Bill Text: TX HB3 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to public school finance and public education; creating a criminal offense; authorizing the imposition of a fee.

Sponsorship: Bipartisan Bill

Status: (Passed) 2019-06-12 - See remarks for effective date [HB3 Detail]

Download: Texas-2019-HB3-Enrolled.html

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H.B. No. 3

AN ACT
relating to public school finance and public education; creating a
criminal offense; authorizing the imposition of a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
SECTION 1.001. Subchapter D, Chapter 11, Education Code, is
amended by adding Section 11.184 to read as follows:
Sec. 11.184. EFFICIENCY AUDIT. (a) For purposes of this
section, "efficiency audit" means an investigation of the
operations of a school district to examine fiscal management,
efficiency, and utilization of resources.
(b) Except as provided by Subsection (b-1), the board of
trustees of a school district shall conduct an efficiency audit
before seeking voter approval to adopt a tax rate for the
maintenance and operations of the district at an election held for
that purpose and may not hold the election without complying with
this section.
(b-1) The board of trustees of a school district all or part
of which is located in an area declared a disaster area by the
governor under Chapter 418, Government Code, may hold an election
to seek voter approval to adopt a maintenance and operations tax
rate during the two-year period following the date of the
declaration without conducting an efficiency audit otherwise
required under this section.
(c) A school district must pay for the costs associated with
an efficiency audit required under this section.
(d) The board of trustees of a school district must select
an auditor to conduct an efficiency audit under this section not
later than four months before the date on which the district
proposes to hold an election to adopt a maintenance and operations
tax rate.
(e) The board of trustees of a school district may select
for purposes of Subsection (d) the auditor that conducts the
district's annual audit under Section 44.008 and may include the
efficiency audit as part of the district's annual audit.
(f) The Legislative Budget Board shall establish guidelines
identifying the scope and areas of investigation of an efficiency
audit, including identification of resources being used
effectively and efficiently and identification of cost savings or
reallocations. The Legislative Budget Board may consult with the
agency to identify areas in which school districts in this state
have a demonstrated history of effectively utilizing resources to
improve student achievement and achieve cost savings. The auditor
selected by the board of trustees of a school district must follow
the guidelines established by the Legislative Budget Board under
this subsection.
(g) An auditor selected by the board of trustees of a school
district must maintain independence from the district and complete
the efficiency audit not later than three months after the date the
auditor was selected.
(h) Before an election at which a school district seeks
voter approval to adopt a tax rate the board of trustees of the
school district must hold an open meeting to discuss the results of
the efficiency audit conducted under this section. Not later than
30 days before the date of the election, the results of an
efficiency audit conducted under this section must be posted on the
school district's Internet website.
(i) A school district shall provide all documents, records,
and personnel requested by the auditor as needed to conduct the
audit in an efficient manner.
SECTION 1.002. Section 12.106, Education Code, is amended
by amending Subsections (a), (a-1), and (a-2) and adding
Subsections (a-3) and (a-4) to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 48 [42] equal
to the amount of funding per student in weighted average daily
attendance, excluding the adjustment under Section 48.052, the
funding under Sections 48.101, 48.110, 48.111, and 48.112, and
enrichment funding under Section 48.202(a) [42.302(a)], to which
the charter holder would be entitled for the school under Chapter 48
[42] if the school were a school district without a tier one local
share for purposes of Section 48.266 [42.253].
(a-1) In determining funding for an open-enrollment charter
school under Subsection (a), the amount of the allotment under
Section 48.102 is based solely on the basic allotment to which the
charter holder is entitled and does not include any amount based on
the allotment under Section 48.101[:
[(1) adjustments under Sections 42.102, 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].
(a-2) In addition to the funding provided by Subsection (a),
a charter holder is entitled to receive for the open-enrollment
charter school an allotment per student in average daily attendance
in an amount equal to the difference between:
(1) the product of:
(A) the quotient of:
(i) the total amount of funding provided to
eligible school districts under Section 48.101(b) or (c); and
(ii) the total number of students in
average daily attendance in school districts that receive an
allotment under Section 48.101(b) or (c); and
(B) the sum of one and the quotient of:
(i) the total number of students in average
daily attendance in school districts that receive an allotment
under Section 48.101(b) or (c); and
(ii) the total number of students in
average daily attendance in school districts statewide; and
(2) $125.
(a-3) In addition to the funding provided by Subsections
[Subsection] (a) and (a-2), a charter holder is entitled to receive
for the open-enrollment charter school enrichment funding under
Section 48.202 [42.302] based on the state average tax effort.
(a-4) In addition to the funding provided by Subsections
(a), (a-2), and (a-3), a charter holder is entitled to receive
funding for the open-enrollment charter school under Sections
48.110 and 48.112 and Subchapter D, Chapter 48, if the charter
holder would be entitled to the funding if the school were a school
district.
SECTION 1.003. Section 13.054(f), Education Code, is
amended to read as follows:
(f) For five years beginning with the school year in which
the annexation occurs, a school district shall receive additional
funding under this subsection or Subsection (h). The amount of
funding shall be determined by multiplying the lesser of the
enlarged district's local fund assignment computed under Section
48.256 [42.252] or the enlarged district's total cost of tier one by
a fraction, the numerator of which is the number of students
residing in the territory annexed to the receiving district
preceding the date of the annexation and the denominator of which is
the number of students residing in the district as enlarged on the
date of the annexation, and dividing the resulting product by the
state compression percentage, as determined under Section 48.255.
SECTION 1.004. (a) Effective September 1, 2019, Section
25.084(b), Education Code, is amended to read as follows:
(b) The operation of schools year-round by a district does
not affect the amount of state funds to which the district is
entitled under Chapter 48 [42].
(b) Effective September 1, 2020, Section 25.084, Education
Code, is amended by amending Subsection (b) and adding Subsection
(c) to read as follows:
(b) Except as provided by Subsection (c), the [The]
operation of schools year-round by a district does not affect the
amount of state funds to which the district is entitled under
Chapter 48 [42].
(c) A district that adopts a year-round system under this
section may receive the incentive aid under Section 48.0051 if the
district meets the criteria for receiving the incentive under that
section.
SECTION 1.005. Section 30.003, Education Code, is amended
by amending Subsection (f-1) and adding Subsection (f-2) to read as
follows:
(f-1) The commissioner shall determine the total amount
that the Texas School for the Blind and Visually Impaired and the
Texas School for the Deaf would have received from school districts
in accordance with this section if the following provisions had not
reduced the districts' share of the cost of providing education
services:
(1) H.B. No. 1, Acts of the 79th Legislature, 3rd
Called Session, 2006;
(2) Section 45.0032; and
(3) Section 48.255.
(f-2) The amount determined under Subsection (f-1), [had
not reduced the districts' share of the cost of providing education
services. That amount,] minus any amount the schools do receive
from school districts, shall be set aside as a separate account in
the foundation school fund and appropriated to those schools for
educational purposes.
SECTION 1.006. Section 44.004, Education Code, is amended
by amending Subsections (c), (e), and (i) and adding Subsection
(c-2) to read as follows:
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper, and the
headline on the notice must be in 18-point or larger type. Subject
to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice.";
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
(A) maintenance and operations;
(B) debt service; and
(C) total expenditures;
(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4) contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
(5) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 48 [42], would provide
the same amount of maintenance and operations taxes and state funds
distributed under Chapter 48 [42] per student in average daily
attendance for the applicable school year that was available to the
district in the preceding school year; and
(b) in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
(ii) the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters [42,] 43, [and] 46, and 48
and dividing that amount by the number of students in average daily
attendance in the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds, were
approved by the voters of this district.";
(6) contain a section entitled "Comparison of Proposed
Levy with Last Year's Levy on Average Residence," which must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following information: "Increase
(Decrease) in Taxes" expressed in dollars and cents, which is
computed by subtracting the "Taxes Due on Average Residence" for
the preceding tax year from the "Taxes Due on Average Residence" for
the current tax year;
(7) contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of age
or older when the person died, may not be increased above the amount
paid in the first year after the person turned 65, regardless of
changes in tax rate or property value.";
(8) contain the following statement in bold print:
"Notice of Voter-Approval [Rollback] Rate: The highest tax rate the
district can adopt before requiring voter approval at an election
is (the school district voter-approval [rollback] rate determined
under Section 26.08, Tax Code). This election will be automatically
held if the district adopts a rate in excess of the voter-approval
[rollback] rate of (the school district voter-approval [rollback]
rate)."; and
(9) contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 48
[42] in the succeeding school year.
(c-2) The notice described by Subsection (c) must include a
statement that a school district may not increase the district's
maintenance and operations tax rate to create a surplus in
maintenance and operations tax revenue for the purpose of paying
the district's debt service.
(e) A person who owns taxable property in a school district
is entitled to an injunction restraining the collection of taxes by
the district if the district has not complied with the requirements
of Subsections (b), (c), (c-1), (c-2), and (d), and, if applicable,
Subsection (i), and the failure to comply was not in good faith. An
action to enjoin the collection of taxes must be filed before the
date the [school] district delivers substantially all of its tax
bills.
(i) A school district that uses a certified estimate, as
authorized by Subsection (h), may adopt a budget at the public
meeting designated in the notice prepared using the estimate, but
the district may not adopt a tax rate before the district receives
the certified appraisal roll for the district required by Section
26.01(a), Tax Code. After receipt of the certified appraisal roll,
the district must publish a revised notice and hold another public
meeting before the district may adopt a tax rate that exceeds:
(1) the rate proposed in the notice prepared using the
estimate; or
(2) the district's voter-approval [rollback] rate
determined under Section 26.08, Tax Code, using the certified
appraisal roll.
SECTION 1.007. Subchapter A, Chapter 45, Education Code, is
amended by adding Section 45.0021 to read as follows:
Sec. 45.0021. RESTRICTION ON MAINTENANCE TAX LEVY. (a) A
school district may not increase the rate of the district's
maintenance taxes described by Section 45.002 to create a surplus
in maintenance tax revenue for the purpose of paying the district's
debt service.
(b) A person who owns taxable property in a school district
is entitled to an injunction restraining the collection of taxes by
the district if the district adopts a maintenance tax rate in
violation of Subsection (a). An action to enjoin the collection of
taxes must be filed before the date the district delivers
substantially all of the district's tax bills.
SECTION 1.008. Section 45.003, Education Code, is amended
by adding Subsections (b-1) and (d-1) and amending Subsections (d)
and (f) to read as follows:
(b-1) The ballot proposition under Subsection (b) must
include the following statement: "THIS IS A PROPERTY TAX INCREASE."
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate stated in the
proposition. For any year, the maintenance tax rate per $100 of
taxable value adopted by the district may not exceed the rate equal
to the sum of $0.17 and the product of the state compression
percentage, as determined under Section 48.255 [42.2516],
multiplied by $1.00 [$1.50].
(d-1) Except as otherwise provided by this subsection or
Section 26.08(a-1), Tax Code, if the voter-approval tax rate of a
school district under Section 26.08(n), Tax Code, excluding the
district's current debt rate under Section 26.08(n)(1)(C), Tax
Code, for the 2019 tax year is equal to or exceeds $0.97 per $100 of
taxable value, the district may not adopt a maintenance and
operations tax rate for the 2019 tax year that exceeds the
district's voter-approval rate, excluding the district's current
debt rate under Section 26.08(n)(1)(C), Tax Code. A school
district that, before January 1, 2019, adopted a strategic plan
through action taken by the board of trustees in a public meeting
that proposed a maintenance and operations tax rate for the 2019 tax
year that exceeds the rate permitted under this subsection may,
subject to voter approval, adopt the rate proposed in the plan minus
the amount by which the district is required to reduce the
district's enrichment tax rate under Section 48.202(f). This
subsection expires September 1, 2020.
(f) Notwithstanding any other law, a district that levied a
maintenance tax for the 2005 tax year at a rate greater than $1.50
per $100 of taxable value in the district as permitted by special
law may not levy a maintenance tax at a rate that exceeds the rate
per $100 of taxable value that is equal to the sum of:
(1) $0.17; and
(2) the product of 66.67 percent [the state
compression percentage, as determined under Section 42.2516,]
multiplied by the rate of the maintenance tax levied by the district
for the 2005 tax year, minus the amount by which $1.00 exceeds the
product of the state compression percentage, as determined under
Section 48.255, multiplied by $1.00.
SECTION 1.009. Subchapter A, Chapter 45, Education Code, is
amended by adding Section 45.0032 to read as follows:
Sec. 45.0032. COMPONENTS OF MAINTENANCE AND OPERATIONS TAX.
(a) A school district's tier one maintenance and operations tax
rate is the number of cents levied by the district for maintenance
and operations that does not exceed the product of the state
compression percentage, as determined under Section 48.255,
multiplied by $1.00.
(a-1) This subsection applies to a school district with a
tier one maintenance and operations tax rate for the 2018-2019
school year that was less than $1.00 per $100 of taxable value. For
purposes of determining a school district's tier one maintenance
and operations tax rate under Subsection (a) for the 2019-2020
school year, the state compression percentage, as determined under
Section 48.255, is applied to the number of cents levied by the
district for the 2018-2019 school year for maintenance and
operations that does not exceed $1.00. This subsection expires
September 1, 2020.
(b) A district's enrichment tax rate consists of:
(1) any cents of additional maintenance and operations
tax effort, not to exceed eight cents over the maximum tax rate
described by Subsection (a); and
(2) any cents of additional maintenance and operations
tax effort that exceeds the sum of the maximum tax rate described by
Subsection (a) and the maximum number of cents permitted under
Subdivision (1).
(c) For a district to which Section 45.003(f) applies, any
cents of maintenance and operations tax effort that exceeds the
maximum rate permitted under Section 45.003(d) are not included in
the district's tier one maintenance and operations tax rate under
Subsection (a) or the district's enrichment tax rate under
Subsection (b), and the district is not entitled to the guaranteed
yield amount of state funds under Section 48.202 for those cents of
tax effort.
(d) For a district to which Section 26.08(a-1), Tax Code,
applies, the amount by which the district's maintenance tax rate
exceeds the district's voter-approval tax rate, excluding the
district's current debt rate under Section 26.08(n)(1)(C), Tax
Code, for the preceding year is not considered in determining a
district's tier one maintenance and operations tax rate under
Subsection (a) or the district's enrichment tax rate under
Subsection (b) for the current tax year.
(e) For the 2019 tax year, Section 48.202(f) applies to a
district's maintenance and operations tax rate after adjusting the
district's rate in accordance with this section. This subsection
expires September 1, 2020.
SECTION 1.010. Subtitle I, Title 2, Education Code, is
amended by adding Chapter 47 to read as follows:
CHAPTER 47. TAX REDUCTION AND EXCELLENCE IN EDUCATION FUND
Sec. 47.001. DEFINITION. In this chapter, "fund" means the
tax reduction and excellence in education fund.
Sec. 47.002. FUND ESTABLISHED. (a) The tax reduction and
excellence in education fund is a special fund in the state treasury
outside the general revenue fund.
(b) The fund consists of:
(1) money appropriated by the legislature for deposit
to the credit of the fund;
(2) gifts to the state for the purposes of the fund;
and
(3) money directed by law for deposit to the credit of
the fund.
Sec. 47.003. USES OF FUND. Except as otherwise provided by
this chapter, money in the fund may be appropriated only:
(1) to pay the cost of tier one allotments under
Chapter 48; or
(2) for the purpose of reducing school district
maintenance and operations ad valorem tax rates.
Sec. 47.004. DEPOSIT OF CERTAIN MONEY DEDICATED FOR SCHOOL
DISTRICT AD VALOREM TAX RATE REDUCTION. (a) The comptroller shall
deposit to the credit of the fund money that Section 49-g, Article
III, Texas Constitution, dedicates to the purpose of reducing
school district maintenance and operations ad valorem tax rates.
(b) Money deposited to the fund under this section may be
appropriated from the fund only for the purpose described by
Section 47.003(2).
Sec. 47.005. CERTAIN MONEY DISTRIBUTED TO AVAILABLE SCHOOL
FUND. (a) Of the money distributed to the available school fund
each year under Section 5(g), Article VII, Texas Constitution, the
amount that exceeds the first $300 million is considered part of the
tax reduction and excellence in education fund.
(b) Money considered part of the fund as described by
Subsection (a) may be appropriated only to pay the cost of tier one
allotments under Chapter 48.
Sec. 47.006. DEPOSIT OF MONEY BASED ON CERTAIN SALES AND USE
TAX COLLECTIONS. (a) The comptroller shall deposit to the credit
of the fund on or before the fifth business day after the end of each
month an amount of general revenue equal to the amount of state
sales and use tax revenue collected by marketplace providers on
sales of taxable items made through the marketplace under Section
151.0242, Tax Code, and remitted to this state during the preceding
month, less any amount of that revenue the comptroller estimates
would have been collected and remitted if Section 151.0242 were not
law.
(b) Money deposited to the fund under this section may be
appropriated from the fund only for the purpose described by
Section 47.003(2).
SECTION 1.011. Subtitle I, Title 2, Education Code, is
amended by adding Chapter 48, and a heading is added to that chapter
to read as follows:
CHAPTER 48. FOUNDATION SCHOOL PROGRAM
SECTION 1.012. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter A, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 1.013. Sections 42.001, 42.002, 42.003, 42.004, and
42.005, Education Code, are transferred to Subchapter A, Chapter
48, Education Code, as added by this Act, redesignated as Sections
48.001, 48.002, 48.003, 48.004, and 48.005, Education Code, and
amended to read as follows:
Sec. 48.001 [42.001]. STATE POLICY. (a) It is the policy
of this state that the provision of public education is a state
responsibility and that a thorough and efficient system be provided
and substantially financed through state revenue sources so that
each student enrolled in the public school system shall have access
to programs and services that are appropriate to the student's
educational needs and that are substantially equal to those
available to any similar student, notwithstanding varying local
economic factors.
(b) The public school finance system of this state shall
adhere to a standard of neutrality that provides for substantially
equal access to similar revenue per student at similar tax effort,
considering all state and local tax revenues of districts after
acknowledging all legitimate student and district cost
differences.
Sec. 48.002 [42.002]. PURPOSES OF FOUNDATION SCHOOL
PROGRAM. (a) The purposes of the Foundation School Program set
forth in this chapter are to guarantee that each school district in
the state has:
(1) adequate resources to provide each eligible
student a basic instructional program and facilities suitable to
the student's educational needs; and
(2) access to a substantially equalized program of
financing in excess of basic costs for certain services, as
provided by this chapter.
(b) The Foundation School Program consists of:
(1) two tiers that in combination provide for:
(A) sufficient financing for all school
districts to provide a basic program of education that is rated
acceptable or higher under Section 39.054 and meets other
applicable legal standards; and
(B) substantially equal access to funds to
provide an enriched program; and
(2) a facilities component as provided by Chapter 46.
Sec. 48.003 [42.003]. STUDENT ELIGIBILITY. (a) A
student is entitled to the benefits of the Foundation School
Program if, on September 1 of the school year, the student:
(1) is 5 years of age or older and under 21 years of age
and has not graduated from high school, or is at least 21 years of
age and under 26 years of age and has been admitted by a school
district to complete the requirements for a high school diploma; or
(2) is at least 19 years of age and under 26 years of
age and is enrolled in an adult high school diploma and industry
certification charter school pilot program under Section 29.259.
(b) A student to whom Subsection (a) does not apply is
entitled to the benefits of the Foundation School Program if the
student is enrolled in a prekindergarten class under Section 29.153
[or Subchapter E-1, Chapter 29].
(c) A child may be enrolled in the first grade if the child
is at least six years of age at the beginning of the school year of
the district or has been enrolled in the first grade or has
completed kindergarten in the public schools in another state
before transferring to a public school in this state.
(d) Notwithstanding Subsection (a), a student younger than
five years of age is entitled to the benefits of the Foundation
School Program if:
(1) the student performs satisfactorily on the
assessment instrument administered under Section 39.023(a) to
students in the third grade; and
(2) the district has adopted a policy for admitting
students younger than five years of age.
Sec. 48.004 [42.004]. ADMINISTRATION OF THE PROGRAM. The
commissioner[, in accordance with the rules of the State Board of
Education,] shall adopt rules and take [such] action and require
[such] reports consistent with this chapter as [may be] necessary
to implement and administer the Foundation School Program.
Sec. 48.005 [42.005]. AVERAGE DAILY ATTENDANCE. (a) In
this chapter, average daily attendance is:
(1) the quotient of the sum of attendance for each day
of the minimum number of days of instruction as described under
Section 25.081(a) divided by the minimum number of days of
instruction;
(2) for a district that operates under a flexible year
program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1);
(3) for a district that operates under a flexible
school day program under Section 29.0822, the average daily
attendance as calculated by the commissioner in accordance with
Sections 29.0822(d) and (d-1); or
(4) for a district that operates a half-day program or
a full-day program under Section 29.153(c), one-half of the average
daily attendance calculated under Subdivision (1).
(b) A school district that experiences a decline of two
percent or more in average daily attendance shall be funded on the
basis of:
(1) the actual average daily attendance of the
preceding school year, if the decline is the result of the closing
or reduction in personnel of a military base; or
(2) subject to Subsection (e), an average daily
attendance not to exceed 98 percent of the actual average daily
attendance of the preceding school year, if the decline is not the
result of the closing or reduction in personnel of a military base.
(c) The commissioner shall adjust the average daily
attendance of a school district that has a significant percentage
of students who are migratory children as defined by 20 U.S.C.
Section 6399.
(d) The commissioner may adjust the average daily
attendance of a school district in which a disaster, flood, extreme
weather condition, fuel curtailment, or other calamity has a
significant effect on the district's attendance.
(e) For each school year, the commissioner shall adjust the
average daily attendance of school districts that are entitled to
funding on the basis of an adjusted average daily attendance under
Subsection (b)(2) so that:
(1) all districts are funded on the basis of the same
percentage of the preceding year's actual average daily attendance;
and
(2) the total cost to the state does not exceed the
amount specifically appropriated for that year for purposes of
Subsection (b)(2).
(f) An open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b)(2).
(g) If a student may receive course credit toward the
student's high school academic requirements and toward the
student's higher education academic requirements for a single
course, including a course provided under Section 28.009 by a
public institution of higher education, the time during which the
student attends the course shall be counted as part of the minimum
number of instructional hours required for a student to be
considered a full-time student in average daily attendance for
purposes of this section.
(g-1) The commissioner shall adopt rules to calculate
average daily attendance for students participating in a blended
learning program in which classroom instruction is supplemented
with applied workforce learning opportunities, including
participation of students in internships, externships, and
apprenticeships.
(h) Subject to rules adopted by the commissioner under
Section 48.007(b) [42.0052(b)], time that a student participates in
an off-campus instructional program approved under Section
48.007(a) [42.0052(a)] shall be counted as part of the minimum
number of instructional hours required for a student to be
considered a full-time student in average daily attendance for
purposes of this section.
(i) A district or a charter school operating under Chapter
12 that operates a prekindergarten program is eligible to receive
one-half of average daily attendance under Subsection (a) if the
district's or charter school's prekindergarten program provides at
least 32,400 minutes of instructional time to students.
(j) A district or charter school is eligible to earn full
average daily attendance under Subsection (a) if the district or
school provides at least 43,200 minutes of instructional time to
students enrolled in:
(1) a dropout recovery school or program operating
under Section 12.1141(c) or Section 39.0548;
(2) an alternative education program operating under
Section 37.008;
(3) a school program located at a day treatment
facility, residential treatment facility, psychiatric hospital, or
medical hospital;
(4) a school program offered at a correctional
facility; or
(5) a school operating under Section 29.259.
(k) A charter school operating under a charter granted under
Chapter 12 before January 1, 2015, is eligible to earn full average
daily attendance under Subsection (a), as that subsection existed
immediately before January 1, 2015, for:
(1) all campuses of the charter school operating
before January 1, 2015; and
(2) any campus or site expansion approved on or after
January 1, 2015, provided that the charter school received an
academic accountability performance rating of C or higher, and the
campus or site expansion is approved by the commissioner.
(l) A school district campus or charter school described by
Subsection (j) may operate more than one program and be eligible for
full average daily attendance for each program if the programs
operated by the district campus or charter school satisfy all
applicable state and federal requirements.
(m) The commissioner shall adopt rules necessary to
implement this section, including rules that:
(1) establish the minimum amount of instructional time
per day that allows a school district or charter school to be
eligible for full average daily attendance, which may differ based
on the instructional program offered by the district or charter
school;
(2) establish the requirements necessary for a school
district or charter school to be eligible for one-half of average
daily attendance, which may differ based on the instructional
program offered by the district or charter school; and
(3) proportionally reduce the average daily
attendance for a school district if any campus or instructional
program in the district provides fewer than the required minimum
minutes of instruction to students.
(n) To assist school districts in implementing this section
as amended by H.B. 2442, Acts of the 85th Legislature, Regular
Session, 2017, [or similar legislation,] the commissioner may waive
a requirement of this section or adopt rules to implement this
section. [This subsection expires at the end of the 2018-2019
school year.]
SECTION 1.014. Effective September 1, 2020, Subchapter A,
Chapter 48, Education Code, as added by this Act, is amended by
adding Section 48.0051 to read as follows:
Sec. 48.0051. INCENTIVE FOR ADDITIONAL INSTRUCTIONAL DAYS.
(a) Subject to Subsection (a-1), the commissioner shall adjust the
average daily attendance of a school district or open-enrollment
charter school under Section 48.005 in the manner provided by
Subsection (b) if the district or school:
(1) provides the minimum number of minutes of
operational and instructional time required under Section 25.081
and commissioner rules adopted under that section over at least 180
days of instruction; and
(2) offers an additional 30 days of half-day
instruction for students enrolled in prekindergarten through fifth
grade.
(a-1) A school district entitled to an incentive under this
section and funding for a campus under Section 48.252 may receive
only the incentive or funding for the campus, as applicable, that
would result in the greater amount of funding.
(b) For a school district or open-enrollment charter school
described by Subsection (a), the commissioner shall increase the
average daily attendance of the district or school under Section
48.005 by the amount that results from the quotient of the sum of
attendance by students described by Subsection (a)(2) for each of
the 30 additional instructional days of half-day instruction that
are provided divided by 180.
(c) The commissioner may provide the incentive under this
section to a school district or open-enrollment charter school that
intended, but due to circumstances beyond the district's or
school's control, including the occurrence of a natural disaster
affecting the district or school, was unable to meet the
requirement for instruction under Section 25.081 plus an additional
30 days of half-day instruction. The commissioner may
proportionately reduce the incentive provided to a district or
school described by this subsection.
(d) This section does not prohibit a school district from
providing the minimum number of minutes of operational and
instructional time required under Section 25.081 and commissioner
rules adopted under that section over fewer than 180 days of
instruction.
(e) The agency shall assist school districts and
open-enrollment charter schools in qualifying for the incentive
under this section.
(f) A school district or open-enrollment charter school may
use funding attributable to the incentive provided under this
section to pay costs associated with providing academic instruction
in a voluntary summer program for students enrolled in the district
or school.
(g) The commissioner shall adopt rules necessary for the
implementation of this section.
SECTION 1.015. Sections 42.0051 and 42.0052, Education
Code, are transferred to Subchapter A, Chapter 48, Education Code,
as added by this Act, redesignated as Sections 48.006 and 48.007,
Education Code, and amended to read as follows:
Sec. 48.006 [42.0051]. AVERAGE DAILY ATTENDANCE FOR
DISTRICTS IN DISASTER AREA. (a) The [From funds specifically
appropriated for the purpose or other funds available to the
commissioner for that purpose, the] commissioner may [shall] adjust
the average daily attendance of a school district all or part of
which is located in an area declared a disaster area by the governor
under Chapter 418, Government Code, if the district experiences a
decline in average daily attendance that is reasonably attributable
to the impact of the disaster.
(b) The adjustment must be sufficient to ensure that the
district receives funding comparable to the funding that the
district would have received if the decline in average daily
attendance reasonably attributable to the impact of the disaster
had not occurred.
(c) The commissioner may [shall] make the adjustment under
[required by] this section for the two-year period following the
date of the governor's initial proclamation or executive order
declaring the state of disaster.
(d) Section 48.005(b)(2) [42.005(b)(2)] does not apply to a
district that receives an adjustment under this section.
(e) A district that receives an adjustment under this
section may not receive any additional adjustment under Section
48.005(d) [42.005(d)] for the decline in average daily attendance
on which the adjustment under this section is based.
(f) For purposes of this title, a district's adjusted
average daily attendance under this section is considered to be the
district's average daily attendance as determined under Section
48.005 [42.005].
Sec. 48.007 [42.0052]. OFF-CAMPUS PROGRAMS APPROVED FOR
PURPOSES OF AVERAGE DAILY ATTENDANCE. (a) The commissioner may,
based on criteria developed by the commissioner, approve
instructional programs provided off campus by an entity other than
a school district or open-enrollment charter school as a program in
which participation by a student of a district or charter school may
be counted for purposes of determining average daily attendance in
accordance with Section 48.005(h) [42.005(h)].
(b) The commissioner shall adopt by rule verification and
reporting procedures concerning time spent by students
participating in instructional programs approved under Subsection
(a).
SECTION 1.016. Sections 42.006(a), (b), (c), and (d),
Education Code, are transferred to Subchapter A, Chapter 48,
Education Code, as added by this Act, redesignated as Section
48.008, Education Code, and amended to read as follows:
Sec. 48.008. PUBLIC EDUCATION INFORMATION MANAGEMENT
SYSTEM (PEIMS). (a) Each school district shall participate in the
Public Education Information Management System (PEIMS) and shall
provide through that system information required for the
administration of this chapter and of other appropriate provisions
of this code.
(b) Each school district shall use a uniform accounting
system adopted by the commissioner for the data required to be
reported for the Public Education Information Management System.
(c) Annually, the commissioner shall review the Public
Education Information Management System and shall repeal or amend
rules that require school districts to provide information through
the Public Education Information Management System that is not
necessary. In reviewing and revising the Public Education
Information Management System, the commissioner shall develop
rules to ensure that the system:
(1) provides useful, accurate, and timely information
on student demographics and academic performance, personnel, and
school district finances;
(2) contains only the data necessary for the
legislature and the agency to perform their legally authorized
functions in overseeing the public education system; and
(3) does not contain any information related to
instructional methods, except as provided by Section 29.066 or
required by federal law.
(d) The commissioner's rules must ensure that the Public
Education Information Management System links student performance
data to other related information for purposes of efficient and
effective allocation of scarce school resources, to the extent
practicable using existing agency resources and appropriations.
SECTION 1.017. Sections 42.006(a-1), (a-3), and (a-4),
Education Code, Section 42.006(a-2), Education Code, as added by
Chapter 550 (S.B. 490), Acts of the 85th Legislature, Regular
Session, 2017, and Section 42.006(a-2), as added by Chapter 916
(S.B. 1404), Acts of the 85th Legislature, Regular Session, 2017,
are transferred to Subchapter A, Chapter 48, Education Code, as
added by this Act, redesignated as Section 48.009, Education Code,
and amended to read as follows:
Sec. 48.009. REQUIRED PEIMS REPORTING. (a) In this
section, "full-time equivalent school counselor" means 40 hours of
counseling services a week.
(b) [(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:
(1) the number of students enrolled in the district or
school who are identified as having dyslexia;
(2) [. The agency shall maintain the information
provided in accordance with this subsection.
[(a-2) 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 availability of school counselors, including [at
each campus. The commissioner's rules shall require a district or
school to report] the number of full-time equivalent school
counselors, [providing counseling services] at each [a] campus;
(3) [. For purposes of this subsection, "full-time
equivalent school counselor" means 40 hours of counseling services
a week. The agency shall maintain the information provided in
accordance with this subsection.
[(a-2) The commissioner by rule shall require each school
district and open-enrollment charter school to report through the
Public Education Information Management System information for
each campus of the district or school regarding:
[(1)] the availability of expanded learning
opportunities as described by Section 33.252 at each campus; [and]
(4) [(2) the number of students participating in each
of the categories of expanded learning opportunities listed under
Section 33.252(b).
[(a-3) The commissioner by rule shall require each school
district and open-enrollment charter school to annually report
through the Public Education Information Management System
information regarding] the total number of students, other than
students described by Subdivision (5) [Subsection (a-4)], enrolled
in the district or school with whom the district or school, as
applicable, used intervention strategies, as that term is defined
by Section 26.004, at any time during the year for which the report
is made; and
(5) [. The agency shall maintain the information
provided in accordance with this subsection.
[(a-4) The commissioner by rule shall require each school
district and open-enrollment charter school to annually report
through the Public Education Information Management System
information regarding] the total number of students enrolled in the
district or school to whom the district or school provided aids,
accommodations, or services under Section 504, Rehabilitation Act
of 1973 (29 U.S.C. Section 794), at any time during the year for
which the report is made.
(c) The agency shall maintain the information provided in
accordance with this section [subsection].
(d) Not later than January 1, 2020, the commissioner shall
adopt rules requiring the Public Education Information Management
System (PEIMS) to include pregnancy as a reason a student withdraws
from or otherwise no longer attends public school.
SECTION 1.018. Section 42.009, Education Code, is
transferred to Subchapter A, Chapter 48, Education Code, as added
by this Act, redesignated as Section 48.010, Education Code, and
amended to read as follows:
Sec. 48.010 [42.009]. DETERMINATION OF FUNDING LEVELS.
(a) Not later than July 1 of each year, the commissioner shall
determine for each school district whether the estimated amount of
state and local funding per student in weighted average daily
attendance to be provided to the district under the Foundation
School Program for maintenance and operations for the following
school year is less than the amount provided to the district for the
2010-2011 school year. If the amount estimated to be provided is
less, the commissioner shall certify the percentage decrease in
funding to be provided to the district.
(b) In making the determinations regarding funding levels
required by Subsection (a), the commissioner shall:
(1) make adjustments as necessary to reflect changes
in a school district's maintenance and operations tax rate;
(2) for a district required to [take action under
Chapter 41 to] reduce its local revenue level under Section 48.257
[wealth per student to the equalized wealth level], base the
determinations on the district's net funding levels after deducting
any amounts required to be expended by the district to comply with
Chapter 49 [41]; and
(3) determine a district's weighted average daily
attendance in accordance with this chapter as it existed on January
1, 2011.
SECTION 1.019. Subchapter A, Chapter 48, Education Code, as
added by this Act, is amended by adding Sections 48.011 and 48.012
to read as follows:
Sec. 48.011. COMMISSIONER AUTHORITY TO RESOLVE UNINTENDED
CONSEQUENCES FROM SCHOOL FINANCE FORMULAS. (a) Subject to
Subsections (b) and (d), the commissioner may adjust a school
district's funding entitlement under this chapter if the funding
formulas used to determine the district's entitlement result in an
unanticipated loss or gain for a district.
(a-1) The commissioner may modify dates relating to the
adoption of a school district's maintenance and operations tax rate
and, if applicable, an election required for the district to adopt
that rate as necessary to implement the changes made by H.B. 3, 86th
Legislature, Regular Session, 2019.
(b) Before making an adjustment under Subsection (a) or
(a-1), the commissioner shall notify and must receive approval from
the Legislative Budget Board and the office of the governor.
(c) If the commissioner makes an adjustment under
Subsection (a), the commissioner must provide to the legislature an
explanation regarding the changes necessary to resolve the
unintended consequences.
(d) Beginning with the 2021-2022 school year, the
commissioner may not make an adjustment under Subsection (a) or
(a-1).
(e) This section expires September 1, 2023.
Sec. 48.012. STUDY ON GEOGRAPHIC EDUCATION COST VARIATIONS
AND TRANSPORTATION COSTS. (a) The agency shall enter into a
memorandum of understanding with a public institution of higher
education to conduct a study on:
(1) geographic variations in known resource costs and
costs of education due to factors beyond the control of school
districts; and
(2) school district transportation costs.
(b) The study must include a review of cost drivers for
school districts.
(c) Not later than December 1, 2020, the agency shall submit
to the legislature a report on the results of the study.
(d) This section expires September 1, 2021.
SECTION 1.020. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter B, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER B. BASIC ENTITLEMENT
SECTION 1.021. Sections 42.101 and 42.105, Education Code,
are transferred to Subchapter B, Chapter 48, Education Code, as
added by this Act, redesignated as Sections 48.051 and 48.052,
Education Code, and amended to read as follows:
Sec. 48.051 [42.101]. BASIC ALLOTMENT. (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 or career and
technology education programs, for which an additional allotment is
made under Subchapter C, a district is entitled to an allotment
equal to the lesser of $6,160 [$4,765] or the amount that results
from the following formula:
A = $6,160 [$4,765] X TR/MCR [(DCR/MCR)]
where:
"A" is the allotment to which a district is entitled;
"TR" ["DCR"] is the district's tier one maintenance and
operations [compressed] tax rate, as provided by Section 45.0032[,
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 48.255 [42.2516], multiplied by $1.00 [$1.50].
[(a-1) Notwithstanding Subsection (a), for a school
district that adopted a maintenance and operations tax rate for the
2005 tax year below the maximum rate permitted by law for that year,
the district's compressed tax rate ("DCR") includes the portion of
the district's current maintenance and operations tax rate in
excess of the first six cents above the district's compressed tax
rate, as defined by Subsection (a), until the district's compressed
tax rate computed in accordance with this subsection is equal to the
state maximum compressed tax rate ("MCR").]
(b) A greater amount for any school year may be provided by
appropriation.
(c) During any school year for which the maximum amount of
the basic allotment provided under Subsection (a) or (b) is greater
than the maximum amount provided for the preceding school year, a
school district must use at least 30 percent of the amount, if the
amount is greater than zero, that equals the product of the average
daily attendance of the district multiplied by the amount of the
difference between the district's funding under this chapter per
student in average daily attendance for the current school year and
the preceding school year to provide compensation increases to
full-time district employees other than administrators as follows:
(1) 75 percent must be used to increase the
compensation paid to classroom teachers, full-time librarians,
full-time school counselors certified under Subchapter B, Chapter
21, and full-time school nurses, prioritizing differentiated
compensation for classroom teachers with more than five years of
experience; and
(2) 25 percent may be used as determined by the
district to increase compensation paid to full-time district
employees [This subsection applies to a school district for which
the compressed tax rate ("DCR") is determined in accordance with
Subsection (a-1). Any reduction in the district's adopted
maintenance and operations tax rate is applied to the following
components of the district's tax rate in the order specified:
[(1) tax effort described by Section 42.302(a-1)(2);
[(2) tax effort described by Section 42.302(a-1)(1);
and
[(3) tax effort included in the determination of the
district's compressed tax rate ("DCR") under Subsection (a-1)].
(d) In this section, "compensation" includes benefits such
as insurance premiums.
Sec. 48.052 [42.105]. SPARSITY ADJUSTMENT. (a)
Notwithstanding Section 48.051 [Sections 42.101, 42.102, and
42.103], a school district that has fewer than 130 students in
average daily attendance shall be provided a [an adjusted] basic
allotment on the basis of 130 students in average daily attendance
if it offers a kindergarten through grade 12 program and has
preceding or current year's average daily attendance of at least 90
students or is 30 miles or more by bus route from the nearest high
school district. A district offering a kindergarten through grade 8
program whose preceding or current year's average daily attendance
was at least 50 students or which is 30 miles or more by bus route
from the nearest high school district shall be provided a [an
adjusted] basic allotment on the basis of 75 students in average
daily attendance. An average daily attendance of 60 students shall
be the basis of providing the [adjusted] basic allotment if a
district offers a kindergarten through grade 6 program and has
preceding or current year's average daily attendance of at least 40
students or is 30 miles or more by bus route from the nearest high
school district.
(b) Subsection (c) applies only to a school district that:
(1) does not offer each grade level from kindergarten
through grade 12 and whose prospective or former students generally
attend school in a state that borders this state for the grade
levels the district does not offer;
(2) serves both students residing in this state and
students residing in a state that borders this state who are
subsequently eligible for in-state tuition rates at institutions of
higher education in either state regardless of the state in which
the students reside; and
(3) shares students with an out-of-state district that
does not offer competing instructional services.
(c) Notwithstanding Subsection (a) or Section 48.051
[Sections 42.101, 42.102, and 42.103], a school district to which
this subsection applies, as provided by Subsection (b), that has
fewer than 130 students in average daily attendance shall be
provided a [an adjusted] basic allotment on the basis of 130
students in average daily attendance if it offers a kindergarten
through grade four program and has preceding or current year's
average daily attendance of at least 75 students or is 30 miles or
more by bus route from the nearest high school district.
