Texas 2025 89th Regular

Texas House Bill HB2 House Committee Report / Bill

Filed 04/10/2025

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                    89R20977 MM/ANG/KJE-F
 By: Buckley, Bernal H.B. No. 2
 Substitute the following for H.B. No. 2:
 By:  Buckley C.S.H.B. No. 2




 A BILL TO BE ENTITLED
 AN ACT
 relating to public education and public school finance.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. CHANGES RELATED TO PUBLIC EDUCATION AND PUBLIC SCHOOL
 FINANCE
 SECTION 1.01.  Section 12.1058(d), Education Code, is
 amended to read as follows:
 (d)  A political subdivision shall consider an
 open-enrollment charter school a school district for purposes of
 zoning, project permitting, platting and replatting processes,
 business licensing, franchises, utility services, signage,
 subdivision regulation, property development projects, the
 requirements for posting bonds or securities, contract
 requirements, land development standards as provided by Section
 212.902, Local Government Code, tree and vegetation regulations,
 regulations of architectural features of a structure, construction
 of fences, landscaping, garbage disposal, noise levels, fees or
 other assessments, and construction or site development work [if
 the charter school provides to the political subdivision the
 certification described by Subsection (e)].
 SECTION 1.02.  Section 12.106, Education Code, is amended by
 amending Subsections (a), (a-2), (d), (e), and (f) and adding
 Subsection (e-1) to read as follows:
 (a)  A charter holder is entitled to receive for the
 open-enrollment charter school funding under Chapter 48 equal to
 the amount of funding per student in weighted average daily
 attendance to which the charter holder would be entitled for the
 school under that chapter if the school were a school district
 without a tier one local share for purposes of Section 48.266,
 excluding:
 (1)  the adjustment under Section 48.052;
 (2)  [,] the funding under Sections 48.101 and [,
 48.110,] 48.111; [, and 48.112,] and
 (3)  enrichment funding under Section 48.202(a) [, to
 which the charter holder would be entitled for the school under
 Chapter 48 if the school were a school district without a tier one
 local share for purposes of Section 48.266].
 (a-2)  In addition to the funding provided by Subsection (a),
 a charter holder is entitled to receive for the open-enrollment
 charter school an allotment per student in average daily attendance
 in an amount equal to the difference between:
 (1)  the product of:
 (A)  the quotient of:
 (i)  the total amount of funding provided to
 eligible school districts under Section 48.101(b) or (c); and
 (ii)  the total number of students in
 average daily attendance in school districts that receive an
 allotment under Section 48.101(b) or (c); and
 (B)  the sum of one and the quotient of:
 (i)  the total number of students in average
 daily attendance in school districts that receive an allotment
 under Section 48.101(b) or (c); and
 (ii)  the total number of students in
 average daily attendance in school districts statewide; and
 (2)  $700 [$125].
 (d)  Subject to Subsections [Subsection] (e) and (e-1), in
 addition to other amounts provided by this section, a charter
 holder is entitled to receive, for the open-enrollment charter
 school, an annual allotment [funding] per student in average daily
 attendance [in an amount] equal to [the guaranteed level of state
 and local funds per student per cent of tax effort under Section
 46.032(a) multiplied by] the lesser of:
 (1)  the state average interest and sinking fund tax
 rate imposed by school districts for the current year multiplied by
 the guaranteed level of state and local funds per student per cent
 of tax effort under Section 46.032(a); or
 (2)  the maximum amount of the basic allotment provided
 under Section 48.051 for the applicable school year multiplied by
 0.07 [a rate that would result in a total amount to which charter
 schools are entitled under this subsection for the current year
 equal to $60 million].
 (e)  A charter holder is entitled to receive funding under
 Subsection (d) for an open-enrollment charter school only if:
 (1)  the [most recent] overall performance ratings
 [rating] assigned to the open-enrollment charter school under
 Subchapters [Subchapter] C and D, Chapter 39, for the two preceding
 school years reflect [reflects] at least acceptable performance;
 (2)  for an open-enrollment charter school that has not
 been assigned performance ratings under both Subchapters C and D,
 Chapter 39, the overall performance rating assigned to the school
 for the two preceding school years under either of those
 subchapters reflects at least acceptable performance; or
 (3)  the[. This subsection does not apply to a] charter
 holder [that] operates a school program located at a day treatment
 facility, residential treatment facility, psychiatric hospital, or
 medical hospital.
 (e-1)  A charter holder is entitled to receive funding under
 Subsection (d) for an open-enrollment charter school only if the
 governing body of the school annually certifies in writing to the
 agency that no administrator, officer, or employee of the school
 and no member of the governing body of the school or its charter
 holder derives any personal financial benefit from a real estate
 transaction with the school.
 (f)  Funds received by a charter holder under Subsection (d):
 (1)  notwithstanding any other law, may not be used to
 pay a salary, bonus, stipend, or any other form of compensation to a
 school superintendent or administrator serving as educational
 leader and chief executive officer of the school; and
 (2)  may only be used:
 (A) [(1)]  to lease an instructional facility;
 (B) [(2)]  to pay property taxes imposed on an
 instructional facility;
 (C) [(3)]  to pay debt service on bonds issued for
 a purpose for which a school district is authorized to issue bonds
 under Section 45.001(a)(1) or to pay for a purchase for which a
 school district is authorized to issue bonds under that section [to
 finance an instructional facility]; or
 (D) [(4)]  for any other purpose related to the
 purchase, lease, sale, acquisition, or maintenance of an
 instructional facility.
 SECTION 1.03.  Section 12.156(a), Education Code, is amended
 to read as follows:
 (a)  Except as otherwise provided by this subchapter,
 Subchapter D, including Section 12.106(d), applies to a college or
 university charter school or junior college charter school as
 though the college or university charter school or junior college
 charter school, as applicable, were granted a charter under that
 subchapter.
 SECTION 1.04.  Section 12.263, Education Code, is amended by
 adding Subsection (a-1) to read as follows:
 (a-1)  An eligible entity granted a charter under this
 subchapter is entitled to receive an allotment under Section
 12.106(d) for the adult education program only if:
 (1)  the overall performance rating assigned to the
 adult education program under the applicable accountability
 framework adopted under Section 12.262 for the two preceding school
 years reflects at least acceptable performance; or
 (2)  for an adult education program that has not been
 assigned a performance rating under the applicable accountability
 framework adopted under Section 12.262, the overall performance
 ratings assigned to the program under Subchapters C and D, Chapter
 39, for the two preceding school years reflect at least acceptable
 performance.
 SECTION 1.05.  Section 21.3521, Education Code, is amended
 by amending Subsections (a), (c), and (e) and adding Subsections
 (d-1), (d-2), and (d-3) to read as follows:
 (a)  Subject to Subsection (b), a school district or
 open-enrollment charter school may designate a classroom teacher as
 a master, exemplary, [or] recognized, or acknowledged teacher for a
 five-year period based on the results from single year or multiyear
 appraisals that comply with Section 21.351 or 21.352.
 (c)  Notwithstanding performance standards established
 under Subsection (b), a classroom teacher that holds a National
 Board Certification issued by the National Board for Professional
 Teaching Standards may be designated as nationally board certified
 [recognized].
 (d-1)  Each school year, the commissioner shall, using
 criteria developed by the commissioner, designate as enhanced
 teacher incentive allotment public schools school districts and
 open-enrollment charter schools that implement comprehensive
 school evaluation and support systems.  The criteria developed by
 the commissioner must require a district or school to:
 (1)  for principals and assistant principals,
 implement:
 (A)  a strategic evaluations system aligned with
 the district's or school's teacher designation system; and
 (B)  a compensation system based on performance;
 (2)  ensure that under the school district's or
 open-enrollment charter school's teacher designation system
 substantially all classroom teachers, regardless of the grade level
 or subject area to which the teacher is assigned, are eligible to
 earn a designation under Subsection (a);
 (3)  implement for all classroom teachers a
 compensation plan based on performance that:
 (A)  uses a salary schedule that is based on
 differentiation among classroom teacher appraisals as permitted
 under this section; and
 (B)  does not include across-the-board salary
 increases for classroom teachers except for periodic changes to the
 district's or school's salary schedule to adjust for significant
 inflation; and
 (4)  implement a locally designed plan to place highly
 effective teachers at high needs campuses and in accordance with
 Section 28.0062(a)(3).
 (d-2)  The commissioner may remove a school district's or
 open-enrollment charter school's designation under Subsection
 (d-1) if the commissioner determines the district or school no
 longer meets the criteria for the designation.
 (d-3)  Not later than September 1 of each year, the
 commissioner shall post on the agency's Internet website a list of
 the school districts and open-enrollment charter schools
 designated as enhanced teacher incentive allotment public schools
 under Subsection (d-1).
 (e)  The agency shall use contracted services to develop and
 provide technical assistance for school districts and
 open-enrollment charter schools that request assistance in:
 (1)  earning a designation under Subsection (d-1); or
 (2)  implementing a local optional teacher designation
 system, including:
 (A)  providing assistance in prioritizing high
 needs campuses;
 (B)  providing examples or models of local
 optional teacher designation systems to reduce the time required
 for a district or school to implement a teacher designation system;
 (C)  establishing partnerships between districts
 and schools that request assistance and districts and schools that
 have implemented a teacher designation system;
 (D)  applying the performance and validity
 standards established by the commissioner under Subsection (b);
 (E)  providing centralized support for the
 analysis of the results of assessment instruments administered to
 district or school students; and
 (F)  facilitating effective communication on and
 promotion of local optional teacher designation systems.
 SECTION 1.06.  Subchapter H, Chapter 21, Education Code, is
 amended by adding Section 21.3522 to read as follows:
 Sec. 21.3522.  LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM
 GRANT PROGRAM.  (a)  From money appropriated or otherwise available
 for the purpose, the agency shall establish and administer a grant
 program to provide money and technical assistance to:
 (1)  expand and support ongoing implementation of local
 optional teacher designation systems under Section 21.3521;
 (2)  increase the number of classroom teachers eligible
 for a designation under that section; and
 (3)  increase the salaries paid to classroom teachers
 employed by school districts or open-enrollment charter schools
 that have established or are seeking to establish a designation
 system under that section.
 (b)  A grant awarded under this section must:
 (1)  meet the needs of individual school districts or
 open-enrollment charter schools; and
 (2)  enable regional leadership capacity.
 (c)  The commissioner may adopt rules as necessary to
 implement this section.
 SECTION 1.07.  Subchapter C, Chapter 25, Education Code, is
 amended by adding Section 25.0816 to read as follows:
 Sec. 25.0816.  ADDITIONAL DAYS SCHOOL YEAR PLANNING GRANT
 PROGRAM. (a) From money appropriated or otherwise available for
 the purpose, the agency shall establish and administer a grant
 program to provide funding and technical assistance to school
 districts and open-enrollment charter schools to plan the school
 year and adjust operations as necessary to qualify for the
 incentive funding under Section 48.0051.
 (b)  In awarding grants under the program, the agency shall
 prioritize school districts and open-enrollment charter schools
 that seek to maximize incentive funding under Section 48.0051.
 (c)  The agency may solicit and accept gifts, grants, and
 donations for purposes of this section.
 SECTION 1.08.  Section 28.0211(a-1), Education Code, is
 amended to read as follows:
 (a-1)  Each time a student fails to perform satisfactorily on
 an assessment instrument administered under Section 39.023(a) or
 (l) in the third, fourth, fifth, sixth, seventh, or eighth grade or
 an end-of-course assessment instrument administered under Section
 39.023(c), other than an assessment instrument developed or adopted
 based on alternative academic achievement standards, the school
 district in which the student attends school shall provide to the
 student accelerated instruction in the applicable subject area
 during the subsequent summer or school year and, subject to
 Subsections (a-7) and (a-8), either:
 (1)  allow the student to be assigned a classroom
 teacher who has earned a designation [is certified as a master,
 exemplary, or recognized teacher] under Section 21.3521 for the
 subsequent school year in the applicable subject area; or
 (2)  provide the student supplemental instruction
 under Subsection (a-4).
 SECTION 1.09.  Section 29.153, Education Code, is amended by
 adding Subsections (b-1) and (h) to read as follows:
 (b-1)  Notwithstanding Subsection (b), any child who is at
 least three years of age is eligible for enrollment in a
 prekindergarten class under this section if:
 (1)  the class is provided through a partnership
 between a school district or open-enrollment charter school and a
 community-based child-care provider described by Subsection (g);
 and
 (2)  the child receives subsidized child-care services
 provided through the child-care services program administered by
 the Texas Workforce Commission.
 (h)  Notwithstanding any other law, a facility or location at
 which prekindergarten classes are provided by a school district or
 open-enrollment charter school in partnership with a private entity
 under this section:
 (1)  must comply with any municipal ordinance
 applicable to the operation of a private prekindergarten program;
 and
 (2)  may not be required to comply with any municipal
 ordinance applicable to the operation of a prekindergarten program
 by a school district or open-enrollment charter school.
 SECTION 1.10.  Section 29.934, Education Code, is amended by
 amending Subsections (b) and (d) and adding Subsection (d-1) to
 read as follows:
 (b)  To apply to be designated as a resource campus under
 this section, the campus must have received an overall performance
 rating under Section 39.054 of D or F, or an overall performance
 rating under Section 39.054(a-4)(1) or 39.0546 of "Not Rated," for
 three [four] years over a 10-year period of time.
 (d)  To be designated as a resource campus, the campus must:
 (1)  implement a targeted improvement plan as described
 by Chapter 39A and establish a school community partnership team;
 (2)  adopt an accelerated campus excellence turnaround
 plan as provided by Section 39A.105(b) [except that a classroom
 teacher who satisfies the requirements for demonstrated
 instructional effectiveness under Section 39A.105(b)(3) must also
 hold a current designation assigned under Section 21.3521];
 (3)  be in a school district that has adopted an
 approved local optional teacher designation system under Section
 21.3521;
 (4)  satisfy certain staff criteria by:
 (A)  requiring a principal or teacher employed at
 the campus before the designation to apply for a position to
 continue at the campus;
 (B)  for a subject in the foundation curriculum
 under Section 28.002(a)(1):
 (i)  employing only teachers who have at
 least two [three] years of teaching experience; and
 (ii)  ensuring that at least 50 percent of
 teachers hold a current designation assigned under Section 21.3521;
 (C)  employing at least one school counselor for
 every 300 students; and
 (D)  employing at least one appropriately
 licensed professional to assist with the social and emotional needs
 of students and staff, who must be a:
 (i)  family and community liaison;
 (ii)  clinical social worker;
 (iii)  specialist in school psychology; or
 (iv)  professional counselor;
 (5)  implement a positive behavior program as provided
 by Section 37.0013;
 (6)  implement a family engagement plan as described by
 Section 29.168;
 (7)  develop and implement a plan to use high quality
 instructional materials;
 (8)  if the campus is an elementary or middle school
 campus, operate the campus for a school year that qualifies for
 funding under Section 48.0051; and
 (9)  annually submit to the commissioner data and
 information required by the commissioner to assess fidelity of
 implementation.
 (d-1)  The commissioner may grant to a campus requesting to
 be designated as a resource campus under this section a one-year
 waiver from the requirement under Subsection (d)(4)(B)(ii) if the
 campus provides substantial evidence that the campus is working
 toward meeting the requirement.
 SECTION 1.11.  Effective September 1, 2028, Section 29.934,
 Education Code, is amended by amending Subsection (b) and adding
 Subsection (b-1) to read as follows:
 (b)  To apply to be designated as a resource campus under
 this section, the campus must have received an overall performance
 rating under Section 39.054 of D or F, or an overall performance
 rating under Section 39.054(a-4)(1) of "Not Rated," for three
 [four] years over a 10-year period of time.
 (b-1)  Notwithstanding Subsection (b), a campus may apply to
 be designated as a resource campus under this section if the campus
 received an overall performance rating under Section 39.054 of D or
 F, or an overall performance rating under Section 39.054(a-4)(1) or
 former Section 39.0546 of "Not Rated," for three years over a
 10-year period of time.  This subsection expires September 1, 2033.
 SECTION 1.12.  Subchapter Z, Chapter 29, Education Code, is
 amended by adding Sections 29.940 and 29.941 to read as follows:
 Sec. 29.940.  FEDERAL GRANT ADMINISTRATION. For a federal
 grant program under which the agency oversees and administers
 services to nonpublic schools, the agency shall follow federal
 disposition rules and procedures to dispose of equipment or
 supplies that are unused or no longer needed and were previously
 allocated to nonpublic schools participating in the grant program.
 Sec. 29.941.  GRANT PROGRAM TO PROMOTE PARENTAL ENGAGEMENT.
 (a) From money appropriated or otherwise available for the
 purpose, the commissioner shall establish a grant program to
 provide grants to school districts and open-enrollment charter
 schools to assist with costs associated with operating programs or
 projects to encourage parental engagement in the educational
 success of students in the district or school, including:
 (1)  educational programming for parents on how to
 teach the parent's child how to read, including how to read with the
 parent's child outside of school in a manner that complements
 instruction;
 (2)  for a parent of a child identified as academically
 behind, educational programming on identifying and addressing the
 child's academic struggles;
 (3)  for a parent of a child enrolled in a special
 education program under Subchapter A, educational programming on
 how to prepare the child for educational success; and
 (4)  for a parent of a child who exhibits behavioral
 issues or has been subject to disciplinary measures, programs or
 policies to engage the parent in efforts to discipline and improve
 the behavior of the child.
 (b)  A school district or open-enrollment charter school may
 use money awarded under Subsection (a) to:
 (1)  pay staff working additional hours to operate a
 program or project described by Subsection (a);
 (2)  pay for food offered at training meetings for a
 program or project described by Subsection (a); and
 (3)  pay for educational materials provided to parents
 related to a program or project described by Subsection (a).
 (c)  The commissioner may adopt rules as necessary to
 implement this section.
 SECTION 1.13.  Section 46.071, Education Code, is amended by
 adding Subsections (d-1) and (d-2) to read as follows:
 (d-1)  If the amount required to pay debt service on bonds
 issued under Subchapter A, Chapter 45, is less than the sum of state
 assistance provided under this chapter, including the amount of
 additional state aid provided under this section, and the revenue
 from the district's interest and sinking tax for a school year, the
 commissioner shall, except as provided by Subsection (d-2), reduce
 the amount of additional state aid provided under this section by
 the difference between:
 (1)  the sum of state assistance provided under this
 chapter, including the amount of additional state aid provided
 under this section, and the revenue from the district's interest
 and sinking tax for the school year; and
 (2)  the amount required to pay debt service on bonds
 described by this subsection for the school year.
 (d-2)  The amount of additional state aid provided under this
 section may not be reduced under Subsection (d-1) to an amount below
 zero.
 SECTION 1.14.  Section 48.005, Education Code, is amended by
 amending Subsections (a), (b), (e), and (f) and adding Subsection
 (a-1) to read as follows:
 (a)  In this chapter, average daily attendance is:
 (1)  the quotient of the sum of attendance for each day
 of the minimum number of days of instruction as described under
 Section 25.081(a) divided by the minimum number of days of
 instruction;
 (2)  for a district that operates under a flexible year
 program under Section 29.0821, the quotient of the sum of
 attendance for each actual day of instruction as permitted by
 Section 29.0821(b)(1) divided by the number of actual days of
 instruction as permitted by Section 29.0821(b)(1);
 (3)  for a district that operates under a flexible
 school day program under Section 29.0822, the average daily
 attendance as calculated by the commissioner in accordance with
 Sections 29.0822(d) and (d-1); or
 (4)  except as provided by Subsection (a-1), for a
 district that operates a half-day program or a full-day program
 under Section 29.153(c), one-half of the average daily attendance
 calculated under Subdivision (1).
