	654	pre-adjudication or post-adjudication juvenile detention facility
655	655	and:
656	656	(A) in the district exclusively as a function of
657	657	having been detained at the facility but are otherwise not students
658	658	of the district in which the facility is located; or
659	659	(B) provided services by an open-enrollment
660	660	charter school exclusively as the result of having been detained at
661	661	the facility;
662	662	(6) students who are incarcerated in state jails and
663	663	federal penitentiaries as adults and as persons certified to stand
664	664	trial as adults; and
665	665	(7) students who have suffered a condition, injury, or
666	666	illness that requires substantial medical care and leaves the
667	667	student:
668	668	(A) unable to attend school; and
669	669	(B) assigned to a medical or residential
670	670	treatment facility.
671	671	SECTION 2.34. Section 39.262(a), Education Code, is amended
672	672	to read as follows:
673	673	(a) The governor may present a financial award to the
674	674	schools or districts that the commissioner determines have
675	675	demonstrated the highest levels of sustained success or the
676	676	greatest improvement in achieving the education goals. For each
677	677	student in average enrollment [daily attendance], each of those
678	678	schools or districts is entitled to an amount set for the award for
679	679	which the school or district is selected by the commissioner,
680	680	subject to any limitation set by the commissioner on the total
681	681	amount that may be awarded to a school or district.
682	682	SECTION 2.35. Section 43.001(c), Education Code, is amended
683	683	to read as follows:
684	684	(c) The term "scholastic population" in Subsection (b) or
685	685	any other law governing the apportionment, distribution, and
686	686	transfer of the available school fund means all students of school
687	687	age [enrolled] in average enrollment [daily attendance] the
688	688	preceding school year in the public elementary and high school
689	689	grades of school districts within or under the jurisdiction of a
690	690	county of this state.
691	691	SECTION 2.36. Section 44.004(c), Education Code, is amended
692	692	to read as follows:
693	693	(c) The notice of public meeting to discuss and adopt the
694	694	budget and the proposed tax rate may not be smaller than one-quarter
695	695	page of a standard-size or a tabloid-size newspaper, and the
696	696	headline on the notice must be in 18-point or larger type. Subject
697	697	to Subsection (d), the notice must:
698	698	(1) contain a statement in the following form:
699	699	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
700	700	"The (name of school district) will hold a public meeting at
701	701	(time, date, year) in (name of room, building, physical location,
702	702	city, state). The purpose of this meeting is to discuss the school
703	703	district's budget that will determine the tax rate that will be
704	704	adopted. Public participation in the discussion is invited." The
705	705	statement of the purpose of the meeting must be in bold type. In
706	706	reduced type, the notice must state: "The tax rate that is
707	707	ultimately adopted at this meeting or at a separate meeting at a
708	708	later date may not exceed the proposed rate shown below unless the
709	709	district publishes a revised notice containing the same information
710	710	and comparisons set out below and holds another public meeting to
711	711	discuss the revised notice." In addition, in reduced type, the
712	712	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
713	713	your local property tax database on which you can easily access
714	714	information regarding your property taxes, including information
715	715	about proposed tax rates and scheduled public hearings of each
716	716	entity that taxes your property.";
717	717	(2) contain a section entitled "Comparison of Proposed
718	718	Budget with Last Year's Budget," which must show the difference,
719	719	expressed as a percent increase or decrease, as applicable, in the
720	720	amounts budgeted for the preceding fiscal year and the amount
721	721	budgeted for the fiscal year that begins in the current tax year for
722	722	each of the following:
723	723	(A) maintenance and operations;
724	724	(B) debt service; and
725	725	(C) total expenditures;
726	726	(3) contain a section entitled "Total Appraised Value
727	727	and Total Taxable Value," which must show the total appraised value
728	728	and the total taxable value of all property and the total appraised
729	729	value and the total taxable value of new property taxable by the
730	730	district in the preceding tax year and the current tax year as
731	731	calculated under Section 26.04, Tax Code;
732	732	(4) contain a statement of the total amount of the
733	733	outstanding and unpaid bonded indebtedness of the school district;
734	734	(5) contain a section entitled "Comparison of Proposed
735	735	Rates with Last Year's Rates," which must:
736	736	(A) show in rows the tax rates described by
737	737	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
738	738	property, for columns entitled "Maintenance & Operations,"
739	739	"Interest & Sinking Fund," and "Total," which is the sum of
740	740	"Maintenance & Operations" and "Interest & Sinking Fund":
741	741	(i) the school district's "Last Year's
742	742	Rate";
743	743	(ii) the "Rate to Maintain Same Level of
744	744	Maintenance & Operations Revenue & Pay Debt Service," which:
745	745	(a) in the case of "Maintenance &
746	746	Operations," is the tax rate that, when applied to the current
747	747	taxable value for the district, as certified by the chief appraiser
748	748	under Section 26.01, Tax Code, and as adjusted to reflect changes
749	749	made by the chief appraiser as of the time the notice is prepared,
750	750	would impose taxes in an amount that, when added to state funds to
751	751	be distributed to the district under Chapter 48, would provide the
752	752	same amount of maintenance and operations taxes and state funds
753	753	distributed under Chapter 48 per student in average enrollment
754	754	[daily attendance] for the applicable school year that was
755	755	available to the district in the preceding school year; and
756	756	(b) in the case of "Interest & Sinking
757	757	Fund," is the tax rate that, when applied to the current taxable
758	758	value for the district, as certified by the chief appraiser under
759	759	Section 26.01, Tax Code, and as adjusted to reflect changes made by
760	760	the chief appraiser as of the time the notice is prepared, and when
761	761	multiplied by the district's anticipated collection rate, would
762	762	impose taxes in an amount that, when added to state funds to be
763	763	distributed to the district under Chapter 46 and any excess taxes
764	764	collected to service the district's debt during the preceding tax
765	765	year but not used for that purpose during that year, would provide
766	766	the amount required to service the district's debt; and
767	767	(iii) the "Proposed Rate";
768	768	(B) contain fourth and fifth columns aligned with
769	769	the columns required by Paragraph (A) that show, for each row
770	770	required by Paragraph (A):
771	771	(i) the "Local Revenue per Student," which
772	772	is computed by multiplying the district's total taxable value of
773	773	property, as certified by the chief appraiser for the applicable
774	774	school year under Section 26.01, Tax Code, and as adjusted to
775	775	reflect changes made by the chief appraiser as of the time the
776	776	notice is prepared, by the total tax rate, and dividing the product
777	777	by the number of students in average enrollment [daily attendance]
778	778	in the district for the applicable school year; and
779	779	(ii) the "State Revenue per Student," which
780	780	is computed by determining the amount of state aid received or to be
781	781	received by the district under Chapters 43, 46, and 48 and dividing
782	782	that amount by the number of students in average enrollment [daily
783	783	attendance] in the district for the applicable school year; and
784	784	(C) contain an asterisk after each calculation
785	785	for "Interest & Sinking Fund" and a footnote to the section that, in
786	786	reduced type, states "The Interest & Sinking Fund tax revenue is
787	787	used to pay for bonded indebtedness on construction, equipment, or
788	788	both. The bonds, and the tax rate necessary to pay those bonds, were
789	789	approved by the voters of this district.";
790	790	(6) contain a section entitled "Comparison of Proposed
791	791	Levy with Last Year's Levy on Average Residence," which must:
792	792	(A) show in rows the information described by
793	793	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
794	794	entitled "Last Year" and "This Year":
795	795	(i) "Average Market Value of Residences,"
796	796	determined using the same group of residences for each year;
797	797	(ii) "Average Taxable Value of Residences,"
798	798	determined after taking into account the limitation on the
799	799	appraised value of residences under Section 23.23, Tax Code, and
800	800	after subtracting all homestead exemptions applicable in each year,
801	801	other than exemptions available only to disabled persons or persons
802	802	65 years of age or older or their surviving spouses, and using the
803	803	same group of residences for each year;
804	804	(iii) "Last Year's Rate Versus Proposed
805	805	Rate per $100 Value"; and
806	806	(iv) "Taxes Due on Average Residence,"
807	807	determined using the same group of residences for each year; and
808	808	(B) contain the following information: "Increase
809	809	(Decrease) in Taxes" expressed in dollars and cents, which is
810	810	computed by subtracting the "Taxes Due on Average Residence" for
811	811	the preceding tax year from the "Taxes Due on Average Residence" for
812	812	the current tax year;
813	813	(7) contain the following statement in bold print:
814	814	"Under state law, the dollar amount of school taxes imposed on the
815	815	residence of a person 65 years of age or older or of the surviving
816	816	spouse of such a person, if the surviving spouse was 55 years of age
817	817	or older when the person died, may not be increased above the amount
818	818	paid in the first year after the person turned 65, regardless of
819	819	changes in tax rate or property value.";
820	820	(8) contain the following statement in bold print:
821	821	"Notice of Voter-Approval Rate: The highest tax rate the district
822	822	can adopt before requiring voter approval at an election is (the
823	823	school district voter-approval rate determined under Section
824	824	26.08, Tax Code). This election will be automatically held if the
825	825	district adopts a rate in excess of the voter-approval rate of (the
826	826	school district voter-approval rate)."; and
827	827	(9) contain a section entitled "Fund Balances," which
828	828	must include the estimated amount of interest and sinking fund
829	829	balances and the estimated amount of maintenance and operation or
830	830	general fund balances remaining at the end of the current fiscal
831	831	year that are not encumbered with or by corresponding debt
832	832	obligation, less estimated funds necessary for the operation of the
833	833	district before the receipt of the first payment under Chapter 48 in
834	834	the succeeding school year.
835	835	SECTION 2.37. Sections 45.0011(a), (d), and (e), Education
836	836	Code, are amended to read as follows:
837	837	(a) This section applies only to an independent school
838	838	district that, at the time of the issuance of obligations and
839	839	execution of credit agreements under this section, has:
840	840	(1) at least 2,000 students in average enrollment
841	841	[daily attendance]; or
842	842	(2) a combined aggregate principal amount of at least
843	843	$50 million of outstanding bonds and voted but unissued bonds.
844	844	(d) A district may not issue bonds to which this section
845	845	applies in an amount greater than the greater of:
846	846	(1) 25 percent of the sum of:
847	847	(A) the aggregate principal amount of all
848	848	district debt payable from ad valorem taxes that is outstanding at
849	849	the time the bonds are issued; and
850	850	(B) the aggregate principal amount of all bonds
851	851	payable from ad valorem taxes that have been authorized but not
852	852	issued;
853	853	(2) $25 million, in a district that has at least 3,500
854	854	but not more than 15,000 students in average enrollment [daily
855	855	attendance]; or
856	856	(3) $50 million, in a district that has more than
857	857	15,000 students in average enrollment [daily attendance].
