Bill Text: TX HB21 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to the funding of primary and secondary education.

Spectrum: Slight Partisan Bill (Republican 16-8)

Status: (Engrossed) 2017-05-27 - Senate appoints conferees-reported [HB21 Detail]

Download: Texas-2017-HB21-Comm_Sub.html
 
 
  By: Huberty, et al. H.B. No. 21
        (Senate Sponsor - Taylor of Galveston)
         (In the Senate - Received from the House April 24, 2017;
  May 9, 2017, read first time and referred to Committee on
  Education; May 16, 2017, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 8, Nays 2,
  1 present not voting; May 16, 2017, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 21 By:  Taylor of Galveston
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the funding of primary and secondary education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7.055(b), Education Code, is amended by
  adding Subdivision (42) to read as follows:
               (42)  The commissioner may accept a gift, donation, or
  other contribution on behalf of the public school system or agency
  and, unless otherwise specified by the donor, may use the
  contribution for the benefit of the public school system or agency
  in the manner the commissioner determines appropriate.
         SECTION 2.  Section 7.062(c), Education Code, is amended to
  read as follows:
         (c)  Except as otherwise provided by this subsection, if the
  commissioner certifies that the amount appropriated for a state
  fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
  the amount to which school districts are entitled under those
  subchapters for that year, the commissioner shall use the excess
  funds, in an amount not to exceed $20 million in any state fiscal
  year, for the purpose of making grants under this section. The use
  of excess funds under this subsection has priority over any
  provision of Chapter 42 that permits or directs the use of excess
  foundation school program funds, including Sections [42.2517,]
  42.2521, 42.2522, and 42.2531. The commissioner is required to use
  excess funds as provided by this subsection only if the
  commissioner is not required to reduce the total amount of state
  funds allocated to school districts under Section 42.253(h).
         SECTION 3.  Section 11.158(a), Education Code, is amended to
  read as follows:
         (a)  The board of trustees of an independent school district
  may require payment of:
               (1)  a fee for materials used in any program in which
  the resultant product in excess of minimum requirements becomes, at
  the student's option, the personal property of the student, if the
  fee does not exceed the cost of materials;
               (2)  membership dues in student organizations or clubs
  and admission fees or charges for attending extracurricular
  activities, if membership or attendance is voluntary;
               (3)  a security deposit for the return of materials,
  supplies, or equipment;
               (4)  a fee for personal physical education and athletic
  equipment and apparel, although any student may provide the
  student's own equipment or apparel if it meets reasonable
  requirements and standards relating to health and safety
  established by the board;
               (5)  a fee for items of personal use or products that a
  student may purchase at the student's option, such as student
  publications, class rings, annuals, and graduation announcements;
               (6)  a fee specifically permitted by any other statute;
               (7)  a fee for an authorized voluntary student health
  and accident benefit plan;
               (8)  a reasonable fee, not to exceed the actual annual
  maintenance cost, for the use of musical instruments and uniforms
  owned or rented by the district;
               (9)  a fee for items of personal apparel that become the
  property of the student and that are used in extracurricular
  activities;
               (10)  a parking fee or a fee for an identification card;
               (11)  a fee for a driver training course, not to exceed
  the actual district cost per student in the program for the current
  school year;
               (12)  a fee for a course offered for credit that
  requires the use of facilities not available on the school premises
  or the employment of an educator who is not part of the school's
  regular staff, if participation in the course is at the student's
  option;
               (13)  a fee for a course offered during summer school,
  except that the board may charge a fee for a course required for
  graduation only if the course is also offered without a fee during
  the regular school year;
               (14)  a reasonable fee for transportation of a student
  who lives within two miles of the school the student attends to and
  from that school[, except that the board may not charge a fee for
  transportation for which the school district receives funds under
  Section 42.155(d)]; or
               (15)  a reasonable fee, not to exceed $50, for costs
  associated with an educational program offered outside of regular
  school hours through which a student who was absent from class
  receives instruction voluntarily for the purpose of making up the
  missed instruction and meeting the level of attendance required
  under Section 25.092[; or
               [(16)     if the district does not receive any funds under
  Section 42.155 and does not participate in a county transportation
  system for which an allotment is provided under Section 42.155(i),
  a reasonable fee for the transportation of a student to and from the
  school the student attends].
         SECTION 4.  Effective September 1, 2018, Section
  12.106(a-1), Education Code, is amended to read as follows:
         (a-1)  In determining funding for an open-enrollment charter
  school under Subsection (a):
               (1)  [,] adjustments under Sections 42.102, [42.103,]
  42.104, and 42.105 are based on the average adjustment for the
  state; and
               (2)  the adjustment under Section 42.103 is based on
  the average adjustment for the state that would have been provided
  under that section as it existed on January 1, 2018.
         SECTION 5.  Section 29.153(c), Education Code, is amended to
  read as follows:
         (c)  A prekindergarten class under this section shall be
  operated on a half-day basis. A district is not required to provide
  transportation for a prekindergarten class[, but transportation,
  if provided, is included for funding purposes as part of the regular
  transportation system].
         SECTION 6.  Subchapter F, Chapter 29, Education Code, is
  amended by adding Section 29.194 to read as follows:
         Sec. 29.194.  STUDY ON CAREER AND TECHNOLOGY EDUCATION
  COURSES.  (a) The commissioner shall conduct a study regarding:
               (1)  providing career and technology education courses
  during the summer, including:
                     (A)  the feasibility of providing those courses;
                     (B)  the potential demand for those courses;
                     (C)  any funding considerations associated with
  providing those courses; and
                     (D)  any other matter the commissioner determines
  appropriate; and
               (2)  the feasibility of extending career and technology
  education programs to students enrolled below the eighth grade
  level and providing funding for those programs.
         (b)  Not later than December 1, 2018, the commissioner shall
  submit to the governor and the members of the legislature a report
  on the results of the study and any recommendations for legislative
  or other action.
         (c)  The provisions of this section apply only if the
  commissioner receives sufficient money to pay for the study and
  report from gifts, donations, or other contributions that may be
  used for that purpose.
         (d)  This section expires September 1, 2019.
         SECTION 7.  Chapter 29, Education Code, is amended by adding
  Subchapter J to read as follows:
  SUBCHAPTER J.  EDUCATION SAVINGS ACCOUNT PROGRAM
         Sec. 29.351.  DEFINITIONS. In this subchapter:
               (1)  "Account" means an education savings account
  established under the program.
               (2)  "Child with a disability" means a child who is:
                     (A)  eligible to participate in a school
  district's special education program under Section 29.003; or
                     (B)  covered by Section 504, Rehabilitation Act of
  1973 (29 U.S.C. Section 794).
               (3)  "Curriculum" means a complete course of study for
  a particular content area or grade level.
               (4)  "Financial institution" means a bank, credit
  union, savings bank, or savings and loan association organized
  under the laws of this state, the laws of another state, or federal
  law that has its main office or a branch office in this state. The
  term does not include any institution the deposits of which are not
  insured by the Federal Deposit Insurance Corporation or the
  National Credit Union Administration.