 (a-1)  Average daily attendance is calculated under
 Subsection (a)(1) for students:
 (1)  enrolled in a half-day program or full-day program
 under Section 29.153(c) provided by an eligible private provider
 under Section 29.171; and
 (2)  assigned to a campus:
 (A)  that is operated under a contract entered
 into by the district with an entity under Section 11.174 or an
 eligible private provider under Section 29.171; or
 (B)  of an open-enrollment charter school that is
 operated by an entity governed by a management contract approved by
 the agency.
 (b)  A school district that experiences a decline of more
 than five [two] percent [or more] in average daily attendance shall
 be funded on the basis of[:
 [(1)  the actual average daily attendance of the
 preceding school year, if the decline is the result of the closing
 or reduction in personnel of a military base; or
 [(2)  subject to Subsection (e),] an average daily
 attendance of 95 [not to exceed 98] percent of the actual average
 daily attendance of the preceding school year[, if the decline is
 not the result of the closing or reduction in personnel of a
 military base].
 (e)  For each school year, the commissioner shall adjust the
 average daily attendance of school districts that are entitled to
 funding on the basis of an adjusted average daily attendance under
 Subsection (b) [(b)(2)] so that:
 (1)  all districts are funded on the basis of the same
 percentage of the preceding year's actual average daily attendance;
 and
 (2)  the total cost to the state does not exceed $50
 million, or a greater amount provided by appropriation [the amount
 specifically appropriated for that year for purposes of Subsection
 (b)(2)].
 (f)  An open-enrollment charter school is not entitled to
 funding based on an adjustment under Subsection (b) [(b)(2)].
 SECTION 1.15.  Section 48.0051, Education Code, is amended
 by amending Subsections (a), (b), and (d) and adding Subsection
 (b-1) to read as follows:
 (a)  The [Subject to Subsection (a-1), the] commissioner
 shall adjust the average daily attendance of a school district or
 open-enrollment charter school under Section 48.005 in the manner
 provided by Subsection (b) if the district or school:
 (1)  provides the minimum number of minutes of
 operational and instructional time required under Section 25.081
 and commissioner rules adopted under that section over at least 175
 [180] days of instruction; and
 (2)  offers an additional 30 days of half-day
 instruction for students enrolled in prekindergarten through
 eighth [fifth] grade.
 (b)  Subject to Subsection (b-1), for [For] a school district
 or open-enrollment charter school described by Subsection (a), the
 commissioner shall increase the average daily attendance of the
 district or school under Section 48.005 by the amount that results
 from the quotient of the sum of attendance by students described by
 Subsection (a)(2) for each of the 30 additional instructional days
 of half-day instruction that are provided divided by 175 [180].
 (b-1)  For a school district or open-enrollment charter
 school described by Subsection (a) that provides at least 200 full
 days of instruction to students described by Subsection (a)(2), the
 commissioner shall increase the amount computed for the district or
 school under Subsection (b) by 50 percent.
 (d)  This section does not prohibit a school district from
 providing the minimum number of minutes of operational and
 instructional time required under Section 25.081 and commissioner
 rules adopted under that section over fewer than 175 [180] days of
 instruction.
 SECTION 1.16.  Subchapter A, Chapter 48, Education Code, is
 amended by adding Section 48.014 to read as follows:
 Sec. 48.014.  NOTICE FOR SCHOOL DISTRICTS REGARDING RECOURSE
 FOR INVALID PROPERTY VALUES. (a)  This section applies only to a
 school district located in an appraisal district in which the
 comptroller has certified the preliminary findings of the school
 district property value study under Section 403.302(g), Government
 Code, and determined that a school district located in the
 appraisal district has an invalid local value, regardless of
 whether the district meets the definition of an eligible school
 district under Section 403.3011, Government Code.
 (b)  For each school district to which this section applies
 and as soon as practicable after the comptroller has certified the
 preliminary findings of the school district property value study
 under Section 403.302(g), Government Code, the commissioner shall
 provide notice to the board of trustees of the district that
 includes information regarding the impact or possible impact of a
 final certification of an invalid local value on the district's
 finances, including:
 (1)  an estimate of the effect on the district's
 finances; and
 (2)  any right of recourse available to the district.
 (c)  Each school district shall annually report to the agency
 contact information for the members of the district's board of
 trustees for purposes of receiving the notice under this section.
 (d)  The commissioner shall coordinate with the comptroller
 to provide copies of the notice under this section to the board of
 directors of each applicable appraisal district.
 SECTION 1.17.  Section 48.051, Education Code, is amended by
 amending Subsections (a), (c), and (c-1) and adding Subsection
 (c-3) to read as follows:
 (a)  For each student in average daily attendance, not
 including the time students spend each day in career and technology
 education programs or in special education programs in a setting
 [an instructional arrangement] other than a general education
 setting [mainstream or career and technology education programs],
 for which an additional allotment is made under Subchapter C, a
 school district is entitled to an allotment equal to the lesser of
 the amounts that result from the following formulas:
 (1)  A = $6,500 + GYIA; [$6,160] or [the amount that
 results from the following formula:]
 (2)  A = ($6,500 + GYIA) [$6,160] X TR/MCR
 where:
 "A" is the allotment to which a district is entitled;
 "GYIA" is the guaranteed yield increment adjustment
 determined under Section 48.2561;
 "TR" is the district's tier one maintenance and operations
 tax rate, as provided by Section 45.0032; and
 "MCR" is the district's maximum compressed tax rate, as
 determined under Section 48.2551.
 (c)  During any school year for which the maximum amount of
 the basic allotment provided under Subsection (a) or (b) is greater
 than the maximum amount provided for the preceding school year, a
 school district must use at least 40 [30] percent of the amount, if
 the amount is greater than zero, that equals the product of the
 average daily attendance of the district multiplied by the amount
 of the difference between the district's funding under this chapter
 per student in average daily attendance for the current school year
 and the preceding school year to provide compensation increases to
 full-time district employees other than administrators as follows:
 (1)  75 percent must be used to increase the salary
 [compensation] paid to classroom teachers, [full-time librarians,
 full-time school counselors certified under Subchapter B, Chapter
 21, and full-time school nurses,] prioritizing higher salary
 increases [differentiated compensation] for classroom teachers in
 the following order:
 (A)  classroom teachers with 10 or more years of
 experience; and
 (B)  classroom teachers with [more than] five or
 more years of experience; and
 (2)  25 percent may be used as determined by the
 district to increase compensation paid to full-time district
 employees.
 (c-1)  A school district employee who received a salary
 increase under Subsection (c) [from a school district for the
 2019-2020 school year] is, as long as the employee remains employed
 by the same district and the district is receiving at least the same
 amount of funding as the amount of funding the district received for
 the [2019-2020] school year in which the requirement under
 Subsection (c) applied, entitled to salary that is at least equal to
 the salary the employee received for the preceding [2019-2020]
 school year.  This subsection does not apply if:
 (1)  the board of trustees of the school district at
 which the employee is employed:
 (A) [(1)]  complies with Sections 21.4021,
 21.4022, and 21.4032 in reducing the employee's salary; and
 (B) [(2)]  has adopted a resolution declaring a
 financial exigency for the district under Section 44.011; or
 (2)  the school district evaluates the employee's
 performance and the employee's performance rating is lower than the
 employee's performance rating during the school year in which the
 requirement under Subsection (c) applied.
 (c-3)  A school district must ensure that the salary
 increases provided under Subsection (c)(1) provide for:
 (1)  a difference of at least 40 percent between the
 average salary schedule increase provided to a classroom teacher
 described by Subsection (c)(1)(A) and a classroom teacher described
 by Subsection (c)(1)(B); or
 (2)  an increase based on performance in accordance
 with the district's compensation plan implemented under Section
 21.3521(d-1)(3).
 SECTION 1.18.  Section 48.101, Education Code, is amended to
 read as follows:
 Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
 Small and mid-sized districts are entitled to an annual allotment
 in accordance with this section.  In this section:
 (1)  "AA" is the district's annual allotment per
 student in average daily attendance;
 (2)  "ADA" is the number of students in average daily
 attendance for which the district is entitled to an allotment under
 Section 48.051, other than students in average daily attendance who
 do not reside in the district and are enrolled in a full-time
 virtual program; and
 (3)  "BA" is the basic allotment determined under
 Section 48.051.
 (b)  A school district that has fewer than 1,600 students in
 average daily attendance is entitled to an annual allotment for
 each student in average daily attendance based on the following
 formula:
 AA = ((1,600 - ADA) X .00057 [.0004]) X BA
 (c)  A school district that offers a kindergarten through
 grade 12 program and has less than 5,000 students in average daily
 attendance is entitled to an annual allotment for each student in
 average daily attendance based on the formula, of the following
 formulas, that results in the greatest annual allotment:
 (1)  the formula in Subsection (b), if the district is
 eligible for that formula; or
 (2)  AA = ((5,000 - ADA) X .00003 [.000025]) X BA.
 (d)  Instead of the allotment under Subsection (b) or (c)(1),
 a school district that has fewer than 300 students in average daily
 attendance and is the only school district located in and operating
 in a county is entitled to an annual allotment for each student in
 average daily attendance based on the following formula:
 AA = ((1,600 - ADA) X .0006 [.00047]) X BA
 SECTION 1.19.  Sections 48.104(a), (d), and (e), Education
 Code, are amended to read as follows:
 (a)  For each student who does not have a disability and
 resides in a residential placement facility in a district in which
 the student's parent or legal guardian does not reside, a district
 is entitled to an annual allotment equal to the basic allotment
 multiplied by 0.2 or, if the student is educationally
 disadvantaged, 0.28 [0.275]. For each full-time equivalent student
 who is in a remedial and support program under Section 29.081
 because the student is pregnant, a district is entitled to an annual
 allotment equal to the basic allotment multiplied by 2.41.
 (d)  The weights assigned to the five tiers of the index
 established under Subsection (c) are, from least to most severe
 economic disadvantage, 0.23 [0.225], 0.2425 [0.2375], 0.255
 [0.25], 0.2675 [0.2625], and 0.28 [0.275].
 (e)  If insufficient data is available for any school year to
 evaluate the level of economic disadvantage in a census block
 group, a school district is entitled to an annual allotment equal to
 the basic allotment multiplied by 0.23 [0.225] for each student who
 is educationally disadvantaged and resides in that census block
 group.
 SECTION 1.20.  Section 48.105(a), Education Code, is amended
 to read as follows:
 (a)  For each student in average daily attendance in a
 bilingual education or special language program under Subchapter B,
 Chapter 29, a district is entitled to an annual allotment equal to
 the basic allotment multiplied by:
 (1)  for an emergent bilingual student, as defined by
 Section 29.052:
 (A)  0.12 [0.1]; or
 (B)  0.17 [0.15] if the student is in a bilingual
 education program using a dual language immersion/one-way or
 two-way program model; and
 (2)  for a student not described by Subdivision (1),
 0.07 [0.05] if the student is in a bilingual education program using
 a dual language immersion/two-way program model.
 SECTION 1.21.  Section 48.108(a), Education Code, is amended
 to read as follows:
 (a)  For each student in average daily attendance in
 prekindergarten [kindergarten] through third grade, a school
 district is entitled to an annual allotment equal to the basic
 allotment multiplied by 0.1 if the student is:
 (1)  educationally disadvantaged; or
 (2)  an emergent bilingual student, as defined by
 Section 29.052, and is in a bilingual education or special language
 program under Subchapter B, Chapter 29.
 SECTION 1.22.  Section 48.112, Education Code, is amended by
 amending Subsections (c), (d), and (i) and adding Subsection (g-1)
 to read as follows:
 (c)  For each classroom teacher with a teacher designation
 under Section 21.3521 employed by a school district, the school
 district is entitled to an allotment equal to the following
 applicable base amount increased by the high needs and rural factor
 as determined under Subsection (d):
 (1)  $12,000, or an increased amount not to exceed
 $36,000 [$32,000] as determined under Subsection (d), for each
 master teacher;
 (2)  $9,000 [$6,000], or an increased amount not to
 exceed $25,000 [$18,000] as determined under Subsection (d), for
 each exemplary teacher; [and]
 (3)  $5,000 [$3,000], or an increased amount not to
 exceed $15,000 [$9,000] as determined under Subsection (d), for
 each recognized teacher; and
 (4)  $3,000, or an increased amount not to exceed
 $9,000 as determined under Subsection (d), for each:
 (A)  acknowledged teacher; or
 (B)  nationally board certified teacher.
 (d)  The high needs and rural factor is determined by
 multiplying the following applicable amounts by the average of the
 point value assigned to each student at a district campus under
 Subsection (e):
 (1)  $6,000 [$5,000] for each master teacher;
 (2)  $4,000 [$3,000] for each exemplary teacher; [and]
 (3)  $2,500 [$1,500] for each recognized teacher; and
 (4)  $1,500 for each:
 (A)  acknowledged teacher; or
 (B)  nationally board certified teacher.
 (g-1)  For a district that is designated as an enhanced
 teacher incentive allotment public school under Section
 21.3521(d-1), the commissioner shall increase the amount to which
 the district is entitled under this section by multiplying that
 amount by 1.1.
 (i)  A district shall annually certify that:
 (1)  funds received under this section were used as
 follows:
 (A)  at least 90 percent of each allotment
 received under Subsection (c) was used for the compensation of
 teachers employed at the campus at which the teacher for whom the
 district received the allotment is employed; [and]
 (B)  for a district whose allotment was increased
 under Subsection (g-1), the amount by which the allotment was
 increased under that subsection was used to meet the criteria to
 maintain a designation as an enhanced teacher incentive allotment
 public school under Section 21.3521(d-1); and
 (C)  any other funds received under this section
 were used for costs associated with implementing Section 21.3521,
 including efforts to support teachers in obtaining designations;
 and
 (2)  the district prioritized high needs campuses in
 the district in using funds received under this section.
 SECTION 1.23.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Section 48.116 to read as follows:
 Sec. 48.116.  FINE ARTS ALLOTMENT. (a)  For each student in
 average daily attendance enrolled in a fine arts education course
 approved by the agency under Subsection (b) in grades 6 through 12,
 a school district is entitled to an annual allotment equal to:
 (1)  if the student is not educationally disadvantaged,
 the basic allotment, or, if applicable, the sum of the basic
 allotment and the allotment under Section 48.101 to which the
 district is entitled, multiplied by 0.008; or
 (2) if the student is educationally disadvantaged, the
 amount determined under Subdivision (1) multiplied by two.
 (b)  The agency shall approve fine arts education courses
 that qualify for the allotment provided under this section.  The
 approved courses must include fine arts education courses that:
 (1)  are authorized by the State Board of Education,
 including music, art, theater, and dance;
 (2)  provide students with the knowledge and skills
 necessary for success in the fine arts; and
 (3)  require a student in full-time attendance to
 receive not less than 225 minutes of fine arts instruction per week.
 (c)  The agency shall annually publish a list of fine arts
 education courses approved under Subsection (b).
 (d)  The total amount of allotments provided under this
 section for a school year may not exceed $15 million.
 (e)  The agency may proportionally reduce each school
 district's allotment under this section if the amount appropriated
 for purposes of this section is insufficient to pay for all
 allotments to which districts are entitled under this section.
 SECTION 1.24.  Section 48.202(a-1), Education Code, is
 amended to read as follows:
 (a-1)  For purposes of Subsection (a), the dollar amount
 guaranteed level of state and local funds per weighted student per
 cent of tax effort ("GL") for a school district is:
 (1)  the greater of $129.52 or an amount set by
 appropriation [the amount of district tax revenue per weighted
 student per cent of tax effort available to a school district at the
 96th percentile of wealth per weighted student or the amount that
 results from multiplying 6,160, or the greater amount provided
 under Section 48.051(b), if applicable, by 0.016,] for the first
 eight cents by which the district's maintenance and operations tax
 rate exceeds the district's tier one tax rate; and
 (2)  subject to Subsection (f), the amount that results
 from multiplying the maximum amount of the basic allotment provided
 under Section 48.051 for the applicable school year [$6,160, or the
 greater amount provided under Section 48.051(b), if applicable,] by
 0.008, for the district's maintenance and operations tax effort
 that exceeds the amount of tax effort described by Subdivision (1).
 SECTION 1.25.  Section 48.2543, Education Code, is amended
 to read as follows:
 Sec. 48.2543.  ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
 [HOMESTEAD EXEMPTION].  [(a)  For the 2022-2023 school year, a
 school district is entitled to additional state aid to the extent
 that state and local revenue under this chapter and Chapter 49 is
 less than the state and local revenue that would have been available
 to the district under this chapter and Chapter 49 as those chapters
 existed on September 1, 2021, if any increase in the residence
 homestead exemption under Section 1-b(c), Article VIII, Texas
 Constitution, as proposed by the 87th Legislature, 3rd Called
 Session, 2021, had not occurred.]
 (a-1)  Beginning with the 2025-2026 [2023-2024] school year,
 a school district is entitled to additional state aid to the extent
 that state and local revenue under this chapter, other than former
 Subsection (a) of this section, and Chapter 49 is less than the
 state and local revenue that would have been available to the
 district under this chapter and Chapter 49 as those chapters
 existed on September 1, 2022, if any of the following had not
 occurred:
 (1)  an [any] increase in a residence homestead
 exemption under Section 1-b(c), Article VIII, Texas Constitution,
 and any additional limitation on tax increases under Section 1-b(d)
 of that article as proposed by the 88th Legislature, 2nd Called
 Session, 2023;
 (2)  a reduction of the amount of the limitation on tax
 increases provided by Section 11.26(a-10), Tax Code; or
 (3)  a reduction in the district's maximum compressed
 tax rate under Section 48.2555, as added by Chapter 1 (S.B. 2), Acts
 of the 88th Legislature, 2nd Called Session, 2023 [, had not
 occurred].
 (b)  For purposes of calculating state and local revenue
 under Subsection (a-1) for the applicable school year, the agency
 shall use the same values for formula funding adjustments that the
 agency used during that school year and exclude amounts provided by
 law that expired in a school year subsequent to the applicable
 school year, including the amounts provided under Sections 48.277,
 48.278, 48.279, and 48.281, as those sections existed for the
 applicable school year.  [The lesser of the school district's
 currently adopted maintenance and operations tax rate or the
 adopted maintenance and operations tax rate for:
 [(1)  the 2021 tax year is used for the purpose of
 determining additional state aid under Subsection (a); and
 [(2)  the 2022 tax year is used for the purpose of
 determining additional state aid under Subsection (a-1).]
 SECTION 1.26.  Subchapter F, Chapter 48, Education Code, is
 amended by adding Section 48.2561 to read as follows:
 Sec. 48.2561.  GUARANTEED YIELD INCREMENT ADJUSTMENT. (a)
 Not later than October 1 of each even-numbered year, for the
 subsequent state fiscal biennium, the agency shall determine the
 amount of the guaranteed yield increment adjustment for each state
 fiscal year of the biennium. The amount of the guaranteed yield
 increment adjustment is the difference between:
 (1)  the estimated cost to the state of maintaining the
 guaranteed level of state and local funds per weighted student per
 cent of tax effort under Section 48.202(a-1)(1) at the 96th
 percentile of wealth per weighted student for each year of the
 biennium; and
 (2)  the state cost of maintaining the guaranteed level
 of state and local funds per weighted student per cent of tax effort
 at the amount provided by Section 48.202(a-1)(1).
