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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Comm_Sub.html
 
 
  By: Huberty, et al. (Senate Sponsor - Taylor) H.B. No. 3
         (In the Senate - Received from the House April 4, 2019;
  April 4, 2019, read first time and referred to Committee on
  Education; May 1, 2019, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 8, Nays 0,
  3 present not voting; May 1, 2019, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 3 By:  Taylor
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to public school finance and public education; 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.  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
  allotments under Sections 48.101, 48.109, 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 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 product of:
               (1)  the quotient of:
                     (A)  the total amount of funding provided to
  eligible school districts under Section 48.101; and
                     (B)  the total number of students in average daily
  attendance in school districts that receive an allotment under
  Section 48.101; and
               (2)  the sum of one and the quotient of:
                     (A)  the total number of students in average daily
  attendance in school districts that receive an allotment under
  Section 48.101; and
                     (B)  the total number of students in average daily
  attendance in school districts statewide. [In determining funding
  for an open-enrollment charter school under Subsection (a):
               [(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 Subsections
  [Subsection] (a) and (a-1), 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-3)  In addition to the funding provided by Subsections
  (a), (a-1), and (a-2), a charter holder is entitled to receive
  funding for the open-enrollment charter school under Sections
  48.109, 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.
         (a-4)  In addition to the funding provided by Subsections
  (a), (a-1), (a-2), and (a-3), for an open-enrollment charter school
  that does not receive an allotment under Section 48.051, a charter
  holder is entitled to receive for the school an allotment under
  Section 48.101 for each student in average daily attendance based
  on the number of students in average daily attendance for which the
  school receives an allotment under Section 48.102.
         SECTION 1.002.  Section 13.054, Education Code, is amended
  by adding Subsection (f-1) to read as follows:
         (f-1)  Notwithstanding Subsection (f), for the 2019-2020 and
  2020-2021 school years, for a district receiving additional funding
  under Subsection (f) for an annexation that occurred before
  September 1, 2019, the value for the fraction under Subsection (f)
  shall be substituted with the value that is equal to the fraction
  determined under that subsection multiplied by the state
  compression percentage, as determined under Section 48.255.  This
  subsection expires September 1, 2021.
         SECTION 1.003.  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 1.004.  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 1.005.  Section 44.004, Education Code, is amended
  by amending Subsections (c) and (e) 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 Rollback Rate: The highest tax rate the district can
  adopt before requiring voter approval at an election is (the school
  district 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 rollback rate of (the school district 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.
         SECTION 1.006.  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 1.007.  Section 45.003, Education Code, is amended
  by adding Subsections (b-1), (d-1), (d-2), and (d-3) 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 provided by Subsection (d-2) or Section
  26.08(a-1), Tax Code, a school district may not adopt a maintenance
  and operations tax rate for the 2019 tax year that exceeds the tax
  rate that results after adjusting the district's 2018 tax rate in
  accordance with Sections 45.0032, 48.202, and 48.255.
         (d-2)  A school district that, before January 1, 2019,
  adopted a strategic plan through action taken by the board of
  trustees of the school district during a public meeting that
  proposed a maintenance and operations tax rate for the 2019 tax year
  that exceeds the rate permitted under Subsection (d-1) may, subject
  to voter approval, adopt a rate that is equal to the sum of the rate
  permitted under Subsection (d-1) and one-half the difference
  between the maximum rate permitted under Section 45.003, as that
  section existed during the 2018 tax year, and the district's
  adopted tax rate for the 2018 tax year.
         (d-3)  Subsections (d-1) and (d-2) and this subsection
  expire 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 1.008.  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.
         (b)  A district's enrichment tax rate consists of:
               (1)  any cents of additional maintenance and operations
  tax effort, not to exceed six 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 rollback tax rate 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.
         SECTION 1.009.  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 1.010.  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 1.011.  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. (a)
  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.
         (b)  A decision made by the commissioner under this chapter
  is final and may not be appealed.
         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 1.012.  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 who are educationally disadvantaged and
  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)  The commissioner shall adopt rules necessary for the
  implementation of this section.
         SECTION 1.013.  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) From funds specifically
  appropriated for the purpose or other funds available to the
  commissioner for that purpose, the commissioner 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 shall make the adjustment 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 1.014.  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 1.015.  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].
         SECTION 1.016.  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 1.017.  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.
         (b)  Before making an adjustment under Subsection (a), 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 2022-2023 school year, the
  commissioner may not make an adjustment under Subsection (a).
         (e)  This section expires September 1, 2024.
         Sec. 48.012.  STUDY ON GEOGRAPHIC EDUCATION COST VARIATIONS.
  (a) The agency shall conduct a study on geographic variations in
  known resource costs and costs of education due to factors beyond
  the control of school districts. The study must include a review of
  cost drivers for school districts.
         (b)  Not later than December 1, 2020, the agency shall submit
  to the legislature a report on the results of the study.
         (c)  This section expires September 1, 2021.
         SECTION 1.018.  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 1.019.  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 $5,880 [$4,765] or the amount that results
  from the following formula:
  A = $5,880 [$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)  Out of the total statewide allotment under this section,
  the commissioner shall annually set aside $6 million to fund the
  blended learning grant program under Section 29.924. After
  deducting the amount set aside under this subsection from the total
  statewide allotment under this section, the commissioner shall
  reduce each school district's allotment under this section
  proportionately and allocate funds to each district accordingly.  
  [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).]
         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 1.020.  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 1.021.  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 contains at least 300 square
  miles and has not more 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 .00058) X BA.
         (c)  A school district that contains less than 300 square
  miles and has not more 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 .00044) X BA.
         (d)  A school district that offers a kindergarten through
  grade 12 program and has fewer 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) or (c) for which the
  district is eligible; or
               (2)  AA = ((5,000 - ADA) X .000025) X BA.
         SECTION 1.022.  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 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 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)  Funds allocated under this section, other than an
  indirect cost allotment established under commissioner [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 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 1.023.  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 0.12 or a
  greater amount provided by appropriation.
         (b)  A school district is entitled to the allotment under
  Subsection (a) only for a student who:
               (1)  is receiving instruction that:
                     (A)  meets applicable dyslexia program criteria
  established by the State Board of Education; and
                     (B)  is provided by a person with specific
  training in providing that instruction; or
               (2)  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.
         SECTION 1.024.  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).
         (k)  In addition to other purposes for which funds allocated
  under this section may be used, those funds may also [(c) Funds
  allocated under this section shall] be used to [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 students at risk of dropping out of school, as
  defined by Section 29.081, and all other students. 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].  
  [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 local audit
  of compensatory education expenditures, shall withhold from a
  district's foundation school fund payment an amount equal to the
  amount of compensatory education funds the agency determines were
  not used in compliance with Subsection (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 (c).
         [(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 1.025.  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)     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, and
  other supplies required for quality instruction and smaller class
  size.]
         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 9 [nine] through 12 or in career and technology
  education programs for students with disabilities in grades 7 
  [seven] through 12, a district is entitled to:
               (1)  an annual allotment equal to the [adjusted] basic
  allotment multiplied by a weight of 1.35; and
               (2)  $50, if the student is enrolled in two or more
  advanced career and technology education classes for a total of
  three or more credits.
         (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)  Out of the total statewide allotment for career and
  technology education under this section, the commissioner shall
  annually set aside $8 million to fund the grant program for P-TECH
  schools under Section 29.556, in addition to other funds
  appropriated for that purpose. After deducting the amount set aside
  under this subsection from the total statewide allotment for career
  and technology education under this section, the commissioner shall
  proportionately reduce each school district's allotment under this
  section and allocate funds to each district accordingly. [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 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 1.026.  Subchapter C, Chapter 48, Education Code, as
  added by this Act, is amended by adding Section 48.108 to read as
  follows:
         Sec. 48.108.  EARLY READING 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 in prekindergarten through third grade, such as programs
  and services designed to assist the district in achieving the goals
  set in the district's early childhood literacy proficiency plan
  adopted under Section 11.185 or services designed to improve
  support for children three years of age or younger who are not
  enrolled in prekindergarten.
         (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.
         SECTION 1.027.  Subchapter C, Chapter 48, Education Code, as
  added by this Act, is amended by adding Sections 48.109, 48.110,
  48.111, 48.112, and 48.113 to read as follows:
         Sec. 48.109.  THIRD GRADE READING OUTCOMES BONUS. (a)  For
  purposes of the outcomes bonus under this section, the commissioner
  shall determine the threshold percentage for each of the following
  cohorts that is equal to the 25th percentile of statewide meets
  grade level performance by that cohort of public school students on
  the applicable assessment instrument as determined under
  Subsection (f):
               (1)  students who are educationally disadvantaged;
               (2)  students who are not educationally disadvantaged;
  and
               (3)  students who are enrolled in a special education
  program under Subchapter A, Chapter 29, regardless of whether the
  students are educationally disadvantaged.
         (b)  Each year, the commissioner shall determine for each
  school district the minimum number of students in each cohort
  described by Subsection (a) enrolled in the district who would have
  to perform at or above the meets grade level performance standard
  set by the commissioner on the third grade reading assessment
  instrument administered under Section 39.023 or an alternative
  third grade reading assessment instrument adopted under Subsection
  (e) in order for the district to achieve a meets grade level
  performance percentage for that cohort on the applicable assessment
  instrument equal to the threshold percentage established for that
  cohort under Subsection (a).
         (c)  For each student in a cohort described by Subsection (a)
  who performed at or above the meets grade level performance
  standard set by the commissioner on an assessment instrument
  described by that subsection during the preceding school year in
  excess of the minimum number of students determined for the
  applicable district cohort under Subsection (b), a school district
  is entitled to an annual outcomes bonus of:
               (1)  if the student is educationally disadvantaged,
  $4,000;
               (2)  if the student is not educationally disadvantaged,
  $1,000; and
               (3)  if the student is enrolled in a special education
  program under Subchapter A, Chapter 29, $1,000.
         (d)  A school district is entitled to an outcomes bonus under
  each provision of Subsection (c) for which a student qualifies.
         (e)  For purposes of this section, the commissioner shall
  adopt at least one alternative third grade reading assessment
  instrument and set a meets grade level performance standard on the
  assessment instrument equivalent to the meets grade level
  performance standard set under Section 39.0241 for the third grade
  reading assessment instrument administered under Section 39.023.
  The assessment instrument adopted under this subsection must have
  been administered to a sufficient number of public school students,
  as determined by the commissioner, to enable the commissioner to
  establish a percentile of statewide meets grade level performance
  for the assessment instrument under Subsection (f).
         (f)  For each year, the commissioner shall establish the 25th
  percentile of statewide meets grade level performance for each
  assessment instrument described by Subsection (b).  The 25th
  percentile of statewide meets grade level performance for the third
  grade reading assessment instrument administered under Section
  39.023 must be based on student performance on the assessment
  instrument in the 2017-2018 school year.  The 25th percentile of
  statewide meets grade level performance for an alternative third
  grade reading assessment instrument adopted under Subsection (e)
  must be equivalent to the 25th percentile of statewide meets grade
  level performance established for the third grade reading
  assessment instrument administered under Section 39.023.  If for
  any year the commissioner determines that the assessment instrument
  has materially changed, the commissioner shall adjust the
  percentile of statewide meets grade level performance in a manner
  that maintains the threshold percentages determined under
  Subsection (a) for the assessment instrument before the change. 