               (5)  "Institution of higher education" and "private or
  independent institution of higher education" have the meanings
  assigned by Section 61.003.
               (6)  "Parent" means a resident of this state who is a
  natural or adoptive parent, managing or possessory conservator,
  legal guardian, custodian, or other person with legal authority to
  act on behalf of a child.
               (7)  "Program" means the education savings account
  program established under this subchapter.
               (8)  "Program participant" means a child and a parent
  of a child enrolled in the program.
         Sec. 29.352.  PURPOSES.  The purposes of the education
  savings account program are to:
               (1)  improve public schools and overall academic
  performance;
               (2)  promote efficiency;
               (3)  promote and preserve the liberties and rights of
  the people; and
               (4)  increase parental options.
         Sec. 29.353.  ESTABLISHMENT OF PROGRAM. (a)  The
  comptroller shall establish and administer an education savings
  account program to provide funding for certain education-related
  expenses of eligible children.
         (b)  The comptroller, with cooperation from the agency,
  shall ensure that information about the program is readily
  available to the public through various sources, including the
  comptroller's and the agency's respective Internet websites. The
  information made available through the comptroller's Internet
  website must include a notice that:
               (1)  states that a private school is not subject to laws
  regarding the provision of educational services in the same manner
  as a public school, and a child with a disability attending a
  private school may not receive the services a child with a
  disability attending a public school is entitled to receive under
  federal and state law; and
               (2)  provides information regarding rights to which a
  child with a disability is entitled under federal and state law if
  the child attends a public school, including:
                     (A)  rights provided under the Individuals with
  Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
  including:
                           (i)  an individualized education program;
                           (ii)  educational services provided in the
  least restrictive environment;
                           (iii)  instruction from certified teachers;
                           (iv)  due process hearings to ensure proper
  and full implementation of an individualized education program;
                           (v)  transition and planning services; and
                           (vi)  supplementary aids and services;
                     (B)  rights provided under Subchapter A; and
                     (C)  other rights provided under federal or state
  law.
         Sec. 29.3531.  EDUCATION SAVINGS ACCOUNT PROGRAM FUND.
  (a)  The education savings account program fund is an account in
  the general revenue fund to be administered by the comptroller.
         (b)  The fund is composed of:
               (1)  general revenue transferred to the fund;
               (2)  money appropriated to the fund;
               (3)  gifts, grants, and donations received under
  Section 29.371; and
               (4)  any other money available for purposes of the
  program.
         (c)  Money in the fund may be appropriated only to the
  comptroller for purposes of making payments to program participants
  and administering the program under this subchapter.
         Sec. 29.354.  ELIGIBLE CHILD. (a)  A child is eligible to
  participate in the program if the child:
               (1)  is a child with a disability;
               (2)  is eligible to attend a public school under
  Section 25.001; and
               (3)  was enrolled in a public school in this state
  during the entire preceding academic year.
         (b)  A child who establishes eligibility under this section
  may participate in the program until the earliest of the following
  dates:
               (1)  the date that is three months after the date on
  which the child graduates from high school;
               (2)  the date on which the child is no longer eligible
  to attend a public school under Section 25.001;
               (3)  the date on which the child enrolls in a public
  school, including an open-enrollment charter school; or
               (4)  the date on which the child is declared ineligible
  for the program by the comptroller under this subchapter.
         (c)  Notwithstanding Subsection (b), the comptroller shall
  establish guidelines for, in the least disruptive manner possible:
               (1)  a child participating in the program to cease
  participation and enroll in a public school, including an
  open-enrollment charter school; and
               (2)  a child who previously participated in the program
  and subsequently enrolled in a public school, including an
  open-enrollment charter school, to resume participation in the
  program.
         Sec. 29.355.  ENROLLMENT IN PROGRAM. (a)  A parent of an
  eligible child may enroll the child in the program for the following
  school year.
         (b)  The comptroller shall by rule create an enrollment form
  for the program and make the enrollment form readily available to
  interested parents through various sources, including the
  comptroller's Internet website. An enrollment form for the program
  must be submitted to the comptroller electronically.
         (c)  The comptroller shall post on the comptroller's
  Internet website and provide to each parent who submits an
  enrollment form a publication that describes the operation of the
  program, including:
               (1)  expenses allowed under the program under Section
  29.357;
               (2)  expense reporting requirements; and
               (3)  a description of the responsibilities of program
  participants and the duties of the comptroller under this
  subchapter.
         (d)  The comptroller shall provide to each parent who submits
  an enrollment form a written copy of the notice described by Section
  29.353(b).  Before the parent may receive funding under the
  program, the parent must sign and return the notice to the
  comptroller.
         Sec. 29.356.  PARTICIPATION IN PROGRAM. (a)  To receive
  funding under the program, a parent of an eligible child must agree
  to:
               (1)  spend funds received through the program only for
  expenses allowed under Section 29.357;
               (2)  notify the comptroller if the child enrolls in a
  public school, including an open-enrollment charter school, not
  later than the 30th day after the date of enrollment; and
               (3)  inform the comptroller if the child graduates from
  high school.
         (b)  The parent of a child participating in the program is
  the trustee of the child's account.
         (c)  The comptroller shall provide annually to each program
  participant the publication provided under Section 29.355(c).
         Sec. 29.357.  APPROVED EDUCATION-RELATED EXPENSES.
  (a)  Funds received under the program may be used only for the
  following expenses incurred by a program participant:
               (1)  tuition and fees:
                     (A)  at a private school accredited by an
  organization that is recognized by the Texas Private School
  Accreditation Commission;
                     (B)  at an institution of higher education or a
  private or independent institution of higher education; or
                     (C)  for an online educational course or program;
               (2)  the purchase of textbooks or other instructional
  materials required by a school, institution, course, or program
  described by Subdivision (1) in which the child is enrolled;
               (3)  fees for classes or other educational services
  provided by a public school, if the classes or services do not
  qualify the child to be included in the school's average daily
  attendance;
               (4)  fees for services provided by a private tutor or
  teaching service;
               (5)  costs of transportation to and from school, not to
  exceed $500 per year;
               (6)  fees for educational therapies or services
  provided by a practitioner or provider;
               (7)  costs of computer hardware and software and other
  technological devices prescribed by a physician to facilitate a
  child's education, not to exceed in any year 10 percent of the total
  amount paid to the program participant's account that year;
               (8)  fees for a nationally norm-referenced achievement
  test or examination, an assessment instrument adopted by the agency
  under Section 39.023, an advanced placement test or similar
  examination, or any examination related to college or university
  admission;
               (9)  fees for the management of the participant's
  account charged by a financial institution; and
               (10)  costs of breakfast or lunch provided to a child
  during the school day by a private school.
         (b)  Expenses allowed under Subsection (a) do not include
  expenses for:
               (1)  consumable supplies, including paper, pens,
  pencils, folders, and notebooks;
               (2)  food, other than breakfast or lunch as authorized
  under Subsection (a)(10); or
               (3)  before-school or after-school child care and child
  care during school holidays and vacations.