SECTION 1.022. Subchapter B, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.053 to read as
follows:
Sec. 48.053. ALLOTMENT FOR CERTAIN SPECIAL-PURPOSE SCHOOL
DISTRICTS. (a) This section applies only to a special-purpose
school district established under Section 11.351 that is operated
by a general academic teaching institution, as that term is defined
by Section 61.003.
(b) For each student who resides in this state and is
enrolled in the district, a school district to which this section
applies is entitled to funding under this chapter as if the district
had no tier one local share for purposes of Section 48.256.
(c) A school district to which this section applies may
decline to receive funding under Subsection (b).
(d) A school district that receives funding under
Subsection (b) for a school year may not charge tuition or fees to
students enrolled in the district who are residents of this state
for that school year, other than fees authorized under Section
11.158.
SECTION 1.023. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter C, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER C. STUDENT-BASED ALLOTMENTS
SECTION 1.024. Subchapter C, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.101 to read as
follows:
Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
Small and mid-sized districts are entitled to an annual allotment
in accordance with this section. In this section:
(1) "AA" is the district's annual allotment per
student in average daily attendance;
(2) "ADA" is the number of students in average daily
attendance for which the district is entitled to an allotment under
Section 48.051; and
(3) "BA" is the basic allotment determined under
Section 48.051.
(b) A school district that has fewer than 1,600 students in
average daily attendance is entitled to an annual allotment for
each student in average daily attendance based on the following
formula:
AA = ((1,600 - ADA) X .0004) X BA
(c) A school district that offers a kindergarten through
grade 12 program and has less than 5,000 students in average daily
attendance is entitled to an annual allotment for each student in
average daily attendance based on the formula, of the following
formulas, that results in the greatest annual allotment:
(1) the formula in Subsection (b), if the district is
eligible for that formula; or
(2) AA = ((5,000 - ADA) X .000025) X BA.
(d) Instead of the allotment under Subsection (b) or (c)(1),
a school district that has fewer than 300 students in average daily
attendance and is the only school district located in and operating
in a county is entitled to an annual allotment for each student in
average daily attendance based on the following formula:
AA = ((1,600 - ADA) X .00047) X BA
SECTION 1.025. Section 42.151, Education Code, is
transferred to Subchapter C, Chapter 48, Education Code, as added
by this Act, redesignated as Section 48.102, Education Code, and
amended to read as follows:
Sec. 48.102 [42.151]. SPECIAL EDUCATION. (a) For each
student in average daily attendance in a special education program
under Subchapter A, Chapter 29, in a mainstream instructional
arrangement, a school district is entitled to an annual allotment
equal to the [adjusted] basic allotment, or, if applicable, the sum
of the basic allotment and the allotment under Section 48.101 to
which the district is entitled, multiplied by 1.15 [1.1]. For each
full-time equivalent student in average daily attendance in a
special education program under Subchapter A, Chapter 29, in an
instructional arrangement other than a mainstream instructional
arrangement, a district is entitled to an annual allotment equal to
the [adjusted] basic allotment, or, if applicable, the sum of the
basic allotment and the allotment under Section 48.101 to which the
district is entitled, multiplied by a weight determined according
to instructional arrangement as follows:
Homebound5.0
Hospital class3.0
Speech therapy5.0
Resource room3.0
Self-contained, mild and moderate,
regular campus3.0
Self-contained, severe, regular campus3.0
Off home campus2.7
Nonpublic day school1.7
Vocational adjustment class2.3
(b) A special instructional arrangement for students with
disabilities residing in care and treatment facilities, other than
state schools, whose parents or guardians do not reside in the
district providing education services shall be established by
commissioner rule [under the rules of the State Board of
Education]. The funding weight for this arrangement shall be 4.0
for those students who receive their education service on a local
school district campus. A special instructional arrangement for
students with disabilities residing in state schools shall be
established by commissioner rule [under the rules of the State
Board of Education] with a funding weight of 2.8.
(c) For funding purposes, the number of contact hours
credited per day for each student in the off home campus
instructional arrangement may not exceed the contact hours credited
per day for the multidistrict class instructional arrangement in
the 1992-1993 school year.
(d) For funding purposes the contact hours credited per day
for each student in the resource room; self-contained, mild and
moderate; and self-contained, severe, instructional arrangements
may not exceed the average of the statewide total contact hours
credited per day for those three instructional arrangements in the
1992-1993 school year.
(e) The commissioner [State Board of Education] by rule
shall prescribe the qualifications an instructional arrangement
must meet in order to be funded as a particular instructional
arrangement under this section. In prescribing the qualifications
that a mainstream instructional arrangement must meet, the
commissioner [board] shall establish requirements that students
with disabilities and their teachers receive the direct, indirect,
and support services that are necessary to enrich the regular
classroom and enable student success.
(f) In this section, "full-time equivalent student" means
30 hours of contact a week between a special education student and
special education program personnel.
(g) The commissioner [State Board of Education] shall adopt
rules and procedures governing contracts for residential placement
of special education students. The legislature shall provide by
appropriation for the state's share of the costs of those
placements.
(h) At least 55 percent of the funds [Funds] allocated under
this section[, other than an indirect cost allotment established
under State Board of Education rule,] must be used in the special
education program under Subchapter A, Chapter 29.
(i) The agency shall encourage the placement of students in
special education programs, including students in residential
instructional arrangements, in the least restrictive environment
appropriate for their educational needs.
(j) [(k)] A school district that provides an extended year
program required by federal law for special education students who
may regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the [adjusted] basic allotment, or, if applicable, the sum of the
basic allotment and the allotment under Section 48.101 to which the
district is entitled [or adjusted allotment, as applicable,] for
each full-time equivalent student in average daily attendance,
multiplied by the amount designated for the student's instructional
arrangement under this section, for each day the program is
provided divided by the number of days in the minimum school year.
The total amount of state funding for extended year services under
this section may not exceed $10 million per year. A school district
may use funds received under this section only in providing an
extended year program.
(k) [(l)] From the total amount of funds appropriated for
special education under this section, the commissioner shall
withhold an amount specified in the General Appropriations Act, and
distribute that amount to school districts for programs under
Section 29.014. The program established under that section is
required only in school districts in which the program is financed
by funds distributed under this subsection and any other funds
available for the program. After deducting the amount withheld
under this subsection from the total amount appropriated for
special education, the commissioner shall reduce each district's
allotment proportionately and shall allocate funds to each district
accordingly.
SECTION 1.026. Subchapter C, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.1021 to read as
follows:
Sec. 48.1021. SPECIAL EDUCATION ALLOTMENT ADVISORY
COMMITTEE. (a) The commissioner shall establish an advisory
committee to develop and make recommendations regarding methods of
financing special education under the public school finance system.
(b) The advisory committee consists of the following
members appointed by the commissioner:
(1) a parent of a student eligible to participate in a
school district's special education program under Section 29.003;
(2) a director of a school district's special
education program under Subchapter A, Chapter 29;
(3) a teacher certified in special education;
(4) a diagnostician;
(5) a licensed specialist in school psychology;
(6) a provider who provides related services, as
described by Section 29.002(2);
(7) a superintendent of a school district;
(8) a member of a school district's board of trustees;
(9) a representative of a disability advocacy
organization;
(10) a member of the special education continuing
advisory committee under Section 29.006;
(11) a teacher certified in general education;
(12) a student eligible to participate in a school
district's special education program under Section 29.003;
(13) a representative of a regional education service
center; and
(14) a school district official who handles business
and finance matters for the district.
(c) Not later than May 1, 2020, the advisory committee, with
assistance from the Legislative Budget Board, shall submit to the
lieutenant governor, the speaker of the house of representatives,
and the standing legislative committees with primary jurisdiction
over public education a report on methods of financing special
education under the public school finance system. The report must
include:
(1) a description of the current funding methods;
(2) an analysis of the possible implementation of a
method of financing special education based on the services and
supports each student receives instead of instructional
arrangement;
(3) data on current special education expenditures
from a representative sample of school districts; and
(4) recommendations for improvements to the current
funding methods or for the implementation of new funding methods.
(d) This section expires September 1, 2021.
SECTION 1.027. Subchapter C, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.103 to read as
follows:
Sec. 48.103. 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 basic allotment multiplied by 0.1 or a
greater amount provided by appropriation.
(b) A school district is entitled to an allotment under
Subsection (a) only for a student who:
(1) is receiving services for dyslexia or a related
disorder in accordance with:
(A) an individualized education program
developed for the student under Section 29.005; or
(B) a plan developed for the student under
Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794);
(2) is receiving instruction that:
(A) meets applicable dyslexia program criteria
established by the State Board of Education; and
(B) is provided by a person with specific
training in providing that instruction; or
(3) is permitted, on the basis of having dyslexia or a
related disorder, to use modifications in the classroom or
accommodations in the administration of assessment instruments
under Section 39.023.
(c) A school district may receive funding for a student
under this section and Section 48.102 if the student satisfies the
requirements of both sections.
(d) A school district may use an amount not to exceed 20
percent of the allotment provided for a qualifying student under
this section to contract with a private provider to provide
supplemental academic services to the student that are recommended
under the student's program or plan described by Subsection (b). A
student may not be excused from school to receive supplemental
academic services provided under this subsection.
SECTION 1.028. Section 42.152, Education Code, is
transferred to Subchapter C, Chapter 48, Education Code, as added
by this Act, redesignated as Section 48.104, Education Code, and
amended to read as follows:
Sec. 48.104 [42.152]. COMPENSATORY EDUCATION ALLOTMENT.
(a) For each student who [is educationally disadvantaged or who is
a student who] does not have a disability and resides in a
residential placement facility in a district in which the student's
parent or legal guardian does not reside, a district is entitled to
an annual allotment equal to the [adjusted] basic allotment
multiplied by 0.2 or, if the student is educationally
disadvantaged, 0.275. For[, and by 2.41 for] each full-time
equivalent student who is in a remedial and support program under
Section 29.081 because the student is pregnant, a district is
entitled to an annual allotment equal to the basic allotment
multiplied by 2.41.
(b) For each student who is educationally disadvantaged and
resides in an economically disadvantaged census block group as
determined by the commissioner under Subsection (c), a district is
entitled to an annual allotment equal to the basic allotment
multiplied by the weight assigned to the student's census block
group under Subsection (d).
(c) For purposes of the allotment under Subsection (b), the
commissioner shall establish an index for economically
disadvantaged census block groups in the state that provides
criteria for determining which census block groups are economically
disadvantaged and categorizes economically disadvantaged census
block groups in five tiers according to relative severity of
economic disadvantage. In determining the severity of economic
disadvantage in a census block group, the commissioner shall
consider:
(1) the median household income;
(2) the average educational attainment of the
population;
(3) the percentage of single-parent households;
(4) the rate of homeownership; and
(5) other economic criteria the commissioner
determines likely to disadvantage a student's preparedness and
ability to learn.
(d) The weights assigned to the five tiers of the index
established under Subsection (c) are, from least to most severe
economic disadvantage, 0.225, 0.2375, 0.25, 0.2625, and 0.275.
(e) If insufficient data is available for any school year to
evaluate the level of economic disadvantage in a census block
group, a school district is entitled to an annual allotment equal to
the basic allotment multiplied by 0.225 for each student who is
educationally disadvantaged and resides in that census block group
[For purposes of this section, the number of educationally
disadvantaged students is determined:
[(1) by averaging the best six months' numbers of
students eligible for enrollment in the national school lunch
program of free or reduced-price lunches for the preceding school
year; or
[(2) in the manner provided by commissioner rule].
(f) [(b-1)] A student receiving a full-time virtual
education through the state virtual school network may be included
in determining the number of [educationally disadvantaged]
students who are educationally disadvantaged and reside in an
economically disadvantaged census block group under Subsection (b)
or (e), as applicable, if the school district submits to the
commissioner a plan detailing the enhanced services that will be
provided to the student and the commissioner approves the plan.
(g) Not later than March 1 of each year, the commissioner
shall:
(1) review and, if necessary, update the index
established under Subsection (c) to be used for the following
school year, based on the most recent estimates published by the
United States Census Bureau; and
(2) notify each school district of any changes to the
index.
(h) The state demographer, the Department of Agriculture,
and any other state agency with relevant information shall assist
the commissioner in performing the commissioner's duties under this
section.
(i) On a schedule determined by the commissioner, each
school district shall report to the agency the census block group in
which each student enrolled in the district who is educationally
disadvantaged resides. The agency shall provide to school
districts a resource for use in determining the census block group
in which a student resides.
(j) The commissioner shall adopt rules for the method of
determining the number of students who qualify for an allotment
under this section at a campus that participates in the Community
Eligibility Provision administered by the United States Department
of Agriculture, as provided by the Healthy, Hunger-Free Kids Act of
2010 (Pub. L. No. 111-296).
(j-1) In addition to other purposes for which funds
allocated under this section may be used, those funds may also be
used to:
(1) provide child-care services or assistance with
child-care expenses for students at risk of dropping out of school,
as described by Section 29.081(d)(5); or
(2) pay the costs associated with services provided
through a life skills program in accordance with Sections
29.085(b)(1) and (3)-(7).
(k) At least 55 percent of the funds [(c) Funds] allocated
under this section must [shall] be used to:
(1) fund supplemental programs and services designed
to eliminate any disparity in performance on assessment instruments
administered under Subchapter B, Chapter 39, or disparity in the
rates of high school completion between:
(A) students who are educationally disadvantaged
and students who are not educationally disadvantaged; and
(B) students at risk of dropping out of school,
as defined by Section 29.081, and all other students; or
(2) [. Specifically, the funds, other than an indirect
cost allotment established under State Board of Education rule,
which may not exceed 45 percent, may be used to meet the costs of
providing a compensatory, intensive, or accelerated instruction
program under Section 29.081 or a disciplinary alternative
education program established under Section 37.008, to pay the
costs associated with placing students in a juvenile justice
alternative education program established under Section 37.011, or
to] support a program eligible under Title I of the Elementary and
Secondary Education Act of 1965, as provided by Pub. L. No. 103-382
and its subsequent amendments, and by federal regulations
implementing that Act[, at a campus at which at least 40 percent of
the students are educationally disadvantaged].
(l) The commissioner shall adopt rules regarding the use of
funds described by Subsection (k). The rules:
(1) must:
(A) permit a school district to use those funds
for programs and services that reflect the needs of students at each
campus in the district; and
(B) provide for streamlined reporting on the use
of those funds; and
(2) may not prohibit the use of those funds for any
purpose for which the use of those funds was authorized under former
Section 42.152 as that section existed on September 1, 2018.
(m) The State Board of Education shall adopt rules requiring
a report on the use of funds under Subsection (k) as part of the
annual audit under Section 44.008 and shall develop minimum
requirements for that report.
(n) The commissioner annually shall review each report
required under Subsection (m) for the preceding school year and:
(1) identify each school district that was not in
compliance with Subsection (k) during that school year; and
(2) provide each district identified under
Subdivision (1) a reasonable opportunity to comply with Subsection
(k).
(o) [In meeting the costs of providing a compensatory,
intensive, or accelerated instruction program under Section
29.081, a district's compensatory education allotment shall be used
for costs supplementary to the regular education program, such as
costs for program and student evaluation, instructional materials
and equipment and other supplies required for quality instruction,
supplemental staff expenses, salary for teachers of at-risk
students, smaller class size, and individualized instruction. A
home-rule school district or an open-enrollment charter school must
use funds allocated under Subsection (a) for a purpose authorized
in this subsection but is not otherwise subject to Subchapter C,
Chapter 29. For purposes of this subsection, a program specifically
designed to serve students at risk of dropping out of school, as
defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
[(c-1) Notwithstanding Subsection (c), funds allocated
under this section may be used to fund in proportion to the
percentage of students served by the program that meet the criteria
in Section 29.081(d) or (g):
[(1) an accelerated reading instruction program under
Section 28.006(g); or
[(2) a program for treatment of students who have
dyslexia or a related disorder as required by Section 38.003.
[(c-2) Notwithstanding Subsection (c), funds allocated
under this section may be used to fund a district's mentoring
services program under Section 29.089.
[(d) The agency shall evaluate the effectiveness of
accelerated instruction and support programs provided under
Section 29.081 for students at risk of dropping out of school.
[(q) The State Board of Education, with the assistance of
the comptroller, shall develop and implement by rule reporting and
auditing systems for district and campus expenditures of
compensatory education funds to ensure that compensatory education
funds, other than the indirect cost allotment, are spent only to
supplement the regular education program as required by Subsection
(c). The reporting requirements shall be managed electronically to
minimize local administrative costs. A district shall submit the
report required by this subsection not later than the 150th day
after the last day permissible for resubmission of information
required under Section 42.006.
[(q-1) The commissioner shall develop a system to identify
school districts that are at high risk of having used compensatory
education funds other than in compliance with Subsection (c) or of
having inadequately reported compensatory education expenditures.
If a review of the report submitted under Subsection (q), using the
risk-based system, indicates that a district is not at high risk of
having misused compensatory education funds or of having
inadequately reported compensatory education expenditures, the
district may not be required to perform a local audit of
compensatory education expenditures and is not subject to on-site
monitoring under this section.
[(q-2) If a review of the report submitted under Subsection
(q), using the risk-based system, indicates that a district is at
high risk of having misused compensatory education funds, the
commissioner shall notify the district of that determination. The
district must respond to the commissioner not later than the 30th
day after the date the commissioner notifies the district of the
commissioner's determination. If the district's response does not
change the commissioner's determination that the district is at
high risk of having misused compensatory education funds or if the
district does not respond in a timely manner, the commissioner
shall:
[(1) require the district to conduct a local audit of
compensatory education expenditures for the current or preceding
school year;
[(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures; or
[(3) both require a local audit and order on-site
monitoring.
[(q-3) If a review of the report submitted under Subsection
(q), using the risk-based system, indicates that a district is at
high risk of having inadequately reported compensatory education
expenditures, the commissioner may require agency staff to assist
the district in following the proper reporting methods or amending
a district or campus improvement plan under Subchapter F, Chapter
11. If the district does not take appropriate corrective action
before the 45th day after the date the agency staff notifies the
district of the action the district is expected to take, the
commissioner may:
[(1) require the district to conduct a local audit of
the district's compensatory education expenditures; or
[(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures.
[(q-4)] The commissioner, in the year following a
determination under Subsection (n) that a school district was not
in compliance with Subsection (k) for the 2021-2022 school year or a
subsequent school year [local audit of compensatory education
expenditures], shall withhold from the [a] district's foundation
school fund payment an amount equal to the amount of compensatory
education funds the commissioner [agency] determines were not used
in compliance with Subsection (k) [(c)]. The commissioner shall
release to a district funds withheld under this subsection when the
district provides to the commissioner a detailed plan to spend
those funds in compliance with Subsection (k) [(c)]. In determining
whether a school district is subject to the withholding of funding
required under this subsection, the commissioner may consider the
district's average use of funds for the three preceding school
years.
[(r) The commissioner shall grant a one-year exemption from
the requirements of Subsections (q)-(q-4) to a school district in
which the group of students who have failed to perform
satisfactorily in the preceding school year on an assessment
instrument required under Section 39.023(a), (c), or (l)
subsequently performs on those assessment instruments at a level
that meets or exceeds a level prescribed by commissioner rule. Each
year the commissioner, based on the most recent information
available, shall determine if a school district is entitled to an
exemption for the following school year and notify the district of
that determination.]
SECTION 1.029. Subchapter C, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.1041 to read as
follows:
Sec. 48.1041. COMPENSATORY EDUCATION ALLOTMENT ADVISORY
COMMITTEE. (a) The commissioner shall establish an advisory
committee to advise the agency in adopting rules for the
compensatory education allotment under Section 48.104, including:
(1) rules establishing the economic criteria
described by Section 48.104(c)(5);
(2) rules detailing the method to count students who
qualify for the allotment in:
(A) a dropout recovery school or program; or
(B) a residential treatment facility;
(3) methods for properly counting students who are
homeless within the meaning of "homeless children and youths" under
42 U.S.C. Section 11434a; and
(4) rules to determine the appropriate weight by which
to adjust the basic allotment in determining the compensatory
allotment for students described by Subdivision (3).
(b) The advisory committee consists of members appointed by
the commissioner, including:
(1) school district superintendents and chief
financial officers;
(2) classroom teachers;
(3) representatives of school districts located in an
area other than an urban area, as designated by the United States
Census Bureau;
(4) at least one representative of an open-enrollment
charter school;
(5) demographers;
(6) experts on census data;
(7) public school finance experts; and
(8) appropriate employees of the agency.
(c) Members of the advisory committee serve at the pleasure
of the commissioner.
(d) A member of the advisory committee is not entitled to
receive compensation for service on the committee or reimbursement
for expenses incurred in performing official duties as a member of
the committee.
(e) Chapter 2110, Government Code, does not apply to the
advisory committee.
(f) Not less than once every two years, the advisory
committee shall review census and student data and provide
recommendations to the agency regarding any suggested changes to
the rules adopted for the compensatory education allotment under
Section 48.104.
SECTION 1.030. Sections 42.153, 42.154, and 42.157,
Education Code, are transferred to Subchapter C, Chapter 48,
Education Code, as added by this Act, redesignated as Sections
48.105, 48.106, and 48.107, Education Code, and amended to read as
follows:
Sec. 48.105 [42.153]. BILINGUAL EDUCATION ALLOTMENT. (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:
(1) for a student of limited English proficiency, as
defined by Section 29.052:
(A) 0.1; or
(B) 0.15 if the student is in a bilingual
education program using a dual language immersion/one-way or
two-way program model; and
(2) for a student not described by Subdivision (1),
0.05 if the student is in a bilingual education program using a dual
language immersion/two-way program model.
(b) At least 55 percent of the funds [Funds] allocated under
this section[, other than an indirect cost allotment established
under State Board of Education rule,] must be used in providing
bilingual education or special language programs under Subchapter
B, Chapter 29[, and must be accounted for under existing agency
reporting and auditing procedures].
[(c)] A district's bilingual education or special language
allocation may be used only for program and student evaluation,
instructional materials and equipment, staff development,
supplemental staff expenses, salary supplements for teachers,
incremental costs associated with providing smaller class sizes,
and other supplies required for quality instruction [and smaller
class size].
(c) The State Board of Education shall adopt rules requiring
a report on the use of funds under Subsection (b) as part of the
annual audit under Section 44.008 and shall develop minimum
requirements for that report.
(d) The commissioner annually shall review each report
required under Subsection (c) for the preceding school year and:
(1) identify each school district that was not in
compliance with Subsection (b) during that school year; and
(2) provide each district identified under
Subdivision (1) a reasonable opportunity to comply with Subsection
(b).
(e) The commissioner, in the year following a determination
under Subsection (d) that a school district was not in compliance
with Subsection (b) for the 2021-2022 school year or a subsequent
school year, shall withhold from the district's foundation school
fund payment an amount equal to the amount of bilingual education or
special language funds the commissioner determines were not used in
compliance with Subsection (b). The commissioner shall release to a
district funds withheld under this subsection when the district
provides to the commissioner a detailed plan to spend those funds in
compliance with Subsection (b). In determining whether a school
district is subject to the withholding of funding required under
this subsection, the commissioner may consider the district's
average use of funds for the three preceding school years.
Sec. 48.106 [42.154]. CAREER AND TECHNOLOGY EDUCATION
ALLOTMENT. (a) For each full-time equivalent student in average
daily attendance in an approved career and technology education
program in grades 7 [nine] through 12 [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 for each of the following in which [, if] the
student is enrolled:
(A) [in] two or more advanced career and
technology education classes for a total of three or more credits;
(B) a campus designated as a P-TECH school under
Section 29.556; or
(C) a campus that is a member of the New Tech
Network and that focuses on project-based learning and work-based
education.
(b) In this section:
(1) "Career and technology education class" and
"career and technology education program" include [a] technology
applications courses [course on cybersecurity adopted or selected
by the State Board of Education under Section 28.025(c-10)].
(2) "Full-time equivalent student" means 30 hours of
contact a week between a student and career and technology
education program personnel.
(c) At least 55 percent of the funds [Funds] allocated under
this section[, other than an indirect cost allotment established
under State Board of Education rule,] must be used in providing
career and technology education programs in grades 7 [nine] through
12 [or career and technology education programs for students with
disabilities in grades seven through 12 under Sections 29.182,
29.183, and 29.184].
[(d) The commissioner shall conduct a cost-benefit
comparison between career and technology education programs and
mathematics and science programs.
[(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 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.]
Sec. 48.107 [42.157]. PUBLIC EDUCATION GRANT ALLOTMENT.
(a) Except as provided by Subsection (b), for each student in
average daily attendance who is using a public education grant
under Subchapter G, Chapter 29, to attend school in a district other
than the district in which the student resides, the district in
which the student attends school is entitled to an annual allotment
equal to the [adjusted] basic allotment multiplied by a weight of
0.1.
(b) The total number of allotments under this section to
which a district is entitled may not exceed the number by which the
number of students using public education grants to attend school
in the district exceeds the number of students who reside in the
district and use public education grants to attend school in
another district.
SECTION 1.031. Subchapter C, Chapter 48, Education Code, as
added by this Act, is amended by adding Sections 48.108, 48.110,
48.1101, 48.111, 48.112, and 48.114 to read as follows:
Sec. 48.108. EARLY EDUCATION ALLOTMENT. (a) For each
student in average daily attendance in kindergarten through third
grade, a school district is entitled to an annual allotment equal to
the basic allotment multiplied by 0.1 if the student is:
(1) educationally disadvantaged; or
(2) a student of limited English proficiency, as
defined by Section 29.052, and is in a bilingual education or
special language program under Subchapter B, Chapter 29.
(b) Funds allocated under this section must be used to fund
programs and services designed to improve student performance in
reading and mathematics in prekindergarten through third grade,
including programs and services designed to assist the district in
achieving the goals set in the district's early childhood literacy
and mathematics proficiency plans adopted under Section 11.185.
(c) A school district is entitled to an allotment under each
subdivision of Subsection (a) for which a student qualifies.
(d) A school district may receive funding for a student
under this section and under Sections 48.104 and 48.105, as
applicable, if the student satisfies the requirements of each
applicable section.
Sec. 48.110. COLLEGE, CAREER, OR MILITARY READINESS
OUTCOMES BONUS. (a) The purpose of this section is to further the
goal set under the state's master plan for higher education
developed under Section 61.051 for at least 60 percent of all adults
aged 25 to 34 in this state to achieve a postsecondary degree or
workforce credential by 2030.
(b) For purposes of the outcomes bonus under this section,
the commissioner shall determine the threshold percentage as
provided by Subsection (g) for college, career, or military
readiness as described by Subsection (f) for each of the following
cohorts:
(1) annual graduates who are educationally
disadvantaged;
(2) annual graduates who are not educationally
disadvantaged; and
(3) annual graduates who are enrolled in a special
education program under Subchapter A, Chapter 29, regardless of
whether the annual graduates are educationally disadvantaged.
(c) Each year, the commissioner shall determine for each
school district the minimum number of annual graduates in each
cohort described by Subsection (b) who would have to demonstrate
college, career, or military readiness as described by Subsection
(f) in order for the district to achieve a percentage of college,
career, or military readiness for that cohort equal to the
threshold percentage established for that cohort under Subsection
(b).
(d) For each annual graduate in a cohort described by
Subsection (b) who demonstrates college, career, or military
readiness as described by Subsection (f) in excess of the minimum
number of students determined for the applicable district cohort
under Subsection (c), a school district is entitled to an annual
outcomes bonus of:
(1) if the annual graduate is educationally
disadvantaged, $5,000;
(2) if the annual graduate is not educationally
disadvantaged, $3,000; and
(3) if the annual graduate is enrolled in a special
education program under Subchapter A, Chapter 29, $2,000,
regardless of whether the annual graduate is educationally
disadvantaged.
(e) A school district is entitled to an outcomes bonus under
each subdivision of Subsection (d) for which an annual graduate
qualifies.
(f) For purposes of this section, an annual graduate
demonstrates:
(1) college readiness if the annual graduate:
(A) achieves college readiness standards used
for accountability purposes under Chapter 39 on the ACT, the SAT, or
an assessment instrument designated by the Texas Higher Education
Coordinating Board under Section 51.334; and
(B) during a time period established by
commissioner rule, enrolls at a postsecondary educational
institution;
(2) career readiness if the annual graduate:
(A) achieves college readiness standards used
for accountability purposes under Chapter 39 on the ACT, the SAT, or
an assessment instrument designated by the Texas Higher Education
Coordinating Board under Section 51.334; and
(B) during a time period established by
commissioner rule, earns an industry-accepted certificate; and
(3) military readiness if the annual graduate:
(A) achieves a passing score set by the
applicable military branch on the Armed Services Vocational
Aptitude Battery; and
(B) during a time period established by
commissioner rule, enlists in the armed forces of the United
States.
(g) The commissioner shall establish the threshold
percentages under Subsection (b) using the 25th percentile of
statewide college, career, or military readiness as described by
Subsection (f) for the applicable cohort of annual graduates during
the 2016-2017 school year.
(h) On application by a school district, the commissioner
may allow annual graduates from the district to satisfy the
requirement for demonstrating career readiness under Subsection
(f)(2)(B) by successfully completing a coherent sequence of courses
required to obtain an industry-accepted certificate. The district
must demonstrate in the application that the district is unable to
provide sufficient courses or programs to enable students enrolled
at the district to earn an industry-accepted certificate within the
time period established by the commissioner under Subsection
(f)(2)(B). The commissioner by rule shall provide the criteria
required for an application under this subsection.
(i) At least 55 percent of the funds allocated under this
section must be used in grades 8 through 12 to improve college,
career, and military readiness outcomes as described by Subsection
(f).
Sec. 48.1101. STUDY ON ALTERNATIVE CAREER READINESS
MEASURES FOR SMALL AND RURAL DISTRICTS. (a) The agency shall
conduct a study on alternative career readiness measures for small
and rural school districts to determine if annual graduates
demonstrate career readiness under Section 48.110(f)(2)(B).
(b) Not later than January 1, 2021, the agency shall submit
to the legislature a report on the results of the study and any
recommendations for legislative or other action.
(c) This section expires September 1, 2021.
Sec. 48.111. FAST GROWTH ALLOTMENT. A school district in
which the growth in student enrollment in the district over the
preceding three school years is in the top quartile of student
enrollment growth in school districts in the state for that period,
as determined by the commissioner, is entitled to an annual
allotment equal to the basic allotment multiplied by 0.04 for each
student in average daily attendance.
Sec. 48.112. TEACHER INCENTIVE ALLOTMENT. (a) In this
section, "rural campus" means a school campus that is:
(1) located in:
(A) an area that is not designated as an
urbanized area or an urban cluster by the United States Census
Bureau; and
(B) a school district with fewer than 5,000
enrolled students; or
(2) designated as a rural campus under rules adopted
by the commissioner.
(b) To ensure classroom teachers in this state have access
to a six-figure salary, the allotment provided to a school district
under this section offers resources to the district to increase
teacher compensation and prioritize funding for high needs and
rural district campuses.
(c) For each classroom teacher with a teacher designation
under Section 21.3521 employed by a school district, the school
district is entitled to an allotment equal to the following
applicable base amount increased by the high needs and rural factor
as determined under Subsection (d):
(1) $12,000, or an increased amount not to exceed
$32,000 as determined under Subsection (d), for each master
teacher;
(2) $6,000, or an increased amount not to exceed
$18,000 as determined under Subsection (d), for each exemplary
teacher; and
(3) $3,000, or an increased amount not to exceed
$9,000 as determined under Subsection (d), for each recognized
teacher.
(d) The high needs and rural factor is determined by
multiplying the following applicable amounts by the average of the
point value assigned to each student at a district campus under
Subsection (e):
(1) $5,000 for each master teacher;
(2) $3,000 for each exemplary teacher; and
(3) $1,500 for each recognized teacher.
(e) Except as provided by Subsection (f), a point value for
each student at a district campus shall be assigned as follows:
(1) 0, for a student for whom the district does not
receive a compensatory education allotment under Section 48.104(b)
or (e); or
(2) 0.5, 1.0, 2.0, 3.0, or 4.0, respectively, from
least to most severe economic disadvantage according to the census
block group in which the student resides, for a student for whom the
district receives a compensatory education allotment under Section
48.104(b) or (e).
(f) If the campus at which a student is enrolled is
classified as a rural campus, a student is assigned the point value
two tiers higher than the student's point value determined under
Subsection (e)(1) or (2).
(g) A district is entitled to receive an increased allotment
under this section in the amount necessary for reimbursement for
any fees paid under Section 21.3521.
(h) The commissioner shall annually make available to the
public a list of campuses with the projected allotment amounts per
teacher designation at each campus.
(i) A district shall annually certify that:
(1) funds received under this section were used as
follows:
(A) at least 90 percent of each allotment
received under Subsection (c) was used for the compensation of
teachers employed at the campus at which the teacher for whom the
district received the allotment is employed; and
(B) any other funds received under this section
were used for costs associated with implementing Section 21.3521,
including efforts to support teachers in obtaining designations;
and
(2) the district prioritized high needs campuses in
the district in using funds received under this section.
Sec. 48.114. MENTOR PROGRAM ALLOTMENT. (a) A school
district that has implemented a mentoring program for classroom
teachers who have less than two years of teaching experience under
Section 21.458 is entitled to an allotment as determined under
Subsection (b) to fund the mentoring program and to provide
stipends for mentor teachers.
(b) The commissioner shall adopt a formula to determine the
amount to which each district described by Subsection (a) is
entitled.
(c) Funding provided to districts under this section may be
used only for providing:
(1) mentor teacher stipends;
(2) scheduled release time for mentor teachers and the
classroom teachers to whom they are assigned for meeting and
engaging in mentoring activities; and
(3) mentoring support through providers of mentor
training.
SECTION 1.032. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter D, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER D. ADDITIONAL FUNDING
SECTION 1.033. Sections 42.155 and 42.158, Education Code,
are transferred to Subchapter D, Chapter 48, Education Code, as
added by this Act, redesignated as Sections 48.151 and 48.152,
Education Code, and amended to read as follows:
Sec. 48.151 [42.155]. TRANSPORTATION ALLOTMENT. (a) Each
district or county operating a transportation system is entitled to
allotments for transportation costs as provided by this section.
(b) As used in this section:
(1) "Regular eligible student" means a student who:
(A) resides two or more miles from the student's
campus of regular attendance, measured along the shortest route
that may be traveled on public roads, and who is not classified as a
student eligible for special education services; or
(B) is a homeless child or youth, as defined by 42
U.S.C. Section 11434a.
(2) "Eligible special education student" means a
student who is eligible for special education services under
Section 29.003 and who would be unable to attend classes without
special transportation services.
[(3) "Linear density" means the average number of
regular eligible students transported daily, divided by the
approved daily route miles traveled by the respective
transportation system.]
(c) Each district or county operating a regular
transportation system is entitled to an allotment based on a rate
per mile [the daily cost] per regular eligible student set [of
operating and maintaining the regular transportation system and the
linear density of that system. In determining the cost, the
commissioner shall give consideration to factors affecting the
actual cost of providing these transportation services in each
district or county. The average actual cost is to be computed by the
commissioner and included for consideration] by the legislature in
the General Appropriations Act. [The allotment per mile of approved
route may not exceed the amount set by appropriation.]
(d) A district or county may apply for and on approval of the
commissioner receive an additional amount of up to 10 percent of its
regular transportation allotment to be used for the transportation
of children living within two miles of the school they attend who
would be subject to hazardous traffic conditions or a high risk of
violence if they walked to school.
(d-1) For purposes of Subsection (d), each board of trustees
shall provide to the commissioner an explanation of the hazardous
traffic conditions or areas presenting a high risk of violence
applicable to that district and shall identify the specific
hazardous or high-risk areas for which the allocation is
requested. A hazardous traffic condition exists where no walkway
is provided and children must walk along or cross a freeway or
expressway, an underpass, an overpass or a bridge, an uncontrolled
major traffic artery, an industrial or commercial area, or another
comparable condition. An area presents a high risk of violence if
law enforcement records indicate a high incidence of violent crimes
in the area. Each board of trustees requesting funds for an area
presenting a high risk of violence must, in addition to the
explanation required by this subsection, provide the commissioner
with consolidated law enforcement records that document violent
crimes identified by reporting agencies within the relevant
jurisdiction.
(d-2) A district or county may use all or part of any funds
received under Subsection (d) to support community walking
transportation programs, including walking school bus programs,
provided that the district or county requires each supported
program to submit a financial report to the district or county each
semester that covers services provided by the program for the
benefit of the district or county. The commissioner shall adopt
rules governing the transportation allotment as necessary to permit
a district or county to receive funds under Subsection (d) that may
be used to support innovative school safety projects, including
community walking transportation programs as provided by this
subsection and any other appropriate safety project, including
rules defining an approved walking route mile that may be used as
necessary in implementing this subsection.
(e) The commissioner may grant an amount set by
appropriation for private or commercial transportation for
eligible students from isolated areas. The need for this type of
transportation grant shall be determined on an individual basis and
the amount granted shall not exceed the actual cost. The grants may
be made only in extreme hardship cases. A grant may not be made if
the students live within two miles of an approved school bus route.
(f) The cost of transporting career and technology
education students from one campus to another inside a district,
[or] from a sending district to another secondary public school for
a career and technology program or an area career and technology
school or to an approved post-secondary institution under a
contract for instruction approved by the agency, or from a district
campus to a location at which students are provided work-based
learning under the district's career and technology program shall
be reimbursed based on the number of actual miles traveled times the
district's official extracurricular travel per mile rate as set by
the board of trustees and approved by the agency.
(g) A school district or county that provides special
transportation services for eligible special education students is
entitled to a state allocation paid on a previous year's
cost-per-mile basis. The [maximum] rate per mile allowable shall
be set by appropriation based on data gathered from the first year
of each preceding biennium. Districts may use a portion of their
support allocation to pay transportation costs, if necessary. The
commissioner may grant an amount set by appropriation for private
transportation to reimburse parents or their agents for
transporting eligible special education students. The mileage
allowed shall be computed along the shortest public road from the
student's home to school and back, morning and afternoon. The need
for this type transportation shall be determined on an individual
basis and shall be approved only in extreme hardship cases.
(h) Funds allotted under this section must be used in
providing transportation services.
(i) In the case of a district belonging to a county
transportation system, the district's transportation allotment for
purposes of determining a district's foundation school program
allocations is determined on the basis of the number of approved
daily route miles in the district [multiplied by the allotment per
mile to which the county transportation system is entitled].
(j) The Texas School for the Deaf is entitled to an
allotment under this section. The commissioner shall determine the
appropriate allotment.
(k) Notwithstanding any other provision of this section,
the commissioner may not reduce the allotment to which a district or
county is entitled under this section because the district or
county provides transportation for an eligible student to and from
a child-care facility, as defined by Section 42.002, Human
Resources Code, or a grandparent's residence instead of the
student's residence, as authorized by Section 34.007 of this code
[, if the transportation is provided within the approved routes of
the district or county for the school the student attends].
(l) A school district may, with the funds allotted under
this section, provide a bus pass or card for another transportation
system to each student who is eligible to use the regular
transportation system of the district but for whom the regular
transportation system of the district is not a feasible method of
providing transportation. The commissioner by rule shall provide
procedures for a school district to provide bus passes or cards to
students under this subsection.
(m) A school district shall be reimbursed on a per-mile
basis for the cost of transporting a dual credit student to another
campus in the district, a campus in another district, or a
postsecondary educational institution for purposes of attending
the course, if the course is not available at the student's campus.
Sec. 48.152 [42.158]. NEW INSTRUCTIONAL FACILITY
ALLOTMENT. (a) In this section:
(1) "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.
(b) A school district is entitled to an additional allotment
as provided by this section for operational expenses associated
with opening a new instructional facility.
(c) [(a-1)] A school district entitled to an allotment
under this section may use funds from the district's allotment to
renovate an existing instructional facility to serve as a dedicated
cybersecurity computer laboratory.
(d) [(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 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 for each additional student in average daily
attendance at the facility.
(e) [(c)] For purposes of this section, the number of
additional students in average daily attendance at a facility is
the difference between the number of students in average daily
attendance in the current year at that facility and the number of
students in average daily attendance at that facility in the
preceding year.
(f) The [(d) Subject to Subsection (d-1), the] amount
appropriated for allotments under this section may not exceed $100
[$25] million in a school year. If the total amount of allotments
to which districts are entitled under this section for a school year
exceeds the amount appropriated under this subsection, the
commissioner shall reduce each district's allotment under this
section in the manner provided by Section 48.266(f) [42.253(h)].
[(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 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
for each student in average daily attendance.
