89R8129 KJE-D     By: González of El Paso H.B. No. 2419       A BILL TO BE ENTITLED   AN ACT   relating to special education and special education funding under   the Foundation School Program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 each program   that qualifies for a funding allotment under Section 48.102,   48.1021, 48.103, 48.104, 48.105, or 48.109;                (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 2.  Subchapter I, Chapter 21, Education Code, is   amended by adding Section 21.4024 to read as follows:          Sec. 21.4024.  SALARY STIPENDS FOR CERTAIN SPECIAL EDUCATION   EMPLOYEES. (a)  A classroom teacher or full-time paraprofessional   assigned to and certified in special education is entitled to   receive an annual salary stipend in the amount of $1,000 plus $150   for each year of experience in special education, up to a maximum of   $2,500.          (b)  A salary stipend a classroom teacher receives under this   section:                (1)  is in addition to:                      (A)  the regular salary to which the teacher is   entitled under this subchapter; and                      (B)  any local supplement; and                (2)  is not considered in determining whether the   district is paying the teacher the minimum monthly salary under   Section 21.402.          (c)  A salary stipend a paraprofessional receives under this   section is in addition to any local supplement or wages the district   would otherwise pay the paraprofessional during the school year.          SECTION 3.  Chapter 22, Education Code, is amended by adding   Subchapter E to read as follows:   SUBCHAPTER E. RETIRED SPECIAL EDUCATION TEACHER GRANT PROGRAM          Sec. 22.151.  RETIRED SPECIAL EDUCATION TEACHER GRANT   PROGRAM. (a)  From money appropriated or otherwise available for   the purpose, the commissioner shall establish a grant program to   reimburse school districts and open-enrollment charter schools for   the cost of required contributions under Section 825.4092,   Government Code, for the employment of a retiree hired to teach   special education or provide services related to special education.          (b)  A grant received under the program may only be used for   the cost of required contributions for the employment of a retiree:                (1)  who retired before September 1, 2024; or                (2)  as provided by the General Appropriations Act.          (c)  If the amount of grant requests under the program   exceeds the amount appropriated or otherwise available for the   purpose, the commissioner shall proportionately reduce the amount   of each grant.          SECTION 4.  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 a general education setting [the regular classroom] or   in a special education setting, as defined by commissioner rule [an   instructional arrangement described by Section 48.102]; 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 5.  Subchapter A, Chapter 29, Education Code, is   amended by adding Section 29.0055 to read as follows:          Sec. 29.0055.  LOCAL INTELLECTUAL AND DEVELOPMENTAL   DISABILITY AUTHORITY INFORMATION.  At the meeting at which a   child's initial individualized education program is developed, the   school district shall provide to the child's parent the contact   information for the local intellectual and developmental   disability authority for the region in which the district is   located for use in discussing services or public benefits that may   provide additional support to the child.          SECTION 6.  Section 29.008, Education Code, is amended by   amending Subsections (a) and (b) and adding Subsection (a-1) to   read as follows:          (a)  The commissioner shall establish a list of approved   public or private facilities, institutions, or agencies inside or   outside of this state that a [A] school district, shared services   arrangement unit, or regional education service center may contract   with [a public or private facility, institution, or agency inside   or outside of this state] for the provision of services to students   with disabilities in a residential placement.  The commissioner may   approve either the whole or a part of a facility or program.          (a-1)  Each contract described by this section [for   residential placement] must be approved by the commissioner.  The   commissioner may approve a [residential placement] contract under   this section only after at least a programmatic evaluation of   personnel qualifications, costs, adequacy of physical plant and   equipment, and curriculum content.  [The commissioner may approve   either the whole or a part of a facility or program.]          (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, 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.  This subsection   expires September 1, 2029.          SECTION 7.  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 the tier of intensity   of service defined in accordance with [weight for a homebound   student under] Section 48.102 and designated by commissioner rule   for use under this section [48.102(a)].          SECTION 8.  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 as defined by commissioner rule   [instructional arrangement under Section 48.102].          SECTION 9.  Subchapter A, Chapter 29, Education Code, is   amended by adding Section 29.028 to read as follows:          Sec. 29.028.  SUPPORTS FOR RECRUITING SPECIAL EDUCATION   STAFF. (a) From money appropriated or otherwise available for the   purpose, the agency shall provide grants to school districts and   open-enrollment charter schools to increase the number of qualified   and appropriately credentialed special education staff, including   special education teachers, special education paraprofessionals,   evaluation personnel, educational interpreters, ancillary   instruction personnel, and related service personnel.          (b)  A school district or open-enrollment charter school   that receives a grant under this section shall require each person   the district or school uses the grant money to assist in becoming   licensed, certified, or otherwise credentialed as described by   Subsection (a) to work at the district or school for a period   established by commissioner rule.          (c)  The commissioner shall adopt rules establishing the   period of required employment described by Subsection (b) and any   other rules necessary to implement this section.          SECTION 10.  Section 29.316(c), Education Code, is amended   to read as follows:          (c)  Not later than August 31 of each year, the agency, the   division, and the center jointly shall prepare and post on the   agency's, the division's, and the center's respective Internet   websites a report on the language acquisition of children eight   years of age or younger who are deaf or hard of hearing. The report   must:                (1)  include:                      (A)  existing data reported in compliance with   federal law regarding children with disabilities; and                      (B)  information relating to the language   acquisition of children who are deaf or hard of hearing and also   have other disabilities;                (2)  state for each child:                      (A)  the educational setting [instructional   arrangement] used with the child, as defined by commissioner rule    [described by Section 48.102], including the time the child spends   on average in a general education setting [mainstream instructional   arrangement];                      (B)  the specific language acquisition services   provided to the child, including:                            (i)  the time spent providing those   services; and                            (ii)  a description of any hearing   amplification used in the delivery of those services, including:                                  (a)  the type of hearing amplification   used;                                  (b)  the period of time in which the   child has had access to the hearing amplification; and                                  (c)  the average amount of time the   child uses the hearing amplification each day;                      (C)  the tools or assessments used to assess the   child's language acquisition and the results obtained;                      (D)  the preferred unique communication mode used   by the child at home; and                      (E)  the child's age, race, and gender, the age at   which the child was identified as being deaf or hard of hearing, and   any other relevant demographic information the commissioner   determines to likely be correlated with or have an impact on the   child's language acquisition;                (3)  compare progress in English literacy made by   children who are deaf or hard of hearing to progress in that subject   made by children of the same age who are not deaf or hard of hearing,   by appropriate age range; and                (4)  be redacted as necessary to comply with state and   federal law regarding the confidentiality of student medical or   educational information.          SECTION 11.  Subchapter A, Chapter 48, Education Code, is   amended by adding Section 48.0055 to read as follows:          Sec. 48.0055.  ENROLLMENT-BASED FUNDING. The commissioner   by rule shall establish the method for determining average   enrollment for purposes of funding provided based on average   enrollment under Chapter 46 and this chapter.          SECTION 12.  Section 48.051(a), Education Code, is amended   to read as follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in career and technology   education programs or in special education programs receiving   special education services in a setting [an instructional   arrangement] other than a general education setting [mainstream or   career and technology education programs], for which an additional   allotment is made under Subchapter C, a school district is entitled   to an allotment equal to the lesser of $6,160 or the amount that   results from the following formula:   A = $6,160 X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.          SECTION 13.  Section 48.102, Education Code, is amended to   read as follows:          Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in   average enrollment [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 basic allotment, or, if applicable,   the sum of the basic allotment and the allotment under Section   48.101 to which the district is entitled, multiplied by the weight   assigned under Subsection (c) to the highest tier of intensity of   service for which the student qualifies [1.15].          (a-1)  Notwithstanding Subsection (a), for the 2026-2027 and   2027-2028 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.     This subsection expires September 1, 2028.  [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 basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled, multiplied by a weight determined according   to instructional arrangement as follows:                [Homebound 5.0                [Hospital class 3.0                [Speech therapy 5.0                [Resource room 3.0                [Self-contained, mild and moderate, regular campus  3.0                [Self-contained, severe, regular campus  3.0                [Off home campus 2.7                [Nonpublic day school 1.7                [Vocational adjustment class 2.3]          (b)  The commissioner by rule shall define seven tiers of   intensity of service for use in determining funding under this   section.  The commissioner must include one tier specifically   addressing students receiving special education services in   residential placement [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.  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 with a   funding weight of 2.8].          (c)  The weights assigned to the seven tiers of intensity of   service defined under Subsection (b) are, from least to most   intense, 0.6, 0.85, 1, 1.45, 1.75, 2, and 2, or other weights   provided by appropriation. [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 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 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 shall adopt rules and procedures   governing contracts for residential and day program placement of   [special education] students receiving special education services.          (e)  [The legislature shall provide by appropriation for the   state's share of the costs of those placements.          [(h)]  At least 55 percent of the funds allocated under this   section must be used in the special education program under   Subchapter A, Chapter 29.          (f) [(i)]  The agency shall ensure [encourage] the placement   of students in special education programs, including students in   residential placement [instructional arrangements], in the least   restrictive environment appropriate for their educational needs.          (g) [(j)]  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 basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled for each [full-time equivalent] student in   average enrollment [daily attendance], multiplied by the amount   designated for the highest tier of intensity of service for which   the student qualifies [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 $20 [$10] million per year.  A school district may use funds   received under this section only in providing an extended year   program.          (h) [(k)]  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.          (i)  Not later than December 1 of each even-numbered year,   the commissioner shall submit to the Legislative Budget Board, for   purposes of the allotment under this section, proposed weights for   the tiers of intensity of service for the next state fiscal   biennium.  The commissioner must include information regarding the   selection of the proposed weights.  In developing the proposed   weights, the commissioner shall consult with school district   superintendents and chief financial officers, the continuing   advisory committee appointed under Section 29.006, and other   relevant stakeholders.          SECTION 14.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.1021, 48.1022, and 48.1023 to read as   follows:          Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.   (a)  For each six-week period in which a student in a special   education program under Subchapter A, Chapter 29, receives eligible   special education services, a school district is entitled to an   allotment in the amount assigned under Subsection (c) to the   service group for which the student is eligible.          (a-1)  Notwithstanding Subsection (a), for the 2026-2027 and   2027-2028 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.     This subsection expires September 1, 2028.          (b)  The commissioner by rule shall establish four service   groups for use in determining funding under this section.  In   establishing the groups, the commissioner must consider:                (1)  the level of services, equipment, and technology   required to meet the needs of students receiving special education   services; and                (2)  services that meet the needs of students receiving   special education services and were previously eligible for   reimbursement through the school health and related services   program.          (c)  The amounts assigned to the four service groups   established under Subsection (b) are, from lowest to highest level   of service, $100, $350, $650, and $1,000, or other amounts provided   by appropriation.          (d)  A school district is entitled to receive an allotment   under this section for each service group for which a student is   eligible.          (e)  A school district is entitled to the full amount of an   allotment under this section for a student receiving eligible   special education services during any part of a six-week period.          (f)  At least 55 percent of the funds allocated under this   section must be used for a special education program under   Subchapter A, Chapter 29.          (g)  Not later than December 1 of each even-numbered year,   the commissioner shall submit to the Legislative Budget Board, for   purposes of the allotment under this section, proposed amounts of   funding for the service groups for the next state fiscal biennium.     The commissioner must include information regarding the selection   of the proposed amounts.  In developing the proposed amounts, the   commissioner shall consult with school district superintendents   and chief financial officers, the continuing advisory committee   appointed under Section 29.006, and other relevant stakeholders.          Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL   EVALUATION. For each student for whom a school district conducts a   full individual and initial evaluation under Section 29.004 or 20   U.S.C. Section 1414(a)(1), the district is entitled to an allotment   of $500 or a greater amount provided by appropriation.          Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING. (a)     For the 2026-2027 and 2027-2028 school years, the commissioner may   adjust weights or amounts provided under Section 48.102 or 48.1021   as necessary to ensure compliance with requirements regarding   maintenance of state financial support under 20 U.S.C. Section   1412(a)(18) and maintenance of local financial support under   applicable federal law.          (b)  For the 2026-2027 and 2027-2028 school years, the   commissioner shall determine the formulas through which school   districts receive funding under Sections 48.102 and 48.1021.  In   determining the formulas, the commissioner may combine the methods   of funding under those sections with the method of funding provided   by Section 48.102, as it existed on January 1, 2025.          (c)  For the 2028-2029 school year, the commissioner may   adjust the weights or amounts set for purposes of Section 48.102 or   48.1021.  Before making an adjustment under this subsection, the   commissioner shall:                (1)  submit the proposed adjustment to the secretary of   state for publication in the Texas Register and must receive notice   of publication; and                (2)  notify in writing and must receive approval from   the Legislative Budget Board.          (d)  Notwithstanding any other provision of this section,   the sum of funding provided under Sections 48.102 and 48.1021 for   the 2026-2027 or for the 2027-2028 school year as adjusted under   this section may not exceed the sum of:                (1)  funding that would have been provided under   Section 48.102, as it existed on January 1, 2025; and                (2)  the amount set by the legislature in the General   Appropriations Act.          (e)  Each school district and open-enrollment charter school   shall report to the agency information necessary to implement this   section.          (f)  The agency shall provide technical assistance to school   districts and open-enrollment charter schools to ensure a   successful transition in funding formulas for special education.          (g)  This section expires September 1, 2030.          SECTION 15.  Sections 48.103(a) and (c), Education Code, are   amended to read as follows:          (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 0.5 [0.1] or a   greater amount provided by appropriation.          (c)  A school district may receive funding for a student   under each provision of this section, [and] Section 48.102, and   Section 48.1021 for which [if] the student qualifies [satisfies the   requirements of both sections].          SECTION 16.  Section 48.110(d), Education Code, is amended   to read as follows:          (d)  For each annual graduate in a cohort described by   Subsection (b) who demonstrates college, career, or military   readiness as described by Subsection (f) in excess of the minimum   number of students determined for the applicable district cohort   under Subsection (c), a school district is entitled to an annual   outcomes bonus of:                (1)  if the annual graduate is educationally   disadvantaged, $5,000;                (2)  if the annual graduate is not educationally   disadvantaged, $3,000; and                (3)  if the annual graduate is enrolled in a special   education program under Subchapter A, Chapter 29, $5,000 [$2,000],   regardless of whether the annual graduate is educationally   disadvantaged.          SECTION 17.  Section 48.151(g), Education Code, is amended   to read as follows:          (g)  A school district or county that provides special   transportation services for eligible [special education] students   receiving special education services is entitled to a state   allocation at a [paid on a previous year's cost-per-mile basis.   The] rate of $2 per mile or a greater amount provided [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 of transportation shall be   determined on an individual basis and shall be approved only in   extreme hardship cases.          SECTION 18.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.157 to read as follows:          Sec. 48.157.  SPECIAL EDUCATION CERTIFICATION ALLOTMENT.   (a) For each classroom teacher, educational diagnostician,   licensed specialist in school psychology, speech pathologist,   physical therapist, occupational therapist, behavior analyst,   dyslexia therapist, or other special education professional   employed by a school district who, during the preceding year,   became certified under Subchapter B, Chapter 21, to teach special   education or as an educational diagnostician or under the   applicable provision of the Occupations Code, as applicable, the   district is entitled to an allotment in the amount of the employee's   certification fee.          (b)  A school district shall use an allotment received under   this section to provide a stipend in the amount of the allotment to   the employee for whom the district received the allotment. A   stipend received under this subsection by an employee subject to   the minimum salary schedule under Section 21.402 is not considered   in determining whether the district is paying the employee the   minimum monthly salary under that section.          SECTION 19.  Subchapter F, Chapter 48, Education Code, is   amended by adding Section 48.2522 to read as follows:          Sec. 48.2522.  ADDITIONAL STATE AID FOR SALARY STIPENDS FOR   CERTAIN SPECIAL EDUCATION EMPLOYEES. 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   total amount of salary stipends to which classroom teachers and   paraprofessionals employed by the district are entitled to receive   under Section 21.4024.          SECTION 20.  Section 48.265(a), Education Code, is amended   to read as follows:          (a)  If [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 may provide [by rule shall establish a grant program   through which excess funds are awarded as] grants using the excess   money 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.          SECTION 21.  Section 48.279(e), Education Code, is amended   to read as follows:          (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 and the special education   service group allotment under Section 48.1021.          SECTION 22.  Section 825.4092(f), Government Code, is   amended to read as follows:          (f)  A reporting employer is ultimately responsible for   payment of the amounts required to be contributed under Subsections   (b) and (c). The employer may not directly or indirectly pass that   cost on to the retiree through payroll deduction, by imposition of a   fee, or by any other means designed to recover the cost. This   subsection does not apply to contributions required for a retiree   employed by a school district or open-enrollment charter school to   teach special education.          SECTION 23.  Section 21.4024, Education Code, as added by   this Act, Subchapter E, Chapter 22, Education Code, as added by this   Act, Chapter 29, Education Code, as amended by this Act, and Section   825.4092(f), Government Code, as amended by this Act, apply   beginning with the 2025-2026 school year.          SECTION 24.  (a) Except as provided by Subsection (b) of   this section, this Act takes effect immediately if it 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, this   Act takes effect September 1, 2025.          (b)  The amendments by this Act to Chapter 48, Education   Code, take effect September 1, 2025.