 (b)  Notwithstanding Subsection (a), the amount of the
 guaranteed yield increment adjustment for each state fiscal year of
 the state fiscal biennium beginning September 1, 2025, is $55.  This
 subsection expires September 1, 2027.
 SECTION 1.27.  Section 48.266, Education Code, is amended by
 amending Subsection (b) and adding Subsection (b-1) to read as
 follows:
 (b)  Except as provided by this subsection and subject to
 Subsection (b-1), the commissioner shall base the determinations
 under Subsection (a) on the estimates provided to the legislature
 under Section 48.269, or, if the General Appropriations Act
 provides estimates for that purpose, on the estimates provided
 under that Act, for each school district for each school year.  The
 commissioner shall reduce the entitlement of each district that has
 a final taxable value of property for the second year of a state
 fiscal biennium that is higher than the estimate under Section
 48.269 or the General Appropriations Act, as applicable.  A
 reduction under this subsection may not reduce the district's
 entitlement below the amount to which it is entitled at its actual
 taxable value of property.
 (b-1)  Periodically throughout the school year, the
 commissioner shall adjust the determinations made under Subsection
 (a) to reflect current school year estimates of a district's
 enrollment and average daily attendance, based on attendance
 reporting for each six-week interval.
 SECTION 1.28.  Section 48.283, Education Code, is amended to
 read as follows:
 Sec. 48.283.  ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
 IMPACTED BY COMPRESSION.  (a)  For the 2023-2024 and 2024-2025
 school years, a [A] school district that received an adjustment
 under Section 48.257(b) for the 2022-2023 school year is entitled
 to additional state aid [for each school year] in an amount equal to
 [the amount of that adjustment for the 2022-2023 school year less]
 the difference, if the difference is greater than zero, between:
 (1)  [the amount to which the district is entitled
 under this chapter for the current school year; and
 [(2)]  the amount of state and local revenue that would
 have been available to [which] the district [would be entitled]
 under this chapter and Chapter 49 for the 2023-2024 or 2024-2025
 [current] school year, as applicable, if the district's maximum
 compressed tax rate had not been reduced under Section 48.2555, as
 added by S.B. 2, Acts of the 88th Legislature, 2nd Called Session,
 2023; and
 (2)  the amount of state and local revenue available to
 the district under this chapter and Chapter 49 for the 2023-2024 or
 2024-2025 school year, as applicable.
 (b)  This section expires January 1, 2026.
 SECTION 1.29.  Subchapter F, Chapter 48, Education Code, is
 amended by adding Sections 48.2711, 48.2831, and 48.284 to read as
 follows:
 Sec. 48.2711.  ADJUSTMENT FOR LOSS OF REVENUE DUE TO USE OF
 STATE VALUE. (a) This section applies only to a school district:
 (1)  for which the state value for the district's
 taxable value of property is used under Section 403.302(c),
 Government Code; and
 (2)  in which the district's board of trustees adopts a
 resolution during the school year recognizing the need for an
 adjustment under this section.
 (b)  For each school district to which this section applies,
 the agency shall determine whether the district's entitlement under
 this chapter for a school year is greater if the district's taxable
 value of property is:
 (1)  the local value; or
 (2)  the state value as determined by the comptroller
 under Sections 403.302(a) and (b), Government Code.
 (c)  If the agency determines under Subsection (b) that the
 school district's entitlement is greater for the applicable school
 year using the local value for the district's taxable value of
 property, the commissioner shall increase state aid or adjust the
 limit on local revenue under Section 48.257 for the district for
 that school year in an amount equal to:
 (1)  for the first school year in which this subsection
 applies to the district, the difference between the amounts
 determined under Subsection (b);
 (2)  for the second consecutive school year in which
 this subsection applies to the district, 70 percent of the
 difference between the amounts determined under Subsection (b); and
 (3)  for the third consecutive school year in which
 this subsection applies to the district, 40 percent of the
 difference between the amounts determined under Subsection (b).
 (d)  A school district may not receive an adjustment under
 this section for more than three consecutive school years unless
 the legislature specifically appropriates money for the purpose of
 making adjustments under this section for the fourth or a
 subsequent consecutive school year.
 (e)  For purposes of determining the number of consecutive
 school years for which this section applies to a school district,
 the commissioner may not consider a school year before the
 2025-2026 school year.
 (f)  A school year in which the comptroller determines a
 school district's local value to be valid under Section 403.302(c),
 Government Code, that occurs after the district receives an
 adjustment under this section is not included in calculating
 consecutive school years under Subsection (c) or (d) and is not
 considered a break in consecutive school years, except as provided
 by Subsection (h).
 (g)  A school district may not receive an adjustment under
 this section for a school year in which the district is determined
 to be an eligible school district, as defined by Section 403.3011,
 Government Code. A school year in which the district is not
 eligible for an adjustment under this subsection is included in
 calculating consecutive school years under Subsections (c) and (d).
 (h)  Except as provided by Subsection (d), a school district
 that receives an adjustment under this section for three
 consecutive school years is not eligible to receive an adjustment
 under this section in the subsequent school year but may be again
 eligible for the adjustment following two consecutive school years
 for which the local value is used for the district's taxable value
 of property under Section 403.302(c), Government Code.
 (i)  The total amount of adjustments made under this section
 for a school year may not exceed $60 million.
 (j)  If the total amount of adjustments for which school
 districts are eligible under this section for a school year exceeds
 the limit under Subsection (i), the commissioner shall prioritize
 school districts experiencing the greatest percentage reduction in
 funding, as determined based on the difference between the amounts
 determined under Subsection (b).
 (k)  A determination made by the commissioner under this
 section is final and may not be appealed.
 Sec. 48.2831.  ADDITIONAL STATE AID TO ENSURE MINIMUM
 FUNDING LEVEL. (a) For the 2025-2026 school year, a school district
 is entitled to additional state aid in an amount necessary to ensure
 the district receives state and local revenue under Chapter 46,
 this chapter, and Chapter 49 in an amount at least equal to the sum
 of:
 (1)  state and local revenue that would have been
 available to the district for the 2025-2026 school year under
 Chapter 46, this chapter, and Chapter 49, as those chapters existed
 on September 1, 2024; and
 (2)  $200 multiplied by the number of students in
 weighted average daily attendance in the district for the 2025-2026
 school year, determined under this chapter as this chapter existed
 on September 1, 2024.
 (b)  Beginning with the 2026-2027 school year and subject to
 Subsections (c) and (d), a school district is entitled to
 additional state aid in an amount necessary to ensure the district
 receives state and local revenue under Chapter 46, this chapter,
 and Chapter 49 in an amount at least equal to the greater of:
 (1)  the amount calculated under Subsection (a); or
 (2)  the sum of:
 (A)  state and local revenue that would have been
 available to the district for the applicable school year under
 Chapter 46, this chapter, and Chapter 49, as those chapters existed
 on September 1, 2024; and
 (B)  $200 multiplied by the number of students in
 weighted average daily attendance in the district for the
 applicable school year, determined under this chapter as this
 chapter existed on September 1, 2024.
 (c)  Beginning with the 2027-2028 school year, the amount of
 additional state aid to which a school district is entitled under
 this section shall be determined by multiplying the amount
 calculated under Subsection (b) by:
 (1)  for the 2027-2028 school year, 0.8;
 (2)  for the 2028-2029 school year, 0.6;
 (3)  for the 2029-2030 school year, 0.4; and
 (4)  for the 2030-2031 school year, 0.2.
 (d)  Beginning with the 2027-2028 school year, a school
 district may not receive additional state aid under Subsection (b)
 in an amount that exceeds the amount the district received under
 that subsection for the 2026-2027 school year.
 (e)  For the purposes of Subsections (a) and (b), local
 revenue under Chapter 46 includes only the eligible local funds for
 the instructional facilities allotment under Section 46.003 and the
 existing debt allotment under Section 46.032.
 (f)  The amount of additional state aid to which a district
 is entitled under this section shall be calculated only after all
 other funding to which the district is entitled under Chapter 46,
 this chapter, and Chapter 49 has been calculated.
 (g)  The agency shall notify the Legislative Budget Board as
 soon as practicable after the agency determines that no school
 districts qualify for additional state aid under this section.
 (h)  This section expires September 1, 2031.
 Sec. 48.284.  ADDITIONAL STATE AID FOR REGIONAL INSURANCE
 COST DIFFERENTIALS. (a) In this section, "catastrophe area" and
 "first tier coastal county" have the meanings assigned by Section
 2210.003, Insurance Code.
 (b)  This section applies to a school district or
 open-enrollment charter school that has the following property
 located in a first tier coastal county or an area designated in 2024
 as a catastrophe area:
 (1)  the central administrative office of the district
 or school; and
 (2)  a majority of campuses of the district or school.
 (c)  A school district or open-enrollment charter school to
 which this section applies is entitled to additional state aid for
 each student in adjusted average daily attendance in an amount
 equal to the difference between, for the 2023-2024 school year, or a
 different school year specified by appropriation:
 (1)  the total amount paid for property and casualty
 insurance by districts and schools in the county or catastrophe
 area described by Subsection (b) in which the district's or school's
 property is located divided by the total number of students in
 average daily attendance for all districts and schools in the
 county or catastrophe area; and
 (2)  the total amount paid for property and casualty
 insurance by districts and schools in the state divided by the total
 number of students in average daily attendance in the state.
 (d)  For purposes of Subsection (c), the average daily
 attendance of a school district that qualifies for an allotment
 under Section 48.101 is the district's average daily attendance
 multiplied by the sum of one and the decimal fraction used to
 determine the district's allotment under that section.
 SECTION 1.30.  Sections 12.1058(e), 12.106(a-4), and
 48.2542, Education Code, are repealed.
 SECTION 1.31.  Immediately following the effective date of
 this Act, a school district or open-enrollment charter school shall
 redesignate a teacher who holds a designation made under Section
 21.3521, Education Code, before the effective date of this Act, to
 reflect the teacher's designation under Section 21.3521, Education
 Code, as amended by this article.  Funding provided to a school
 district under Section 48.112, Education Code, as amended by this
 article, for a teacher who held a designation made under Section
 21.3521, Education Code, as that section existed immediately before
 the effective date of this Act, shall be increased to reflect the
 teacher's redesignation under Section 21.3521, Education Code, as
 amended by this article.
 SECTION 1.32.  Not later than September 1, 2026, the
 commissioner of education shall post on the Texas Education
 Agency's Internet website the initial list of enhanced teacher
 incentive allotment public schools required by Section
 21.3521(d-3), Education Code, as added by this article.
 SECTION 1.33.  As soon as practicable after the effective
 date of this Act, the commissioner of education shall establish the
 grant program required under Section 29.941, Education Code, as
 added by this article.
 ARTICLE 2.  TEACHER PREPARATION AND CHANGES RELATED TO EMPLOYEES
 SECTION 2.01.  Section 12A.004(a), Education Code, is
 amended to read as follows:
 (a)  A local innovation plan may not provide for the
 exemption of a district designated as a district of innovation from
 the following provisions of this title:
 (1)  a state or federal requirement applicable to an
 open-enrollment charter school operating under Subchapter D,
 Chapter 12;
 (2)  Subchapters A, C, D, and E, Chapter 11, except that
 a district may be exempt from Sections 11.1511(b)(5) and (14) and
 Section 11.162;
 (3)  the employment of uncertified classroom teachers
 under Section 21.0032;
 (4)  parental notification requirements under Section
 21.057;
 (5)  state curriculum and graduation requirements
 adopted under Chapter 28; and
 (6) [(4)]  academic and financial accountability and
 sanctions under Chapters 39 and 39A.
 SECTION 2.02.  Section 21.001, Education Code, is amended by
 adding Subdivision (3-b) to read as follows:
 (3-b)  "Teacher of record" means a person employed by a
 school district who teaches the majority of the instructional day
 in an academic instructional setting and is responsible for
 evaluating student achievement and assigning grades.
 SECTION 2.03.  Subchapter A, Chapter 21, Education Code, is
 amended by adding Sections 21.0032 and 21.0033 to read as follows:
 Sec. 21.0032.  EMPLOYMENT OF UNCERTIFIED CLASSROOM
 TEACHERS. (a)  A school district may not employ as a classroom
 teacher for a course in the foundation curriculum under Section
 28.002 a person who does not hold an appropriate certificate or
 permit issued by the State Board for Educator Certification under
 Subchapter B.
 (a-1)  Notwithstanding Subsection (a), a school district may
 employ as a classroom teacher for a course in the foundation
 curriculum under Section 28.002 not more than the following
 applicable percentage of classroom teachers who do not hold an
 appropriate certificate or permit issued by the State Board for
 Educator Certification under Subchapter B:
 (1)  for the 2026-2027 school year, 20 percent;
 (2)  for the 2027-2028 school year, 15 percent;
 (3)  for the 2028-2029 school year, 10 percent; and
 (4)  for the 2029-2030 school year, 5 percent.
 (a-2)  This subsection and Subsection (a-1) expire September
 1, 2031.
 (b)  This section does not preclude a school district from:
 (1)  receiving a waiver under Section 7.056; or
 (2)  issuing a school district teaching permit under
 Section 21.055.
 Sec. 21.0033.  TEACHER CERTIFICATION INCENTIVE.  (a)  From
 money appropriated or otherwise available for the purpose, the
 agency shall provide to each school district a one-time payment of
 $1,000 for each classroom teacher employed by the district who:
 (1)  was hired for the 2022-2023 or 2023-2024 school
 year as a first-year teacher;
 (2)  was uncertified on January 1, 2025;
 (3)  earned a standard certificate under Subchapter B
 by the end of the 2025-2026 school year; and
 (4)  was continuously employed by the district since
 the school year described by Subdivision (1).
 (b)  This section expires September 1, 2027.
 SECTION 2.04.  Subchapter B, Chapter 21, Education Code, is
 amended by adding Section 21.0411 to read as follows:
 Sec. 21.0411.  WAIVER OR PAYMENT OF CERTAIN EXAMINATION AND
 CERTIFICATION FEES. (a) Notwithstanding a rule adopted under
 Section 21.041(c), the board shall, for a person applying for a
 certification in special education, bilingual education, or
 another area specified by the General Appropriations Act, waive:
 (1)  a certification examination fee imposed by the
 board for the first administration of the examination to the
 person; and
 (2)  a fee associated with the application for
 certification by the person.
 (b)  The board shall pay to a vendor that administers a
 certification examination described by Subsection (a) a fee
 assessed by that vendor for the examination of a person applying for
 a certification described by Subsection (a) for the first
 administration of the examination to the person.
 SECTION 2.05.  Subchapter I, Chapter 21, Education Code, is
 amended by adding Section 21.416 to read as follows:
 Sec. 21.416.  EMPLOYED RETIREE EDUCATOR REIMBURSEMENT GRANT
 PROGRAM. (a)  From money appropriated or otherwise available, the
 commissioner shall establish and administer a grant program to
 reimburse a school district, an open-enrollment charter school, the
 Windham School District, the Texas School for the Deaf, or the Texas
 School for the Blind and Visually Impaired for the increased
 contributions to the Teacher Retirement System of Texas associated
 with hiring a teacher, or an educator providing special education
 services, who retired before September 1, 2024.
 (b)  In appropriating money for grants awarded under this
 section, the legislature may provide for, modify, or limit amounts
 appropriated for that purpose in the General Appropriations Act,
 including by:
 (1)  providing, notwithstanding Subsection (a), a date
 or date range other than September 1, 2024, before which a teacher
 or educator must have retired for a school district, an
 open-enrollment charter school, the Windham School District, the
 Texas School for the Deaf, or the Texas School for the Blind and
 Visually Impaired to be eligible; or
 (2)  limiting eligibility to a district or school
 described by Subdivision (1) that hires a retired teacher or
 educator, as applicable:
 (A)  who holds a certain certification;
 (B)  to teach a certain subject or grade;
 (C)  in a certain geographical area; or
 (D)  to provide instruction to certain students,
 including to students with disabilities.
 (c)  The commissioner shall proportionally reduce the amount
 of money awarded to school districts, open-enrollment charter
 schools, the Windham School District, the Texas School for the
 Deaf, and the Texas School for the Blind and Visually Impaired under
 this section if the number of grant applications by eligible
 districts or schools exceeds the number of grants the commissioner
 could award with the money appropriated or otherwise available for
 the purpose.
 (d)  A school district, an open-enrollment charter school,
 the Windham School District, the Texas School for the Deaf, or the
 Texas School for the Blind and Visually Impaired may use money
 received under this section to make required payments under Section
 825.4092, Government Code.
 SECTION 2.06.  Chapter 21, Education Code, is amended by
 adding Subchapter R to read as follows:
 SUBCHAPTER R. GROW YOUR OWN PARTNERSHIP PROGRAM
 Sec. 21.901.  DEFINITIONS. In this subchapter:
 (1)  "Cooperating teacher" means a classroom teacher
 who:
 (A)  has at least three full school years of
 teaching experience with a superior record of assisting students in
 achieving improvement in student performance;
 (B)  is employed by a school district or
 open-enrollment charter school participating in the program under
 this subchapter and paired with a student or employee participating
 in the program at the district or school; and
 (C)  provides coaching to a student or employee
 participating in the program in the teacher's classroom.
 (2)  "Program" means the Grow Your Own Partnership
 Program established under Section 21.902.
 Sec. 21.902.  GROW YOUR OWN PARTNERSHIP PROGRAM. (a) The
 commissioner shall establish the Grow Your Own Partnership Program
 to enable qualified institutions of higher education and educator
 preparation programs, as determined by the commissioner, to form
 partnerships with school districts or open-enrollment charter
 schools to establish innovative staffing pipelines to ensure the
 availability of high-quality classroom teachers to benefit future
 district or school students.
 (b)  The program must be designed to form partnerships that
 support:
 (1)  high school students in completing career and
 technical education courses that help prepare the students to
 become classroom teachers; or
 (2)  district or school employees who do not hold a
 teaching certificate in completing an associate degree or the first
 60 hours of a bachelor's degree to enable the person to become a
 classroom teacher while employed by the district or school.
 (c)  A school district or open-enrollment charter school may
 participate in the program on the approval of an application
 submitted to the commissioner by the district or school.
 (d)  A school district or open-enrollment charter school
 participating in the program shall:
 (1)  for a partnership described by Subsection (b)(1),
 provide:
 (A)  authentic opportunities, which may be paid or
 unpaid, for students to practice teaching under the supervision of
 a cooperating teacher; and
 (B)  guidance and other transition supports as a
 student begins an undergraduate degree program that offers a route
 to teacher preparation;
 (2)  for a partnership described by Subsection (b)(2),
 provide for a district or school employee:
 (A)  scheduled release time to support the
 completion of an associate degree or the first 60 hours of a
 bachelor's degree;
 (B)  authentic opportunities to practice teaching
 under the supervision of a cooperating teacher;
 (C)  on-the-job training aligned with the
 standards for educator certification established by the board;
 (D)  a job assignment that includes instructional
 support for students enrolled in the district or school; and
 (E)  guidance and other transition supports as the
 employee begins a program to satisfy the teacher preparation
 requirements under Subchapter B;
 (3)  enter into a written agreement with an institution
 of higher education;
 (4)  require an employee participating in a partnership
 described by Subsection (b)(2) to, as a condition for
 participation, earn a bachelor's degree and enroll in an educator
 preparation program within three years of completion of an
 associate degree or the first 60 hours of a bachelor's degree; and
 (5)  provide any information required by the agency
 regarding the district's or school's implementation of the program.