         (c)  An education service provider or vendor of educational
  products must provide a program participant with a receipt for each
  expense allowed under Subsection (a) charged by the provider or
  vendor to the participant.
         (d)  The content, subject to Section 29.364(c), or religious
  nature of a product or service may not be considered in determining
  whether a payment for the product or service is an expense allowed
  under Subsection (a).
         (e)  A finding that a program participant used funds
  distributed under the program to pay for an expense not allowed
  under Subsection (a) does not affect the validity of any payment
  made by the participant for an expense that is allowed under that
  subsection.
         Sec. 29.358.  AMOUNT OF PAYMENT; FINANCING. (a)  A parent
  of an eligible child shall receive each year that the child
  participates in the program a payment from the state to the child's
  account in an amount that is equal to 90 percent of the state
  average maintenance and operations expenditures per student for the
  preceding state fiscal year.
         (b)  In addition to any funding the district receives under
  Chapter 42, for each child participating in the program, the school
  district the child would otherwise attend is entitled to receive
  for the first year in which the child participates in the program an
  amount equal to five percent of the state average maintenance and
  operations expenditures per student for the preceding state fiscal
  year.
         (c)  For the first year a child participates in the program,
  the child is included in the weighted average daily attendance of
  the school district the child would otherwise attend for purposes
  of determining the district's equalized wealth level under Chapter
  41.
         (d)  Any funds remaining in a child's account at the end of a
  fiscal year are carried forward to the next fiscal year unless
  another provision of this subchapter mandates the closure of the
  account.
         (e)  The parent of a child participating in the program may
  make payments for the expenses of educational programs, services,
  and products not covered by funds in the child's account.
         (f)  A payment under Subsection (a) may not be financed using
  federal funds or money appropriated from the permanent school fund
  or the available school fund.
         Sec. 29.359.  ADMINISTRATION OF ACCOUNTS. (a)  The
  comptroller may contract with one or more financial institutions to
  establish and manage an account for each child participating in the
  program. A program participant must be able to access the
  participant's account by using an online or electronic transfer
  payment service.
         (b)  The comptroller shall make quarterly payments to each
  program participant's account in equal amounts, with the first
  payment for each school year made on September 1 and the remaining
  payments made on or before the 15th day of November, February, and
  May.
         (c)  The comptroller may deduct an amount from each quarterly
  payment to a program participant's account to cover the
  comptroller's cost of administering the program. The amount
  deducted may not exceed five percent of the payment.
         (d)  Not later than 30 days after the end of each fiscal year,
  the comptroller shall reconcile payments made to and from all
  accounts under the program.
         (e)  On the date on which a child who participated in the
  program is no longer eligible to participate in the program under
  Section 29.354(b), the child's account is closed and any remaining
  funds are returned to the state for deposit in the education savings
  account program fund.
         (f)  The comptroller may contract with a private entity to
  administer all or any part of the program.
         Sec. 29.360.  RANDOM AUDITING OF ACCOUNTS. (a)  The
  comptroller shall contract with a private entity to randomly audit
  accounts as necessary to ensure compliance with applicable law and
  the requirements of the program.
         (b)  In auditing an account, the comptroller or private
  entity may require that a program participant provide further
  information and documentation regarding any payment from the
  participant's account.
         (c)  The private entity shall report to the comptroller any
  violation of this subchapter or other relevant law found by the
  entity during an audit conducted under this section.
         Sec. 29.361.  SUSPENSION OF ACCOUNT. (a)  The comptroller
  shall suspend the account of a program participant who fails to
  comply with applicable law or a requirement of the program,
  including a requirement under Section 29.356(a), or who
  substantially misuses funds received under the program.
         (b)  On suspension of an account under Subsection (a), the
  comptroller shall notify the program participant in writing that
  the account has been suspended and that no further payments may be
  made from the account. The notification must specify the grounds
  for the suspension and state that the participant has 10 business
  days to respond and take any corrective action required by the
  comptroller.
         (c)  On the expiration of the 10-day period under Subsection
  (b), the comptroller shall:
               (1)  order permanent closure of the suspended account
  and declare the program participant ineligible for the program;
               (2)  order temporary reinstatement of the account,
  conditioned on the performance of a specified action by the
  participant; or
               (3)  order full reinstatement of the account.
         (d)  The comptroller may recover funds distributed under the
  program that were used for expenses not allowed under Section
  29.357(a) from the program participant or the entity that received
  the funds if the participant's account is suspended or closed under
  this section.
         Sec. 29.362.  TUITION AND FEES; REFUND PROHIBITED. (a)  An
  education service provider may not charge a child participating in
  the program an amount greater than the standard amount charged for
  that service by the provider.
         (b)  An education service provider or a vendor of educational
  products receiving funds distributed under the program may not in
  any manner rebate, refund, or credit to or share with a program
  participant, or any person on behalf of a participant, any program
  funds paid or owed by the participant to the provider or vendor.
         Sec. 29.363.  REFERRAL TO ATTORNEY GENERAL. (a)  If the
  comptroller obtains evidence of fraudulent use of an account, the
  comptroller may refer the case to the attorney general for
  investigation.
         (b)  With the consent of the appropriate local county or
  district attorney, the attorney general has concurrent
  jurisdiction with the consenting local prosecutor to prosecute an
  offense referred to the attorney general under Subsection (a).
         Sec. 29.364.  PROVIDER ACCOUNTABILITY. (a)  To receive
  funds distributed under the program, a private school must be
  accredited by an organization that is recognized by the Texas
  Private School Accreditation Commission.
         (b)  A practitioner or provider who provides educational
  therapies or services must be licensed or accredited by a regional
  or national accrediting organization to receive funds distributed
  under the program.
         (c)  A private tutor, teaching service, or online
  educational course or program provider must apply to and be
  approved by the commissioner to receive funds distributed under the
  program.
         (d)  To be eligible for approval under Subsection (c), a
  private tutor or each employee of a teaching service who intends to
  provide educational services to a program participant must:
               (1)  be a teacher who:
                     (A)  is certified under Subchapter B, Chapter 21;
                     (B)  holds a National Board Certification issued
  by the National Board for Professional Teaching Standards; or
                     (C)  has experience teaching at an institution of
  higher education or private or independent institution of higher
  education; and
               (2)  either:
                     (A)  complete a national criminal history record
  information review; or
                     (B)  provide to the commissioner documentation
  indicating that the tutor or employee, as applicable, has completed
  a national criminal history record information review within a
  period established by commissioner rule.
         (e)  The commissioner shall review the national criminal
  history record information or documentation for each private tutor
  or teaching service who submits an application under Subsection
  (c).  The tutor or teaching service must provide the commissioner
  with any information requested by the commissioner to enable the
  commissioner to complete the review.