858	858	(e) In this section, average enrollment [daily attendance]
859	859	is determined in the manner provided by Section 48.005.
860	860	SECTION 2.38. Section 45.006(a), Education Code, is amended
861	861	to read as follows:
862	862	(a) This section applies only to a school district that:
863	863	(1) has an average enrollment [daily attendance] of
864	864	less than 10,000; and
865	865	(2) is located in whole or part in a municipality with
866	866	a population of less than 25,000 that is located in a county with a
867	867	population of 200,000 or more bordering another county with a
868	868	population of 2.8 million or more.
869	869	SECTION 2.39. Section 45.105(d), Education Code, is amended
870	870	to read as follows:
871	871	(d) An independent school district that has in its limits a
872	872	municipality with a population of 150,000 or more or that contains
873	873	at least 170 square miles, has $850 million or more assessed value
874	874	of taxable property on the most recent approved tax roll and has a
875	875	growth in average enrollment [daily attendance] of 11 percent or
876	876	more for each of the preceding five years as determined by the
877	877	agency may, in buying school sites or additions to school sites and
878	878	in building school buildings, issue and deliver negotiable or
879	879	nonnegotiable notes representing all or part of the cost to the
880	880	school district of the land or building. The district may secure
881	881	the notes by a vendor's lien or deed of trust lien against the land
882	882	or building. By resolution or order of the governing body made at
883	883	or before the delivery of the notes, the district may set aside and
884	884	appropriate as a trust fund, and the sole and only fund, for the
885	885	payment of the principal of and interest on the notes that part of
886	886	the local school funds, levied and collected by the school district
887	887	in that year or subsequent years, as the governing body determines.
888	888	The aggregate amount of local school funds set aside in or for any
889	889	subsequent year for the retirement of the notes may not exceed, in
890	890	any one subsequent year, 10 percent of the local school funds
891	891	collected during that year. The district may issue the notes only
892	892	if approved by majority vote of the qualified voters voting in an
893	893	election conducted in the manner provided by Section 45.003 for
894	894	approval of bonds.
895	895	SECTION 2.40. Section 46.003(a), Education Code, is amended
896	896	to read as follows:
897	897	(a) For each year, except as provided by Sections 46.005 and
898	898	46.006, a school district is guaranteed a specified amount per
899	899	student in state and local funds for each cent of tax effort, up to
900	900	the maximum rate under Subsection (b), to pay the principal of and
901	901	interest on eligible bonds issued to construct, acquire, renovate,
902	902	or improve an instructional facility. The amount of state support
903	903	is determined by the formula:
904	904	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
905	905	where:
906	906	"FYA" is the guaranteed facilities yield amount of state
907	907	funds allocated to the district for the year;
908	908	"FYL" is the dollar amount guaranteed level of state and
909	909	local funds per student per cent of tax effort, which is $35 or a
910	910	greater amount for any year provided by appropriation;
911	911	"AE" ["ADA"] is the greater of the number of students in
912	912	average enrollment [daily attendance], as determined under Section
913	913	48.005, in the district or 400;
914	914	"BTR" is the district's bond tax rate for the current year,
915	915	which is determined by dividing the amount budgeted by the district
916	916	for payment of eligible bonds by the quotient of the district's
917	917	taxable value of property as determined under Subchapter M, Chapter
918	918	403, Government Code, or, if applicable, Section 48.258, divided by
919	919	100; and
920	920	"DPV" is the district's taxable value of property as
921	921	determined under Subchapter M, Chapter 403, Government Code, or, if
922	922	applicable, Section 48.258.
923	923	SECTION 2.41. Section 46.005, Education Code, is amended to
924	924	read as follows:
925	925	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
926	926	guaranteed amount of state and local funds for a new project that a
927	927	district may be awarded in any state fiscal biennium under Section
928	928	46.003 for a school district may not exceed the lesser of:
929	929	(1) the amount the actual debt service payments the
930	930	district makes in the biennium in which the bonds are issued; or
931	931	(2) the greater of:
932	932	(A) $100,000; or
933	933	(B) the product of the number of students in
934	934	average enrollment [daily attendance] in the district multiplied by
935	935	$250.
936	936	SECTION 2.42. Section 46.006(g), Education Code, is amended
937	937	to read as follows:
938	938	(g) In this section, "wealth per student" means a school
939	939	district's taxable value of property as determined under Subchapter
940	940	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
941	941	divided by the district's average enrollment [daily attendance] as
942	942	determined under Section 48.005.
943	943	SECTION 2.43. Section 46.032(a), Education Code, is amended
944	944	to read as follows:
945	945	(a) Each school district is guaranteed a specified amount
946	946	per student in state and local funds for each cent of tax effort to
947	947	pay the principal of and interest on eligible bonds. The amount of
948	948	state support, subject only to the maximum amount under Section
949	949	46.034, is determined by the formula:
950	950	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
951	951	where:
952	952	"EDA" is the amount of state funds to be allocated to the
953	953	district for assistance with existing debt;
954	954	"EDGL" is the dollar amount guaranteed level of state and
955	955	local funds per student per cent of tax effort, which is the lesser
956	956	of:
957	957	(1) $40 or a greater amount for any year provided by
958	958	appropriation; or
959	959	(2) the amount that would result in a total additional
960	960	amount of state funds under this subchapter for the current year
961	961	equal to $60 million in excess of the state funds to which school
962	962	districts would have been entitled under this section if the
963	963	guaranteed level amount were $35;
964	964	"AE" ["ADA"] is the number of students in average enrollment
965	965	[daily attendance], as determined under Section 48.005, in the
966	966	district;
967	967	"EDTR" is the existing debt tax rate of the district, which is
968	968	determined by dividing the amount budgeted by the district for
969	969	payment of eligible bonds by the quotient of the district's taxable
970	970	value of property as determined under Subchapter M, Chapter 403,
971	971	Government Code, or, if applicable, under Section 48.258, divided
972	972	by 100; and
973	973	"DPV" is the district's taxable value of property as
974	974	determined under Subchapter M, Chapter 403, Government Code, or, if
975	975	applicable, under Section 48.258.
976	976	SECTION 44. Sections 48.0051(a) and (b), Education Code,
977	977	are amended to read as follows:
978	978	(a) The [Subject to Subsection (a-1), the] commissioner
979	979	shall adjust the average enrollment [daily attendance] of a school
980	980	district or open-enrollment charter school under Section 48.005 in
981	981	the manner provided by Subsection (b) if the district or school:
982	982	(1) provides the minimum number of minutes of
983	983	operational and instructional time required under Section 25.081
984	984	and commissioner rules adopted under that section over at least 180
985	985	days of instruction; and
986	986	(2) offers an additional 30 days of half-day
987	987	instruction for students enrolled in prekindergarten through fifth
988	988	grade.
989	989	(b) For a school district or open-enrollment charter school
990	990	described by Subsection (a), the commissioner shall increase the
991	991	average enrollment [daily attendance] of the district or school
992	992	under Section 48.005 by the amount equal to one-sixth [that results
993	993	from the quotient] of the enrollment [sum of attendance] by
994	994	students described by Subsection (a)(2) in [for each of] the 30
995	995	additional instructional days of half-day instruction [that are
996	996	provided divided by 180].
997	997	SECTION 2.45. Section 48.006, Education Code, is amended to
998	998	read as follows:
999	999	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
1000	1000	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
1001	1001	average enrollment [daily attendance] of a school district all or
1002	1002	part of which is located in an area declared a disaster area by the
1003	1003	governor under Chapter 418, Government Code, if the district
1004	1004	experiences a decline in average enrollment [daily attendance] that
1005	1005	is reasonably attributable to the impact of the disaster.
1006	1006	(b) The adjustment must be sufficient to ensure that the
1007	1007	district receives funding comparable to the funding that the
1008	1008	district would have received if the decline in average enrollment
1009	1009	[daily attendance] reasonably attributable to the impact of the
1010	1010	disaster had not occurred.
1011	1011	(c) The commissioner may make the adjustment under this
1012	1012	section for the two-year period following the date of the
1013	1013	governor's initial proclamation or executive order declaring the
1014	1014	state of disaster.
1015	1015	(d) Section 48.005(b)(2) does not apply to a district that
1016	1016	receives an adjustment under this section.
1017	1017	(e) A district that receives an adjustment under this
1018	1018	section may not receive any additional adjustment under Section
1019	1019	48.005(d) for the decline in average enrollment [daily attendance]
1020	1020	on which the adjustment under this section is based.
1021	1021	(f) For purposes of this title, a district's adjusted
1022	1022	average enrollment [daily attendance] under this section is
1023	1023	considered to be the district's average enrollment [daily
1024	1024	attendance] as determined under Section 48.005.
1025	1025	SECTION 2.46. Sections 48.010(a) and (b), Education Code,
1026	1026	are amended to read as follows:
1027	1027	(a) Not later than July 1 of each year, the commissioner
1028	1028	shall determine for each school district whether the estimated
1029	1029	amount of state and local funding per student in weighted average
1030	1030	enrollment [daily attendance] to be provided to the district under
1031	1031	the Foundation School Program for maintenance and operations for
1032	1032	the following school year is less than the amount provided to the
1033	1033	district for the 2010-2011 school year. If the amount estimated to
1034	1034	be provided is less, the commissioner shall certify the percentage
1035	1035	decrease in funding to be provided to the district.
1036	1036	(b) In making the determinations regarding funding levels
1037	1037	required by Subsection (a), the commissioner shall:
1038	1038	(1) make adjustments as necessary to reflect changes
1039	1039	in a school district's maintenance and operations tax rate;
1040	1040	(2) for a district required to reduce its local
1041	1041	revenue level under Section 48.257, base the determinations on the
1042	1042	district's net funding levels after deducting any amounts required
1043	1043	to be expended by the district to comply with Chapter 49; and
1044	1044	(3) determine a district's weighted average enrollment
1045	1045	[daily attendance] in accordance with this chapter as it existed on
1046	1046	January 1, 2011.
1047	1047	SECTION 2.47. Sections 48.051(a) and (c), Education Code,
1048	1048	are amended to read as follows:
1049	1049	(a) For each student in average enrollment [daily
1050	1050	attendance], not including the time students spend each day in
1051	1051	special education programs in an instructional arrangement other
1052	1052	than mainstream or career and technology education programs, for
1053	1053	which an additional allotment is made under Subchapter C, a
1054	1054	district is entitled to an allotment equal to the lesser of $7,365
1055	1055	[$6,160] or the amount that results from the following formula:
1056	1056	A = $7,365 [$6,160] X TR/MCR
1057	1057	where:
1058	1058	"A" is the allotment to which a district is entitled;
1059	1059	"TR" is the district's tier one maintenance and operations
1060	1060	tax rate, as provided by Section 45.0032; and
1061	1061	"MCR" is the district's maximum compressed tax rate, as
1062	1062	determined under Section 48.2551.
