Bill Text: TX HB21 | 2017 | 85th Legislature 1st Special Session | Enrolled


Bill Title: Relating to public school finance, including funding for the recruitment and retention of teachers and the support of participants in the public school employees group insurance program.

Spectrum: Slight Partisan Bill (Republican 35-12)

Status: (Passed) 2017-08-16 - See remarks for effective date [HB21 Detail]

Download: Texas-2017-HB21-Enrolled.html
 
 
  H.B. No. 21
 
 
 
 
AN ACT
  relating to public school finance, including funding for the
  recruitment and retention of teachers and the support of
  participants in the public school employees group insurance
  program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Effective September 1, 2018, Section 12.106,
  Education Code, is amended by amending Subsection (a-1) and adding
  Subsections (d), (e), (f), and (g) 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.
         (d)  Subject to Subsection (e), in addition to other amounts
  provided by this section, a charter holder is entitled to receive,
  for the open-enrollment charter school, 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; or
               (2)  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) only if the most recent overall performance rating
  assigned to the open-enrollment charter school under Subchapter C,
  Chapter 39, reflects at least acceptable performance.  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.
         (f)  Funds received by a charter holder under Subsection (d)
  may only be used:
               (1)  to lease an instructional facility;
               (2)  to pay property taxes imposed on an instructional
  facility;
               (3)  to pay debt service on bonds issued to finance an
  instructional facility; or
               (4)  for any other purpose related to the purchase,
  lease, sale, acquisition, or maintenance of an instructional
  facility.
         (g)  In this section, "instructional facility" has the
  meaning assigned by Section 46.001.
         SECTION 2.  Section 13.054(g), Education Code, as amended by
  Chapter 425 (S.B. 1353), Acts of the 85th Legislature, Regular
  Session, 2017, is amended to read as follows:
         (g)  In order to assist with the costs of facility
  renovation, repair, and replacement, a district to which territory
  is annexed under this section is entitled to additional state aid
  for five years, beginning with the school year in which the
  annexation occurs. The commissioner shall determine the amount of
  additional state aid provided each year by dividing the amount of
  debt service taxes received by the district during the tax year
  preceding the tax year in which the annexation occurs by the number
  of students enrolled in the district immediately preceding the date
  of annexation, and multiplying that result by the number of
  additional students enrolled in the district on September 1 after
  the date of annexation. The commissioner shall provide additional
  state aid under this subsection from funds appropriated for
  purposes of the Foundation School Program [and available for that
  purpose]. A determination by the commissioner under this
  subsection is final and may not be appealed.
         SECTION 3.  Subchapter A, Chapter 29, Education Code, is
  amended by adding Sections 29.026 and 29.027 to read as follows:
         Sec. 29.026.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
  WITH AUTISM. (a) 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:
               (1)  the program operates as an independent campus or a
  separate program from the campus in which the program is located,
  with a separate budget;
               (2)  the program 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;
               (3)  the program gives priority for enrollment to
  students with autism;
               (4)  the program limits enrollment and services to
  students who are:
                     (A)  at least three years of age; and
                     (B)  younger than nine years of age or are
  enrolled in the third grade or a lower grade level; and
               (5)  the program allows a student who turns nine years
  of age or older during a school year to remain in the program until
  the end of that school year.
         (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 adopt rules creating an
  application and selection process for grants awarded under this
  section.
         (g)  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.
         (h)  The commissioner shall award grants to fund not more
  than 10 programs that meet the eligibility criteria under
  Subsection (c). In selecting programs, 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.
         (i)  The commissioner shall select programs and award grant
  funds to those programs beginning in the 2018-2019 school year. The
  selected programs are to be funded for two years.
         (j)  A grant awarded to a school district or open-enrollment
  charter school under this section is in addition to the Foundation
  School Program funds 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 funds.
         (k)  The commissioner shall set aside an amount not to exceed
  $20 million from the total amount of funds appropriated for the
  2018-2019 fiscal biennium to fund grants under this section. The
  commissioner shall use $10 million for the purposes of this section
  for each school year in the state fiscal biennium. A grant
  recipient may not receive more than $1 million for the 2018-2019
  fiscal biennium. The commissioner shall reduce each district's and
  charter school's allotment proportionally to account for funds
  allocated under this section.
         (l)  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.
