By: Landgraf H.B. No. 3622 A BILL TO BE ENTITLED AN ACT relating to certain alternative education programs designed for students at risk of dropping out of school. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 29.0822, Education Code, is amended by amending Subsection (d) and adding Subsection (d-2) to read as follows: (d) The commissioner may adopt rules for the administration of this section, including rules establishing application requirements. Subject to Subsection (d-1) and (d-2), the commissioner shall calculate average daily attendance for students served under this section. The commissioner shall allow accumulations of hours of instruction for students whose schedule would not otherwise allow full state funding. Funding under this subsection shall be determined based on the number of instructional days in the school district calendar and a seven-hour school day, but attendance may be cumulated over a school year, including any summer or vacation session. The attendance of students who accumulate less than the number of attendance hours required under this subsection shall be proportionately reduced for funding purposes. The commissioner may: (1) set maximum funding amounts for an individual course under this section; and (2) limit funding for the attendance of a student described by Subsection (a)(3) in a course under this section to funding only for the attendance necessary for the student to earn class credit that, as a result of attendance requirements under Section 25.092, the student would not otherwise be able to receive without retaking the class. (d-2) In calculating average daily attendance for students served under this section, the commissioner shall not limit the average daily attendance resulting from the accumulations of hours of instruction in a particular reporting period, if the annual average daily attendance accumulated for a school year does not exceed the equivalent of one student in average daily attendance with a perfect attendance rate. The commissioner shall only apply a limitation on average daily attendance resulting from the accumulations of hours of instruction under this section on an annual basis. SECTION 2. Section 48.153, Education Code, is amended to read as follows: (a) A school district or open-enrollment charter school is entitled to $500 [$250] for each student in average daily attendance who: (1) resides in a residential placement facility; [or] (2) is provided services from a private or public community-based dropout recovery education program or education management organization while remaining enrolled in their designated district campus of residence; or (3) [(2)] is at a district or school or a campus of the district or school that is designated as a dropout recovery school under Section 39.0548. (b) For purposes of Subsection (a)(2), a private or public community-based dropout recovery education program or education management organization is defined in Section 29.081(e), Education Code. SECTION 3. This Act takes effect September 1, 2025.