1063	1063	(c) During any school year for which the maximum amount of
1064	1064	the basic allotment provided under Subsection (a) or (b) is greater
1065	1065	than the maximum amount provided for the preceding school year, a
1066	1066	school district must use at least 30 percent of the amount, if the
1067	1067	amount is greater than zero, that equals the product of the average
1068	1068	enrollment [daily attendance] of the district multiplied by the
1069	1069	amount of the difference between the district's funding under this
1070	1070	chapter per student in average enrollment [daily attendance] for
1071	1071	the current school year and the preceding school year to provide
1072	1072	compensation increases to full-time district employees other than
1073	1073	administrators as follows:
1074	1074	(1) 75 percent must be used to increase the
1075	1075	compensation paid to classroom teachers, full-time librarians,
1076	1076	full-time school counselors certified under Subchapter B, Chapter
1077	1077	21, and full-time school nurses, prioritizing differentiated
1078	1078	compensation for classroom teachers with more than five years of
1079	1079	experience; and
1080	1080	(2) 25 percent may be used as determined by the
1081	1081	district to increase compensation paid to full-time district
1082	1082	employees.
1083	1083	SECTION 2.48. Sections 48.052(a) and (c), Education Code,
1084	1084	are amended to read as follows:
1085	1085	(a) Notwithstanding Section 48.051, a school district that
1086	1086	has fewer than 130 students in average enrollment [daily
1087	1087	attendance] shall be provided a basic allotment on the basis of 130
1088	1088	students in average enrollment [daily attendance] if it offers a
1089	1089	kindergarten through grade 12 program and has preceding or current
1090	1090	year's average enrollment [daily attendance] of at least 90
1091	1091	students or is 30 miles or more by bus route from the nearest high
1092	1092	school district. A district offering a kindergarten through grade 8
1093	1093	program whose preceding or current year's average enrollment [daily
1094	1094	attendance] was at least 50 students or which is 30 miles or more by
1095	1095	bus route from the nearest high school district shall be provided a
1096	1096	basic allotment on the basis of 75 students in average enrollment
1097	1097	[daily attendance]. An average enrollment [daily attendance] of 60
1098	1098	students shall be the basis of providing the basic allotment if a
1099	1099	district offers a kindergarten through grade 6 program and has
1100	1100	preceding or current year's average enrollment [daily attendance]
1101	1101	of at least 40 students or is 30 miles or more by bus route from the
1102	1102	nearest high school district.
1103	1103	(c) Notwithstanding Subsection (a) or Section 48.051, a
1104	1104	school district to which this subsection applies, as provided by
1105	1105	Subsection (b), that has fewer than 130 students in average
1106	1106	enrollment [daily attendance] shall be provided a basic allotment
1107	1107	on the basis of 130 students in average enrollment [daily
1108	1108	attendance] if it offers a kindergarten through grade four program
1109	1109	and has preceding or current year's average enrollment [daily
1110	1110	attendance] of at least 75 students or is 30 miles or more by bus
1111	1111	route from the nearest high school district.
1112	1112	SECTION 2.49. Section 48.101, Education Code, is amended to
1113	1113	read as follows:
1114	1114	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1115	1115	Small and mid-sized districts are entitled to an annual allotment
1116	1116	in accordance with this section. In this section:
1117	1117	(1) "AA" is the district's annual allotment per
1118	1118	student in average enrollment [daily attendance];
1119	1119	(2) "AE" ["ADA"] is the number of students in average
1120	1120	enrollment [daily attendance] for which the district is entitled to
1121	1121	an allotment under Section 48.051; and
1122	1122	(3) "BA" is the basic allotment determined under
1123	1123	Section 48.051.
1124	1124	(b) A school district that has fewer than 1,600 students in
1125	1125	average enrollment [daily attendance] is entitled to an annual
1126	1126	allotment for each student in average enrollment [daily attendance]
1127	1127	based on the following formula:
1128	1128	AA = ((1,600 - AE [ADA]) X .0004) X BA
1129	1129	(c) A school district that offers a kindergarten through
1130	1130	grade 12 program and has less than 5,000 students in average
1131	1131	enrollment [daily attendance] is entitled to an annual allotment
1132	1132	for each student in average enrollment [daily attendance] based on
1133	1133	the formula, of the following formulas, that results in the
1134	1134	greatest annual allotment:
1135	1135	(1) the formula in Subsection (b), if the district is
1136	1136	eligible for that formula; or
1137	1137	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1138	1138	(d) Instead of the allotment under Subsection (b) or (c)(1),
1139	1139	a school district that has fewer than 300 students in average
1140	1140	enrollment [daily attendance] and is the only school district
1141	1141	located in and operating in a county is entitled to an annual
1142	1142	allotment for each student in average enrollment [daily attendance]
1143	1143	based on the following formula:
1144	1144	AA = ((1,600 - AE [ADA]) X .00047) X BA
1145	1145	SECTION 2.50. Sections 48.102(a) and (j), Education Code,
1146	1146	are amended to read as follows:
1147	1147	(a) For each student in average enrollment [daily
1148	1148	attendance] in a special education program under Subchapter A,
1149	1149	Chapter 29, in a mainstream instructional arrangement, a school
1150	1150	district is entitled to an annual allotment equal to the basic
1151	1151	allotment, or, if applicable, the sum of the basic allotment and the
1152	1152	allotment under Section 48.101 to which the district is entitled,
1153	1153	multiplied by 1.15. For each full-time equivalent student in
1154	1154	average enrollment [daily attendance] in a special education
1155	1155	program under Subchapter A, Chapter 29, in an instructional
1156	1156	arrangement other than a mainstream instructional arrangement, a
1157	1157	district is entitled to an annual allotment equal to the basic
1158	1158	allotment, or, if applicable, the sum of the basic allotment and the
1159	1159	allotment under Section 48.101 to which the district is entitled,
1160	1160	multiplied by a weight determined according to instructional
1161	1161	arrangement as follows:
1162	1162	Homebound5.0
1163	1163	Hospital class3.0
1164	1164	Speech therapy5.0
1165	1165	Resource room3.0
1166	1166	Self-contained, mild and moderate,
1167	1167	regular campus3.0
1168	1168	Self-contained, severe,
1169	1169	regular campus3.0
1170	1170	Off home campus2.7
1171	1171	Nonpublic day school1.7
1172	1172	Vocational adjustment class2.3
1173	1173	(j) A school district that provides an extended year program
1174	1174	required by federal law for special education students who may
1175	1175	regress is entitled to receive funds in an amount equal to 75
1176	1176	percent, or a lesser percentage determined by the commissioner, of
1177	1177	the basic allotment, or, if applicable, the sum of the basic
1178	1178	allotment and the allotment under Section 48.101 to which the
1179	1179	district is entitled for each full-time equivalent student in
1180	1180	average enrollment [daily attendance], multiplied by the amount
1181	1181	designated for the student's instructional arrangement under this
1182	1182	section[, for each day the program is provided divided by the number
1183	1183	of days in the minimum school year]. The total amount of state
1184	1184	funding for extended year services under this section may not
1185	1185	exceed $10 million per year. A school district may use funds
1186	1186	received under this section only in providing an extended year
1187	1187	program.
1188	1188	SECTION 2.51. Section 48.105(a), Education Code, is amended
1189	1189	to read as follows:
1190	1190	(a) For each student in average enrollment [daily
1191	1191	attendance] in a bilingual education or special language program
1192	1192	under Subchapter B, Chapter 29, a district is entitled to an annual
1193	1193	allotment equal to the basic allotment multiplied by:
1194	1194	(1) for an emergent bilingual student, as defined by
1195	1195	Section 29.052:
1196	1196	(A) 0.1; or
1197	1197	(B) 0.15 if the student is in a bilingual
1198	1198	education program using a dual language immersion/one-way or
1199	1199	two-way program model; and
1200	1200	(2) for a student not described by Subdivision (1),
1201	1201	0.05 if the student is in a bilingual education program using a dual
1202	1202	language immersion/two-way program model.
1203	1203	SECTION 2.52. Sections 48.106(a) and (a-1), Education Code,
1204	1204	are amended to read as follows:
1205	1205	(a) For each full-time equivalent student in average
1206	1206	enrollment [daily attendance] in an approved career and technology
1207	1207	education program in grades 7 through 12, a district is entitled to
1208	1208	an annual allotment equal to the basic allotment, or, if
1209	1209	applicable, the sum of the basic allotment and the allotment under
1210	1210	Section 48.101 to which the district is entitled, multiplied by:
1211	1211	(1) 1.1 for a full-time equivalent student in career
1212	1212	and technology education courses not in an approved program of
1213	1213	study;
1214	1214	(2) 1.28 for a full-time equivalent student in levels
1215	1215	one and two career and technology education courses in an approved
1216	1216	program of study, as identified by the agency; and
1217	1217	(3) 1.47 for a full-time equivalent student in levels
1218	1218	three and four career and technology education courses in an
1219	1219	approved program of study, as identified by the agency.
1220	1220	(a-1) In addition to the amounts under Subsection (a), for
1221	1221	each student in average enrollment [daily attendance], a district
1222	1222	is entitled to $50 for each of the following in which the student is
1223	1223	enrolled:
1224	1224	(1) a campus designated as a P-TECH school under
1225	1225	Section 29.556; or
1226	1226	(2) a campus that is a member of the New Tech Network
1227	1227	and that focuses on project-based learning and work-based
1228	1228	education.
1229	1229	SECTION 2.53. Section 48.107(a), Education Code, is amended
1230	1230	to read as follows:
1231	1231	(a) Except as provided by Subsection (b), for each student
1232	1232	in average enrollment [daily attendance] who is using a public
1233	1233	education grant under Subchapter G, Chapter 29, to attend school in
1234	1234	a district other than the district in which the student resides, the
1235	1235	district in which the student attends school is entitled to an
1236	1236	annual allotment equal to the basic allotment multiplied by a
1237	1237	weight of 0.1.
1238	1238	SECTION 2.54. Section 48.108(a), Education Code, is amended
1239	1239	to read as follows:
1240	1240	(a) For each student in average enrollment [daily
1241	1241	attendance] in kindergarten through third grade, a school district
1242	1242	is entitled to an annual allotment equal to the basic allotment
1243	1243	multiplied by 0.1 if the student is:
1244	1244	(1) educationally disadvantaged; or
1245	1245	(2) an emergent bilingual student, as defined by
1246	1246	Section 29.052, and is in a bilingual education or special language
1247	1247	program under Subchapter B, Chapter 29.