 (e)  A school district or open-enrollment charter school may
 use money received under Section 48.157 to implement the program
 and pay tuition and fees, including certification fees, for
 students or employees participating in the program.
 (f)  A school district or open-enrollment charter school may
 only pair a student or employee participating in the program with a
 cooperating teacher who agrees to participate in that role in the
 program at the district or school.
 (g)  A student or employee participating in the program may
 not serve:
 (1)  as a teacher of record; or
 (2)  except as provided by Subsection (h), in a
 position in which the student or employee has the primary or sole
 responsibility of providing instruction or supervision to
 students.
 (h)  A student or employee participating in the program may
 serve in a position described by Subsection (g)(2) for the limited
 purpose of gaining experience in the position.  The student's or
 employee's amount of time serving in that position may not exceed
 the amount of time during which the teacher of record for the
 students has the primary or sole responsibility of providing
 instruction or supervision to those students.
 Sec. 21.903.  RULES. The commissioner shall adopt rules as
 necessary to implement this subchapter.
 SECTION 2.07.  Subchapter D, Chapter 48, Education Code, is
 amended by adding Section 48.157 to read as follows:
 Sec. 48.157.  GROW YOUR OWN PARTNERSHIP PROGRAM ALLOTMENT.
 (a) Subject to Subsection (d), for each district employee
 participating in a partnership described by Section 21.902(b)(2), a
 school district is entitled to an annual allotment equal to the sum
 of:
 (1)  $8,000; and
 (2)  the high needs and rural factor, as determined
 under Subsection (b), multiplied by $1,000.
 (b)  The high needs and rural factor is the lesser of:
 (1)  the average of the point value assigned to each
 student at a district campus under Sections 48.112(e) and (f); or
 (2)  4.0.
 (c)  The Texas School for the Deaf and the Texas School for
 the Blind and Visually Impaired are entitled to an allotment under
 this section. If the commissioner determines that assigning point
 values under Subsection (b) to students enrolled in the Texas
 School for the Deaf or the Texas School for the Blind and Visually
 Impaired is impractical, the commissioner may use the average point
 value assigned for those students' home districts for purposes of
 calculating the high needs and rural factor.
 (d)  Unless a greater number of individuals is provided for
 by appropriation for that school year, a school district may
 receive an allotment under this section for a school year for not
 more than 40 district employees.
 (e)  The agency shall provide 50 percent of the money the
 school district is entitled to receive under this section for a
 district employee only on the employee's successful completion of a
 bachelor's degree by the deadline established by the agency.
 SECTION 2.08.  Section 12A.004(a), Education Code, as
 amended by this article, applies to each local innovation plan
 adopted under Chapter 12A, Education Code, regardless of whether
 the plan was adopted before, on, or after the effective date of this
 article. A local innovation plan adopted or renewed before the
 effective date of this article must comply with Section 12A.004(a),
 Education Code, as amended by this article, not later than
 September 1, 2025.
 ARTICLE 3.  SPECIAL EDUCATION
 SECTION 3.01.  Section 7.021(b)(10), Education Code, is
 amended to read as follows:
 (10)  The agency shall carry out duties assigned under
 Section 30.002 concerning children who have visual impairments, are
 deaf or hard of hearing, or are deaf-blind [with visual
 impairments].
 SECTION 3.02.  Section 7.055(b)(25), Education Code, is
 amended to read as follows:
 (25)  The commissioner shall develop a system to
 distribute to school districts or regional education service
 centers a special supplemental allowance for students with visual
 impairments as required under Section 30.0021 [30.002].
 SECTION 3.03.  Section 8.051(d), Education Code, is amended
 to read as follows:
 (d)  Each regional education service center shall maintain
 core services for purchase by school districts and campuses.  The
 core services are:
 (1)  training and assistance in:
 (A)  teaching each subject area assessed under
 Section 39.023; and
 (B)  providing instruction in personal financial
 literacy as required under Section 28.0021;
 (2)  training and assistance in providing each program
 that qualifies for a funding allotment under Section 48.102,
 48.1021, 48.103, 48.104, 48.105, or 48.109;
 (3)  assistance specifically designed for a school
 district or campus assigned an unacceptable performance rating
 under Section 39.054;
 (4)  training and assistance to teachers,
 administrators, members of district boards of trustees, and members
 of site-based decision-making committees;
 (5)  assistance specifically designed for a school
 district that is considered out of compliance with state or federal
 special education requirements, based on the agency's most recent
 compliance review of the district's special education programs; and
 (6)  assistance in complying with state laws and rules.
 SECTION 3.04.  Sections 28.025(c-7) and (c-8), Education
 Code, are amended to read as follows:
 (c-7)  Subject to Subsection (c-8), a student who is enrolled
 in a special education program under Subchapter A, Chapter 29, may
 earn the distinguished level of achievement under Subsection (b-15)
 or an endorsement on the student's transcript under Subsection
 (c-1) by:
 (1)  successfully completing, with or without
 modification of the curriculum:
 (A)  the curriculum requirements identified by
 the State Board of Education under Subsection (a); [and]
 (B)  for the distinguished level of achievement,
 the additional curriculum requirements prescribed under Subsection
 (b-15); and
 (C)  for an endorsement, the additional
 [endorsement] curriculum requirements prescribed by the State
 Board of Education under Subsection (c-2); and
 (2)  successfully completing all curriculum
 requirements for the distinguished level of achievement or that
 endorsement adopted by the State Board of Education:
 (A)  without modification of the curriculum; or
 (B)  with modification of the curriculum,
 provided that the curriculum, as modified, is sufficiently rigorous
 as determined by the student's admission, review, and dismissal
 committee and documented in the student's individualized education
 program.
 (c-8)  For purposes of Subsection (c-7), the admission,
 review, and dismissal committee of a student in a special education
 program under Subchapter A, Chapter 29, shall determine whether the
 student is required to achieve satisfactory performance on an
 end-of-course assessment instrument to earn the distinguished
 level of achievement or an endorsement on the student's transcript.
 SECTION 3.05.  Section 29.001, Education Code, is amended to
 read as follows:
 Sec. 29.001.  IMPLEMENTATION OF SPECIAL EDUCATION
 LAW [STATEWIDE PLAN].  (a)  As the state education agency
 responsible for carrying out the purposes of Part B, Individuals
 with Disabilities Education Act (20 U.S.C. Section 1411 et seq.),
 the [The] agency shall develop, and revise [modify] as necessary, a
 comprehensive system to ensure statewide and local compliance
 [design, consistent] with federal and state law related to special
 education[, for the delivery of services to children with
 disabilities in this state that includes rules for the
 administration and funding of the special education program so that
 a free appropriate public education is available to all of those
 children between the ages of three and 21].
 (b)  The comprehensive system must [statewide design shall]
 include the provision of services primarily through school
 districts and shared services arrangements, supplemented by
 regional education service centers.
 (c)  The comprehensive system must focus on maximizing
 student outcomes and include [agency shall also develop and
 implement a statewide plan with programmatic content that includes
 procedures designed to]:
 (1)  rulemaking, technical assistance, guidance
 documents, monitoring protocols, data elements necessary for
 statewide reporting, and other resources as necessary to implement
 and ensure compliance with federal and state law related to special
 education [ensure state compliance with requirements for
 supplemental federal funding for all state-administered programs
 involving the delivery of instructional or related services to
 students with disabilities];
 (2)  the facilitation of [facilitate] interagency
 coordination when other state agencies are involved in the delivery
 of instructional or related services to students with disabilities;
 (3)  the pursuit of [periodically assess statewide
 personnel needs in all areas of specialization related to special
 education and pursue] strategies to meet statewide special
 education and related services personnel [those] needs [through a
 consortium of representatives from regional education service
 centers, local education agencies, and institutions of higher
 education and through other available alternatives];
 (4)  ensuring [ensure] that regional education service
 centers throughout the state maintain a regional support function,
 which may include procedures for service centers to assist school
 districts in identifying existing public or private educational or
 related services in each region, cooperatively developing programs
 for students with disabilities, providing to or obtaining for
 school districts special equipment, delivering services, and
 facilitating [direct service delivery and a component designed to
 facilitate] the placement of students with disabilities who cannot
 be appropriately served in their resident districts;
 (5)  [allow the agency to] effectively monitoring
 [monitor] and periodically conducting [conduct] site visits of all
 school districts to ensure that rules adopted under this subchapter
 [section] are applied in a consistent and uniform manner, to ensure
 that districts are complying with those rules, and to ensure that
 annual statistical reports filed by the districts and not otherwise
 available through the Public Education Information Management
 System under Sections 48.008 and 48.009 are accurate and complete;
 and
 (6)  the provision of training and technical assistance
 to ensure that:
 (A)  appropriately trained personnel are involved
 in the diagnostic and evaluative procedures operating in all
 districts and that those personnel routinely serve on district
 multidisciplinary evaluation teams and admissions, review, and
 dismissal committees;
 (B)  [(7)  ensure that] an individualized
 education program for each student with a disability is properly
 developed, implemented, and maintained in the least restrictive
 environment that is appropriate to meet the student's educational
 needs;
 (C)  appropriately trained personnel are
 available to students with disabilities who have significant
 behavioral support needs, including by providing behavioral
 support training for a paraprofessional or teacher placed in a
 classroom or other setting that is intended to provide specialized
 behavioral supports to a student with a disability, as needed or at
 regular intervals as provided in the student's individualized
 education program;
 (D)  [(8)  ensure that,] when appropriate, each
 student with a disability is provided an opportunity to participate
 in career and technology and physical education classes[, in
 addition to participating in regular or special classes];
 (E)  [(9)  ensure that] each student with a
 disability is provided necessary related services;
 (F)  school districts have an opportunity to
 request technical assistance from the agency or a regional
 education service center in establishing classroom environments
 conducive to learning for students with disabilities, including
 environments for students whose data indicate behavior that
 significantly impedes the student's own learning and the learning
 of other students;
 (G)  [(10)  ensure that] an individual assigned
 to act as a surrogate parent for a child with a disability, as
 provided by 20 U.S.C. Section 1415(b), is required to:
 (i) [(A)]  complete a training program that
 complies with minimum standards established by agency rule;
 (ii) [(B)]  visit the child and the child's
 school;
 (iii) [(C)]  consult with persons involved
 in the child's education, including teachers, caseworkers,
 court-appointed volunteers, guardians ad litem, attorneys ad
 litem, foster parents, and caretakers;
 (iv) [(D)]  review the child's educational
 records;
 (v) [(E)]  attend meetings of the child's
 admission, review, and dismissal committee;
 (vi) [(F)]  exercise independent judgment
 in pursuing the child's interests; and
 (vii) [(G)]  exercise the child's due
 process rights under applicable state and federal law; and
 (H)  [(11)  ensure that] each district develops a
 process to be used by a teacher who instructs a student with a
 disability in a general education [regular] classroom setting:
 (i) [(A)]  to request a review of the
 student's individualized education program;
 (ii) [(B)]  to provide input in the
 development of the student's individualized education program;
 (iii) [(C)]  that provides for a timely
 district response to the teacher's request; and
 (iv) [(D)]  that provides for notification
 to the student's parent or legal guardian of that response.
 SECTION 3.06.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Section 29.0012 to read as follows:
 Sec. 29.0012.  ANNUAL MEETING ON SPECIAL EDUCATION. (a)  At
 least once each year, the board of trustees of a school district or
 the governing body of an open-enrollment charter school shall
 include during a public meeting a discussion of the performance of
 students receiving special education services at the district or
 school.
 (b)  The agency by rule shall adopt a set of performance
 indicators for measuring and evaluating the quality of learning and
 achievement for students receiving special education services at
 the school district or open-enrollment charter school to be
 considered at a meeting held under this section.  The indicators
 must include performance on the college, career, or military
 readiness outcomes described by Section 48.110.
 SECTION 3.07.  Section 29.003, Education Code, is amended to
 read as follows:
 Sec. 29.003.  ELIGIBILITY CRITERIA.  (a)  The agency shall
 develop specific eligibility criteria based on the general
 classifications established by this section and in accordance with
 federal law [with reference to contemporary diagnostic or
 evaluative terminologies and techniques].  Eligible students with
 disabilities shall enjoy the right to a free appropriate public
 education, which may include instruction in the general education
 [regular] classroom, instruction through special teaching, or
 instruction through contracts approved under this subchapter.
 Instruction shall be supplemented by the provision of related
 services when appropriate.
 (b)  A student is eligible to participate in a school
 district's special education program [if the student]:
 (1)  from birth through [is not more than] 21 years of
 age if the student [and] has a visual [or auditory] impairment, is
 deaf or hard of hearing, or is deaf-blind and that disability
 prevents the student from being adequately or safely educated in
 public school without the provision of special education services;
 [or]
 (2)  from three years of age through nine years of age
 if the student is experiencing developmental delays as described by
 20 U.S.C. Section 1401(3)(B) and defined by commissioner rule; or
 (3)  from 3 years of age through [is at least three but
 not more than] 21 years of age if the student [and] has one or more
 of the [following] disabilities described by 20 U.S.C. Section
 1401(3)(A) and that disability prevents the student from being
 adequately or safely educated in public school without the
 provision of special education services[:
 [(A)  physical disability;
 [(B)  intellectual or developmental disability;
 [(C)  emotional disturbance;
 [(D)  learning disability;
 [(E)  autism;
 [(F)  speech disability; or
 [(G)  traumatic brain injury].
 SECTION 3.08.  Sections 29.005(a), (d), and (e), Education
 Code, are amended to read as follows:
 (a)  Before a child is enrolled in a special education
 program of a school district, the district shall establish a
 committee composed of the persons required under 20 U.S.C. Section
 1414(d) to develop the child's individualized education program.
 If a committee is required to include a general [regular] education
 teacher, the [regular education] teacher included must, to the
 extent practicable, be a teacher who is responsible for
 implementing a portion of the child's individualized education
 program.
 (d)  If the primary language of the child's parent is a
 language other than [is unable to speak] English, the district
 shall:
 (1)  provide the parent with a written or audiotaped
 copy of the child's individualized education program translated
 into Spanish if Spanish is the parent's primary [native] language;
 or
 (2)  if the parent's primary [native] language is a
 language other than Spanish, make a good faith effort to provide the
 parent with a written or audiotaped copy of the child's
 individualized education program translated into the parent's
 primary [native] language.
 (e)  The commissioner by rule may require a school district
 to include in the individualized education program of a student
 with autism [or another pervasive developmental disorder] any
 information or requirement determined necessary to ensure the
 student receives a free appropriate public education as required
 under the Individuals with Disabilities Education Act (20 U.S.C.
 Section 1400 et seq.).
 SECTION 3.09.  Section 29.0051, Education Code, is amended
 by adding Subsection (d) to read as follows:
 (d)  From federal money available for the purpose, the
 commissioner may develop or procure the model form developed under
 Subsection (a) in a digital format.  If the commissioner develops or
 procures the model form in a digital format, the commissioner shall
 adopt rules regarding school district use of the form in that
 format.
 SECTION 3.10.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Section 29.0056 to read as follows:
 Sec. 29.0056.  INFORMATION REGARDING STATE SUPPORTED LIVING
 CENTERS. (a)  In this section, "state supported living center" has
 the meaning assigned by Section 531.002, Health and Safety Code.
 (b)  The Health and Human Services Commission, in
 collaboration with the agency and stakeholders who represent the
 full continuum of educational residential placement options, shall
 develop and provide to the agency materials regarding educational
 residential placement options for children who may qualify for
 placement in a state supported living center. The agency shall make
 the materials developed under this subsection available to school
 districts.
 (c)  At a meeting of a child's admission, review, and
 dismissal committee at which residential placement is discussed,
 the school district shall provide to the child's parent the
 materials developed under Subsection (b).
 SECTION 3.11.  Sections 29.006(a) and (c), Education Code,
 are amended to read as follows:
 (a)  The governor shall appoint a continuing advisory
 committee consistent with [, composed of 17 members, under] 20
 U.S.C. Section 1412(a)(21).  At least one member appointed under
 this subsection must be a director of special education programs
 for a school district.
 (c)  Members of the committee are appointed for staggered
 terms of four years with the terms of half of the [eight or nine]
 members or, for an odd number of members, half of the members
 rounded down or half of the members rounded up expiring on February
 1 of each odd-numbered year.
 SECTION 3.12.  Section 29.008, Education Code, is amended to
 read as follows:
 Sec. 29.008.  CONTRACTS FOR SERVICES; RESIDENTIAL AND DAY
 PLACEMENT PROGRAMS.  (a)  The commissioner shall set minimum
 standards for and develop and update as necessary a list of approved
 public or private facilities, institutions, agencies, or
 businesses inside or outside of this state that a [A] school
 district, shared services arrangement unit, or regional education
 service center may contract with [a public or private facility,
 institution, or agency inside or outside of this state] for the
 provision of services to students with disabilities in a
 residential or day placement program.
 (a-1)  [Each contract for residential placement must be
 approved by the commissioner.]  The commissioner may approve a
 facility, institution, agency, or business under Subsection (a)
 [residential placement contract] only after at least a programmatic
 evaluation of personnel qualifications, costs, adequacy of
 physical plant and equipment, and curriculum content.  [The
 commissioner may approve either the whole or a part of a facility or
 program.]
 (a-2)  Each contract described by this section must be
 approved by the commissioner.  A school district, shared services
 arrangement unit, or regional education service center seeking to
 place a student in a residential or day placement program that is
 not on the list developed under Subsection (a) must submit to the
 commissioner an application for approval in accordance with
 Subsections (a) and (a-1).
 (b)  Except as provided by Subsection (c), costs of an
 approved contract for residential placement may be paid from a
 combination of federal, state, and local funds.  The local share of
 the total contract cost for each student is that portion of the
 local tax effort that exceeds the district's local fund assignment
 under Section 48.256, divided by the average daily attendance in
 the district.  If the contract involves a private facility, the
 state share of the total contract cost is that amount remaining
 after subtracting the local share.  If the contract involves a
 public facility, the state share is that amount remaining after
 subtracting the local share from the portion of the contract that
 involves the costs of instructional and related services.  For
 purposes of this subsection, "local tax effort" means the total
 amount of money generated by taxes imposed for debt service and
 maintenance and operation less any amounts paid into a tax
 increment fund under Chapter 311, Tax Code.  This subsection
 expires September 1, 2027.
 (c)  When a student, including one for whom the state is
 managing conservator, is placed primarily for care or treatment
 reasons in a private [residential] facility that operates its own
 private education program, none of the costs may be paid from public
 education funds.  If a [residential] placement primarily for care
 or treatment reasons involves a private [residential] facility in
 which the education program is provided by the school district, the
 portion of the costs that includes appropriate education services,
 as determined by the school district's admission, review, and
 dismissal committee, shall be paid from state and federal education
 funds.