         (g)  In determining the amount of funding to which a school
  district is entitled under this section, the commissioner shall
  consider student performance on the assessment instrument
  described by Subsection (b) that would result in the greater amount
  of funding.
         (h)  A school district may not receive funding based on
  student performance on an alternative third grade reading
  assessment instrument adopted under Subsection (e) unless the
  district:
               (1)  administers the assessment instrument:
                     (A)  to all students to whom the third grade
  reading assessment instrument under Section 39.023 is required to
  be administered, other than students who receive:
                           (i)  an exemption from the administration of
  the third grade reading assessment instrument; or
                           (ii)  accommodations for the administration
  of the third grade reading assessment instrument that are not
  provided for the administration of the alternative third grade
  reading assessment instrument; and
                     (B)  using test security and administration
  protocols required by commissioner rule; and
               (2)  provides to the agency student performance data
  for the assessment instrument in accordance with commissioner rule.
         (i)  This section does not:
               (1)  require a school district to administer an
  alternative third grade reading assessment instrument adopted
  under Subsection (e); or
               (2)  alter a school district's obligations regarding
  the administration of the third grade reading assessment instrument
  under Section 39.023.
         (j)  At least once every five years, the agency shall:
               (1)  conduct a longitudinal impact study on each
  alternative third grade reading assessment instrument adopted
  under Subsection (e); and
               (2)  submit to the legislature a report on the results
  of the study conducted under Subdivision (1).
         Sec. 48.110.  COLLEGE, CAREER, OR MILITARY READINESS
  OUTCOMES BONUS. (a) For purposes of the outcomes bonus under this
  section, the commissioner shall determine the threshold percentage
  for each of the following cohorts that is equal to the 25th
  percentile of statewide college, career, or military readiness as
  described by Subsection (e) for that cohort of annual public school
  graduates for the 2016-2017 school year:
               (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.
         (b)  Each year, the commissioner shall determine for each
  school district the minimum number of annual graduates in each
  cohort described by Subsection (a) who would have to demonstrate
  college, career, or military readiness as described by Subsection
  (e) 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
  (a).
         (c)  For each annual graduate in a cohort described by
  Subsection (a) who demonstrates college, career, or military
  readiness as described by Subsection (e) in excess of the minimum
  number of students determined for the applicable district cohort
  under Subsection (b), 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.
         (d)  A school district is entitled to an outcomes bonus under
  each subdivision of Subsection (c) for which an annual graduate
  qualifies.
         (e)  For purposes of this section, an annual graduate
  demonstrates:
               (1)  college readiness if the annual graduate:
                     (A)  achieves a minimum score set by commissioner
  rule 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 a minimum score set by commissioner
  rule 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 minimum score set by commissioner
  rule 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.
         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 0.042 for each
  student in average daily attendance.
         Sec. 48.112.  TEACHER INCENTIVE ALLOTMENT. (a) In this
  section, "classroom teacher" has the meaning assigned by Section
  21.751.
         (b)  For each classroom teacher with a teacher designation
  under Subchapter P, Chapter 21, 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 (c):
               (1)  $12,000, or an increased amount not to exceed
  $32,000 as determined under Subsection (c), for each master
  teacher;
               (2)  $6,000, or an increased amount not to exceed
  $18,000 as determined under Subsection (c), for each exemplary
  teacher; and
               (3)  $3,000, or an increased amount not to exceed
  $9,000 as determined under Subsection (c), for each recognized
  teacher.
         (c)  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 (d):
               (1)  $5,000 for each master teacher;
               (2)  $3,000 for each exemplary teacher; and
               (3)  $1,500 for each recognized teacher.
         (d)  Except as provided by Subsection (e), 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).
         (e)  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 (d)(1) or (2).
         (f)  The commissioner shall annually make available to the
  public a list of campuses with the projected allotment amounts per
  teacher designation at each campus.
         (g)  A district shall annually certify that funds received
  under this section were used as follows:
               (1)  at least 90 percent of the funds were used for
  educator compensation; and
               (2)  any other funds received under this section were
  used for costs associated with implementing Subchapter P, Chapter
  21, including efforts to support teachers in obtaining
  designations.
         Sec. 48.113.  ACCELERATED CAMPUS EXCELLENCE ALLOTMENT.  (a)  
  A school district is entitled to an allotment equal to the basic
  allotment multiplied by 0.1 for each student in average daily
  attendance at a district campus that:
               (1)  has submitted and received approval for:
                     (A)  a campus turnaround plan that the
  commissioner determines meets the requirements for an accelerated
  campus excellence turnaround plan under Section 39A.105(b); or
                     (B)  a campus implementation plan that includes
  the provisions required for an accelerated campus excellence
  turnaround plan under Section 39A.105(b); and
               (2)  received a performance rating of unacceptable or
  improvement required in at least one of the last five school years.
         (b)  A school district may not receive an allotment under
  this section for more than five school years.
         SECTION 1.028.  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 1.029.  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:
                           (i)  is not classified as a student eligible
  for special education services; and
                           (ii)  has not transferred to the district in
  which the student is enrolled under Section  25.035 or 25.036; 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) [(d)]  Subject to Subsection (g) [(d-1)], the amount
  appropriated for allotments under this section may not exceed $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)].
         (g) [(d-1)]  In addition to the appropriation amount
  described by Subsection (f) [(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 (f) 
  [(d)].  The commissioner shall first apply the funds appropriated
  under this subsection to prevent any reduction under Subsection (f) 
  [(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 1.030.  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 1.031.  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 1.032.  Subchapter D, Chapter 48, Education Code, as
  added by this Act, is amended by adding Sections 48.155, 48.156, and
  48.157 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).
         Sec. 48.157.  TEACHER INCENTIVE FEE REIMBURSEMENT.  A school
  district is entitled to reimbursement for any fee paid under
  Subchapter P, Chapter 21, or membership fees paid to the National
  Board for Professional Standards for the purpose of Section
  21.753(b).
         SECTION 1.033.  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 1.034.  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 [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 [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 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 $5,880, 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 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 $5,880, 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)  For the 2019 tax year, Subsection (f) applies to a
  district's maintenance and operations tax rate after adjusting the
  district's rate in accordance with Section 45.0032.  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 1.035.  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 1.036.  Sections 42.251, 42.2511, 42.2514, 42.2515,
  and 42.2516, 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, and 48.255, 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.  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.
         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)  92 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].
         SECTION 1.037.  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 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)  100 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].
         SECTION 1.038.  Section 42.252, Education Code, is
  transferred to Subchapter F, Chapter 48, Education Code, as added
  by this Act, redesignated as Section 48.256, Education Code, and
  amended to read as follows:
         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)     A school district must raise its total local share of
  the Foundation School Program to be eligible to receive foundation
  school fund payments.]
         SECTION 1.039.  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
  revenue level, which is the 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 the sum of 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
  district's tier one revenue level under Subsection (a) is less than
  the amount of the district's entitlement under Section
  48.266(a)(1), the agency shall adjust the amount of the district's
  tier one revenue level under Subsection (a) to ensure that the
  district retains the amount of local funds necessary for the
  district's entitlement under Section 48.266(a)(1).
         (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).
         SECTION 1.040.  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 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 defining "disaster
  remediation costs" for purposes of this section and 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.
         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)  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.
         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 1.041.  Subchapter F, Chapter 48, Education Code, as
  added by this Act, is amended by adding Sections 48.277, 48.278,
  48.279, and 48.280 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)  100 percent of the district's or school's total
  maintenance and operations revenue per student in average daily
  attendance for the applicable school year under Subsection (b)(1)
  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 applicable school
  year under Subsection (b)(1) 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 2020-2021 school year;
               (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;
                     (C)  an adjustment for property value affected by
  a state of disaster under former Section 42.2523;
                     (D)  50 percent of the third grade reading
  outcomes bonus under Section 48.109;
                     (E)  50 percent of the college, career, or
  military readiness outcomes bonus under Section 48.110;
                     (F)  50 percent of the teacher incentive allotment
  under Section 48.112; and
                     (G)  the classroom teacher and librarian
  allotment under Section 48.280;
               (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 school district or open-enrollment charter school is
  not entitled to an allotment under Subsection (a) beginning with
  the 2024-2025 school year.
         (d)  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.
         Sec. 48.280.  CLASSROOM TEACHER AND LIBRARIAN ALLOTMENT.
  (a) In this section:
               (1)  "A" is the classroom teacher and librarian
  allotment to which a district is entitled under Subsection (b);
               (2)  "E" is the total number of classroom teachers and
  full-time librarians employed by the district in the 2018-2019
  school year;
               (3)  "CYADA" is the number of students in average daily
  attendance in the district for the current school year; and
               (4)  "BYADA" is the number of students in average daily
  attendance in the district for the 2018-2019 school year.
         (b)  Except as provided by Subsection (c), a school district
  is entitled to receive an annual allotment in an amount equal to the
  lesser of:
               (1)  A = (($5,000 X E X 1.108)/BYADA) X CYADA; or
               (2)  A = $5,000 X E X 1.108.
         (c)  For a school district or open-enrollment charter school
  that provided social security coverage, as defined by Section
  606.001, Government Code, for district or school employees for whom
  the district or school receives funding under this section before
  January 1, 2019, each reference to a value of 1.108 under Subsection
  (b) is replaced with the value of 1.17.
         (d)  A school district or open-enrollment charter school
  shall use the amount received under this section for classroom
  teacher and full-time librarian salaries and benefits.
         SECTION 1.042.  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 1.043.  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 1.044.  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 1.045.  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 1.046.  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 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 1.047.  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 1.048.  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 1.049.  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 1.050.  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 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.
         (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 1.051.  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 1.052.  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 1.053.  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 1.054.  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 1.055.  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 1.056.  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 1.057.  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 1.058.  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 1.059.  Section 26.08, Tax Code, is amended by
  amending Subsections (a), (b), (i), and (n) and adding Subsection
  (a-1) to read as follows:
         (a)  If the governing body of a school district adopts a tax
  rate that exceeds the district's 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, 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 rollback tax rate for that tax year may not be considered
  when calculating the district's rollback 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 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 $0.04 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].
  ARTICLE 2. PUBLIC EDUCATION
         SECTION 2.001.  Chapter 4, Education Code, is amended by
  adding Section 4.003 to read as follows:
         Sec. 4.003.  60x30TX GOALS. To further the state's master
  plan 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, the following goals are
  established:
               (1)  at least 60 percent of all public school students
  in each demographic category considered under Section 39.053(c)(3)
  shall perform satisfactorily on a third grade reading assessment
  instrument described by Section 48.109(b) by 2030; and
               (2)  at least 60 percent of all public school students
  in each demographic category considered under Section 39.053(c)(3)
  who graduate high school shall meet college, career, and military
  readiness standards as provided by Section 48.110(e) by 2030.