[(e) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotments to
which the district is entitled under this section, against the
total amount required under Section 41.093 for the district to
purchase attendance credits. A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
[(f) The commissioner may adopt rules necessary to
implement this section.
[(g) In this section:
[(1) "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 1.034. Subchapter D, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.153 to read as
follows:
Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
charter school is entitled to $275 for each student in average daily
attendance who:
(1) resides in a residential placement facility; or
(2) is at a district or school or a campus of the
district or school that is designated as a dropout recovery school
under Section 39.0548.
SECTION 1.035. Section 42.106, Education Code, is
transferred to Subchapter D, Chapter 48, Education Code, as added
by this Act, redesignated as Section 48.154, and amended to read as
follows:
Sec. 48.154 [42.106]. TUITION ALLOTMENT FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS. A school district that contracts for
students residing in the district to be educated in another
district under Section 25.039(a) is entitled to receive an
allotment equal to the total amount of tuition required to be paid
by the district under Section 25.039, not to exceed the amount
specified by commissioner rule under Section 25.039(b).
SECTION 1.036. Subchapter D, Chapter 48, Education Code, as
added by this Act, is amended by adding Sections 48.155 and 48.156
to read as follows:
Sec. 48.155. COLLEGE PREPARATION ASSESSMENT REIMBURSEMENT.
A school district is entitled to reimbursement for the amount of
fees paid by the district for the administration of an assessment
instrument under Section 39.0261(a)(3).
Sec. 48.156. CERTIFICATION EXAMINATION REIMBURSEMENT. A
school district is entitled to reimbursement for the amount of a
subsidy paid by the district for a student's certification
examination under Section 29.190(a) as provided by Section
29.190(c).
SECTION 1.037. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter E, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER E. TIER TWO ENTITLEMENT
SECTION 1.038. Sections 42.301, 42.302, 42.303, and 42.304,
Education Code, are transferred to Subchapter E, Chapter 48,
Education Code, as added by this Act, redesignated as Sections
48.201, 48.202, 48.203, and 48.204, Education Code, and amended to
read as follows:
Sec. 48.201 [42.301]. PURPOSE. The purpose of the tier
two [guaranteed yield] component of the Foundation School Program
is to provide each school district with the opportunity to provide
the basic program and to supplement that program at a level of its
own choice. An allotment under this subchapter may be used for any
legal purpose other than capital outlay or debt service.
Sec. 48.202 [42.302]. TIER TWO ALLOTMENT. (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 48.203 [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 48.258 or by the quotient of the value of "DPV" as
determined under Section 48.256(d) if that subsection applies to
the district [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 48.258 or by the quotient of the value of
"DPV" as determined under Section 48.256(d) if that subsection
applies to the district [42.2521], divided by 100.
(a-1) For purposes of Subsection (a), the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort ("GL") for a school district is:
(1) the greater of the amount of district tax revenue
per weighted student per cent of tax effort [that would be]
available to a school district at the 96th percentile of wealth per
weighted student [the Austin Independent School District, as
determined by the commissioner in cooperation with the Legislative
Budget Board, if the reduction of the limitation on tax increases as
provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not
apply,] or the amount that results from multiplying 6,160, or the
greater amount provided under Section 48.051(b), if applicable, by
0.016 [of district tax revenue per weighted student per cent of tax
effort used for purposes of this subdivision in the preceding
school year], for the first eight [six] cents by which the
district's maintenance and operations tax rate exceeds the
district's tier one tax rate [equal to the sum of 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 any additional tax effort
included in calculating the district's compressed tax rate under
Section 42.101(a-1)]; and
(2) subject to Subsection (f), the amount that results
from multiplying $6,160, or the greater amount provided under
Section 48.051(b), if applicable, by 0.008 [$31.95], for the
district's maintenance and operations tax effort that exceeds the
amount of tax effort described by Subdivision (1).
(a-2) The limitation on district enrichment tax rate
("DTR") under Section 48.203 [42.303] does not apply to the
district's maintenance and operations tax effort described by
Subsection (a-1)(1).
(b) In computing the district enrichment tax rate of a
school district, the total amount of maintenance and operations
taxes collected by the school district does not include the amount
of:
(1) the district's local fund assignment under Section
48.256 [42.252]; or
(2) taxes paid into a tax increment fund under Chapter
311, Tax Code.
(c) For purposes of this section, school district taxes for
which credit is granted under Section 31.035, 31.036, or 31.037,
Tax Code, are considered taxes collected by the school district as
if the taxes were paid when the credit for the taxes was granted.
(d) For purposes of this section, the total amount of
maintenance and operations taxes collected for an applicable school
year by a school district with alternate tax dates, as authorized by
Section 26.135, Tax Code, is the amount of taxes collected on or
after January 1 of the year in which the school year begins and not
later than December 31 of the same year.
(e) For purposes of this section, school district taxes for
which credit is granted under former Subchapter D, Chapter 313, Tax
Code, are considered taxes collected by the school district as if
the taxes were paid when the credit for the taxes was granted.
(f) For a school year in which the dollar amount guaranteed
level of state and local funds per weighted student per cent of tax
effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort ("GL") under Subsection (a-1)(2) for the
preceding school year, a school district shall reduce the
district's tax rate under Section 45.0032(b)(2) for the tax year
that corresponds to that school year to a rate that results in the
amount of state and local funds per weighted student per cent of tax
effort available to the district at the dollar amount guaranteed
level for the preceding school year. A school district is not
entitled to the amount equal to the increase of revenue described by
this subsection for the school year for which the district must
reduce the district's tax rate. Unless Section 26.08(a-1), Tax
Code, applies to the district, for a tax year in which a district
must reduce the district's tax rate under this subsection, the
district may not increase the district's maintenance and operations
tax rate to a rate that exceeds the maximum maintenance and
operations tax rate permitted under Section 45.003(d) or (f), as
applicable, minus the reduction of tax effort required under this
subsection. This subsection does not apply if the amount of state
funds appropriated for a school year specifically excludes the
amount necessary to provide the dollar amount guaranteed level of
state and local funds per weighted student per cent of tax effort
under Subsection (a-1)(2) [If a school district imposes a
maintenance and operations tax at a rate greater than the rate equal
to 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, the district
is entitled to receive an allotment under this section on the basis
of that greater tax effort].
(f-1) Notwithstanding Subsection (f), for the 2019-2020
school year, the reduction of a school district's tax rate required
under Subsection (f) applies to the district's total enrichment tax
rate under Section 45.0032(b) minus eight cents. This subsection
expires September 1, 2020.
Sec. 48.203 [42.303]. LIMITATION ON ENRICHMENT TAX RATE.
The district enrichment tax rate ("DTR") under Section 48.202
[42.302] may not exceed the amount per $100 of valuation by which
the maximum rate permitted under Section 45.003 exceeds the rate
used to determine the district's local share under Section 48.256
[42.252], or a greater amount for any year provided by
appropriation.
Sec. 48.204 [42.304]. COMPUTATION OF AID FOR DISTRICT ON
MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
this subchapter for a school district located on a federal military
installation or at Moody State School is computed using the average
tax rate and property value per student of school districts in the
county, as determined by the commissioner.
SECTION 1.039. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter F, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER F. FINANCING THE PROGRAM
SECTION 1.040. Sections 42.251, 42.2511, 42.2514, 42.2515,
42.2516, and 42.252, Education Code, are transferred to Subchapter
F, Chapter 48, Education Code, as added by this Act, redesignated as
Sections 48.251, 48.252, 48.253, 48.254, 48.255, and 48.256,
Education Code, and amended to read as follows:
Sec. 48.251 [42.251]. FINANCING; GENERAL RULE. (a) The
cost of the Foundation School Program for a school district is the
total sum of:
(1) the sum of the tier one allotments and other
funding as follows:
(A) the basic allotment under Subchapter B;
(B) [and] the student-based [special] allotments
under Subchapter C; and
(C) the additional funding under Subchapter D;
and
(2) [, computed in accordance with this chapter,
constitute the tier one allotments. The sum of the tier one
allotments and] the tier two allotment [guaranteed yield
allotments] under Subchapter E.
(b) The sum of the Foundation School Program maintenance and
operations costs for all accredited school districts in this state
constitutes [F, computed in accordance with this chapter,
constitute] the total maintenance and operations cost of the
Foundation School Program.
(c) [(b)] The program shall be financed by:
(1) state available school funds distributed in
accordance with the law [ad valorem tax revenue generated by an
equalized uniform school district effort];
(2) ad valorem tax revenue generated by local school
district effort [in excess of the equalized uniform school district
effort]; and
(3) [state available school funds distributed in
accordance with law; and
[(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
Sec. 48.252 [42.2511]. SCHOOL DISTRICT ENTITLEMENT FOR
CERTAIN STUDENTS. (a) This section applies only to:
(1) a school district and an open-enrollment charter
school that enter into a contract to operate a district campus as
provided by Section 11.174; and
(2) a charter granted by a school district for a
program operated by an entity that has entered into a contract under
Section 11.174, provided that the district does not appoint a
majority of the governing body of the charter holder.
(b) Notwithstanding any other provision of this chapter or
Chapter 49 [41], a school district subject to this section is
entitled to receive for each student in average daily attendance at
the campus described by Subsection (a) an amount equivalent to the
difference, if the difference results in increased funding,
between:
(1) the amount described by Section 12.106; and
(2) the amount to which the district would be entitled
under this chapter.
(c) The commissioner shall adopt rules as necessary to
administer this section.
Sec. 48.253 [42.2514]. ADDITIONAL STATE AID FOR TAX
INCREMENT FINANCING PAYMENTS. (a) For each school year, a school
district[, including a school district that is otherwise ineligible
for state aid under this chapter,] is entitled to state aid in an
amount equal to the amount the district is required to pay into the
tax increment fund for a reinvestment zone under Section
311.013(n), Tax Code.
(b) A school district shall provide to the agency any
agreements, amendments to agreements, or other information
required by the agency to implement this section.
Sec. 48.254 [42.2515]. ADDITIONAL STATE AID FOR AD VALOREM
TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. [(a)] For each
school year, a school district, including a school district that is
otherwise ineligible for state aid under this chapter, is entitled
to state aid in an amount equal to the amount of all tax credits
credited against ad valorem taxes of the district in that year under
former Subchapter D, Chapter 313, Tax Code.
[(b) The commissioner may adopt rules to implement and
administer this section.]
Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
In this title, "state compression percentage" means the percentage
of the rate of $1.00 per $100 valuation of taxable property at which
a school district must levy a [district's adopted] maintenance and
operations tax to receive the full amount of the tier one allotment
to which the district is entitled under this chapter.
(b) The [tax rate for the 2005 tax year that serves as the
basis for state funding. If the] state compression percentage is:
(1) 93 percent; or
(2) a lower percentage set [not established] by
appropriation for a school year [, the commissioner shall determine
the state compression percentage for each school year based on the
percentage by which a district is able to reduce the district's
maintenance and operations tax rate for that year, as compared to
the district's adopted maintenance and operations tax rate for the
2005 tax year, as a result of state funds appropriated for that year
from the property tax relief fund established under Section
403.109, Government Code, or from another funding source available
for school district property tax relief.
[(g) The commissioner may adopt rules necessary to
implement this section.
[(h) A determination by the commissioner under this section
is final and may not be appealed].
Sec. 48.256 [42.252]. LOCAL SHARE OF PROGRAM COST (TIER
ONE). (a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is the school district's adopted tier one maintenance
and operations [a] tax rate, as described by Section 45.0032(a)
[which] for each hundred dollars of valuation [is an effective tax
rate of the amount equal to the product of the state compression
percentage, as determined under Section 42.2516, multiplied by the
lesser of:
[(1) $1.50; or
[(2) the maintenance and operations tax rate adopted
by the district for the 2005 tax year]; and
"DPV" is the taxable value of property in the school district
for the current [preceding] tax year determined under Subchapter M,
Chapter 403, Government Code.
[(a-1) Notwithstanding Subsection (a), for a school
district that adopted a maintenance and operations tax rate for the
2005 tax year below the maximum rate permitted by law for that year,
the district's tax rate ("TR") includes the tax effort included in
calculating the district's compressed tax rate under Section
42.101(a-1).]
(b) The commissioner shall adjust the values reported by [in
the official report of] the comptroller [as required by Section
5.09(a), Tax Code,] to reflect reductions in taxable value of
property resulting from natural or economic disaster [after January
1] in the year in which the valuations are determined. The decision
of the commissioner is final. An adjustment does not affect the
local fund assignment of any other school district.
(c) Appeals of district values shall be held pursuant to
Section 403.303, Government Code.
(d) This subsection applies to a school district in which
the board of trustees entered into a written agreement with a
property owner under Section 313.027, Tax Code, for the
implementation of a limitation on appraised value under Subchapter
B or C, Chapter 313, Tax Code. For purposes of determining "DPV"
under Subsection (a) for a school district to which this subsection
applies, the commissioner shall exclude a portion of the market
value of property not otherwise fully taxable by the district under
Subchapter B or C, Chapter 313, Tax Code, before the expiration of
the subchapter. The comptroller shall provide information to the
agency necessary for this subsection. A revenue protection payment
required as part of an agreement for a limitation on appraised value
shall be based on the district's taxable value of property for the
preceding tax year.
(e) Subsection (d) does not apply to property that was the
subject of an application under Subchapter B or C, Chapter 313, Tax
Code, made after May 1, 2009, that the comptroller recommended
should be disapproved. [A school district must raise its total
local share of the Foundation School Program to be eligible to
receive foundation school fund payments.]
SECTION 1.041. Subchapter F, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.257 to read as
follows:
Sec. 48.257. LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT.
(a) Subject to Subsection (b), if a school district's tier one
local share under Section 48.256 exceeds the district's entitlement
under Section 48.266(a)(1) less the district's distribution from
the state available school fund, the district must reduce the
district's tier one revenue level in accordance with Chapter 49 to a
level not to exceed the district's entitlement under Section
48.266(a)(1) less the district's distribution from the state
available school fund.
(b) This subsection applies only to a school district to
which Subsection (a) applies. If a district's maintenance and
operations tax collections from the tax rate described by Section
45.0032(a) for the current tax year minus the required reduction in
a district's tier one revenue level under Subsection (a) results in
an amount that is less than the amount of the district's entitlement
under Section 48.266(a)(1) less the district's distribution from
the state available school fund, the agency shall adjust the amount
of the reduction required in the district's tier one revenue level
under Subsection (a) up to the amount of local funds necessary for
the district's entitlement under Section 48.266(a)(1) less the
district's distribution from the state available school fund.
(c) For purposes of Subsection (a), state aid to which a
district is entitled under this chapter that is not described by
Section 48.266(a)(1), (2), or (3) may offset the amount by which a
district must reduce the district's tier one revenue level under
Subsection (a). Any amount of state aid used as an offset under this
subsection shall reduce the amount of state aid to which the
district is entitled.
(d) Except as provided by Subsection (e), a school district
is entitled to retain the total amount of the district's tier two
local share described by Section 48.266(a)(5)(A).
(e) In any school year for which the amount of state funds
appropriated specifically excludes the amount necessary to provide
the dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort under Section
48.202(a-1)(1), a district may only retain the amount of the
district's tier two local share described by Section
48.266(a)(5)(A) equal to the amount of revenue that would be
generated based on the amount appropriated for the dollar amount
guaranteed level of state and local funds.
(f) If the amount of a school district's tier two local
share described by Section 48.266(a)(5)(B) to which a district is
entitled exceeds the amount described by Section 48.202(a-1)(2),
the district must reduce the district's revenue in accordance with
Chapter 49 to a level not to exceed the amount described by Section
48.202 (a-1)(2).
(g) For a district to which Section 45.003(f) applies,
revenue generated from any cents of maintenance and operations tax
effort that exceeds the maximum rate permitted under Section
45.003(d) is subject to the revenue limit established under
Subsection (f).
SECTION 1.042. Sections 42.2521, 42.2522, 42.2523,
42.2524, 42.2525, 42.2526, 42.2527, 42.2528, 42.253, 42.2531,
42.2532, 42.254, 42.255, 42.257, 42.258, 42.259, 42.2591, and
42.260, Education Code, are transferred to Subchapter F, Chapter
48, Education Code, as added by this Act, redesignated as Sections
48.258, 48.259, 48.260, 48.261, 48.262, 48.263, 48.264, 48.265,
48.266, 48.267, 48.268, 48.269, 48.270, 48.271, 48.272, 48.273,
48.274, and 48.275, Education Code, and amended to read as follows:
Sec. 48.258 [42.2521]. ADJUSTMENT FOR RAPID DECLINE IN
TAXABLE VALUE OF PROPERTY. (a) For purposes of Chapters [41 and]
46 and 49 and this chapter, and to the extent money specifically
authorized to be used under this section is available, the
commissioner shall adjust the taxable value of property in a school
district that, due to factors beyond the control of the board of
trustees, experiences a rapid decline in the tax base used in
calculating taxable values in excess of four percent of the tax base
used in the preceding year.
(b) To the extent that a sufficient amount of money is not
available to fund all adjustments under this section, the
commissioner shall reduce adjustments in the manner provided by
Section 48.266(f) [42.253(h)] so that the total amount of
adjustments equals the amount of money available to fund the
adjustments.
(c) A decision of the commissioner under this section is
final and may not be appealed.
Sec. 48.259 [42.2522]. ADJUSTMENT FOR OPTIONAL HOMESTEAD
EXEMPTION. (a) In any school year, the commissioner may not
provide funding under this chapter or Chapter 46 based on a school
district's taxable value of property computed in accordance with
Section 403.302(d)(2), Government Code, unless:
(1) funds are specifically appropriated for purposes
of this section; or
(2) the commissioner determines that the total amount
of state funds appropriated for purposes of the Foundation School
Program for the school year exceeds the amount of state funds
distributed to school districts in accordance with Section 48.266
[42.253] based on the taxable values of property in school
districts computed in accordance with Section 403.302(d),
Government Code, without any deduction for residence homestead
exemptions granted under Section 11.13(n), Tax Code.
(b) In making a determination under Subsection (a)(2), the
commissioner shall:
(1) notwithstanding Section 48.266(b) [42.253(b)],
reduce the entitlement under this chapter of a school district
whose final taxable value of property is higher than the estimate
under Section 48.269 [42.254] and make payments to school districts
accordingly; and
(2) give priority to school districts that, due to
factors beyond the control of the board of trustees, experience a
rapid decline in the tax base used in calculating taxable values in
excess of four percent of the tax base used in the preceding year.
(c) In the first year of a state fiscal biennium, before
providing funding as provided by Subsection (a)(2), the
commissioner shall ensure that sufficient appropriated funds for
purposes of the Foundation School Program are available for the
second year of the biennium, including funds to be used for purposes
of Section 48.258 [42.2521].
(d) If the commissioner determines that the amount of funds
available under Subsection (a)(1) or (2) does not at least equal the
total amount of state funding to which districts would be entitled
if state funding under this chapter were based on the taxable values
of property in school districts computed in accordance with Section
403.302(d)(2), Government Code, the commissioner may, to the extent
necessary, provide state funding based on a uniform lesser fraction
of the deduction under Section 403.302(d)(2), Government Code.
(e) The commissioner shall notify school districts as soon
as practicable as to the availability of funds under this section.
For purposes of computing a voter-approval [rollback] tax rate
under Section 26.08, Tax Code, a district shall adjust the
district's tax rate limit to reflect assistance received under this
section.
Sec. 48.260 [42.2523]. ADJUSTMENT FOR PROPERTY VALUE
AFFECTED BY STATE OF DISASTER. (a) For purposes of Chapters [41
and] 46 and 49 and this chapter, the commissioner shall adjust the
taxable value of property of a school district all or part of which
is located in an area declared a disaster area by the governor under
Chapter 418, Government Code, as necessary to ensure that the
district receives funding based as soon as possible on property
values as affected by the disaster.
(b) The commissioner may fund adjustments under this
section using funds specifically appropriated for the purpose or
other funds available to the commissioner for that purpose.
(c) [(d)] A decision of the commissioner under this section
is final and may not be appealed.
Sec. 48.261 [42.2524]. REIMBURSEMENT FOR DISASTER
REMEDIATION COSTS. (a) This section applies only to a school
district all or part of which is located in an area declared a
disaster area by the governor under Chapter 418, Government Code,
and that incurs disaster remediation costs as a result of the
disaster.
(b) During the two-year period following the date of the
governor's initial proclamation or executive order declaring a
state of disaster, a district may apply to the commissioner for
reimbursement of disaster remediation costs that the district pays
during that period and does not anticipate recovering through
insurance proceeds, federal disaster relief payments, or another
similar source of reimbursement.
(c) The commissioner may provide reimbursement under this
section only if funds are available for that purpose from [as
follows]:
(1) [reimbursement for a school district not required
to take action under Chapter 41 may be provided from:
[(A)] amounts appropriated for that purpose,
including amounts appropriated for school [those] districts for
that purpose to the disaster contingency fund established under
Section 418.073, Government Code; or
(2) [(B)] Foundation School Program funds available
for that purpose, based on a determination by the commissioner that
the amount appropriated for the Foundation School Program,
including the facilities component as provided by Chapter 46,
exceeds the amount to which districts are entitled under this
chapter and Chapter 46[; and
[(2) reimbursement for a school district required to
take action under Chapter 41 may be provided from funds described by
Subdivision (1)(B) if funds remain available after fully
reimbursing each school district described by Subdivision (1) for
its disaster remediation costs].
(d) [If the amount of money available for purposes of
reimbursing school districts not required to take action under
Chapter 41 is not sufficient to fully reimburse each district's
disaster remediation costs, the commissioner shall reduce the
amount of assistance provided to each of those districts
proportionately. If the amount of money available for purposes of
reimbursing school districts required to take action under Chapter
41 is not sufficient to fully reimburse each district's disaster
remediation costs, the commissioner shall reduce the amount of
assistance provided to each of those districts proportionately.
[(e)] A district seeking reimbursement under this section
must provide the commissioner with adequate documentation of the
costs for which the district seeks reimbursement.
(e) [(f) A district required to take action under Chapter
41:
[(1) may, at its discretion, receive assistance
provided under this section either as a payment of state aid under
this chapter or as a reduction in the total amount required to be
paid by the district for attendance credits under Section 41.093;
and
[(2) may not obtain reimbursement under this section
for the payment of any disaster remediation costs that resulted in a
reduction under Section 41.0931 of the district's cost of
attendance credits.
[(h)] The commissioner shall adopt rules necessary to
implement this section, including rules:
(1) defining "disaster remediation costs" for
purposes of this section, which must include the cost to repair or
replace vehicles or computers damaged in the disaster; and
(2) specifying the type of documentation required
under Subsection (d) [(e)].
(f) [(i)] Notwithstanding any other provision of this
section, the commissioner may permit a district to use amounts
provided to a district under this section to pay the costs of
replacing a facility instead of repairing the facility. The
commissioner shall ensure that a district that elects to replace a
facility does not receive an amount under this section that exceeds
the lesser of:
(1) the amount that would be provided to the district
if the facility were repaired; or
(2) the amount necessary to replace the facility.
(g) [(j)] This section does not require the commissioner to
provide any requested reimbursement. A decision of the
commissioner regarding reimbursement is final and may not be
appealed.
Sec. 48.262 [42.2525]. ADJUSTMENTS FOR CERTAIN DISTRICTS
RECEIVING FEDERAL IMPACT AID. The commissioner is granted the
authority to ensure that school districts receiving federal impact
aid due to the presence of a military installation or significant
concentrations of military students do not receive more than an
eight percent reduction should the federal government reduce
appropriations to those schools.
Sec. 48.263 [42.2526]. ADJUSTMENT FOR DISTRICT OPERATING
PILOT PROGRAM. (a) This section applies only to a school district
operating a pilot program authorized by Section 28.0255.
(b) Beginning with the first school year that follows the
first school year in which students receive high school diplomas
under the pilot program authorized by Section 28.0255 and
continuing for every subsequent school year that the district
operates the pilot program, the commissioner shall provide funding
for the district's prekindergarten program under Section 29.153 on
a full-day basis for a number of prekindergarten students equal to
twice the number of students who received a high school diploma
under the pilot program authorized by Section 28.0255 during the
preceding school year.
(c) This section expires September 1, 2023.
Sec. 48.264 [42.2527]. ADJUSTMENT FOR CERTAIN DISTRICTS
WITH EARLY HIGH SCHOOL GRADUATION PROGRAMS. (a) As a pilot program
to enable the state to evaluate the benefit of providing additional
funding at the prekindergarten level for low-income students, the
commissioner shall provide prekindergarten funding in accordance
with this section to a school district located in a county that
borders the United Mexican States and the Gulf of Mexico.
(b) The commissioner shall provide funding for a school
district's prekindergarten program on a half-day basis for a number
of low-income prekindergarten students equal to twice the number of
students who received, as a result of participation in an early high
school graduation program operated by the district, a high school
diploma from the district during the preceding school year after
three years of secondary school attendance.
(c) The commissioner may adopt rules necessary to implement
this section.
(d) This section expires September 1, 2023.
Sec. 48.265 [42.2528]. EXCESS FUNDS FOR VIDEO SURVEILLANCE
OF SPECIAL EDUCATION SETTINGS. (a) Notwithstanding any other
provision of law, if the commissioner determines that the amount
appropriated for the purposes of the Foundation School Program
exceeds the amount to which school districts are entitled under
this chapter, the commissioner by rule shall establish a grant
program through which excess funds are awarded as grants for the
purchase of video equipment, or for the reimbursement of costs for
previously purchased video equipment, used for monitoring special
education classrooms or other special education settings required
under Section 29.022.
(b) In awarding grants under this section, the commissioner
shall give highest priority to districts with maintenance and
operations tax rates at the greatest rates permitted by law. The
commissioner shall also give priority to:
(1) districts with maintenance and operations tax
rates at least equal to the state maximum compressed tax rate, as
defined by Section 48.051(a) [42.101(a)], and lowest amounts of
maintenance and operations tax revenue per weighted student; and
(2) districts with debt service tax rates near or
equal to the greatest rates permitted by law.
(c) The commissioner may adopt rules to implement and
administer this section.
Sec. 48.266 [42.253]. DISTRIBUTION OF FOUNDATION SCHOOL
FUND. (a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B, [and] C, and D;
(2) the amount of money to which a school district is
entitled under Subchapter E [F];
(3) the amount of money allocated to the district from
the available school fund;
(4) the amount of each district's tier one local share
under Section 48.256 [42.252]; and
(5) the amount of each district's tier two local share
under Section 48.202 for:
(A) the district's maintenance and operations
tax effort described by Section 48.202(a-1)(1); and
(B) the district's maintenance and operations
tax effort described by Section 48.202(a-1)(2) [42.302].
(b) Except as provided by this subsection, the commissioner
shall base the determinations under Subsection (a) on the estimates
provided to the legislature under Section 48.269 [42.254], or, if
the General Appropriations Act provides estimates for that purpose,
on the estimates provided under that Act, for each school district
for each school year. The commissioner shall reduce the
entitlement of each district that has a final taxable value of
property for the second year of a state fiscal biennium that is
higher than the estimate under Section 48.269 [42.254] or the
General Appropriations Act, as applicable. A reduction under this
subsection may not reduce the district's entitlement below the
amount to which it is entitled at its actual taxable value of
property.
(c) Each school district is entitled to an amount equal to
the difference for that district between the sum of Subsections
(a)(1) and (a)(2) and the sum of Subsections (a)(3), (a)(4), and
(a)(5).
(d) The commissioner shall approve warrants to each school
district equaling the amount of its entitlement except as provided
by this section. Warrants for all money expended according to this
chapter shall be approved and transmitted to treasurers or
depositories of school districts in the same manner that warrants
for state payments are transmitted. The total amount of the
warrants issued under this section may not exceed the total amount
appropriated for Foundation School Program purposes for that fiscal
year.
(e) [(g)] If a school district demonstrates to the
satisfaction of the commissioner that the estimate of the
district's tax rate, student enrollment, or taxable value of
property used in determining the amount of state funds to which the
district is entitled are so inaccurate as to result in undue
financial hardship to the district, the commissioner may adjust
funding to that district in that school year to the extent that
funds are available for that year.
(f) [(h)] If the amount appropriated for the Foundation
School Program for the second year of a state fiscal biennium is
less than the amount to which school districts and open-enrollment
charter schools are entitled for that year, the commissioner shall
certify the amount of the difference to the Legislative Budget
Board not later than January 1 of the second year of the state
fiscal biennium. The Legislative Budget Board shall propose to the
legislature that the certified amount be transferred to the
foundation school fund from the economic stabilization fund and
appropriated for the purpose of increases in allocations under this
subsection. If the legislature fails during the regular session to
enact the proposed transfer and appropriation and there are not
funds available under Subsection (h) [(j)], the commissioner shall
adjust the total amounts due to each school district and
open-enrollment charter school under this chapter and the total
amounts necessary for each school district to comply with the
requirements of Chapter 49 [41] by an amount determined by applying
to each district and school the same percentage adjustment to the
total amount of state and local revenue due to the district or
school under this chapter and Chapter 49 [41] so that the total
amount of the adjustment to all districts and schools results in an
amount equal to the total adjustment necessary. The following
fiscal year:
(1) a district's or school's entitlement under this
section is increased by an amount equal to the adjustment made
under this subsection; and
(2) the amount necessary for a district to comply with
the requirements of Chapter 49 [41] is reduced by an amount
necessary to ensure a district's full recovery of the adjustment
made under this subsection.
(g) [(i)] Not later than March 1 each year, the commissioner
shall determine the actual amount of state funds to which each
school district is entitled under the allocation formulas in this
chapter for the current school year and shall compare that amount
with the amount of the warrants issued to each district for that
year. If the amount of the warrants differs from the amount to
which a district is entitled because of variations in the
district's tax rate, student enrollment, or taxable value of
property, the commissioner shall adjust the district's entitlement
for the next fiscal year accordingly.
(h) [(j)] The legislature may appropriate funds necessary
for increases under Subsection (g) [(i)] from funds that the
comptroller, at any time during the fiscal year, finds are
available.
(i) [(k)] The commissioner shall compute for each school
district the total amount by which the district's allocation of
state funds is increased or reduced under Subsection (g) [(i)] and
shall certify that amount to the district.
Sec. 48.267 [42.2531]. ADJUSTMENT BY COMMISSIONER. (a)
The commissioner may make adjustments to amounts due to a school
district under this chapter or Chapter 46, or to amounts necessary
for a district to comply with the requirements of Chapter 49 [41],
as provided by this section.
(b) A school district that has a major taxpayer, as
determined by the commissioner, that because of a protest of the
valuation of the taxpayer's property fails to pay all or a portion
of the ad valorem taxes due to the district may apply to the
commissioner to have the district's taxable value of property or ad
valorem tax collections adjusted for purposes of this chapter or
Chapter [41 or] 46 or 49. The commissioner may make the adjustment
only to the extent the commissioner determines that making the
adjustment will not:
(1) in the fiscal year in which the adjustment is made,
cause the amount to which school districts are entitled under this
chapter to exceed the amount appropriated for purposes of the
Foundation School Program for that year; and
(2) if the adjustment is made in the first year of a
state fiscal biennium, cause the amount to which school districts
are entitled under this chapter for the second year of the biennium
to exceed the amount appropriated for purposes of the Foundation
School Program for that year.
(c) The commissioner shall recover the benefit of any
adjustment made under this section by making offsetting adjustments
in the school district's taxable value of property or ad valorem tax
collections for purposes of this chapter or Chapter [41 or] 46 or 49
on a final determination of the taxable value of property that was
the basis of the original adjustment, or in the second school year
following the year in which the adjustment is made, whichever is
earlier.
(d) This section does not require the commissioner to make
any requested adjustment. A determination by the commissioner
under this section is final and may not be appealed.
Sec. 48.268 [42.2532]. ADJUSTMENT FOR RESOLUTION OF
DISPUTE OR ERROR RESULTING IN TAXATION OF SAME PROPERTY BY MULTIPLE
SCHOOL DISTRICTS. The commissioner shall adjust the amounts due to
a school district under this chapter and Chapter 46 as necessary to
account for the resolution of a dispute or error involving the
district and another district by an agreement between the districts
entered into under Section 31.112(c), Tax Code, or by a final order
of the supreme court entered under Section 72.010, Local Government
Code.
Sec. 48.269 [42.254]. ESTIMATES REQUIRED. (a) Not later
than October 1 of each even-numbered year:
(1) the agency shall submit to the legislature an
estimate of the tax rate and student enrollment of each school
district for the following biennium; and
(2) the comptroller shall submit to the legislature an
estimate of the total taxable value of all property in the state as
determined under Subchapter M, Chapter 403, Government Code, for
the following biennium.
(b) The agency and the comptroller shall update the
information provided to the legislature under Subsection (a) not
later than March 1 of each odd-numbered year.
Sec. 48.270 [42.255]. FALSIFICATION OF RECORDS; REPORT.
When, in the opinion of the agency's director of school audits,
audits or reviews of accounting, enrollment, or other records of a
school district reveal deliberate falsification of the records, or
violation of the provisions of this chapter, through which the
district's share of state funds allocated under the authority of
this chapter would be, or has been, illegally increased, the
director shall promptly and fully report the fact to the State Board
of Education, the state auditor, and the appropriate county
attorney, district attorney, or criminal district attorney.
Sec. 48.271 [42.257]. EFFECT OF APPRAISAL APPEAL. (a) If
the final determination of an appeal under Chapter 42, Tax Code,
results in a reduction in the taxable value of property that exceeds
five percent of the total taxable value of property in the school
district for the same tax year determined under Subchapter M,
Chapter 403, Government Code, the commissioner shall request the
comptroller to adjust its taxable property value findings for that
year consistent with the final determination of the appraisal
appeal.
(b) If the district would have received a greater amount
from the foundation school fund for the applicable school year
using the adjusted value, the commissioner shall add the difference
to subsequent distributions to the district from the foundation
school fund. An adjustment does not affect the local fund
assignment of any other district.
(c) In addition to the funding provided under Subsection
(b), a school district is entitled to reimbursement for the amount
of interest included in a refund made by the district under Section
42.43, Tax Code, in the state fiscal year ending August 31, 2018, or
August 31, 2019. This subsection expires September 1, 2021.
Sec. 48.272 [42.258]. RECOVERY OF OVERALLOCATED FUNDS.
(a) If a school district has received an overallocation of state
funds, the agency shall, by withholding from subsequent allocations
of state funds for the current or subsequent school year or by
requesting and obtaining a refund, recover from the district an
amount equal to the overallocation.
(b) [(a-1)] Notwithstanding Subsection (a), the agency may
recover an overallocation of state funds over a period not to exceed
the subsequent five school years if the commissioner determines
that the overallocation was the result of exceptional circumstances
reasonably caused by statutory changes to Chapter [41 or] 46 or 49
or this chapter and related reporting requirements.
(c) [(b)] If a district fails to comply with a request for a
refund under Subsection (a), the agency shall certify to the
comptroller that the amount constitutes a debt for purposes of
Section 403.055, Government Code. The agency shall provide to the
comptroller the amount of the overallocation and any other
information required by the comptroller. The comptroller may
certify the amount of the debt to the attorney general for
collection.
(d) [(c)] Any amounts recovered under this section shall be
deposited in the foundation school fund.
(e) Subject to Subsection (f), the agency may review a
school district as necessary to determine if the district qualifies
for each allotment received by the district under this chapter. If
the agency determines that a school district received an allotment
to which the district was not entitled, the agency may establish a
corrective action plan or withhold the applicable amount of funding
from the district.
(f) The agency may not review school district expenditures
that occurred seven or more years before the review.
Sec. 48.273 [42.259]. FOUNDATION SCHOOL FUND TRANSFERS.
(a) In this section:
(1) "Category 1 school district" means a school
district having a wealth per student of less than one-half of the
statewide average wealth per student.
(2) "Category 2 school district" means a school
district having a wealth per student of at least one-half of the
statewide average wealth per student but not more than the
statewide average wealth per student.
(3) "Category 3 school district" means a school
district having a wealth per student of more than the statewide
average wealth per student.
(4) "Wealth per student" means the taxable property
values reported by the comptroller to the commissioner under
Section 48.256 [42.252] divided by the number of students in
average daily attendance.
(b) Payments from the foundation school fund to each
category 1 school district shall be made as follows:
(1) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 80 percent of the yearly entitlement of the
district shall be paid in eight equal installments to be made on or
before the 25th day of October, November, December, January, March,
May, June, and July; and
(3) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of February.
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of August.
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of August.
(e) The amount of any installment required by this section
may be modified to provide a school district with the proper amount
to which the district may be entitled by law and to correct errors
in the allocation or distribution of funds. If an installment under
this section is required to be equal to other installments, the
amount of other installments may be adjusted to provide for that
equality. A payment under this section is not invalid because it is
not equal to other installments.
(f) Previously unpaid additional funds from prior fiscal
years owed to a district shall be paid to the district together with
the September payment of the current fiscal year entitlement.
(g) The commissioner shall make all annual Foundation
School Program payments under this section for purposes described
by Sections 45.252(a)(1) and (2) before the deadline established
under Section 45.263(b) for payment of debt service on
bonds. Notwithstanding any other provision of this section, the
commissioner may make Foundation School Program payments under this
section after the deadline established under Section 45.263(b) only
if the commissioner has not received notice under Section 45.258
concerning a district's failure or inability to pay matured
principal or interest on bonds.
Sec. 48.274 [42.2591]. FOUNDATION SCHOOL FUND TRANSFERS
TO CERTAIN CHARTER SCHOOLS. (a) On the request of an
open-enrollment charter school, the commissioner shall compare the
student enrollment of the open-enrollment charter school for the
current school year to the student enrollment of the school during
the preceding school year. If the number of students enrolled at
the open-enrollment charter school for the current school year has
increased by 10 percent or more from the number of students enrolled
during the preceding school year, the open-enrollment charter
school may request that payments from the foundation school fund to
the school for the following school year and each subsequent school
year, subject to Subsection (b), be made according to the schedule
provided under Subsection (c).
(b) An open-enrollment charter school that qualifies to
receive funding as provided by this section is entitled to receive
funding in that manner for three school years. On the expiration
of that period, the commissioner shall determine the eligibility of
the open-enrollment charter school to continue receiving payments
from the foundation school fund under this section for an
additional three school years. Subsequently, the open-enrollment
charter school must reestablish eligibility in the manner provided
by this subsection every three school years.
(c) Payments from the foundation school fund to an
open-enrollment charter school under this section shall be made as
follows:
(1) 22 percent of the yearly entitlement of the school
shall be paid in an installment to be made on or before the 25th day
of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the school
shall be paid in an installment to be made on or before the 25th day
of October;
(3) 9.5 percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of November;
(4) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of December;
(5) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of January;
(6) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of February;
(7) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of March;
(8) 7.5 percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of April;
(9) five percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of May;
(10) seven percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of June;
(11) seven percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of July; and
(12) eight percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of August.
(d) The amount of any installment required by this section
may be modified to provide an open-enrollment charter school with
the proper amount to which the school may be entitled by law and to
correct errors in the allocation or distribution of funds.
(e) Previously unpaid additional funds from prior fiscal
years owed to an open-enrollment charter school shall be paid to the
school together with the September payment of the current fiscal
year entitlement.
Sec. 48.275 [42.260]. USE OF CERTAIN FUNDS. (a) In this
section, "participating charter school" means an open-enrollment
charter school that participates in the uniform group coverage
program established under Chapter 1579, Insurance Code.
(b) The amount of additional funds to which each school
district or participating charter school is entitled due to the
increases in formula funding made by H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001, and any subsequent legislation
amending the provisions amended by that Act that increase formula
funding under Chapter 49 [41] and this chapter to school districts
and charter schools is available for purposes of Subsection (c).
(c) Notwithstanding any other provision of this code, a
school district or participating charter school may use the sum of
the following amounts of funds only to pay contributions under a
group health coverage plan for district or school employees:
(1) the amount determined by multiplying the amount of
$900 or the amount specified in the General Appropriations Act for
that year for purposes of the state contribution under Section
1579.251, Insurance Code, by the number of district or school
employees who participate in a group health coverage plan provided
by or through the district or school; and
(2) the difference between the amount necessary for
the district or school to comply with Section 1581.052, Insurance
Code, for the school year and the amount the district or school is
required to use to provide health coverage under Section 1581.051,
Insurance Code, for that year.
(d) A determination by the commissioner under this section
is final and may not be appealed.
[(e) The commissioner may adopt rules to implement this
section.]