 (d)  A district that contracts for the provision of education
 services rather than providing the services itself shall oversee
 the implementation of the student's individualized education
 program and shall annually reevaluate the appropriateness of the
 arrangement.  The reevaluation must include standards and
 expectations that the student would need to meet to be reintegrated
 to a regular school setting.  An approved facility, institution,
 [or] agency, or business with whom the district contracts shall
 periodically report to the district and the agency on the services
 the student has received or will receive in accordance with the
 contract as well as diagnostic or other evaluative information that
 the district or agency requires in order to fulfill its obligations
 under this subchapter.
 (e)  The commissioner shall adopt rules for residential and
 day placement of students receiving special education services.
 SECTION 3.13.  The heading to Section 29.009, Education
 Code, is amended to read as follows:
 Sec. 29.009.  PUBLIC NOTICE CONCERNING EARLY CHILDHOOD
 SPECIAL EDUCATION [PRESCHOOL] PROGRAMS [FOR STUDENTS WITH
 DISABILITIES].
 SECTION 3.14.  Section 29.010, Education Code, is amended to
 read as follows:
 Sec. 29.010.  GENERAL SUPERVISION AND COMPLIANCE.  (a)  The
 agency shall develop [adopt] and implement a comprehensive system
 for monitoring school district compliance with federal and state
 laws relating to special education.  The monitoring system must
 include a comprehensive cyclical process and a targeted risk-based
 process [provide for ongoing analysis of district special education
 data and of complaints filed with the agency concerning special
 education services and for inspections of school districts at
 district facilities].  The agency shall establish criteria and
 instruments for use in determining district compliance under this
 section [use the information obtained through analysis of district
 data and from the complaints management system to determine the
 appropriate schedule for and extent of the inspection].
 (a-1)  As part of the monitoring system, the agency may
 require a school district to obtain specialized technical
 assistance for a documented noncompliance issue or if data
 indicates that technical assistance is needed, such as an incident
 involving injury to staff or students by a student receiving
 special education services or data indicating an excessive number
 of restraints are used on students receiving special education
 services.
 (b)  As part of the monitoring process [To complete the
 inspection], the agency must obtain information from parents and
 teachers of students in special education programs in the district.
 (c)  The agency shall develop and implement a system of
 interventions and sanctions for school districts the agency
 identifies as being in noncompliance with [whose most recent
 monitoring visit shows a failure to comply with major requirements
 of] the Individuals with Disabilities Education Act (20 U.S.C.
 Section 1400 et seq.), federal regulations, state statutes, or
 agency requirements necessary to carry out federal law or
 regulations or state law relating to special education.
 (d)  The agency shall establish a system of progressive
 sanctions and enforcement provisions to apply to [For] districts
 that remain in noncompliance for more than one year[, the first
 stage of sanctions shall begin with annual or more frequent
 monitoring visits]. The [Subsequent] sanctions must [may] range in
 severity and may include [up to] the withholding of funds.  If funds
 are withheld, the agency may use the funds, or direct the funds to
 be used, to provide, through alternative arrangements, services to
 students and staff members in the district from which the funds are
 withheld.
 (e)  The agency's complaint management division shall
 develop a system for expedited investigation and resolution of
 complaints concerning a district's failure to provide special
 education or related services to a student eligible to participate
 in the district's special education program.
 [(f)  This section does not create an obligation for or
 impose a requirement on a school district or open-enrollment
 charter school that is not also created or imposed under another
 state law or a federal law.]
 SECTION 3.15.  Section 29.012(d), Education Code, is amended
 to read as follows:
 (d)  The Texas Education Agency, the Health and Human
 Services Commission, the Department of Family and Protective
 Services, and the Texas Juvenile Justice Department by a
 cooperative effort shall develop and [by rule] adopt a memorandum
 of understanding.  The memorandum must:
 (1)  establish the respective responsibilities of
 school districts and of residential facilities for the provision of
 a free, appropriate public education, as required by the
 Individuals with Disabilities Education Act (20 U.S.C. Section 1400
 et seq.) and its subsequent amendments, including each requirement
 for children with disabilities who reside in those facilities;
 (2)  coordinate regulatory and planning functions of
 the parties to the memorandum;
 (3)  establish criteria for determining when a public
 school will provide educational services;
 (4)  provide for appropriate educational space when
 education services will be provided at the residential facility;
 (5)  establish measures designed to ensure the safety
 of students and teachers; and
 (6)  provide for binding arbitration consistent with
 Chapter 2009, Government Code, and Section 154.027, Civil Practice
 and Remedies Code.
 SECTION 3.16.  Section 29.013, Education Code, is amended to
 read as follows:
 Sec. 29.013.  NONEDUCATIONAL COMMUNITY-BASED SUPPORT
 SERVICES GRANTS FOR CERTAIN STUDENTS WITH DISABILITIES.  (a)  The
 commissioner [agency] shall adopt rules establishing [establish]
 procedures and criteria for the allocation of grants [funds
 appropriated] under this section, using money appropriated or
 otherwise available for the purpose, to students who are eligible
 under Subsection (b) and the students' families [school districts]
 for the provision of noneducational community-based support
 services [to certain students with disabilities and their families
 so that those students may receive an appropriate free public
 education in the least restrictive environment].
 (b)  A grant [The funds] may be awarded under this section
 [used] only to a student with a disability [for eligible students
 with disabilities] who is [would remain or would have to be] placed
 by the student's admission, review, and dismissal committee in:
 (1)  a residential program approved under Section
 29.008; or
 (2)  a day placement program and is at risk of being
 placed in a residential program approved under Section 29.008
 [facilities primarily for educational reasons without the
 provision of noneducational community-based support services].
 (c)  The support services may not be related to the provision
 of a free appropriate public education to the student and may
 include in-home family support, behavioral and other
 disability-related supports for the student's family, respite
 care, and case management for the student's family [families with a
 student who otherwise would have been placed by a district in a
 private residential facility].
 (d)  A school district shall:
 (1)  notify the parent of a student described by
 Subsection (b) of the availability of grants under this section;
 and
 (2)  designate a campus or district staff member to
 assist families of students described by Subsection (b) in
 accessing grants under this section.
 (e)  On request by the parent of a student described by
 Subsection (b), the commissioner shall create an account for the
 student to access a grant under this section through which the
 parent may request payment for approved support services.
 (f)  In adopting rules under this section, the commissioner
 shall adopt rules and guidelines detailing the process to access
 grant money and the amount of each grant, including a process for a
 parent to apply for an increase in the grant amount.
 (g)  The provision of services under this section does not
 supersede or limit the responsibility of a school district or other
 agencies to provide or pay for costs [of noneducational
 community-based support services] to enable any student with
 disabilities to receive a free appropriate public education in the
 least restrictive environment.  [Specifically, services provided
 under this section may not be used for a student with disabilities
 who is currently placed or who needs to be placed in a residential
 facility primarily for noneducational reasons.]
 (h)  The commissioner may designate a regional education
 service center to administer grants under this section.
 SECTION 3.17.  Sections 29.014(c) and (d), Education Code,
 are amended to read as follows:
 (c)  Notwithstanding any other provision of this code, a
 student whose appropriate education program is a general [regular]
 education program may receive services and be counted for
 attendance purposes for the number of hours per week appropriate
 for the student's condition if the student:
 (1)  is temporarily classified as eligible for
 participation in a special education program because of the
 student's confinement in a hospital; and
 (2)  the student's education is provided by a district
 to which this section applies.
 (d)  The basic allotment for a student enrolled in a district
 to which this section applies is adjusted by the tier of intensity
 of service defined in accordance with [weight for a homebound
 student under] Section 48.102 and designated by commissioner rule
 for use under this section [48.102(a)].
 SECTION 3.18.  Section 29.0162(b), Education Code, is
 amended to read as follows:
 (b)  The commissioner by rule shall adopt additional
 qualifications and requirements for a representative for purposes
 of Subsection (a)(2).  The rules must:
 (1)  prohibit an individual from being a representative
 under Subsection (a)(2) opposing a school district if:
 (A)  the individual has prior employment
 experience with the district; and
 (B)  the district raises an objection to the
 individual serving as a representative;
 (2)  include requirements that the representative have
 knowledge of:
 (A)  all special education dispute resolution
 options available to parents, including due process and due process
 rules, hearings, and procedure; and
 (B)  federal and state special education laws;
 (3)  require, if the representative receives monetary
 compensation from a person for representation in an impartial due
 process hearing, that the representative agree to abide by a
 voluntary code of ethics and professional conduct during the period
 of representation; and
 (4)  require, if the representative receives monetary
 compensation from a person for representation in an impartial due
 process hearing, that the representative enter into a written
 agreement for representation with the person who is the subject of
 the special education due process hearing that includes a process
 for resolving any disputes between the representative and the
 person.
 SECTION 3.19.  Section 29.018(b), Education Code, is amended
 to read as follows:
 (b)  A school district is eligible to apply for a grant under
 this section if:
 (1)  the district does not receive sufficient funds,
 including state funds provided under Sections [Section] 48.102 and
 48.1021 and federal funds, for a student with disabilities to pay
 for the special education services provided to the student; or
 (2)  the district does not receive sufficient funds,
 including state funds provided under Sections [Section] 48.102 and
 48.1021 and federal funds, for all students with disabilities in
 the district to pay for the special education services provided to
 the students.
 SECTION 3.20.  The heading to Section 29.020, Education
 Code, is amended to read as follows:
 Sec. 29.020.  STATE-ADMINISTERED INDIVIDUALIZED EDUCATION
 PROGRAM FACILITATION [PROJECT].
 SECTION 3.21.  Sections 29.020(a) and (c), Education Code,
 are amended to read as follows:
 (a)  The agency shall develop rules in accordance with this
 section applicable to state-administered [the administration of a
 state] individualized education program facilitation [project].
 The program shall include the provision of an independent
 individualized education program facilitator as a dispute
 resolution method that may be used to avoid a potential dispute
 between a school district and a parent of a student with a
 disability or to facilitate an admission, review, and dismissal
 committee meeting with parties who are in a dispute about decisions
 relating to the provision of a free appropriate public education to
 a student with a disability.  Facilitation [implemented under the
 project] must comply with rules developed under this subsection.
 (c)  If the commissioner determines that adequate funding is
 available, the commissioner may authorize the use of federal funds
 to implement [the] individualized education program facilitation
 [project] in accordance with this section.
 SECTION 3.22.  Sections 29.022(a), (a-1), (b), (c), (c-1),
 (d), (f), (h), (k), (l), (q), (s), and (t), Education Code, are
 amended to read as follows:
 (a)  In order to promote student safety, on receipt of a
 written request authorized under Subsection (a-1), a school
 district or open-enrollment charter school shall provide
 equipment, including a video camera, to the school or schools in the
 district or the charter school campus or campuses specified in the
 request.  A school or campus that receives equipment as provided by
 this subsection shall place, operate, and maintain one or more
 video cameras in special education [self-contained] classrooms and
 other special education settings [in which a majority of the
 students in regular attendance are provided special education and
 related services and are assigned to one or more self-contained
 classrooms or other special education settings for at least 50
 percent of the instructional day], provided that:
 (1)  a school or campus that receives equipment as a
 result of the request by a parent or staff member is required to
 place equipment only in classrooms or settings in which the
 parent's child is in regular attendance or to which the staff member
 is assigned, as applicable; and
 (2)  a school or campus that receives equipment as a
 result of the request by a board of trustees, governing body,
 principal, or assistant principal is required to place equipment
 only in classrooms or settings identified by the requestor, if the
 requestor limits the request to specific classrooms or settings
 subject to this subsection.
 (a-1)  For purposes of Subsection (a):
 (1)  a parent of a child who receives special education
 services in one or more special education [self-contained]
 classrooms or other special education settings may request in
 writing that equipment be provided to the school or campus at which
 the child receives those services;
 (2)  a board of trustees or governing body may request
 in writing that equipment be provided to one or more specified
 schools or campuses at which one or more children receive special
 education services in special education [self-contained]
 classrooms or other special education settings;
 (3)  the principal or assistant principal of a school
 or campus at which one or more children receive special education
 services in special education [self-contained] classrooms or other
 special education settings may request in writing that equipment be
 provided to the principal's or assistant principal's school or
 campus; and
 (4)  a staff member assigned to work with one or more
 children receiving special education services in special education
 [self-contained] classrooms or other special education settings
 may request in writing that equipment be provided to the school or
 campus at which the staff member works.
 (b)  A school or campus that places a video camera in a
 special education classroom or other special education setting in
 accordance with Subsection (a) shall operate and maintain the video
 camera in the classroom or setting, as long as the classroom or
 setting continues to satisfy the requirements under Subsection (a),
 for the remainder of the school year in which the school or campus
 received the request, unless the requestor withdraws the request in
 writing.  If for any reason a school or campus will discontinue
 operation of a video camera during a school year, not later than the
 fifth school day before the date the operation of the video camera
 will be discontinued, the school or campus must notify the parents
 of each student in regular attendance in the classroom or setting
 that operation of the video camera will not continue unless
 requested by a person eligible to make a request under Subsection
 (a-1).  Not later than the 10th school day before the end of each
 school year, the school or campus must notify the parents of each
 student in regular attendance in the classroom or setting that
 operation of the video camera will not continue during the
 following school year unless a person eligible to make a request for
 the next school year under Subsection (a-1) submits a new request.
 (c)  Except as provided by Subsection (c-1), video cameras
 placed under this section must be capable of:
 (1)  covering all areas of the special education
 classroom or other special education setting, including a room
 attached to the classroom or setting used for time-out; and
 (2)  recording audio from all areas of the special
 education classroom or other special education setting, including a
 room attached to the classroom or setting used for time-out.
 (c-1)  The inside of a bathroom or any area in the special
 education classroom or other special education setting in which a
 student's clothes are changed may not be visually monitored, except
 for incidental coverage of a minor portion of a bathroom or changing
 area because of the layout of the classroom or setting.
 (d)  Before a school or campus activates a video camera in a
 special education classroom or other special education setting
 under this section, the school or campus shall provide written
 notice of the placement to all school or campus staff and to the
 parents of each student attending class or engaging in school
 activities in the classroom or setting.
 (f)  A school district or open-enrollment charter school may
 solicit and accept gifts, grants, and donations from any person for
 use in placing video cameras in special education classrooms or
 other special education settings under this section.
 (h)  A school district or open-enrollment charter school may
 not:
 (1)  allow regular or continual monitoring of video
 recorded under this section; or
 (2)  use video recorded under this section for teacher
 evaluation or for any other purpose other than the promotion of
 safety of students receiving special education services in a
 special education [self-contained] classroom or other special
 education setting.
 (k)  The commissioner may adopt rules to implement and
 administer this section, including rules regarding the special
 education classrooms and other special education settings to which
 this section applies.
 (l)  A school district or open-enrollment charter school
 policy relating to the placement, operation, or maintenance of
 video cameras under this section must:
 (1)  include information on how a person may appeal an
 action by the district or school that the person believes to be in
 violation of this section or a policy adopted in accordance with
 this section, including the appeals process under Section 7.057;
 (2)  require that the district or school provide a
 response to a request made under this section not later than the
 seventh school business day after receipt of the request by the
 person to whom it must be submitted under Subsection (a-3) that
 authorizes the request or states the reason for denying the
 request;
 (3)  except as provided by Subdivision (5), require
 that a school or a campus begin operation of a video camera in
 compliance with this section not later than the 45th school
 business day, or the first school day after the 45th school business
 day if that day is not a school day, after the request is authorized
 unless the agency grants an extension of time;
 (4)  permit the parent of a student whose admission,
 review, and dismissal committee has determined that the student's
 placement for the following school year will be in a special
 education classroom or other special education setting in which a
 video camera may be placed under this section to make a request for
 the video camera by the later of:
 (A)  the date on which the current school year
 ends; or
 (B)  the 10th school business day after the date
 of the placement determination by the admission, review, and
 dismissal committee; and
 (5)  if a request is made by a parent in compliance with
 Subdivision (4), unless the agency grants an extension of time,
 require that a school or campus begin operation of a video camera in
 compliance with this section not later than the later of:
 (A)  the 10th school day of the fall semester; or
 (B)  the 45th school business day, or the first
 school day after the 45th school business day if that day is not a
 school day, after the date the request is made.
 (q)  The agency shall collect through the Public Education
 Information Management System (PEIMS) data relating to requests
 made under this section and actions taken by a school district or
 open-enrollment charter school in response to a request, including
 the number of requests made, authorized, and denied.
 (s)  This section applies to the placement, operation, and
 maintenance of a video camera in a special education
 [self-contained] classroom or other special education setting
 during the regular school year and extended school year services.
 (t)  A video camera placed under this section is not required
 to be in operation for the time during which students are not
 present in the special education classroom or other special
 education setting.
 SECTION 3.23.  Sections 29.022(u)(3) and (4), Education
 Code, are amended to read as follows:
 (3)  "Special education classroom or other special
 education setting" means a classroom or setting primarily used for
 delivering special education services to students who spend on
 average less than 50 percent of an instructional day in a general
 education classroom or setting ["Self-contained classroom" does
 not include a classroom that is a resource room instructional
 arrangement under Section 48.102].
 (4)  "Staff member" means a teacher, related service
 provider, paraprofessional, counselor, or educational aide
 assigned to work in a special education [self-contained] classroom
 or other special education setting.
 SECTION 3.24.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Sections 29.023, 29.024, 29.025, and 29.026 to
 read as follows:
 Sec. 29.023.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
 WITH AUTISM. (a) From money appropriated or otherwise available
 for the purpose, the commissioner shall establish a program to
 award grants to school districts and open-enrollment charter
 schools that provide innovative services to students with autism.
 (b)  A school district, including a school district acting
 through a district charter issued under Subchapter C, Chapter 12,
 and an open-enrollment charter school, including a charter school
 that primarily serves students with disabilities, as provided under
 Section 12.1014, may apply for a grant under this section.
 (c)  A program is eligible for a grant under this section if
 the program:
 (1)  incorporates:
 (A)  evidence-based and research-based design;
 (B)  the use of empirical data on student
 achievement and improvement;
 (C)  parental support and collaboration;
 (D)  the use of technology;
 (E)  meaningful inclusion; and
 (F)  the ability to replicate the program for
 students statewide; and
 (2)  gives priority for enrollment to students with
 autism.
 (d)  A school district or open-enrollment charter school may
 not:
 (1)  charge a fee for the program, other than those
 authorized by law for students in public schools;
 (2)  require a parent to enroll a child in the program;
 (3)  allow an admission, review, and dismissal
 committee to place a student in the program without the written
 consent of the student's parent or guardian; or
 (4)  continue the placement of a student in the program
 after the student's parent or guardian revokes consent, in writing,
 to the student's placement in the program.
 (e)  A program under this section may:
 (1)  alter the length of the school day or school year
 or the number of minutes of instruction received by students;
 (2)  coordinate services with private or
 community-based providers;
 (3)  allow the enrollment of students without
 disabilities or with other disabilities, if approved by the
 commissioner; and
 (4)  adopt staff qualifications and staff-to-student
 ratios that differ from the applicable requirements of this title.
 (f)  The commissioner shall create an external panel of
 stakeholders, including parents of students with disabilities, to
 provide assistance in the selection of applications for the award
 of grants under this section.
 (g)  In selecting programs to receive a grant under this
 section, the commissioner shall prioritize programs that are
 collaborations between multiple school districts, multiple charter
 schools, or school districts and charter schools.  The selected
 programs must reflect the diversity of this state.