         SECTION 2.002.  Section 7.028(a), Education Code, is amended
  to read as follows:
         (a)  Except as provided by Section 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 2.003.  Subchapter B, Chapter 7, Education Code, is
  amended by adding Sections 7.038 and 7.039 to read as follows:
         Sec. 7.038.  60x30TX PROGRESS REPORT. (a) Not later than
  December 1 of each even-numbered year, the agency and the Texas
  Higher Education Coordinating Board jointly shall prepare and
  submit to the governor, the lieutenant governor, the speaker of the
  house of representatives, and the standing legislative committees
  with primary jurisdiction over public education a report assessing
  the state's progress toward achieving the 60x30TX goals established
  under Section 4.003.
         (b)  The report must:
               (1)  be combined with the Texas Higher Education
  Coordinating Board's report on the state's master plan for higher
  education required under Section 61.051(a-3); and
               (2)  analyze progress made toward the 60x30TX goals
  disaggregated by each demographic category considered under
  Section 39.053(c)(3).
         Sec. 7.039.  POSTSECONDARY OUTCOMES REPORTING. To track
  progress toward the 60x30TX goals established under Section 4.003,
  the agency shall:
               (1)  maintain an online reporting system regarding the
  postsecondary outcomes of students enrolled in:
                     (A)  each school district or open-enrollment
  charter school; and
                     (B)  each public high school; and
               (2)  collect data as necessary to maintain the
  reporting system under Subdivision (1).
         SECTION 2.004.  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 2.005.  Subchapter D, Chapter 11, Education Code, is
  amended by adding Section 11.185 to read as follows:
         Sec. 11.185.  60x30TX DISTRICT GOALS. (a) To support the
  achievement of the 60x30TX goals established under Section 4.003,
  the board of trustees of a school district shall develop at least
  three student outcome goals, with five-year performance targets for
  each goal. At least one goal must support early childhood literacy.
         (b)  The board of trustees shall regularly monitor the
  district's progress toward each goal developed under Subsection
  (a), including progress toward those goals by students in each
  demographic category considered under Section 39.053(c)(3).
         (c)  Not later than September 1 of each year, each school
  district shall post on the district's Internet website a report
  assessing the progress of the district and each campus in the
  district toward achieving the goals developed under Subsection (a).
         SECTION 2.006.  Subchapter F, Chapter 11, Education Code, is
  amended by adding Section 11.256 to read as follows:
         Sec. 11.256.  EARLY CHILDHOOD LITERACY PLAN. (a) To support
  achieving the student outcome goal or goals regarding early
  childhood literacy developed under Section 11.185, each school
  district shall adopt and post on the district's Internet website an
  early childhood literacy plan.
         (b)  The plan adopted under Subsection (a) must:
               (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)  identify the reading instruments used to diagnose
  student reading development and comprehension in prekindergarten
  through third grade, including the purpose of each instrument and
  the frequency of its use;
               (3)  provide for targeted professional development for
  classroom teachers in kindergarten or first, second, or third grade
  that focuses on scientifically supported reading instructional
  practices and the effective use of reading instruments intended to
  diagnose reading development and comprehension;
               (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 a quarterly report to the board of
  trustees of the district on the district's progress toward the
  student outcome goal or goals regarding early childhood literacy
  developed under Section 11.185, including aggregated results on
  reading instruments administered in prekindergarten through third
  grade during that quarter; and
               (5)  be reviewed annually by the board of trustees at a
  public meeting.
         (c)  A school district shall post the quarterly report
  described by Subsection (b)(4)(B) on the district's Internet
  website.
         (d)  The agency shall assist school districts as necessary to
  ensure compliance with this section.
         SECTION 2.007.  Section 12A.003(b), Education Code, is
  amended to read as follows:
         (b)  A local innovation plan must:
               (1)  provide for a comprehensive educational program
  for the district, which program may include:
                     (A)  innovative curriculum, instructional
  methods, and provisions regarding community participation, campus
  governance, and parental involvement;
                     (B)  except as provided by Section 12A.004(a), 
  modifications to the school day or year;
                     (C)  provisions regarding the district budget and
  sustainable program funding;
                     (D)  accountability and assessment measures that
  exceed the requirements of state and federal law; and
                     (E)  any other innovations prescribed by the board
  of trustees; and
               (2)  identify requirements imposed by this code that
  inhibit the goals of the plan and from which the district should be
  exempted on adoption of the plan, subject to Section 12A.004.
         SECTION 2.008.  Section 12A.004(a), Education Code, is
  amended to read as follows:
         (a)  A local innovation plan may not provide for the
  exemption of a district designated as a district of innovation from
  the following provisions of this title:
               (1)  a state or federal requirement applicable to an
  open-enrollment charter school operating under Subchapter D,
  Chapter 12;
               (2)  Subchapters A, C, D, and E, Chapter 11, except that
  a district may be exempt from Sections 11.1511(b)(5) and (14) and
  Section 11.162;
               (3)  state curriculum and graduation requirements
  adopted under Chapter 28; [and]
               (4)  academic and financial accountability and
  sanctions under Chapters 39 and 39A; and
               (5)  the first day of instruction requirements under
  Section 25.0811(a)(3).
         SECTION 2.009.  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. (a)  The
  board shall place the appropriate designation issued to a teacher
  under Subchapter P on the teacher's certificate as soon as
  practicable after being notified by the agency of the issuance of
  the designation. 
         (b)  The board shall remove a designation under Subchapter P
  from a teacher's certificate on:
               (1)  expiration of the designation, unless the agency
  notifies the board that the designation has been renewed; or
               (2)  revocation of the designation under Section
  21.755(d).
         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 2.010.  Sections 21.351(a) and (c), Education Code,
  are amended to read as follows:
         (a)  The commissioner shall adopt a recommended appraisal
  process and criteria on which to appraise the performance of
  teachers. The criteria must be based on observable, job-related
  behavior, including:
               (1)  a teacher's [teachers'] implementation of
  discipline management procedures; and
               (2)  the performance of a teacher's [teachers']
  students.
         (c)  Under the recommended appraisal process, an appraiser
  must be the teacher's supervisor or a person approved by the board
  of trustees. An appraiser who is a classroom teacher may not
  appraise the performance of another classroom teacher who teaches
  at the same school campus at which the appraiser teaches, unless it
  is impractical because of the number of campuses or unless the
  appraiser is in a supervisory role or is the chair of a department
  or grade level whose job description includes classroom observation
  responsibilities.
         SECTION 2.011.  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 2.012.  Section 21.355(d), Education Code, is
  amended to read as follows:
         (d)  A school district or open-enrollment charter school
  shall [may] give the agency information regarding the performance
  of a teacher or administrator, including a document evaluating the
  performance of a teacher or administrator currently or previously
  employed by the district or school [for purposes of an
  investigation conducted by the agency].
         SECTION 2.013.  Subchapter I, Chapter 21, Education Code, is
  amended by adding Section 21.4023 to read as follows:
         Sec. 21.4023.  CLASSROOM TEACHER AND LIBRARIAN SALARY
  INCREASE. (a) A classroom teacher or full-time librarian employed
  by a school district or open-enrollment charter school in the
  2019-2020 school year is, as long as the teacher or librarian is
  employed by the same district or school, entitled to a salary that
  is at least equal to the salary the teacher or librarian received
  for the 2019-2020 school year.
         (a-1)  For the 2019-2020 school year, a school district or
  open-enrollment charter school shall increase the salary of each
  classroom teacher and full-time librarian employed by the district
  or school in the 2018-2019 school year by at least $5,000. This
  subsection expires September 1, 2020.
         (b)  The commissioner may adopt rules as necessary to
  implement this section.
         SECTION 2.014.  Section 21.410(c), Education Code, is
  amended to read as follows:
         (c)  The commissioner shall annually identify each high-need
  campus in a school district using criteria established by the
  commissioner by rule, including performance on the language arts
  [reading] assessment instrument administered under Section 39.023.  
  The commissioner shall also use the criteria to rank campuses in
  order of greatest need.
         SECTION 2.015.  Section 21.4551(c), Education Code, is
  amended to read as follows:
         (c)  The commissioner by rule shall require a teacher to
  attend a reading academy if the teacher provides instruction in
  reading, mathematics, science, or social studies to students at the
  sixth, seventh, or eighth grade level at a campus that fails to
  satisfy any standard under Section 39.054(e) on the basis of
  student performance on the language arts [reading] assessment
  instrument administered under Section 39.023(a) to students in any
  grade level at the campus.
         SECTION 2.016.  Chapter 21, Education Code, is amended by
  adding Subchapter P to read as follows:
  SUBCHAPTER P.  RECOGNIZED, EXEMPLARY, AND MASTER TEACHER
  DESIGNATIONS
         Sec. 21.751.  DEFINITION. In this subchapter, "classroom
  teacher" includes an individual who:
               (1)  is a teacher of record who teaches at least half
  the average number of students for a teaching assignment at the
  school campus at which the teacher is employed; and
               (2)  satisfies the amount of teaching time requirement
  in the definition of a classroom teacher under Section 5.001 by
  providing educator leadership, including collaborating with,
  mentoring, or supporting other teachers.
         Sec. 21.752.  RECOGNIZED, EXEMPLARY, AND MASTER TEACHER
  DESIGNATIONS.  (a)  To recognize the performance of teachers in this
  state, the commissioner shall:
               (1)  establish an approval process for school districts
  and open-enrollment charter schools to designate a teacher as a
  recognized, exemplary, or master teacher and include the
  designation on the teacher's teaching certificate;
               (2)  develop and provide technical assistance for
  school districts and open-enrollment charter schools in making
  teacher designations, including:
                     (A)  methods to involve staff in locally
  developing the process for designating teachers under this
  subchapter; and
                     (B)  assistance focusing on problems faced by
  rural school districts; and
               (3)  subject to Subsection (b), authorize school
  districts and open-enrollment charter schools to make teacher
  designations for a five-year period, provided that the district's
  or school's teacher designation system meets the requirements under
  Section 21.754.
         (b)  The commissioner shall verify that the appraisals of a
  representative sample of classroom teachers meet the requirements
  for teacher designations under this subchapter. Verification may
  include on-site classroom observations or observations by video or
  audio recording of classroom sessions.
         (c)  The commissioner may not rely solely on student
  performance on an assessment instrument administered under Section
  39.023 in determining whether a school district's or
  open-enrollment charter school's teacher designation system
  complies with this subchapter.
         Sec. 21.753.  ELIGIBILITY CRITERIA FOR TEACHER DESIGNATION.
  (a)  To be eligible for a teacher designation under this subchapter,
  a classroom teacher must:
               (1)  hold an eligible teaching certificate issued under
  Subchapter B; and
               (2)  satisfy any additional requirements adopted by the
  school district or open-enrollment charter school at which the
  teacher is employed.
         (b)  A school district or open-enrollment charter school may
  designate a classroom teacher as recognized if the classroom
  teacher:
               (1)  holds a National Board Certification issued by the
  National Board for Professional Teaching Standards; and
               (2)  meets the other requirements of Subsection (a).
         (c)  Except as provided by Subsection (d), the commissioner
  may approve a school district or open-enrollment charter school to
  designate a teacher under this subchapter if the district's or
  school's designation system under Section 21.754 provides
  sufficient information to distinguish that among teachers in the
  state in similar teaching assignments, the teacher is:
               (1)  for a recognized teacher, in the top 33 percent in
  teaching performance;
               (2)  for an exemplary teacher, in the top 20 percent in
  teaching performance; or
               (3)  for a master teacher, in the top 5 percent of
  teaching performance.