SECTION 1.043. Subchapter F, Chapter 48, Education Code, as
added by this Act, is amended by adding Sections 48.277, 48.278, and
48.279 to read as follows:
Sec. 48.277. FORMULA TRANSITION GRANT. (a) A school
district or open-enrollment charter school is entitled to receive
an annual allotment for each student in average daily attendance in
the amount equal to the difference, if the difference is greater
than zero, that results from subtracting the total maintenance and
operations revenue per student in average daily attendance for the
current school year from the lesser of:
(1) 103 percent of the district's or school's total
maintenance and operations revenue per student in average daily
attendance for the 2019-2020 school year that the district or
school would have received under former Chapters 41 and 42, as those
chapters existed on January 1, 2019; or
(2) 128 percent of the statewide average amount of
maintenance and operations revenue per student in average daily
attendance that would have been provided for the 2019-2020 school
year under former Chapters 41 and 42, as those chapters existed on
January 1, 2019.
(b) For purposes of calculating maintenance and operations
revenue under Subsection (a), the commissioner shall:
(1) for purposes of Subsections (a)(1) and (2), use
the following applicable school year:
(A) in a school year ending in an even-numbered
year, the 2019-2020 school year; and
(B) in a school year ending in an odd-numbered
year, the 2019-2020 or 2020-2021 school year, whichever is greater;
(2) include all state and local funding, except for
any funding resulting from:
(A) reimbursement for disaster remediation costs
under former Sections 41.0931 and 42.2524;
(B) an adjustment for rapid decline in taxable
value of property under former Section 42.2521; and
(C) an adjustment for property value affected by
a state of disaster under former Section 42.2523;
(3) adjust the calculation to reflect a reduction in
tax effort by a school district; and
(4) if a school district or open-enrollment charter
school receives a waiver relating to eligibility requirements for
the national free or reduced-price lunch program under 42 U.S.C.
Section 1751 et seq., use the numbers of educationally
disadvantaged students on which the district's or school's
entitlement to compensatory education funds was based for the
school year before the school year in which the district or school
received the waiver, adjusted for estimated enrollment growth.
(c) A decision by the commissioner under this section is
final and may not be appealed.
(d) A school district or open-enrollment charter school is
not entitled to an allotment under Subsection (a) beginning with
the 2024-2025 school year.
(d-1) Subject to Subsection (d-2), a school district or
open-enrollment charter school is entitled to receive an annual
allotment for each student in average daily attendance in the
amount equal to the difference, if the difference is greater than
zero, that results from subtracting the total maintenance and
operations revenue per student in average daily attendance for the
current school year from the total maintenance and operations
revenue per student in average daily attendance that would have
been available to the district or school under former Chapters 41
and 42, as those chapters existed on January 1, 2019. For purposes
of calculating a district's maintenance and operations revenue
under this subsection, the commissioner shall:
(1) apply Subsection (b); and
(2) in calculating a district's maintenance and
operations revenue under former Chapters 41 and 42, as those
chapters existed on January 1, 2019, exclude any additional revenue
the district would have received under former Sections 41.002(e)
through (g), as those sections existed on January 1, 2019.
(d-2) A school district or open-enrollment charter school
may only receive an allotment under Subsection (a) or (d-1),
whichever is greater, but not both.
(d-3) Subsections (d-1) and (d-2) and this subsection
expire September 1, 2021.
(e) This section expires September 1, 2025.
Sec. 48.278. EQUALIZED WEALTH TRANSITION GRANT. (a)
Subject to Subsection (b), a school district is entitled to receive
an annual allotment in an amount equal to the amount of additional
revenue a school district received for the 2018-2019 school year
under former Sections 41.002(e) through (g), as those sections
existed on January 1, 2019.
(b) For purposes of calculating a district's allotment
under Subsection (a), the commissioner shall reduce the amount to
which a district is entitled under Subsection (a) by:
(1) for the 2020-2021 school year, 20 percent;
(2) for the 2021-2022 school year, 40 percent;
(3) for the 2022-2023 school year, 60 percent; and
(4) for the 2023-2024 school year, 80 percent.
(c) This section expires September 1, 2024.
Sec. 48.279. MAINTENANCE OF STATE FINANCIAL SUPPORT FOR
SPECIAL EDUCATION. (a) Funds appropriated for purposes of this
section or transferred in accordance with this section are state
funds for purposes of compliance with the requirements regarding
maintenance of state financial support for special education under
20 U.S.C. Section 1412(a)(18). The commissioner shall identify the
amount of funding described by this subsection and separate that
amount from other funding provided under this chapter.
(b) If the commissioner determines that the total amount of
funding for special education for a school year that ends during the
first state fiscal year of a state fiscal biennium is less than the
amount required to comply with requirements regarding maintenance
of state financial support under 20 U.S.C. Section 1412(a)(18), the
commissioner shall use funds appropriated for the Foundation School
Program for the second state fiscal year of that biennium to
increase funding for special education for the first state fiscal
year of that biennium in an amount necessary to ensure compliance
with that provision.
(c) If the commissioner determines that the total amount of
funding for special education for a school year that ends during the
second state fiscal year of a state fiscal biennium is less than the
amount required to comply with requirements regarding maintenance
of state financial support under 20 U.S.C. Section 1412(a)(18), the
commissioner shall submit to the legislature an estimate of the
amount of funding needed to comply with that provision for that
state fiscal year.
(d) If federal funds are withheld for a school year due to
noncompliance with requirements regarding maintenance of state
financial support under 20 U.S.C. Section 1412(a)(18), the
commissioner shall use for that school year an amount of funds
described by Subsection (a) equal to the amount of withheld funds in
the same manner and for the same purposes as the withheld funds
would have been provided.
(e) After the commissioner has replaced any withheld
federal funds as provided by Subsection (d), the commissioner shall
distribute the remaining amount, if any, of funds described by
Subsection (a) to proportionately increase funding for the special
education allotment under Section 48.102.
(f) In complying with Subsection (d), the commissioner may
implement any program necessary to ensure the use of funds in
accordance with that subsection.
SECTION 1.044. Chapter 48, Education Code, as added by this
Act, is amended by adding Subchapter G, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER G. MISCELLANEOUS PROVISIONS
SECTION 1.045. Section 42.4101, Education Code, is
transferred to Subchapter G, Chapter 48, Education Code, as added
by this Act, redesignated as Section 48.301, Education Code, and
amended to read as follows:
Sec. 48.301 [42.4101]. ADDITIONAL ASSISTANCE FOR
DISTRICTS WITH STUDENTS USING PUBLIC EDUCATION GRANTS. (a) A
district is entitled to additional assistance under this section as
provided by Section 29.203(c).
(b) The amount of additional assistance under this section
is computed by subtracting the number of students residing in the
district and using public education grants to attend school in
another district for the year in which the assistance is granted
from the number of students using public education grants to attend
school in the district for that year and multiplying the difference
by $266.
[(c) If a district to which this section applies is entitled
to the maximum amount of assistance under Section 42.406, the
maximum is increased by the amount of additional assistance to
which the district is entitled under this section.]
SECTION 1.046. Subchapter G, Chapter 48, Education Code, as
added by this Act, is amended by adding Section 48.302 to read as
follows:
Sec. 48.302. SUBSIDY FOR HIGH SCHOOL EQUIVALENCY
EXAMINATION FOR CERTAIN INDIVIDUALS. (a) In this section,
"commission" means the Texas Workforce Commission.
(b) The agency shall enter into a memorandum of
understanding with the commission for the agency to transfer to the
commission funds specifically appropriated to the agency for the
commission to provide to an individual who is 21 years of age or
older a subsidy in an amount equal to the cost of taking one high
school equivalency examination administered under Section 7.111.
(c) The commission shall adopt rules to implement the
subsidy program described by Subsection (b), including rules
regarding eligibility requirements.
SECTION 1.047. Subtitle I, Title 2, Education Code, is
amended by adding Chapter 49, and a heading is added to that chapter
to read as follows:
CHAPTER 49. OPTIONS FOR LOCAL REVENUE LEVELS IN EXCESS OF
ENTITLEMENT
SECTION 1.048. Chapter 49, Education Code, as added by this
Act, is amended by adding Subchapter A, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 1.049. Sections 41.001, 41.003, 41.0031, 41.004,
41.005, 41.006, 41.007, 41.008, 41.009, 41.010, 41.011, 41.012, and
41.013, Education Code, are transferred to Subchapter A, Chapter
49, Education Code, as added by this Act, redesignated as Sections
49.001, 49.002, 49.003, 49.004, 49.005, 49.006, 49.007, 49.008,
49.009, 49.010, 49.011, 49.012, and 49.013, Education Code, and
amended to read as follows:
Sec. 49.001 [41.001]. DEFINITIONS. In this chapter:
(1) "Local revenue [Equalized wealth] level in excess
of entitlement" means local revenue levels that exceed the levels
[the wealth per student] provided by Section 48.257 [41.002].
(2) ["Wealth per student" means the taxable value of
property, as determined under Subchapter M, Chapter 403, Government
Code, divided by the number of students in weighted average daily
attendance.
[(3)] "Weighted average daily attendance" has the
meaning assigned by Section 48.202 [42.302].
Sec. 49.002 [41.003]. OPTIONS TO REDUCE LOCAL REVENUE
[ACHIEVE EQUALIZED WEALTH] LEVEL. A district with a local revenue
level in excess of entitlement [wealth per student that exceeds the
equalized wealth level] may take any combination of the following
actions to reduce the district's revenue level [achieve the
equalized wealth level]:
(1) consolidation with another district as provided by
Subchapter B;
(2) detachment of territory as provided by Subchapter
C;
(3) purchase of average daily attendance credit as
provided by Subchapter D;
(4) education of nonresident students as provided by
Subchapter E; or
(5) tax base consolidation with another district as
provided by Subchapter F.
Sec. 49.003 [41.0031]. INCLUSION OF ATTENDANCE CREDIT
[CREDITS] AND NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.
In determining whether a school district has a local revenue
[wealth per student less than or equal to the equalized wealth]
level in excess of entitlement, the commissioner shall use:
(1) the district's final weighted average daily
attendance; and
(2) the amount [number] of attendance credit [credits]
a district purchases under Subchapter D or the number of
nonresident students a district educates under Subchapter E for a
school year.
Sec. 49.004 [41.004]. ANNUAL REVIEW OF LOCAL REVENUES
[PROPERTY WEALTH]. (a) Not later than July 15 of each year, using
the estimates [estimate] of enrollment and taxable property value
under Section 48.269 [42.254], the commissioner shall review the
local revenue level [wealth per student] of school districts in the
state and shall notify:
(1) each district with a local revenue level in excess
of entitlement [wealth per student exceeding the equalized wealth
level];
(2) each district to which the commissioner proposes
to annex property detached from a district notified under
Subdivision (1), if necessary, under Subchapter G; and
(3) each district to which the commissioner proposes
to consolidate a district notified under Subdivision (1), if
necessary, under Subchapter H.
(b) If, before the dates provided by this subsection, a
district notified under Subsection (a)(1) has not successfully
exercised one or more options under Section 49.002 [41.003] that
reduce the district's local revenue level [wealth per student] to a
level equal to or less than the [equalized wealth] level
established under Section 48.257, the commissioner shall order the
detachment of property from that district as provided by Subchapter
G. If that detachment will not reduce the district's local revenue
level [wealth per student] to a level equal to or less than the
[equalized wealth] level established under Section 48.257, the
commissioner may not detach property under Subchapter G but shall
order the consolidation of the district with one or more other
districts as provided by Subchapter H. An agreement under Section
49.002(1) [41.003(1)] or (2) must be executed not later than
September 1 immediately following the notice under Subsection (a).
An election for an option under Section 49.002(3) [41.003(3)], (4),
or (5) must be ordered before September 1 immediately following the
notice under Subsection (a).
(c) A district notified under Subsection (a) may not adopt a
tax rate for the tax year in which the district receives the notice
until the commissioner certifies that the district has reduced the
district's local revenue level in excess of entitlement to the
[achieved the equalized wealth] level established under Section
48.257.
(d) A detachment and annexation or consolidation under this
chapter:
(1) is effective for Foundation School Program funding
purposes for the school year that begins in the calendar year in
which the detachment and annexation or consolidation is agreed to
or ordered; and
(2) applies to the ad valorem taxation of property
beginning with the tax year in which the agreement or order is
effective.
Sec. 49.005 [41.005]. COMPTROLLER AND APPRAISAL DISTRICT
COOPERATION. The chief appraiser of each appraisal district and
the comptroller shall cooperate with the commissioner and school
districts in implementing this chapter.
Sec. 49.006 [41.006]. RULES. (a) The commissioner may
adopt rules necessary for the implementation of this chapter. The
rules may provide for the commissioner to make necessary
adjustments to the provisions of Chapter 48 [42], including
providing for the commissioner to make an adjustment in the funding
element established by Section 48.202 [42.302], at the earliest
date practicable, to the amount the commissioner believes, taking
into consideration options exercised by school districts under this
chapter and estimates of student enrollments, will match
appropriation levels.
(b) As necessary for the effective and efficient
administration of this chapter, the commissioner may modify
effective dates and time periods for actions described by this
chapter.
Sec. 49.007 [41.007]. COMMISSIONER TO APPROVE SUBSEQUENT
BOUNDARY CHANGES. A school district that is involved in an action
under this chapter that results in boundary changes to the district
or in the consolidation of tax bases is subject to consolidation,
detachment, or annexation under Chapter 13 only if the commissioner
certifies that the change under Chapter 13 will not result in a
district with a local revenue [wealth per student that exceeds the
equalized wealth] level in excess of entitlement.
Sec. 49.008 [41.008]. HOMESTEAD EXEMPTIONS. (a) The
governing board of a school district that results from
consolidation under this chapter, including a consolidated taxing
district under Subchapter F, for the tax year in which the
consolidation occurs may determine whether to adopt a homestead
exemption provided by Section 11.13, Tax Code, and may set the
amount of the exemption, if adopted, at any time before the school
district adopts a tax rate for that tax year. This section applies
only to an exemption that the governing board of a school district
is authorized to adopt or change in amount under Section 11.13, Tax
Code.
(b) This section prevails over any inconsistent provision
of Section 11.13, Tax Code, or other law.
Sec. 49.009 [41.009]. TAX ABATEMENTS. (a) A tax abatement
agreement executed by a school district that is involved in
consolidation or in detachment and annexation of territory under
this chapter is not affected and applies to the taxation of the
property covered by the agreement as if executed by the district
within which the property is included.
(b) The commissioner shall determine the local revenue
[wealth per student] of a school district under this chapter as if
any tax abatement agreement executed by a school district on or
after May 31, 1993, had not been executed.
Sec. 49.010 [41.010]. TAX INCREMENT OBLIGATIONS. The
payment of tax increments under Chapter 311, Tax Code, is not
affected by the consolidation of territory or tax bases or by
annexation under this chapter. In each tax year a school district
paying a tax increment from taxes on property over which the
district has assumed taxing power is entitled to retain the same
percentage of the tax increment from that property that the
district in which the property was located before the consolidation
or annexation could have retained for the respective tax year.
Sec. 49.011 [41.011]. CONTINGENCY. (a) If any of the
options described by Section 49.002 [41.003] as applied to a school
district are held invalid by a final decision of a court of
competent jurisdiction, a school district is entitled to exercise
any of the remaining valid options in accordance with a schedule
approved by the commissioner.
(b) If a final order of a court of competent jurisdiction
should hold each of the options provided by Section 49.002 [41.003]
invalid, the commissioner shall act under Subchapter G or H to
reduce the local revenue [achieve the equalized wealth] level in
excess of entitlement only after notice and hearing is afforded to
each school district affected by the order. The commissioner shall
adopt a plan that least disrupts the affected school districts. If
because the exigency to adopt a plan prevents the commissioner from
giving a reasonable time for notice and hearing, the commissioner
shall timely give notice to and hold a hearing for the affected
school districts, but in no event less than 30 days from time of
notice to the date of hearing.
(c) If a final order of a court of competent jurisdiction
should hold an option provided by Section 49.002 [41.003] invalid
and order a refund to a district of any amounts paid by a district
choosing that option, the amount shall be refunded but held in
reserve and not expended by the district until released by order of
the commissioner. The commissioner shall order the release
immediately on the commissioner's determination that, through one
of the means provided by law, the district has reduced the
district's local revenue level in excess of entitlement to the
[achieved the equalized wealth] level established under Section
48.257. The amount released shall be deducted from any state aid
payable to the district according to a schedule adopted by the
commissioner.
Sec. 49.012 [41.012]. DATE OF ELECTIONS. An election under
this chapter for voter approval of an agreement entered by the board
of trustees shall be held on a Tuesday or Saturday not more than 45
days after the date of the agreement. Section 41.001, Election
Code, does not apply to the election.
Sec. 49.013 [41.013]. PROCEDURE. (a) Except as provided
by Subchapter G, a decision of the commissioner under this chapter
is appealable under Section 7.057.
(b) Any order of the commissioner issued under this chapter
shall be given immediate effect and may not be stayed or enjoined
pending any appeal.
(c) Chapter 2001, Government Code, does not apply to a
decision of the commissioner under this chapter.
(d) On the request of the commissioner, the secretary of
state shall publish any rules adopted under this chapter in the
Texas Register and the Texas Administrative Code.
SECTION 1.050. Subchapter B, Chapter 41, Education Code, is
transferred to Chapter 49, Education Code, as added by this Act,
redesignated as Subchapter B, Chapter 49, Education Code, and
amended to read as follows:
SUBCHAPTER B. CONSOLIDATION BY AGREEMENT
Sec. 49.051 [41.031]. AGREEMENT. The governing boards of
any two or more school districts may consolidate the districts by
agreement in accordance with this subchapter to establish a
consolidated district with a local revenue level [wealth per
student] equal to or less than the [equalized wealth] level
established under Section 48.257. The agreement is not effective
unless the commissioner certifies that the consolidated district,
as a result of actions taken under this chapter, will have a local
revenue level [wealth per student] equal to or less than the
[equalized wealth] level established under Section 48.257.
Sec. 49.052 [41.032]. GOVERNING LAW. Except to the extent
modified by the terms of the agreement, the consolidated district
is governed by the applicable provisions of Subchapter D, Chapter
13, other than a provision requiring consolidating districts to be
contiguous. The agreement may not be inconsistent with the
requirements of this subchapter.
Sec. 49.053 [41.033]. GOVERNANCE PLAN. (a) The agreement
among the consolidating districts may include a governance plan
designed to preserve community-based and site-based decision
making within the consolidated district, including the delegation
of specific powers of the governing board of the district other than
the power to levy taxes, including a provision authorized by
Section 13.158(b).
(b) The governance plan may provide for a transitional board
of trustees during the first year after consolidation, but
beginning with the next year the board of trustees must be elected
from within the boundaries of the consolidated district. If the
consolidating districts elect trustees from single-member
districts, the consolidated district must adopt a plan to elect its
board of trustees from single-member districts.
Sec. 49.054 [41.034]. INCENTIVE AID. (a) For the first and
second school years after creation of a consolidated district under
this subchapter, the commissioner shall adjust allotments to the
consolidated district to the extent necessary to preserve the
effects of an adjustment under Section 48.052 [42.102, 42.103, or
42.105] to which either of the consolidating districts would have
been entitled but for the consolidation.
(b) Except as provided by Subsection (c), a district
receiving incentive aid payments under this section is not entitled
to incentive aid under Subchapter G, Chapter 13.
(c) Four or more districts that consolidate into one
district under this subchapter within a period of one year may elect
to receive incentive aid under this section or to receive incentive
aid for not more than five years under Subchapter G, Chapter 13.
Incentive aid under this subsection may not provide the
consolidated district with more revenue in state and local funds
than the district would receive at the [equalized wealth] level
established under Section 48.257.
SECTION 1.051. Subchapter C, Chapter 41, Education Code, is
transferred to Chapter 49, Education Code, as added by this Act,
redesignated as Subchapter C, Chapter 49, Education Code, and
amended to read as follows:
SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT
Sec. 49.101 [41.061]. AGREEMENT. (a) By agreement of the
governing boards of two school districts, territory may be detached
from one of the districts and annexed to the other district if,
after the action:
(1) the local revenue level [wealth per student] of
the district from which territory is detached is equal to or less
than the [equalized wealth] level established under Section 48.257;
and
(2) the local revenue level [wealth per student] of
the district to which territory is annexed is not greater than the
dollar amount guaranteed level of [greatest level for which] funds
[are] provided under Section 48.202(a-1)(2) [Subchapter F, Chapter
42].
(b) The agreement is not effective unless the commissioner
certifies that, after all actions taken under this chapter, the
local revenue level [wealth per student] of each district involved
will be equal to or less than the applicable level permitted by
Subsection (a).
Sec. 49.102 [41.062]. GOVERNING LAW. Except to the extent
of any conflict with this chapter and except for any requirement
that detached property must be annexed to a school district that is
contiguous to the detached territory, the annexation and detachment
is governed by Chapter 13.
Sec. 49.103 [41.063]. ALLOCATION OF APPRAISED VALUE OF
DIVIDED UNIT. If portions of a parcel or other item of property are
located in different school districts as a result of a detachment
and annexation under this subchapter, the parcel or other item of
property shall be appraised for taxation as a unit, and the
agreement shall allocate the taxable value of the property between
the districts.
Sec. 49.104 [41.064]. ALLOCATION OF INDEBTEDNESS. The
annexation agreement may allocate to the receiving district any
portion of the indebtedness of the district from which the
territory is detached, and the receiving district assumes and is
liable for the allocated indebtedness.
Sec. 49.105 [41.065]. NOTICE. As soon as practicable after
the agreement is executed, the districts involved shall notify each
affected property owner and the appraisal district in which the
affected property is located.
SECTION 1.052. Chapter 49, Education Code, as added by this
Act, is amended by adding Subchapter D, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT
SECTION 1.053. Sections 41.091, 41.092, 41.093, 41.094,
41.095, 41.096, 41.097, and 41.099, Education Code, are transferred
to Subchapter D, Chapter 49, Education Code, as added by this Act,
redesignated as Sections 49.151, 49.152, 49.153, 49.154, 49.155,
49.156, 49.157, and 49.158, Education Code, and amended to read as
follows:
Sec. 49.151 [41.091]. AGREEMENT. A school district with a
local revenue [wealth per student that exceeds the equalized
wealth] level in excess of entitlement may execute an agreement
with the commissioner to purchase attendance credit [credits] in an
amount sufficient, in combination with any other actions taken
under this chapter, to reduce the district's local revenue level
[wealth per student] to a level that is equal to or less than the
[equalized wealth] level established under Section 48.257.
Sec. 49.152 [41.092]. CREDIT. The amount of [(a) For each]
credit purchased decreases the dollar amount of a district's local
revenue level[, the weighted average daily attendance of the
purchasing school district is increased by one student in weighted
average daily attendance] for purposes of determining whether the
district exceeds the [equalized wealth] level established under
Section 48.257.
[(b) A credit is not used in determining a school district's
scholastic population, average daily attendance, or weighted
average daily attendance for purposes of Chapter 42 or 43.]
Sec. 49.153 [41.093]. COST. (a) The total [Subject to
Subsection (b-1), the] cost of [each] credit is the [an] amount
[equal to the greater of:
[(1) the amount] of the district's maintenance and
operations tax revenue that exceeds the level established under
Section 48.257 [per student in weighted average daily attendance
for the school year for which the contract is executed; or
[(2) the amount of the statewide district average of
maintenance and operations tax revenue per student in weighted
average daily attendance for the school year preceding the school
year for which the contract is executed].
(b) For purposes of this section, a school district's
maintenance and operations tax revenue does not include any amounts
paid into a tax increment fund under Chapter 311, Tax Code.
[(b-1) If the guaranteed level of state and local funds per
weighted student per cent of tax effort under Section
42.302(a-1)(1) for which state funds are appropriated for a school
year is an amount at least equal to the amount of revenue per
weighted student per cent of tax effort available to the Austin
Independent School District, as determined by the commissioner in
cooperation with the Legislative Budget Board, the commissioner, in
computing the amounts described by Subsections (a)(1) and (2) and
determining the cost of an attendance credit, shall exclude
maintenance and operations tax revenue resulting from the tax rate
described by Section 41.002(a)(2).]
(c) The cost of [an] attendance credit for a school district
is computed using the final tax collections of the district.
Sec. 49.154 [41.094]. PAYMENT. (a) A school district
shall pay for credit [credits] purchased:
(1) in equal monthly payments as determined by the
commissioner beginning February 15 and ending August 15 of the
school year for which the agreement is in effect; or
(2) in one payment for the total amount required to be
paid by the district not later than August 15 of the school year for
which the agreement is in effect.
(a-1) If a school district elects to pay for credit
purchased in the manner provided by Subsection (a)(2), the district
must notify the commissioner not later than February 15 of the
school year for which the agreement is in effect.
(b) Receipts shall be deposited in the state treasury and
may be used only for foundation school program purposes.
Sec. 49.155 [41.095]. DURATION. An agreement under this
section is valid for one school year and, subject to Section 49.156
[41.096], may be renewed annually.
Sec. 49.156 [41.096]. VOTER APPROVAL. (a) After first
executing an agreement under this section, the board of trustees
shall order and conduct an election, in the manner provided by
Sections 13.003(d)-(g), to obtain voter approval of the agreement.
(b) The ballot shall be printed to permit voting for or
against the proposition: "Authorizing the board of trustees of
________ School District to purchase attendance credit [credits]
from the state with local tax revenues."
(c) The proposition is approved if the proposition receives
a favorable vote of a majority of the votes cast. If the
proposition is approved, the agreement executed by the board is
ratified, and the board has continuing authority to execute
agreements under this subchapter on behalf of the district without
further voter approval.
Sec. 49.157 [41.097]. CREDIT FOR APPRAISAL COSTS. [(a)]
The total amount required under Section 49.153 [41.093] for a
district to purchase attendance credit [credits] under this
subchapter for any school year is reduced by an amount equal to the
product of the district's total costs under Section 6.06, Tax Code,
for the appraisal district or districts in which it participates
multiplied by a percentage that is computed by dividing the total
amount required under Section 49.153 [41.093] by the total amount
of taxes imposed in the district for that year less any amounts paid
into a tax increment fund under Chapter 311, Tax Code.
[(b) A school district is entitled to a reduction under
Subsection (a) beginning with the 1996-1997 school year. For that
school year, the reduction to which a district is entitled is the
sum of the amounts computed under Subsection (a) for the 1993-1994,
1994-1995, 1995-1996, and 1996-1997 school years. If that amount
exceeds the total amount required under Section 41.093 for the
1996-1997 school year, the difference is carried forward and the
total amount required under Section 41.093 is reduced each
subsequent school year until the total amount of the credit has been
applied to such reductions.]
Sec. 49.158 [41.099]. LIMITATION. (a) Sections 49.154 and
49.157 [41.002(e), 41.094, 41.097, and 41.098] apply only to a
district that:
(1) executes an agreement to purchase [all] attendance
credit [credits] necessary to reduce the district's local revenue
[wealth per student to the equalized wealth] level to the level
established under Section 48.257;
(2) executes an agreement to purchase attendance
credit [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 local revenue [wealth per student]
required for the district to achieve a local revenue level [wealth
per student] that is equal to or less than the [equalized wealth]
level established under Section 48.257; 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.
(b) A district that executes an agreement under Subsection
(a)(3) must pay full market value for any good or service the
district obtains through the consortium.
SECTION 1.054. Chapter 49, Education Code, as added by this
Act, is amended by adding Subchapter E, and a heading is added to
that subchapter to read as follows:
SUBCHAPTER E. EDUCATION OF NONRESIDENT STUDENTS
SECTION 1.055. Sections 41.121, 41.122, and 41.123,
Education Code, are transferred to Subchapter E, Chapter 49,
Education Code, as added by this Act, redesignated as Sections
49.201, 49.202, and 49.203, Education Code, and amended to read as
follows:
Sec. 49.201 [41.121]. AGREEMENT. [(a)] The board of
trustees of a district with a local revenue [wealth per student that
exceeds the equalized wealth] level in excess of entitlement may
execute an agreement to educate the students of another district in
a number that, when the weighted average daily attendance of the
students served is added to the weighted average daily attendance
of the contracting district, is sufficient, in combination with any
other actions taken under this chapter, to reduce the district's
local revenue level [wealth per student] to a level that is equal to
or less than the [equalized wealth] level established under Section
48.257. The agreement is not effective unless the commissioner
certifies that the transfer of weighted average daily attendance
will not result in any of the contracting districts' local revenue
level [wealth per student] being greater than the [equalized
wealth] level established under Section 48.257 and that the
agreement requires an expenditure per student in weighted average
daily attendance that is at least equal to the amount per student in
weighted average daily attendance required under Section 49.153
[41.093].
Sec. 49.202 [41.122]. VOTER APPROVAL. (a) After first
executing an agreement under this subchapter other than an
agreement under Section 49.205 [41.125], the board of trustees of
the district that will be educating nonresident students shall
order and conduct an election, in the manner provided by Sections
13.003(d)-(g), to obtain voter approval of the agreement.
(b) The ballot shall be printed to permit voting for or
against the proposition: "Authorizing the board of trustees of
________ School District to educate students of other school
districts with local tax revenues."
(c) The proposition is approved if the proposition receives
a favorable vote of a majority of the votes cast. If the
proposition is approved, the agreement executed by the board is
ratified, and the board has continuing authority to execute
agreements under this subchapter on behalf of the district without
further voter approval.
Sec. 49.203 [41.123]. WADA COUNT. For purposes of Chapter
48 [42], students served under an agreement under this subchapter
are counted only in the weighted average daily attendance of the
district providing the services, except that students served under
an agreement authorized by Section 49.205 [41.125] are counted in a
manner determined by the commissioner.
SECTION 1.056. Section 41.124, Education Code, as amended
by Chapters 581 (S.B. 810) and 705 (H.B. 3526), Acts of the 85th
Legislature, Regular Session, 2017, is transferred to Subchapter E,
Chapter 49, Education Code, as added by this Act, redesignated as
Section 49.204, Education Code, and reenacted and amended to read
as follows:
Sec. 49.204 [41.124]. TRANSFERS. (a) The board of
trustees of a school district with a local revenue [wealth per
student that exceeds the equalized wealth] level in excess of
entitlement may reduce the district's local revenue level [wealth
per student] by serving nonresident students who transfer to the
district and are educated by the district but who are not charged
tuition. A district that exercises the option under this
subsection is not required to execute an agreement with the school
district in which a transferring student resides and must certify
to the commissioner that the district has not charged or received
tuition for the transferring students.
(b) [A school district with a wealth per student that
exceeds the equalized wealth level that pays tuition to another
school district for the education of students that reside in the
district may apply the amount of tuition paid toward the cost of the
option chosen by the district to reduce its wealth per student. The
amount applied under this subsection may not exceed the amount
determined under Section 41.093 as the cost of an attendance credit
for the district. The commissioner may require any reports
necessary to document the tuition payments.
[(c)] A school district that receives tuition for a student
from a school district with a local revenue [wealth per student that
exceeds the equalized wealth] level in excess of entitlement may
not claim attendance for that student for purposes of Chapters [42
and] 46 and 48 and the instructional materials and technology
allotment under Section 31.0211.
SECTION 1.057. Section 41.125, Education Code, is
transferred to Subchapter E, Chapter 49, Education Code, as added
by this Act, redesignated as Section 49.205, Education Code, and
amended to read as follows:
Sec. 49.205 [41.125]. CAREER AND TECHNOLOGY EDUCATION
PROGRAMS. (a) The board of trustees of a school district with a
local revenue [wealth per student that exceeds the equalized
wealth] level in excess of entitlement may reduce the district's
local revenue level [wealth per student] by executing an agreement
to provide students of one or more other districts with career and
technology education through a program designated as an area
program for career and technology education.
(b) The agreement is not effective unless the commissioner
certifies that:
(1) implementation of the agreement will not result in
any of the affected districts' local revenue level [wealth per
student] being greater than the [equalized wealth] level
established under Section 48.257; and
(2) the agreement requires the district with a local
revenue [wealth per student that exceeds the equalized wealth]
level in excess of entitlement to make expenditures benefiting
students from other districts in an amount at least equal to the
amount that would be required for the district to purchase [the
number of] attendance credit [credits] under Subchapter D
necessary, in combination with any other actions taken under this
chapter other than an action under this section, to reduce the
district's local revenue level [wealth per student] to a level that
is equal to or less than the [equalized wealth] level established
under Section 48.257.
SECTION 1.058. Subchapter F, Chapter 41, Education Code, is
transferred to Chapter 49, Education Code, as added by this Act,
redesignated as Subchapter F, Chapter 49, Education Code, and
amended to read as follows:
SUBCHAPTER F. TAX BASE CONSOLIDATION
Sec. 49.251 [41.151]. AGREEMENT. The board of trustees of
two or more school districts may execute an agreement to conduct an
election on the creation of a consolidated taxing district for the
maintenance and operation of the component school districts. The
agreement is subject to approval by the commissioner. The
agreement is not effective unless the commissioner certifies that
the consolidated taxing district will have a local revenue level
[wealth per student] equal to or less than the [equalized wealth]
level established under Section 48.257 after all actions taken
under this chapter.
Sec. 49.252 [41.152]. DATE OF ELECTION. Any agreement
under this subchapter must provide for the ordering of an election
to be held on the same date in each district.
Sec. 49.253 [41.153]. PROPOSITION. (a) The ballot shall
be printed to permit voting for or against the proposition:
"Creation of a consolidated taxing district composed of the
territory of _________________________ school districts, and
authorizing the levy, assessment, and collection of annual ad
valorem taxes for the maintenance of the public free schools within
that taxing district at a rate not to exceed $_________ on the $100
valuation of taxable property."
(b) The rate to be included in the proposition shall be
provided by the agreement among the districts but may not exceed the
maximum rate provided by law for independent school districts.
Sec. 49.254 [41.154]. APPROVAL. The proposition is
approved only if the proposition receives a favorable vote of the
majority of the votes cast within each participating school
district.
Sec. 49.255 [41.155]. CONSOLIDATED TAXING DISTRICT. A
consolidated taxing district is a school district established for
the limited purpose of exercising the taxing power authorized by
Section 3, Article VII, Texas Constitution, and distributing the
revenue to its component school districts.
Sec. 49.256 [41.156]. GOVERNANCE. (a) The consolidated
taxing district is governed by the boards of the component school
districts acting jointly.
(b) Any action taken by the joint board must receive a
favorable vote of a majority of each component district's board of
trustees.
Sec. 49.257 [41.157]. MAINTENANCE TAX. (a) The joint
board shall levy a maintenance tax for the benefit of the component
school districts not later than September 1 of each year or as soon
thereafter as practicable.
(b) Each component district shall bear a share of the costs
of assessing and collecting taxes in proportion to the component
district's share of weighted average daily attendance in the
consolidated taxing district.
(c) A component district may not levy an ad valorem tax for
the maintenance and operation of the schools.
(d) Notwithstanding Section 45.003, the consolidated taxing
district may levy, assess, and collect a maintenance tax for the
benefit of the component districts at a rate that exceeds $1.50 per
$100 valuation of taxable property to the extent necessary to pay
contracted obligations on the lease purchase of permanent
improvements to real property entered into on or before May 12,
1993. The proposition to impose taxes at the necessary rate must be
submitted to the voters in the manner provided by Section 45.003.
Sec. 49.258 [41.158]. REVENUE DISTRIBUTION. The
consolidated taxing district shall distribute maintenance tax
revenue to the component districts on the basis of the number of
students in weighted average daily attendance in the component
districts.
Sec. 49.259 [41.159]. TAXES OF COMPONENT DISTRICTS. (a)
The governing board of a component school district of a
consolidated taxing district that has consolidated for maintenance
and operation purposes only may issue bonds and levy, pledge, and
collect ad valorem taxes within that component district sufficient
to pay the principal of and interest on those bonds as provided by
Chapter 45.
(b) A component district levying an ad valorem tax under
this section or Section 49.260(b)(1) [41.160(b)(1)] is entitled to
the guaranteed yield provided by Subchapter E [F], Chapter 48 [42],
for that portion of its tax rate that, when added to the maintenance
tax levied by the consolidated taxing unit, does not exceed the
limitation provided by Section 48.203 [42.303].
Sec. 49.260 [41.160]. OPTIONAL TOTAL TAX BASE
CONSOLIDATION. (a) An agreement executed under Section 49.251
[41.151] may provide for total tax base consolidation instead of
consolidation for maintenance and operation purposes only.
(b) Under an agreement providing for total tax base
consolidation:
(1) the component districts may not levy maintenance
or bond taxes, except to the extent necessary to retire bonds and
other obligations issued before the effective date of the
consolidation;
(2) the joint board may issue bonds and levy, pledge,
and collect ad valorem taxes sufficient to pay the principal of and
interest on those bonds, and issue refunding bonds, as provided by
Chapter 45 for independent school districts; and
(3) to the end of the ballot proposition required
under Section 49.253(a) [41.153(a)] shall be added ", and further
to create a consolidated tax base for the repayment of all bonded
indebtedness issued by the joint board of the taxing district after
the effective date of the consolidation and to authorize the joint
board to levy, pledge, and collect ad valorem taxes at a rate
sufficient to pay the principal of and interest on those bonds."
(c) Under an agreement providing for total tax base
consolidation:
(1) the component districts may provide for the
consolidated taxing district to assume all of the indebtedness of
all component districts; and
(2) to the end of the ballot proposition required by
Section 49.253(a) [41.153(a)] shall be added ", and further to
create a consolidated tax base for the repayment of all bonded
indebtedness issued by the joint board of the taxing district or
previously issued by the component school districts and to
authorize the joint board to levy, pledge, and collect ad valorem
taxes at a rate sufficient to pay the principal of and interest on
those bonds."
SECTION 1.059. Subchapter G, Chapter 41, Education Code, is
transferred to Chapter 49, Education Code, as added by this Act,
redesignated as Subchapter G, Chapter 49, Education Code, and
amended to read as follows:
SUBCHAPTER G. DETACHMENT AND ANNEXATION BY COMMISSIONER
Sec. 49.301 [41.201]. DEFINITION. In this subchapter,
"mineral property" means a real property mineral interest that has
been severed from the surface estate by a mineral lease creating a
determinable fee or by a conveyance that creates an interest
taxable separately from the surface estate. A mineral property
includes each royalty interest, working interest, or other
undivided interest in the mineral property.
Sec. 49.302 [41.202]. DETERMINATION OF TAXABLE VALUE. (a)
For purposes of this subchapter, the taxable value of an individual
parcel or other item of property and the total taxable value of
property in a school district resulting from the detachment of
property from or annexation of property to that district is
determined by applying the appraisal ratio for the appropriate
category of property determined under Subchapter M, Chapter 403,
Government Code, for the preceding tax year to the taxable value of
the detached or annexed property determined under Title 1, Tax
Code, for the preceding tax year.
(b) For purposes of this subchapter, the taxable value of
all or a portion of a parcel or item of real property includes the
taxable value of personal property having taxable situs at the same
location as the real property.
Sec. 49.303 [41.203]. PROPERTY SUBJECT TO DETACHMENT AND
ANNEXATION. (a) Only the following property may be detached and
annexed under this subchapter:
(1) a mineral property;
(2) real property used in the operation of a public
utility, including a pipeline, pipeline gathering system, or
railroad or other rail system; and
(3) real property used primarily for industrial or
other commercial purposes, other than property used primarily for
agriculture or for residential purposes.
(b) If a final judgment of a court determines that a mineral
interest may not be annexed and detached as provided by this
subchapter without an attendant annexation and detachment of the
surface estate or any other interest in the same land, the
detachment and annexation of a mineral interest under this
subchapter includes the surface estate and each other interest in
the land covered by the mineral interest.
Sec. 49.304 [41.204]. TAXATION OF PERSONAL PROPERTY.
Personal property having a taxable situs at the same location as
real property detached and annexed under this subchapter is taxable
by the school district to which the real property is annexed.
Sec. 49.305 [41.205]. DETACHMENT OF PROPERTY. (a) The
commissioner shall detach property under this section from each
school district from which the commissioner is required under
Section 49.004 [41.004] to detach property under this subchapter.
(b) The commissioner shall detach from each school district
covered by Subsection (a) one or more whole parcels or items of
property in descending order of the taxable value of each parcel or
item, beginning with the parcel or item having the greatest taxable
value, until the school district's local revenue level [wealth per
student] is equal to or less than the [equalized wealth] level
established under Section 48.257, except as otherwise provided by
Subsection (c).