         (m)  The commissioner may consider a student with autism who
  is enrolled in a program funded under this section as funded in a
  mainstream placement, regardless of the amount of time the student
  receives services in a regular classroom setting.
         (n)  Not later than December 31, 2020, the commissioner shall
  publish a report on the grant program established under this
  section. The report must include:
               (1)  recommendations for statutory or funding changes
  necessary to implement successful innovations in the education of
  students with autism; and
               (2)  data on the academic and functional achievements
  of students enrolled in a program that received a grant under this
  section.
         (o)  This section expires September 1, 2021.
         Sec. 29.027.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
  WITH DYSLEXIA. (a) The commissioner shall establish a program to
  award grants to school districts and open-enrollment charter
  schools that provide innovative services to students with dyslexia.
         (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:
               (1)  the program operates as an independent campus or a
  separate program from the campus in which the program is located,
  with a separate budget;
               (2)  the program 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;
               (3)  the program gives priority for enrollment to
  students with dyslexia;
               (4)  the program limits enrollment and services to
  students who are:
                     (A)  at least three years of age; and
                     (B)  younger than nine years of age or are
  enrolled in the third grade or a lower grade level; and
               (5)  the program allows a student who turns nine years
  of age or older during a school year to remain in the program until
  the end of that school year.
         (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 adopt rules creating an
  application and selection process for grants awarded under this
  section.
         (g)  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.
         (h)  The commissioner shall award grants to fund not more
  than 10 programs that meet the eligibility criteria under
  Subsection (c). In selecting programs, 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.
         (i)  The commissioner shall select programs and award grant
  funds to those programs beginning in the 2018-2019 school year. The
  selected programs are to be funded for two years.
         (j)  A grant awarded to a school district or open-enrollment
  charter school under this section is in addition to the Foundation
  School Program funds 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 funds.
         (k)  The commissioner shall set aside an amount not to exceed
  $20 million from the total amount of funds appropriated for the
  2018-2019 fiscal biennium to fund grants under this section. The
  commissioner shall use $10 million for the purposes of this section
  for each school year in the state fiscal biennium. A grant
  recipient may not receive more than $1 million for the 2018-2019
  fiscal biennium. The commissioner shall reduce each district's and
  charter school's allotment proportionally to account for funds
  allocated under this section.
         (l)  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.
         (m)  The commissioner may consider a student with dyslexia
  who is enrolled in a program funded under this section as funded in
  a mainstream placement, regardless of the amount of time the
  student receives services in a regular classroom setting.
         (n)  Not later than December 31, 2020, the commissioner shall
  publish a report on the grant program established under this
  section. The report must include:
               (1)  recommendations for statutory or funding changes
  necessary to implement successful innovations in the education of
  students with dyslexia; and
               (2)  data on the academic and functional achievements
  of students enrolled in a program that received a grant under this
  section.
         (o)  This section expires September 1, 2021.
         SECTION 4.  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 5.  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 6.  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)  in determining the values of "PL" and "CL" for a
  school district, exclude the amount of revenue received by the
  district as a result of Section 13.054 or an administrative rule
  related to that section;
               (2)  if the value of (PL-CL) for a school district
  results in a negative number, use zero for the value of (PL-CL);
               (3)  if a school district's maintenance and operations
  tax rate ("TR") is greater than $1, use $1 for the value of "TR";
               (4)  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
               (5)  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.
         (e)  If the commissioner reapplies the formula in accordance
  with Subsection (d), a school district that was ineligible under
  Section 42.455 for a grant during the initial application of the
  formula for that school year is eligible to receive a grant as a
  result of the formula reapplication.
         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. Except
  as provided by Section 42.452(e), 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 weighted average daily
  attendance, excluding bond debt service payments, capital outlays,
  and facilities acquisition and construction costs, exceeded an
  amount that is equal to 120 percent of the state average amount for