         (d)  The commissioner may raise the percentages required
  under Subsection (c) to ensure consistency of teacher performance
  standards over multiple school years as statewide performance
  improves, including for the purpose of teacher designation
  renewals.
         Sec. 21.754.  TEACHER DESIGNATION SYSTEMS. (a) A school
  district's or open-enrollment charter school's teacher designation
  system must incorporate:
               (1)  an educator appraisal system that complies with
  Section 21.351 or 21.352, including incorporating student
  performance, which may be measured by student performance over
  multiple school years;
               (2)  student perception surveys for the third grade
  level and higher;
               (3)  educator leadership, including collaborating
  with, mentoring, or supporting other teachers;
               (4)  reliable observation-based appraisal components,
  including the use of independent observers and processes to ensure
  inter-rater reliability of observers; and
               (5)  reliable underlying student assessments used to
  evaluate student performance, including test security protocols
  and defined testing windows.
         (a-1)  A school district's or open-enrollment charter
  school's teacher designation system is not required to incorporate
  the surveys required under Subsection (a)(2) until the 2022-2023
  school year. This subsection expires September 1, 2023.
         (b)  A district's or school's educator appraisal system under
  Subsection (a)(1) may not rely solely on student performance on
  assessment instruments administered under Section 39.023.
         (c)  The commissioner may not authorize a school district or
  open-enrollment charter school to make teacher designations under
  this subchapter until the district's or school's teacher
  designation system has evaluated classroom teachers in compliance
  with Subsection (a).
         (d)  The commissioner may develop an auditing process for
  teacher designation systems to maintain quality and ensure
  compliance. The commissioner may, as necessary:
               (1)  revoke the commissioner's approval of a
  designation system;
               (2)  require modifications to a designation system to
  retain the commissioner's approval;
               (3)  suspend eligibility for funding for a district's
  or school's noncompliance with an audit; or
               (4)  recover funds under Section 48.272 from a district
  or school that has a designation system that is out of compliance or
  for which the commissioner's approval has been revoked.
         (e)  The commissioner may adopt necessary reporting
  processes and timelines for the auditing process under Subsection
  (d).
         Sec. 21.755.  VALIDITY AND EXPIRATION OF TEACHER
  DESIGNATION. (a)  A teacher designation under this subchapter:
               (1)  is valid until the teacher designation expires
  regardless of whether the teacher:
                     (A)  changes teaching assignment;
                     (B)  transfers school campuses; or
                     (C)  is employed by another school district or
  open-enrollment charter school; and
               (2)  expires at the end of the school year during which
  the fifth anniversary of the date on which the teacher receives the
  designation occurs.
         (b)  A teacher has no vested property right in a teacher
  designation assigned to the teacher under this subchapter.
         (c)  A teacher designation issued under this subchapter is
  void on 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.
         (d)  The State Board for Educator Certification may revoke or
  suspend a certificate holder's teacher designation issued under
  this subchapter.
         Sec. 21.756.  MULTIPLE DESIGNATIONS PROHIBITED. A teacher
  may receive only one teacher designation under this subchapter at
  any time. If a teacher qualifies for:
               (1)  both a recognized and exemplary teacher
  designation, the teacher receives the exemplary designation; and
               (2)  either a recognized or exemplary designation and a
  master designation, the teacher receives a master designation.
         Sec. 21.757.  INFORMATION RELATING TO TEACHER AND STUDENT
  PERFORMANCE. (a) The agency, or an entity the agency contracts
  with to implement this subchapter, may access information required
  to verify an eligibility determination under this subchapter,
  including information from the school district or open-enrollment
  charter school at which the teacher is or was employed relating to
  the performance of the teacher's current or previous students. 
         (b)  The agency shall collect information necessary to
  implement this subchapter, which may include student performance
  information for a sample of students across the state and
  information regarding educator appraisals.
         (c)  A school district or open-enrollment charter school
  shall provide any information required under this subchapter.
         (d)  Information otherwise confidential remains
  confidential and is not subject to Chapter 552, Government Code.
         Sec. 21.758.  FEES. (a) The commissioner may adopt fees for
  the authorization of school districts and open-enrollment charter
  schools to make teacher designations under this subchapter.
         (b)  A fee adopted by the agency under this subchapter is not
  subject to Sections 2001.0045 and 2001.0221, Government Code.
         Sec. 21.759.  STUDENT PERFORMANCE STUDY. (a) The
  commissioner shall periodically conduct a study using an external
  organization to determine the impact of the teacher designations
  issued under this subchapter on student performance.
         (b)  The commissioner shall make recommendations as
  necessary to the governor and the legislature to improve the
  quality of and impact on student performance of teacher
  designations issued under this subchapter.
         Sec. 21.760.  ADVISORY COMMITTEE OR PANEL. (a)  The
  commissioner may appoint a committee or panel to advise, make
  recommendations, or make determinations relating to any duties
  assigned to the commissioner under this subchapter.
         (b)  A committee or panel appointed under this section is not
  subject to Chapter 2110, Government Code.
         Sec. 21.761.  RULES; FINALITY OF DECISIONS. (a) The
  commissioner may adopt rules to implement this subchapter.
         (b)  A decision made by the commissioner under this
  subchapter is final and may not be appealed.
         SECTION 2.017.  Section 25.0811(a), Education Code, is
  amended to read as follows:
         (a)  Except as provided by this section, a school district
  may not begin instruction for students for a school year before the
  fourth Monday in August. A school district may:
               (1)  begin instruction for students for a school year
  before the fourth Monday in August if the district operates a
  year-round system under Section 25.084; [or]
               (2)  begin instruction for students for a school year
  on or after the first Monday in August at a campus or at not more
  than 20 percent of the campuses in the district if:
                     (A)  the district has a student enrollment of
  190,000 or more;
                     (B)  the district at the beginning of the school
  year provides, financed with local funds, days of instruction for
  students at the campus or at each of the multiple campuses, in
  addition to the minimum [number of days of] instruction time 
  required under Section 25.081;
                     (C)  the campus or each of the multiple campuses
  is [are] undergoing comprehensive reform, as determined by the
  board of trustees of the district; and
                     (D)  a majority of the students at the campus or at
  each of the multiple campuses are educationally disadvantaged; or
               (3)  begin instruction for students for a school year
  on or after the third Monday in August if the district is designated
  as a district of innovation under Chapter 12A.
         SECTION 2.018.  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 2.019.  Section 28.006, Education Code, is amended
  by amending Subsections (b), (c), (c-1), (d), and (f) and adding
  Subsections (b-1), (b-2), (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).
         (b-2)  The agency may develop reading instruments for
  purposes of this section.
         (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-1)  Each school district shall administer at the
  beginning of the seventh grade a reading instrument adopted by the
  commissioner to each student whose performance on the assessment
  instrument in language arts [reading] administered under Section
  39.023(a) to the student in grade six did not demonstrate reading
  proficiency, as determined by the commissioner.  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 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 2.020.  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
               (2)  a third grade language arts [reading] assessment
  instrument administered under Section 39.023(a).
         SECTION 2.021.  Section 28.0211(a), Education Code, is
  amended to read as follows:
         (a)  Except as provided by Subsection (b) or (e), a student
  may not be promoted to:
               (1)  the sixth grade program to which the student would
  otherwise be assigned if the student does not perform
  satisfactorily on the fifth grade mathematics and language arts
  [reading] assessment instruments under Section 39.023; or
               (2)  the ninth grade program to which the student would
  otherwise be assigned if the student does not perform
  satisfactorily on the eighth grade mathematics and language arts
  [reading] assessment instruments under Section 39.023.
         SECTION 2.022.  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 2.023.  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, if applicable, 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; or
               (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.
         (c)  The agency, in consultation with the Texas Higher
  Education Coordinating Board, shall develop a form to be used by a
  school district or open-enrollment charter school for purposes of
  Subsection (b).
         SECTION 2.024.  Section 29.056(g), Education Code, is
  amended to read as follows:
         (g)  A district may transfer a student of limited English
  proficiency out of a bilingual education or special language
  program for the first time or a subsequent time if the student is
  able to participate equally in a regular all-English instructional
  program as determined by:
               (1)  agency-approved tests administered at the end of
  each school year to determine the extent to which the student has
  developed oral and written language proficiency and specific
  language skills in English;
               (2)  satisfactory performance on the language arts
  [reading] assessment instrument under Section 39.023(a) or an
  English language arts assessment instrument under Section
  39.023(c), as applicable, with the assessment instrument
  administered in English, or, if the student is enrolled in the first
  or second grade, an achievement score at or above the 40th
  percentile in the reading and language arts sections of an English
  standardized test approved by the agency; and
               (3)  agency-approved criterion-referenced tests and
  the results of a subjective teacher evaluation.
         SECTION 2.025.  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 2.026.  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 2.027.  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 2.028.  Section 29.153, Education Code, is amended
  by amending Subsections (b), (c), (d), and (f) and adding
  Subsections (c-1), (d-1), and (d-2) to read as follows:
         (b)  A child is eligible for enrollment in a prekindergarten
  class under this section if the child is at least three years of age
  and:
               (1)  is unable to speak and comprehend the English
  language;
               (2)  is educationally disadvantaged;
               (3)  is a homeless child, as defined by 42 U.S.C.
  Section 11434a, regardless of the residence of the child, of either
  parent of the child, or of the child's guardian or other person
  having lawful control of the child;
               (4)  is the child of an active duty member of the armed
  forces of the United States, including the state military forces or
  a reserve component of the armed forces, who is ordered to active
  duty by proper authority;
               (5)  is the child of a member of the armed forces of the
  United States, including the state military forces or a reserve
  component of the armed forces, who was injured or killed while
  serving on active duty;
               (6)  is or ever has been in the conservatorship of the
  Department of Family and Protective Services following an adversary
  hearing held as provided by Section 262.201, Family Code; [or]
               (7)  is the child of a person eligible for the Star of
  Texas Award as:
                     (A)  a peace officer under Section 3106.002,
  Government Code;
                     (B)  a firefighter under Section 3106.003,
  Government Code; or
                     (C)  an emergency medical first responder under
  Section 3106.004, Government Code; or
               (8)  is the child of an educator employed by a school
  district in this state.
         (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.
         (f)  A child who is eligible for enrollment in a
  prekindergarten class under Subsection (b)(4), [or] (5), or (8)
  remains eligible for enrollment after the child begins a
  prekindergarten class if, as applicable, the child's parent:
               (1)  leaves the armed forces;
               (2)  [, or] is no longer on active duty; or
               (3)  is no longer employed as an educator by a school
  district in this state[, after the child begins a prekindergarten
  class].
         SECTION 2.029.  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 2.030.  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 2.031.  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 2.032.  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 2.033.  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 2.034.  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 2.035.  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 2.036.  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 2.037.  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 2.038.  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 2.039.  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 2.040.  Section 29.556(b), Education Code, is
  amended to read as follows:
         (b)  From funds appropriated or available for that purpose,
  the commissioner by rule shall establish a grant program to assist
  school districts and open-enrollment charter schools in
  implementing the P-TECH program at a campus designated as a P-TECH
  school under Subsection (a). The commissioner may use not more than
  three percent of the funds used [appropriated] for the grant
  program to cover the cost of administering the grant program [and to
  provide technical assistance and support to P-TECH schools].