 (h)  A program selected to receive a grant under this section
 is to be funded for two years.
 (i)  A grant awarded to a school district or open-enrollment
 charter school under this section is in addition to the Foundation
 School Program money that the district or charter school is
 otherwise entitled to receive.  A grant awarded under this section
 may not come out of Foundation School Program money.
 (j)  The commissioner and any program selected under this
 section may accept gifts, grants, and donations from any public or
 private source, person, or group to implement and administer the
 program.  The commissioner and any program selected under this
 section may not require any financial contribution from parents to
 implement and administer the program.
 (k)  A regional education service center may administer
 grants awarded under this section.
 Sec. 29.024.  GRANT PROGRAM PROVIDING TRAINING IN DYSLEXIA
 FOR TEACHERS AND STAFF. (a) From money appropriated or otherwise
 available for the purpose, the commissioner shall establish a
 program to award grants each school year to school districts and
 open-enrollment charter schools to increase local capacity to
 appropriately serve students with dyslexia.
 (b)  A school district, including a school district acting
 through a district charter issued under Subchapter C, Chapter 12,
 or an open-enrollment charter school, including a charter school
 that primarily serves students with disabilities, as provided under
 Section 12.1014, is eligible to apply for a grant under this section
 if the district or school submits to the commissioner a proposal on
 the use of grant funds that:
 (1)  incorporates  evidence-based and research-based
 design; and
 (2)  increases local capacity to appropriately serve
 students with dyslexia by providing:
 (A)  high-quality training to classroom teachers
 and administrators in meeting the needs of students with dyslexia;
 or
 (B)  training to intervention staff resulting in
 appropriate credentialing related to dyslexia, with priority for
 training staff to earn the credentials necessary to become a
 licensed dyslexia therapist or certified academic language
 therapist.
 (c)   The commissioner shall create an external panel of
 stakeholders, including parents of students with disabilities, to
 provide assistance in the selection of applications for the award
 of grants under this section.
 (d)  A grant awarded to a school district or open-enrollment
 charter school under this section is in addition to the Foundation
 School Program money that the district or charter school is
 otherwise entitled to receive. A grant awarded under this section
 may not come out of Foundation School Program money.
 (e)  The commissioner and any grant recipient selected under
 this section may accept gifts, grants, and donations from any
 public or private source, person, or group to implement and
 administer the grant.  The commissioner and any grant recipient
 selected under this section may not require any financial
 contribution from parents to implement and administer the grant.
 (f)  A regional education service center may administer
 grants awarded under this section.
 Sec. 29.025.  SUPPORTS FOR RECRUITING AND RETAINING SPECIAL
 EDUCATION STAFF. (a) From money appropriated or otherwise
 available for the purpose, the agency shall provide grants each
 school year to school districts and open-enrollment charter schools
 to increase the number of qualified and appropriately credentialed
 special education staff, including special education teachers,
 special education paraprofessionals, evaluation personnel,
 ancillary instruction personnel, certified interpreters,
 board-certified behavior analysts, registered behavior
 technicians, and related service personnel.
 (b)  A school district or open-enrollment charter school
 that receives a grant under this section shall require each person
 the district or school uses the grant money to assist in becoming
 licensed, certified, or otherwise credentialed as described by
 Subsection (a) to work at the district or school for a period
 established by commissioner rule.
 (c)  A regional education service center may administer
 grants awarded under this section.
 (d)  The commissioner shall adopt rules establishing the
 period of required employment described by Subsection (b) and any
 other rules necessary to implement this section.
 Sec. 29.026.  RULES.  The commissioner may adopt rules as
 necessary to implement this subchapter.
 SECTION 3.25.  The heading to Subchapter A-1, Chapter 29,
 Education Code, is amended to read as follows:
 SUBCHAPTER A-1. PARENT-DIRECTED [SUPPLEMENTAL SPECIAL EDUCATION]
 SERVICES FOR STUDENTS RECEIVING SPECIAL EDUCATION SERVICES
 [PROGRAM]
 SECTION 3.26.  Sections 29.041(2) and (3), Education Code,
 are amended to read as follows:
 (2)  "Supplemental [special education] instructional
 materials" includes textbooks, computer hardware or software,
 other technological devices, and other materials suitable for
 addressing an educational need of a student receiving special
 education services under Subchapter A.
 (3)  "Supplemental [special education] services" means
 an additive service that provides an educational benefit to a
 student receiving special education services under Subchapter A,
 including:
 (A)  occupational therapy, physical therapy, and
 speech therapy; and
 (B)  private tutoring and other supplemental
 private instruction or programs.
 SECTION 3.27.  Section 29.042, Education Code, is amended by
 amending Subsections (a) and (c) and adding Subsection (e) to read
 as follows:
 (a)  The agency by rule shall establish and administer a
 parent-directed [supplemental special education services and
 instructional materials] program for students receiving special
 education services through which a parent may direct supplemental
 services and supplemental instructional materials for the parent's
 student [students] who meets [meet] the eligibility requirements
 for participation in the program. Subject to Subsection (c), the
 agency shall provide each student approved as provided by this
 subchapter a grant in the amount provided under Section 48.306 [of
 not more than $1,500] to purchase supplemental [special education]
 services and supplemental [special education] instructional
 materials.
 (c)  A student may receive one grant under this subchapter
 unless the legislature appropriates money for an additional grant
 in the General Appropriations Act [The commissioner shall set aside
 an amount set by appropriation for each state fiscal year to fund
 the program under this section. For each state fiscal year, the
 total amount provided for student grants under Subsection (a) may
 not exceed the amount set aside by the commissioner under this
 subsection].
 (e)  The agency shall maintain an online user-friendly
 application system for parents to apply for a grant described by
 Subsection (a).
 SECTION 3.28.  Section 29.045, Education Code, is amended to
 read as follows:
 Sec. 29.045.  APPROVAL OF APPLICATION; ASSIGNMENT OF
 ACCOUNT. The [Subject to available funding the] agency shall
 approve each student who meets the program eligibility criteria
 established under Section 29.044 and assign to the student an
 account maintained under Section 29.042(b). The account may only
 be used by the student's parent to purchase supplemental [special
 education] services or supplemental [special education]
 instructional materials for the student, subject to Sections 29.046
 and 29.047.
 SECTION 3.29.  Sections 29.046(a) and (b), Education Code,
 are amended to read as follows:
 (a)  Money in an account assigned to a student under Section
 29.045 may be used only for supplemental [special education]
 services and supplemental [special education] instructional
 materials.
 (b)  Supplemental [special education] services must be
 provided by an agency-approved provider.
 SECTION 3.30.  Sections 29.047(a), (c), (d), and (e),
 Education Code, are amended to read as follows:
 (a)  The agency shall establish criteria necessary for
 agency approval for each category of provider of a professional
 service that is a supplemental [special education] service, as
 identified by the agency.
 (c)  The agency shall provide a procedure for providers of
 supplemental [special education] services to apply to the agency to
 become an agency-approved provider.
 (d)  The agency may establish criteria for agency approval of
 vendors for each category of supplemental [special education]
 instructional materials identified by the agency.
 (e)  If the agency establishes criteria for agency approval
 for a vendor of a category of supplemental [special education]
 instructional materials, the agency shall provide a procedure for
 vendors of that category to apply to the agency to become an
 agency-approved vendor.
 SECTION 3.31.  Section 29.048, Education Code, is amended to
 read as follows:
 Sec. 29.048.  ADMISSION, REVIEW, AND DISMISSAL COMMITTEE
 DUTIES. (a) A student's admission, review, and dismissal
 committee shall develop a student's individualized education
 program under Section 29.005, in compliance with the Individuals
 with Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
 without consideration of any supplemental [special education]
 services or supplemental instructional materials that may be
 provided under the program under this subchapter.
 (b)  Unless the district first verifies that an account has
 been assigned to the student under Section 29.045, the [The]
 admission, review, and dismissal committee of a student approved
 for participation in the program shall provide to the student's
 parent at an admission, review, and dismissal committee meeting for
 the student:
 (1)  information regarding the types of supplemental
 [special education] services or supplemental instructional
 materials available under the program and provided by
 agency-approved providers for which an account maintained under
 Section 29.042(b) for the student may be used; and
 (2)  instructions regarding accessing an account
 described by Subdivision (1).
 SECTION 3.32.  Subchapter A-1, Chapter 29, Education Code,
 is amended by adding Section 29.0485 to read as follows:
 Sec. 29.0485.  DETERMINATION OF COMMISSIONER FINAL.
 Notwithstanding Section 7.057, a determination of the commissioner
 under this subchapter is final and may not be appealed.
 SECTION 3.33.  Section 29.049, Education Code, is amended to
 read as follows:
 Sec. 29.049.  RULES. The commissioner shall adopt rules as
 necessary to administer the supplemental [special education]
 services and supplemental instructional materials program under
 this subchapter.
 SECTION 3.34.  Section 29.153, Education Code, is amended by
 amending Subsection (b) and adding Subsection (b-2) to read as
 follows:
 (b)  A child is eligible for enrollment in a prekindergarten
 class under this section if the child is at least three years of age
 and:
 (1)  is unable to speak and comprehend the English
 language;
 (2)  is educationally disadvantaged;
 (3)  is homeless, regardless of the residence of the
 child, of either parent of the child, or of the child's guardian or
 other person having lawful control of the child;
 (4)  is the child of an active duty member of the armed
 forces of the United States, including the state military forces or
 a reserve component of the armed forces, who is ordered to active
 duty by proper authority;
 (5)  is the child of a member of the armed forces of the
 United States, including the state military forces or a reserve
 component of the armed forces, who was injured or killed while
 serving on active duty;
 (6)  is or ever has been in:
 (A)  the conservatorship of the Department of
 Family and Protective Services following an adversary hearing held
 as provided by Section 262.201, Family Code; or
 (B)  foster care in another state or territory, if
 the child resides in this state; [or]
 (7)  is the child of a person eligible for the Star of
 Texas Award as:
 (A)  a peace officer under Section 3106.002,
 Government Code;
 (B)  a firefighter under Section 3106.003,
 Government Code; or
 (C)  an emergency medical first responder under
 Section 3106.004, Government Code; or
 (8)  is a child eligible for special education services
 under Subchapter A and the child's admission, review, and dismissal
 committee determines the prekindergarten class to be the most
 appropriate placement for the child under the child's
 individualized education program.
 (b-2)  A child described by Subsection (b)(8) who is at least
 three years of age but younger than four years of age may be
 enrolled in a prekindergarten class offered to children who are at
 least four years of age if:
 (1)  the school district does not offer a
 prekindergarten program for children who are at least three years
 of age; and
 (2)  the child's admission, review, and dismissal
 committee determines the prekindergarten class to be the most
 appropriate placement for the child under the child's
 individualized education program.
 SECTION 3.35.  Section 29.301(1), Education Code, is amended
 to read as follows:
 (1)  "Admission, review, and dismissal committee"
 means the committee required by [State Board of Education rules to
 develop the individualized education program required by] the
 Individuals with Disabilities Education Act (20 U.S.C. Section 1400
 et seq.) for any student needing special education.
 SECTION 3.36.  Sections 29.304(a) and (c), Education Code,
 are amended to read as follows:
 (a)  A student who is deaf or hard of hearing must have an
 education in which teachers, psychologists, speech language
 pathologists [therapists], progress assessors, administrators, and
 others involved in education understand the unique nature of
 deafness and the hard-of-hearing condition.  A teacher of students
 who are deaf or hard of hearing either must be proficient in
 appropriate language modes or use an interpreter certified in
 appropriate language modes if certification is available.
 (c)  General [Regular] and special education personnel who
 work with students who are deaf or hard of hearing must be
 adequately prepared to provide educational instruction and
 services to those students.
 SECTION 3.37.  Section 29.310, Education Code, is amended by
 amending Subsection (c) and adding Subsection (d) to read as
 follows:
 (c)  The procedures and materials for the assessment and
 placement of a student who is deaf or hard of hearing shall be in the
 student's preferred mode of communication.  All other procedures
 and materials used with any student who is deaf or hard of hearing
 and who is an emergent bilingual student as defined by Section
 29.052 [has limited English proficiency] shall be in the student's
 preferred mode of communication.
 (d)  In recognizing the need for development of language and
 communication abilities in students who are deaf or hard of hearing
 but also calling for the use of methods of communication that will
 meet the needs of each individual student, each student who is deaf
 or hard of hearing must be thoroughly assessed to ascertain the
 student's potential for communicating through a variety of means.
 SECTION 3.38.  Section 29.313, Education Code, is amended to
 read as follows:
 Sec. 29.313.  EVALUATION OF DEAF AND HARD OF HEARING
 SERVICES [PROGRAMS].  (a)  Each school district must provide
 continuous evaluation of the effectiveness of the district's
 services [programs of the district] for students who are deaf or
 hard of hearing.  The [If practicable,] evaluations shall follow
 program excellence indicators established by the agency.
 (b)  Each school district shall submit the evaluations under
 this section to the agency on a schedule set by the agency.
 SECTION 3.39.  Section 29.314, Education Code, is amended to
 read as follows:
 Sec. 29.314.  TRANSITION INTO GENERAL EDUCATION [REGULAR]
 CLASS.  In addition to satisfying requirements of the admission,
 review, and dismissal committee and to satisfying requirements
 under state and federal law for vocational training, each school
 district shall develop and implement a transition plan for the
 transition of a student who is deaf or hard of hearing into a
 general education [regular] class [program] if the student is to be
 transferred from a special class or center or nonpublic,
 nonsectarian school into a general education [regular] class in a
 public school for any part of the school day.  The transition plan
 must provide for activities:
 (1)  to integrate the student into the general
 [regular] education program and specify the nature of each activity
 and the time spent on the activity each day; and
 (2)  to support the transition of the student from the
 special education program into the general [regular] education
 program.
 SECTION 3.40.  Section 29.315, Education Code, is amended to
 read as follows:
 Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF
 UNDERSTANDING. The Texas Education Agency and the Texas School for
 the Deaf shall develop[, agree to, and by commissioner rule adopt no
 later than September 1, 1998,] a memorandum of understanding to
 establish:
 (1)  the method for developing and reevaluating a set
 of indicators of the quality of learning at the Texas School for the
 Deaf;
 (2)  the process for the agency to conduct and report on
 an annual evaluation of the school's performance on the indicators;
 (3)  the requirements for the school's board to
 publish, discuss, and disseminate an annual report describing the
 educational performance of the school; and
 (4)  [the process for the agency to assign an
 accreditation status to the school, to reevaluate the status on an
 annual basis, and, if necessary, to conduct monitoring reviews; and
 [(5)]  the type of information the school shall be
 required to provide through the Public Education Information
 Management System (PEIMS).
 SECTION 3.41.  Section 29.316, Education Code, is amended to
 read as follows:
 Sec. 29.316.  LANGUAGE ACQUISITION.  (a)  In this section,
 "language [:
 [(1)  "Center" means the Educational Resource Center on
 Deafness at the Texas School for the Deaf.
 [(2)  "Division" means the Division for Early Childhood
 Intervention Services of the Health and Human Services Commission.
 [(3)  "Language] acquisition" includes expressive and
 receptive language acquisition and literacy development in
 English, American Sign Language, or both, or, if applicable, in
 another language primarily used by a child's parent or guardian,
 and is separate from any modality used to communicate in the
 applicable language or languages.
 (b)  Each school district [The commissioner and the
 executive commissioner of the Health and Human Services Commission
 jointly] shall ensure that the language acquisition of each child
 eight years of age or younger who is deaf or hard of hearing is
 regularly assessed using a tool or assessment approved by the
 commissioner [determined to be valid and reliable as provided by
 Subsection (d)].
 (c)  On a schedule determined by the commissioner, each
 school district shall report to the commissioner through the Public
 Education Information Management System (PEIMS) or another method
 set by commissioner rule the assessment data collected under
 Subsection (b) [Not later than August 31 of each year, the agency,
 the division, and the center jointly shall prepare and post on the
 agency's, the division's, and the center's respective Internet
 websites a report on the language acquisition of children eight
 years of age or younger who are deaf or hard of hearing. The report
 must:
 [(1)  include:
 [(A)  existing data reported in compliance with
 federal law regarding children with disabilities; and
 [(B)  information relating to the language
 acquisition of children who are deaf or hard of hearing and also
 have other disabilities;
 [(2)  state for each child:
 [(A)  the instructional arrangement used with the
 child, as described by Section 48.102, including the time the child
 spends in a mainstream instructional arrangement;
 [(B)  the specific language acquisition services
 provided to the child, including:
 [(i)  the time spent providing those
 services; and
 [(ii)  a description of any hearing
 amplification used in the delivery of those services, including:
 [(a)  the type of hearing
 amplification used;
 [(b)  the period of time in which the
 child has had access to the hearing amplification; and
 [(c)  the average amount of time the
 child uses the hearing amplification each day;
 [(C)  the tools or assessments used to assess the
 child's language acquisition and the results obtained;
 [(D)  the preferred unique communication mode
 used by the child at home; and
 [(E)  the child's age, race, and gender, the age
 at which the child was identified as being deaf or hard of hearing,
 and any other relevant demographic information the commissioner
 determines to likely be correlated with or have an impact on the
 child's language acquisition;
 [(3)  compare progress in English literacy made by
 children who are deaf or hard of hearing to progress in that subject
 made by children of the same age who are not deaf or hard of hearing,
 by appropriate age range; and
 [(4)  be redacted as necessary to comply with state and
 federal law regarding the confidentiality of student medical or
 educational information].
 (d)  The commissioner[, the executive commissioner of the
 Health and Human Services Commission, and the center] shall adopt
 rules establishing the assessment data required to be reported
 under Subsection (c) [enter into a memorandum of understanding
 regarding:
 [(1)  the identification of experts in deaf education;
 and
 [(2)  the determination, in consultation with those
 experts, of the tools and assessments that are valid and reliable,
 in both content and administration, for use in assessing the
 language acquisition of children eight years of age or younger who
 are deaf or hard of hearing].
 (e)  The commissioner shall annually post on the agency's
 Internet website a report on the language acquisition of children
 eight years of age or younger who are deaf or hard of hearing using
 the assessment data reported under Subsection (c) [agency shall use
 existing collected data and data collected and transferred from the
 Department of State Health Services and the Health and Human
 Services Commission, as agreed upon in the memorandum of
 understanding, for the report under this section].
 (f)  The commissioner shall use the assessment data reported
 under Subsection (c) in determining whether to award a grant under
 Section 29.018 or in seeking federal money available for projects
 aimed at improving outcomes for students with disabilities [and the
 executive commissioner of the Health and Human Services Commission
 jointly shall adopt rules as necessary to implement this section,
 including rules for:
 [(1)  assigning each child eight years of age or
 younger who is deaf or hard of hearing a unique identification
 number for purposes of the report required under Subsection (c) and
 to enable the tracking of the child's language acquisition, and
 factors affecting the child's language acquisition, over time; and
 [(2)  implementing this section in a manner that
 complies with federal law regarding confidentiality of student
 medical or educational information, including the Health Insurance
 Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
 et seq.) and the Family Educational Rights and Privacy Act of 1974
 (20 U.S.C. Section 1232g), and any state law relating to the privacy
 of student information].