(c) If the detachment of whole parcels or items of property
[,] as provided by Subsection (a) would result in a district's local
revenue level [wealth per student] that is less than the [equalized
wealth] level established under Section 48.257 by more than the
product of $10,000 multiplied by weighted average daily attendance,
the commissioner may not detach the last parcel or item of property
and shall detach the next one or more parcels or items of property
in descending order of taxable value that would result in the school
district having a local revenue level [wealth per student] that is
equal to or less than the [equalized wealth] level established
under Section 48.257 by not more than the product of $10,000
multiplied by weighted average daily attendance.
(d) Notwithstanding Subsections (a), (b), and (c), the
commissioner may detach only a portion of a parcel or item of
property if:
(1) it is not possible under this subchapter to reduce
the district's local revenue level [wealth per student] to a level
that is equal to or less than the [equalized wealth] level
established under Section 48.257 [this subchapter] unless some or
all of the parcel or item of property is detached and the detachment
of the whole parcel or item would result in the district from which
it is detached having a local revenue level [wealth per student]
that is less than the [equalized wealth] level established under
Section 48.257 by more than the product of $10,000 multiplied by
weighted average daily attendance; or
(2) the commissioner determines that a partial
detachment of that parcel or item of property is preferable to the
detachment of one or more other parcels or items having a lower
taxable value in order to minimize the number of parcels or items of
property to be detached consistent with the purposes of this
chapter.
Sec. 49.306 [41.206]. ANNEXATION OF PROPERTY. (a) The
commissioner shall annex property detached under Section 49.305
[41.205] to school districts eligible for annexation in accordance
with this section. A school district is eligible for annexation of
property to it under this subchapter only if, before any
detachments or annexations are made in a year, the district's
taxable value of property does not exceed the value necessary to
generate maintenance and operations tax revenue in the amount equal
to the district's entitlement under Section 48.202(a-1)(2) [wealth
per student is less than the greatest level for which funds are
provided under Subchapter F, Chapter 42].
(b) Property may be annexed to a school district without
regard to whether the property is contiguous to other property in
that district.
(c) The commissioner shall annex property detached from
school districts beginning with the property detached from the
school district with the greatest local revenue level in excess of
entitlement [wealth per student] before detachment, and continuing
with the property detached from each other school district in
descending order of the district's local revenue level in excess of
entitlement [wealth per student] before detachment.
(d) The commissioner shall annex the parcels or items of
property detached from a school district to other school districts
that are eligible for annexation of property in descending order of
the taxable value of each parcel or item according to the following
priorities:
(1) first, to the eligible school districts assigned
to the same county as the school district from which the property is
detached whose total adopted tax rate for the preceding tax year
does not exceed by more than $0.15 the total tax rate adopted for
that year by the school district from which the property is
detached;
(2) second, to the eligible school districts served by
the same regional education service center as the district from
which the property is detached whose total adopted tax rate for the
preceding tax year does not exceed by more than $0.10 the total tax
rate adopted for that year by the school district from which the
property is detached; and
(3) third, to other eligible school districts whose
total adopted tax rate for the preceding tax year does not exceed by
more than $0.05 the total tax rate adopted for that year by the
school district from which the property is detached.
(e) If the districts identified by Subsection (d) for a
school district are insufficient to annex all the property detached
from the school district, the commissioner shall increase, for
purposes of this section, all the maximum difference in tax rates
allowed under Subsection (d) in increments of $0.01 until the
districts are identified that are sufficient to annex all the
property detached from the district.
(f) If only one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
annex property to that district until it reaches the taxable value
of property necessary to generate maintenance and operations tax
revenue in the amount equal to the district's entitlement under
Section 48.202(a-1)(2) [a wealth per student equal as nearly as
possible to the greatest level for which funds are provided under
Subchapter F, Chapter 42], by annexing whole parcels or items of
property. Any remaining detached property shall be annexed to
eligible school districts in the next priority group as provided by
this section.
(g) If more than one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
first annex property to the district within the priority group to
which could be annexed the most taxable value of property without
increasing the district's taxable value of property to an amount
that exceeds the amount necessary to generate maintenance and
operations tax revenue in the amount equal to the district's
entitlement under Section 48.202(a-1)(2) [its wealth per student
above the greatest level for which funds are provided under
Subchapter F, Chapter 42], until that district reaches a taxable
value of property necessary to generate maintenance and operations
tax revenue in the amount equal to the district's entitlement under
Section 48.202(a-1)(2) [wealth per student equal as nearly as
possible to the greatest level for which funds are provided under
Subchapter F, Chapter 42], by annexing whole parcels or items of
property. Then any additional detached property shall be annexed
in the same manner to other eligible school districts in the same
priority group in descending order of capacity to receive taxable
value of annexed property without increasing the district's taxable
value of property to an amount that exceeds the amount necessary to
generate maintenance and operations tax revenue in the amount equal
to the district's entitlement under Section 48.202(a-1)(2) [wealth
per student above the greatest level for which funds are provided
under Subchapter F, Chapter 42]. If every school district in a
priority group reaches a taxable value of property necessary to
generate maintenance and operations tax revenue in the amount equal
to the district's entitlement under Section 48.202(a-1)(2) [wealth
per student equal to the greatest level for which funds are provided
under Subchapter F, Chapter 42], as nearly as possible, the
remaining detached property shall be annexed to school districts in
the next priority group in the manner provided by this section.
(h) For purposes of this section, a portion of a parcel or
item of property detached in that subdivided form from a school
district is treated as a whole parcel or item of property.
(i) The commissioner may order the annexation of a portion
of a parcel or item of property, including a portion of property
treated as a whole parcel or item under Subsection (h), if:
(1) the annexation of the whole parcel or item would
result in the district eligible to receive it in the appropriate
priority order provided by this section having a local revenue
level [wealth per student] greater than the amount by which the
product of $10,000 multiplied by weighted average daily attendance
exceeds the taxable value of property necessary to generate
maintenance and operations tax revenue in the amount equal to the
district's entitlement under Section 48.202(a-1)(2) [more than the
greatest level for which funds are provided under Subchapter F,
Chapter 42]; or
(2) the commissioner determines that annexation of
portions of the parcel or item would reduce disparities in district
taxable values of property necessary to generate maintenance and
operations tax revenue in the amount equal to a district's
entitlement under Section 48.202(a-1)(2) [wealth per student] more
efficiently than would be possible if the parcel or item were
annexed as a whole.
(j) The commissioner may modify the priorities established
by this section as the commissioner considers reasonable to
minimize or reduce the number of school districts to which the
property detached from a school district is annexed, to minimize or
reduce the geographic dispersal of property in a school district,
to minimize or reduce disparities in school district taxable values
of property necessary to generate maintenance and operations tax
revenue in the amount equal to a district's entitlement under
Section 48.202(a-1)(2) [wealth per student] that would otherwise
result, or to minimize or reduce any administrative burden or
expense.
(k) For purposes of this section, a school district is
assigned to a county if the school district is assigned to that
county in the 1992-1993 Texas School Directory published by the
Central Education Agency.
Sec. 49.307 [41.207]. LIMITATIONS ON DETACHMENT AND
ANNEXATION. The commissioner may detach and annex property under
this subchapter only if:
(1) the property is not exempt from ad valorem
taxation under Section 11.20 or 11.21, Tax Code; and
(2) the property does not contain a building or
structure owned by the United States, this state, or a political
subdivision of this state that is exempt from ad valorem taxation
under law.
Sec. 49.308 [41.208]. ORDERS AND NOTICE. (a) The
commissioner shall order any detachments and annexations of
property under this subchapter not later than November 8 of each
year.
(b) As soon as practicable after issuing the order under
Subsection (a), the commissioner shall notify each affected school
district and the appraisal district in which the affected property
is located of the determination.
Sec. 49.309 [41.209]. TREATMENT OF SUBDIVIDED PROPERTY.
(a) If the commissioner orders the detachment or annexation of a
portion of a parcel or item of property under this subchapter, the
order shall specify the portion of the taxable value of the property
to be detached or annexed and may, but need not, describe the
specific area of the parcel or item to be detached or annexed.
(b) If an order for the detachment or annexation of a
portion of a parcel or item of property does not describe the
specific area of the parcel or item to be detached or annexed, the
commissioner, as soon as practicable after issuing the order, shall
determine the specific area to be detached or annexed and shall
certify that determination to the appraisal district for the county
in which the property is located.
(c) If portions of a parcel or item of property are located
in two or more school districts as the result of a detachment or
annexation, the parcel or item shall be appraised for taxation as a
unit, and the commissioner shall determine the portion of the
taxable value of the property that is located in each of those
school districts based on the square footage of the property, or any
other reasonable method adopted by the commissioner.
Sec. 49.310 [41.210]. DUTIES OF CHIEF APPRAISER. (a) The
chief appraiser of each appraisal district shall cooperate with the
commissioner in administering this subchapter. The commissioner
may require the chief appraiser to submit any reports or provide any
information available to the chief appraiser in the form and at the
times required by the commissioner.
(b) As soon as practicable after the detachment and
annexation of property, the chief appraiser of the appraisal
district in which the property is located shall send a written
notice of the detachment and annexation to the owner of any property
taxable in a different school district as a result of the detachment
and annexation. The notice must include the name of the school
district by which the property is taxable after the detachment and
annexation.
(c) The commissioner may reimburse an appraisal district
for any costs incurred in administering this subchapter and may
condition the reimbursement or the amount of the reimbursement on
the timely submission of reports or information required by the
commissioner or the satisfactory performance of any other action
required or requested by the commissioner.
Sec. 49.311 [41.211]. STUDENT ATTENDANCE. A student who
is a resident of real property detached from a school district may
choose to attend school in that district or in the district to which
the property is annexed. For purposes of determining average daily
attendance under Section 48.005 [42.005], the student shall be
counted in the district to which the property is annexed. If the
student chooses to attend school in the district from which the
property is detached, the state shall withhold any foundation
school funds from the district to which the property is annexed and
shall allocate to the district in which the student is attending
school those funds and the amount of funds equal to the difference
between the state funds the district is receiving for the student
and the district's cost in educating the student.
Sec. 49.312 [41.212]. BOND TAXES. Property detached from
a school district is released from the obligation for any tax to pay
principal and interest on bonds authorized by the district before
detachment. The property is subject to any tax to pay principal or
interest on bonds authorized by the district to which the property
is annexed whether authorized before or after annexation.
Sec. 49.313 [41.213]. DETERMINATION BY COMMISSIONER
FINAL. A decision or determination of the commissioner under this
subchapter is final and not appealable.
SECTION 1.060. Subchapter H, Chapter 41, Education Code, is
transferred to Chapter 49, Education Code, as added by this Act,
redesignated as Subchapter H, Chapter 49, Education Code, and
amended to read as follows:
SUBCHAPTER H. CONSOLIDATION BY COMMISSIONER
Sec. 49.351 [41.251]. COMMISSIONER ORDER. If the
commissioner is required under Section 49.004 [41.004] to order the
consolidation of districts, the consolidation is governed by this
subchapter. The commissioner's order shall be effective on a date
determined by the commissioner, but not later than the earliest
practicable date after November 8.
Sec. 49.352 [41.252]. SELECTION CRITERIA. (a) In
selecting the districts to be consolidated with a district that has
taxable values of property in an amount that exceeds the local
revenue level established under Section 48.257 [a property wealth
greater than the equalized wealth level], the commissioner shall
select one or more districts [with a wealth per student] that, when
consolidated, will result in a consolidated district with a local
revenue level [wealth per student] equal to or less than the
[equalized wealth] level established under Section 48.257. In
achieving that result, the commissioner shall give priority to
school districts in the following order:
(1) first, to the contiguous district that has the
lowest local revenue level [wealth per student] and is located in
the same county;
(2) second, to the district that has the lowest local
revenue level [wealth per student] and is located in the same
county;
(3) third, to a contiguous district with a local
revenue level [property wealth] below the [equalized wealth] level
established under Section 48.257 that has requested the
commissioner that it be considered in a consolidation plan;
(4) fourth, to include as few districts as possible
that have the lowest local revenue levels below the [fall below the
equalized wealth] level established under Section 48.257 within the
consolidation order that have not requested the commissioner to be
included;
(5) fifth, to the district that has the lowest local
revenue level [wealth per student] and is located in the same
regional education service center area; and
(6) sixth, to a district that has a tax rate similar to
that of the district that has a local revenue level [property
wealth] greater than the [equalized wealth] level established under
Section 48.257.
(b) The commissioner may not select a district that has been
created as a result of consolidation by agreement under Subchapter
B to be consolidated under this subchapter with a district that has
a local revenue level [property wealth] greater than the [equalized
wealth] level established under Section 48.257.
(c) In applying the selection criteria specified by
Subsection (a), if more than two districts are to be consolidated,
the commissioner shall select the third and each subsequent
district to be consolidated by treating the district that has a
local revenue level [property wealth] greater than the [equalized
wealth] level established under Section 48.257 and the district or
districts previously selected for consolidation as one district.
Sec. 49.353 [41.253]. GOVERNANCE. (a) Until the initial
trustees elected as provided by Subsection (b) have qualified and
taken office, a district consolidated under this subchapter is
governed by a transitional board of trustees consisting of the
board of trustees of the district having the greatest student
membership on the last day of the school year preceding the
consolidation plus one member of the board of trustees of each other
consolidating district selected by that board.
(b) The transitional board of trustees shall divide the
consolidated district into nine single-member trustee districts in
accordance with the procedures provided by Section 11.052. The
transitional board shall order an election for the initial board of
trustees to be held on the first May uniform election date after the
effective date of a consolidation order.
(c) Members of the board of trustees of a consolidated
district serve staggered terms of office for four years.
(d) Section 13.156 applies to districts consolidated under
this subchapter.
Sec. 49.354 [41.254]. DISSOLUTION OF CONSOLIDATED
DISTRICT. (a) If the legislature abolishes ad valorem taxes for
public school maintenance and operations and adopts another method
of funding public education, the board of trustees of a
consolidated district created under this subchapter may dissolve
the consolidated district, provided that the dissolution is
approved by a majority of those voters residing within the district
participating in an election called for the purpose of approving
the dissolution of the consolidated school district.
(b) If a consolidated district is dissolved, each of the
former districts is restored as a separate district and is
classified as an independent district.
(c) Title to real property of the consolidated district is
allocated to the restored district in which the property is
located. Title to proportionate shares of the fund balances and
personal property of the consolidated district, as determined by
Subsection (e), are allocated to each restored district.
(d) Each of the restored districts assumes and is liable
for:
(1) indebtedness of the consolidated district that
relates to real property allocated to the district; and
(2) a proportionate share, as determined by Subsection
(e), of indebtedness of the consolidated district that does not
relate to real property.
(e) A restored district's proportionate share of fund
balances, personal property, or indebtedness is equal to the
proportion that the number of students in average daily attendance
in the restored district bears to the number of students in average
daily attendance in the consolidated district.
Sec. 49.355 [41.255]. FUND BALANCES. Fund balances of a
school district consolidated under this subchapter may be used only
for the benefit of the schools within the district that generated
the funds.
Sec. 49.356 [41.256]. EMPLOYMENT CONTRACTS. A
consolidated district created under this subchapter shall honor an
employment contract entered into by a consolidating district.
Sec. 49.357 [41.257]. APPLICATION OF [SMALL AND] SPARSE
ADJUSTMENT [ADJUSTMENTS] AND SMALL AND TRANSPORTATION ALLOTMENTS
[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 48.052 [42.103], 48.101
[42.105], or 48.151 [42.155] would have applied in the event that
the consolidated district still qualifies as a small or sparse
district.
SECTION 1.061. Section 403.302(d), Government Code, is
amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because
of[:
[(A)] action required by statute or the
constitution of this state, other than Section 11.311, Tax Code,
that, if the tax rate adopted by the district is applied to it,
produces an amount equal to the difference between the tax that the
district would have imposed on the property if the property were
fully taxable at market value and the tax that the district is
actually authorized to impose on the property, if this subsection
does not otherwise require that portion to be deducted; [or
[(B) action taken by the district under
Subchapter B or C, Chapter 313, Tax Code, before the expiration of
the subchapter;]
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(13) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 1.062. Sections 825.405(a), (b), (e), and (f),
Government Code, are amended to read as follows:
(a) An employing school district or an open-enrollment
charter school, as applicable, shall pay the state's contribution
on the portion of a member's salary that exceeds the statutory
minimum salary for [For] members:
(1) entitled to the minimum salary for certain school
personnel under Section 21.402, Education Code;
(2) [, and for members] who would have been entitled to
the minimum salary for certain school personnel under former
Section 16.056, Education Code, as that section existed on January
1, 1995; and
(3) who would be entitled to the minimum salary for
certain school personnel under Section 21.402, Education Code, if
the member was employed by a school district subject to that section
instead of being employed by:
(A) an open-enrollment charter school; or
(B) a school district that has adopted a local
innovation plan under Chapter 12A, Education Code, that exempts the
district's employees from the minimum salary schedule under that
section[, the employing district shall pay the state's contribution
on the portion of the member's salary that exceeds the statutory
minimum salary].
(b) For purposes of this section,[:
[(1)] the statutory minimum salary for a member
described by:
(1) Subsection (a)(1) [certain school personnel under
Section 21.402, Education Code,] is the salary provided by Section
21.402, Education Code [that section multiplied by the cost of
education adjustment applicable under Section 42.102, Education
Code, to the district in which the member is employed]; [and]
(2) Subsection (a)(2) [the statutory minimum salary
for members who would have been entitled to the minimum salary for
certain school personnel under former Section 16.056, Education
Code, as that section existed on January 1, 1995,] is a minimum
salary computed in the same manner as the minimum salary for certain
school personnel under Section 21.402, Education Code; and
(3) Subsection (a)(3) is the minimum salary the member
would have been entitled to if the member was subject to Section
21.402, Education Code[, multiplied by the cost of education
adjustment applicable under Section 42.102, Education Code, to the
district in which the member is employed].
(e) After the end of each school year, the retirement system
shall certify to the commissioner of education:
(1) the names of any employers [employing districts]
that have failed to remit, within the period required by Section
825.408, all contributions required under this section for the
school year; and
(2) the amounts of the unpaid contributions.
(f) If the commissioner of education receives a
certification under Subsection (e), the commissioner shall direct
the comptroller of public accounts to withhold the amount
certified, plus interest computed at the rate and in the manner
provided by Section 825.408, from the first state money payable to
the employer [school district]. The amount withheld shall be
deposited to the credit of the appropriate accounts of the
retirement system.
SECTION 1.063. Section 26.08, Tax Code, is amended by
amending Subsections (a), (b), (i), and (n) and adding Subsections
(a-1) and (n-1) to read as follows:
(a) If the governing body of a school district adopts a tax
rate that exceeds the district's voter-approval [rollback] tax
rate, the registered voters of the district at an election held for
that purpose must determine whether to approve the adopted tax
rate.
(a-1) When increased expenditure of money by a school
district is necessary to respond to a disaster, including a
tornado, hurricane, flood, wildfire, or other calamity, but not
including a drought, that has impacted a school district and the
governor has requested federal disaster assistance for the area in
which the school district is located, an election is not required
under this section to approve the tax rate adopted by the governing
body for the year following the year in which the disaster occurs.
A tax rate adopted under this subsection applies only in the year
for which the rate is adopted. If a district adopts a tax rate under
this subsection, the amount by which that rate exceeds the
district's voter-approval tax rate for that tax year may not be
considered when calculating the district's voter-approval tax rate
for the tax year following the year in which the district adopts the
rate.
(b) The governing body shall order that the election be held
in the school district on the next uniform election [a] date
prescribed by [not less than 30 or more than 90 days after the day on
which it adopted the tax rate.] Section 41.001, Election Code, that
occurs after the date of the election order and that allows
sufficient time to comply with the requirements of other law [does
not apply to the election unless a date specified by that section
falls within the time permitted by this section]. At the election,
the ballots shall be prepared to permit voting for or against the
proposition: "Ratifying [Approving] the ad valorem tax rate of ___
(insert adopted tax rate) [$_____ per $100 valuation] in (name of
school district) for the current year, a rate that will result in an
increase of _____ (insert percentage increase in maintenance and
operations tax revenue under the adopted tax rate as compared to
maintenance and operations tax revenue in the preceding tax year)
percent in maintenance and operations tax revenue for the district
for the current year as compared to the preceding year, which is an
additional $____ (insert dollar amount of increase in maintenance
and operations tax revenue under the adopted tax rate as compared to
maintenance and operations tax revenue in the preceding tax year)
[is $_____ higher per $100 valuation than the school district
rollback tax rate, for the purpose of (description of purpose of
increase)]." [The ballot proposition must include the adopted tax
rate and the difference between that rate and the rollback tax rate
in the appropriate places.]
(i) For purposes of this section, "enrichment tax rate" has
the meaning assigned by Section 45.0032, Education Code [the
effective maintenance and operations tax rate of a school district
is the tax rate that, applied to the current total value for the
district, would impose taxes in an amount that, when added to state
funds that would be distributed to the district under Chapter 42,
Education Code, for the school year beginning in the current tax
year using that tax rate, would provide the same amount of state
funds distributed under Chapter 42, Education Code, and maintenance
and operations taxes of the district per student in weighted
average daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year].
(n) For purposes of this section, the voter-approval
[rollback] tax rate of a school district [whose maintenance and
operations tax rate for the 2005 tax year was $1.50 or less per $100
of taxable value] is:
(1) for the 2019 [2006] tax year, the sum of the
following:
(A) the rate [that is equal to 88.67 percent of
the maintenance and operations tax rate adopted by the district for
the 2005 tax year, the rate of $0.04] per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 48.255, Education Code, for the 2019 tax
year and $1.00;
(B) the greater of:
(i) the district's maintenance and
operations tax rate for the 2018 tax year, less the sum of:
(a) $1.00; and
(b) any amount by which the district
is required to reduce the district's enrichment tax rate under
Section 48.202(f), Education Code, in the 2019 tax year; or
(ii) the rate of $0.04 per $100 of taxable
value; and
(C) [, and] the district's current debt rate; and
(2) for the 2020 [2007] and subsequent tax years, the
sum [lesser] of the following:
(A) [the sum of the following:
[(i)] the rate per $100 of taxable value
that is equal to the product of the state compression percentage, as
determined under Section 48.255 [42.2516], Education Code, for the
current year and $1.00 [$1.50];
(B) the greater of:
(i) the district's enrichment tax rate for
the preceding tax year, less any amount by which the district is
required to reduce the district's enrichment tax rate under Section
48.202(f), Education Code, in the current tax year; or
(ii) the rate of $0.05 [$0.04] per $100 of
taxable value; and
(C) [(iii) the rate that is equal to the sum of
the differences for the 2006 and each subsequent tax year between
the adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year; and
[(iv)] the district's current debt rate[;
or
[(B) the sum of the following:
[(i) the effective maintenance and
operations tax rate of the district as computed under Subsection
(i) or (k), as applicable;
[(ii) the rate per $100 of taxable value
that is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $0.06; and
[(iii) the district's current debt rate].
(n-1) For the 2020 tax year, a school district shall
substitute "$0.04" for "$0.05" in Subsection (n)(2)(B)(ii) if the
governing body of the district does not adopt by unanimous vote for
that tax year a maintenance and operations tax rate at least equal
to the sum of the rate described by Subsection (n)(2)(A) and the
rate of $0.05 per $100 of taxable value.
SECTION 1.064. Chapter 26, Tax Code, is amended by adding
Section 26.151 to read as follows:
Sec. 26.151. ESCROW ACCOUNT FOR PROPERTY TAXES. (a) In this
section:
(1) "Home loan" has the meaning assigned by Section
343.001, Finance Code.
(2) "Home loan servicer" means a person who:
(A) receives scheduled payments from a borrower
under the terms of a home loan, including amounts for escrow
accounts; and
(B) makes the payments of principal and interest
to the owner of the loan or other third party and makes any other
payments with respect to the amounts received from the borrower as
may be required under the terms of the servicing loan document or
servicing contract.
(3) "Property tax escrow account" means an escrow
account maintained by a lender or loan servicer to hold funds
prepaid by the borrower on a loan for the payment of property taxes
on real property securing the loan as the taxes become due.
(b) To the extent that H.B. 3, 86th Legislature, Regular
Session, 2019, has the effect of reducing property taxes in this
state, a lender or home loan servicer of a home loan that maintains
a property tax escrow account must take into account the effect of
that legislation in establishing the borrower's annual property tax
payments to be held in that account and immediately adjust the
borrower's monthly payments accordingly.
(c) This section expires September 1, 2023.
SECTION 1.065. Effective January 1, 2020, Sections 26.08(d)
and (g), Tax Code, are amended to read as follows:
(d) If the proposition is not approved as provided by
Subsection (c), the governing body may not adopt a tax rate for the
school district for the current year that exceeds the school
district's voter-approval [rollback] tax rate.
(g) In a school district that received distributions from an
equalization tax imposed under former Chapter 18, Education Code,
the no-new-revenue [effective] rate of that tax as of the date of
the county unit system's abolition is added to the district's
voter-approval [rollback] tax rate.
ARTICLE 1A. PROPERTY TAX COMPRESSION
SECTION 1A.001. Effective September 1, 2020, Section
13.054, Education Code, is amended by amending Subsection (f) and
adding Subsection (f-1) to read as follows:
(f) For five years beginning with the school year in which
the annexation occurs, a school district shall receive additional
funding under this subsection or Subsection (h). The amount of
funding shall be determined by multiplying the lesser of the
enlarged district's local fund assignment computed under Section
48.256 [42.252] or the enlarged district's total cost of tier one by
a fraction, the numerator of which is the number of students
residing in the territory annexed to the receiving district
preceding the date of the annexation and the denominator of which is
the number of students residing in the district as enlarged on the
date of the annexation, and multiplying the resulting product by
the quotient of the enlarged district's maximum compressed tax
rate, as determined under Section 48.2551, for the current school
year divided by the receiving district's maximum compressed tax
rate, as determined under Section 48.2551, for the year in which the
annexation occurred.
(f-1) Notwithstanding Subsection (f), for an annexation
that occurred before September 1, 2019, for five years beginning
with the school year in which the annexation occurs, a school
district shall receive additional funding under this subsection or
Subsection (h). The amount of funding shall be determined by
multiplying the lesser of the enlarged district's local fund
assignment computed under Section 48.256 or the enlarged district's
total cost of tier one by a fraction, the numerator of which is the
number of students residing in the territory annexed to the
receiving district preceding the date of the annexation and the
denominator of which is the number of students residing in the
district as enlarged on the date of the annexation, and dividing the
receiving district's maximum compressed tax rate, as determined
under Section 48.2551. This subsection expires September 1, 2021.
SECTION 1A.002. Effective September 1, 2020, Section
30.003, Education Code, is amended by amending Subsection (f-1) and
adding Subsection (f-2) to read as follows:
(f-1) The commissioner shall determine the total amount
that the Texas School for the Blind and Visually Impaired and the
Texas School for the Deaf would have received from school districts
in accordance with this section if the following provisions had not
reduced the districts' share of the cost of providing education
services:
(1) H.B. No. 1, Acts of the 79th Legislature, 3rd
Called Session, 2006;
(2) Section 45.0032;
(3) Section 48.255; and
(4) Section 48.2551.
(f-2) The amount determined under Subsection (f-1), [had
not reduced the districts' share of the cost of providing education
services. That amount,] minus any amount the schools do receive
from school districts, shall be set aside as a separate account in
the foundation school fund and appropriated to those schools for
educational purposes.
SECTION 1A.003. Effective September 1, 2020, Section
45.003(d), Education Code, is amended to read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate stated in the
proposition. For any year, the maintenance tax rate per $100 of
taxable value adopted by the district may not exceed the rate equal
to the sum of $0.17 and the district's maximum compressed rate
[product of the state compression percentage], as determined under
Section 48.2551 [42.2516, multiplied by $1.50].
SECTION 1A.004. (a) Effective September 1, 2020, Section
45.0032, Education Code, as added by this Act, is amended by adding
Subsection (a) to read as follows:
(a) A school district's tier one maintenance and operations
tax rate is the number of cents levied by the district for
maintenance and operations that does not exceed the maximum
compressed rate, as determined under Section 48.2551.
(b) Section 45.0032(a), Education Code, as added by Article
1 of this Act, expires on the effective date of this section.
SECTION 1A.005. Effective September 1, 2020, Section
42.101, Education Code, is transferred to Subchapter B, Chapter 48,
Education Code, as added by this Act, redesignated as Section
48.051, Education Code, and amended to read as follows:
Sec. 48.051 [42.101]. BASIC ALLOTMENT. (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 or career and
technology education programs, for which an additional allotment is
made under Subchapter C, a district is entitled to an allotment
equal to the lesser of $6,160 [$4,765] or the amount that results
from the following formula:
A = $6,160 [$4,765] X TR/MCR [(DCR/MCR)]
where:
"A" is the allotment to which a district is entitled;
"TR" ["DCR"] is the district's tier one maintenance and
operations [compressed] tax rate, as provided by Section 45.0032
[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 district's [state] maximum compressed tax rate,
as determined under Section 48.2551 [which is the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by $1.50].
[(a-1) Notwithstanding Subsection (a), for a school
district that adopted a maintenance and operations tax rate for the
2005 tax year below the maximum rate permitted by law for that year,
the district's compressed tax rate ("DCR") includes the portion of
the district's current maintenance and operations tax rate in
excess of the first six cents above the district's compressed tax
rate, as defined by Subsection (a), until the district's compressed
tax rate computed in accordance with this subsection is equal to the
state maximum compressed tax rate ("MCR").]
(b) A greater amount for any school year may be provided by
appropriation.
(c) During any school year for which the maximum amount of
the basic allotment provided under Subsection (a) or (b) is greater
than the maximum amount provided for the preceding school year, a
school district must use at least 30 percent of the amount, if the
amount is greater than zero, that equals the product of the average
daily attendance of the district multiplied by the amount of the
difference between the district's funding under this chapter per
student in average daily attendance for the current school year and
the preceding school year to provide compensation increases to
full-time district employees other than administrators as follows:
(1) 75 percent must be used to increase the
compensation paid to classroom teachers, full-time librarians,
full-time school counselors certified under Subchapter B, Chapter
21, and full-time school nurses, prioritizing differentiated
compensation for classroom teachers with more than five years of
experience; and
(2) 25 percent may be used as determined by the
district to increase compensation paid to full-time district
employees [This subsection applies to a school district for which
the compressed tax rate ("DCR") is determined in accordance with
Subsection (a-1). Any reduction in the district's adopted
maintenance and operations tax rate is applied to the following
components of the district's tax rate in the order specified:
[(1) tax effort described by Section 42.302(a-1)(2);
[(2) tax effort described by Section 42.302(a-1)(1);
and
[(3) tax effort included in the determination of the
district's compressed tax rate ("DCR") under Subsection (a-1)].
(d) In this section, "compensation" includes benefits such
as insurance premiums.
SECTION 1A.006. Effective September 1, 2020, Section
42.2516, Education Code, is transferred to Subchapter F, Chapter
48, Education Code, as added by this Act, redesignated as Section
48.255, Education Code, and amended to read as follows:
Sec. 48.255 [42.2516]. STATE COMPRESSION PERCENTAGE. (a)
In this title, "state compression percentage" means the percentage
of the rate of $1.00 per $100 valuation of taxable property that is
used to determine a school district's maximum compressed [adopted
maintenance and operations] tax rate under Section 48.2551.
(b) The [for the 2005 tax year that serves as the basis for
state funding. If the] state compression percentage is the lower
of:
(1) 93 percent, or a lower percentage set [not
established] by appropriation for a school year;
(2) the percentage determined by the following
formula:
SCP = PYCP X 1.025/(1 + ECPV); or
(3) the percentage determined under this section for
the preceding school year.
(c) For purposes of Subsection (b)(2):
(1) "SCP" is the state compression percentage;
(2) "PYCP" is the state compression percentage for the
preceding school year; and
(3) "ECPV" is the estimated percentage change in total
taxable property value for the applicable tax year as determined
based on the estimate submitted to the legislature under Section
48.269. [, the commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for that year from the
property tax relief fund established under Section 403.109,
Government Code, or from another funding source available for
school district property tax relief.
[(g) The commissioner may adopt rules necessary to
implement this section.
[(h) A determination by the commissioner under this section
is final and may not be appealed.]
SECTION 1A.007. Effective September 1, 2020, Subchapter F,
Chapter 48, Education Code, as added by this Act, is amended by
adding Sections 48.2551, 48.2552, 48.2553, and 48.2554 to read as
follows:
Sec. 48.2551. MAXIMUM COMPRESSED TAX RATE. (a) In this
section:
(1) "DPV" has the meaning assigned by Section 48.256;
(2) "E" is the expiration of the exclusion of
appraised property value for the preceding tax year that is
recognized as taxable property value for the current tax year,
which is the sum of the following:
(A) property value that is no longer subject to a
limitation on appraised value under Chapter 313, Tax Code; and
(B) property value under Section 311.013(n), Tax
Code, that is no longer excluded from the calculation of "DPV" from
the preceding year because of refinancing or renewal after
September 1, 2019;
(3) "MCR" is the district's maximum compressed rate,
which is the tax rate for the current tax year per $100 of valuation
of taxable property at which the district must levy a maintenance
and operations tax to receive the full amount of the tier one
allotment to which the district is entitled under this chapter;
(4) "PYDPV" is the district's value of "DPV" for the
preceding tax year; and
(5) "PYMCR" is the district's value of "MCR" for the
preceding tax year.
(b) Except as provided by Subsection (c), a district's
maximum compressed rate ("MCR") is the lesser of:
(1) the rate determined by the following applicable
formula:
(A) if "DPV" exceeds "PYDPV" by an amount equal
to or greater than 2.5 percent:
MCR = (1.025((PYDPV+E) X PYMCR))/DPV; or
(B) if Paragraph (A) does not apply:
MCR = PYMCR; or
(2) the product of the state compression percentage,
as determined under Section 48.255, for the current tax year,
multiplied by $1.00.
(c) Notwithstanding Subsection (b), for a district to which
Section 48.2552(b) applies, the district's maximum compressed rate
is the value calculated for "MCR" under Subsection (b)(1)(B).
(c-1) For purposes of determining a district's maximum
compressed rate ("MCR") under Subsection (b) for the 2020-2021
school year, the value of "PYMCR" is $1.00. This subsection expires
September 1, 2021.
(d) The agency shall calculate and make available school
districts' maximum compressed rates, as determined under this
section.
(e) It is the intent of the legislature that the state
continue to fund public schools at the same or similar level as the
state would have if this section had not taken effect.
Sec. 48.2552. LIMITATION ON MAXIMUM COMPRESSED RATE. (a)
Each year, the agency shall evaluate the difference between school
districts' maximum compressed rates, as determined under Section
48.2551.
(b) If a school district has a maximum compressed rate that
is less than 90 percent of another school district's maximum
compressed rate, the district's maximum compressed rate is
calculated under Section 48.2551(c) until the agency determines
that the difference between the district's and another district's
maximum compressed rates is not more than 10 percent.
(c) The amount of revenue available to the state as a result
of the differences in the amount of state aid and reduction in local
revenue between calculating a district's maximum compressed rate in
accordance with Subsection (b) and calculating the district's
maximum compressed rate under Section 48.2551 shall be used to
lower the state compression percentage under Section 48.255. The
agency shall provide estimates to the legislature of the reduction
of the state compression percentage based on this subsection.
Sec. 48.2553. PERMITTED TAX RATE FOR MAINTENANCE OF
2020-2021 SCHOOL YEAR BASIC ALLOTMENT. (a) Notwithstanding any
other provision of this title or Chapter 26, Tax Code, if the
maximum amount of the basic allotment provided under Section
48.051(a) or (b) for a school year is less than the maximum amount
provided for the 2020-2021 school year, subject to Subsection (b),
a school district may adopt a maintenance and operations tax rate
that exceeds the maximum compressed tax rate permitted under
Section 48.2551, provided that:
(1) the rate adopted by the district was previously
approved by voters for a tax year subsequent to the 2005 tax year;
and
(2) the rate may not exceed the lesser of:
(A) $1.17; or
(B) the district's maximum compressed tax rate
and the additional tax rate necessary to generate the amount of
revenue equal to the difference in per student funding.
(b) Before adopting a maintenance and operations tax rate
under Subsection (a), a school district must receive approval from
the agency. To receive approval from the agency under this
subsection the district must submit the following information:
(1) a statement detailing the loss of funding to the
district that resulted from the decline in the maximum amount of the
basic allotment provided under Section 48.051(a) or (b);
(2) the proposed additional tax effort and the amount
of funding the proposed additional tax effort will generate;
(3) evidence that the proposed additional tax effort
described by Subdivision (2) had been previously authorized by
voters subsequent to the 2005 tax year; and
(4) any other information required by the
commissioner.
(c) The agency's approval of a district's tax rate under
Subsection (b) expires at the end of each tax year.
(d) Any additional tax effort by a school district
authorized under this section is not:
(1) eligible for funding under Subchapter B, C, or D;
(2) eligible for the guaranteed yield amount of state
funds under Section 48.202; or
(3) subject to the limit on local revenue under
Section 48.257.
(e) The commissioner shall reduce state aid or adjust the
limit on local revenue under Section 48.257 in an amount equal to
the amount of revenue generated by a school district's tax effort
that is not in compliance with this section or Section 48.2551.
(f) This section does not apply to a school district to
which Section 45.003(f) applies.
Sec. 48.2554. STUDY ON DISTRICT PROPERTY TAX COMPRESSION.
(a) The Legislative Budget Board, in conjunction with other
appropriate state agencies, shall study possible methods of
providing property tax relief through the reduction of school
district maintenance and operations taxes. The study must
evaluate:
(1) potential sources of revenue that may be used to
reduce school district maintenance and operations taxes;
(2) methods of limiting increases in maintenance and
operations tax revenue that adjust for enrollment growth,
inflation, and other relevant factors; and
(3) for each method of providing property tax relief
considered:
(A) any difference in anticipated benefits to
property taxpayers based on the school district in which the
taxpayer resides;
(B) the cost to the state; and
(C) the anticipated impact on equity in the
public school finance system.
(b) Not later than September 1, 2020, the Legislative Budget
Board shall submit to the governor, the lieutenant governor, and
the speaker of the house of representatives a report on the results
of the study and any recommendations for legislative or other
action.
(c) This section expires September 1, 2021.
SECTION 1A.008. Effective January 1, 2020, Section
26.08(n), Tax Code, is amended to read as follows:
(n) For purposes of this section, the voter-approval
[rollback] tax rate of a school district [whose maintenance and
operations tax rate for the 2005 tax year was $1.50 or less per $100
of taxable value] is the sum of the following:
(1) [for the 2006 tax year, the sum of the rate that is
equal to 88.67 percent of the maintenance and operations tax rate
adopted by the district for the 2005 tax year, the rate of $0.04 per
$100 of taxable value, and the district's current debt rate; and
[(2) for the 2007 and subsequent tax years, the lesser
of the following:
[(A) the sum of the following:
[(i)] the rate per $100 of taxable value
that is equal to the district's maximum compressed tax rate
[product of the state compression percentage], as determined under
Section 48.2551 [42.2516], Education Code, for the current year
[and $1.50];
(2) the greater of:
(A) the district's enrichment tax rate for the
preceding tax year, less any amount by which the district is
required to reduce the district's enrichment tax rate under Section
48.202(f), Education Code, in the current tax year; or
(B) [(ii)] the rate of $0.05 [$0.04] per $100 of
taxable value; and
(3) [(iii) the rate that is equal to the sum of the
differences for the 2006 and each subsequent tax year between the
adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year; and
[(iv)] the district's current debt rate[;
or
[(B) the sum of the following:
[(i) the effective maintenance and
operations tax rate of the district as computed under Subsection
(i) or (k), as applicable;
[(ii) the rate per $100 of taxable value
that is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $0.06; and
[(iii) the district's current debt rate].
ARTICLE 2. PUBLIC EDUCATION
SECTION 2.001. Section 7.028(a), Education Code, is amended
to read as follows:
(a) Except as provided by Section 21.006(k), 22.093(l),
22.096, 29.001(5), 29.010(a), or 39.057, the agency may monitor
compliance with requirements applicable to a process or program
provided by a school district, campus, program, or school granted
charters under Chapter 12, including the process described by
Subchapter F, Chapter 11, or a program described by Subchapter B, C,
D, E, F, H, or I, Chapter 29, Subchapter A, Chapter 37, or Section
38.003, [and the use of funds provided for such a program under
Subchapter C, Chapter 42,] only as necessary to ensure:
(1) compliance with federal law and regulations;
(2) financial accountability, including compliance
with grant requirements; [and]
(3) data integrity for purposes of:
(A) the Public Education Information Management
System (PEIMS); and
(B) accountability under Chapters 39 and 39A; and
(4) qualification for funding under Chapter 48.