1248	1248	SECTION 2.55. Section 48.109(c), Education Code, is amended
1249	1249	to read as follows:
1250	1250	(c) Not more than five percent of a district's students in
1251	1251	average enrollment [daily attendance] are eligible for funding
1252	1252	under this section.
1253	1253	SECTION 2.56. Section 48.115(a), Education Code, is amended
1254	1254	to read as follows:
1255	1255	(a) Except as provided by Subsection (a-1), a school
1256	1256	district is entitled to an annual allotment equal to the sum of the
1257	1257	following amounts or a greater amount provided by appropriation:
1258	1258	(1) $10 for each student in average enrollment [daily
1259	1259	attendance], plus $1 for each student in average enrollment [daily
1260	1260	attendance] per every $50 by which the district's maximum basic
1261	1261	allotment under Section 48.051 exceeds $7,365 [$6,160], prorated as
1262	1262	necessary; and
1263	1263	(2) $15,000 per campus.
1264	1264	SECTION 2.57. Section 48.118(a), Education Code, is amended
1265	1265	to read as follows:
1266	1266	(a) For each full-time equivalent student in average
1267	1267	enrollment [daily attendance] in grades 9 through 12 in a college or
1268	1268	career pathway offered through a partnership under the Rural
1269	1269	Pathway Excellence Partnership (R-PEP) program under Section
1270	1270	29.912, a school district is entitled to an allotment equal to the
1271	1271	basic allotment, or, if applicable, the sum of the basic allotment
1272	1272	and the allotment under Section 48.101 to which the district is
1273	1273	entitled, multiplied by:
1274	1274	(1) 1.15 if the student is educationally
1275	1275	disadvantaged; or
1276	1276	(2) 1.11 if the student is not educationally
1277	1277	disadvantaged.
1278	1278	SECTION 2.58. Sections 48.152(d) and (e), Education Code,
1279	1279	are amended to read as follows:
1280	1280	(d) For the first school year in which students attend a new
1281	1281	instructional facility, a school district is entitled to an
1282	1282	allotment of $1,000 for each student in average enrollment [daily
1283	1283	attendance] at the facility. For the second school year in which
1284	1284	students attend that instructional facility, a school district is
1285	1285	entitled to an allotment of $1,000 for each additional student in
1286	1286	average enrollment [daily attendance] at the facility.
1287	1287	(e) For purposes of this section, the number of additional
1288	1288	students in average enrollment [daily attendance] at a facility is
1289	1289	the difference between the number of students in average enrollment
1290	1290	[daily attendance] in the current year at that facility and the
1291	1291	number of students in average enrollment [daily attendance] at that
1292	1292	facility in the preceding year.
1293	1293	SECTION 2.59. Section 48.153, Education Code, is amended to
1294	1294	read as follows:
1295	1295	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1296	1296	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1297	1297	charter school is entitled to $275 for each student in average
1298	1298	enrollment [daily attendance] who:
1299	1299	(1) resides in a residential placement facility; or
1300	1300	(2) is at a district or school or a campus of the
1301	1301	district or school that is designated as a dropout recovery school
1302	1302	under Section 39.0548.
1303	1303	SECTION 2.60. Section 48.202(a), Education Code, is amended
1304	1304	to read as follows:
1305	1305	(a) Each school district is guaranteed a specified amount
1306	1306	per weighted student in state and local funds for each cent of tax
1307	1307	effort over that required for the district's local fund assignment
1308	1308	up to the maximum level specified in this subchapter. The amount of
1309	1309	state support, subject only to the maximum amount under Section
1310	1310	48.203, is determined by the formula:
1311	1311	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1312	1312	where:
1313	1313	"GYA" is the guaranteed yield amount of state funds to be
1314	1314	allocated to the district;
1315	1315	"GL" is the dollar amount guaranteed level of state and local
1316	1316	funds per weighted student per cent of tax effort, which is an
1317	1317	amount described by Subsection (a-1) or a greater amount for any
1318	1318	year provided by appropriation;
1319	1319	"WAE" ["WADA"] is the number of students in weighted average
1320	1320	enrollment [daily attendance], which is calculated by dividing the
1321	1321	sum of the school district's allotments under Subchapters B and C by
1322	1322	the basic allotment for the applicable year;
1323	1323	"DTR" is the district enrichment tax rate of the school
1324	1324	district, which is determined by subtracting the amounts specified
1325	1325	by Subsection (b) from the total amount of maintenance and
1326	1326	operations taxes collected by the school district for the
1327	1327	applicable school year and dividing the difference by the quotient
1328	1328	of the district's taxable value of property as determined under
1329	1329	Subchapter M, Chapter 403, Government Code, or, if applicable,
1330	1330	under Section 48.258 or by the quotient of the value of "DPV" as
1331	1331	determined under Section 48.256(d) if that subsection applies to
1332	1332	the district, divided by 100; and
1333	1333	"LR" is the local revenue, which is determined by multiplying
1334	1334	"DTR" by the quotient of the district's taxable value of property as
1335	1335	determined under Subchapter M, Chapter 403, Government Code, or, if
1336	1336	applicable, under Section 48.258 or by the quotient of the value of
1337	1337	"DPV" as determined under Section 48.256(d) if that subsection
1338	1338	applies to the district, divided by 100.
1339	1339	SECTION 2.61. Section 48.252(b), Education Code, is amended
1340	1340	to read as follows:
1341	1341	(b) Notwithstanding any other provision of this chapter or
1342	1342	Chapter 49, a school district subject to this section is entitled to
1343	1343	receive for each student in average enrollment [daily attendance]
1344	1344	at the campus or program described by Subsection (a) an amount
1345	1345	equivalent to the difference, if the difference results in
1346	1346	increased funding, between:
1347	1347	(1) the amount described by Section 12.106; and
1348	1348	(2) the amount to which the district would be entitled
1349	1349	under this chapter.
1350	1350	SECTION 2.62. Section 48.2642(a), Education Code, is
1351	1351	amended to read as follows:
1352	1352	(a) Notwithstanding any other provision of this chapter,
1353	1353	the commissioner shall count toward a school district's or
1354	1354	open-enrollment charter school's average enrollment [daily
1355	1355	attendance] under Section 48.005 each student who graduates early
1356	1356	from high school in the district or school under the Texas First
1357	1357	Early High School Completion Program established under Section
1358	1358	28.0253 for the period in which the student is enrolled at an
1359	1359	eligible institution using state credit awarded under the Texas
1360	1360	First Scholarship Program established under Subchapter K-1,
1361	1361	Chapter 56, based on a 100 percent attendance rate.
1362	1362	SECTION 2.63. Section 48.273(a)(4), Education Code, is
1363	1363	amended to read as follows:
1364	1364	(4) "Wealth per student" means the taxable property
1365	1365	values reported by the comptroller to the commissioner under
1366	1366	Section 48.256 divided by the number of students in average
1367	1367	enrollment [daily attendance].
1368	1368	SECTION 2.64. Section 48.277(a), Education Code, is amended
1369	1369	to read as follows:
1370	1370	(a) A school district or open-enrollment charter school is
1371	1371	entitled to receive an annual allotment for each student in average
1372	1372	enrollment [daily attendance] in the amount equal to the
1373	1373	difference, if the difference is greater than zero, that results
1374	1374	from subtracting the total maintenance and operations revenue per
1375	1375	student in average enrollment [daily attendance] for the current
1376	1376	school year from the lesser of:
1377	1377	(1) 103 percent of the district's or school's total
1378	1378	maintenance and operations revenue per student in average
1379	1379	enrollment [daily attendance] for the 2019-2020 school year that
1380	1380	the district or school would have received under former Chapters 41
1381	1381	and 42, as those chapters existed on January 1, 2019; or
1382	1382	(2) 128 percent of the statewide average amount of
1383	1383	maintenance and operations revenue per student in average
1384	1384	enrollment [daily attendance] that would have been provided for the
1385	1385	2019-2020 school year under former Chapters 41 and 42, as those
1386	1386	chapters existed on January 1, 2019.
1387	1387	SECTION 2.65. Section 49.001(2), Education Code, is amended
1388	1388	to read as follows:
1389	1389	(2) "Weighted average enrollment [daily attendance]"
1390	1390	has the meaning assigned by Section 48.202.
1391	1391	SECTION 2.66. Section 49.002, Education Code, is amended to
1392	1392	read as follows:
1393	1393	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1394	1394	district with a local revenue level in excess of entitlement may
1395	1395	take any combination of the following actions to reduce the
1396	1396	district's revenue level:
1397	1397	(1) consolidation with another district as provided by
1398	1398	Subchapter B;
1399	1399	(2) detachment of territory as provided by Subchapter
1400	1400	C;
1401	1401	(3) purchase of average enrollment [daily attendance]
1402	1402	credit as provided by Subchapter D;
1403	1403	(4) education of nonresident students as provided by
1404	1404	Subchapter E; or
1405	1405	(5) tax base consolidation with another district as
1406	1406	provided by Subchapter F.
1407	1407	SECTION 2.67. Section 49.003, Education Code, is amended to
1408	1408	read as follows:
1409	1409	Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND
1410	1410	NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
1411	1411	determining whether a school district has a local revenue level in
1412	1412	excess of entitlement, the commissioner shall use:
1413	1413	(1) the district's final weighted average enrollment
1414	1414	[daily attendance]; and
1415	1415	(2) the amount of attendance credit a district
1416	1416	purchases under Subchapter D or the number of nonresident students
1417	1417	a district educates under Subchapter E for a school year.
1418	1418	SECTION 2.68. Section 49.158(a), Education Code, is amended
1419	1419	to read as follows:
1420	1420	(a) Sections 49.154 and 49.157 apply only to a district
1421	1421	that:
1422	1422	(1) executes an agreement to purchase attendance
1423	1423	credit necessary to reduce the district's local revenue level to
1424	1424	the level established under Section 48.257;
1425	1425	(2) executes an agreement to purchase attendance
1426	1426	credit and an agreement under Subchapter E to contract for the
1427	1427	education of nonresident students who transfer to and are educated
1428	1428	in the district but who are not charged tuition; or
1429	1429	(3) executes an agreement under Subchapter E to
1430	1430	contract for the education of nonresident students:
1431	1431	(A) to an extent that does not provide more than
1432	1432	10 percent of the reduction in local revenue required for the
1433	1433	district to achieve a local revenue level that is equal to or less
1434	1434	than the level established under Section 48.257; and
1435	1435	(B) under which all revenue paid by the district
1436	1436	to other districts, in excess of the reduction in state aid that
1437	1437	results from counting the weighted average enrollment [daily
1438	1438	attendance] of the students served in the contracting district, is
1439	1439	required to be used for funding a consortium of at least three
1440	1440	districts in a county with a population of less than 40,000 that is
1441	1441	formed to support a technology initiative.