         SECTION 2.041.  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 2.042.  Section 34.007, Education Code, is amended
  by amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  A board of county school trustees or a school district
  board of trustees may establish and operate an economical public
  school transportation system inside or outside[:
               [(1) in] the county or district[,] as necessary to
  transport students enrolled in a school in the county or in the
  district along the most efficient routes.
         (a-1)  A county or school district that provides
  transportation for a student who transferred to a school in the
  county or to the district under Section 25.035 shall enter
  [applicable; or
               [(2) outside the county or district, as applicable, if
  the county or school district enters] into an interlocal contract
  as provided by Chapter 791, Government Code, with the sending
  county or district regarding transportation for the student.
         SECTION 2.043.  Section 39.022, Education Code, is amended
  to read as follows:
         Sec. 39.022.  ASSESSMENT PROGRAM. The commissioner [State
  Board of Education] by rule shall create and implement a statewide
  assessment program that is knowledge- and skills-based to ensure
  school accountability for student achievement that achieves the
  goals provided under Section 4.002. After adopting rules under this
  section, the commissioner [State Board of Education] shall consider
  the importance of maintaining stability in the statewide assessment
  program when adopting any subsequent modification of the rules.
         SECTION 2.044.  Section 39.023, Education Code, is amended
  by amending Subsections (a), (a-12), (a-13), (b-1), (c), and (c-3)
  and adding Subsections (a-3), (a-14), (a-15), (c-7), (c-8), and (o)
  to read as follows:
         (a)  The agency shall adopt or develop appropriate
  criterion-referenced assessment instruments designed to assess
  essential knowledge and skills in language arts [reading, writing],
  mathematics, social studies, and science. Except as provided by
  Subsection (a-2), all students, other than students assessed under
  Subsection (b) or (l) or exempted under Section 39.027, shall be
  assessed in:
               (1)  mathematics, annually in grades three through
  [seven without the aid of technology and in grade] eight [with the
  aid of technology on any assessment instrument that includes
  algebra];
               (2)  language arts, including reading and writing,
  annually in grades three through eight;
               (3)  [writing, including spelling and grammar, in
  grades four and seven;
               [(4)]  social studies, in grade eight;
               (4) [(5)]  science, in grades five and eight; and
               (5) [(6)]  any other subject and grade required by
  federal law.
         (a-3)  For purposes of Subsection (a)(1), the commissioner
  by rule may designate sections of a mathematics assessment
  instrument for a grade level that:
               (1)  may be completed with the aid of technology; and
               (2)  must be completed without the aid of technology.
         (a-12)  Each [An] assessment instrument adopted or developed
  under Subsection (a) must be designed so that:
               (1)  if administered to students in grades three
  through five, 85 percent of students will be able to complete all
  [the] assessment instruments for that grade [instrument] within an
  aggregate period equal to the number of assessment instruments for
  that grade multiplied by 120 minutes; and
               (2)  if administered to students in grades six through
  eight, 85 percent of students will be able to complete all [the]
  assessment instruments for that grade [instrument] within an
  aggregate period equal to the number of assessment instruments for
  that grade multiplied by 180 minutes.
         (a-13)  The amount of time allowed for administration of an
  assessment instrument adopted or developed under Subsection (a) may
  not exceed eight hours, and the administration may occur in
  multiple parts over more than [on only] one day.
         (a-14)  Subsections (a-12) and (a-13) do not apply to the
  administration of assessment instruments for a grade level if the
  time restriction imposed would result in a determination by the
  commissioner that an assessment instrument is no longer valid and
  reliable.
         (a-15)  Subsections (a-12) and (a-13) do not apply to a
  classroom portfolio method used to assess writing performance.
         (b-1)  The agency, in conjunction with appropriate
  interested persons, shall redevelop assessment instruments adopted
  or developed under Subsection (b) for administration to
  significantly cognitively disabled students in a manner consistent
  with federal law. An assessment instrument under this subsection
  may not require a teacher to prepare tasks or materials for a
  student who will be administered such an assessment instrument. A
  classroom portfolio method used to assess writing performance may
  require a teacher to prepare tasks and materials [Assessment
  instruments adopted or developed under this subsection shall be
  administered not later than the 2014-2015 school year].
         (c)  The agency shall also adopt end-of-course assessment
  instruments for secondary-level courses in Algebra I, biology,
  English I, English II, and United States history. The Algebra I
  end-of-course assessment instrument must be administered with the
  aid of technology, but may include one or more parts that prohibit
  the use of technology. The English I and English II end-of-course
  assessment instruments must each assess essential knowledge and
  skills in both reading and writing [in the same assessment
  instrument] and must provide a single score. A school district
  shall comply with commissioner [State Board of Education] rules
  regarding administration of the assessment instruments listed in
  this subsection. If a student is in a special education program
  under Subchapter A, Chapter 29, the student's admission, review,
  and dismissal committee shall determine whether any allowable
  modification is necessary in administering to the student an
  assessment instrument required under this subsection. The
  commissioner [State Board of Education] shall administer the
  assessment instruments. An end-of-course assessment instrument
  may be administered in multiple parts over more than one day [The
  State Board of Education shall adopt a schedule for the
  administration of end-of-course assessment instruments that
  complies with the requirements of Subsection (c-3)].
         (c-3)  Except as provided by Subsection (c-7), in [In]
  adopting a schedule for the administration of assessment
  instruments under this section, the commissioner [State Board of
  Education] shall ensure that [require:
               [(1)]  assessment instruments administered under
  Subsection (a) or (c) are not [to be] administered on the first
  instructional day of a week [a schedule so that the first assessment
  instrument is administered at least two weeks later than the date on
  which the first assessment instrument was administered under
  Subsection (a) during the 2006-2007 school year; and
               [(2)     the spring administration of end-of-course
  assessment instruments under Subsection (c) to occur in each school
  district not earlier than the first full week in May, except that
  the spring administration of the end-of-course assessment
  instruments in English I and English II must be permitted to occur
  at an earlier date].
         (c-7)  Subsection (c-3) does not apply to a classroom
  portfolio method used to assess writing performance if student
  performance under that method is less than 50 percent of a student's
  overall assessed performance in writing.
         (c-8)  Beginning with the 2022-2023 school year, an
  assessment instrument developed under Subsection (a) or (c) may not
  present more than 75 percent of the questions in a multiple choice
  format.
         (o)  The agency shall adopt or develop optional interim
  assessment instruments for each subject or course for each grade
  level subject to assessment under this section. A school district
  may not be required to administer interim assessment instruments
  adopted or developed under this subsection. An interim assessment
  instrument:
               (1)  must be:
                     (A)  predictive of the assessment instrument for
  the applicable subject or course for that grade level required
  under this section; and 
                     (B)  administered electronically; and
               (2)  may not be used for accountability purposes.
         SECTION 2.045.  Subchapter B, Chapter 39, Education Code, is
  amended by adding Section 39.02302 to read as follows:
         Sec. 39.02302.  ADVISORY COMMITTEES FOR ASSESSMENT
  INSTRUMENTS. (a) The commissioner shall appoint a technical
  advisory committee to advise the commissioner and the agency
  regarding the development of valid and reliable assessment
  instruments for purposes of this chapter. The members of the
  committee must be experts on educational assessments and
  psychometrics.
         (b)  The commissioner shall appoint an educator advisory
  committee to advise the commissioner and the agency regarding the
  development of academically appropriate assessment instruments for
  purposes of this chapter.  The members of the committee must include
  experts in curriculum and instruction.
         (c)  The agency may compensate a member of the technical or
  educator advisory committee or reimburse the member for expenses
  incurred in the performance of duties related to the member's
  service on the committee.
         (d)  The selection of or payment to a member of the technical
  or educator advisory committee is not subject to Chapter 2254,
  Government Code.
         SECTION 2.046.  Section 39.0234, Education Code, is amended
  to read as follows:
         Sec. 39.0234.  ELECTRONIC ADMINISTRATION OF ASSESSMENT
  INSTRUMENTS [BY COMPUTER]. (a) The agency shall ensure that
  assessment instruments required under Section 39.023 are capable of
  being administered electronically [by computer].
         (b)  A school district shall administer each assessment
  instrument required under Section 39.023 electronically unless the
  district receives a waiver from the commissioner. This subsection
  does not apply to the administration of an assessment instrument to
  a student who requires accommodations in the administration of the
  assessment instrument that are not available if administered
  electronically.
         (c)  Except as provided by Section 39.02341, a school
  district must comply with Subsection (b) beginning with the
  2022-2023 school year.  This subsection expires September 1, 2022.  
  [The commissioner may not require a school district or
  open-enrollment charter school to administer an assessment
  instrument by computer.]
         SECTION 2.047.  Subchapter B, Chapter 39, Education Code, is
  amended by adding Sections 39.02341 and 39.0236 to read as follows:
         Sec. 39.02341.  TRANSITION TO ELECTRONIC ADMINISTRATION OF
  ASSESSMENT INSTRUMENTS. (a) The agency shall develop a transition
  plan to administer all assessment instruments required under
  Section 39.023 electronically beginning not later than the
  2022-2023 school year.
         (b)  As part of the transition plan, the agency may provide
  results on an assessment instrument required under Section 39.023
  on an accelerated schedule to school districts that administer the
  assessment instrument electronically. For purposes of this
  subsection, the commissioner by rule may require the results on an
  assessment instrument administered electronically to be reported
  to the district as soon as practicable after administration.
         (c)  As part of the transition plan, the commissioner may
  require a school district to comply with Section 39.0234(b) before
  the 2022-2023 school year.
         (d)  Not later than December 1, 2020, the agency shall submit
  to the governor and the members of the legislature a report on the
  progress of transitioning to electronic administration of all
  assessment instruments required under Section 39.023. The report
  must include:
               (1)  information from school districts assessing the
  needs of those districts in transitioning to electronic
  administration;
               (2)  any recommended changes to state law to assist in
  the transition; and
               (3)  any recommended adjustments to the timeline for
  statewide implementation of electronic administration.
         (e)  Not later than December 1, 2022, the agency shall submit
  to the members of the legislature a report on the anticipated impact
  to school districts of the implementation of electronic
  administration of all assessment instruments required under
  Section 39.023.
         (f)  This section expires September 1, 2023.
         Sec. 39.0236.  INTEGRATED FORMATIVE ASSESSMENT PILOT
  PROGRAM. (a) The agency shall establish a pilot program in which
  participating school districts administer to students integrated
  formative assessment instruments for subjects or courses for a
  grade level subject to assessment under Section 28.006 or 39.023.
         (b)  A school district may elect to participate in the pilot
  program.
         (c)  A school district's participation in the pilot program
  does not affect the district's obligations regarding the
  administration of assessment instruments required under Section
  39.023.
         (d)  Not later than December 1 of each even-numbered year,
  the agency shall submit to the governor and the members of the
  legislature a report on the pilot program that includes:
               (1)  an analysis of whether the administration of
  integrated formative assessment instruments under the pilot
  program provided any improvement in instructional support during
  the preceding two school years; and
               (2)  a determination of the feasibility of replacing
  the assessment instruments required under Section 39.023 with
  integrated formative assessment instruments.