SECTION 2.002. Subchapter C, Chapter 7, Education Code, is
amended by adding Section 7.070 to read as follows:
Sec. 7.070. COORDINATION OF DATA COLLECTION. The
commissioner may enter into agreements with appropriate entities as
necessary to provide for the collection of data regarding college,
career, and military readiness of public school students, including
data maintained by:
(1) governmental agencies of the United States, this
state, or another state;
(2) political subdivisions of this state or another
state;
(3) public or private institutions of higher
education; and
(4) relevant private organizations.
SECTION 2.003. Subchapter D, Chapter 11, Education Code, is
amended by adding Sections 11.185 and 11.186 to read as follows:
Sec. 11.185. EARLY CHILDHOOD LITERACY AND MATHEMATICS
PROFICIENCY PLANS. (a) The board of trustees of each school
district shall adopt and post on the district's Internet website
early childhood literacy and mathematics proficiency plans that set
specific annual goals for the following five school years to reach
quantifiable goals for student performance in reading and
mathematics at each campus.
(b) Each plan adopted under Subsection (a) must:
(1) identify annual goals for students in each group
evaluated under the closing the gaps domain under Section
39.053(c)(3);
(2) include annual goals for aggregate student growth
on the third grade reading or mathematics assessment instrument, as
applicable, administered under Section 39.023 or on an alternative
assessment instrument determined by the board of trustees;
(3) provide for targeted professional development for
classroom teachers in kindergarten or first, second, or third grade
who are assigned to campuses that the board of trustees identifies
as not meeting the plan's goals;
(4) assign at least one district-level administrator
or employee of the regional education service center for the
district's region to:
(A) coordinate implementation of the plan; and
(B) submit an annual report to the board of
trustees on the district's progress toward the goals set under the
plan; and
(5) be reviewed annually by the board of trustees at a
public meeting.
(c) Each plan adopted under Subsection (a) may set separate
goals for students in a bilingual education or special language
program under Subchapter B, Chapter 29.
(d) The professional development provided to classroom
teachers under Subsection (b)(3) must, as appropriate, consider the
unique needs of students in a bilingual education or special
language program under Subchapter B, Chapter 29.
(e) A school district shall post the annual report described
by Subsection (b)(4)(B) on the district's Internet website and on
the Internet website, if any, of each campus in the district.
Sec. 11.186. COLLEGE, CAREER, AND MILITARY READINESS PLANS.
(a) The board of trustees of each school district shall adopt
college, career, and military readiness plans that set specific
annual goals for the following five school years to reach
quantifiable goals for measures of student college, career, and
military readiness at each campus.
(b) Each plan adopted under Subsection (a) must:
(1) identify annual goals for students in each group
evaluated under the closing the gaps domain under Section
39.053(c)(3);
(2) include annual goals for aggregate student growth
on college, career, and military readiness indicators evaluated
under the student achievement domain under Section 39.053(c)(1);
(3) assign at least one district-level administrator
or employee of the regional education service center for the
district's region to:
(A) coordinate implementation of the plan; and
(B) submit an annual report to the board of
trustees on the district's progress toward the goals set under the
plan; and
(4) be reviewed annually by the board of trustees at a
public meeting.
(c) A school district shall post the annual report described
by Subsection (b)(3)(B) on the district's Internet website and on
the Internet website, if any, of each campus in the district.
SECTION 2.004. Section 12.104(b), Education Code, as
amended by Chapters 324 (S.B. 1488), 522 (S.B. 179), and 735 (S.B.
1153), Acts of the 85th Legislature, Regular Session, 2017, is
reenacted and amended to read as follows:
(b) An open-enrollment charter school is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) the provisions in Chapter 554, Government Code;
and
(3) [(2)] a prohibition, restriction, or requirement,
as applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) criminal history records under Subchapter C,
Chapter 22;
(C) reading instruments and accelerated reading
instruction programs under Section 28.006;
(D) accelerated instruction under Section
28.0211;
(E) high school graduation requirements under
Section 28.025;
(F) special education programs under Subchapter
A, Chapter 29;
(G) bilingual education under Subchapter B,
Chapter 29;
(H) prekindergarten programs under Subchapter E
or E-1, Chapter 29;
(I) extracurricular activities under Section
33.081;
(J) discipline management practices or behavior
management techniques under Section 37.0021;
(K) health and safety under Chapter 38;
(L) public school accountability under
Subchapters B, C, D, F, G, and J, Chapter 39, and Chapter 39A;
(M) the requirement under Section 21.006 to
report an educator's misconduct;
(N) intensive programs of instruction under
Section 28.0213;
(O) the right of a school employee to report a
crime, as provided by Section 37.148; [and]
(P) bullying prevention policies and procedures
under Section 37.0832;
(Q) the right of a school under Section 37.0052
to place a student who has engaged in certain bullying behavior in a
disciplinary alternative education program or to expel the student;
[and]
(R) the right under Section 37.0151 to report to
local law enforcement certain conduct constituting assault or
harassment;
(S) [(P)] a parent's right to information
regarding the provision of assistance for learning difficulties to
the parent's child as provided by Sections 26.004(b)(11) and
26.0081(c) and (d);
(T) the early childhood literacy and mathematics
proficiency plans under Section 11.185; and
(U) the college, career, and military readiness
plans under Section 11.186.
SECTION 2.005. Section 21.048, Education Code, is amended
by adding Subsection (a-2) to read as follows:
(a-2) The board shall adopt rules that provide that in order
to teach any grade level from prekindergarten through grade six a
person must demonstrate proficiency in the science of teaching
reading on a certification examination for each class of
certificate issued by the board after January 1, 2021.
SECTION 2.006. Subchapter B, Chapter 21, Education Code, is
amended by adding Sections 21.063 and 21.064 to read as follows:
Sec. 21.063. TEACHER DESIGNATIONS ON CERTIFICATE. The
board shall place on or remove from a teacher's certificate the
appropriate designation issued to the teacher under Section
21.3521:
(1) after being notified by the agency of the issuance
or removal of the designation; or
(2) if the board determines that removal of the
designation is necessary because of action taken against the
teacher's certificate.
Sec. 21.064. LEGACY MASTER TEACHER CERTIFICATIONS. (a)
The board shall recognize a master teacher certificate issued under
former Section 21.0481, 21.0482, 21.0483, or 21.0484 until the
certificate expires. The board shall note a designation of
"legacy" on the certificate.
(b) A master teacher certificate described by Subsection
(a) is not eligible for funding under the teacher incentive
allotment under Section 48.112.
SECTION 2.007. Section 21.352(c), Education Code, is
amended to read as follows:
(c) Except as otherwise provided by this subsection,
appraisal must be done at least once for [during] each school year.
A teacher may be appraised less frequently if the teacher agrees in
writing and the teacher's most recent evaluation rated the teacher
as at least proficient, or the equivalent, and did not identify any
area of deficiency. A teacher who is appraised less frequently than
annually must be appraised at least once during each period of five
school years. The district shall maintain a written copy of the
evaluation of each teacher's performance in the teacher's personnel
file. Each teacher is entitled to receive a written copy of the
evaluation promptly on its completion. After receiving a written
copy of the evaluation, a teacher is entitled to a second appraisal
by a different appraiser or to submit a written rebuttal to the
evaluation to be attached to the evaluation in the teacher's
personnel file. The evaluation and any rebuttal may be given to
another school district at which the teacher has applied for
employment at the request of that district.
SECTION 2.008. Subchapter H, Chapter 21, Education Code, is
amended by adding Section 21.3521 to read as follows:
Sec. 21.3521. LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM.
(a) Subject to Subsection (b), a school district or open-enrollment
charter school may designate a certified classroom teacher as a
master, exemplary, or recognized teacher for a five-year period
based on the results from single year or multiyear appraisals that
comply with Section 21.351 or 21.352.
(b) The commissioner shall establish performance and
validity standards for each local optional teacher designation
system. The performance standards:
(1) must provide a mathematical possibility that all
teachers eligible for a designation may earn the designation; and
(2) may not require a district to use an assessment
instrument adopted under Section 39.023 to evaluate teacher
performance.
(c) Notwithstanding performance standards established
under Subsection (b), a classroom teacher that holds a National
Board Certification issued by the National Board for Professional
Teaching Standards may be designated as recognized.
(d) The commissioner shall:
(1) ensure that local optional teacher designation
systems:
(A) meet the requirements of this section; and
(B) prioritize high needs campuses; and
(2) enter into a memorandum of understanding with
Texas Tech University to monitor the quality and fairness of local
optional teacher designation systems.
(e) The agency shall develop and provide technical
assistance for school districts and open-enrollment charter
schools that request assistance in implementing a local optional
teacher designation system, including assistance in prioritizing
high needs campuses.
(f) A teacher has no vested property right in a teacher
designation assigned to the teacher under this section. A teacher
designation issued under this section is void in the determination
that the designation was issued improperly. Subchapters C through
H, Chapter 2001, Government Code, do not apply to the voiding of a
teacher designation under this subsection.
(g) The agency shall periodically conduct evaluations of
the effectiveness of the local optional teacher designation systems
under this section and the teacher incentive allotment under
Section 48.112 and report the results of the evaluations to the
legislature. A school district or open-enrollment charter school
that has implemented a local optional teacher designation system or
received funds under the teacher incentive allotment shall
participate in the evaluations.
(h) The agency shall collect information necessary to
implement this section. Information otherwise confidential remains
confidential and is not subject to Chapter 552, Government Code.
(i) The commissioner may adopt fees to implement this
section. A fee adopted by the agency under this section is not
subject to Sections 2001.0045 and 2001.0221, Government Code.
(j) The commissioner may adopt rules to implement this
section. A decision made by the commissioner under this section is
final and may not be appealed.
SECTION 2.009. Section 21.458, Education Code, is amended
by adding Subsections (a-1), (b-1), (f), (f-1), and (g) and
amending Subsections (b) and (d) to read as follows:
(a-1) To be assigned as a mentor, a teacher must agree to
serve as a mentor teacher for at least one school year. The
assignment must begin not later than the 30th day of employment of
the classroom teacher to whom the mentor teacher is assigned. A
district must agree to assign a mentor to a new classroom teacher
for at least two school years.
(b) The commissioner shall adopt rules necessary to
administer this section, including rules concerning the duties and
qualifications of a teacher who serves as a mentor and the number of
classroom teachers that may be assigned to a mentor. The rules
concerning qualifications must require that to serve as a mentor a
teacher must:
(1) complete a research-based mentor and induction
training program approved by the commissioner;
(2) complete a mentor training program provided by the
district; [and]
(3) have at least three complete years of teaching
experience with a superior record of assisting students, as a
whole, in achieving improvement in student performance; and
(4) demonstrate interpersonal skills, instructional
effectiveness, and leadership skills.
(b-1) A school district must provide training to mentor
teachers and any appropriate district and campus employees who work
with the classroom teacher or supervise the classroom teacher. The
training must be completed by the mentor teacher and the district
and campus employees before the beginning of the school year. The
district shall also provide supplemental training to mentor
teachers and employees during the school year. The training must
include content related to best mentorship practices.
(d) In adopting rules under this section [Subsection (c)],
the commissioner shall rely on research-based mentoring programs
that, through external evaluation, have demonstrated success.
(f) A mentor teacher must meet with each classroom teacher
assigned to the mentor not less than 12 hours each semester.
Observations of the mentor by the classroom teacher being mentored
or of the classroom teacher being mentored by the mentor may count
toward the 12 hours of meeting time required for the semester.
Except as provided by Subsection (f-1), the mentoring sessions must
address the following topics:
(1) orientation to the context, policies, and
practices of the school district;
(2) data-driven instructional practices;
(3) specific instructional coaching cycles, including
coaching regarding conferences between parents and the classroom
teacher;
(4) professional development; and
(5) professional expectations.
(f-1) Subject to approval by the agency, in determining the
topics to be addressed in the mentoring sessions, a school district
may create an appropriate curriculum that meets the district needs.
(g) A school district must:
(1) designate a specific time during the regularly
contracted school day for meetings between mentor teachers and
classroom teachers assigned to a mentor; and
(2) schedule release time or a reduced teaching load
for mentor teachers and classroom teachers under this section to
facilitate mentoring activities, including classroom observations
or participation in supportive coaching.
SECTION 2.010. Subchapter J, Chapter 21, Education Code, is
amended by adding Section 21.465 to read as follows:
Sec. 21.465. AUTISM TRAINING. (a) A school district may
provide a salary incentive or similar compensation to a teacher who
completes training provided by a regional education service center
relating to autism.
(b) A school district that decides to provide an incentive
or compensation under Subsection (a) shall adopt a policy to
implement this section.
SECTION 2.011. Effective September 1, 2020, Section 25.085,
Education Code, is amended by adding Subsection (i) to read as
follows:
(i) Notwithstanding any other provision of this section, a
student enrolled in a school district is not required to attend
school for any additional instructional days described by Section
48.0051.
SECTION 2.012. Section 28.006, Education Code, is amended
by amending Subsections (b), (c), (d), and (f) and adding
Subsections (b-1), (c-2), (c-3), and (l) to read as follows:
(b) The commissioner shall adopt a list of reading
instruments that a school district may use to diagnose student
reading development and comprehension. For use in diagnosing the
reading development and comprehension of kindergarten students,
the commissioner shall adopt a [include on the commissioner's list
at least two] multidimensional assessment tool that includes
[tools. A multidimensional assessment tool on the commissioner's
list must either include] a reading instrument and tests [test] at
least three developmental skills, including literacy[, or test at
least two developmental skills, other than literacy, and be
administered in conjunction with a separate reading instrument that
is on a list adopted under this subsection]. A multidimensional
assessment tool administered as provided by this subsection is
considered to be a reading instrument for purposes of this section.
A district-level committee established under Subchapter F, Chapter
11, may adopt a list of reading instruments for use in the district
in a grade level other than kindergarten in addition to the reading
instruments on the commissioner's list. Each reading instrument
adopted by the commissioner or a district-level committee must be
based on scientific research concerning reading skills development
and reading comprehension. A list of reading instruments adopted
under this subsection must provide for diagnosing the reading
development and comprehension of students participating in a
program under Subchapter B, Chapter 29.
(b-1) The commissioner may approve an alternative reading
instrument for use in diagnosing the reading development and
comprehension of kindergarten students that complies with the
requirements under Subsection (b).
(c) Each school district shall administer, at the
[kindergarten and] first and second grade levels, a reading
instrument on the list adopted by the commissioner or by the
district-level committee. The district shall administer the
reading instrument in accordance with the commissioner's
recommendations under Subsection (a)(1).
(c-2) Each school district shall administer at the
kindergarten level a reading instrument adopted by the commissioner
under Subsection (b) or approved by the commissioner under
Subsection (b-1). The district shall administer the reading
instrument in accordance with the commissioner's recommendations
under Subsection (a)(1).
(c-3) The commissioner by rule shall determine the
performance on the reading instrument adopted under Subsection (b)
that indicates kindergarten readiness.
(d) The superintendent of each school district shall:
(1) report to the commissioner and the board of
trustees of the district the results of the reading instruments;
(2) not later than the 60th calendar day after the date
on which a reading instrument was administered report, in writing,
to a student's parent or guardian the student's results on the
[reading] instrument; and
(3) using the school readiness certification system
provided to the school district in accordance with Section
29.161(e), report electronically each student's raw score on the
reading instrument to the agency for use in the school readiness
certification system.
(f) The agency shall ensure at least one reading instrument
for each grade level for which a reading instrument is required to
be administered under this section is available to school districts
at no cost. [This section may be implemented only if funds are
appropriated for administering the reading instruments. Funds,
other than local funds, may be used to pay the cost of administering
a reading instrument only if the instrument is on the list adopted
by the commissioner.]
(l) The commissioner may adopt rules as necessary to
implement this section. Section 2001.0045, Government Code, does
not apply to rules adopted under this subsection.
SECTION 2.013. Subchapter A, Chapter 28, Education Code, is
amended by adding Section 28.0062 to read as follows:
Sec. 28.0062. READING STANDARDS FOR KINDERGARTEN THROUGH
THIRD GRADE. (a) Each school district and open-enrollment charter
school shall:
(1) provide for the use of a phonics curriculum that
uses systematic direct instruction in kindergarten through third
grade to ensure all students obtain necessary early literacy
skills;
(2) ensure that:
(A) not later than the 2021-2022 school year,
each classroom teacher in kindergarten or first, second, or third
grade and each principal at a campus with kindergarten or first,
second, or third grade has attended a teacher literacy achievement
academy developed under Section 21.4552; and
(B) each classroom teacher and each principal
initially employed in a grade level or at a campus described by
Paragraph (A) for the 2021-2022 school year or a subsequent school
year has attended a teacher literacy achievement academy developed
under Section 21.4552 before the teacher's or principal's first
year of placement in that grade level or campus; and
(3) certify to the agency that the district or school:
(A) prioritizes placement of highly effective
teachers in kindergarten through second grade; and
(B) has integrated reading instruments used to
diagnose reading development and comprehension to support each
student in prekindergarten through third grade.
(b) The agency shall provide assistance to school districts
and open-enrollment charter schools in complying with the
requirements under this section.
(c) The agency shall:
(1) monitor the implementation of this section; and
(2) periodically report to the legislature on the
implementation of this section and the effectiveness of this
section in improving educational outcomes.
(d) The commissioner shall establish an advisory board to
assist the agency in fulfilling the agency's duties under this
section. Chapter 2110, Government Code, does not apply to the
advisory board.
(e) The commissioner may adopt rules to implement this
section.
SECTION 2.014. Section 28.025(c), Education Code, is
amended to read as follows:
(c) A person may receive a diploma if the person is eligible
for a diploma under Section 28.0251. In other cases, a student may
graduate and receive a diploma only if:
(1) the student successfully completes the curriculum
requirements identified by the State Board of Education under
Subsection (a) and complies with Sections 28.0256 and [Section]
39.025; or
(2) the student successfully completes an
individualized education program developed under Section 29.005.
SECTION 2.015. Subchapter B, Chapter 28, Education Code, is
amended by adding Section 28.0256 to read as follows:
Sec. 28.0256. FINANCIAL AID APPLICATION REQUIREMENT FOR
HIGH SCHOOL GRADUATION. (a) Before graduating from high school,
each student must complete and submit a free application for
federal student aid (FAFSA) or a Texas application for state
financial aid (TASFA).
(b) A student is not required to comply with Subsection (a)
if:
(1) the student's parent or other person standing in
parental relation submits a signed form indicating that the parent
or other person authorizes the student to decline to complete and
submit the financial aid application;
(2) the student signs and submits the form described
by Subdivision (1) on the student's own behalf if the student is 18
years of age or older or the student's disabilities of minority have
been removed for general purposes under Chapter 31, Family Code; or
(3) a school counselor authorizes the student to
decline to complete and submit the financial aid application for
good cause, as determined by the school counselor.
(c) A school district or open-enrollment charter school
shall adopt a form to be used for purposes of Subsection (b). The
form must be:
(1) approved by the agency; and
(2) made available in English, Spanish, and any other
language spoken by a majority of the students enrolled in a
bilingual education or special language program under Subchapter B,
Chapter 29, in the district or school.
(d) If a school counselor notifies a school district whether
a student has complied with this section for purposes of
determining whether the student meets high school graduation
requirements under Section 28.025, the school counselor may only
indicate whether the student has complied with this section and may
not indicate the manner in which the student complied.
(e) The commissioner shall adopt rules as necessary to
implement this section, including rules to:
(1) establish:
(A) a timeline for:
(i) the distribution to students of the
free application for federal student aid or Texas application for
state financial aid and the form adopted under Subsection (c); and
(ii) the submission of a form under
Subsection (b);
(B) standards regarding the information that a
school district or open-enrollment charter school must provide to
students regarding:
(i) in accordance with Section
33.007(b)(5), instructions for filling out the free application for
federal student aid or Texas application for state financial aid;
and
(ii) the options available to a student
under Subsection (b) if the student wishes to decline to complete
and submit a financial aid application; and
(C) the method by which a student must provide to
a school district or open-enrollment charter school proof that the
student has completed and submitted the free application for
federal student aid or Texas application for state financial aid as
required by this section;
(2) require each school district to report to the
agency:
(A) the number of students who completed and
submitted a financial aid application under Subsection (a); and
(B) the number of students who received an
exception from complying with Subsection (a) under Subsection (b);
and
(3) ensure 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 any state law relating to the privacy of student
information.
(f) The agency shall establish an advisory committee to
assist the agency in adopting rules under Subsection (e) to
implement this section and to develop recommendations for that
purpose. The advisory committee is composed of:
(1) school counselors;
(2) school administrators; and
(3) stakeholders to represent the needs of interested
students.
(g) Not later than January 1, 2021, the agency shall report
the advisory committee's recommendations to the standing committee
of each house of the legislature with jurisdiction over public
education. Subsection (f) and this subsection expire January 1,
2023.
SECTION 2.016. Subchapter B, Chapter 29, Education Code, is
amended by adding Section 29.065 to read as follows:
Sec. 29.065. ASSISTANCE BY AGENCY. The agency shall
develop tools to assist school districts and open-enrollment
charter schools in implementing bilingual education and special
language programs under this chapter.
SECTION 2.017. Section 29.122, Education Code, is amended
to read as follows:
Sec. 29.122. ESTABLISHMENT. (a) Using criteria established
by the State Board of Education, each school district shall adopt a
process for identifying and serving gifted and talented students in
the district and shall establish a program for those students in
each grade level. A district may establish a shared services
arrangement program with one or more other districts.
(b) Each school district shall adopt a policy regarding the
use of funds to support the district's program for gifted and
talented students.
SECTION 2.018. Subchapter D, Chapter 29, Education Code, is
amended by adding Section 29.124 to read as follows:
Sec. 29.124. CERTIFICATION AND REPORTING REQUIRED. (a)
Each school district shall annually certify to the commissioner
that the district has established a program for gifted and talented
students as required by this subchapter and that the program is
consistent with the state plan developed under Section 29.123.
(b) If the commissioner determines that a school district
has failed to comply with Subsection (a) for a school year, the
commissioner shall reduce the total amount of funding to which the
district is entitled under Chapter 48 for that school year by an
amount equal to the basic allotment multiplied by the product of:
(1) 0.12; and
(2) an amount equal to five percent of the students in
average daily attendance in the district.
(c) The commissioner may restore to a school district all or
part of the funding withheld from the district's entitlement under
Subsection (b) if during the school year the district complies with
Subsection (a).
(d) At the same time that a school district makes the
certification required under Subsection (a), the district shall
report to the commissioner regarding the use of funds on the
district's program for gifted and talented students as provided by
State Board of Education rule.
(e) Nothing in this section may be construed as limiting the
number of students that a school district may identify as gifted and
talented or serve under the district's program for gifted and
talented students.
SECTION 2.019. Section 29.153, Education Code, is amended
by amending Subsections (c) and (d) and adding Subsections (c-1),
(d-1), (d-2), and (g) to read as follows:
(c) A prekindergarten class under this section may [shall]
be operated on a half-day basis for children under four years of age
and shall be operated on a full-day basis for children who are at
least four years of age. 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.
(c-1) A prekindergarten class under this section for
children who are least four years of age must comply with the
program standards required for high quality prekindergarten
programs under Subchapter E-1.
(d) Subject to Subsections (d-1) and (d-2), on [On]
application of a district, the commissioner shall [may] exempt a
district from the application of all or any part of this section,
including all or any part of Subchapter E-1 for a prekindergarten
class described by Subsection (c-1), if the commissioner determines
that:
(1) the district would be required to construct
classroom facilities in order to provide prekindergarten classes;
or
(2) implementing any part of this section would result
in fewer eligible children being enrolled in a prekindergarten
class under this section.
(d-1) A district may not receive an exemption under
Subsection (d) unless the district has solicited and considered at
a public meeting proposals for partnerships with public or private
entities regarding prekindergarten classes required under this
section. A decision of the board of trustees regarding a
partnership described by this subsection is final.
(d-2) An exemption under Subsection (d) may not be granted
for a period longer than three school years and may be renewed only
once.
(g) Before a school district or open-enrollment charter
school may construct, repurpose, or lease a classroom facility, or
issue bonds for the construction or repurposing of a classroom
facility, to provide the prekindergarten classes required under
this section, the district or school must solicit and consider
proposals for partnerships to provide those classes with
community-based child-care providers who:
(1) are a Texas Rising Star Program provider with a
three-star certification or higher;
(2) are nationally accredited;
(3) are a Head Start program provider;
(4) are a Texas School Ready! participant; or
(5) meet the requirements under Section 29.1532.
SECTION 2.020. Section 29.1531(a), Education Code, is
amended to read as follows:
(a) A school district may offer on a tuition basis or use
district funds to provide:
(1) an additional half-day of prekindergarten classes
to children who are eligible for classes under Section 29.153 and
are under four years of age; and
(2) half-day and full-day prekindergarten classes to
children not eligible for classes under Section 29.153.
SECTION 2.021. Section 29.1532(c), Education Code, is
amended to read as follows:
(c) A school district that offers prekindergarten classes[,
including a high quality prekindergarten program class under
Subchapter E-1,] shall include the following information in the
district's Public Education Information Management System (PEIMS)
report:
(1) demographic information, as determined by the
commissioner, on students enrolled in district and campus
prekindergarten classes, including the number of students who are
eligible for classes under Section 29.153;
(2) the numbers of half-day and full-day
prekindergarten classes offered by the district and campus;
(3) the number of half-day prekindergarten classes for
which the district has received an exemption from full-day
operation under Section 29.153(d);
(4) the sources of funding for the prekindergarten
classes;
(5) [(4)] the class size and ratio of instructional
staff to students for each prekindergarten program class offered by
the district and campus;
(6) [(5)] if the district elects to administer an
assessment instrument under Section 29.169 to students enrolled in
district and campus prekindergarten program classes, a description
and the results of each type of assessment instrument; and
(7) [(6)] curricula used in the district's
prekindergarten program classes.
SECTION 2.022. Section 29.1543, Education Code, is amended
to read as follows:
Sec. 29.1543. EARLY EDUCATION REPORTS. The agency shall
produce and make available to the public on the agency's Internet
website annual district and campus-level reports containing
information from the previous school year on early education in
school districts and open-enrollment charter schools. A report
under this section must contain:
(1) the information required by Section 29.1532(c) to
be reported through the Public Education Information Management
System (PEIMS);
(2) a description of the diagnostic reading
instruments administered in accordance with Section 28.006(c) or
(c-2);
(3) the number of students who were administered a
diagnostic reading instrument administered in accordance with
Section 28.006(c) or (c-2);
(4) the number of students whose scores from a
diagnostic reading instrument administered in accordance with
Section 28.006(c) or (c-2) indicate reading proficiency; [and]
(5) the number of kindergarten students who were
enrolled in a prekindergarten program in the previous school year
in the same district or school as the district or school in which
the student attends kindergarten;
(6) the number and percentage of students who perform
satisfactorily on the third grade reading or mathematics assessment
instrument administered under Section 39.023, disaggregated by
whether the student was eligible for free prekindergarten under
Section 29.153;
(7) the number of students described by Subdivision
(6) who attended kindergarten in the district, disaggregated by:
(A) whether the student met the kindergarten
readiness standard on the reading instrument adopted under Section
28.006;
(B) whether the student attended prekindergarten
in the district; and
(C) the type of prekindergarten the student
attended, if applicable; and
(8) the information described by Subdivisions (6) and
(7) disaggregated by whether the student is educationally
disadvantaged.
SECTION 2.023. Subchapter E, Chapter 29, Education Code, is
amended by adding Section 29.1544 to read as follows:
Sec. 29.1544. REPORTING OF CERTAIN INFORMATION REGARDING
PREKINDERGARTEN PROGRAMS; AGENCY REPORT. (a) The agency by rule
shall require each school district that offers a prekindergarten
program under Section 29.153 and each private entity that provides
a prekindergarten program under contract with a school district to
report the following information in the form and manner prescribed
by the agency for each prekindergarten class offered by the
district or private entity:
(1) the number of students in each prekindergarten
class;
(2) the number of certified teachers in each
prekindergarten class;
(3) the number of teacher's aides in each
prekindergarten class;
(4) whether each prekindergarten class is full-day or
half-day; and
(5) if the district offers half-day classes, whether
the district offers two half-day classes per day.
(b) From the information submitted under Subsection (a),
the agency shall determine the total number of teachers and
teacher's aides in prekindergarten classes in this state.
(c) From the information submitted under Subsection (a) and
for purposes of calculating the student/teacher ratio for each
prekindergarten class offered by a school district or private
entity that provides a prekindergarten program under contract with
a school district, the agency shall count each teacher or teacher's
aide:
(1) once for a full-day class; and
(2) twice for a half-day class if the district offers
two half-day classes per day.
(d) Not later than August 1 of each year, the agency shall
prepare and submit a report to the legislature based on the
information collected under Subsection (a).
SECTION 2.024. Section 29.162, Education Code, is amended
to read as follows:
Sec. 29.162. RULES [DETERMINATION OF FULL-DAY AND
HALF-DAY]. (a) The commissioner may adopt rules for this
subchapter, including rules establishing full-day and half-day
minutes of operation requirements as provided by Section 25.081.
(b) Section 2001.0045, Government Code, does not apply to
rules adopted under this section.
SECTION 2.025. The heading to Subchapter E-1, Chapter 29,
Education Code, is amended to read as follows:
SUBCHAPTER E-1. HIGH QUALITY PREKINDERGARTEN [GRANT] PROGRAM
REQUIREMENTS
SECTION 2.026. Section 29.164, Education Code, is amended
to read as follows:
Sec. 29.164. DEFINITION. In this subchapter, "program"
means a high quality prekindergarten [grant] program required under
Section 29.153(c-1) to be provided free of tuition or fees in
accordance with this subchapter.
SECTION 2.027. Section 29.167(a), Education Code, is
amended to read as follows:
(a) A school district shall select and implement a
curriculum for a prekindergarten [grant] program [under this
subchapter] that:
(1) includes the prekindergarten guidelines
established by the agency;
(2) measures the progress of students in meeting the
recommended learning outcomes; and
(3) does not use national curriculum standards
developed by the Common Core State Standards Initiative.
SECTION 2.028. Section 29.170(a), Education Code, is
amended to read as follows:
(a) The commissioner shall evaluate the use and
effectiveness of prekindergarten funding [provided under this
subchapter] in improving student learning. The commissioner shall
identify effective instruction strategies implemented by school
districts under this subchapter.
SECTION 2.029. Section 29.171(a), Education Code, is
amended to read as follows:
(a) A school district that offers a prekindergarten
[participating in the grant] program under this subchapter may
enter into a contract with an eligible private provider to provide
services or equipment for the program.
SECTION 2.030. Section 29.172, Education Code, is amended
to read as follows:
Sec. 29.172. RULES. (a) The commissioner may adopt rules
necessary to implement this subchapter.
(b) Section 2001.0045, Government Code, does not apply to
rules adopted under this section.
SECTION 2.031. Section 29.190, Education Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A student is entitled to a subsidy under this section
if:
(1) the student:
(A) successfully completes the career and
technology program of a school district in which the student
receives training and instruction for employment; or
(B) is enrolled in a special education program
under Subchapter A; and
(2) the student passes a certification examination to
qualify for a license or certificate that is an industry
certification for purposes of Section 39.053(c)(1)(B)(v),
administered while the student is enrolled in a school district.
(a-1) A student may not receive more than one subsidy under
this section.
SECTION 2.032. Subchapter F, Chapter 29, Education Code, is
amended by adding Section 29.194 to read as follows:
Sec. 29.194. SUMMER CAREER AND TECHNOLOGY EDUCATION GRANT
PROGRAM. (a) From funds appropriated or available for the purpose,
the commissioner, in cooperation with an appropriate private
entity, shall establish a grant program to provide funding to
school districts for career and technology education courses
offered during the summer.
(b) The commissioner may solicit and accept gifts,
donations, or other contributions for the grant program established
under this section.
(c) The commissioner may adopt rules as necessary to
implement this section.
SECTION 2.033. Subchapter Z, Chapter 29, Education Code, is
amended by adding Section 29.924 to read as follows:
Sec. 29.924. BLENDED LEARNING GRANT PROGRAM. (a) In this
section, "blended learning" means an instructional delivery method
that combines classroom and online instruction.
(b) From funds appropriated or available for purposes of
this section, the commissioner shall establish a grant program to
assist school districts and open-enrollment charter schools in
developing and implementing effective blended learning models,
including an innovative mathematics instructional program at a
campus designated as a mathematics innovation zone as provided by
Section 28.020. In awarding grants under the program, the
commissioner shall give priority to school districts and
open-enrollment charter schools that have the highest enrollment of
students who are educationally disadvantaged.
(c) A school district or open-enrollment charter school
that receives a grant under this section must:
(1) develop a plan to implement a blended learning
model that meets the requirements under Subsection (d);
(2) provide training to teachers and other relevant
personnel on effective blended learning practices using a program
approved by the commissioner for that purpose;
(3) after completion of the training under Subdivision
(2):
(A) certify to the agency that the blended
learning model has been implemented; and
(B) immediately following the fourth school year
of implementation, submit to the agency a report on student
outcomes under the blended learning model; and
(4) provide any other information to the agency as
necessary for the implementation of this section.
(d) A plan to implement a blended learning model developed
under Subsection (c) must:
(1) during the first year require implementation of
the model across an entire grade level at a campus and permit
subsequent expansion of the model to additional grade levels at the
campus or, if the campus has achieved full implementation of the
model across all grade levels, to additional campuses in a manner
that provides students a consistent learning experience;
(2) require teachers to differentiate instruction for
all students in a grade level using the blended learning model,
including by:
(A) using curricula and assessments that allow
each student to progress at the student's pace based on
demonstrated proficiency;
(B) providing learning opportunities that give
students, in collaboration with the teacher, control over the time,
place, path, and pace of the student's learning; and
(C) allocating a certain amount of instructional
preparation time to collaborating with students and developing
blended learning lesson plans and activities driven by individual
student needs;
(3) provide teachers and other relevant personnel with
professional development opportunities regarding blended learning;
and
(4) require the use of a proficiency-based assessment
to inform instruction and provide teachers with relevant
information regarding strengths and gaps in a student's learning
and proficiency in the essential knowledge and skills.
(e) Funds awarded under the grant program may be used only
to implement a program under this section and satisfy the
requirements under Subsection (c).
(f) A school district or open-enrollment charter school may
receive a grant under this section for not more than four
consecutive school years.
(g) The commissioner shall adopt rules as necessary to
implement this section, including rules establishing an
application and selection process for awarding grants under this
section and a list of programs that may be used for training under
Subsection (c)(2). In adopting rules under this subsection, the
commissioner may not impose any requirements on a school district's
or open-enrollment charter school's plan to implement a blended
learning model not listed under Subsection (d).
SECTION 2.034. Sections 39.0261(a), (e), and (f), Education
Code, are amended to read as follows:
(a) In addition to the assessment instruments otherwise
authorized or required by this subchapter:
(1) each school year and at state cost, a school
district may administer to students in the spring of the eighth
grade an established, valid, reliable, and nationally
norm-referenced preliminary college preparation assessment
instrument for the purpose of diagnosing the academic strengths and
deficiencies of students before entrance into high school;
(2) each school year and at state cost, a school
district may administer to students in the 10th grade an
established, valid, reliable, and nationally norm-referenced
preliminary college preparation assessment instrument for the
purpose of measuring a student's progress toward readiness for
college and the workplace; and
(3) high school students in the spring of the 11th
grade or during the 12th grade may select and take once, at state
cost:
(A) [,] one of the valid, reliable, and
nationally norm-referenced assessment instruments used by colleges
and universities as part of their undergraduate admissions
processes; or
(B) the assessment instrument designated by the
Texas Higher Education Coordinating Board under Section 51.334.
(e) Subsection (a)(3) does not prohibit a high school
student [in the spring of the 11th grade or during the 12th grade]
from selecting and taking, at the student's own expense, an
assessment instrument described by that subdivision [one of the
valid, reliable, and nationally norm-referenced assessment
instruments used by colleges and universities as part of their
undergraduate admissions processes more than once].
(f) The provisions of this section regarding assessment
instruments administered under Subsection (a)(1) or (2) apply only
if the legislature appropriates funds for those purposes [of this
section].
SECTION 2.035. Section 39.306(a), Education Code, is
amended to read as follows:
(a) Each board of trustees shall publish an annual report
describing the educational performance of the district and of each
campus in the district that includes uniform student performance
and descriptive information as determined under rules adopted by
the commissioner. The annual report must also include:
(1) campus performance objectives established under
Section 11.253 and the progress of each campus toward those
objectives, which shall be available to the public;
(2) information indicating the district's
accreditation status and identifying each district campus awarded a
distinction designation under Subchapter G or considered an
unacceptable campus under Chapter 39A;
(3) the district's current special education
compliance status with the agency;
(4) a statement of the number, rate, and type of
violent or criminal incidents that occurred on each district
campus, to the extent permitted under the Family Educational Rights
and Privacy Act of 1974 (20 U.S.C. Section 1232g);
(5) information concerning school violence prevention
and violence intervention policies and procedures that the district
is using to protect students;
(6) the findings that result from evaluations
conducted under the Safe and Drug-Free Schools and Communities Act
of 1994 (20 U.S.C. Section 7101 et seq.); [and]
(7) information received under Section 51.403(e) for
each high school campus in the district, presented in a form
determined by the commissioner; and
(8) the progress of the district and each campus in the
district toward meeting the goals set in the district's:
(A) early childhood literacy and mathematics
proficiency plans adopted under Section 11.185; and
(B) college, career, and military readiness
plans adopted under Section 11.186.
SECTION 2.036. Subchapter Z, Chapter 39A, Education Code,
is amended by adding Section 39A.907 to read as follows:
Sec. 39A.907. ASSESSMENT INSTRUMENT STUDY. (a) The
commissioner shall enter into a memorandum of understanding with a
public institution of higher education to conduct a study to
determine whether, for each applicable grade level, each assessment
instrument administered under Section 39.023(a) during the
2018-2019 school year or scheduled to be administered during the
2019-2020 school year:
(1) is written at the appropriate reading level for
students in that grade level; and
(2) includes only:
(A) passages, questions, answers, and other
content aligned with the essential knowledge and skills adopted by
the State Board of Education for the applicable subject for the
grade level at which the assessment instrument is administered or
for any previous grade level; and
(B) passages written at a reading level not
higher than the grade level at which the assessment instrument is
administered.
(b) Not later than December 1, 2019, the commissioner shall
submit a report to the legislature and the presiding officer of each
legislative standing committee with jurisdiction over primary and
secondary education that includes the results of the study.
ARTICLE 2A. PROVISIONS REGARDING EMPLOYING, TERMINATING, AND
REPORTING MISCONDUCT OF PUBLIC SCHOOL AND RELATED ENTITY PERSONNEL
SECTION 2A.001. Section 12.027(a), Education Code, is
amended to read as follows:
(a) The State Board of Education may place on probation or
revoke a home-rule school district charter of a school district if
the board determines that the district:
(1) committed a material violation of the charter,
including by failure to comply with the duty to discharge or refuse
to hire certain employees or applicants for employment, as provided
by Section 12.0271;
(2) failed to satisfy generally accepted accounting
standards of fiscal management; or
(3) failed to comply with this subchapter or other
applicable federal or state law or rule.
SECTION 2A.002. Subchapter B, Chapter 12, Education Code,
is amended by adding Section 12.0271 to read as follows:
Sec. 12.0271. FAILURE TO DISCHARGE OR REFUSE TO HIRE
CERTAIN EMPLOYEES OR APPLICANTS. A home-rule school district
commits a material violation of the school district's charter if
the school district fails to comply with the duty to discharge or
refuse to hire certain employees or applicants for employment under
Section 22.085 or 22.092.
SECTION 2A.003. Section 12.056(b), Education Code, is
amended to read as follows:
(b) A campus or program for which a charter is granted under
this subchapter is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) criminal history records under Subchapter C,
Chapter 22;
(C) high school graduation under Section 28.025;
(D) special education programs under Subchapter
A, Chapter 29;
(E) bilingual education under Subchapter B,
Chapter 29;
(F) prekindergarten programs under Subchapter E,
Chapter 29;
(G) extracurricular activities under Section
33.081;
(H) health and safety under Chapter 38; [and]
(I) public school accountability under
Subchapters B, C, D, F, and J, Chapter 39, and Chapter 39A; and
(J) the duty to discharge or refuse to hire
certain employees or applicants for employment under Section
12.1059.