1442	1442	SECTION 2.69. Section 49.201, Education Code, is amended to
1443	1443	read as follows:
1444	1444	Sec. 49.201. AGREEMENT. The board of trustees of a
1445	1445	district with a local revenue level in excess of entitlement may
1446	1446	execute an agreement to educate the students of another district in
1447	1447	a number that, when the weighted average enrollment [daily
1448	1448	attendance] of the students served is added to the weighted average
1449	1449	enrollment [daily attendance] of the contracting district, is
1450	1450	sufficient, in combination with any other actions taken under this
1451	1451	chapter, to reduce the district's local revenue level to a level
1452	1452	that is equal to or less than the level established under Section
1453	1453	48.257. The agreement is not effective unless the commissioner
1454	1454	certifies that the transfer of weighted average enrollment [daily
1455	1455	attendance] will not result in any of the contracting districts'
1456	1456	local revenue level being greater than the level established under
1457	1457	Section 48.257 and that the agreement requires an expenditure per
1458	1458	student in weighted average enrollment [daily attendance] that is
1459	1459	at least equal to the amount per student in weighted average
1460	1460	enrollment [daily attendance] required under Section 49.153.
1461	1461	SECTION 2.70. Section 49.203, Education Code, is amended to
1462	1462	read as follows:
1463	1463	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1464	1464	purposes of Chapter 48, students served under an agreement under
1465	1465	this subchapter are counted only in the weighted average enrollment
1466	1466	[daily attendance] of the district providing the services, except
1467	1467	that students served under an agreement authorized by Section
1468	1468	49.205 are counted in a manner determined by the commissioner.
1469	1469	SECTION 2.71. Section 49.257(b), Education Code, is amended
1470	1470	to read as follows:
1471	1471	(b) Each component district shall bear a share of the costs
1472	1472	of assessing and collecting taxes in proportion to the component
1473	1473	district's share of weighted average enrollment [daily attendance]
1474	1474	in the consolidated taxing district.
1475	1475	SECTION 2.72. Section 49.258, Education Code, is amended to
1476	1476	read as follows:
1477	1477	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1478	1478	district shall distribute maintenance tax revenue to the component
1479	1479	districts on the basis of the number of students in weighted average
1480	1480	enrollment [daily attendance] in the component districts.
1481	1481	SECTION 2.73. Sections 49.305(c) and (d), Education Code,
1482	1482	are amended to read as follows:
1483	1483	(c) If the detachment of whole parcels or items of property
1484	1484	as provided by Subsection (a) would result in a district's local
1485	1485	revenue level that is less than the level established under Section
1486	1486	48.257 by more than the product of $10,000 multiplied by weighted
1487	1487	average enrollment [daily attendance], the commissioner may not
1488	1488	detach the last parcel or item of property and shall detach the next
1489	1489	one or more parcels or items of property in descending order of
1490	1490	taxable value that would result in the school district having a
1491	1491	local revenue level that is equal to or less than the level
1492	1492	established under Section 48.257 by not more than the product of
1493	1493	$10,000 multiplied by weighted average enrollment [daily
1494	1494	attendance].
1495	1495	(d) Notwithstanding Subsections (a), (b), and (c), the
1496	1496	commissioner may detach only a portion of a parcel or item of
1497	1497	property if:
1498	1498	(1) it is not possible under this subchapter to reduce
1499	1499	the district's local revenue level to a level that is equal to or
1500	1500	less than the level established under Section 48.257 unless some or
1501	1501	all of the parcel or item of property is detached and the detachment
1502	1502	of the whole parcel or item would result in the district from which
1503	1503	it is detached having a local revenue level that is less than the
1504	1504	level established under Section 48.257 by more than the product of
1505	1505	$10,000 multiplied by weighted average enrollment [daily
1506	1506	attendance]; or
1507	1507	(2) the commissioner determines that a partial
1508	1508	detachment of that parcel or item of property is preferable to the
1509	1509	detachment of one or more other parcels or items having a lower
1510	1510	taxable value in order to minimize the number of parcels or items of
1511	1511	property to be detached consistent with the purposes of this
1512	1512	chapter.
1513	1513	SECTION 2.74. Section 49.306(i), Education Code, is amended
1514	1514	to read as follows:
1515	1515	(i) The commissioner may order the annexation of a portion
1516	1516	of a parcel or item of property, including a portion of property
1517	1517	treated as a whole parcel or item under Subsection (h), if:
1518	1518	(1) the annexation of the whole parcel or item would
1519	1519	result in the district eligible to receive it in the appropriate
1520	1520	priority order provided by this section having a local revenue
1521	1521	level greater than the amount by which the product of $10,000
1522	1522	multiplied by weighted average enrollment [daily attendance]
1523	1523	exceeds the taxable value of property necessary to generate
1524	1524	maintenance and operations tax revenue in the amount equal to the
1525	1525	district's entitlement under Section 48.202(a-1)(2); or
1526	1526	(2) the commissioner determines that annexation of
1527	1527	portions of the parcel or item would reduce disparities in district
1528	1528	taxable values of property necessary to generate maintenance and
1529	1529	operations tax revenue in the amount equal to a district's
1530	1530	entitlement under Section 48.202(a-1)(2) more efficiently than
1531	1531	would be possible if the parcel or item were annexed as a whole.
1532	1532	SECTION 2.75. Section 49.311, Education Code, is amended to
1533	1533	read as follows:
1534	1534	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1535	1535	resident of real property detached from a school district may
1536	1536	choose to attend school in that district or in the district to which
1537	1537	the property is annexed. For purposes of determining average
1538	1538	enrollment [daily attendance] under Section 48.005, the student
1539	1539	shall be counted in the district to which the property is annexed.
1540	1540	If the student chooses to attend school in the district from which
1541	1541	the property is detached, the state shall withhold any foundation
1542	1542	school funds from the district to which the property is annexed and
1543	1543	shall allocate to the district in which the student is attending
1544	1544	school those funds and the amount of funds equal to the difference
1545	1545	between the state funds the district is receiving for the student
1546	1546	and the district's cost in educating the student.
1547	1547	SECTION 2.76. Section 49.354(e), Education Code, is amended
1548	1548	to read as follows:
1549	1549	(e) A restored district's proportionate share of fund
1550	1550	balances, personal property, or indebtedness is equal to the
1551	1551	proportion that the number of students in average enrollment [daily
1552	1552	attendance] in the restored district bears to the number of
1553	1553	students in average enrollment [daily attendance] in the
1554	1554	consolidated district.
1555	1555	SECTION 2.77. Section 403.104(d), Government Code, is
1556	1556	amended to read as follows:
1557	1557	(d) The proportionate share of an independent school
1558	1558	district is determined by multiplying the total amount of the
1559	1559	payment available for distribution to school districts by the ratio
1560	1560	that the average number of [daily attendance for] students who
1561	1561	reside in the county and are enrolled in [who attend] that school
1562	1562	district bears to the average number of [daily attendance for] all
1563	1563	students who reside in the county and are enrolled in [who attend]
1564	1564	any independent school district. However, if there are fewer than
1565	1565	10 independent school districts located in whole or part in the
1566	1566	county and if an independent school district would receive under
1567	1567	this formula less than 10 percent of the total payment available for
1568	1568	distribution to independent school districts, the school
1569	1569	district's share shall be increased to 10 percent of the total
1570	1570	payment and the shares of the school districts that would receive
1571	1571	more than 10 percent under the formula shall be reduced
1572	1572	proportionately, but not to an amount less than 10 percent of the
1573	1573	total payment. [Each independent school district shall develop a
1574	1574	reasonable method for determining the average daily attendance for
1575	1575	students who reside in the county and who attend the school
1576	1576	district.]
1577	1577	SECTION 2.78. Section 1371.001(4), Government Code, is
1578	1578	amended to read as follows:
1579	1579	(4) "Issuer" means:
1580	1580	(A) a home-rule municipality that:
1581	1581	(i) adopted its charter under Section 5,
1582	1582	Article XI, Texas Constitution;
1583	1583	(ii) has a population of 50,000 or more; and
1584	1584	(iii) has outstanding long-term
1585	1585	indebtedness that is rated by a nationally recognized rating agency
1586	1586	for municipal securities in one of the four highest rating
1587	1587	categories for a long-term obligation;
1588	1588	(B) a conservation and reclamation district
1589	1589	created and organized as a river authority under Section 52,
1590	1590	Article III, or Section 59, Article XVI, Texas Constitution;
1591	1591	(C) a joint powers agency organized and operating
1592	1592	under Chapter 163, Utilities Code;
1593	1593	(D) a metropolitan rapid transit authority,
1594	1594	regional transportation authority, or coordinated county
1595	1595	transportation authority created, organized, or operating under
1596	1596	Chapter 451, 452, or 460, Transportation Code;
1597	1597	(E) a conservation and reclamation district
1598	1598	organized or operating as a navigation district under Section 52,
1599	1599	Article III, or Section 59, Article XVI, Texas Constitution;
1600	1600	(F) a district organized or operating under
1601	1601	Section 59, Article XVI, Texas Constitution, that has all or part of
1602	1602	two or more municipalities within its boundaries;
1603	1603	(G) a state agency, including a state institution
1604	1604	of higher education;
1605	1605	(H) a hospital authority created or operating
1606	1606	under Chapter 262 or 264, Health and Safety Code, in a county that:
1607	1607	(i) has a population of more than 3.3
1608	1608	million; or
1609	1609	(ii) is included, in whole or in part, in a
1610	1610	standard metropolitan statistical area of this state that includes
1611	1611	a county with a population of more than 2.5 million;
1612	1612	(I) a hospital district in a county that has a
1613	1613	population of more than 2.5 million;
1614	1614	(J) a nonprofit corporation organized to
1615	1615	exercise the powers of a higher education loan authority under
1616	1616	Section 53B.47(e), Education Code;
1617	1617	(K) a county:
1618	1618	(i) that has a population of more than 3.3
1619	1619	million; or
1620	1620	(ii) that, on the date of issuance of
1621	1621	obligations under this chapter, has authorized, outstanding, or any
1622	1622	combination of authorized and outstanding, indebtedness of at least
1623	1623	$100 million secured by and payable from the county's ad valorem
1624	1624	taxes and the authorized long-term indebtedness of which is rated
1625	1625	by a nationally recognized rating agency of securities issued by
1626	1626	local governments in one of the four highest rating categories for a
1627	1627	long-term obligation;
1628	1628	(L) an independent school district that has an
1629	1629	average enrollment [daily attendance] of 50,000 or more as
1630	1630	determined under Section 48.005, Education Code;
1631	1631	(M) a municipality or county operating under
1632	1632	Chapter 334, Local Government Code;
1633	1633	(N) a district created under Chapter 335, Local
1634	1634	Government Code;
1635	1635	(O) a junior college district that has a total
1636	1636	headcount enrollment of 40,000 or more based on enrollment in the
1637	1637	most recent regular semester; or
1638	1638	(P) an issuer, as defined by Section 1201.002,
1639	1639	that has:
1640	1640	(i) a principal amount of at least $100
1641	1641	million in outstanding long-term indebtedness, in long-term
1642	1642	indebtedness proposed to be issued, or in a combination of
1643	1643	outstanding or proposed long-term indebtedness; and
1644	1644	(ii) some amount of long-term indebtedness
1645	1645	outstanding or proposed to be issued that is rated in one of the
1646	1646	four highest rating categories for long-term debt instruments by a
1647	1647	nationally recognized rating agency for municipal securities,
1648	1648	without regard to the effect of any credit agreement or other form
1649	1649	of credit enhancement entered into in connection with the
1650	1650	obligation.