         (f)  The commissioner shall maintain and provide to the
  comptroller a list of private tutors, teaching services, and online
  educational courses or program providers approved to receive funds
  distributed under the program.  The comptroller shall post the list
  on the comptroller's Internet website.
         (g)  A private tutor, teaching service, or online
  educational course or program provider may appeal to the
  comptroller the commissioner's rejection of an application
  submitted under Subsection (c).
         (h)  The commissioner may adopt rules necessary to exercise
  the commissioner's powers and duties under this section.
         Sec. 29.365.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
  AUTONOMY. (a)  An education service provider or vendor of
  educational products that receives funds distributed under the
  program is not an agent of the state or federal government.
         (b)  Except as provided by this subchapter, the comptroller,
  the commissioner, the agency, the State Board of Education, any
  other state agency, or any school district may not:
               (1)  regulate the educational program of an education
  service provider or vendor of educational products that receives
  funds distributed under the program; or
               (2)  exercise control or supervision over a program
  participant or an education service provider or vendor of
  educational products that receives funds distributed under the
  program.
         (c)  The program does not expand the regulatory authority of
  the state or any school district to impose any additional
  regulation on an education service provider or vendor of
  educational products except those reasonably necessary to enforce
  the program as provided by this subchapter.
         (d)  A private school may not be required to modify the
  school's creed, practices, admissions policies, curriculum,
  performance standards, or assessments to receive funds distributed
  under the program.
         (e)  A private school voluntarily selected by a parent for
  the parent's child to attend, with or without governmental
  assistance, may not be required to comply with any state law or rule
  governing the applicable educational program that was not in effect
  on January 1, 2017.
         (f)  In any proceeding challenging a rule adopted by a state
  agency or officer under this subchapter, the agency or officer has
  the burden of proof to establish that the rule:
               (1)  is necessary to implement or enforce the program
  as provided by this subchapter; and
               (2)  does not impose an undue burden on a program
  participant or an education service provider or vendor of
  educational products that receives or seeks to receive funds
  distributed under the program.
         Sec. 29.366.  STUDENT RECORDS AND INFORMATION. (a)  On
  request by the parent of a child participating in the program, the
  school district or open-enrollment charter school that the child
  would otherwise attend shall provide a copy of the child's school
  records possessed by the district or school, if any, to the child's
  parent or, if applicable, the private school the child attends.
         (b)  The agency shall provide to the comptroller any
  information available to the agency requested by the comptroller
  regarding a child who participates or seeks to participate in the
  program. The comptroller may not retain information provided under
  this subsection beyond the period necessary to determine:
               (1)  a child's eligibility to participate in the
  program; or
               (2)  the amount of a payment to a program participant's
  account under Section 29.358.
         Sec. 29.367.  REPORTING NUMBER OF PARTICIPANTS. (a)  Not
  later than October 1 of each year, the comptroller shall notify the
  commissioner and the Legislative Budget Board of the number of
  eligible children likely to participate in the program,
  disaggregated by the school district or open-enrollment charter
  school the eligible children would otherwise attend.
         (b)  Not later than March 1 of each year, the comptroller
  shall provide final information to the commissioner and the
  Legislative Budget Board regarding the number of children
  participating in the program, disaggregated in the same manner as
  the initial information under Subsection (a).
         Sec. 29.368.  ANNUAL SURVEY. The comptroller may conduct an
  annual parental satisfaction survey that asks each parent of a
  child participating in the program to express:
               (1)  the parent's overall level of satisfaction with
  the program; and
               (2)  the parent's opinion on specified topics and
  issues relevant to the effectiveness of the program.
         Sec. 29.369.  PARENT REVIEW COMMITTEE. (a)  A parent review
  committee is established to assist the comptroller, at the
  comptroller's request, in:
               (1)  determining whether certain expenses are allowed
  under Section 29.357; and
               (2)  reviewing an appeal of the commissioner's decision
  to reject an application of a private tutor, teaching service, or
  online educational course or program provider for approval under
  Section 29.364 to receive funds distributed under the program.
         (b)  The committee consists of the comptroller, or a
  representative designated by the comptroller, and eight members
  appointed by the comptroller.  Each appointed member must be a
  parent of a child participating in the program.  In making
  appointments to the committee, the comptroller shall ensure that
  parents from at least four counties are included.
         (c)  An appointed member of the committee serves a one-year
  term at the pleasure of the comptroller and may be reappointed.
         (d)  The comptroller or the representative designated by the
  comptroller, as applicable, is the chair of the committee and may
  vote on a matter before the committee only if there is a tie.
         Sec. 29.370.  RULES. The comptroller shall:
               (1)  adopt rules as necessary to implement this
  subchapter, including:
                     (A)  rules regarding expense reporting
  requirements for program participants; and
                     (B)  rules for implementing this subchapter in a
  manner that ensures compliance with federal law regarding
  confidentiality of student educational information, including the
  Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
  Section 1232g); and
               (2)  coordinate as necessary to:
                     (A)  calculate annually the savings to the state
  from the implementation of the program; and
                     (B)  prevent fraud in financial transactions
  under the program, including by adopting measures to permit
  anonymous fraud reporting by telephone hotline or online
  communication.
         Sec. 29.371.  GIFTS, GRANTS, AND DONATIONS. The comptroller
  may solicit and accept gifts, grants, and donations from any public
  or private source for any expenses related to the administration of
  the program, including the initial implementation of the program.
         Sec. 29.372.  DYSLEXIA ALLOTMENT SET-ASIDE. (a) Each year,
  for each child participating in the program, the agency shall set
  aside a percentage of the state average maintenance and operations
  expenditures per student for the preceding state fiscal year in an
  amount equal to:
               (1)  for the first year the child participates in the
  program, five percent; and
               (2)  in each subsequent year the child participates in
  the program, 10 percent.
         (b)  The amounts set aside under Subsection (a) may be used
  only for purposes of funding the special allotment for students
  with dyslexia or a related disorder under Section 42.1561.
         SECTION 8.  Sections 29.918(a) and (b), Education Code, are
  amended to read as follows:
         (a)  Notwithstanding Section [39.234 or] 42.152, a school
  district or open-enrollment charter school with a high dropout
  rate, as determined by the commissioner, must submit a plan to the
  commissioner describing the manner in which the district or charter
  school intends to use the compensatory education allotment under
  Section 42.152 [and the high school allotment under Section 42.160]
  for developing and implementing research-based strategies for
  dropout prevention. The district or charter school shall submit
  the plan not later than December 1 of each school year preceding the
  school year in which the district or charter school will receive the
  compensatory education allotment [or high school allotment] to
  which the plan applies.
         (b)  A school district or open-enrollment charter school to
  which this section applies may not spend or obligate more than 25
  percent of the district's or charter school's compensatory
  education allotment [or high school allotment] unless the
  commissioner approves the plan submitted under Subsection
  (a).  The commissioner shall complete an initial review of the
  district's or charter school's plan not later than March 1 of the
  school year preceding the school year in which the district or
  charter school will receive the compensatory education allotment
  [or high school allotment] to which the plan applies.