SECTION 2A.004. Section 12.063(a), Education Code, is
amended to read as follows:
(a) A board of trustees may place on probation or revoke a
charter it grants if the board determines that the campus or
program:
(1) committed a material violation of the charter,
including by failure to comply with the duty to discharge or refuse
to hire certain employees or applicants for employment, as provided
by Section 12.0631;
(2) failed to satisfy generally accepted accounting
standards of fiscal management; or
(3) failed to comply with this subchapter, another
law, or a state agency rule.
SECTION 2A.005. Subchapter C, Chapter 12, Education Code,
is amended by adding Section 12.0631 to read as follows:
Sec. 12.0631. FAILURE TO DISCHARGE OR REFUSE TO HIRE
CERTAIN EMPLOYEES OR APPLICANTS. A campus or campus program
granted a charter under this subchapter commits a material
violation of its charter if the campus or program fails to comply
with the duty to discharge or refuse to hire certain employees or
applicants for employment under Section 12.1059, 22.085, or 22.092.
SECTION 2A.006. Section 12.1059, Education Code, is amended
to read as follows:
Sec. 12.1059. REQUIREMENTS [AGENCY APPROVAL REQUIRED] FOR
EMPLOYMENT OF CERTAIN EMPLOYEES. A person may not be employed by or
serve as a teacher, librarian, educational aide, administrator, or
school counselor for an open-enrollment charter school unless:
(1) the person has been approved by the agency
following a review of the person's national criminal history record
information as provided by Section 22.0832; and
(2) the school has confirmed that the person is not
included in the registry under Section 22.092.
SECTION 2A.007. Section 12.115(a), Education Code, is
amended to read as follows:
(a) Except as provided by Subsection (c), the commissioner
shall revoke the charter of an open-enrollment charter school or
reconstitute the governing body of the charter holder if the
commissioner determines that the charter holder:
(1) committed a material violation of the charter,
including by a failure to:
(A) satisfy accountability provisions prescribed
by the charter; or
(B) comply with the duty to discharge or refuse
to hire certain employees or applicants for employment, as provided
by Section 12.1151;
(2) failed to satisfy generally accepted accounting
standards of fiscal management;
(3) failed to protect the health, safety, or welfare
of the students enrolled at the school;
(4) failed to comply with this subchapter or another
applicable law or rule;
(5) failed to satisfy the performance framework
standards adopted under Section 12.1181; or
(6) is imminently insolvent as determined by the
commissioner in accordance with commissioner rule.
SECTION 2A.008. Subchapter D, Chapter 12, Education Code,
is amended by adding Section 12.1151 to read as follows:
Sec. 12.1151. FAILURE TO DISCHARGE OR REFUSE TO HIRE
CERTAIN EMPLOYEES OR APPLICANTS. An open-enrollment charter school
commits a material violation of the school's charter if the school
fails to comply with the duty to discharge or refuse to hire certain
employees or applicants for employment under Section 12.1059,
22.085, or 22.092.
SECTION 2A.009. Section 12A.008, Education Code, is amended
by adding Subsection (b-1) to read as follows:
(b-1) The commissioner may terminate a district's
designation as a district of innovation if the district fails to
comply with the duty to discharge or refuse to hire certain
employees or applicants for employment under Section 12.1059,
applicable to the district under Section 12A.004(a)(1), or Section
22.085 or 22.092.
SECTION 2A.010. Section 21.006, Education Code, is amended
by amending Subsections (a), (b), (b-1), (b-2), (c-1), (d), and (e)
and adding Subsections (g-1) and (k) to read as follows:
(a) In this section:
(1) "Abuse"[, "abuse"] has the meaning assigned by
Section 261.001, Family Code, and includes any sexual conduct
involving an educator and a student or minor.
(2) "Other charter entity" means:
(A) a school district operating under a home-rule
school district charter adopted under Subchapter B, Chapter 12;
(B) a campus or campus program operating under a
charter granted under Subchapter C, Chapter 12; and
(C) an entity that contracts to partner with a
school district under Section 11.174(a)(2) to operate a district
campus under a charter granted to the entity by the district under
Subchapter C, Chapter 12.
(b) In addition to the reporting requirement under Section
261.101, Family Code, the superintendent or director of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement shall notify the State Board for Educator
Certification if:
(1) an educator employed by or seeking employment by
the school district, district of innovation, charter school, other
charter entity, service center, or shared services arrangement has
a criminal record and the school district, district of innovation,
charter school, other charter entity, service center, or shared
services arrangement obtained information about the educator's
criminal record by a means other than the criminal history
clearinghouse established under Section 411.0845, Government Code;
(2) an educator's employment at the school district,
district of innovation, charter school, other charter entity,
service center, or shared services arrangement was terminated and
there is evidence that the educator:
(A) abused or otherwise committed an unlawful act
with a student or minor;
(A-1) was involved in a romantic relationship
with or solicited or engaged in sexual contact with a student or
minor;
(B) possessed, transferred, sold, or distributed
a controlled substance, as defined by Chapter 481, Health and
Safety Code, or by 21 U.S.C. Section 801 et seq.;
(C) illegally transferred, appropriated, or
expended funds or other property of the school district, district
of innovation, charter school, other charter entity, service
center, or shared services arrangement;
(D) attempted by fraudulent or unauthorized
means to obtain or alter a professional certificate or license for
the purpose of promotion or additional compensation; or
(E) committed a criminal offense or any part of a
criminal offense on school property or at a school-sponsored event;
(3) the educator resigned and there is evidence that
the educator engaged in misconduct described by Subdivision (2); or
(4) the educator engaged in conduct that violated the
assessment instrument security procedures established under
Section 39.0301.
(b-1) A superintendent or director of a school district,
district of innovation, open-enrollment charter school, other
charter entity, regional education service center, or shared
services arrangement shall complete an investigation of an educator
that involves evidence that the educator may have engaged in
misconduct described by Subsection (b)(2)(A) or (A-1), despite the
educator's resignation from employment before completion of the
investigation.
(b-2) The principal of a school district, district of
innovation, [or] open-enrollment charter school, or other charter
entity campus must notify the superintendent or director of the
school district, district of innovation, [or] charter school, or
other charter entity not later than the seventh business day after
the date:
(1) of an educator's termination of employment or
resignation following an alleged incident of misconduct described
by Subsection (b); or
(2) the principal knew about an educator's criminal
record under Subsection (b)(1).
(c-1) The report under Subsection (c):
(1) must be:
(A) [(1)] in writing; and
(B) [(2)] in a form prescribed by the board; and
(2) may be filed through the Internet portal developed
and maintained by the State Board for Educator Certification under
Subsection (g-1).
(d) The superintendent or director shall notify the board of
trustees or governing body of the school district, open-enrollment
charter school, other charter entity, regional education service
center, or shared services arrangement and the educator of the
filing of the report required by Subsection (c).
(e) A superintendent, director, or principal of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement who in good faith and while acting in an
official capacity files a report with the State Board for Educator
Certification under this section or communicates with another
superintendent, director, or principal concerning an educator's
criminal record or alleged incident of misconduct is immune from
civil or criminal liability that might otherwise be incurred or
imposed.
(g-1) The State Board for Educator Certification shall
develop and maintain an Internet portal through which a report
required under Subsection (c) may be confidentially and securely
filed.
(k) The commissioner may review the records of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement to ensure compliance with the requirement to
report misconduct under this section.
SECTION 2A.011. Section 21.0061, Education Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The board of trustees or governing body of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement shall adopt a policy under which notice is
provided to the parent or guardian of a student with whom an
educator is alleged to have engaged in misconduct described by
Section 21.006(b)(2)(A) or (A-1) informing the parent or guardian:
(1) that the alleged misconduct occurred;
(2) whether the educator was terminated following an
investigation of the alleged misconduct or resigned before
completion of the investigation; and
(3) whether a report was submitted to the State Board
for Educator Certification concerning the alleged misconduct.
(c) In this section, "other charter entity" has the meaning
assigned by Section 21.006.
SECTION 2A.012. Subchapter B, Chapter 21, Education Code,
is amended by adding Section 21.0585 to read as follows:
Sec. 21.0585. NOTICE TO AGENCY REGARDING REVOCATION OF
CERTIFICATE OR PERMIT FOR CERTAIN MISCONDUCT. The board shall
promptly notify the agency for purposes of Section 22.092 if the
board revokes a certificate or permit of a person on a finding that
the person engaged in misconduct described by Section
21.006(b)(2)(A) or (A-1).
SECTION 2A.013. Subchapter C, Chapter 22, Education Code,
is amended by adding Sections 22.0815 and 22.0825 to read as
follows:
Sec. 22.0815. APPLICABILITY OF SUBCHAPTER TO DISTRICTS OF
INNOVATION AND OTHER CHARTER ENTITIES. (a) In this section, "other
charter entity" has the meaning assigned by Section 21.006.
(b) A prohibition, restriction, or requirement imposed by
this subchapter on an open-enrollment charter school applies to the
same extent to a district of innovation or other charter entity.
(c) The failure of a district of innovation to provide
information required under Section 22.0832 may result in
termination of the district's designation as a district of
innovation.
Sec. 22.0825. ACCESS TO CRIMINAL HISTORY RECORDS BY TEXAS
EDUCATION AGENCY. (a) In this section, "other charter entity" has
the meaning assigned by Section 21.006.
(b) The agency shall subscribe to the criminal history
clearinghouse as provided by Section 411.0845, Government Code, and
may obtain from any law enforcement or criminal justice agency all
criminal history record information and all records contained in
any closed criminal investigation file that relate to a specific
applicant for employment or current or former employee of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement.
SECTION 2A.014. The heading to Section 22.085, Education
Code, is amended to read as follows:
Sec. 22.085. EMPLOYEES AND APPLICANTS CONVICTED OF OR
PLACED ON DEFERRED ADJUDICATION COMMUNITY SUPERVISION FOR CERTAIN
OFFENSES.
SECTION 2A.015. Sections 22.085(a) and (e), Education Code,
are amended to read as follows:
(a) A school district, open-enrollment charter school, or
shared services arrangement shall discharge or refuse to hire an
employee or applicant for employment if the district, school, or
shared services arrangement obtains information through a criminal
history record information review that[:
[(1)] the employee or applicant has been:
(1) convicted of or placed on deferred adjudication
community supervision for[:
[(A) a felony offense under Title 5, Penal Code;
[(B)] an offense for [on conviction of] which a
defendant is required to register as a sex offender under Chapter
62, Code of Criminal Procedure; or
(2) convicted of:
(A) a felony offense under Title 5, Penal Code,
if the victim of the offense was under 18 years of age at the time
the offense was committed; or
(B) [(C)] an offense under the laws of another
state or federal law that is equivalent to an offense under
Subdivision (1) or Paragraph (A) [or (B); and
[(2) at the time the offense occurred, the victim of
the offense described by Subdivision (1) was under 18 years of age
or was enrolled in a public school].
(e) The State Board for Educator Certification may impose a
sanction on an educator who does not discharge an employee or refuse
to hire an applicant for employment if the educator knows or should
have known, through a criminal history record information review,
that the employee or applicant has been:
(1) convicted of or placed on deferred adjudication
community supervision for an offense described by Subsection
(a)(1); or
(2) convicted of an offense described by Subsection
(a)(2) [(a)].
SECTION 2A.016. Chapter 22, Education Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1. PERSONS NOT ELIGIBLE FOR EMPLOYMENT IN PUBLIC
SCHOOLS
Sec. 22.091. DEFINITION. In this subchapter, "other
charter entity" has the meaning assigned by Section 21.006.
Sec. 22.092. REGISTRY OF PERSONS NOT ELIGIBLE FOR
EMPLOYMENT IN PUBLIC SCHOOLS. (a) The agency shall maintain and
make available through the Internet portal developed and maintained
by the agency under Section 22.095 a registry of persons who are not
eligible to be employed by a school district, district of
innovation, open-enrollment charter school, other charter entity,
regional education service center, or shared services arrangement.
(b) A school district, district of innovation,
open-enrollment charter school, other charter entity, regional
education service center, or shared services arrangement shall
discharge or refuse to hire a person listed on the registry
maintained under this section.
(c) The registry maintained under this section must list the
following persons as not eligible to be employed by public schools:
(1) a person determined by the agency under Section
22.0832 as a person who would not be eligible for educator
certification under Subchapter B, Chapter 21;
(2) a person determined by the agency to be not
eligible for employment based on the person's criminal history
record information review, as provided by Section 22.0833;
(3) a person who is not eligible for employment based
on criminal history record information received by the agency under
Section 21.058(b);
(4) a person whose certification or permit issued
under Subchapter B, Chapter 21, is revoked by the State Board for
Educator Certification on a finding that the person engaged in
misconduct described by Section 21.006(b)(2)(A) or (A-1); and
(5) a person who is determined by the commissioner
under Section 22.094 to have engaged in misconduct described by
Section 22.093(c)(1)(A) or (B).
(d) The agency shall provide private schools and public
schools equivalent access to the registry maintained under this
section.
(e) The agency shall adopt rules as necessary to implement
this section.
Sec. 22.093. REQUIREMENT TO REPORT EMPLOYEE MISCONDUCT.
(a) In this section, "abuse" has the meaning assigned by Section
261.001, Family Code, and includes any sexual conduct involving a
student or minor.
(b) This section applies to a person who is employed by a
school district, district of innovation, open-enrollment charter
school, other charter entity, regional education service center, or
shared services arrangement and who does not hold a certification
or permit issued under Subchapter B, Chapter 21.
(c) In addition to the reporting requirement under Section
261.101, Family Code, the superintendent or director of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement shall notify the commissioner if:
(1) an employee's employment at the school district,
district of innovation, charter school, other charter entity,
service center, or shared services arrangement was terminated and
there is evidence that the employee:
(A) abused or otherwise committed an unlawful act
with a student or minor; or
(B) was involved in a romantic relationship with
or solicited or engaged in sexual contact with a student or minor;
or
(2) the employee resigned and there is evidence that
the employee engaged in misconduct described by Subdivision (1).
(d) A superintendent or director of a school district,
district of innovation, open-enrollment charter school, other
charter entity, regional education service center, or shared
services arrangement shall complete an investigation of an employee
that involves evidence that the employee may have engaged in
misconduct described by Subsection (c)(1)(A) or (B), despite the
employee's resignation from employment before completion of the
investigation.
(e) The principal of a school district, district of
innovation, open-enrollment charter school, or other charter
entity campus must notify the superintendent or director of the
school district, district of innovation, charter school, or other
charter entity not later than the seventh business day after the
date of an employee's termination of employment or resignation
following an alleged incident of misconduct described by Subsection
(c)(1)(A) or (B).
(f) The superintendent or director must notify the
commissioner by filing a report with the commissioner not later
than the seventh business day after the date the superintendent or
director receives a report from a principal under Subsection (e) or
knew about an employee's termination of employment or resignation
following an alleged incident of misconduct described by Subsection
(c)(1)(A) or (B). The report must be:
(1) in writing; and
(2) in a form prescribed by the commissioner.
(g) The superintendent or director shall notify the board of
trustees or governing body of the school district, district of
innovation, open-enrollment charter school, other charter entity,
regional education service center, or shared services arrangement
and the employee of the filing of the report required by Subsection
(f).
(h) A superintendent or director who in good faith and while
acting in an official capacity files a report with the commissioner
under Subsection (f) or a principal who in good faith and while
acting in an official capacity notifies a superintendent or
director under Subsection (e) is immune from civil or criminal
liability that might otherwise be incurred or imposed.
(i) The commissioner shall refer an educator who fails to
file a report in violation of Subsection (f) to the State Board for
Educator Certification, and the board shall determine whether to
impose sanctions against the educator.
(j) The name of a student or minor who is the victim of abuse
or unlawful conduct by an employee must be included in a report
filed under this section, but the name of the student or minor is
not public information under Chapter 552, Government Code.
(k) A superintendent or director required to file a report
under Subsection (f) commits an offense if the superintendent or
director fails to file the report by the date required by that
subsection with intent to conceal an employee's criminal record or
alleged incident of misconduct. A principal required to notify a
superintendent or director about an employee's alleged incident of
misconduct under Subsection (e) commits an offense if the principal
fails to provide the notice by the date required by that subsection
with intent to conceal an employee's alleged incident of
misconduct. An offense under this subsection is a state jail
felony.
(l) The commissioner may review the records of a school
district, district of innovation, open-enrollment charter school,
other charter entity, regional education service center, or shared
services arrangement to ensure compliance with the requirement to
report misconduct under this section.
(m) The commissioner shall adopt rules as necessary to
implement this section.
Sec. 22.094. NOTICE OF ALLEGED MISCONDUCT; INVESTIGATION;
HEARING. (a) A person described by Section 22.093(b) and who is
the subject of a report that alleges misconduct described by
Section 22.093(c)(1)(A) or (B) is entitled to a hearing on the
merits of the allegations of misconduct under the procedures
provided by Chapter 2001, Government Code, to contest the
allegation in the report.
(b) On receiving a report filed under Section 22.093(f), the
commissioner shall promptly send to the person who is the subject of
the report a notice that includes:
(1) a statement informing the person that the person
must request a hearing on the merits of the allegations of
misconduct within the period provided by Subsection (c);
(2) a request that the person submit a written
response within the period provided by Subsection (c) to show cause
why the commissioner should not pursue an investigation; and
(3) a statement informing the person that if the
person does not timely submit a written response to show cause as
provided by Subdivision (2), the agency shall provide information
indicating the person is under investigation in the manner provided
by Subsection (d).
(c) A person entitled to a hearing under Subsection (a) must
request a hearing and submit a written response to show cause not
later than the 10th day after the date the person receives the
notice from the commissioner provided under Subsection (b).
(d) If a person who receives notice provided under
Subsection (b) does not timely submit a written response to show
cause why the commissioner should not pursue an investigation, the
commissioner shall instruct the agency to make available through
the Internet portal developed and maintained by the agency under
Section 22.095 information indicating that the person is under
investigation for alleged misconduct.
(e) If a person entitled to a hearing under Subsection (a)
does not request a hearing as provided by Subsection (c), the
commissioner shall:
(1) based on the report filed under Section 22.093(f),
make a determination whether the person engaged in misconduct; and
(2) if the commissioner determines that the person
engaged in misconduct described by Section 22.093(c)(1)(A) or (B),
instruct the agency to add the person's name to the registry
maintained under Section 22.092.
(f) If a person entitled to a hearing under Subsection (a)
requests a hearing as provided by Subsection (c) and the final
decision in that hearing determines that the person engaged in
misconduct described by Section 22.093(c)(1)(A) or (B), the
commissioner shall instruct the agency to add the person's name to
the registry maintained under Section 22.092.
(g) If a person entitled to a hearing under Subsection (a)
requests a hearing as provided by Subsection (c) and the final
decision in that hearing determines that the person did not engage
in misconduct described by Section 22.093(c)(1)(A) or (B), the
commissioner shall instruct the agency to immediately remove from
the Internet portal developed and maintained by the agency under
Section 22.095 the information indicating that the person is under
investigation for alleged misconduct.
(h) The commissioner shall adopt rules as necessary to
implement this section.
Sec. 22.095. INTERNET PORTAL. The agency shall develop and
maintain an Internet portal through which:
(1) a report required under Section 22.093(f) may be
confidentially and securely filed; and
(2) the agency makes available:
(A) the registry of persons who are not eligible
to be employed in public schools as described by Section 22.092; and
(B) information indicating that a person is under
investigation for alleged misconduct in accordance with Section
22.094(d), provided that the agency must provide the information
through a procedure other than the registry described under
Paragraph (A).
Sec. 22.096. COMPLIANCE MONITORING. The agency shall
periodically conduct site visits and review the records of school
districts, districts of innovation, open-enrollment charter
schools, other charter entities, regional education service
centers, and shared services arrangements to ensure compliance with
Section 22.092(b).
SECTION 2A.017. Section 39.0302(a), Education Code, is
amended to read as follows:
(a) During an agency investigation or audit of a school
district under Section 39.0301(e) or (f), an accreditation
investigation under Section 39.057(a)(8) or (14), a compliance
review under Section 21.006(k), 22.093(l), or 22.096, or an
investigation by the State Board for Educator Certification of an
educator for an alleged violation of an assessment instrument
security procedure established under Section 39.0301(a), the
commissioner may issue a subpoena to compel the attendance of a
relevant witness or the production, for inspection or copying, of
relevant evidence that is located in this state.
ARTICLE 3. CONFORMING CHANGES
SECTION 3.001. Sections 7.055(b)(34) and (35), Education
Code, are amended to read as follows:
(34) The commissioner shall perform duties in
connection with the options for local revenue levels in excess of
entitlement [equalized wealth level] under Chapter 49 [41].
(35) The commissioner shall perform duties in
connection with the Foundation School Program as prescribed by
Chapter 48 [42].
SECTION 3.002. Sections 7.062(a) and (c), Education Code,
are amended to read as follows:
(a) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258
[42.2521], divided by the district's average daily attendance as
determined under Section 48.005 [42.005].
(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 48 [42] that permits or directs the use of
excess foundation school program funds, including Sections 48.258
[42.2517, 42.2521], 48.259 [42.2522], and 48.267 [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 48.266(f) [42.253(h)].
SECTION 3.003. Section 7.102(c)(30), Education Code, is
amended to read as follows:
(30) The board shall perform duties in connection with
the Foundation School Program as prescribed by Chapter 48 [42].
SECTION 3.004. Section 8.051(d), Education Code, is amended
to read as follows:
(d) Each regional education service center shall maintain
core services for purchase by school districts and campuses. The
core services are:
(1) training and assistance in:
(A) teaching each subject area assessed under
Section 39.023; and
(B) providing instruction in personal financial
literacy as required under Section 28.0021;
(2) training and assistance in providing a gifted and
talented program and each program that qualifies for a funding
allotment under Section 48.102 [42.151], 48.104 [42.152], or 48.105
[42.153, or 42.156];
(3) assistance specifically designed for a school
district or campus assigned an unacceptable performance rating
under Section 39.054;
(4) training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5) assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6) assistance in complying with state laws and rules.
SECTION 3.005. Section 8.056, Education Code, is amended to
read as follows:
Sec. 8.056. LIMITATION ON COMPENSATION FOR CERTAIN
SERVICES. A regional education service center that acts as a fiscal
agent or broker in connection with an agreement between two school
districts under Subchapter E, Chapter 49 [41], may not, unless
authorized in writing by the district receiving transferred funds
in accordance with the agreement:
(1) be compensated by the districts in an amount that
exceeds the administrative cost of providing the service; or
(2) otherwise retain for use by the center any amount
other than the compensation permitted under Subdivision (1) from
the funds transferred between the districts in accordance with the
agreement.
SECTION 3.006. 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 48.151(d) [42.155(d)];
(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 48.151 [42.155] and does not participate in a county
transportation system for which an allotment is provided under
Section 48.151(i) [42.155(i)], a reasonable fee for the
transportation of a student to and from the school the student
attends.
SECTION 3.007. Section 11.174(a), Education Code, is
amended to read as follows:
(a) A school district campus qualifies for an exemption from
intervention as provided by Subsection (f) and qualifies for
funding as provided by Section 48.252 [42.2511] if the board of
trustees of the district contracts to partner to operate the
district campus as provided by this section with:
(1) the governing body of an open-enrollment charter
school; or
(2) on approval by the commissioner, an entity granted
a charter by the district under Subchapter C, Chapter 12, that is
eligible to be awarded a charter under Section 12.101(a).
SECTION 3.008. Section 12.013(b), Education Code, is
amended to read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that fails to
satisfy any standard under Section 39.054(e);
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, [42, and] 43, and 48;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability under
Subchapters B, C, D, and J, Chapter 39, and Chapter 39A;
(Q) options for local revenue levels in excess of
entitlement [equalized wealth] under Chapter 49 [41];
(R) a bond or other obligation or tax rate under
Chapters [42,] 43, [and] 45, and 48; and
(S) purchasing under Chapter 44.
SECTION 3.009. Section 12.029(b), Education Code, is
amended to read as follows:
(b) Except as provided by Subchapter H, Chapter 49 [41], if
two or more school districts having different status, one of which
is home-rule school district status, consolidate into a single
district, the petition under Section 13.003 initiating the
consolidation must state the status for the consolidated district.
The ballot shall be printed to permit voting for or against the
proposition: "Consolidation of (names of school districts) into a
single school district governed as (status of school district
specified in the petition)."
SECTION 3.010. Section 13.051(c), Education Code, is
amended to read as follows:
(c) Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1) the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A) five percent of the district's taxable value
of all property in that district as determined under Subchapter M,
Chapter 403, Government Code; and
(B) $5,000 property value per student in average
daily attendance as determined under Section 48.005 [42.005]; and
(2) the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 3.011. Section 13.054(i), Education Code, is
amended to read as follows:
(i) The funding provided under Subsection (f), (g), or (h)
is in addition to other funding the district receives through other
provisions of this code, including Chapters 48 [41] and 49 [42].
SECTION 3.012. Sections 13.282(a) and (b), Education Code,
are amended to read as follows:
(a) The amount of incentive aid payments may not exceed the
difference between:
(1) the sum of the entitlements computed under Section
48.266 [42.253] that would have been paid to the districts included
in the reorganized district if the districts had not been
consolidated; and
(2) the amount to which the reorganized district is
entitled under Section 48.266 [42.253].
(b) If the reorganized district is not eligible for an
entitlement under Section 48.266 [42.253], the amount of the
incentive aid payments may not exceed the sum of the entitlements
computed under Section 48.266 [42.253] for which the districts
included in the reorganized district were eligible in the school
year when they were consolidated.
SECTION 3.013. Section 13.283, Education Code, is amended
to read as follows:
Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
shall be reduced in direct proportion to any reduction in the
average daily attendance as determined under Section 48.005
[42.005] of the reorganized school district for the preceding year.
SECTION 3.014. Section 21.402(a), Education Code, is
amended to read as follows:
(a) Except as provided by Subsection (e-1) or (f), a school
district must pay each classroom teacher, full-time librarian,
full-time school counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
48.051(a) [42.101(a)] or (b) for a school district with a
maintenance and operations tax rate at least equal to the state
maximum compressed tax rate, as defined by Section 48.051(a)
[42.101(a)].
SECTION 3.015. Section 21.4021(a), Education Code, is
amended to read as follows:
(a) Notwithstanding Section 21.401 and subject to Section
21.4022, the board of trustees of a school district may, in
accordance with district policy, implement a furlough program and
reduce the number of days of service otherwise required under
Section 21.401 by not more than six days of service during a school
year if the commissioner certifies in accordance with Section
48.010 [42.009] that the district will be provided with less state
and local funding for that year than was provided to the district
for the 2010-2011 school year.
SECTION 3.016. Section 25.001(a), Education Code, is
amended to read as follows:
(a) A person who, on the first day of September of any school
year, is at least five years of age and under 21 years of age, or is
at least 21 years of age and under 26 years of age and is admitted by
a school district to complete the requirements for a high school
diploma is entitled to the benefits of the available school fund for
that year. Any other person enrolled in a prekindergarten class
under Section 29.153 [or Subchapter E-1, Chapter 29,] is entitled
to the benefits of the available school fund.
SECTION 3.017. Section 25.008(b), Education Code, is
amended to read as follows:
(b) Subsection (a) does not apply to enrollment in a program
under Section 29.088 or [,] 29.090[, or 29.098] or in a similar
intensive program.
SECTION 3.018. Section 25.081(e), Education Code, is
amended to read as follows:
(e) A school district or education program is exempt from
the minimum minutes of operation requirement if the district's or
program's average daily attendance is calculated under Section
48.005(j) [42.005(j)].
SECTION 3.019. Section 25.081(f), Education Code, as added
by Chapter 851 (H.B. 2442), Acts of the 85th Legislature, Regular
Session, 2017, is amended to read as follows:
(f) The commissioner may proportionally reduce the amount
of funding a district receives under Chapter [41, 42, or] 46, 48, or
49 and the average daily attendance calculation for the district if
the district operates on a calendar that provides fewer minutes of
operation than required under Subsection (a).
SECTION 3.020. Sections 25.112(a) and (b), Education Code,
are amended to read as follows:
(a) Except as otherwise authorized by this section, a school
district may not enroll more than 22 students in a kindergarten,
first, second, third, or fourth grade class. That limitation does
not apply during:
(1) any 12-week period of the school year selected by
the district, in the case of a district whose average daily
attendance is adjusted under Section 48.005(c) [42.005(c)]; or
(2) the last 12 weeks of any school year in the case of
any other district.
(b) Not later than the 30th day after the first day of the
12-week period for which a district whose average daily attendance
is adjusted under Section 48.005(c) [42.005(c)] is claiming an
exemption under Subsection (a), the district shall notify the
commissioner in writing that the district is claiming an exemption
for the period stated in the notice.
SECTION 3.021. Section 28.0061(b), Education Code, is
amended to read as follows:
(b) A school district is eligible to participate in the
pilot program if, as determined by the commissioner, the district
has low student performance on:
(1) a reading instrument administered in accordance
with Section 28.006(c) or (c-2); or
(2) a third grade reading assessment instrument
administered under Section 39.023(a).
SECTION 3.022. Section 28.0211(m-1), Education Code, is
amended to read as follows:
(m-1) For purposes of certification under Subsection (m),
the commissioner may not consider Foundation School Program funds
except for compensatory education funds under Section 48.104
[42.152]. This section may be implemented only if the commissioner
certifies that sufficient funds have been appropriated during a
school year for administering the accelerated instruction programs
specified under this section and Section 28.0217, including teacher
training for that purpose.
SECTION 3.023. Section 29.001, Education Code, is amended
to read as follows:
Sec. 29.001. STATEWIDE PLAN. The agency shall develop, and
modify as necessary, a statewide design, consistent with federal
law, for the delivery of services to children with disabilities in
this state that includes rules for the administration and funding
of the special education program so that a free appropriate public
education is available to all of those children between the ages of
three and 21. The statewide design shall include the provision of
services primarily through school districts and shared services
arrangements, supplemented by regional education service
centers. The agency shall also develop and implement a statewide
plan with programmatic content that includes procedures designed
to:
(1) ensure state compliance with requirements for
supplemental federal funding for all state-administered programs
involving the delivery of instructional or related services to
students with disabilities;
(2) facilitate interagency coordination when other
state agencies are involved in the delivery of instructional or
related services to students with disabilities;
(3) periodically assess statewide personnel needs in
all areas of specialization related to special education and pursue
strategies to meet those needs through a consortium of
representatives from regional education service centers, local
education agencies, and institutions of higher education and
through other available alternatives;
(4) ensure that regional education service centers
throughout the state maintain a regional support function, which
may include direct service delivery and a component designed to
facilitate the placement of students with disabilities who cannot
be appropriately served in their resident districts;
(5) allow the agency to effectively monitor and
periodically conduct site visits of all school districts to ensure
that rules adopted under this section are applied in a consistent
and uniform manner, to ensure that districts are complying with
those rules, and to ensure that annual statistical reports filed by
the districts and not otherwise available through the Public
Education Information Management System under Sections 48.008 and
48.009 [Section 42.006] are accurate and complete;
(6) ensure that appropriately trained personnel are
involved in the diagnostic and evaluative procedures operating in
all districts and that those personnel routinely serve on district
admissions, review, and dismissal committees;
(7) ensure that an individualized education program
for each student with a disability is properly developed,
implemented, and maintained in the least restrictive environment
that is appropriate to meet the student's educational needs;
(8) ensure that, when appropriate, each student with a
disability is provided an opportunity to participate in career and
technology and physical education classes, in addition to
participating in regular or special classes;
(9) ensure that each student with a disability is
provided necessary related services;
(10) ensure that an individual assigned to act as a
surrogate parent for a child with a disability, as provided by 20
U.S.C. Section 1415(b), is required to:
(A) complete a training program that complies
with minimum standards established by agency rule;
(B) visit the child and the child's school;
(C) consult with persons involved in the child's
education, including teachers, caseworkers, court-appointed
volunteers, guardians ad litem, attorneys ad litem, foster parents,
and caretakers;
(D) review the child's educational records;
(E) attend meetings of the child's admission,
review, and dismissal committee;
(F) exercise independent judgment in pursuing
the child's interests; and
(G) exercise the child's due process rights under
applicable state and federal law; and
(11) ensure that each district develops a process to
be used by a teacher who instructs a student with a disability in a
regular classroom setting:
(A) to request a review of the student's
individualized education program;
(B) to provide input in the development of the
student's individualized education program;
(C) that provides for a timely district response
to the teacher's request; and
(D) that provides for notification to the
student's parent or legal guardian of that response.
SECTION 3.024. Section 29.002, Education Code, is amended
to read as follows:
Sec. 29.002. DEFINITION. In this subchapter, "special
services" means:
(1) special education instruction, which may be
provided by professional and supported by paraprofessional
personnel in the regular classroom or in an instructional
arrangement described by Section 48.102 [42.151]; and
(2) related services, which are developmental,
corrective, supportive, or evaluative services, not instructional
in nature, that may be required for the student to benefit from
special education instruction and for implementation of a student's
individualized education program.
SECTION 3.025. Section 29.008(b), Education Code, is
amended to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds. The local share of
the total contract cost for each student is that portion of the
local tax effort that exceeds the district's local fund assignment
under Section 48.256 [42.252], divided by the average daily
attendance in the district. If the contract involves a private
facility, the state share of the total contract cost is that amount
remaining after subtracting the local share. If the contract
involves a public facility, the state share is that amount
remaining after subtracting the local share from the portion of the
contract that involves the costs of instructional and related
services. For purposes of this subsection, "local tax effort"
means the total amount of money generated by taxes imposed for debt
service and maintenance and operation less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.
SECTION 3.026. Section 29.014(d), Education Code, is
amended to read as follows:
(d) The basic allotment for a student enrolled in a district
to which this section applies is adjusted by[:
[(1) the cost of education adjustment under Section
42.102 for the school district in which the district is
geographically located; and
[(2)] the weight for a homebound student under Section
48.102(a) [42.151(a)].
SECTION 3.027. Section 29.018(b), Education Code, is
amended to read as follows:
(b) A school district is eligible to apply for a grant under
this section if:
(1) the district does not receive sufficient funds,
including state funds provided under Section 48.102 [42.151] and
federal funds, for a student with disabilities to pay for the
special education services provided to the student; or
(2) the district does not receive sufficient funds,
including state funds provided under Section 48.102 [42.151] and
federal funds, for all students with disabilities in the district
to pay for the special education services provided to the students.
SECTION 3.028. Section 29.022(u)(3), Education Code, is
amended to read as follows:
(3) "Self-contained classroom" does not include a
classroom that is a resource room instructional arrangement under
Section 48.102 [42.151].
SECTION 3.029. Section 29.081(b-2), Education Code, is
amended to read as follows:
(b-2) A district that is required to provide accelerated
instruction under Subsection (b-1) shall separately budget
sufficient funds, including funds under Section 48.104 [42.152],
for that purpose. [A district may not budget funds received under
Section 42.152 for any other purpose until the district adopts a
budget to support additional accelerated instruction under
Subsection (b-1).]
SECTION 3.030. Section 29.082(a), Education Code, is
amended to read as follows:
(a) A school district may set aside an amount from the
district's allotment under Section 48.104 [42.152] or may apply to
the agency for funding of an extended year program for a period not
to exceed 30 instructional days for students in:
(1) kindergarten through grade 11 who are identified
as likely not to be promoted to the next grade level for the
succeeding school year; or
(2) grade 12 who are identified as likely not to
graduate from high school before the beginning of the succeeding
school year.
SECTION 3.031. Section 29.086(e), Education Code, is
amended to read as follows:
(e) The amount of a grant under this section must take into
account funds distributed to the school district under Chapter 48
[42].
SECTION 3.032. Sections 29.087(h) and (j), Education Code,
are amended to read as follows:
(h) A student who has received a high school equivalency
certificate is entitled to enroll in a public school as authorized
by Section 25.001 and is entitled to the benefits of the Foundation
School Program under Section 48.003 [42.003] in the same manner as
any other student who has not received a high school diploma.
(j) For purposes of funding under Chapters [41, 42, and] 46,
48, and 49, a student attending a program authorized by this section
may be counted in attendance only for the actual number of hours
each school day the student attends the program, in accordance with
Section 25.081.
SECTION 3.033. Section 29.089(b), Education Code, is
amended to read as follows:
(b) The commissioner, in consultation with the governor,
lieutenant governor, and speaker of the house of representatives,
by rule shall determine accountability standards under this section
for a school district providing a mentoring services program using
funds allocated under Section 48.104 [42.152].
SECTION 3.034. Sections 29.203(b) and (c), Education Code,
are amended to read as follows:
(b) A school district is entitled to the allotment provided
by Section 48.107 [42.157] for each eligible student using a public
education grant. If the district has a local revenue level [wealth
per student] greater than the guaranteed local revenue [wealth]
level but less than the [equalized wealth] level established under
Section 48.257, a school district is entitled under rules adopted
by the commissioner to additional state aid in an amount equal to
the difference between the cost to the district of providing
services to a student using a public education grant and the sum of
the state aid received because of the allotment under Section
48.107 [42.157] and money from the available school fund
attributable to the student.
(c) A school district is entitled to additional facilities
assistance under Section 48.301 [42.4101] if the district agrees
to:
(1) accept a number of students using public education
grants that is at least one percent of the district's average daily
attendance for the preceding school year; and
(2) provide services to each student until the student
either voluntarily decides to attend a school in a different
district or graduates from high school.
SECTION 3.035. Section 29.203(g)(2), Education Code, is
amended to read as follows:
(2) "Guaranteed local revenue [wealth] level" means a
local revenue level [wealth per student] equal to the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort, as provided by Section 48.202 [42.302],
multiplied by 10,000.
SECTION 3.036. Section 29.403(b), Education Code, is
amended to read as follows:
(b) A student who is enrolled in a program under this
subchapter is included in determining the average daily attendance
under Section 48.005 [42.005] of the partnering school district.
SECTION 3.037. Sections 29.918(a) and (b), Education Code,
are amended to read as follows:
(a) Notwithstanding Section 48.104 [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 48.104 [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 3.038. Section 30A.002(a), Education Code, is
amended to read as follows:
(a) A student is eligible to enroll in a course provided
through the state virtual school network only if the student:
(1) on September 1 of the school year:
(A) is younger than 21 years of age; or
(B) is younger than 26 years of age and entitled
to the benefits of the Foundation School Program under Section
48.003 [42.003];
(2) has not graduated from high school; and
(3) is otherwise eligible to enroll in a public school
in this state.
SECTION 3.039. Section 30A.153(a), Education Code, is
amended to read as follows:
(a) Subject to the limitation imposed under Subsection
(a-1), a school district or open-enrollment charter school in which
a student is enrolled is entitled to funding under Chapter 48 [42]
or in accordance with the terms of a charter granted under Section
12.101 for the student's enrollment in an electronic course offered
through the state virtual school network in the same manner that the
district or school is entitled to funding for the student's
enrollment in courses provided in a traditional classroom setting,
provided that the student successfully completes the electronic
course.
SECTION 3.040. Section 34.002(c), Education Code, is
amended to read as follows:
(c) 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
48.151 [42.155] until the first anniversary of the date the
district begins complying with the safety standards.
SECTION 3.041. Section 37.0061, Education Code, is amended
to read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average daily attendance for purposes of
receipt of state funds under the Foundation School Program. If the
district has a local revenue level [wealth per student] greater
than the guaranteed local revenue [wealth] level but less than the
[equalized wealth] level established under Section 48.257, the
district in which the student is enrolled on the date a court orders
the student to be confined to a juvenile residential facility shall
transfer to the district providing education services an amount
equal to the difference between the average Foundation School
Program costs per student of the district providing education
services and the sum of the state aid and the money from the
available school fund received by the district that is attributable
to the student for the portion of the school year for which the
district provides education services to the student.
SECTION 3.042. Section 37.011(h), Education Code, is
amended to read as follows:
(h) Academically, the mission of juvenile justice
alternative education programs shall be to enable students to
perform at grade level. For purposes of accountability under
Chapters 39 and 39A, a student enrolled in a juvenile justice
alternative education program is reported as if the student were
enrolled at the student's assigned campus in the student's
regularly assigned education program, including a special
education program. Annually the Texas Juvenile Justice
Department, with the agreement of the commissioner, shall develop
and implement a system of accountability consistent with Chapters
39 and 39A, where appropriate, to assure that students make
progress toward grade level while attending a juvenile justice
alternative education program. The department shall adopt rules
for the distribution of funds appropriated under this section to
juvenile boards in counties required to establish juvenile justice
alternative education programs. Except as determined by the
commissioner, a student served by a juvenile justice alternative
education program on the basis of an expulsion required under
Section 37.007(a), (d), or (e) is not eligible for Foundation
School Program funding under Chapter [42 or] 31 or 48 if the
juvenile justice alternative education program receives funding
from the department under this subchapter.