1651	1651	SECTION 2.79. Section 1431.001(3), Government Code, is
1652	1652	amended to read as follows:
1653	1653	(3) "Eligible school district" means an independent
1654	1654	school district that has an average enrollment [daily attendance]
1655	1655	of 190,000 or more as determined under Section 48.005, Education
1656	1656	Code.
1657	1657	SECTION 2.80. Section 325.011(a), Local Government Code, is
1658	1658	amended to read as follows:
1659	1659	(a) The district is governed by a board of directors
1660	1660	composed of five members, with two directors appointed by the
1661	1661	commissioners court of the county, two directors appointed by the
1662	1662	governing body of the municipality having the largest population in
1663	1663	the county, and one director appointed by the governing body of the
1664	1664	school district with the largest number of students in average
1665	1665	enrollment [daily attendance] in the county. The board shall
1666	1666	manage the district and administer this chapter.
1667	1667	SECTION 2.81. Section 313.027(i), Tax Code, is amended to
1668	1668	read as follows:
1669	1669	(i) A person and the school district may not enter into an
1670	1670	agreement under which the person agrees to provide supplemental
1671	1671	payments to a school district or any other entity on behalf of a
1672	1672	school district in an amount that exceeds an amount equal to the
1673	1673	greater of $100 per student per year in average enrollment [daily
1674	1674	attendance], as defined by Section 48.005, Education Code, or
1675	1675	$50,000 per year, or for a period that exceeds the period beginning
1676	1676	with the period described by Section 313.021(4) and ending December
1677	1677	31 of the third tax year after the date the person's eligibility for
1678	1678	a limitation under this chapter expires. This limit does not apply
1679	1679	to amounts described by Subsection (f)(1) or (2).
1680	1680	SECTION 2.82. Section 1, Article 2688d, Vernon's Texas
1681	1681	Civil Statutes, is amended to read as follows:
1682	1682	Section 1. In all counties of the State where, according to
1683	1683	the preceding annual statistical report of the schools said county
1684	1684	has not more than four (4) school districts, with one (1) of such
1685	1685	districts comprising more than half of the county and having more
1686	1686	than two thousand (2,000) pupils in average enrollment [daily
1687	1687	attendance] in the one (1) district alone, and such district having
1688	1688	an assessed valuation of more than Twenty Million Dollars
1689	1689	($20,000,000) and where there is only one (1) common school
1690	1690	district in such county with an average enrollment [daily
1691	1691	attendance] of less than sixteen (16), the office of county
1692	1692	superintendent is hereby abolished, to be effective at the end of
1693	1693	the term of the incumbent county superintendent, as is now provided
1694	1694	by law.
1695	1695	SECTION 2.83. The following provisions of the Education
1696	1696	Code are repealed:
1697	1697	(1) Section 29.0822(d-1); and
1698	1698	(2) Section 48.007.
1699	1699	ARTICLE 3. SERVICE-BASED INTENSITY FUNDING FORMULA FOR SPECIAL
1700	1700	EDUCATION
1701	1701	SECTION 3.01. Effective September 1, 2024, Section 48.102,
1702	1702	Education Code, is amended to read as follows:
1703	1703	Sec. 48.102. SPECIAL EDUCATION. (a) For each student in
1704	1704	average daily attendance in a special education program under
1705	1705	Subchapter A, Chapter 29, [in a mainstream instructional
1706	1706	arrangement,] a school district is entitled to an annual allotment
1707	1707	equal to the basic allotment, or, if applicable, the sum of the
1708	1708	basic allotment and the allotment under Section 48.101 to which the
1709	1709	district is entitled, multiplied by a weight in an amount set by the
1710	1710	legislature in the General Appropriations Act for the highest tier
1711	1711	of intensity of service for which the student qualifies [1.15].
1712	1712	(a-1) Notwithstanding Subsection (a), for the 2024-2025 and
1713	1713	2025-2026 school years, the amount of an allotment under this
1714	1714	section shall be determined in accordance with Section 48.1023.
1715	1715	This subsection expires September 1, 2026. [For each full-time
1716	1716	equivalent student in average daily attendance in a special
1717	1717	education program under Subchapter A, Chapter 29, in an
1718	1718	instructional arrangement other than a mainstream instructional
1719	1719	arrangement, a district is entitled to an annual allotment equal to
1720	1720	the basic allotment, or, if applicable, the sum of the basic
1721	1721	allotment and the allotment under Section 48.101 to which the
1722	1722	district is entitled, multiplied by a weight determined according
1723	1723	to instructional arrangement as follows:
1724	1724	[Homebound 5.0
1725	1725	[Hospital class 3.0
1726	1726	[Speech therapy 5.0
1727	1727	[Resource room 3.0
1728	1728	[Self-contained, mild and moderate, regular campus
1729	1729	3.0
1730	1730	[Self-contained, severe, regular campus 3.0
1731	1731	[Off home campus 2.7
1732	1732	[Nonpublic day school 1.7
1733	1733	[Vocational adjustment class 2.3]
1734	1734	(b) The commissioner by rule shall define seven tiers of
1735	1735	intensity of service for use in determining funding under this
1736	1736	section. The commissioner must include one tier specifically
1737	1737	addressing students receiving special education services in
1738	1738	residential placement [A special instructional arrangement for
1739	1739	students with disabilities residing in care and treatment
1740	1740	facilities, other than state schools, whose parents or guardians do
1741	1741	not reside in the district providing education services shall be
1742	1742	established by commissioner rule. The funding weight for this
1743	1743	arrangement shall be 4.0 for those students who receive their
1744	1744	education service on a local school district campus. A special
1745	1745	instructional arrangement for students with disabilities residing
1746	1746	in state schools shall be established by commissioner rule with a
1747	1747	funding weight of 2.8].
1748	1748	(c) [For funding purposes, the number of contact hours
1749	1749	credited per day for each student in the off home campus
1750	1750	instructional arrangement may not exceed the contact hours credited
1751	1751	per day for the multidistrict class instructional arrangement in
1752	1752	the 1992-1993 school year.
1753	1753	[(d) For funding purposes the contact hours credited per day
1754	1754	for each student in the resource room; self-contained, mild and
1755	1755	moderate; and self-contained, severe, instructional arrangements
1756	1756	may not exceed the average of the statewide total contact hours
1757	1757	credited per day for those three instructional arrangements in the
1758	1758	1992-1993 school year.
1759	1759	[(e) The commissioner by rule shall prescribe the
1760	1760	qualifications an instructional arrangement must meet in order to
1761	1761	be funded as a particular instructional arrangement under this
1762	1762	section. In prescribing the qualifications that a mainstream
1763	1763	instructional arrangement must meet, the commissioner shall
1764	1764	establish requirements that students with disabilities and their
1765	1765	teachers receive the direct, indirect, and support services that
1766	1766	are necessary to enrich the regular classroom and enable student
1767	1767	success.
1768	1768	[(f) In this section, "full-time equivalent student" means
1769	1769	30 hours of contact a week between a special education student and
1770	1770	special education program personnel.
1771	1771	[(g)] The commissioner shall adopt rules and procedures
1772	1772	governing contracts for residential and day program placement of
1773	1773	[special education] students receiving special education
1774	1774	services.
1775	1775	(d) [The legislature shall provide by appropriation for the
1776	1776	state's share of the costs of those placements.
1777	1777	[(h)] At least 55 percent of the funds allocated under this
1778	1778	section must be used in the special education program under
1779	1779	Subchapter A, Chapter 29.
1780	1780	(e) [(i)] The agency shall ensure [encourage] the placement
1781	1781	of students in special education programs, including students in
1782	1782	residential placement [instructional arrangements], in the least
1783	1783	restrictive environment appropriate for their educational needs.
1784	1784	(f) [(j)] A school district that provides an extended year
1785	1785	program required by federal law for special education students who
1786	1786	may regress is entitled to receive funds in an amount equal to 75
1787	1787	percent, or a lesser percentage determined by the commissioner, of
1788	1788	the basic allotment, or, if applicable, the sum of the basic
1789	1789	allotment and the allotment under Section 48.101 to which the
1790	1790	district is entitled for each [full-time equivalent] student in
1791	1791	average daily attendance, multiplied by the amount designated for
1792	1792	the highest tier of intensity of service for which the student
1793	1793	qualifies [student's instructional arrangement] under this
1794	1794	section, for each day the program is provided divided by the number
1795	1795	of days in the minimum school year. The total amount of state
1796	1796	funding for extended year services under this section may not
1797	1797	exceed $10 million per year. A school district may use funds
1798	1798	received under this section only in providing an extended year
1799	1799	program.
1800	1800	(g) [(k)] From the total amount of funds appropriated for
1801	1801	special education under this section, the commissioner shall
1802	1802	withhold an amount specified in the General Appropriations Act, and
1803	1803	distribute that amount to school districts for programs under
1804	1804	Section 29.014. The program established under that section is
1805	1805	required only in school districts in which the program is financed
1806	1806	by funds distributed under this subsection and any other funds
1807	1807	available for the program. After deducting the amount withheld
1808	1808	under this subsection from the total amount appropriated for
1809	1809	special education, the commissioner shall reduce each district's
1810	1810	allotment proportionately and shall allocate funds to each district
1811	1811	accordingly.
1812	1812	(h) Not later than December 1 of each even-numbered year,
1813	1813	the commissioner shall submit to the Legislative Budget Board, for
1814	1814	purposes of the allotment under this section, proposed weights for
1815	1815	the tiers of intensity of service for the next state fiscal
1816	1816	biennium.