         SECTION 9.  Subchapter C, Chapter 30, Education Code, is
  amended by adding Section 30.0561 to read as follows:
         Sec. 30.0561.  TRANSPORTATION ALLOTMENT. The Texas School
  for the Deaf is entitled to a transportation allotment paid from the
  foundation school fund. The commissioner shall determine the
  appropriate allotment.
         SECTION 10.  Section 30.087(c), Education Code, is amended
  to read as follows:
         (c)  A school district may receive an allotment paid from the
  foundation school fund for transportation of students
  participating in a regional day school program, as determined by
  the commissioner [in the same manner as an allotment for the
  transportation of other special education students].
         SECTION 11.  Section 34.002(c), Education Code, is amended
  to read as follows:
         (c)  The commissioner shall reduce the basic allotment
  provided under Section 42.101 for each student in average daily
  attendance by $125 for a [A] school district that fails or refuses
  to meet the safety standards for school buses established under
  this section [is ineligible to share in the transportation
  allotment under Section 42.155] until the first anniversary of the
  date the district begins complying with the safety standards.
         SECTION 12.  Section 34.007, Education Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  A county transportation system is not entitled to
  receive funding for transportation costs directly from the state.  
  Funding for a county transportation system is provided by each
  school district participating in the county transportation system
  in accordance with the terms of the interlocal contract under
  Chapter 791, Government Code, under which the county provides
  transportation services for the participating districts.
         SECTION 13.  Section 39.0233(a), Education Code, is amended
  to read as follows:
         (a)  The agency, in coordination with the Texas Higher
  Education Coordinating Board, shall adopt a series of questions to
  be included in an end-of-course assessment instrument administered
  under Section 39.023(c) to be used for purposes of Section 51.3062.  
  The questions adopted under this subsection must be developed in a
  manner consistent with any college readiness standards adopted
  under Section [Sections 39.233 and] 51.3062.
         SECTION 14.  Section 41.099(a), Education Code, is amended
  to read as follows:
         (a)  Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
  only to a district that:
               (1)  executes an agreement to purchase all attendance
  credits necessary to reduce the district's wealth per student to
  the equalized wealth level;
               (2)  executes an agreement to purchase attendance
  credits and an agreement under Subchapter E to contract for the
  education of nonresident students who transfer to and are educated
  in the district but who are not charged tuition; or
               (3)  executes an agreement under Subchapter E to
  contract for the education of nonresident students:
                     (A)  to an extent that does not provide more than
  10 percent of the reduction in wealth per student required for the
  district to achieve a wealth per student that is equal to or less
  than the equalized wealth level; and
                     (B)  under which all revenue paid by the district
  to other districts, in excess of the reduction in state aid that
  results from counting the weighted average daily attendance of the
  students served in the contracting district, is required to be used
  for funding a consortium of at least three districts in a county
  with a population of less than 40,000 that is formed to support a
  technology initiative.
         SECTION 15.  Section 41.257, Education Code, is amended to
  read as follows:
         Sec. 41.257.  APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
  [AND TRANSPORTATION ALLOTMENT]. The budget of the consolidated
  district must apply the benefit of the adjustment or allotment to
  the schools of the consolidating district to which Section 42.103
  or[,] 42.105[, or 42.155] would have applied in the event that the
  consolidated district still qualifies as a small or sparse
  district.
         SECTION 16.  Section 42.006(a-1), Education Code, is amended
  to read as follows:
         (a-1)  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 the number of students enrolled in the district or school
  who are identified as having dyslexia or related disorders. The
  agency shall maintain the information provided in accordance with
  this subsection.
         SECTION 17.  Section 42.101(a), Education Code, is amended
  to read as follows:
         (a)  For each student in average daily attendance, not
  including the time students spend each day in special education
  programs in an instructional arrangement other than mainstream
  settings, [or] career and technology education programs, or
  technology applications courses approved for high school credit,
  for which an additional allotment is made under Subchapter C, a
  district is entitled to an allotment equal to the lesser of $5,140 
  [$4,765] or the amount that results from the following formula:
  A = $5,140 [$4,765] X (DCR/MCR)
  where:
         "A" is the allotment to which a district is entitled;
         "DCR" is the district's compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by the maintenance and operations tax
  rate adopted by the district for the 2005 tax year; and
         "MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by $1.50.
         SECTION 18.  Section 42.102, Education Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  Based on a statistical analysis conducted by the
  Legislative Budget Board to determine for each school district the
  current geographic variation in known resource costs and costs of
  education due to factors beyond the control of the district, the
  commissioner shall update the cost of education index used for
  purposes of this section during the 2016-2017 school year.  The
  commissioner periodically may request more current statistical
  analysis from the Legislative Budget Board and further update as
  needed the cost of education index.
         SECTION 19.  Effective September 1, 2023, Sections 42.103(b)
  and (d), Education Code, are amended to read as follows:
         (b)  The basic allotment of a school district that [contains
  at least 300 square miles and] has not more than 1,600 students in
  average daily attendance is adjusted by applying the formula:
  AA = (1 + ((1,600 - ADA) X .0004)) X ABA
         (d)  The basic allotment of a school district that offers a
  kindergarten through grade 12 program and has less than 5,000
  students in average daily attendance is adjusted by applying the
  formula, of the following formulas, that results in the greatest
  adjusted allotment:
               (1)  the formula in Subsection (b), if [or (c) for
  which] the district is eligible for that formula; or
               (2)  AA = (1 + ((5,000 - ADA) X .000025)) X ABA.
         SECTION 20.  Effective September 1, 2018, Section 42.103(c),
  Education Code, is amended to read as follows:
         (c)  The basic allotment of a school district that contains
  less than 300 square miles and has not more than 1,600 students in
  average daily attendance is adjusted by applying the following
  formulas [formula]:
               (1)  for the fiscal year beginning September 1, 2018:
  AA = (1 + ((1,600 - ADA) X .000275 [.00025])) X ABA
               ;
               (2)  for the fiscal year beginning September 1, 2019:
  AA = (1 + ((1,600 - ADA) X .00030)) X ABA
               ;
               (3)  for the fiscal year beginning September 1, 2020:
  AA = (1 + ((1,600 - ADA) X .000325)) X ABA
               ;
               (4)  for the fiscal year beginning September 1, 2021:
  AA = (1 + ((1,600 - ADA) X .00035)) X ABA
               ; and
               (5)  for the fiscal year beginning September 1, 2022:
  AA = (1 + ((1,600 - ADA) X .000375)) X ABA
         SECTION 21.  Subchapter B, Chapter 42, Education Code, is
  amended by adding Section 42.1041 to read as follows:
         Sec. 42.1041.  INELIGIBILITY FOR SMALL OR MID-SIZED DISTRICT
  ADJUSTMENT OR SPARSITY ADJUSTMENT.  (a)  This section applies only
  to a school district that:
               (1)  borders the Red River; and
               (2)  has a student enrollment of less than 90, with more
  than 50 percent of the enrollment consisting of students who have
  transferred from another school district.