         SECTION 2.048. Section 39.0241(a), Education Code, is
  amended to read as follows:
         (a)  The commissioner shall determine the level of
  performance considered to be satisfactory on the assessment
  instruments, including:
               (1)  a meets grade level performance standard in the
  applicable subject or course that indicates that a student has a
  high likelihood of success in the subject for the subsequent grade
  level or in the subsequent course but may still need short-term,
  targeted intervention; and
               (2)  a masters grade level performance standard in the
  applicable subject or course that indicates that a student is
  expected to succeed in the subject for the subsequent grade level or
  in the subsequent course with little or no academic intervention.
         SECTION 2.049.  Section 39.026, Education Code, is amended
  to read as follows:
         Sec. 39.026.  LOCAL OPTION. In addition to the assessment
  instruments adopted by the agency [and administered by the State
  Board of Education], a school district may adopt and administer
  criterion-referenced or norm-referenced assessment instruments, or
  both, at any grade level. A norm-referenced assessment instrument
  adopted under this section must be economical, nationally
  recognized, and state-approved.
         SECTION 2.050.  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 2.051.  Section 39A.105, Education Code, is amended
  to read as follows:
         Sec. 39A.105.  CONTENTS OF CAMPUS TURNAROUND PLAN. (a) A
  campus turnaround plan must include:
               (1)  details on the method for restructuring,
  reforming, or reconstituting the campus;
               (2)  a detailed description of the academic programs to
  be offered at the campus, including:
                     (A)  instructional methods;
                     (B)  length of school day and school year;
                     (C)  academic credit and promotion criteria; and
                     (D)  programs to serve special student
  populations;
               (3)  if a district charter is to be granted for the
  campus under Section 12.0522:
                     (A)  the term of the charter; and
                     (B)  information on the implementation of the
  charter;
               (4)  written comments from:
                     (A)  the campus-level committee established under
  Section 11.251, if applicable;
                     (B)  parents; and
                     (C)  teachers at the campus; and
               (5)  a detailed description of the budget, staffing,
  and financial resources required to implement the plan, including
  any supplemental resources to be provided by the school district or
  other identified sources.
         (b)  A campus may submit an accelerated campus excellence
  turnaround plan as provided by this subsection. The plan must
  provide:
               (1)  the assignment of a principal to the campus who has
  demonstrated a history of improvement in student academic growth at
  campuses in which the principal has previously worked;
               (2)  that the principal has final authority over
  personnel decisions at the campus;
               (3)  that at least 80 percent of the classroom teachers
  assigned to the campus be teachers who performed in the top quartile
  of teachers in the district that employed the teacher during the
  previous school year, with performance determined by:
                     (A)  for a teacher who taught in the district
  during the previous school year:
                           (i)  the teacher's impact on student growth;
  and
                           (ii)  an evaluation of the teacher based on
  classroom observation; and
                     (B)  for a teacher who did not teach in the
  district during the previous school year, data and other evidence
  indicating that if the teacher had taught in the district during the
  previous school year, the teacher would have performed in the top
  quartile of teachers in the district;
               (4)  a detailed description of the employment and
  compensation structures for the principal and classroom teachers,
  which must include:
                     (A)  significant incentives for a high-performing
  principal or teacher to remain at the campus; and
                     (B)  a three-year commitment by the district to
  continue incentives for the principal and teachers;
               (5)  policies and procedures for the implementation of
  best practices at the campus, including:
                     (A)  data-driven instructional practices;
                     (B)  a system of observation of and feedback for
  classroom teachers;
                     (C)  positive student culture on the campus;
                     (D)  family and community engagement, including
  partnerships with parent and community groups; and
                     (E)  extended learning opportunities for
  students, which may include service or workforce learning
  opportunities; and
               (6)  assistance by a third-party provider that is
  approved by the commissioner in the development and implementation
  of the district's plan.
         SECTION 2.052.  Section 39A.107, Education Code, is amended
  by adding Subsection (a-3) to read as follows:
         (a-3)  Notwithstanding Subsection (a), the commissioner
  shall approve a campus turnaround plan that the commissioner
  determines meets the requirements for an accelerated campus
  excellence turnaround plan under Section 39A.105(b).
         SECTION 2.053.  Subchapter C, Chapter 39A, Education Code,
  is amended by adding Section 39A.116 to read as follows:
         Sec. 39A.116.  COMMISSIONER AUTHORITY. A decision by the
  commissioner under this subchapter is final and may not be
  appealed.
         SECTION 2.054.  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; and
               (12)  a salary increase paid to classroom teachers and
  librarians under Section 21.4023, Education Code.
  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.  Sections 13.054(f) and (i), Education Code,
  are 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.
         (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 21.410(h), Education Code, is
  amended to read as follows:
         (h)  A grant a school district receives under this section is
  in addition to any funding the district receives under Chapter 48
  [42]. The commissioner shall distribute funds under this section
  with the Foundation School Program payment to which the district is
  entitled as soon as practicable after the end of the school year as
  determined by the commissioner. A district to which Chapter 49 [41]
  applies is entitled to the grants paid under this section. The
  commissioner shall determine the timing of the distribution of
  grants to a district that does not receive Foundation School
  Program payments.
         SECTION 3.017.  Section 21.411(h), Education Code, is
  amended to read as follows:
         (h)  A grant a school district receives under this section is
  in addition to any funding the district receives under Chapter 48
  [42]. The commissioner shall distribute funds under this section
  with the Foundation School Program payment to which the district is
  entitled as soon as practicable after the end of the school year as
  determined by the commissioner. A district to which Chapter 49 [41]
  applies is entitled to the grants paid under this section. The
  commissioner shall determine the timing of the distribution of
  grants to a district that does not receive Foundation School
  Program payments.
         SECTION 3.018.  Section 21.412(h), Education Code, is
  amended to read as follows:
         (h)  A grant a school district receives under this section is
  in addition to any funding the district receives under Chapter 48
  [42]. The commissioner shall distribute funds under this section
  with the Foundation School Program payment to which the district is
  entitled as soon as practicable after the end of the school year as
  determined by the commissioner. A district to which Chapter 49 [41]
  applies is entitled to the grants paid under this section. The
  commissioner shall determine the timing of the distribution of
  grants to a district that does not receive Foundation School
  Program payments.
         SECTION 3.019.  Section 21.413(h), Education Code, is
  amended to read as follows:
         (h)  A grant a school district receives under this section is
  in addition to any funding the district receives under Chapter 48
  [42]. The commissioner shall distribute funds under this section
  with the Foundation School Program payment to which the district is
  entitled as soon as practicable after the end of the school year as
  determined by the commissioner. A district to which Chapter 49 [41]
  applies is entitled to the grants paid under this section. The
  commissioner shall determine the timing of the distribution of
  grants to a district that does not receive Foundation School
  Program payments.
         SECTION 3.020.  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 3.021.  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 3.022.  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 3.023.  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 3.024.  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 3.025.  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 3.026.  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 3.027.  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 3.028.  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 3.029.  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 3.030.  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 3.031.  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 3.032.  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 3.033.  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 3.034.  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 3.035.  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 3.036.  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 3.037.  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 3.038.  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 3.039.  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 3.040.  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 3.041.  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 3.042.  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 3.043.  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 3.044.  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 3.045.  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 3.046.  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 3.047.  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 3.048.  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 3.049.  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 3.050.  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 3.051.  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 3.052.  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 3.053.  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 3.054.  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 3.055.  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 3.056.  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 3.057.  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 3.058.  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 3.059.  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 3.060.  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 3.061.  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 3.062.  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 3.063.  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 3.064.  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 3.065.  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 3.066.  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 3.067.  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 3.068.  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 3.069.  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 3.070.  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 3.071.  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 3.072.  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 3.073.  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 3.074.  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 3.075.  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 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 3.076.  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 3.077.  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 3.078.  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 3.079.  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 3.080.  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 3.081.  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. PROPERTY TAX RELIEF
         SECTION 4.001.  Effective September 1, 2021, 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
  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.
         SECTION 4.002.  Effective September 1, 2021, 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 4.003.  Effective September 1, 2020, Section 45.003,
  Education Code, is amended by adding Subsections (d-1), (d-2),
  (d-3), and (d-4) to read as follows:
         (d-1)  Except as provided by Subsection (d-2) and Section
  26.08(a-1), Tax Code, a school district may not adopt a maintenance
  and operations tax rate for the 2020 tax year that exceeds the tax
  rate that results after adjusting the district's 2019 tax rate in
  accordance with Sections 45.0032, 48.202, and 48.255. 
         (d-2)  Subsection (d-1) does not apply to a school district
  if the amount of the district's entitlement per student in average
  daily attendance under Chapter 48 for the 2020-2021 school year
  does not exceed the district's entitlement under former Chapters 41
  and 42 for the 2018-2019 school year by more than $20. 
         (d-3)  The commissioner's rulemaking authority under Section
  48.004 applies to Subsections (d-1) and (d-2), and the commissioner
  may take any action relating to Subsections (d-1) and (d-2)
  necessary to implement and administer the Foundation School
  Program.
         (d-4)  Subsections (d-1), (d-2), (d-3), and this subsection
  expire September 1, 2021.
         SECTION 4.004.  Effective September 1, 2021, Sections
  45.003(d) and (f), Education Code, are 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].
         (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
  state compression percentage, as determined under Section 48.255.
         SECTION 4.005.  (a) Effective September 1, 2021, 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 4.006.  Section 46.071, Education Code, is amended
  by adding Subsections (a-1), (b-1), and (c-1) and amending
  Subsections (b) and (c) to read as follows:
         (a-1)  Beginning with the 2019-2020 school year, a school
  district is entitled to additional state aid under this subchapter
  to the extent that state and local revenue used to service debt
  eligible under this chapter is less than the state and local revenue
  that would have been available to the district under this chapter as
  it existed on September 1, 2018, if the increase in the residence
  homestead exemption under Section 1-b(c), Article VIII, Texas
  Constitution, and the additional limitation on tax increases under
  Section 1-b(d) of that article as proposed by the 86th Legislature,
  Regular Session, 2019, had not occurred.
         (b)  Subject to Subsections (c), (d), and (e) [(c)-(e)],
  additional state aid under Subsection (a) [this section] is equal
  to the amount by which the loss of local interest and sinking
  revenue for debt service attributable to the increase in the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, and the additional limitation on tax increases
  under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th
  Legislature, Regular Session, 2015, is not offset by a gain in state
  aid under this chapter.
         (b-1)  Subject to Subsections (c-1), (d), and (e),
  additional state aid under Subsection (a-1) is equal to the amount
  by which the loss of local interest and sinking revenue for debt
  service attributable to the increase in the residence homestead
  exemption under Section 1-b(c), Article VIII, Texas Constitution,
  and the additional limitation on tax increases under Section 1-b(d)
  of that article as proposed by the 86th Legislature, Regular
  Session, 2019, is not offset by a gain in state aid under this
  chapter.