 SECTION 3.42.  The heading to Section 30.002, Education
 Code, is amended to read as follows:
 Sec. 30.002.  STATE PLAN [EDUCATION] FOR CHILDREN WITH
 VISUAL IMPAIRMENTS, WHO ARE DEAF OR HARD OF HEARING, OR WHO ARE
 DEAF-BLIND.
 SECTION 3.43.  Sections 30.002(a), (b), (c), and (e),
 Education Code, are amended to read as follows:
 (a)  The agency shall develop and administer a comprehensive
 statewide plan for the education of children [with visual
 impairments] who are under 22 [21] years of age and who have visual
 impairments, are deaf or hard of hearing, or are deaf-blind that
 will ensure that the children have an opportunity for achievement
 equal to the opportunities afforded their peers who do not have
 visual impairments, are not deaf or hard of hearing, or are not
 deaf-blind [with normal vision].
 (b)  The agency shall:
 (1)  develop standards and guidelines for all special
 education and related services for children who have visual
 impairments, are deaf or hard of hearing, or are deaf-blind [with
 visual impairments] that it is authorized to provide or support
 under this code and federal law;
 (2)  supervise regional education service centers and
 other entities in assisting school districts in serving children
 who have visual impairments, are deaf or hard of hearing, or are
 deaf-blind [with visual impairments] more effectively; and
 (3)  [develop and administer special education
 services for students with both serious visual and auditory
 impairments;
 [(4)  evaluate special education services provided for
 children with visual impairments by school districts and approve or
 disapprove state funding of those services; and
 [(5)]  maintain an effective liaison between special
 education programs provided for children who have visual
 impairments, are deaf or hard of hearing, or are deaf-blind [with
 visual impairments] by school districts and related initiatives of
 the Health and Human Services Commission, [the Department of State
 Health Services Mental Health and Substance Abuse Division,] the
 Texas Workforce Commission, and other related programs, agencies,
 or facilities as appropriate.
 (c)  The comprehensive statewide plan for the education of
 children who have visual impairments, are deaf or hard of hearing,
 or are deaf-blind [with visual impairments] must:
 (1)  adequately provide for comprehensive diagnosis
 and evaluation of each school-age child who has a visual
 impairment, is deaf or hard of hearing, or is deaf-blind and
 adequately outline the expectations of a school district for such a
 child under three years of age [with a serious visual impairment];
 (2)  include the procedures, format, and content of the
 individualized education program for each child who has a visual
 impairment, is deaf or hard of hearing, or is deaf-blind [with a
 visual impairment];
 (3)  emphasize providing educational services to
 children who have visual impairments, are deaf or hard of hearing,
 or are deaf-blind [with visual impairments] in their home
 communities whenever possible;
 (4)  include information regarding the establishment
 of regional day school programs for the deaf under Subchapter D and
 the parameters of those programs [methods to ensure that children
 with visual impairments receiving special education services in
 school districts receive, before being placed in a classroom
 setting or within a reasonable time after placement:
 [(A)  evaluation of the impairment; and
 [(B)  instruction in an expanded core curriculum,
 which is required for students with visual impairments to succeed
 in classroom settings and to derive lasting, practical benefits
 from the education provided by school districts, including
 instruction in:
 [(i)  compensatory skills, such as braille
 and concept development, and other skills needed to access the rest
 of the curriculum;
 [(ii)  orientation and mobility;
 [(iii)  social interaction skills;
 [(iv)  career planning;
 [(v)  assistive technology, including
 optical devices;
 [(vi)  independent living skills;
 [(vii)  recreation and leisure enjoyment;
 [(viii)  self-determination; and
 [(ix)  sensory efficiency];
 (5)  provide for flexibility on the part of school
 districts to meet the unique [special] needs of children who have
 visual impairments, are deaf or hard of hearing, or are deaf-blind
 [with visual impairments] through:
 (A)  specialty staff and resources provided by the
 district;
 (B)  contractual arrangements with other
 qualified public or private agencies;
 (C)  supportive assistance from regional
 education service centers or adjacent school districts;
 (D)  short-term or long-term services through the
 Texas School for the Blind and Visually Impaired, the Texas School
 for the Deaf, regional day school programs for the deaf, or related
 facilities or programs; or
 (E)  other instructional and service arrangements
 approved by the agency;
 (6)  [include a statewide admission, review, and
 dismissal process;
 [(7)]  provide for effective interaction between the
 [visually impaired child's] classroom setting of the child who has
 a visual impairment, is deaf or hard of hearing, or is deaf-blind
 and the child's home environment, including providing for parental
 training and counseling either by school district staff or by
 representatives of other organizations directly involved in the
 development and implementation of the individualized education
 program for the child;
 (7)  describe recommended and required professional
 development activities based on the special education and related
 services provided by school district staff to children who have
 visual impairments, are deaf or hard of hearing, or are deaf-blind
 [(8)  require the continuing education and professional
 development of school district staff providing special education
 services to children with visual impairments];
 (8) [(9)]  provide for adequate monitoring and precise
 evaluation of special education services provided to children who
 have visual impairments, are deaf or hard of hearing, or are
 deaf-blind [with visual impairments] through school districts;
 [and]
 (9) [(10)]  require that school districts providing
 special education services to children who have visual impairments,
 are deaf or hard of hearing, or are deaf-blind [with visual
 impairments] develop procedures for assuring that staff assigned to
 work with the children have prompt and effective access directly to
 resources available through:
 (A)  cooperating agencies in the area;
 (B)  the Texas School for the Blind and Visually
 Impaired;
 (C)  the Texas School for the Deaf;
 (D)  the statewide outreach center at the Texas
 School for the Deaf;
 (E)  the Central Media Depository for specialized
 instructional materials and aids made specifically for use by
 students with visual impairments;
 (F) [(D)]  sheltered workshops participating in
 the state program of purchases of blind-made goods and services;
 and
 (G) [(E)]  related sources; and
 (10)  assist in the coordination of educational
 programs with other public and private agencies, including:
 (A)  agencies operating early childhood
 intervention programs;
 (B)  preschools;
 (C)  agencies operating child development
 programs;
 (D)  private nonsectarian schools;
 (E)  agencies operating regional occupational
 centers and programs; and
 (F)  as appropriate, postsecondary and adult
 programs for persons who are deaf or hard of hearing.
 (e)  Each eligible [blind or visually impaired] student who
 has a visual impairment, is deaf or hard of hearing, or is
 deaf-blind is entitled to receive educational programs according to
 an individualized education program that:
 (1)  is developed in accordance with federal and state
 requirements for providing special education services;
 (2)  is developed by a committee composed as required
 by federal law;
 (3)  reflects that the student has been provided a
 detailed explanation of the various service resources available to
 the student in the community and throughout the state;
 (4)  provides a detailed description of the
 arrangements made to provide the student with the evaluation and
 instruction required under this subchapter and Subchapter A,
 Chapter 29 [Subsection (c)(4)]; and
 (5)  sets forth the plans and arrangements made for
 contacts with and continuing services to the student beyond regular
 school hours to ensure the student learns the skills and receives
 the instruction required under this subchapter and Subchapter A,
 Chapter 29 [Subsection (c)(4)(B)].
 SECTION 3.44.  Subchapter A, Chapter 30, Education Code, is
 amended by adding Section 30.0021 to read as follows:
 Sec. 30.0021.  REQUIREMENTS FOR CHILDREN WITH VISUAL
 IMPAIRMENTS. (a) Each child with a visual impairment must receive
 instruction in an expanded core curriculum required for children
 with visual impairments to succeed in classroom settings and to
 derive lasting, practical benefits from education in a school
 district, including instruction in:
 (1)  compensatory skills, such as braille and concept
 development, and other skills necessary to access the rest of the
 curriculum;
 (2)  orientation and mobility;
 (3)  social interaction skills;
 (4)  career education;
 (5)  assistive technology, including optical devices;
 (6)  independent living skills;
 (7)  recreation and leisure enjoyment;
 (8)  self-determination; and
 (9)  sensory efficiency.
 (b)  To determine a child's eligibility for a school
 district's special education program under Subchapter A, Chapter
 29, on the basis of a visual impairment, the full individual and
 initial evaluation of the child under Section 29.004 and any
 reevaluation of the child must, in accordance with commissioner
 rule:
 (1)  include an orientation and mobility evaluation
 conducted:
 (A)  by a person who is appropriately certified as
 an orientation and mobility specialist, as determined by
 commissioner rule; and
 (B)  in a variety of lighting conditions and
 settings, including in the child's home, school, and community and
 in settings unfamiliar to the child; and
 (2)  provide for a person who is appropriately
 certified as an orientation and mobility specialist, as determined
 by commissioner rule, to participate, as part of a
 multidisciplinary team, in evaluating the data on which the
 determination of the child's eligibility is based.
 (c)  In developing an individualized education program under
 Section 29.005 for a child with a visual impairment, proficiency in
 reading and writing must be a significant indicator of the child's
 satisfactory educational progress.  The individualized education
 program must include instruction in braille and the use of braille
 unless the child's admission, review, and dismissal committee
 documents a determination, based on an evaluation of the child's
 appropriate literacy media and literacy skills and the child's
 current and future instructional needs, that braille is not an
 appropriate literacy medium for the child.
 (d)  Braille instruction:
 (1)  may be used in combination with other special
 education services appropriate to the educational needs of a child
 with a visual impairment; and
 (2)  must be provided by a teacher certified to teach
 children with visual impairments under Subchapter B, Chapter 21.
 (e)  A school district shall provide to each person assisting
 in the development of an individualized education program for a
 child with a visual impairment information describing the benefits
 of braille instruction.
 (f)  To facilitate implementation of this section, the
 commissioner shall develop a system to distribute from the
 foundation school fund to school districts or regional education
 service centers a special supplemental allowance for each student
 with a visual impairment.  The supplemental allowance may be spent
 only for special education services uniquely required by the nature
 of the child's disabilities and may not be used in lieu of
 educational funds otherwise available under this code or through
 state or local appropriations.
 SECTION 3.45.  Section 30.003, Education Code, is amended by
 amending Subsections (b), (d), (f-1), and (g) and adding Subsection
 (b-1) to read as follows:
 (b)  If the student is admitted to the school for a full-time
 program for the equivalent of two long semesters, the district's
 share of the cost is an amount equal to the dollar amount of
 maintenance and debt service taxes imposed by the district for that
 year, subject to Subsection (b-1), divided by the district's
 average daily attendance for the preceding year.
 (b-1)  The commissioner shall reduce the amount of
 maintenance taxes imposed by the district that are obligated to be
 paid under Subsection (b) for a year by the amount, if any, by which
 the district is required to reduce the district's local revenue
 level under Section 48.257 for that year.
 (d)  Each school district and state institution shall
 provide to the commissioner the necessary information to determine
 the district's share under this section.  The information must be
 reported to the commissioner on or before a date set by commissioner
 rule [of the State Board of Education].  After determining the
 amount of a district's share for all students for which the district
 is responsible, the commissioner shall deduct that amount from the
 payments of foundation school funds payable to the district.  Each
 deduction shall be in the same percentage of the total amount of the
 district's share as the percentage of the total foundation school
 fund entitlement being paid to the district at the time of the
 deduction, except that the amount of any deduction may be modified
 to make necessary adjustments or to correct errors.  The
 commissioner shall provide for remitting the amount deducted to the
 appropriate school at the same time at which the remaining funds are
 distributed to the district.  If a district does not receive
 foundation school funds or if a district's foundation school
 entitlement is less than the amount of the district's share under
 this section, the commissioner shall direct the district to remit
 payment to the commissioner, and the commissioner shall remit the
 district's share to the appropriate school.
 (f-1)  The commissioner shall determine the total amount
 that the Texas School for the Blind and Visually Impaired and the
 Texas School for the Deaf would have received from school districts
 in accordance with this section if the following provisions had not
 reduced the districts' share of the cost of providing education
 services:
 (1)  H.B. No. 1, Acts of the 79th Legislature, 3rd
 Called Session, 2006;
 (2)  Subsection (b-1) of this section;
 (3)  Section 45.0032;
 (4) [(3)]  Section 48.255; and
 (5) [(4)]  Section 48.2551.
 (g)  The commissioner [State Board of Education] may adopt
 rules as necessary to implement this section.
 SECTION 3.46.  Section 30.004(b), Education Code, is amended
 to read as follows:
 (b)  The commissioner [State Board of Education] shall adopt
 rules prescribing the form and content of information required by
 Subsection (a).
 SECTION 3.47.  Section 30.005, Education Code, is amended to
 read as follows:
 Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY
 IMPAIRED MEMORANDUM OF UNDERSTANDING.  The Texas Education Agency
 and the Texas School for the Blind and Visually Impaired shall
 develop[, agree to, and by commissioner rule adopt] a memorandum of
 understanding to establish:
 (1)  the method for developing and reevaluating a set
 of indicators of the quality of learning at the Texas School for the
 Blind and Visually Impaired;
 (2)  the process for the agency to conduct and report on
 an annual evaluation of the school's performance on the indicators;
 (3)  the requirements for the school's board to
 publish, discuss, and disseminate an annual report describing the
 educational performance of the school; and
 (4)  [the process for the agency to:
 [(A)  assign an accreditation status to the
 school;
 [(B)  reevaluate the status on an annual basis;
 and
 [(C)  if necessary, conduct monitoring reviews;
 and
 [(5)]  the type of information the school shall be
 required to provide through the Public Education Information
 Management System (PEIMS).
 SECTION 3.48.  Section 30.021(e), Education Code, is amended
 to read as follows:
 (e)  The school shall cooperate with public and private
 agencies and organizations serving students and other persons with
 visual impairments in the planning, development, and
 implementation of effective educational and rehabilitative service
 delivery systems associated with educating students with visual
 impairments.  To maximize and make efficient use of state
 facilities, funding, and resources, the services provided in this
 area may include conducting a cooperative program with other
 agencies to serve students who have graduated from high school by
 completing all academic requirements applicable to students in
 general [regular] education, excluding satisfactory performance
 under Section 39.025, who are younger than 22 years of age on
 September 1 of the school year and who have identified needs related
 to vocational training, independent living skills, orientation and
 mobility, social and leisure skills, compensatory skills, or
 remedial academic skills.
 SECTION 3.49.  Section 30.081, Education Code, is amended to
 read as follows:
 Sec. 30.081.  LEGISLATIVE INTENT CONCERNING REGIONAL DAY
 SCHOOLS FOR THE DEAF.  The legislature, by this subchapter, intends
 to continue a process of providing on a statewide basis a suitable
 education to deaf or hard of hearing students who are under 22 [21]
 years of age and assuring that those students have the opportunity
 to become independent citizens.
 SECTION 3.50.  Section 30.083, Education Code, is amended to
 read as follows:
 Sec. 30.083.  STATEWIDE PLAN.  [(a)]  The director of
 services shall develop and administer a comprehensive statewide
 plan for educational services for students who are deaf or hard of
 hearing and receive special education and related services through
 a regional day school program for the deaf[, including continuing
 diagnosis and evaluation, counseling, and teaching].  The plan
 shall be included as part of the comprehensive state plan under
 Section 30.002 [designed to accomplish the following objectives:
 [(1)  providing assistance and counseling to parents of
 students who are deaf or hard of hearing in regional day school
 programs for the deaf and admitting to the programs students who
 have a hearing loss that interferes with the processing of
 linguistic information;
 [(2)  enabling students who are deaf or hard of hearing
 to reside with their parents or guardians and be provided an
 appropriate education in their home school districts or in regional
 day school programs for the deaf;
 [(3)  enabling students who are deaf or hard of hearing
 who are unable to attend schools at their place of residence and
 whose parents or guardians live too far from facilities of regional
 day school programs for the deaf for daily commuting to be
 accommodated in foster homes or other residential school facilities
 provided for by the agency so that those children may attend a
 regional day school program for the deaf;
 [(4)  enrolling in the Texas School for the Deaf those
 students who are deaf or hard of hearing whose needs can best be met
 in that school and designating the Texas School for the Deaf as the
 statewide educational resource for students who are deaf or hard of
 hearing;
 [(5)  encouraging students in regional day school
 programs for the deaf to attend general education classes on a
 part-time, full-time, or trial basis; and
 [(6)  recognizing the need for development of language
 and communications abilities in students who are deaf or hard of
 hearing, but also calling for the use of methods of communication
 that will meet the needs of each individual student, with each
 student assessed thoroughly so as to ascertain the student's
 potential for communications through a variety of means, including
 through oral or aural means, fingerspelling, or sign language].
 [(b)  The director of services may establish separate
 programs to accommodate diverse communication methodologies.]
 SECTION 3.51.  Section 37.146(a), Education Code, is amended
 to read as follows:
 (a)  A complaint alleging the commission of a school offense
 must, in addition to the requirements imposed by Article 45A.101,
 Code of Criminal Procedure:
 (1)  be sworn to by a person who has personal knowledge
 of the underlying facts giving rise to probable cause to believe
 that an offense has been committed; and
 (2)  be accompanied by a statement from a school
 employee stating:
 (A)  whether the child is eligible for or receives
 special education services under Subchapter A, Chapter 29; and
 (B)  the graduated sanctions, if required under
 Section 37.144, that were imposed on the child before the complaint
 was filed.
 SECTION 3.52.  Section 38.003(c-1), Education Code, is
 amended to read as follows:
 (c-1)  The agency by rule shall develop procedures designed
 to allow the agency to:
 (1)  effectively audit and monitor and periodically
 conduct site visits of all school districts to ensure that
 districts are complying with this section, including the program
 approved by the State Board of Education under this section;
 (2)  identify any problems school districts experience
 in complying with this section, including the program approved by
 the State Board of Education under this section;
 (3)  develop reasonable and appropriate remedial
 strategies to address school district noncompliance and ensure the
 purposes of this section are accomplished, which may include the
 publication of a recommended evidence-based dyslexia program list;
 [and]
 (4)  solicit input from parents of students enrolled in
 a school district during the auditing and monitoring of the
 district under Subdivision (1) regarding the district's
 implementation of the program approved by the State Board of
 Education under this section; and
 (5)  engage in general supervision activities,
 including activities under the comprehensive system for monitoring
 described by Section 29.010, to ensure school district compliance
 with the program approved by the State Board of Education under this
 section and Part B, Individuals with Disabilities Education Act (20
 U.S.C. Section 1411 et seq.).
 SECTION 3.53.  Section 48.009(b), Education Code, is amended
 to read as follows:
 (b)  The commissioner by rule shall require each school
 district and open-enrollment charter school to report through the
 Public Education Information Management System information
 regarding:
 (1)  the number of students enrolled in the district or
 school who are identified as having dyslexia;
 (2)  the availability of school counselors, including
 the number of full-time equivalent school counselors, at each
 campus;
 (3)  the availability of expanded learning
 opportunities as described by Section 33.252 at each campus;
 (4)  the total number of students, other than students
 described by Subdivision (5), enrolled in the district or school
 with whom the district or school, as applicable, used intervention
 strategies, as that term is defined by Section 26.004, at any time
 during the year for which the report is made;
 (5)  the total number of students enrolled in the
 district or school to whom the district or school provided aids,
 accommodations, or services under Section 504, Rehabilitation Act
 of 1973 (29 U.S.C. Section 794), at any time during the year for
 which the report is made;
 (6)  disaggregated by campus and grade, the number of:
 (A)  children who are required to attend school
 under Section 25.085, are not exempted under Section 25.086, and
 fail to attend school without excuse for 10 or more days or parts of
 days within a six-month period in the same school year;
 (B)  students for whom the district initiates a
 truancy prevention measure under Section 25.0915(a-4); and
 (C)  parents of students against whom an
 attendance officer or other appropriate school official has filed a
 complaint under Section 25.093; [and]
 (7)  the number of students who are enrolled in a high
 school equivalency program, a dropout recovery school, or an adult
 education program provided under a high school diploma and industry
 certification charter school program provided by the district or
 school and who:
 (A)  are at least 18 years of age and under 26
 years of age;
 (B)  have not previously been reported to the
 agency as dropouts; and
 (C)  enroll in the program at the district or
 school after not attending school for a period of at least nine
 months; and
 (8)  students enrolled in a special education program
 under Subchapter A, Chapter 29, as necessary for the agency to
 adequately perform general supervision activities and determine
 funding under Sections 48.102 and 48.1021.
