89R10957 TSS-D By: Howard H.B. No. 2377 A BILL TO BE ENTITLED AN ACT relating to funding for projects that improve the physical and mental health of public school students and enhance the safety of public schools in this state; authorizing a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle I, Title 2, Education Code, is amended by adding Chapter 47A to read as follows: CHAPTER 47A. STATE SCHOOL HEALTH AND SAFETY FUND AND GRANTS Sec. 47A.001. DEFINITIONS. In this chapter: (1) "Corporation" means the Texas Permanent School Fund Corporation established under Chapter 43. (2) "Fund" means the state school health and safety fund established under Section 7, Article VII, Texas Constitution. (3) "Program" means the school health and safety grant program. Sec. 47A.002. DEPOSITS TO FUND BY COMMISSIONER. Notwithstanding any other law, including Section 48.265, if the commissioner determines that the amount appropriated for a state fiscal year for purposes of administering the Foundation School Program exceeds the amount to which school districts and open-enrollment charter schools are entitled under Chapters 46, 48, and 49 for that year, the commissioner shall deposit a portion of that excess, up to 100 percent, to the credit of the fund. Sec. 47A.003. USES OF FUND. Money in the fund may only be used to provide grants to school districts and open-enrollment charter schools to improve the physical and mental health of students and enhance school safety under Section 47A.005. Sec. 47A.004. ADMINISTRATION OF FUND. (a) The corporation shall hold and invest the fund with the objective of maintaining sufficient liquidity to meet the needs of the fund while striving to maximize returns. In managing the assets of the fund, through procedures and subject to restrictions the corporation considers appropriate, the corporation may acquire, exchange, sell, supervise, manage, or retain any type of investment that a person of ordinary prudence, discretion, and intelligence, exercising reasonable care, skill, and caution, would acquire, exchange, sell, supervise, manage, or retain in light of the fund's investment objective. (b) The corporation may charge a fee not to exceed the amount necessary to cover the costs estimated to be incurred by the corporation in managing and investing the fund. The fee may be assessed on the available balance of the fund each fiscal year. Sec. 47A.005. SCHOOL HEALTH AND SAFETY GRANTS. (a) The commissioner shall establish a school health and safety grant program using proceeds of the fund to reimburse a school district or open-enrollment charter school for student health-related expenditures or expenditures required for the implementation of a school safety plan that has been approved by the agency. (b) The amount of grants awarded to a school district or open-enrollment charter school under the program for a school year may not exceed $10 million. (c) The total amount of grants awarded under the program for a school year may not exceed $500 million. (d) If the amount of grant requests under the program exceeds the amount permitted under Subsection (c) in a school year, the commissioner shall proportionately reduce the amount of each grant in an amount necessary to limit the total amount of grants provided to the amount permitted under Subsection (c). (e) Notwithstanding Subsection (b) and subject to the limitation under Subsection (c), if excess funds are available for a school year, the commissioner may provide additional grants to school districts and open-enrollment charter schools that incurred eligible expenses in an amount that exceeded the amount in Subsection (b). Sec. 47A.006. RULES. The commissioner, in consultation with the corporation, may adopt rules as necessary to implement this chapter. SECTION 2. The heading to Section 48.115, Education Code, is amended to read as follows: Sec. 48.115. SCHOOL HEALTH AND SAFETY ALLOTMENT. SECTION 3. Section 48.115, Education Code, is amended by amending Subsections (a) and (b) and adding Subsection (c-2) to read as follows: (a) A [Except as provided by Subsection (a-1), a] school district is entitled to an annual allotment of $200 [equal to the sum of the following amounts or a greater amount provided by appropriation: [(1) $10] for each student in average daily attendance [, plus $1 for each student in average daily attendance per every $50 by which the district's maximum basic allotment under Section 48.051 exceeds $6,160, prorated as necessary; and [(2) $15,000 per campus]. (b) A school district must use funds received under this section as follows: (1) 50 percent must be used to improve the physical and mental health of district students; and (2) 50 percent must be used [Funds allocated under this section must be used] to improve school safety and security [, including costs associated with: [(1) securing school facilities in accordance with the requirements of Section 37.351, including: [(A) improvements to school infrastructure; [(B) the use or installation of perimeter security fencing conducive to a public school learning environment or physical barriers, which may not include razor wire; [(C) exterior door and window safety and security upgrades, including exterior door numbering and locking systems and security film that provides resistance to a forced entry; and [(D) the purchase and maintenance of: [(i) security cameras and, if the district has already installed security cameras, other security equipment, including video surveillance as provided by Section 29.022; and [(ii) technology, including communications systems or devices, such as silent panic alert devices, two-way radios, or wireless Internet booster equipment, that facilitates communication and information sharing between students, school personnel, and first responders in an emergency; [(2) providing security for the district, including: [(A) employing school district peace officers, private security officers, and school marshals; and [(B) collaborating with local law enforcement agencies, such as entering into a memorandum of understanding for the assignment of school resource officers to schools in the district; [(3) school safety and security measures, including: [(A) active shooter and emergency response training; [(B) prevention and treatment programs relating to addressing adverse childhood experiences; and [(C) the prevention, identification, and management of emergencies and threats, using evidence-based, effective prevention practices and including: [(i) providing licensed counselors, social workers, chaplains, and individuals trained in restorative discipline and restorative justice practices; [(ii) providing mental health personnel and support, including chaplains; [(iii) providing behavioral health services, including services provided by chaplains; [(iv) establishing threat reporting systems; and [(v) developing and implementing programs focused on restorative justice practices, culturally relevant instruction, and providing mental health support, including support provided by chaplains; [(4) providing programs related to suicide prevention, intervention, and postvention, including programs provided by chaplains; and [(5) employing a school safety director and other personnel to manage and monitor school safety initiatives and the implementation of school safety requirements for the district]. (c-2) Subsection (c-1) does not apply to the provision of behavioral health services or programming. SECTION 4. Section 37.108(b-1), Education Code, is amended to read as follows: (b-1) In a school district's safety and security audit required under Subsection (b), the district must certify that the district used the funds provided to the district through the school health and safety allotment under Section 48.115 described by Subsection (b)(2) of that section only for the purposes provided by that subsection [section]. SECTION 5. Section 37.117(c), Education Code, as added by Chapter 1 (S.B. 838), Acts of the 88th Legislature, Regular Session, 2023, is amended to read as follows: (c) To comply with this section, a school district or open-enrollment charter school may: (1) use funds provided to the district or school through the school health and safety allotment under Section 48.115 or other available funds; and (2) use the district's or school's customary procurement process. SECTION 6. Section 37.354(a), Education Code, is amended to read as follows: (a) The commissioner may authorize a school district to use money provided to the district for the purpose of improving school safety and security, including the school health and safety allotment under Section 48.115 or any other funding or grant money available to the district for that purpose, to comply with the requirements of this subchapter. SECTION 7. Section 48.115(a-1), Education Code, is repealed. SECTION 8. It is the intent of the 89th Legislature, Regular Session, 2025, that the amendments made by this Act be harmonized with another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes. SECTION 9. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2025. (b) Section 1 of this Act takes effect January 1, 2026, but only if the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, creating the state school health and safety fund to provide financial support for projects that improve the physical and mental health of public school students and enhance the safety of public schools in this state is approved by the voters. If that constitutional amendment is not approved by the voters, Section 1 of this Act has no effect.