         (c)  For the purpose of determining state aid under
  Subsections (a) and (b) [this section], local interest and sinking
  revenue for debt service is limited to revenue required to service
  debt eligible under this chapter as of September 1, 2015, including
  refunding of that debt, subject to Section 46.061.  The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         (c-1)  For the purpose of determining state aid under
  Subsections (a-1) and (b-1), local interest and sinking revenue for
  debt service is limited to revenue required to service debt
  eligible under this chapter as of September 1, 2018, including
  refunding of that debt, subject to Section 46.061.  The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         SECTION 4.007.  Effective September 1, 2021, 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 $5,880 [$4,765] or the amount that results
  from the following formula:
  A = $5,880 [$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)  Out of the total statewide allotment under this section,
  the commissioner shall annually set aside $6 million to fund the
  blended learning grant program under Section 29.924. After
  deducting the amount set aside under this subsection from the total
  statewide allotment under this section, the commissioner shall
  reduce each school district's allotment under this section
  proportionately and allocate funds to each district accordingly.  
  [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).]
         SECTION 4.008.  Effective September 1, 2021, Section 42.302,
  Education Code, is transferred to Subchapter E, Chapter 48,
  Education Code, as added by this Act, redesignated as Section
  48.202, Education Code, and amended to read as follows:
         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 [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 [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 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 $5,880, 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 six cents by which the district's maintenance
  and operations tax rate exceeds the district's maximum compressed
  rate [equal to the sum of the product of the state compression
  percentage], as determined under Section 48.2551 [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 $5,880, 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)  For the 2019 tax year, Subsection (f) applies to a
  district's maintenance and operations tax rate after adjusting the
  district's rate in accordance with Section 45.0032.  This
  subsection expires September 1, 2020.
         SECTION 4.009.  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 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)  85 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].
         SECTION 4.010.  Effective September 1, 2021, 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:
               (1)  85 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].
         SECTION 4.011.  Effective September 1, 2021, Subchapter F,
  Chapter 48, Education Code, as added by this Act, is amended by
  adding Sections 48.2551 and 48.2552 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)  "GLF" is the growth limit factor, which is
  assigned a value as follows:
                     (A)  1.025, if "GLP" is assigned the value under
  Subdivision (4)(A);
                     (B)  1.035, if "GLP" is assigned the value under
  Subdivision (4)(B);
                     (C)  1.045, if "GLP" is assigned the value under
  Subdivision (4)(C); and
                     (D)  1.1, if "GLP" is assigned the value under
  Subdivision (4)(D); 
               (4)  "GLP" is the growth limit percentage, which is
  assigned a value by the commissioner as follows based on the annual
  inflation rate for the current tax year, as determined by the
  comptroller under Subsection (d) using the most recently published
  data:
                     (A)  2.5 percent, if the annual inflation rate is
  less than four percent;
                     (B)  3.5 percent, if the annual inflation rate is
  equal to or greater than four percent but less than six percent;
                     (C)  4.5 percent, if the annual inflation rate is
  equal to or greater than six percent but less than eight percent; or
                     (D)  10 percent, if the annual inflation rate is
  equal to or greater than eight percent;
               (5)  "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;
               (6)  "PYDPV" is the district's value of "DPV" for the
  preceding tax year; and
               (7)  "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 "GLP":
  MCR = (GLF((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 2021-2022
  school year, the value of "PYMCR" is $1.00. This subsection expires
  September 1, 2022.
         (d)  The comptroller shall determine the annual inflation
  rate based on the Consumer Price Index for All Urban Consumers
  published by the Bureau of Labor Statistics of the United States
  Department of Labor.
         (e)  The agency shall calculate and make available school
  districts' maximum compressed rates, as determined under this
  section.
         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 85 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 15 percent.
         SECTION 4.012. Effective September 1, 2021, Section 48.257,
  Education Code, as added by this Act, is amended by adding
  Subsection (g) to read as follows:
         (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 4.013.  Section 49.004, Education Code, as
  transferred, redesignated, and amended by this Act, is amended by
  adding Subsections (a-1), (b-1), and (c-1) to read as follows:
         (a-1)  This subsection applies only if the constitutional
  amendment proposed by the 86th Legislature, Regular Session, 2019,
  to increase the amount of the exemption of residence homesteads
  from ad valorem taxation by a school district is approved by the
  voters in an election held for that purpose.  As soon as practicable
  after receiving revised property values that reflect adoption of
  the constitutional amendment, the commissioner shall review the
  local revenue level of districts in the state and revise as
  necessary the notifications provided under Subsection (a) for the
  2019-2020 school year.  This subsection expires September 1, 2020.
         (b-1)  This subsection applies only to a district that has
  not previously held an election under this chapter. Notwithstanding
  Subsection (b), a district that enters into an agreement to
  exercise an option to reduce the district's local revenue level in
  excess of entitlement under Section 49.002(3), (4), or (5) for the
  2019-2020 school year may request and, as provided by Section
  49.0041(a), receive approval from the commissioner to delay the
  date of the election otherwise required to be ordered before
  September 1. This subsection expires September 1, 2020.
         (c-1)  Notwithstanding Subsection (c), a district that
  receives approval from the commissioner to delay an election as
  provided by Subsection (b-1) may adopt a tax rate for the 2019 tax
  year before the commissioner certifies that the district has
  reduced its local revenue level to the level established by Section
  48.257.  This subsection expires September 1, 2020.
         SECTION 4.014.  Subchapter A, Chapter 49, Education Code, as
  added by this Act, is amended by adding Section 49.0041 to read as
  follows:
         Sec. 49.0041.  TRANSITIONAL PROVISIONS:  INCREASED
  HOMESTEAD EXEMPTION AND LIMITATION ON TAX INCREASES.  (a) The
  commissioner shall approve a district's request under Section
  49.004(b-1) to delay the date of an election required under this
  chapter if the commissioner determines that the district would not
  have a local revenue level in excess of entitlement if the
  constitutional amendment proposed by the 86th Legislature, Regular
  Session, 2019, to increase the amount of the exemption of residence
  homesteads from ad valorem taxation by a school district were
  approved by the voters.
         (b)  The commissioner shall set a date by which each district
  that receives approval under this section must order the election.
         (c)  Not later than the 2020-2021 school year, the
  commissioner shall order detachment and annexation of property
  under Subchapter G or consolidation under Subchapter H as necessary
  to reduce the district's local revenue level to the level
  established by Section 48.259 for a district that receives approval
  under this section and subsequently:
               (1)  fails to hold the election; or
               (2)  does not receive voter approval at the election.
         (d)  This section expires September 1, 2021.
         SECTION 4.015.  Subchapter A, Chapter 49, Education Code, as
  added by this Act, is amended by adding Section 49.0121 to read as
  follows:
         Sec. 49.0121.  TRANSITIONAL ELECTION DATES. (a)  This
  section applies only to an election under this chapter that occurs
  during the 2019-2020 school year.
         (b)  Section 49.012 does not apply to a district that
  receives approval of a request under Section 49.0041. The district
  shall hold the election on a Tuesday or Saturday on or before a date
  specified by the commissioner. Section 41.001, Election Code, does
  not apply to the election.
         (c)  This section expires September 1, 2020.
         SECTION 4.016.  Section 49.154, Education Code, as added by
  this Act, is amended by adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), a district that
  receives approval of a request under Section 49.0041 shall pay for
  credit purchased in equal monthly payments as determined by the
  commissioner beginning March 15, 2020, and ending August 15, 2020.
  This subsection expires September 1, 2020.
         SECTION 4.017.  Section 49.308, Education Code, as added by
  this Act, is amended by adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), for the 2019-2020
  school year, the commissioner shall order any detachments and
  annexations of property under this subchapter as soon as
  practicable after the canvass of the votes on the constitutional
  amendment proposed by the 86th Legislature, Regular Session, 2019,
  to increase the amount of the exemption of residence homesteads
  from ad valorem taxation by a school district. This subsection
  expires September 1, 2020.
         SECTION 4.018.  Sections 11.13(b) and (n-1), Tax Code, are
  amended to read as follows:
         (b)  An adult is entitled to exemption from taxation by a
  school district of $40,000 [$25,000] of the appraised value of the
  adult's residence homestead, except that only $5,000 of the
  exemption applies to an entity operating under former Chapter 17,
  18, 25, 26, 27, or 28, Education Code, as those chapters existed on
  May 1, 1995, as permitted by Section 11.301, Education Code.
         (n-1)  The governing body of a school district,
  municipality, or county that adopted an exemption under Subsection
  (n) for the 2018 [2014] tax year may not reduce the amount of or
  repeal the exemption.  This subsection expires December 31, 2023
  [2019].
         SECTION 4.019.  Section 11.26(a), Tax Code, is amended to
  read as follows:
         (a)  The tax officials shall appraise the property to which
  this section applies and calculate taxes as on other property, but
  if the tax so calculated exceeds the limitation imposed by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section.  A school
  district may not increase the total annual amount of ad valorem tax
  it imposes on the residence homestead of an individual 65 years of
  age or older or on the residence homestead of an individual who is
  disabled, as defined by Section 11.13, above the amount of the tax
  it imposed in the first tax year in which the individual qualified
  that residence homestead for the applicable exemption provided by
  Section 11.13(c) for an individual who is 65 years of age or older
  or is disabled.  If the individual qualified that residence
  homestead for the exemption after the beginning of that first year
  and the residence homestead remains eligible for the same exemption
  for the next year, and if the school district taxes imposed on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, a school district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed in
  the year immediately following the first year for which the
  individual qualified that residence homestead for the same
  exemption, except as provided by Subsection (b).  If the first tax
  year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for individuals 65 years of
  age or older or disabled was a tax year before the 2019 [2015] tax
  year, the amount of the limitation provided by this section is the
  amount of tax the school district imposed for the 2018 [2014] tax
  year less an amount equal to the amount determined by multiplying
  $15,000 [$10,000] times the tax rate of the school district for the
  2019 [2015] tax year, plus any 2019 [2015] tax attributable to
  improvements made in 2018 [2014], other than improvements made to
  comply with governmental regulations or repairs.
         SECTION 4.020.  Section 25.23, Tax Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  This subsection applies only to the appraisal records
  for the 2019 tax year. If the appraisal records submitted to the
  appraisal review board include the taxable value of residence
  homesteads or show the amount of the exemption under Section
  11.13(b) applicable to residence homesteads, the chief appraiser
  shall prepare supplemental appraisal records that reflect an
  exemption amount under that subsection of $40,000. This subsection
  expires December 31, 2020.
         SECTION 4.021.  Section 26.04, Tax Code, is amended by
  adding Subsections (a-1) and (c-1) to read as follows:
         (a-1)  On receipt of the appraisal roll for the 2019 tax
  year, the assessor for a school district shall determine the total
  taxable value of property taxable by the school district and the
  taxable value of new property based on a residence homestead
  exemption under Section 11.13(b) of $40,000. This subsection
  expires December 31, 2020.
         (c-1)  An officer or employee designated by the governing
  body of a school district shall calculate the effective tax rate and
  the rollback tax rate of the school district for the 2019 tax year
  based on a residence homestead exemption under Section 11.13(b) of
  $40,000. This subsection expires December 31, 2020.