1817	1817	SECTION 3.02. Effective September 1, 2024, Subchapter C,
1818	1818	Chapter 48, Education Code, is amended by adding Section 48.1021 to
1819	1819	read as follows:
1820	1820	Sec. 48.1021. SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
1821	1821	(a) For each six-week period in which a student in a special
1822	1822	education program under Subchapter A, Chapter 29, receives eligible
1823	1823	special education services, a school district is entitled to an
1824	1824	allotment in an amount set by the legislature in the General
1825	1825	Appropriations Act for the service group for which the student is
1826	1826	eligible.
1827	1827	(a-1) Notwithstanding Subsection (a), for the 2024-2025 and
1828	1828	2025-2026 school years, the amount of an allotment under this
1829	1829	section shall be determined in accordance with Section 48.1023.
1830	1830	This subsection expires September 1, 2026.
1831	1831	(b) The commissioner by rule shall establish four service
1832	1832	groups for use in determining funding under this section. In
1833	1833	establishing the groups, the commissioner must consider the level
1834	1834	of services, equipment, and technology required to meet the needs
1835	1835	of students receiving special education services.
1836	1836	(c) A school district is entitled to receive an allotment
1837	1837	under this section for each service group for which a student is
1838	1838	eligible.
1839	1839	(d) A school district is entitled to the full amount of an
1840	1840	allotment under this section for a student receiving eligible
1841	1841	special education services during any part of a six-week period.
1842	1842	(e) At least 55 percent of the funds allocated under this
1843	1843	section must be used for a special education program under
1844	1844	Subchapter A, Chapter 29.
1845	1845	(f) Not later than December 1 of each even-numbered year,
1846	1846	the commissioner shall submit to the Legislative Budget Board, for
1847	1847	purposes of the allotment under this section, proposed amounts of
1848	1848	funding for the service groups for the next state fiscal biennium.
1849	1849	SECTION 3.03. Subchapter C, Chapter 48, Education Code, is
1850	1850	amended by adding Sections 48.1022 and 48.1023 to read as follows:
1851	1851	Sec. 48.1022. SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
1852	1852	EVALUATION. For each student for whom a school district conducts a
1853	1853	full individual and initial evaluation under Section 29.004 or 20
1854	1854	U.S.C. Section 1414(a)(1), the district is entitled to an allotment
1855	1855	of $500 or a greater amount provided by appropriation.
1856	1856	Sec. 48.1023. SPECIAL EDUCATION TRANSITION FUNDING.
1857	1857	(a) For the 2024-2025 and 2025-2026 school years, the commissioner
1858	1858	may adjust weights or amounts provided under Section 48.102 or
1859	1859	48.1021 as necessary to ensure compliance with requirements
1860	1860	regarding maintenance of state financial support under 20 U.S.C.
1861	1861	Section 1412(a)(18) and maintenance of local financial support
1862	1862	under applicable federal law.
1863	1863	(b) For the 2024-2025 and 2025-2026 school years, the
1864	1864	commissioner shall determine the formulas through which school
1865	1865	districts receive funding under Sections 48.102 and 48.1021. In
1866	1866	determining the formulas, the commissioner may combine the methods
1867	1867	of funding under those sections with the method of funding provided
1868	1868	by Section 48.102, as it existed on January 1, 2023.
1869	1869	(c) For the 2026-2027 school year, the commissioner may
1870	1870	adjust the weights or amounts set by the legislature in the General
1871	1871	Appropriations Act for purposes of Section 48.102 or 48.1021.
1872	1872	Before making an adjustment under this subsection, the commissioner
1873	1873	shall notify and must receive approval from the Legislative Budget
1874	1874	Board.
1875	1875	(d) Notwithstanding any other provision of this section,
1876	1876	the sum of funding provided under Sections 48.102 and 48.1021 for
1877	1877	the 2024-2025 or for the 2025-2026 school year as adjusted under
1878	1878	this section may not exceed the sum of:
1879	1879	(1) funding that would have been provided under
1880	1880	Section 48.102, as it existed on January 1, 2023; and
1881	1881	(2) the amount set by the legislature in the
1882	1882	General Appropriations Act.
1883	1883	(e) Each school district and open-enrollment charter school
1884	1884	shall report to the agency information necessary to implement this
1885	1885	section.
1886	1886	(f) The agency shall provide technical assistance to school
1887	1887	districts and open-enrollment charter schools to ensure a
1888	1888	successful transition in funding formulas for special education.
1889	1889	(g) This section expires September 1, 2028.
1890	1890	SECTION 3.04. Section 48.103(c), Education Code, is amended
1891	1891	to read as follows:
1892	1892	(c) A school district may receive funding for a student
1893	1893	under each provision of this section, [and] Section 48.102, and
1894	1894	Section 48.1021 for which [if] the student qualifies [satisfies the
1895	1895	requirements of both sections].
1896	1896	SECTION 3.05. Section 48.279(e), Education Code, is amended
1897	1897	to read as follows:
1898	1898	(e) After the commissioner has replaced any withheld
1899	1899	federal funds as provided by Subsection (d), the commissioner shall
1900	1900	distribute the remaining amount, if any, of funds described by
1901	1901	Subsection (a) to proportionately increase funding for the special
1902	1902	education allotment under Section 48.102 and the special education
1903	1903	service group allotment under Section 48.1021.
1904	1904	ARTICLE 4. SCHOOL SAFETY ALLOTMENT
1905	1905	SECTION 4.01. Section 48.115(a), Education Code, is amended
1906	1906	to read as follows:
1907	1907	Sec. 48.115. SCHOOL SAFETY ALLOTMENT. (a) Except as
1908	1908	provided by Subsection (a-1), a school district is entitled to an
1909	1909	annual allotment equal to the sum of the following amounts or a
1910	1910	greater amount provided by appropriation:
1911	1911	(1) $100 [$10] for each enrolled student [in average daily
1912	1912	attendance, plus $1 for each student in average daily attendance
1913	1913	per every $50 by which the district's maximum basic allotment under
1914	1914	Section 48.051 exceeds $6,160, prorated as necessary]; and
1915	1915	(2) $15,000 per campus.
1916	1916	ARTICLE 5. MENTAL HEALTH ALLOTMENT
1917	1917	SECTION 5.01. Section 48.115(b), Education Code, is amended
1918	1918	to read as follows:
1919	1919	(b) Funds allocated under this section must be used to
1920	1920	improve school safety and security, including costs associated
1921	1921	with:
1922	1922	(1) securing school facilities, including:
1923	1923	(A) improvements to school
1924	1924	infrastructure;
1925	1925	(B) the use or installation of
1926	1926	physical barriers; and
1927	1927	(C) the purchase and maintenance of:
1928	1928	(i) security cameras or
1929	1929	other security equipment; and
1930	1930	(ii) technology, including
1931	1931	communications systems or devices, that
1932	1932	facilitates communication and information sharing
1933	1933	between students, school personnel, and first
1934	1934	responders in an emergency;
1935	1935	(2) providing security for the district,
1936	1936	including:
1937	1937	(A) employing school district peace
1938	1938	officers, private security officers, and school
1939	1939	marshals; and
1940	1940	(B) collaborating with local law
1941	1941	enforcement agencies, such as entering into a
1942	1942	memorandum of understanding for the assignment of
1943	1943	school resource officers to schools in the district;
1944	1944	and
1945	1945	(3) school safety and security training and
1946	1946	planning, including:
1947	1947	(A) active shooter and emergency
1948	1948	response training;
1949	1949	(B) prevention and treatment programs
1950	1950	relating to addressing adverse childhood experiences;
1951	1951	and
1952	1952	(C) the prevention, identification,
1953	1953	and management of emergencies and threats, using
1954	1954	evidence-based, effective prevention practices and
1955	1955	including the establishment of [:
1956	1956	(i) providing licensed
1957	1957	counselors, social workers, and individuals
1958	1958	trained in restorative discipline and restorative
1959	1959	justice practices;
1960	1960	(ii) providing mental
1961	1961	health personnel and support;
1962	1962	(iii) providing behavioral
1963	1963	health services;
1964	1964	(iv) establishing] threat
1965	1965	reporting systems; and
1966	1966	(v) developing and
1967	1967	implementing programs focused on restorative
1968	1968	justice practices, culturally relevant
1969	1969	instruction, and providing mental health support;
1970	1970	and
1971	1971	(4) providing programs related to suicide
1972	1972	prevention, intervention, and postvention].
1973	1973	SECTION 5.02. Subchapter C, Chapter 48, Education Code, is
1974	1974	amended by adding Section 48.117 to read as follows:
1975	1975	Sec. 48.117. MENTAL HEALTH ALLOTMENT. (a) A school
1976	1976	district is entitled to an annual allotment of $100,000 or a greater
1977	1977	amount provided by appropriation to support mental health services
1978	1978	at the district.
1979	1979	(b) In addition to the allotment under Subsection (a), a
1980	1980	school district that receives an allotment under Section 48.101 or
1981	1981	at which more than 50 percent of enrolled students are
1982	1982	educationally disadvantaged is entitled to an allotment for each
1983	1983	student enrolled in the district in an amount provided by
1984	1984	appropriation.
1985	1985	(c) Funds allocated under this section:
1986	1986	(1) must be used to develop or enhance a comprehensive
1987	1987	school mental health system that, through the implementation of
1988	1988	programs, practices, and procedures in accordance with Section
1989	1989	38.351, provides a tiered array of supports and services in the
1990	1990	educational setting that contribute to:
1991	1991	(A) a positive school climate;
1992	1992	(B) the development of skills related to managing emotions,
1993	1993	establishing and maintaining positive relationships, and
1994	1994	responsible decision-making;
1995	1995	(C) the learning and well-being of students with or at risk
1996	1996	of mental health or substance use conditions;
1997	1997	(D) family and community engagement;
1998	1998	(E) reduced exclusionary discipline practices; and
1999	1999	(F) staff wellness; and
2000	2000	(2) may be used to pay for costs associated with:
2001	2001	(A) the salary of school personnel responsible for
2002	2002	planning, coordinating, delivering, or monitoring supports and
2003	2003	services described by Subdivision (1);
2004	2004	(B) training school personnel regarding effective practices
2005	2005	and district and campus procedures to support student mental
2006	2006	health;
2007	2007	(C) a contract-based collaborative effort or partnership
2008	2008	with one or more local community programs, agencies, or providers;
2009	2009	and
2010	2010	(D) developing and implementing programs focused on
2011	2011	restorative justice practices.
2012	2012	(d) Funds allocated for purposes of this section may not be
2013	2013	used to supplant any other funds that may be provided for the same
2014	2014	purpose.