         (b)  Notwithstanding Section 42.103, 42.104, or 42.105, a
  school district to which this section applies is ineligible for an
  adjustment under Section 42.103 or 42.105 for any school year
  during which the district:
               (1)  issues bonds for the construction of a new
  instructional facility on property more than five miles from a
  property that before the issuance of the bonds was owned by the
  district and was the location of an instructional facility for the
  previous five years; or
               (2)  makes payments on bonds described by Subdivision
  (1).
         SECTION 22.  Subchapter B, Chapter 42, Education Code, is
  amended by adding Section 42.107 to read as follows:
         Sec. 42.107.  SPECIAL-PURPOSE SCHOOL DISTRICTS OPERATED BY
  GENERAL ACADEMIC TEACHING INSTITUTIONS.  (a)  In each fiscal year of
  the biennium, the commissioner shall allocate funding from the
  foundation school program to each special-purpose school district
  established under Section 11.351 that is operated by a general
  academic teaching institution as defined by Section 61.003, in an
  amount equivalent to the basic allotment in Section 42.101(a)
  multiplied by the number of full-time equivalent students who are
  enrolled in the school district and who reside in this state.
         (b)  In allocating funding to special-purpose school
  districts under this section, the commissioner shall use a payment
  schedule consistent with the payment schedule adopted for
  open-enrollment charter schools.
         (c)  A special-purpose school district that receives state
  funding for a resident student under this section may not charge
  tuition or fees to that student for the academic term for which
  state funding is received, other than fees permitted under Section
  11.158.
         (d)  A special-purpose school district may elect not to
  receive state funding under this section.
         SECTION 23.  Section 42.151(h), Education Code, is amended
  to read as follows:
         (h)  Funds allocated under this section, other than an
  indirect cost allotment established under State Board of Education
  rule or amounts made available for the transportation of special
  education students, must be used in the special education program
  under Subchapter A, Chapter 29.
         SECTION 24.  Section 42.153(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 adjusted basic allotment multiplied by 0.11 [0.1].
         SECTION 25.  The heading to Section 42.154, Education Code,
  is amended to read as follows:
         Sec. 42.154.  CAREER AND TECHNOLOGY EDUCATION AND TECHNOLOGY
  APPLICATIONS ALLOTMENT.
         SECTION 26.  Sections 42.154(a), (b), (c), and (e),
  Education Code, are amended to read as follows:
         (a)  For each full-time equivalent student in average daily
  attendance in an approved career and technology education program
  in grades eight [nine] through 12, in a technology applications
  course approved for high school credit, or in career and technology
  education programs for students with disabilities in grades seven
  through 12, a district is entitled to:
               (1)  an annual allotment equal to the adjusted basic
  allotment multiplied by a weight of 1.35; and
               (2)  $50, if the student is enrolled in:
                     (A)  two or more advanced career and technology
  education classes for a total of three or more credits; or
                     (B)  an advanced course as part of a tech-prep
  program under Subchapter T, Chapter 61.
         (b)  In this section, "full-time equivalent student" means
  30 hours of contact a week between a student and career and
  technology education program or technology applications personnel.
         (c)  Funds allocated under this section, other than an
  indirect cost allotment established under State Board of Education
  rule or amounts made available for the transportation of career and
  technology education students, must be used in providing career and
  technology education programs in grades eight [nine] through 12,
  technology applications courses approved for high school credit, or
  career and technology education programs for students with
  disabilities in grades seven through 12 under Sections 29.182,
  29.183, and 29.184.
         (e)  Out of the total statewide allotment [for career and
  technology education] under this section, the commissioner shall
  set aside an amount specified in the General Appropriations Act,
  which may not exceed an amount equal to one percent of the total
  amount appropriated, to support regional career and technology
  education planning. After deducting the amount set aside under
  this subsection from the total amount appropriated for career and
  technology education and technology applications under this
  section, the commissioner shall reduce each district's tier one
  allotments in the same manner described for a reduction in
  allotments under Section 42.253.
         SECTION 27.  Section 42.1541(a), Education Code, is amended
  to read as follows:
         (a)  For the 2017-2018 and subsequent school years, the [The]
  State Board of Education shall by rule revise [increase] the
  indirect cost allotments established under Sections 42.151(h),
  42.152(c), 42.153(b), and 42.154(c) [42.154(a-1) and (c)] and in
  effect for the 2016-2017 [2010-2011] school year to reflect any
  increase in the percentage of total maintenance and operations
  funding represented by the basic allotment [in proportion to the
  average percentage reduction in total state and local maintenance
  and operations revenue provided under this chapter for the
  2011-2012 school year] as a result of [S.B. Nos. 1 and 2,] Acts of
  the 85th [82nd] Legislature, Regular [1st Called] Session, 2017 
  [2011].
         SECTION 28.  Subchapter C, Chapter 42, Education Code, is
  amended by adding Section 42.1561 to read as follows:
         Sec. 42.1561.  ALLOTMENT FOR STUDENT WITH DYSLEXIA OR
  RELATED DISORDER. (a) Subject to Subsection (b), for each student
  that a school district serves who has been identified as having
  dyslexia or a related disorder, the district is entitled to an
  annual allotment equal to the district's adjusted basic allotment
  as determined under Section 42.102 or Section 42.103, as
  applicable, multiplied by 0.1 for each school year or a greater
  amount provided by appropriation.
         (b)  A school district is entitled to the allotment under
  Subsection (a) only for a student who:
               (1)  is receiving instruction that:
                     (A)  meets applicable dyslexia program criteria
  established by the agency; and
                     (B)  is provided by a person with specific
  training in providing that instruction; or
               (2)  has received the instruction described by
  Subdivision (1) and is permitted, on the basis of having dyslexia or
  a related disorder, to use modifications in the classroom and
  accommodations in the administration of assessment instruments
  under Section 39.023.
         (c)  Funds allotted under this section must be used in
  providing services to students with dyslexia or related disorders.
         (d)  A school district may receive funding for a student
  under this section and Section 42.151 if the student satisfies the
  requirements of both sections.
         (e)  Not more than five percent of a district's students in
  average daily attendance are eligible for funding under this
  section.
         SECTION 29.  Sections 42.158(b), (d-1), and (g), Education
  Code, are amended to read as follows:
         (b)  For the first school year in which students attend a new
  instructional facility, a school district is entitled to an
  allotment of $1,000 [$250] for each student in average daily
  attendance at the facility. For the second school year in which
  students attend that instructional facility, a school district is
  entitled to an allotment of $1,000 [$250] for each additional
  student in average daily attendance at the facility.