         SECTION 4.022.  Section 26.08, Tax Code, is amended by
  adding Subsection (q) to read as follows:
         (q)  For purposes of this section, the rollback tax rate of a
  school district for the 2019 tax year shall be calculated based on a
  residence homestead exemption under Section 11.13(b) of $40,000.
  This subsection expires December 31, 2020.
         SECTION 4.023.  Effective January 1, 2021, Section 26.08(n),
  Tax Code, is amended to read as follows:
         (n)  For purposes of this section, the 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 $0.04 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].
         SECTION 4.024.  Section 26.09, Tax Code, is amended by
  adding Subsection (c-1) to read as follows:
         (c-1)  The assessor for a school district shall calculate the
  amount of tax imposed by the school district on a residence
  homestead for the 2019 tax year based on an exemption under Section
  11.13(b) of $25,000 and separately based on an exemption under that
  subsection of $40,000. This subsection expires December 31, 2020.
         SECTION 4.025.  Section 26.15, Tax Code, is amended by
  adding Subsection (h) to read as follows:
         (h)  The assessor for a school district shall correct the tax
  roll for the school district for the 2019 tax year to reflect the
  results of the election to approve the constitutional amendment
  proposed by the 86th Legislature, Regular Session, 2019, to
  increase the amount of the exemption of residence homesteads from
  ad valorem taxation by a school district. This subsection expires
  December 31, 2020.
         SECTION 4.026.  Section 31.01, Tax Code, is amended by
  adding Subsections (d-2), (d-3), (d-4), and (d-5) to read as
  follows:
         (d-2)  This subsection and Subsections (d-3) and (d-4) apply
  only to taxes imposed by a school district on a residence homestead
  for the 2019 tax year. The assessor for the school district shall
  compute the amount of taxes imposed and the other information
  required by this section based on a residence homestead exemption
  under Section 11.13(b) of $40,000. The tax bill or the separate
  statement must indicate that the bill is a provisional tax bill and
  include a statement in substantially the following form:
         "If the amount of the exemption from ad valorem taxation by a
  school district of a residence homestead had not been increased by
  the Texas Legislature, your tax bill would have been $____ (insert
  amount equal to the sum of the amount calculated under Section
  26.09(c-1) based on an exemption under Section 11.13(b) of $25,000
  and the total amount of taxes imposed by the other taxing units
  whose taxes are included in the bill). Because of action by the
  Texas Legislature increasing the amount of the residence homestead
  exemption, your tax bill has been lowered by $____ (insert
  difference between amount calculated under Section 26.09(c-1)
  based on an exemption under Section 11.13(b) of $25,000 and amount
  calculated under Section 26.09(c-1) based on an exemption under
  Section 11.13(b) of $40,000), resulting in a lower tax bill of $____
  (insert amount equal to the sum of the amount calculated under
  Section 26.09(c-1) based on an exemption under Section 11.13(b) of
  $40,000 and the total amount of taxes imposed by the other taxing
  units whose taxes are included in the bill), contingent on the
  approval by the voters at an election to be held November 5, 2019,
  of a constitutional amendment authorizing the residence homestead
  exemption increase. If the constitutional amendment is not
  approved by the voters at the election, a supplemental school
  district tax bill in the amount of $____ (insert difference between
  amount calculated under Section 26.09(c-1) based on an exemption
  under Section 11.13(b) of $25,000 and amount calculated under
  Section 26.09(c-1) based on an exemption under Section 11.13(b) of
  $40,000) will be mailed to you."
         (d-3)  A tax bill prepared by the assessor for a school
  district as provided by Subsection (d-2) and mailed to a person in
  whose name property subject to an exemption under Section 11.13(b)
  is listed on the tax roll and to the person's authorized agent as
  provided by Subsection (a) of this section is considered to be a
  provisional tax bill until the canvass of the votes on the
  constitutional amendment proposed by the 86th Legislature, Regular
  Session, 2019, to increase the amount of the exemption of residence
  homesteads from ad valorem taxation by a school district. If the
  constitutional amendment is approved by the voters, the tax bill is
  considered to be a final tax bill for the taxes imposed on the
  property for the 2019 tax year, and no additional tax bill is
  required to be mailed to the person and to the person's authorized
  agent, unless another provision of this title requires the mailing
  of a corrected tax bill. If the constitutional amendment is not
  approved by the voters:
               (1)  a tax bill prepared by the assessor for a school
  district as provided by Subsection (d-2) and mailed to a person in
  whose name property subject to an exemption under Section 11.13(b)
  is listed on the tax roll and to the person's authorized agent as
  provided by Subsection (a) of this section is considered to be a
  final tax bill but only as to the portion of the taxes imposed on the
  property for the 2019 tax year that are included in the bill;
               (2)  the amount of taxes imposed by each school
  district on a residence homestead for the 2019 tax year is
  calculated based on an exemption under Section 11.13(b) of $25,000;
  and
               (3)  except as provided by Subsections (f), (i-1), and
  (k), the assessor for each school district shall prepare and mail a
  supplemental tax bill, by December 1 or as soon thereafter as
  practicable, to each person in whose name property subject to an
  exemption under Section 11.13(b) is listed on the tax roll and to
  the person's authorized agent in an amount equal to the difference
  between the amount calculated under Section 26.09(c-1) based on an
  exemption under Section 11.13(b) of $25,000 and the amount
  calculated under Section 26.09(c-1) based on an exemption under
  Section 11.13(b) of $40,000.
         (d-4)  Except as otherwise provided by Subsection (d-3), the
  provisions of this section other than Subsection (d-2) apply to a
  supplemental tax bill mailed under Subsection (d-3).
         (d-5)  This subsection and Subsections (d-2), (d-3), and
  (d-4) expire December 31, 2020.
         SECTION 4.027.  Section 31.02, Tax Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Except as provided by Subsection (b) of this section
  and Sections 31.03 and 31.04, taxes for which a supplemental tax
  bill is mailed under Section 31.01(d-3) are due on receipt of the
  tax bill and are delinquent if not paid before March 1 of the year
  following the year in which imposed. This subsection expires
  December 31, 2020.
         SECTION 4.028.  (a)  An assessor or collector for a school
  district is not liable for civil damages or subject to criminal
  prosecution for compliance in good faith with Section 31.01, Tax
  Code, as amended by this article.
         (b)  This section takes effect immediately if this Act
  receives a vote of two-thirds of all the members of each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for this section to take
  immediate effect, this section takes effect on the 91st day after
  the last day of the legislative session.
         (c)  This section expires December 31, 2022.
  ARTICLE 5. REPEALER
         SECTION 5.001.  (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)  Sections 28.006(d-1), (e), and (i);
               (11)  Section 29.097;
               (12)  Section 29.098;
               (13)  Section 29.165;
               (14)  Section 29.166;
               (15)  Sections 29.203(g)(1) and (3);
               (16)  Section 39.233;
               (17)  Section 39.234;
               (18)  the headings to Chapters 41 and 42;
               (19)  the heading to Subchapter A, Chapter 41;
               (20)  Section 41.002;
               (21)  Section 41.0041;
               (22)  the heading to Subchapter D, Chapter 41;
               (23)  Section 41.0931;
               (24)  Section 41.098;
               (25)  the heading to Subchapter E, Chapter 41;
               (26)  the heading to Subchapter A, Chapter 42;
               (27)  the heading to Section 42.006;
               (28)  Section 42.007;
               (29)  the heading to Subchapter B, Chapter 42;
               (30)  Section 42.102;
               (31)  Section 42.103;
               (32)  Section 42.104;
               (33)  the heading to Subchapter C, Chapter 42;
               (34)  Section 42.1541;
               (35)  Section 42.156;
               (36)  Section 42.160;
               (37)  the heading to Subchapter E, Chapter 42;
               (38)  Section 42.2513;
               (39)  Section 42.2517;
               (40)  Section 42.2518;
               (41)  Section 42.262;
               (42)  the headings to Subchapters F and G, Chapter 42;
  and
               (43)  Section 42.352.
         (b)  Section 322.008(b), Government Code, is 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 6. TRANSITION; CONFLICT OF LAW
         SECTION 6.001.  (a) Except as provided by Subsection (b) 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.
         SECTION 6.002.  Except as otherwise provided by this Act,
  Section 26.08, Tax Code, as amended by this Act, applies beginning
  with the 2019 tax year.
         SECTION 6.003.  Except as otherwise provided by that
  article, Article 4 of this Act applies beginning with the 2019 tax
  year.
         SECTION 6.004.  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 6.005.  The commissioner of education shall select
  one campus that received an unacceptable rating for the 2017-2018
  school year, regardless of the number of consecutive years the
  campus has received an unacceptable rating, to submit an
  accelerated campus excellence turnaround plan as provided by
  Section 39A.105(b), Education Code, as added by this Act, for the
  2019-2020 school year. The commissioner may adjust timelines
  established under Chapter 39A, Education Code, for the campus
  selected by the commissioner under this section for purposes of
  developing and implementing the accelerated campus excellence
  turnaround plan. A decision by the commissioner under this section
  is final and may not be appealed.
         SECTION 6.006.  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 6.007.  Not later than December 1, 2022, the Texas
  Education Agency shall submit the initial report required under
  Section 39.0236, Education Code, as added by this Act.
         SECTION 6.008.  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 7. EFFECTIVE DATE
         SECTION 7.001.  (a) Except as provided by Subsection (b) of
  this section or as otherwise provided by this Act, this Act takes
  effect September 1, 2019.
         (b)  Article 2 of this Act takes 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 of this Act takes effect September 1, 2019.
         SECTION 7.002.  Section 1.037 of this Act takes effect only
  if the constitutional amendment proposed by _.J.R. __, 86th
  Legislature, Regular Session, 2019, is not approved by the voters.
         SECTION 7.003.  (a) Except as provided by Subsection (b) of
  this section or as otherwise provided by Article 4 of this Act:
               (1)  Article 4 of this Act takes effect on the date on
  which the constitutional amendment proposed by _.J.R. __, 86th
  Legislature, Regular Session, 2019, takes effect; and
               (2)  if that amendment is not approved by the voters,
  Article 4 of this Act has no effect.
         (b)  Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
  26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
  31.02(a-1), Tax Code, and Sections 49.004(a-1), (b-1), and (c-1),
  49.0041, 49.0121, 49.154(a-1), and 49.308(a-1), 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 those sections to have
  immediate effect, those sections take effect on the 91st day after
  the last day of the legislative session.
 
  * * * * *

LegiScan Search

View Top 50 Searches

Select area of search.
Find an exact bill number.
Search bill text and data. [help]
Reset

LegiScan Trends

View Top 50 National

MI HB5648 Education: graduation requirements; credit for working certain trades;...
NY S10667 Establishes a presumption that certain refunds received by public utility...
CA AB2261 Protective orders.
OH HB1013 Enact the Family Sovereignty Act
CA AB1732 California Environmental Quality Act: exemption: affordable housing projects:...
PA HB2629 In zoning, further providing for enforcement notice.
NJ A5243 Requires DOT to develop universal application for grant programs.
MI SB1136 Public employees and officers: compensation and benefits; public employer...
NJ S4678 Concerns investigative genetic genealogy; appropriates $500,000.
US SB5544 Facial Recognition and Biometric Technology Moratorium Act of 2026
feedback