2015	2015	(e) Not later than June 1 of each year and in accordance with
2016	2016	commissioner rule, each school district shall submit to the
2017	2017	commissioner information regarding the outcomes and expenditures
2018	2018	related to funds allocated to the district under this section.
2019	2019	(f) Not later than September 1 of each year, the
2020	2020	commissioner shall publish a report regarding the use of funds
2021	2021	allocated under this section during the preceding school year,
2022	2022	including information regarding the programs, personnel, and
2023	2023	resources implemented, employed, or purchased by school districts
2024	2024	using the funds and other purposes for which the funds were used.
2025	2025	ARTICLE 6. PAID PARENTAL LEAVE ALLOTMENT
2026	2026	SECTION 6.01. Subchapter A, Chapter 22, Education Code, is
2027	2027	amended by adding Section 22.0035 to read as follows:
2028	2028	Sec. 22.0035. PAID PARENTAL LEAVE POLICY. (a) Each school
2029	2029	district or open-enrollment charter school shall adopt a paid
2030	2030	parental leave policy under which a full-time employee of the
2031	2031	district or school is entitled to paid parental leave following
2032	2032	the:
2033	2033	(1) birth of a child;
2034	2034	(2) birth of a child by the employee's spouse;
2035	2035	(3) birth of a child by a gestational surrogate;
2036	2036	or
2037	2037	(4) adoption of a child.
2038	2038	(b) A paid parental leave policy described by Subsection
2039	2039	(a):
2040	2040	(1) must provide:
2041	2041	(A) eight consecutive weeks of paid
2042	2042	parental leave for an employee who is the primary
2043	2043	caregiver of the child; or
2044	2044	(B) four consecutive weeks of paid
2045	2045	parental leave for an employee who is the spouse of the
2046	2046	primary caregiver of the child;
2047	2047	(2) must require that:
2048	2048	(A) an employee be employed on a
2049	2049	full-time basis by the school district or
2050	2050	open-enrollment charter school for at least 12 months
2051	2051	before becoming eligible for paid parental leave;
2052	2052	(B) an employee's eligibility for paid
2053	2053	parental leave expires on the six-month anniversary of
2054	2054	the date of the child's birth or placement with the
2055	2055	employee; and
2056	2056	(C) an employee who has been granted
2057	2057	paid parental leave under the policy take the leave
2058	2058	concurrently with leave for which the employee is
2059	2059	eligible under the federal Family and Medical Leave Act
2060	2060	of 1993 (29 U.S.C. Section 2601 et seq.); and
2061	2061	(3) may not require an employee to first use all
2062	2062	available and applicable paid vacation and sick leave before
2063	2063	taking paid parental leave under the policy.
2064	2064	(c) Not later than November 1 of each even-numbered year,
2065	2065	the agency shall prepare and submit to the legislature a report on
2066	2066	paid parental leave provided under a policy required by this
2067	2067	section. The report must include:
2068	2068	(1) the number of employees who took paid
2069	2069	parental leave under a policy required by this section during
2070	2070	the preceding two years, disaggregated by school district and
2071	2071	open-enrollment charter school;
2072	2072	(2) the costs of providing paid parental leave
2073	2073	under a policy required by this section during the preceding
2074	2074	two years;
2075	2075	(3) projections regarding future participation
2076	2076	in and costs of paid parental leave provided under a policy
2077	2077	required by this section; and
2078	2078	(4) any recommendations for legislative or other
2079	2079	action.
2080	2080	SECTION 6.02. Subchapter D, Chapter 48, Education Code, is
2081	2081	amended by adding Section 48.158 to read as follows:
2082	2082	Sec. 48.158. HEALTHY FAMILIES ALLOTMENT. For each employee
2083	2083	who received paid parental leave under a policy required by Section
2084	2084	22.0035 during the preceding school year, a school district is
2085	2085	entitled to an annual allotment equal to the amount of the
2086	2086	employee's compensation for the period for which the employee
2087	2087	received paid parental leave under that policy.
2088	2088	SECTION 6.03. As soon as practicable after the effective
2089	2089	date of this Act and not later than September 1, 2024, the board of
2090	2090	trustees of a school district or the governing body of an
2091	2091	open-enrollment charter school shall adopt the paid parental leave
2092	2092	policy required by Section 22.0035, Education Code, as added by
2093	2093	this Act.
2094	2094	ARTICLE 7. UNIVERSAL PRE-KINDERGARTEN
2095	2095	SECTION 7.01. Sections 29.153(a-1), (b), (c), (d), and (f),
2096	2096	Education Code, are amended to read as follows:
2097	2097	(a-1) A district shall offer prekindergarten classes to any
2098	2098	child [if the district identifies 15 or more children] who is [are
2099	2099	eligible under Subsection (b) and are] at least four years of age.
2100	2100	A school district may offer prekindergarten classes if the district
2101	2101	identifies 15 or more [eligible] children who are eligible under
2102	2102	Subsection (b)(1) [at least three years of age]. A district may not
2103	2103	charge tuition for a prekindergarten class offered under this
2104	2104	section.
2105	2105	(b) A child is eligible for enrollment in a prekindergarten
2106	2106	class under this section if the child is:
2107	2107	(1) at least three years of age and:
2108	2108	(A) [(1)] is unable to speak and
2109	2109	comprehend the English language;
2110	2110	(B) [(2)] is educationally
2111	2111	disadvantaged;
2112	2112	(C) [(3)] is homeless, regardless of
2113	2113	the residence of the child, of either parent of the
2114	2114	child, or of the child's guardian or other person having
2115	2115	lawful control of the child;
2116	2116	(D) [(4)] is the child of an active
2117	2117	duty member of the armed forces of the United States,
2118	2118	including the state military forces or a reserve
2119	2119	component of the armed forces, who is ordered to active
2120	2120	duty by proper authority;
2121	2121	(E) [(5)] is the child of a member of
2122	2122	the armed forces of the United States, including the
2123	2123	state military forces or a reserve component of the
2124	2124	armed forces, who was injured or killed while serving on
2125	2125	active duty;
2126	2126	(F) [(6)] is or ever has been in:
2127	2127	(i) [(A)] the
2128	2128	conservatorship of the Department of Family and
2129	2129	Protective Services following an adversary
2130	2130	hearing held as provided by Section 262.201,
2131	2131	Family Code; or
2132	2132	(ii) [(B)] foster care in
2133	2133	another state or territory, if the child resides
2134	2134	in this state; or
2135	2135	(G) [(7)] is the child of a person
2136	2136	eligible for the Star of Texas Award as:
2137	2137	(i) [(A)] a peace
2138	2138	officer under Section 3106.002, Government
2139	2139	Code;
2140	2140	(ii) [(B)] a firefighter
2141	2141	under Section 3106.003, Government Code; or
2142	2142	(iii) [(C)] an emergency
2143	2143	medical first responder under Section 3106.004,
2144	2144	Government Code; or
2145	2145	(2) at least four years of age.
2146	2146	(c) A prekindergarten class under this section [may be
2147	2147	operated on a half-day basis for children under four years of age
2148	2148	and] shall be operated on a full-day basis [for children who are at
2149	2149	least four years of age]. A district is not required to provide
2150	2150	transportation for a prekindergarten class, but transportation, if
2151	2151	provided, is included for funding purposes as part of the regular
2152	2152	transportation system.
2153	2153	(d) Subject to Subsections (d-1) and (d-2), on application
2154	2154	of a district, the commissioner shall exempt a district from the
2155	2155	application of all or any part of this section, including all or any
2156	2156	part of Subchapter E-1 for a prekindergarten class described by
2157	2157	Subsection (c-1), if the commissioner determines that[:
2158	2158	[(1)] the district would be required to construct
2159	2159	classroom facilities in order to provide prekindergarten
2160	2160	classes[; or
2161	2161	[(2) implementing any part of this section would
2162	2162	result in fewer eligible children being enrolled in a
2163	2163	prekindergarten class under this section].
2164	2164	(f) A child who is eligible for enrollment in a
2165	2165	prekindergarten class under Subsection (b)(1)(D) or (E) [(b)(4) or
2166	2166	(5)] remains eligible for enrollment if the child's parent leaves
2167	2167	the armed forces, or is no longer on active duty, after the child
2168	2168	begins a prekindergarten class.
2169	2169	SECTION 7.02. Section 29.1531(a), Education Code, is
2170	2170	amended to read as follows:
2171	2171	(a) A school district may offer on a tuition basis or use
2172	2172	district funds to provide[:
2173	2173	[(1) an additional half-day of prekindergarten
2174	2174	classes to children who are eligible for classes under
2175	2175	Section 29.153 and are under four years of age; and
2176	2176	[(2)] half-day and full-day prekindergarten
2177	2177	classes to children not eligible for classes under Section
2178	2178	29.153.
2179	2179	SECTION 7.03. Section 29.1532(c), Education Code, is
2180	2180	amended to read as follows:
2181	2181	(c) A school district that offers prekindergarten classes
2182	2182	shall include the following information in the district's Public
2183	2183	Education Information Management System (PEIMS) report:
2184	2184	(1) demographic information, as determined by
2185	2185	the commissioner, on students enrolled in district and campus
2186	2186	prekindergarten classes, including the number of students
2187	2187	who are eligible for classes under Sections 29.153(b)(1) and
2188	2188	(f) [Section 29.153];
2189	2189	(2) the numbers of half-day and full-day
2190	2190	prekindergarten classes offered by the district and campus;
2191	2191	(3) the number of half-day prekindergarten
2192	2192	classes for which the district has received an exemption from
2193	2193	full-day operation under Section 29.153(d);
2194	2194	(4) the sources of funding for the
2195	2195	prekindergarten classes;
2196	2196	(5) the class size and ratio of instructional
2197	2197	staff to students for each prekindergarten program class
2198	2198	offered by the district and campus;
2199	2199	(6) if the district elects to administer an
2200	2200	assessment instrument under Section 29.169 to students
2201	2201	enrolled in district and campus prekindergarten program
2202	2202	classes, a description and the results of each type of
2203	2203	assessment instrument; and
2204	2204	(7) curricula used in the district's
2205	2205	prekindergarten program classes.
2206	2206	ARTICLE 8. EFFECTIVE DATE
2207	2207	SECTION 8.01. This Act takes effect immediately if it
2208	2208	receives a vote of two-thirds of all the members elected to each
2209	2209	house, as provided by Section 39, Article III, Texas Constitution.
2210	2210	If this Act does not receive the vote necessary for immediate
2211	2211	effect, this Act takes effect February 1, 2024.
2212	2212	SECTION 8.02. This Act applies beginning with the 2024-2025
2213	2213	school year.