         (d-1)  In addition to the appropriation amount described by
  Subsection (d), the amount of $1 million may be appropriated each
  school year to supplement the allotment to which a school district
  is entitled under this section that may be provided using the
  appropriation amount described by Subsection (d). The commissioner
  shall first apply the funds appropriated under this subsection to
  prevent any reduction under Subsection (d) in the allotment for
  attendance at an eligible high school instructional facility,
  subject to the maximum amount of $1,000 [$250] for each student in
  average daily attendance. Any funds remaining after preventing all
  reductions in amounts due for high school instructional facilities
  may be applied proportionally to all other eligible instructional
  facilities, subject to the maximum amount of $1,000 [$250] for each
  student in average daily attendance.
         (g)  In this section:
               (1)  "Instructional[, "instructional] facility" has
  the meaning assigned by Section 46.001.
               (2)  "New instructional facility" includes:
                     (A)  a newly constructed instructional facility;
                     (B)  a repurposed instructional facility; and
                     (C)  a leased facility operating for the first
  time as an instructional facility with a minimum lease term of not
  less than 10 years.
         SECTION 30.  Section 42.2518(a), Education Code, as
  effective September 1, 2017, is amended to read as follows:
         (a)  Beginning with the 2017-2018 school year, a school
  district is entitled to additional state aid to the extent that
  state and local revenue under this chapter and Chapter 41 is less
  than the state and local revenue that would have been available to
  the district under Chapter 41 and this chapter as those chapters
  existed on September 1, 2015, excluding any state aid or adjustment
  in wealth per student that would have been provided under former
  Section 41.002(e)-(g), 42.155, 42.160, 42.2513, or 42.2516, if the
  increase in the residence homestead exemption under Section 1-b(c),
  Article VIII, Texas Constitution, and the additional limitation on
  tax increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
  occurred.
         SECTION 31.  Section 42.253, Education Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding Subsection (b), the commissioner
  shall adjust enrollment estimates and entitlement for each school
  district for each school year based on information provided by the
  comptroller under Section 29.367. This subsection expires
  September 1, 2021.
         SECTION 32.  Subchapter E, Chapter 42, Education Code, is
  amended by adding Section 42.2541 to read as follows:
         Sec. 42.2541.  ESTIMATED PROJECTIONS. (a)  In this section,
  "equivalent equalized wealth level" means an equalized wealth level
  for a state fiscal biennium that results in approximately the same
  number of school districts that are required to take action under
  Chapter 41 to reduce wealth as the number of school districts that
  were required to take that action during the preceding state fiscal
  biennium.
         (b)  Not later than November 1 of each even-numbered year,
  the agency shall:
               (1)  submit to the legislature a projection for an
  equivalent equalized wealth level for the following biennium based
  on the agency's estimate of:
                     (A)  student enrollment under Section
  42.254(a)(1);
                     (B)  the comptroller's estimate of any increase in
  total taxable value of all property in the state under Section
  42.254(a)(2);
                     (C)  the number of school districts offering a
  local optional residence homestead exemption under Section
  11.13(n), Tax Code;
                     (D)  the number of school districts adopting a tax
  rate below the maximum tier one tax rate determined under Section
  42.252;
                     (E)  the projected amount of maintenance and
  operations tax revenue per student in weighted average daily
  attendance of the Austin Independent School District; and
                     (F)  the number of school districts adopting a
  maintenance and operations tax rate of $1.17; and 
               (2)  provide projections for the equalized funding
  elements under Section 42.007 for the following biennium as
  necessary to achieve the equivalent equalized wealth level
  projected under Subdivision (1).
         SECTION 33.  Section 42.302(a), Education Code, is amended
  to read as follows:
         (a)  Each school district is guaranteed a specified amount
  per weighted student in state and local funds for each cent of tax
  effort over that required for the district's local fund assignment
  up to the maximum level specified in this subchapter.  The amount
  of state support, subject only to the maximum amount under Section
  42.303, is determined by the formula:
  GYA = (GL X WADA X DTR X 100) - LR
  where:
         "GYA" is the guaranteed yield amount of state funds to be
  allocated to the district;
         "GL" is the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort, which is an
  amount described by Subsection (a-1) or a greater amount for any
  year provided by appropriation;
         "WADA" is the number of students in weighted average daily
  attendance, which is calculated by dividing the sum of the school
  district's allotments under Subchapters B and C, less any allotment
  [to the district for transportation, any allotment] under Section
  42.158 [or 42.160,] and 50 percent of the adjustment under Section
  42.102, by the basic allotment for the applicable year;
         "DTR" is the district enrichment tax rate of the school
  district, which is determined by subtracting the amounts specified
  by Subsection (b) from the total amount of maintenance and
  operations taxes collected by the school district for the 
  applicable school year and dividing the difference by the quotient
  of the district's taxable value of property as determined under
  Subchapter M, Chapter 403, Government Code, or, if applicable,
  under Section 42.2521, divided by 100; and
         "LR" is the local revenue, which is determined by multiplying
  "DTR" by the quotient of the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 42.2521, divided by 100.
         SECTION 34.  Chapter 42, Education Code, is amended by
  adding Subchapter H to read as follows:
  SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
         Sec. 42.451.  FINANCIAL HARDSHIP GRANTS. (a) From amounts
  appropriated for this subchapter, the commissioner may administer a
  grant program that provides grants to school districts to defray
  financial hardships resulting from changes made to Chapter 41 and
  this chapter that apply after the 2016-2017 school year.
         (b)  The commissioner shall award grants under this
  subchapter to districts as provided by Section 42.452.
         (c)  Except as provided by Subsection (d), funding provided
  to a district under this subchapter is in addition to all other
  funding provided under Chapter 41 and this chapter.
         (d)  A district is not eligible for funding under this
  subchapter for a school year if the district receives for that
  school year an adjustment of the district's taxable value of
  property under Section 42.2521. A district may decline an
  adjustment under Section 42.2521 to maintain eligibility for
  funding under this subchapter.
         (e)  The commissioner may obtain additional information as
  needed from a district or other state or local agency to make
  determinations in awarding grants under this subchapter.
         Sec. 42.452.  AWARD OF GRANTS; AMOUNT. (a) The commissioner
  shall award grants to school districts based on the following
  formula:
  HG = (PL-CL) X (TR) X (TAHG/TEHG)
  where:
         "HG" is the amount of a district's hardship grant;
         "PL" is the amount of funding under previous law to which a
  district would be entitled under Chapter 41 and this chapter as
  those chapters existed on January 1, 2017, determined using current
  school year data for the district;
         "CL" is the amount of current law funding under Chapter 41 and
  this chapter to which a district is entitled;
         "TR" is a district's maintenance and operations tax rate, as
  specified by the comptroller's most recent certified report;
         "TAHG" is the total funding available for grants under
  Section 42.456 for a school year; and
         "TEHG" is the sum of the combined amounts for all districts
  calculated by applying the formula (PL-CL) X (TR) for each
  district.
         (b)  A school district's hardship grant awarded under this
  subchapter for a school year may not exceed the lesser of:
               (1)  the amount equal to 10 percent of the total amount
  of funds available for grants under this subchapter for that school
  year; or
               (2)  the amount by which "PL" exceeds "CL" for that
  district for that school year.