  that school year of expenditures per student in weighted 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 $100 million
  for the 2017-2018 school year or $50 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 7.  Chapter 42, Education Code, is amended by adding
  Subchapter L to read as follows:
  SUBCHAPTER L. TEXAS COMMISSION ON PUBLIC SCHOOL FINANCE
         Sec. 42.601.  DEFINITION. In this subchapter, "commission"
  means the Texas Commission on Public School Finance.
         Sec. 42.602.  TEXAS COMMISSION ON PUBLIC SCHOOL FINANCE.
  (a) The Texas Commission on Public School Finance is established
  to develop and make recommendations for improvements to the current
  public school finance system or for new methods of financing public
  schools.
         (b)  The commission is composed of 13 members, consisting of
  the following:
               (1)  four members appointed by the governor;
               (2)  four members appointed by the lieutenant governor;
               (3)  four members appointed by the speaker of the house
  of representatives; and
               (4)  a member of the State Board of Education, as
  designated by the chair of that board.
         (c)  The members appointed by the governor must have an
  interest in public education and include at least:
               (1)  one person who is a current or retired classroom
  teacher with at least 10 years of teaching experience;
               (2)  one person who is a member of the business
  community; and
               (3)  one person who is a member of the civic community.
         (d)  The appointments made by the lieutenant governor and the
  speaker of the house of representatives must each consist of:
               (1)  three members of the applicable legislative
  chamber; and
               (2)  an administrator in the public school system or an
  elected member of the board of trustees of a school district.
         (e)  In making appointments under Subsections (b)(1), (2),
  and (3), the governor, lieutenant governor, and speaker of the
  house of representatives shall coordinate to ensure that the
  membership of the commission reflects, to the extent possible, the
  ethnic and geographic diversity of this state.
         Sec. 42.603.  PRESIDING OFFICER. The governor shall
  designate the presiding officer of the commission.
         Sec. 42.604.  COMPENSATION AND REIMBURSEMENT. A member of
  the commission is not entitled to compensation for service on the
  commission but is entitled to reimbursement for actual and
  necessary expenses incurred in performing commission duties.
         Sec. 42.605.  ADMINISTRATIVE SUPPORT AND FUNDING.
  (a)  Staff members of the agency shall provide administrative
  support for the commission.
         (b)  Funding for the administrative and operational expenses
  of the commission shall be provided by appropriation to the agency
  for that purpose.
         Sec. 42.606.  RECOMMENDATIONS. (a) The commission shall
  develop recommendations under this subchapter to address issues
  related to the public school finance system, including:
               (1)  the purpose of the public school finance system
  and the relationship between state and local funding in that
  system;
               (2)  the appropriate levels of local maintenance and
  operations and interest and sinking fund tax effort necessary to
  implement a public school finance system that complies with the
  requirements under the Texas Constitution; and
               (3)  policy changes to the public school finance system
  necessary to adjust for student demographics and the geographic
  diversity in the state.
         (b)  The commission may establish one or more working groups
  composed of not more than five members of the commission to study,
  discuss, and address specific policy issues and recommendations to
  refer to the commission for consideration.
         Sec. 42.607.  REPORT. Not later than December 31, 2018, the
  commission shall prepare and deliver a report to the governor and
  the legislature that recommends statutory changes to improve the
  public school finance system, including any adjustments to funding
  to account for student demographics.
         Sec. 42.608.  PUBLIC MEETINGS AND PUBLIC INFORMATION.
  (a)  The commission may hold public meetings as needed to fulfill
  its duties under this subchapter.
         (b)  The commission is subject to Chapters 551 and 552,
  Government Code.
         Sec. 42.609.  COMMISSION ABOLISHED; EXPIRATION OF
  SUBCHAPTER. (a) The commission is abolished January 8, 2019.
         (b)  This subchapter expires January 8, 2019.
         SECTION 8.  Effective September 1, 2018, Section 46.032(a),
  Education Code, is amended to read as follows:
         (a)  Each school district is guaranteed a specified amount
  per student in state and local funds for each cent of tax effort to
  pay the principal of and interest on eligible bonds. The amount of
  state support, subject only to the maximum amount under Section
  46.034, is determined by the formula:
  EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
  where:
         "EDA" is the amount of state funds to be allocated to the
  district for assistance with existing debt;
         "EDGL" is the dollar amount guaranteed level of state and
  local funds per student per cent of tax effort, which is the lesser
  of:
               (1)  $40 [$35] or a greater amount for any year provided
  by appropriation; or
               (2)  the amount that would result in a total additional
  amount of state funds under this subchapter for the current year
  equal to $60 million in excess of the state funds to which school
  districts would have been entitled under this section if the
  guaranteed level amount were $35;
