89R13492 KJE-F By: Reynolds H.B. No. 3297 A BILL TO BE ENTITLED AN ACT relating to the establishment of the Texas prekindergarten fund to support public school prekindergarten education. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter E, Chapter 29, Education Code, is amended by adding Section 29.1555 to read as follows: Sec. 29.1555. TEXAS PREKINDERGARTEN FUND. (a) In this section, "fund" means the Texas prekindergarten fund established under this section. (b) The Texas prekindergarten fund is a dedicated account in the general revenue fund. (c) The fund consists of: (1) money appropriated or transferred to the fund; (2) any revenue that by law is dedicated for deposit to the credit of the fund; (3) interest and investment earnings on money in the fund; and (4) money from gifts, grants, or donations to the fund. (d) Money in the fund may be used only to: (1) expand access to high quality prekindergarten programs for eligible children; (2) provide financial assistance to school districts and open-enrollment charter schools that offer prekindergarten; (3) support professional development and training for teachers who teach prekindergarten; and (4) enhance facilities and instructional resources for prekindergarten programs. (e) The agency shall allocate money appropriated from the fund to school districts and open-enrollment charter schools: (1) based on: (A) the percentage of educationally disadvantaged students enrolled in the district or school; (B) geographic and demographic needs at the district or school; and (C) the district's or school's compliance with the standards for high quality prekindergarten programs under Subchapter E-1; and (2) prioritizing districts and schools that: (A) serve low-income families; (B) serve rural and underserved communities; or (C) offer a prekindergarten program that demonstrates high performance in early childhood education outcomes. (f) Not later than September 1 of each year, the agency shall submit to the governor and the legislature a report on: (1) the distribution of money appropriated from the fund during the preceding school year; (2) the impact of prekindergarten programs that received money appropriated from the fund on student performance during the preceding school year; and (3) recommendations for legislative or other action. (g) The commissioner shall adopt rules as necessary to implement this section. SECTION 2. This Act takes effect September 1, 2025.