 SECTION 3.54.  Subchapter A, Chapter 48, Education Code, is
 amended by adding Section 48.011 to read as follows:
 Sec. 48.011.  COMMISSIONER AUTHORITY TO RESOLVE UNINTENDED
 CONSEQUENCES. (a)  Subject to Subsection (b), the commissioner
 may, as necessary to implement changes made by the legislature to
 public school finance and school district maintenance and
 operations tax rates during the preceding four state fiscal years:
 (1)  adjust a school district's entitlement under this
 chapter if the funding formulas used to determine the district's
 entitlement result in an unanticipated loss, gain, or other result
 for a school district; and
 (2)  modify dates relating to the adoption of a school
 district's maintenance and operations tax rate and, if applicable,
 an election required for the district to adopt that tax rate.
 (b)  Before making an adjustment under Subsection (a), the
 commissioner shall notify and must receive approval from the
 Legislative Budget Board and the office of the governor.
 (c)  If the commissioner makes an adjustment under
 Subsection (a), the commissioner must provide to the legislature an
 explanation regarding the changes necessary to resolve the
 unintended consequences.
 SECTION 3.55.  Section 48.102, Education Code, is amended to
 read as follows:
 Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in
 average daily attendance in a special education program under
 Subchapter A, Chapter 29, [in a mainstream instructional
 arrangement,] a school district is entitled to an annual allotment
 equal to the basic allotment, or, if applicable, the sum of the
 basic allotment and the allotment under Section 48.101 to which the
 district is entitled, multiplied by a weight in an amount set by the
 legislature in the General Appropriations Act for the highest tier
 of intensity of service for which the student qualifies [1.15].
 (a-1)  Notwithstanding Subsection (a), for the 2025-2026 and
 2026-2027 school years, the amount of an allotment under this
 section shall be determined in accordance with Section 48.1022.
 This subsection expires September 1, 2027.  [For each full-time
 equivalent student in average daily attendance in a special
 education program under Subchapter A, Chapter 29, in an
 instructional arrangement other than a mainstream instructional
 arrangement, a district is entitled to an annual allotment equal to
 the basic allotment, or, if applicable, the sum of the basic
 allotment and the allotment under Section 48.101 to which the
 district is entitled, multiplied by a weight determined according
 to instructional arrangement as follows:
 [Homebound 5.0
 [Hospital class 3.0
 [Speech therapy 5.0
 [Resource room 3.0
 [Self-contained, mild and moderate, regular campus  3.0
 [Self-contained, severe, regular campus  3.0
 [Off home campus 2.7
 [Nonpublic day school 1.7
 [Vocational adjustment class 2.3]
 (b)  The commissioner by rule shall define eight tiers of
 intensity of service for use in determining funding under this
 section.  The commissioner must include one tier specifically
 addressing students receiving special education services in
 residential placement and one tier for students receiving only
 speech therapy  [A special instructional arrangement for students
 with disabilities residing in care and treatment facilities, other
 than state schools, whose parents or guardians do not reside in the
 district providing education services shall be established by
 commissioner rule.  The funding weight for this arrangement shall
 be 4.0 for those students who receive their education service on a
 local school district campus.  A special instructional arrangement
 for students with disabilities residing in state schools shall be
 established by commissioner rule with a funding weight of 2.8].
 (c)  In defining the tiers of intensity of service under
 Subsection (b), the commissioner shall consider:
 (1)  the type, frequency, and nature of services
 provided to a student;
 (2)  the required certifications, licensures, or other
 qualifications for personnel serving the student;
 (3)  any identified or curriculum-required
 provider-to-student ratios for the student to receive the
 appropriate services; and
 (4)  any equipment or technology required for the
 services [For funding purposes, the number of contact hours
 credited per day for each student in the off home campus
 instructional arrangement may not exceed the contact hours credited
 per day for the multidistrict class instructional arrangement in
 the 1992-1993 school year].
 (d)  [For funding purposes the contact hours credited per day
 for each student in the resource room; self-contained, mild and
 moderate; and self-contained, severe, instructional arrangements
 may not exceed the average of the statewide total contact hours
 credited per day for those three instructional arrangements in the
 1992-1993 school year.
 [(e)  The commissioner by rule shall prescribe the
 qualifications an instructional arrangement must meet in order to
 be funded as a particular instructional arrangement under this
 section.  In prescribing the qualifications that a mainstream
 instructional arrangement must meet, the commissioner shall
 establish requirements that students with disabilities and their
 teachers receive the direct, indirect, and support services that
 are necessary to enrich the regular classroom and enable student
 success.
 [(f)  In this section, "full-time equivalent student" means
 30 hours of contact a week between a special education student and
 special education program personnel.
 [(g)  The commissioner shall adopt rules and procedures
 governing contracts for residential placement of special education
 students.  The legislature shall provide by appropriation for the
 state's share of the costs of those placements.
 [(h)]  At least 55 percent of the funds allocated under this
 section must be used in the special education program under
 Subchapter A, Chapter 29.
 (e) [(i)]  The agency shall ensure [encourage] the placement
 of students in special education programs, including students in
 residential placement [instructional arrangements], in the least
 restrictive environment appropriate for their educational needs.
 (f) [(j)]  A school district that provides an extended year
 program required by federal law for special education students who
 may regress is entitled to receive funds in an amount equal to [75
 percent, or a lesser percentage determined by the commissioner, of]
 the basic allotment, or, if applicable, the sum of the basic
 allotment and the allotment under Section 48.101 to which the
 district is entitled for each [full-time equivalent] student in
 average daily attendance, multiplied by the amount designated for
 the highest tier of intensity of service for which the student
 qualifies [student's instructional arrangement] under this
 section, for each day the program is provided divided by the number
 of days in the minimum school year. [The total amount of state
 funding for extended year services under this section may not
 exceed $10 million per year.]  A school district may use funds
 received under this section only in providing an extended year
 program.
 (g) [(k)]  From the total amount of funds appropriated for
 special education under this section, the commissioner shall
 withhold an amount specified in the General Appropriations Act, and
 distribute that amount to school districts for programs under
 Section 29.014.  The program established under that section is
 required only in school districts in which the program is financed
 by funds distributed under this subsection and any other funds
 available for the program.  After deducting the amount withheld
 under this subsection from the total amount appropriated for
 special education, the commissioner shall reduce each district's
 allotment proportionately and shall allocate funds to each district
 accordingly.
 (h)  Not later than December 1 of each even-numbered year,
 the commissioner shall submit to the Legislative Budget Board, for
 purposes of the allotment under this section, proposed weights for
 the tiers of intensity of service for the next state fiscal
 biennium.
 SECTION 3.56.  Subchapter C, Chapter 48, Education Code, is
 amended by adding Sections 48.1021 and 48.1022 to read as follows:
 Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
 (a)  For each student in a special education program under
 Subchapter A, Chapter 29, a school district is entitled to an
 allotment in an amount set by the legislature in the General
 Appropriations Act for the service group for which the student
 receives services.
 (a-1)  Notwithstanding Subsection (a), for the 2025-2026 and
 2026-2027 school years, the amount of an allotment under this
 section shall be determined in accordance with Section 48.1022.
 This subsection expires September 1, 2027.
 (b)  The commissioner by rule shall establish at least four
 service groups for use in determining funding under this section.
 In establishing the groups, the commissioner must consider:
 (1)  the type, frequency, and nature of services
 provided to a student;
 (2)  the required certifications, licensures, or other
 qualifications for personnel serving the student;
 (3)  any identified or curriculum-required
 provider-to-student ratios for the student to receive the
 appropriate services; and
 (4)  any equipment or technology required for the
 services.
 (c)  At least 55 percent of the funds allocated under this
 section must be used for a special education program under
 Subchapter A, Chapter 29.
 (d)  Not later than December 1 of each even-numbered year,
 the commissioner shall submit to the Legislative Budget Board, for
 purposes of the allotment under this section, proposed amounts of
 funding for the service groups for the next state fiscal biennium.
 Sec. 48.1022.  SPECIAL EDUCATION TRANSITION FUNDING.
 (a)  For the 2025-2026 and 2026-2027 school years, the commissioner
 may adjust weights or amounts provided under Section 48.102 or
 48.1021 as necessary to ensure compliance with requirements
 regarding maintenance of state financial support under 20 U.S.C.
 Section 1412(a)(18) and maintenance of local financial support
 under applicable federal law.
 (b)  For the 2025-2026 and 2026-2027 school years, the
 commissioner shall determine the formulas through which school
 districts receive funding under Sections 48.102 and 48.1021.  In
 determining the formulas, the commissioner shall ensure the
 estimated statewide increase from the allotment under Section
 48.102 for the 2024-2025 school year to the sum of the allotments
 under Sections 48.102 and 48.1021 for the 2025-2026 school year is
 approximately $800 million.
 (c)  Each school district and open-enrollment charter school
 shall report to the agency information necessary to implement this
 section.
 (d)  The agency shall provide technical assistance to school
 districts and open-enrollment charter schools to ensure a
 successful transition in funding formulas for special education.
 (e)  This section expires September 1, 2028.
 SECTION 3.57.  Sections 48.103(b), (c), and (d), Education
 Code, are amended to read as follows:
 (b)  A school district is entitled to an allotment under
 Subsection (a) only for a student who:
 (1)  is receiving:
 (A)  instruction, services, or accommodations for
 dyslexia or a related disorder in accordance with[:
 [(A)]  an individualized education program
 developed for the student under Section 29.005; or
 (B)  accommodations for dyslexia or a related
 disorder in accordance with a plan developed for the student under
 Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794); or
 (2)  [is receiving instruction that:
 [(A)  meets applicable dyslexia program criteria
 established by the State Board of Education; and
 [(B)  is provided by a person with specific
 training in providing that instruction; or
 [(3)]  is permitted, on the basis of having dyslexia or
 a related disorder, to use modifications in the classroom or
 accommodations in the administration of assessment instruments
 under Section 39.023 without a program or plan described by
 Subdivision (1).
 (c)  A school district may receive funding for a student
 under each provision of this section, [and] Section 48.102, and
 Section 48.1021 for which [if] the student qualifies [satisfies the
 requirements of both sections].
 (d)  A school district may use [an amount not to exceed 20
 percent of] the allotment provided for a qualifying student under
 this section to contract with a private provider to provide
 supplemental academic services to the student that are recommended
 under the student's program or plan described by Subsection (b).  A
 student may not be excused from school to receive supplemental
 academic services provided under this subsection.
 SECTION 3.58.  Section 48.110(d), Education Code, is amended
 to read as follows:
 (d)  For each annual graduate in a cohort described by
 Subsection (b) who demonstrates college, career, or military
 readiness as described by Subsection (f) in excess of the minimum
 number of students determined for the applicable district cohort
 under Subsection (c), a school district is entitled to an annual
 outcomes bonus of:
 (1)  if the annual graduate is educationally
 disadvantaged, $5,000;
 (2)  if the annual graduate is not educationally
 disadvantaged, $3,000; and
 (3)  if the annual graduate is enrolled in a special
 education program under Subchapter A, Chapter 29, $4,000 [$2,000],
 regardless of whether the annual graduate is educationally
 disadvantaged.
 SECTION 3.59.  Section 48.151(g), Education Code, is amended
 to read as follows:
 (g)  A school district or county that provides special
 transportation services for eligible special education students is
 entitled to a state allocation at a [paid on a previous year's
 cost-per-mile basis. The] rate per mile equal to the sum of the
 rate per mile set under Subsection (c) and $0.13, or a greater
 amount provided [allowable shall be set] by appropriation [based on
 data gathered from the first year of each preceding biennium].
 Districts may use a portion of their support allocation to pay
 transportation costs, if necessary. The commissioner may grant an
 amount set by appropriation for private transportation to reimburse
 parents or their agents for transporting eligible special education
 students. The mileage allowed shall be computed along the shortest
 public road from the student's home to school and back, morning and
 afternoon. The need for this type of transportation shall be
 determined on an individual basis and shall be approved only in
 extreme hardship cases.
 SECTION 3.60.  Subchapter D, Chapter 48, Education Code, is
 amended by adding Section 48.158 to read as follows:
 Sec. 48.158.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
 EVALUATION. For each child for whom a school district conducts a
 full individual and initial evaluation under Section 29.004 or 20
 U.S.C. Section 1414(a)(1), the district is entitled to an allotment
 of $1,000 or a greater amount provided by appropriation.
 SECTION 3.61.  Section 48.265(a), Education Code, is amended
 to read as follows:
 (a)  If [Notwithstanding any other provision of law, if] the
 commissioner determines that the amount appropriated for the
 purposes of the Foundation School Program exceeds the amount to
 which school districts are entitled under this chapter, the
 commissioner may provide [by rule shall establish a grant program
 through which excess funds are awarded as] grants using the excess
 money for the purchase of video equipment, or for the reimbursement
 of costs for previously purchased video equipment, used for
 monitoring special education classrooms or other special education
 settings required under Section 29.022.
 SECTION 3.62.  Section 48.279(e), Education Code, is amended
 to read as follows:
 (e)  After the commissioner has replaced any withheld
 federal funds as provided by Subsection (d), the commissioner shall
 distribute the remaining amount, if any, of funds described by
 Subsection (a) to proportionately increase funding for the special
 education allotment under Section 48.102 and the special education
 service group allotment under Section 48.1021.
 SECTION 3.63.  Subchapter G, Chapter 48, Education Code, is
 amended by adding Sections 48.304, 48.306, and 48.315 to read as
 follows:
 Sec. 48.304.  DAY PLACEMENT PROGRAM OR COOPERATIVE FUNDING.
 (a) For each qualifying day placement program or cooperative that a
 regional education service center, school district, or
 open-enrollment charter school establishes, the program or
 cooperative is entitled to an allotment of:
 (1)  $250,000 for the first year of the program's or
 cooperative's operation; and
 (2)  the sum of:
 (A)  $100,000 for each year of the program's or
 cooperative's operation after the first year; and
 (B)  $150,000 if at least three students are
 enrolled in the program or cooperative for a year described by
 Paragraph (A).
 (b)  A day placement program or cooperative qualifies for
 purposes of Subsection (a) if:
 (1)  the program or cooperative complies with
 commissioner rules adopted for purposes of this section under
 Section 48.004;
 (2)  the program or cooperative offers services to
 students who are enrolled at any school district or open-enrollment
 charter school in the county in which the program or cooperative is
 offered, unless the commissioner by rule waives or modifies the
 requirement under this subdivision for the program or cooperative
 to serve all students in a county; and
 (3)  the agency has designated the program or
 cooperative for service in the county in which the program or
 cooperative is offered and determined that, at the time of
 designation, the program or cooperative increases the availability
 of day placement services in the county.
 (c)  The agency may not designate more than one day placement
 program or cooperative for service per county each year.
 (d)  The agency may designate a regional education service
 center to implement and administer this section.
 (e)  Notwithstanding any other provision of this section,
 the agency may not provide an allotment under this section to more
 than 20 day placement programs or cooperatives for a year.
 Sec. 48.306.  PARENT-DIRECTED SERVICES FOR STUDENTS
 RECEIVING SPECIAL EDUCATION SERVICES GRANT. (a) A student to whom
 the agency awards a grant under Subchapter A-1, Chapter 29, is
 entitled to receive an amount of $1,500 or a greater amount provided
 by appropriation.
 (b)  The legislature shall include in the appropriations for
 the Foundation School Program state aid sufficient for the agency
 to award grants under Subchapter A-1, Chapter 29, in the amount
 provided by this section.
 (c)  A student may receive one grant under Subchapter A-1,
 Chapter 29, unless the legislature appropriates money for an
 additional grant in the General Appropriations Act.
 (d)  A regional education service center designated to
 administer the program under Subchapter A-1, Chapter 29, for a
 school year is entitled to an amount equal to four percent of each
 grant awarded under that subchapter for that school year.
 (e)  Notwithstanding Section 7.057, a determination of the
 commissioner under this section is final and may not be appealed.
 Sec. 48.315.  FUNDING FOR REGIONAL DAY SCHOOL PROGRAMS FOR
 THE DEAF. (a)  The program administrator or fiscal agent of a
 regional day school program for the deaf is entitled to receive for
 each school year an allotment of $6,925, or a greater amount
 provided by appropriation, for each student receiving services from
 the program.
 (b)  Notwithstanding Subsection (a), the agency shall adjust
 the amount of an allotment under that subsection for a school year
 to ensure the total amount of allotments provided under that
 subsection is at least $35 million for that school year.
 SECTION 3.64.  The following provisions of the Education
 Code are repealed:
 (1)  Section 7.055(b)(24);
 (2)  Sections 7.102(c)(18), (19), (20), (21), and (22);
 (3)  Section 29.002;
 (4)  Section 29.0041(c);
 (5)  Section 29.005(f);
 (6)  Section 29.0161;
 (7)  Sections 29.018(c), (d), and (e);
 (8)  Sections 29.308, 29.309, 29.311, 30.001, and
 30.0015;
 (9)  Sections 30.002(c-1), (c-2), (f), (f-1), and (g);
 (10)  Section 30.084;
 (11)  Section 30.087(b); and
 (12)  Section 38.003(d).
 SECTION 3.65.  The commissioner of education shall award a
 grant under Subchapter A-1, Chapter 29, Education Code, as amended
 by this Act, for the 2025-2026 school year to each eligible
 applicant who applied but was not accepted for the 2024-2025 school
 year.
 ARTICLE 4. TRANSITION AND EFFECTIVE DATE
 SECTION 4.01.  (a)  Except as otherwise provided by this Act
 and by Subsection (b) of this section, the changes made by this Act
 to Chapters 7, 8, 12A, 21, 25, 28, 29, 30, 37, and 38, Education
 Code, apply beginning with the 2025-2026 school year.
 (b)  Section 21.0032, Education Code, as added by this Act,
 and Section 29.008, Education Code, as amended by this Act, apply
 beginning with the 2026-2027 school year.
 SECTION 4.02.  (a)  Except as otherwise provided by this Act
 and as provided by Subsection (b) of this section, this Act takes
 effect September 1, 2025.
 (b)  The changes made by this Act to Chapters 7, 8, 12A, 21,
 25, 28, 29, 30, 37, and 38, Education Code, and Section 48.283,
 Education Code, take effect immediately if this Act receives a vote
 of two-thirds of all the members elected to each house, as provided
 by Section 39, Article III, Texas Constitution. If this Act does
 not receive the vote necessary for immediate effect, those changes
 take effect September 1, 2025.