SECTION 3.043. 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 Subchapter F-1,
Chapter 51. The questions adopted under this subsection must be
developed in a manner consistent with any college readiness
standards adopted under [Section 39.233 and] Subchapter F-1,
Chapter 51.
SECTION 3.044. Section 39.027(f), Education Code, is
amended to read as follows:
(f) In this section, "average daily attendance" is computed
in the manner provided by Section 48.005 [42.005].
SECTION 3.045. Section 39.408, Education Code, is amended
to read as follows:
Sec. 39.408. ELIGIBILITY CRITERIA FOR CERTAIN GRANT
PROGRAMS. A school district or campus is eligible to participate in
programs under Sections 21.4541, 29.095, and 29.096[, 29.097, and
29.098] if the district or campus exhibited during each of the three
preceding school years characteristics that strongly correlate
with high dropout rates.
SECTION 3.046. Section 39.413, Education Code, is amended
to read as follows:
Sec. 39.413. FUNDING FOR CERTAIN PROGRAMS. (a) From funds
appropriated, the Texas Higher Education Coordinating Board shall
allocate $8.75 million each year to establish mathematics, science,
and technology teacher preparation academies under Section
61.0766[, provide funding to the commissioner of education to
implement and administer the program under Section 29.098,] and
award grants under Section 61.0762(a)(3).
(b) The Texas Higher Education Coordinating Board shall
establish mathematics, science, and technology teacher preparation
academies under Section 61.0766[, provide funding to the
commissioner of education to implement and administer the program
under Section 29.098,] and award grants under Section 61.0762(a)(3)
in a manner consistent with the goals of this subchapter and the
goals in "Closing the Gaps," the state's master plan for higher
education.
SECTION 3.047. Section 39A.903, Education Code, is amended
to read as follows:
Sec. 39A.903. COSTS PAID BY SCHOOL DISTRICT. The costs of
providing a monitor, conservator, management team, campus
intervention team, technical assistance team, managing entity, or
service provider under this chapter shall be paid by the school
district. If the district fails or refuses to pay the costs in a
timely manner, the commissioner may:
(1) pay the costs using amounts withheld from any
funds to which the district is otherwise entitled; or
(2) recover the amount of the costs in the manner
provided for recovery of an overallocation of state funds under
Section 48.272 [42.258].
SECTION 3.048. Section 43.002(b), Education Code, is
amended to read as follows:
(b) Of the amounts available for transfer from the general
revenue fund to the available school fund for the months of January
and February of each fiscal year, no more than the amount necessary
to enable the comptroller to distribute from the available school
fund an amount equal to 9-1/2 percent of the estimated annual
available school fund apportionment to category 1 school districts,
as defined by Section 48.273 [42.259], and 3-1/2 percent of the
estimated annual available school fund apportionment to category 2
school districts, as defined by Section 48.273 [42.259], may be
transferred from the general revenue fund to the available school
fund. Any remaining amount that would otherwise be available for
transfer for the months of January and February shall be
transferred from the general revenue fund to the available school
fund in equal amounts in June and in August of the same fiscal year.
SECTION 3.049. Section 44.0011, Education Code, is amended
to read as follows:
Sec. 44.0011. FISCAL YEAR. The fiscal year of a school
district begins on July 1 or September 1 of each year, as determined
by the board of trustees of the district. The commissioner may adopt
rules concerning the submission of information by a district under
Chapter 39, 39A, or 48 [42] based on the fiscal year of the
district.
SECTION 3.050. Section 44.051, Education Code, is amended
to read as follows:
Sec. 44.051. INTERFERENCE WITH OPERATION OF FOUNDATION
SCHOOL PROGRAM. An offense under Section 37.10, Penal Code, is a
felony of the third degree if it is shown on trial of the offense
that the governmental record was a record, form, report, or budget
required under Chapter 48 [42] or rules adopted under that chapter.
If the actor's intent is to defraud the state or the public school
system, the offense is a felony of the second degree.
SECTION 3.051. Section 45.0011(e), Education Code, is
amended to read as follows:
(e) In this section, average daily attendance is determined
in the manner provided by Section 48.005 [42.005].
SECTION 3.052. Sections 45.0031(b) and (c), Education Code,
are amended to read as follows:
(b) A district may demonstrate the ability to comply with
Subsection (a) by using the most recent taxable value of property in
the district, combined with state assistance to which the district
is entitled under Chapter [42 or] 46 or 48 that may be lawfully used
for the payment of bonds.
(c) A district may demonstrate the ability to comply with
Subsection (a) by using a projected future taxable value of
property in the district anticipated for the earlier of the tax year
five years after the current tax year or the tax year in which the
final payment is due for the bonds submitted to the attorney
general, combined with state assistance to which the district is
entitled under Chapter [42 or] 46 or 48 that may be lawfully used
for the payment of bonds. The district must submit to the attorney
general a certification of the district's projected taxable value
of property that is prepared by a registered professional appraiser
certified under Chapter 1151, Occupations Code, who has
demonstrated professional experience in projecting taxable values
of property or who can by contract obtain any necessary assistance
from a person who has that experience. To demonstrate the
professional experience required by this subsection, a registered
professional appraiser must provide to the district written
documentation relating to two previous projects for which the
appraiser projected taxable values of property. Until the bonds
submitted to the attorney general are approved or disapproved, the
district must maintain the documentation and on request provide the
documentation to the attorney general or comptroller. The
certification of the district's projected taxable value of property
must be signed by the district's superintendent. The attorney
general must base a determination of whether the district has
complied with Subsection (a) on a taxable value of property that is
equal to 90 percent of the value certified under this subsection.
SECTION 3.053. Effective January 1, 2020, Section
45.105(e), Education Code, is amended to read as follows:
(e) The governing body of an independent school district
that governs a junior college district under Subchapter B, Chapter
130, in a county with a population of more than two million may
dedicate a specific percentage of the local tax levy to the use of
the junior college district for facilities and equipment or for the
maintenance and operating expenses of the junior college district.
To be effective, the dedication must be made by the governing body
on or before the date on which the governing body adopts its tax
rate for a year. The amount of local tax funds derived from the
percentage of the local tax levy dedicated to a junior college
district from a tax levy may not exceed the amount that would be
levied by five percent of the no-new-revenue [effective] tax rate
for the tax year calculated as provided by Section 26.04, Tax Code,
on all property taxable by the school district. All real property
purchased with these funds is the property of the school district,
but is subject to the exclusive control of the governing body of the
junior college district for as long as the junior college district
uses the property for educational purposes.
SECTION 3.054. Section 45.251(2), Education Code, is
amended to read as follows:
(2) "Foundation School Program" means the program
established under Chapters [41, 42, and] 46, 48, and 49, or any
successor program of state appropriated funding for school
districts in this state.
SECTION 3.055. Section 45.259(d), Education Code, is
amended to read as follows:
(d) If money appropriated for the Foundation School Program
is used for purposes of this subchapter and as a result there is
insufficient money to fully fund the Foundation School Program, the
commissioner shall, to the extent necessary, reduce each school
district's foundation school fund allocations, other than any
portion appropriated from the available school fund, in the same
manner provided by Section 48.266(f) [42.253(h)] for a case in
which school district entitlements exceed the amount
appropriated. The following fiscal year, a district's entitlement
under Section 48.266 [42.253] is increased by an amount equal to the
reduction under this subsection.
SECTION 3.056. Section 45.261(a), Education Code, is
amended to read as follows:
(a) If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district that is not required to reduce its local revenue level
[wealth per student] under Section 48.257 [Chapter 41], the
commissioner shall direct the comptroller to withhold the amount
paid from the first state money payable to the district. If the
commissioner orders payment from the money appropriated to the
Foundation School Program on behalf of a school district that is
required to reduce its local revenue level [wealth per student]
under Section 48.257 [Chapter 41], the commissioner shall increase
amounts due from the district under Chapter 49 [that chapter] in a
total amount equal to the amount of payments made on behalf of the
district under this subchapter. Amounts withheld or received
under this subsection shall be used for the Foundation School
Program.
SECTION 3.057. Effective January 1, 2020, Section
45.261(e), Education Code, is amended to read as follows:
(e) Any part of a school district's tax rate attributable to
producing revenue for purposes of Subsection (c)(1) is considered
part of the district's:
(1) current debt rate for purposes of computing a
voter-approval [rollback] tax rate under Section 26.08, Tax Code;
and
(2) interest and sinking fund tax rate.
SECTION 3.058. Section 45.263(b), Education Code, is
amended to read as follows:
(b) In adopting rules under Subsection (a), the
commissioner shall establish an annual deadline by which a school
district must pay the debt service on bonds for which credit
enhancement is provided under this subchapter. The deadline
established may not be later than the 10th day before the date
specified under Section 48.273 [42.259] for payment to school
districts of the final Foundation School Program installment for a
state fiscal year.
SECTION 3.059. Section 46.003(a), Education Code, is
amended to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 48.005 [42.005], in
the district or 400;
"BTR" is the district's bond tax rate for the current year,
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, Section 48.258 [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, Section 48.258 [42.2521].
SECTION 3.060. Section 46.006(g), Education Code, is
amended to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258
[42.2521], divided by the district's average daily attendance as
determined under Section 48.005 [42.005].
SECTION 3.061. Sections 46.009(b), (c), (e), and (f),
Education Code, are amended to read as follows:
(b) If the amount appropriated for purposes of this
subchapter for a year is less than the total amount determined under
Subsection (a) for that year, the commissioner shall:
(1) transfer from the Foundation School Program to the
instructional facilities program the amount by which the total
amount determined under Subsection (a) exceeds the amount
appropriated; and
(2) reduce each district's foundation school fund
allocations in the manner provided by Section 48.266(f)
[42.253(h)].
(c) Warrants for payments under this subchapter shall be
approved and transmitted to school district treasurers or
depositories in the same manner as warrants for payments under
Chapter 48 [42].
(e) Section 48.272 [42.258] applies to payments under this
subchapter.
(f) If a school district would have received a greater
amount under this subchapter for the applicable school year using
the adjusted value determined under Section 48.271 [42.257], the
commissioner shall add the difference between the adjusted value
and the amount the district received under this subchapter to
subsequent distributions to the district under this subchapter.
SECTION 3.062. Section 46.0111(e), Education Code, is
amended to read as follows:
(e) The state's share is state property. The school
district shall send to the comptroller any portion of the state's
share not used by the school district to repair the defective
design, construction, renovation, or improvement of the
instructional facility on which the action is brought or to replace
the facility. Section 48.272 [42.258] applies to the state's share
under this subsection.
SECTION 3.063. Section 46.013, Education Code, is amended
to read as follows:
Sec. 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under Subchapter E [F], Chapter 48 [42].
SECTION 3.064. 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 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 48.005 [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 48.258 [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 48.258 [42.2521].
SECTION 3.065. Section 46.037, Education Code, is amended
to read as follows:
Sec. 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under Subchapter E [F], Chapter 48 [42].
SECTION 3.066. Section 61.0766(e), Education Code, is
amended to read as follows:
(e) An academy program may:
(1) provide financial assistance for the purpose of
allowing participants to complete the program [and obtain a master
teacher certificate under Section 21.0482, 21.0483, or 21.0484];
(2) include programs in leadership skills to develop
training, mentoring, and coaching skills;
(3) deliver coursework electronically for some or all
of the program; and
(4) provide for ongoing professional development and
coordination with specific public school instructional programs.
SECTION 3.067. Section 79.10(f), Education Code, is amended
to read as follows:
(f) For each student enrolled in the academy, the academy is
entitled to allotments from the foundation school fund under
Chapter 48 [42] as if the academy were a school district without a
tier one local share for purposes of Section 48.266 [42.253]. If
in any academic year the amount of the allotments under this
subsection exceeds the amount of state funds paid to the academy in
the first fiscal year of the academy's operation, the commissioner
of education shall set aside from the total amount of funds to which
school districts are entitled under Section 48.266(c) [42.253(c)]
an amount equal to the excess amount and shall distribute that
amount to the academy. After deducting the amount set aside and
paid to the academy by the commissioner of education under this
subsection, the commissioner of education shall reduce the amount
to which each district is entitled under Section 48.266(c)
[42.253(c)] in the manner described by Section 48.266(f)
[42.253(h)]. A determination of the commissioner of education
under this subsection is final and may not be appealed.
SECTION 3.068. Section 87.208, Education Code, is amended
to read as follows:
Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
regents of The Texas A&M University System administers a program
that is substantially similar to the Seaborne Conservation Corps as
it was administered by the board during the 1998-1999 school year,
the program is entitled, for each student enrolled, to allotments
from the Foundation School Program under Chapter 48 [42] as if the
program were a school district, except that the program has a local
share applied that is equivalent to the local fund assignment of the
school district in which the principal facilities of the program
are located.
SECTION 3.069. Section 87.505(g), Education Code, is
amended to read as follows:
(g) For each student enrolled in the academy, the academy is
entitled to allotments from the foundation school fund under
Chapter 48 [42] as if the academy were a school district without a
tier one local share for purposes of Section 48.266 [42.253]. If
in any academic year the amount of the allotments under this
subsection exceeds the amount of state funds paid to the academy in
the first fiscal year of the academy's operation, the commissioner
of education shall set aside from the total amount of funds to which
school districts are entitled under Section 48.266(c) [42.253(c)]
an amount equal to the excess amount and shall distribute that
amount to the academy. After deducting the amount set aside and
paid to the academy by the commissioner of education under this
subsection, the commissioner of education shall reduce the amount
to which each district is entitled under Section 48.266(c)
[42.253(c)] in the manner described by Section 48.266(f)
[42.253(h)]. A determination of the commissioner of education
under this subsection is final and may not be appealed.
SECTION 3.070. Section 96.707(k), Education Code, is
amended to read as follows:
(k) For each student enrolled in the academy, the academy is
entitled to allotments from the Foundation School Program under
Chapter 48 [42] as if the academy were a school district without a
tier one local share for purposes of Section 48.266 [42.253].
SECTION 3.071. Sections 105.301(e) and (f), Education Code,
are amended to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.0511,
22.0512, or 22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; and
(3) for each student enrolled, the academy is entitled
to allotments from the foundation school program under Chapter 48
[42] as if the academy were a school district without a tier one
local share for purposes of Section 48.266 [42.253].
(f) If in any academic year the amount of the allotments
under Subsection (e)(3) exceeds the amount of state funds paid to
the academy under this section in the fiscal year ending August 31,
2003, the commissioner shall set aside from the total amount of
funds to which school districts are entitled under Section
48.266(c) [42.253(c)] an amount equal to the excess amount and
shall distribute that amount to the academy. After deducting the
amount set aside and paid to the academy by the commissioner under
this subsection, the commissioner shall reduce the amount to which
each district is entitled under Section 48.266(c) [42.253(c)] in
the manner described by Section 48.266(f) [42.253(h)]. A
determination of the commissioner under this section is final and
may not be appealed.
SECTION 3.072. Section 317.005(f), Government Code, is
amended to read as follows:
(f) The governor or board may adopt an order under this
section withholding or transferring any portion of the total amount
appropriated to finance the foundation school program for a fiscal
year. The governor or board may not adopt such an order if it would
result in an allocation of money between particular programs or
statutory allotments under the foundation school program contrary
to the statutory proration formula provided by Section 48.266(f)
[42.253(h)], Education Code. The governor or board may transfer an
amount to the total amount appropriated to finance the foundation
school program for a fiscal year and may increase the basic
allotment. The governor or board may adjust allocations of amounts
between particular programs or statutory allotments under the
foundation school program only for the purpose of conforming the
allocations to actual pupil enrollments or attendance.
SECTION 3.073. Section 403.093(d), Government Code, as
amended by Chapters 581 (S.B. 810) and 705 (H.B. 3526), Acts of the
85th Legislature, Regular Session, 2017, is reenacted and amended
to read as follows:
(d) The comptroller shall transfer from the general revenue
fund to the foundation school fund an amount of money necessary to
fund the foundation school program as provided by Chapter 48 [42],
Education Code. The comptroller shall make the transfers in
installments as necessary to comply with Section 48.273 [42.259],
Education Code, and permit the Texas Education Agency, to the
extent authorized by the General Appropriations Act, to make
temporary transfers from the foundation school fund for payment of
the instructional materials and technology allotment under Section
31.0211, Education Code. Unless an earlier date is necessary for
purposes of temporary transfers for payment of the instructional
materials and technology allotment, an installment must be made not
earlier than two days before the date an installment to school
districts is required by Section 48.273 [42.259], Education Code,
and must not exceed the amount necessary for that payment and any
temporary transfers for payment of the instructional materials and
technology allotment.
SECTION 3.074. Section 403.302(a), Government Code, is
amended to read as follows:
(a) The comptroller shall conduct a study using comparable
sales and generally accepted auditing and sampling techniques to
determine the total taxable value of all property in each school
district. The study shall determine the taxable value of all
property and of each category of property in the district and the
productivity value of all land that qualifies for appraisal on the
basis of its productive capacity and for which the owner has applied
for and received a productivity appraisal. The comptroller shall
make appropriate adjustments in the study to account for actions
taken under Chapter 49 [41], Education Code.
SECTION 3.075. Section 403.303(b), Government Code, is
amended to read as follows:
(b) After receipt of a petition, the comptroller shall hold
a hearing. The comptroller has the burden to prove the accuracy of
the findings. Until a final decision is made by the comptroller,
the taxable value of property in the district is determined, with
respect to property subject to the protest, according to the value
claimed by the school district or property owner, except that the
value to be used while a final decision is pending may not be less
than the appraisal roll value for the year of the study. If after a
hearing the comptroller concludes that the findings should be
changed, the comptroller shall order the appropriate changes and
shall certify to the commissioner of education the changes in the
values of the school district that brought the protest, the values
of the school district named by the property owner who brought the
protest, or, if the comptroller by rule allows an appraisal
district to bring a protest, the values of the school district named
by the appraisal district that brought the protest. The
comptroller may not order a change in the values of a school
district as a result of a protest brought by another school
district, a property owner in the other school district, or an
appraisal district that appraises property for the other school
district. The comptroller shall complete all protest hearings and
certify all changes as necessary to comply with Chapter 48 [42],
Education Code. A hearing conducted under this subsection is not a
contested case for purposes of Section 2001.003.
SECTION 3.076. Section 404.121(1), Government Code, is
amended to read as follows:
(1) "Cash flow deficit" for any period means the
excess, if any, of expenditures paid and transfers made from the
general revenue fund in the period, including payments provided by
Section 48.273 [42.259], Education Code, over taxes and other
revenues deposited to the fund in the period, other than revenues
deposited pursuant to Section 403.092, that are legally available
for the expenditures and transfers.
SECTION 3.077. Section 437.117(a), Government Code, is
amended to read as follows:
(a) For each student enrolled in the Texas ChalleNGe
Academy, the department is entitled to allotments from the
Foundation School Program under Chapter 48 [42], Education Code, as
if the academy were a school district without a tier one local share
for purposes of Section 48.266 [42.253], Education Code.
SECTION 3.078. Section 466.355(c), Government Code, as
repealed by Chapter 431 (S.B. 559), Acts of the 83rd Legislature,
Regular Session, 2013, and amended by Chapter 1410 (S.B. 758), Acts
of the 83rd Legislature, Regular Session, 2013, is reenacted and
amended to read as follows:
(c) Each August the comptroller shall:
(1) estimate the amount to be transferred to the
foundation school fund on or before September 15; and
(2) notwithstanding Subsection (b)(4), transfer the
amount estimated in Subdivision (1) to the foundation school fund
before August installment payments are made under Section 48.273
[42.259], Education Code.
SECTION 3.079. Section 822.201(b), Government Code, is
amended to read as follows:
(b) "Salary and wages" as used in Subsection (a) means:
(1) normal periodic payments of money for service the
right to which accrues on a regular basis in proportion to the
service performed;
(2) amounts by which the member's salary is reduced
under a salary reduction agreement authorized by Chapter 610;
(3) amounts that would otherwise qualify as salary and
wages under Subdivision (1) but are not received directly by the
member pursuant to a good faith, voluntary written salary reduction
agreement in order to finance payments to a deferred compensation
or tax sheltered annuity program specifically authorized by state
law or to finance benefit options under a cafeteria plan qualifying
under Section 125 of the Internal Revenue Code of 1986, if:
(A) the program or benefit options are made
available to all employees of the employer; and
(B) the benefit options in the cafeteria plan are
limited to one or more options that provide deferred compensation,
group health and disability insurance, group term life insurance,
dependent care assistance programs, or group legal services plans;
(4) performance pay awarded to an employee by a school
district as part of a total compensation plan approved by the board
of trustees of the district and meeting the requirements of
Subsection (e);
(5) the benefit replacement pay a person earns under
Subchapter H, Chapter 659, except as provided by Subsection (c);
(6) stipends paid to teachers in accordance with
former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
(7) amounts by which the member's salary is reduced or
that are deducted from the member's salary as authorized by
Subchapter J, Chapter 659;
(8) a merit salary increase made under Section 51.962,
Education Code;
(9) amounts received under the relevant parts of the
educator excellence awards program under Subchapter O, Chapter 21,
Education Code, or a mentoring program under Section 21.458,
Education Code, that authorize compensation for service;
(10) salary amounts designated as health care
supplementation by an employee under Subchapter D, Chapter 22,
Education Code; and
(11) to the extent required by Sections 3401(h) and
414(u)(12), Internal Revenue Code of 1986, differential wage
payments received by an individual from an employer on or after
January 1, 2009, while the individual is performing qualified
military service as defined by Section 414(u), Internal Revenue
Code of 1986.
SECTION 3.080. Effective January 1, 2020, Sections
825.405(h) and (i), Government Code, are amended to read as
follows:
(h) This section does not apply to state contributions for
members employed by a school district in a school year if the
district's no-new-revenue [effective] tax rate for maintenance and
operation revenues for the tax year that ended in the preceding
school year equals or exceeds 125 percent of the statewide average
no-new-revenue [effective] tax rate for school district
maintenance and operation revenues for that tax year. For a tax
year, the statewide average no-new-revenue [effective] tax rate for
school district maintenance and operation revenues is the tax rate
that, if applied to the statewide total appraised value of taxable
property for every school district in the state determined under
Section 403.302, would produce an amount equal to the statewide
total amount of maintenance and operation taxes imposed in the tax
year for every school district in the state.
(i) Not later than the seventh day after the final date the
comptroller certifies to the commissioner of education changes to
the property value study conducted under Subchapter M, Chapter 403,
the comptroller shall certify to the Teacher Retirement System of
Texas:
(1) the no-new-revenue [effective] tax rate for school
district maintenance and operation revenues for each school
district in the state for the immediately preceding tax year; and
(2) the statewide average no-new-revenue [effective]
tax rate for school district maintenance and operation revenues for
the immediately preceding tax year.
SECTION 3.081. Section 1371.001(4), Government Code, is
amended to read as follows:
(4) "Issuer" means:
(A) a home-rule municipality that:
(i) adopted its charter under Section 5,
Article XI, Texas Constitution;
(ii) has a population of 50,000 or more; and
(iii) has outstanding long-term
indebtedness that is rated by a nationally recognized rating agency
for municipal securities in one of the four highest rating
categories for a long-term obligation;
(B) a conservation and reclamation district
created and organized as a river authority under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution;
(C) a joint powers agency organized and operating
under Chapter 163, Utilities Code;
(D) a metropolitan rapid transit authority,
regional transportation authority, or coordinated county
transportation authority created, organized, or operating under
Chapter 451, 452, or 460, Transportation Code;
(E) a conservation and reclamation district
organized or operating as a navigation district under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution;
(F) a district organized or operating under
Section 59, Article XVI, Texas Constitution, that has all or part of
two or more municipalities within its boundaries;
(G) a state agency, including a state institution
of higher education;
(H) a hospital authority created or operating
under Chapter 262 or 264, Health and Safety Code, in a county that:
(i) has a population of more than 3.3
million; or
(ii) is included, in whole or in part, in a
standard metropolitan statistical area of this state that includes
a county with a population of more than 2.2 million;
(I) a hospital district in a county that has a
population of more than two million;
(J) a nonprofit corporation organized to
exercise the powers of a higher education loan authority under
Section 53B.47(e), Education Code;
(K) a county:
(i) that has a population of 3.3 million or
more; or
(ii) that, on the date of issuance of
obligations under this chapter, has authorized, outstanding, or any
combination of authorized and outstanding, indebtedness of at least
$100 million secured by and payable from the county's ad valorem
taxes and the authorized long-term indebtedness of which is rated
by a nationally recognized rating agency of securities issued by
local governments in one of the four highest rating categories for a
long-term obligation;
(L) an independent school district that has an
average daily attendance of 50,000 or more as determined under
Section 48.005 [42.005], Education Code;
(M) a municipality or county operating under
Chapter 334, Local Government Code;
(N) a district created under Chapter 335, Local
Government Code;
(O) a junior college district that has a total
headcount enrollment of 40,000 or more based on enrollment in the
most recent regular semester; or
(P) an issuer, as defined by Section 1201.002,
that has:
(i) a principal amount of at least $100
million in outstanding long-term indebtedness, in long-term
indebtedness proposed to be issued, or in a combination of
outstanding or proposed long-term indebtedness; and
(ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the
four highest rating categories for long-term debt instruments by a
nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form
of credit enhancement entered into in connection with the
obligation.
SECTION 3.082. Section 1431.001(3), Government Code, is
amended to read as follows:
(3) "Eligible school district" means an independent
school district that has an average daily attendance of 190,000 or
more as determined under Section 48.005 [42.005], Education Code.
SECTION 3.083. Section 2175.304(c), Government Code, is
amended to read as follows:
(c) The procedures established under Subsection (b) must
give preference to transferring the property directly to a public
school or school district or to an assistance organization
designated by the school district before disposing of the property
in another manner. If more than one public school or school
district or assistance organization seeks to acquire the same
property on substantially the same terms, the system, institution,
or agency shall give preference to a public school that is
considered low-performing by the commissioner of education or to a
school district that has a taxable wealth per student that entitles
the district to an allotment of state funds under Subchapter E [F],
Chapter 48 [42], Education Code, or to the assistance organization
designated by such a school district.
SECTION 3.084. Section 221.0071(d), Human Resources Code,
is amended to read as follows:
(d) A charter school operating under a charter granted under
this section is entitled to receive open-enrollment charter school
funding under Chapter 48 [42], Education Code, in the same manner as
an open-enrollment charter school operating under Subchapter D,
Chapter 12, Education Code.
SECTION 3.085. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapters 48 [41] and 49 [42], Education Code, and
used by school districts and charter schools as provided by
Section 48.275 [42.260], Education Code.
SECTION 3.086. Section 1581.053, Insurance Code, is amended
to read as follows:
Sec. 1581.053. USE OF STATE FUNDS. (a) To comply with
Section 1581.052, a school district or participating charter school
may use state funds received under Chapter 48 [42], Education Code,
other than funds that may be used under that chapter only for a
specific purpose.
(b) Notwithstanding Subsection (a), amounts a district or
school is required to use to pay contributions under a group health
coverage plan for district or school employees under Section
48.275 [42.260], Education Code, other than amounts described by
Section 48.275(c)(2) [42.260(c)(2)(B)], are not used in computing
whether the district or school complies with Section 1581.052.
SECTION 3.087. Section 37.10(c)(2), Penal Code, is amended
to read as follows:
(2) An offense under this section is a felony of the
third degree if it is shown on the trial of the offense that the
governmental record was:
(A) a public school record, report, or assessment
instrument required under Chapter 39, Education Code, data reported
for a school district or open-enrollment charter school to the
Texas Education Agency through the Public Education Information
Management System (PEIMS) described by Sections 48.008 and 48.009
[Section 42.006], Education Code, under a law or rule requiring
that reporting, or a license, certificate, permit, seal, title,
letter of patent, or similar document issued by government, by
another state, or by the United States, unless the actor's intent is
to defraud or harm another, in which event the offense is a felony
of the second degree;
(B) a written report of a medical, chemical,
toxicological, ballistic, or other expert examination or test
performed on physical evidence for the purpose of determining the
connection or relevance of the evidence to a criminal action;
(C) a written report of the certification,
inspection, or maintenance record of an instrument, apparatus,
implement, machine, or other similar device used in the course of an
examination or test performed on physical evidence for the purpose
of determining the connection or relevance of the evidence to a
criminal action; or
(D) a search warrant issued by a magistrate.
SECTION 3.088. Section 39.03(d), Penal Code, is amended to
read as follows:
(d) An offense under this section is a Class A misdemeanor,
except that an offense is a felony of the third degree if the public
servant acted with the intent to impair the accuracy of data
reported to the Texas Education Agency through the Public Education
Information Management System (PEIMS) described by Sections 48.008
and 48.009 [Section 42.006], Education Code, under a law requiring
that reporting.
SECTION 3.089. Section 21.01, Tax Code, is amended to read
as follows:
Sec. 21.01. REAL PROPERTY. Real property is taxable by a
taxing unit if located in the unit on January 1, except as provided
by Chapter 49 [41], Education Code.
SECTION 3.090. Sections 21.02(b) and (c), Tax Code, are
amended to read as follows:
(b) Tangible personal property having taxable situs at the
same location as real property detached from a school district and
annexed by another school district under Chapter 49 [41], Education
Code, is taxable in the tax year in which the detachment and
annexation occurs by the same school district by which the real
property is taxable in that tax year under Chapter 49 [41],
Education Code. For purposes of this subsection and Chapter 49
[41], Education Code, tangible personal property has taxable situs
at the same location as real property detached and annexed under
Chapter 49 [41], Education Code, if the detachment and annexation
of the real property, had it occurred before January 1 of the tax
year, would have changed the taxable situs of the tangible personal
property determined as provided by Subsection (a) from the school
district from which the real property was detached to the school
district to which the real property was annexed.
(c) Tangible personal property has taxable situs in a school
district that is the result of a consolidation under Chapter 49
[41], Education Code, in the year in which the consolidation occurs
if the property would have had taxable situs in the consolidated
district in that year had the consolidation occurred before January
1 of that year.
SECTION 3.091. Section 25.25(k), Tax Code, is amended to
read as follows:
(k) The chief appraiser shall change the appraisal records
and school district appraisal rolls promptly to reflect the
detachment and annexation of property among school districts under
Subchapter C or G, Chapter 49 [41], Education Code.
SECTION 3.092. Section 311.013(n), Tax Code, is amended to
read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (4) of that
subsection. In addition to the amount otherwise required to be
paid into the tax increment fund, the district shall pay into the
fund an amount equal to the amount by which the amount of taxes the
district would have been required to pay into the fund in the
current year if the district levied taxes at the rate the district
levied in 2005 exceeds the amount the district is otherwise
required to pay into the fund in the year of the reduction. This
additional amount may not exceed the amount the school district
receives in state aid for the current tax year under Section 48.253
[42.2514], Education Code. The school district shall pay the
additional amount after the district receives the state aid to
which the district is entitled for the current tax year under
Section 48.253 [42.2514], Education Code.
SECTION 3.093. Section 312.002(g), Tax Code, is amended to
read as follows:
(g) "Taxing unit" has the meaning assigned by Section 1.04,
except that for a tax abatement agreement executed on or after
September 1, 2001, the term does not include a school district that
is subject to Chapter 48 [42], Education Code, and that is organized
primarily to provide general elementary and secondary public
education.
SECTION 3.094. Section 312.210(b), Tax Code, is amended to
read as follows:
(b) A tax abatement agreement with the owner of real
property or tangible personal property that is located in the
reinvestment zone described by Subsection (a) and in a school
district that has a local revenue level [wealth per student] that
does not exceed the [equalized wealth] level established under
Section 48.257 must exempt from taxation:
(1) the portion of the value of the property in the
amount specified in the joint agreement among the municipality,
county, and junior college district; and
(2) an amount equal to 10 percent of the maximum
portion of the value of the property that may under Section
312.204(a) be otherwise exempted from taxation.
SECTION 3.095. Section 313.027(i), Tax Code, is amended to
read as follows:
(i) A person and the school district may not enter into an
agreement under which the person agrees to provide supplemental
payments to a school district or any other entity on behalf of a
school district in an amount that exceeds an amount equal to the
greater of $100 per student per year in average daily attendance, as
defined by Section 48.005 [42.005], Education Code, or $50,000 per
year, or for a period that exceeds the period beginning with the
period described by Section 313.021(4) and ending December 31 of
the third tax year after the date the person's eligibility for a
limitation under this chapter expires. This limit does not apply
to amounts described by Subsection (f)(1) or (2).
ARTICLE 4. REPEALER
SECTION 4.001. (a) The following provisions of the
Education Code are repealed:
(1) Section 7.102(c)(5);
(2) Section 21.0481;
(3) Section 21.0482;
(4) Section 21.0483;
(5) Section 21.0484;
(6) Section 21.410;
(7) Section 21.411;
(8) Section 21.412;
(9) Section 21.413;
(10) Section 21.458(c);
(11) Sections 28.006(d-1) and (e);
(12) Section 29.097;
(13) Section 29.098;
(14) Section 29.165;
(15) Section 29.166;
(16) Sections 29.203(g)(1) and (3);
(17) Section 39.233;
(18) Section 39.234;
(19) the headings to Chapters 41 and 42;
(20) the heading to Subchapter A, Chapter 41;
(21) Section 41.002;
(22) Section 41.0041;
(23) the heading to Subchapter D, Chapter 41;
(24) Section 41.0931;
(25) Section 41.098;
(26) the heading to Subchapter E, Chapter 41;
(27) the heading to Subchapter A, Chapter 42;
(28) the heading to Section 42.006;
(29) Section 42.007;
(30) the heading to Subchapter B, Chapter 42;
(31) Section 42.102;
(32) Section 42.103;
(33) Section 42.104;
(34) the heading to Subchapter C, Chapter 42;
(35) Section 42.1541;
(36) Section 42.156;
(37) Section 42.160;
(38) the heading to Subchapter E, Chapter 42;
(39) Section 42.2513;
(40) Section 42.2517;
(41) Section 42.2518;
(42) Section 42.262;
(43) the headings to Subchapters F and G, Chapter 42;
and
(44) Section 42.352.
(b) Sections 322.008(b) and 403.302(m), Government Code,
are repealed.
(c) The following provisions of the Tax Code are repealed:
(1) Sections 26.08(o) and (p); and
(2) Section 312.210(c).
ARTICLE 5. TRANSITION; CONFLICT OF LAW
SECTION 5.001. (a) Except as provided by Subsection (b) or
(c) of this section, Article 2 of this Act applies beginning with
the 2019-2020 school year.
(b) Section 28.006, Education Code, as amended by this Act,
applies beginning with the 2020-2021 school year.
(c) Section 28.025, Education Code, as amended by this Act,
and Section 28.0256, Education Code, as added by this Act, apply
beginning with students enrolled at the 12th grade level during the
2021-2022 school year.
SECTION 5.002. Except as otherwise provided by this Act,
Section 26.08, Tax Code, as amended by this Act, applies beginning
with the 2019 tax year. A school district is required to calculate
the district's voter-approval tax rate for the 2019 tax year in the
manner provided by Section 26.08, Tax Code, as amended by this Act,
regardless of whether the district has already calculated that rate
or adopted a tax rate for the 2019 tax year before September 1,
2019.
SECTION 5.003. As soon as practicable after September 1,
2019:
(1) the State Board for Educator Certification shall
develop the Internet portal required by Section 21.006(g-1),
Education Code, as added by this Act; and
(2) the Texas Education Agency shall develop the
Internet portal required by Section 22.095, Education Code, as
added by this Act.
SECTION 5.004. The Texas Education Agency shall establish
the registry of persons who are not eligible to be employed by a
school district, district of innovation, open-enrollment charter
school, other charter entity, regional education service center, or
shared services arrangement, as required by Section 22.092,
Education Code, as added by this Act, as soon as practicable after
September 1, 2019, and not later than January 1, 2020.
SECTION 5.005. The State Board for Educator Certification
may not issue a new or renew a master teacher certificate issued
under Section 21.0481, 21.0482, 21.0483, or 21.0484, Education
Code, on or after the effective date of this Act.
SECTION 5.006. Not later than August 1, 2020, the Texas
Education Agency shall submit the initial report required under
Section 29.1544, Education Code, as added by this Act.
SECTION 5.007. Notwithstanding any provision of the
Education Code, for the 2019 tax year, a school district that took
action to comply with publication requirements under Section
44.004, Education Code, before the effective date of this Act may
amend the district's previously published notices to comply with
the changes made to the district's permissible and proposed tax
rates as a result of this Act by posting those changes on the
district's Internet website. A school district that complied with
the law in effect at the time of the district's original publication
may hold the district's scheduled public hearing as originally
published.
SECTION 5.008. Not later than December 1, 2020, each school
district shall submit to the legislature a report on salary or wage
increases provided to district employees under Section 48.051(c),
Education Code, as added by this Act, for the 2019-2020 school year.
The report must include for each salary or wage increase:
(1) the employee's position at the school district;
and
(2) the amount of the increase.
SECTION 5.009. As soon as practicable after the effective
date of Section 48.1021, Education Code, as added by this Act, the
commissioner of education shall establish and appoint members to
the advisory committee required under that section.
SECTION 5.010. (a) Notwithstanding any other law, to secure
the best value for the state and ensure the best design, operation,
and implementation of assessment instruments, the Texas Education
Agency may:
(1) provide an additional period for all respondents
to provide new proposals for the assessment solicitations posted in
2019; and
(2) extend the current assessment contracts through
the end of the state fiscal biennium ending August 31, 2021.
(b) This section expires September 1, 2021.
SECTION 5.011. (a) The State Board for Educator
Certification is required to implement a provision of Article 2A of
this Act only if the legislature appropriates money specifically
for that purpose. If the legislature does not appropriate money
specifically for that purpose, the board may, but is not required
to, implement a provision of Article 2A of this Act using other
appropriations available for that purpose.
(b) The Texas Education Agency is required to implement a
provision of Article 2A of this Act only if the legislature
appropriates money specifically for that purpose. If the
legislature does not appropriate money specifically for that
purpose, the agency may, but is not required to, implement a
provision of Article 2A of this Act using other appropriations
available for that purpose.
SECTION 5.012. If any provision of this Act or its
application to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of this
Act that can be given effect without the invalid provision or
application, and to this end the provisions of this Act are declared
to be severable.
SECTION 5.013. To the extent of any conflict, this Act
prevails over another Act of the 86th Legislature, Regular Session,
2019, regardless of the relative dates of enactment.
ARTICLE 6. EFFECTIVE DATE
SECTION 6.001. (a) Except as otherwise provided by this
section or as otherwise provided by this Act, this Act takes effect
September 1, 2019.
(b) Section 11.184, Education Code, as added by this Act,
takes effect January 1, 2020.
(c) Section 47.006, Education Code, as added by this Act,
takes effect only if H.B. 1525 or similar legislation of the 86th
Legislature, Regular Session, 2019, relating to the administration
and collection of sales and use taxes applicable to sales involving
marketplace providers is enacted and becomes law.
(d) Subject to Subsection (c) of this section, Chapter 47,
Education Code, as added by this Act, takes effect January 1, 2020.
(e) Sections 48.1021 and 48.1041, Education Code, as added
by this Act, take effect immediately 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. If this Act does not
receive the vote necessary for Sections 48.1021 and 48.1041,
Education Code, as added by this Act, to have immediate effect,
those sections take effect September 1, 2019.
(f) Article 2 and Section 5.010 of this Act take effect
immediately 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. If this Act does not receive the vote
necessary for immediate effect, Article 2 and Section 5.010 of this
Act take effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3 was passed by the House on April 3,
2019, by the following vote: Yeas 148, Nays 1, 0 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3 on May 7, 2019, and requested the appointment of a
conference committee to consider the differences between the two
houses; that the House adopted the conference committee report on
H.B. No. 3 on May 25, 2019, by the following vote: Yeas 139, Nays
0, 0 present, not voting; and that the House adopted H.C.R. No. 193
authorizing certain corrections in H.B. No. 3 on May 27, 2019, by
the following vote: Yeas 149, Nays 0, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3 was passed by the Senate, with
amendments, on May 6, 2019, by the following vote: Yeas 26, Nays 2,
3 present,
not voting; at the request of the House, the Senate
appointed a conference committee to consider the differences
between the two houses; that the Senate adopted the conference
committee report on H.B. No. 3 on May 25, 2019, by the following
vote: Yeas 30, Nays 0; and that the Senate adopted H.C.R. No. 193
authorizing certain corrections in H.B. No. 3 on May 27, 2019, by
the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
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Governor