         (c)  For purposes of calculating the formula under
  Subsection (a), the commissioner shall:
               (1)  if the value of (PL-CL) for a school district
  results in a negative number, use zero for the value of (PL-CL);
               (2)  if a school district's maintenance and operations
  tax rate ("TR") is greater than $1, use $1 for the value of "TR";
               (3)  use a maintenance and operations tax rate ("TR")
  of $1 for each open-enrollment charter school, each special-purpose
  school district established under Subchapter H, Chapter 11, and the
  South Texas Independent School District; and
               (4)  if (TAHG/TEHG) equals a value greater than one,
  use a value of one for (TAHG/TEHG).
         (d)  If funds remain available under this subchapter for a
  school year after determining initial grant amounts under
  Subsection (a), as adjusted to reflect the limits imposed by
  Subsection (b), the commissioner shall reapply the formula as
  necessary to award all available funds.
         Sec. 42.453.  ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
  SCHOOL.  An open-enrollment charter school is eligible for a grant
  under this subchapter in the same manner as a school district.
         Sec. 42.454.  REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
  DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
  service center or a county department of education is not eligible
  for a grant under this subchapter.
         Sec. 42.455.  CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. A
  school district is not eligible for a grant under this subchapter if
  for the 2015-2016 school year the district's expenditures per
  student in average daily attendance, excluding bond debt service
  payments, capital outlays, and facilities acquisition and
  construction costs, exceeded an amount that is equal to 110 percent
  of the state average amount for that school year of expenditures per
  student in average daily attendance, excluding bond debt service
  payments, capital outlays, and facilities acquisition and
  construction costs, as those amounts are determined by the
  commissioner.
         Sec. 42.456.  FUNDING LIMIT. The amount of grants awarded by
  the commissioner under this subchapter may not exceed $125 million
  for the 2017-2018 school year or $34 million for the 2018-2019
  school year.
         Sec. 42.457.  NO ADJUSTMENT BASED ON REVISED DATA. The
  commissioner may not adjust the amount of a school district's grant
  under this subchapter based on revisions to the district's data
  received after a grant has been awarded.
         Sec. 42.458.  RULES. The commissioner may adopt rules as
  necessary to administer this subchapter.
         Sec. 42.459.  DETERMINATION FINAL. A determination by the
  commissioner under this subchapter is final and may not be
  appealed.
         Sec. 42.460.  EXPIRATION. This subchapter expires September
  1, 2019.
         SECTION 35.  Section 411.0901, Government Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  The Texas Education Agency is entitled to obtain
  criminal history record information maintained by the department
  about a person who is a private tutor or an employee of a teaching
  service who intends to provide educational services to a child
  participating in the program established under Subchapter J,
  Chapter 29, Education Code, and is seeking approval to receive
  funds distributed under that program.
         SECTION 36.  (a)  Effective September 1, 2017, the following
  provisions of the Education Code are repealed:
               (1)  Section 29.097(g);
               (2)  Section 29.098(e);
               (3)  Section 39.233;
               (4)  Section 39.234;
               (5)  Sections 41.002(e), (f), and (g);
               (6)  Section 42.1541(c);
               (7)  Section 42.155;
               (8)  Section 42.160;
               (9)  Section 42.2513; and
               (10)  Section 42.2517.
         (b)  Effective September 1, 2023, Section 42.103(c),
  Education Code, is repealed.
         SECTION 37.  (a)  The constitutionality and other validity
  under the state or federal constitution of all or any part of
  Subchapter J, Chapter 29, Education Code, as added by this Act, may
  be determined in an action for declaratory judgment in a district
  court in Travis County under Chapter 37, Civil Practice and
  Remedies Code, except that this section does not authorize an award
  of attorney's fees against this state and Section 37.009, Civil
  Practice and Remedies Code, does not apply to an action filed under
  this section.
         (b)  An appeal of a declaratory judgment or order, however
  characterized, of a district court, including an appeal of the
  judgment of an appellate court, holding or otherwise determining
  that all or any part of Subchapter J, Chapter 29, Education Code, as
  added by this Act, is constitutional or unconstitutional, or
  otherwise valid or invalid, under the state or federal constitution
  is an accelerated appeal.
         (c)  If the judgment or order is interlocutory, an
  interlocutory appeal may be taken from the judgment or order and is
  an accelerated appeal.
         (d)  A district court in Travis County may grant or deny a
  temporary or otherwise interlocutory injunction or a permanent
  injunction on the grounds of the constitutionality or
  unconstitutionality, or other validity or invalidity, under the
  state or federal constitution of all or any part of Subchapter J,
  Chapter 29, Education Code, as added by this Act.
         (e)  There is a direct appeal to the Texas Supreme Court from
  an order, however characterized, of a trial court granting or
  denying a temporary or otherwise interlocutory injunction or a
  permanent injunction on the grounds of the constitutionality or
  unconstitutionality, or other validity or invalidity, under the
  state or federal constitution of all or any part of Subchapter J,
  Chapter 29, Education Code, as added by this Act.
         (f)  The direct appeal is an accelerated appeal.
         (g)  This section exercises the authority granted by Section
  3-b, Article V, Texas Constitution.
         (h)  The filing of a direct appeal under this section will
  automatically stay any temporary or otherwise interlocutory
  injunction or permanent injunction granted in accordance with this
  section pending final determination by the Texas Supreme Court,
  unless the supreme court makes specific findings that the applicant
  seeking such injunctive relief has pleaded and proved that:
               (1)  the applicant has a probable right to the relief it
  seeks on final hearing; and
               (2)  the applicant will suffer a probable injury that
  is imminent and irreparable, and that the applicant has no other
  adequate legal remedy.
         (i)  An appeal under this section, including an
  interlocutory, accelerated, or direct appeal, is governed, as
  applicable, by the Texas Rules of Appellate Procedure, including
  Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
  38.6(a) and (b), 40.1(b), and 49.4.
         SECTION 38.  A school district that is entitled under
  Section 42.158, Education Code, to receive funding in the 2017-2018
  school year for the second year of student attendance at a new
  instructional facility is entitled for that year to the amount
  provided for the second year of student attendance as a result of
  the changes in law made by this Act.
         SECTION 39.  Not later than March 1, 2019, the Texas
  Education Agency shall conduct a review of technology applications
  and career and technology courses for grades 9 through 12 and
  provide recommendations to the State Board of Education for
  eliminating duplicative courses while ensuring certifications are
  aligned with the rigor of each individual course.
         SECTION 40.  Subchapter J, Chapter 29, and Section
  42.253(b-1), Education Code, as added by this Act, and Section
  411.0901(a-1), Government Code, as added by this Act, apply
  beginning with the 2018-2019 school year.
         SECTION 41.  The commissioner of education is required to
  implement this Act only if the legislature appropriates money
  specifically for that purpose. If the legislature does not
  appropriate money specifically for that purpose, the commissioner
  of education may, but is not required to, implement this Act using
  other appropriations available for the purpose.
         SECTION 42.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2017.
 
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