         "ADA" is the number of students in average daily attendance,
  as determined under Section 42.005, in the district;
         "EDTR" is the existing debt tax rate of the district, which is
  determined by dividing the amount budgeted by the district for
  payment of eligible bonds 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
         "DPV" is the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 42.2521.
         SECTION 9.  (a) The amount of $311,000,000 of the
  unencumbered appropriations from the general revenue fund for the
  state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
  of the 85th Legislature, Regular Session, 2017 (the General
  Appropriations Act), to the Health and Human Services Commission is
  transferred to the Texas Education Agency to be used by the agency
  during that state fiscal biennium as follows:
               (1)  $150,000,000 is allocated to fund financial
  hardship grants under Subchapter H, Chapter 42, Education Code, as
  added by this Act;
               (2)  $60,000,000 is allocated to fund payments to
  open-enrollment charter schools under Section 12.106(d), Education
  Code, as added by this Act;
               (3)  $60,000,000 is allocated for the existing debt
  allotment under Section 46.032, Education Code, as amended by this
  Act; and
               (4)  $41,000,000 is allocated for the small-sized
  district adjustment under Section 42.103, Education Code, as
  amended by this Act.
         (b)  The Health and Human Services Commission shall identify
  the strategies and objectives out of which the transfer under
  Subsection (a) of this section is to be made.  If the commission
  makes the amount of appropriations transferred under Subsection (a)
  of this section available by delaying until the state fiscal
  biennium beginning September 1, 2019, the monthly capitation
  payments otherwise due in August 2019 to managed care organizations
  that contract with the commission to provide health care services
  to Medicaid recipients, the commission shall make the delayed
  payments as soon as possible out of available money appropriated to
  the commission for that state fiscal biennium.
         (c)  Notwithstanding the sum-certain appropriations
  specified in Rider 3, Chapter 605 (S.B. 1), Acts of the 85th
  Legislature, Regular Session, 2017 (the General Appropriations
  Act), to the bill pattern of the appropriations to the Texas
  Education Agency, the Legislative Budget Board shall determine the
  sum-certain appropriation to the Foundation School Program for each
  year of the state fiscal biennium beginning September 1, 2017,
  based on the amount specified in that rider, the other provisions of
  the General Appropriations Act, and other law, including the
  provisions of this Act.
         SECTION 10.  (a) The amount of $212,000,000 of the
  unencumbered appropriations from the general revenue fund for the
  state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
  of the 85th Legislature, Regular Session, 2017 (the General
  Appropriations Act), to the Health and Human Services Commission is
  transferred to the Teacher Retirement System of Texas and may be
  used by the retirement system during that state fiscal biennium to
  increase school districts' recruitment and retention of school
  teachers and provide support to participants in the Texas Public
  School Employees Group Insurance Program authorized by Chapter
  1575, Insurance Code. The Health and Human Services Commission
  shall identify the strategies and objectives out of which the
  transfer is to be made.
         (b)  The Teacher Retirement System of Texas may use the money
  transferred under Subsection (a) of this section to:
               (1)  decrease the premiums and deductibles that would
  otherwise be paid during the 2018 and 2019 plan years by
  participants in the Texas Public School Employees Group Insurance
  Program authorized by Chapter 1575, Insurance Code; and
               (2)  reduce costs for an enrolled adult child with a
  mental disability or a physical incapacity during the 2018 and 2019
  plan years.
         (c)  The Teacher Retirement System of Texas shall determine
  the most efficient allocation of the money transferred under
  Subsection (a) of this section to achieve the maximum benefit for
  participants in the program.
         SECTION 11.
    Section 5, Chapter 425 (S.B. 1353), Acts of the
  85th Legislature, Regular Session, 2017, is repealed.
         SECTION 12.  Effective September 1, 2023, Section 42.103(c),
  Education Code, is repealed.
         SECTION 13.  Not later than the 30th day after the effective
  date of the section of this Act adding Subchapter L, Chapter 42,
  Education Code, the appropriate persons shall make the appointments
  and designations required by Section 42.602, Education Code, as
  added by this Act.
         SECTION 14.  Except as otherwise provided by this Act:
               (1)  this Act takes effect September 1, 2017, 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;
  and
               (2)  if this Act does not receive the vote necessary for
  effect on that date, this Act takes effect on the 91st day after the
  last day of the legislative session.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 21 was passed by the House on August
  7, 2017, by the following vote:  Yeas 130, Nays 13, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 21 on August 15, 2017, by the following vote:  Yeas 94, Nays 46,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 21 was passed by the Senate, with
  amendments, on August 15, 2017, by the following vote:  Yeas 25,
  Nays 6.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor       
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