88R22726 KJE-F     By: King of Hemphill, VanDeaver, Dutton, H.B. No. 100       Howard, Buckley, et al.     Substitute the following for H.B. No. 100:     By:  Buckley C.S.H.B. No. 100       A BILL TO BE ENTITLED   AN ACT   relating to the compensation of public school educators and to the   public school finance system, including enrollment-based funding   for certain allotments under the Foundation School Program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. CHANGES EFFECTIVE FOR 2023-2024 SCHOOL YEAR          SECTION 1.01.  Section 12.106(a-2), Education Code, is   amended to read as follows:          (a-2)  In addition to the funding provided by Subsection (a),   a charter holder is entitled to receive for the open-enrollment   charter school an allotment per student in average daily attendance   in an amount equal to the difference between:                (1)  the product of:                      (A)  the quotient of:                            (i)  the total amount of funding provided to   eligible school districts under Section 48.101(b) or (c); and                            (ii)  the total number of students in   average daily attendance in school districts that receive an   allotment under Section 48.101(b) or (c); and                      (B)  the sum of one and the quotient of:                            (i)  the total number of students in average   daily attendance in school districts that receive an allotment   under Section 48.101(b) or (c); and                            (ii)  the total number of students in   average daily attendance in school districts statewide; and                (2)  $500 [$125].          SECTION 1.02.  Section 13.054, Education Code, is amended by   amending Subsection (f) and adding Subsections (i-1), (i-2), (i-3),   (i-4), and (i-5) 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 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. The commissioner shall provide the funding   under this subsection from funds appropriated for purposes of the   Foundation School Program.  A determination by the commissioner   under this subsection is final and may not be appealed.          (i-1)  Notwithstanding any other law, a school district is   entitled to funding under Subsection (f) for an annexation that   occurs on or after June 1, 2013.          (i-2)  For each school district entitled to funding under   Subsection (f) as provided by Subsection (i-1) that, as of   September 1, 2023, has not received the full amount of funding to   which the district would have been entitled under Subsection (f) if   Subsection (i-1) had been in effect since June 1, 2013, the   commissioner shall:                (1)  determine the difference between:                      (A)  the amount of funding to which the district   would have been entitled under Subsection (f) if Subsection (i-1)   had been in effect since June 1, 2013; and                      (B)  the amount of funding the district has   received under Subsection (f); and                (2)  provide the amount determined under Subdivision   (1) to the district in the form of:                      (A)  a lump sum; or                      (B)  equal annual installments over a period not   to exceed three years.          (i-3)  In addition to the funding provided to a school   district under Subsection (i-2), the commissioner may allocate   money to the district from funds appropriated for purposes of the   Foundation School Program to pay for facilities improvements the   commissioner determines necessary as a result of the annexation.          (i-4)  Each school district that receives funding under   Subsection (f) as provided by Subsection (i-2) or under Subsection   (i-3) for any year shall submit to the commissioner in the form and   manner provided by commissioner rule a report on the district's use   of the funding for that year.          (i-5)  This subsection and Subsections (i-2), (i-3), and   (i-4) expire September 1, 2027.          SECTION 1.03.  Section 19.009(d-2), Education Code, is   amended to read as follows:          (d-2)  Beginning with the 2009-2010 school year, the   district shall increase the [monthly] salary of each classroom   teacher, full-time speech pathologist, full-time librarian,   full-time school counselor certified under Subchapter B, Chapter   21, and full-time school nurse employed by the district by the   greater of:                (1)  $80 per month; or                (2)  the maximum uniform amount per month that, when   combined with any resulting increases in the amount of   contributions made by the district for social security coverage for   the specified employees or by the district on behalf of the   specified employees under Section 825.405, Government Code, may be   provided using an amount equal to the product of $60 multiplied by   the number of students in weighted average daily attendance in the   district during the 2009-2010 school year.          SECTION 1.04.  (a)  This section takes effect only if H.B.   11, 88th Legislature, Regular Session, 2023, or another Act of that   legislature establishing a residency partnership program and   authorizing the issuance of a residency educator certificate   becomes law.          (b)  Section 21.402(a), Education Code, is amended to read as   follows:          (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a   school district must pay each employee who is employed as a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse not less   than the highest annual minimum [minimum monthly] salary described   by the following schedule applicable to [, based on] the employee's   certification, if any, and years [level] of experience:                (1)  for an employee with less than five years of   experience who:                      (A)  holds no certification  $35,000;                      (B)  holds a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $37,000;                      (C)  holds the base certificate required under   Section 21.003(a) for employment in the employee's position other   than a certificate described by Paragraph (B)  $40,000;                      (D)  holds a designation under Section 21.3521     $43,000; or                      (E)  holds a residency educator certificate or has   successfully completed a residency partnership program $43,000;                (2)  for an employee with at least five years of   experience who holds:                      (A)  no certification  $45,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $47,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's position other than a   certificate described by Paragraph (B)  $50,000; or                      (D)  a designation under Section 21.3521     $53,000; or                (3)  for an employee with at least 10 years of   experience who holds:                      (A)  no certification  $55,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $57,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's   position . . .. $60,000; or                      (D)  a designation under Section 21.3521   $63,000 [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) 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)].          SECTION 1.05.  (a)  This section takes effect only if H.B.   11, 88th Legislature, Regular Session, 2023, or another Act of that   legislature establishing a residency partnership program and   authorizing the issuance of a residency educator certificate does   not become law.          (b)  Section 21.402(a), Education Code, is amended to read as   follows:          (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a   school district must pay each employee who is employed as a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse not less   than the highest annual minimum [minimum monthly] salary described   by the following schedule applicable to [, based on] the employee's   certification, if any, and years [level] of experience:                (1)  for an employee with less than five years of   experience who holds:                      (A)  no certification  $35,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $37,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's position other than a   certificate described by Paragraph (B)  $40,000; or                      (D)  a designation under Section 21.3521 . .   $43,000;                (2)  for an employee with at least five years of   experience who holds:                      (A)  no certification  $45,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $47,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's position other than a   certificate described by Paragraph (B)  $50,000; or                      (D)  a designation under Section 21.3521     $53,000; or                (3)  for an employee with at least 10 years of   experience who holds:                      (A)  no certification  $55,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $57,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's   position . . .. $60,000; or                      (D)  a designation under Section 21.3521   $63,000 [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) 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)].          SECTION 1.06.  Section 21.402, Education Code, is amended by   adding Subsections (a-1), (c-2), (i), (j), (k), and (l) and   amending Subsection (g) to read as follows:          (a-1)  For purposes of Subsection (a), a full-time school   nurse is considered to hold the base certificate required under   Section 21.003(a) for employment as a school nurse, regardless of   the other certifications held by the nurse.          (c-2)  A school district is not required to pay an employee   who is employed as a classroom teacher, full-time librarian,   full-time school counselor certified under Subchapter B, or   full-time school nurse the minimum salary required under Subsection   (a) for the school year following a school year during which the   district reviews the employee's performance and finds the   employee's performance unsatisfactory.          (g)  The commissioner may adopt rules to govern the   application of this section, including rules that:                (1)  require the payment of a minimum salary under this   section to a person employed in more than one capacity for which a   minimum salary is provided and whose combined employment in those   capacities constitutes full-time employment; and                (2)  specify the credentials a person must hold to be   considered a [speech pathologist or] school nurse under this   section.          (i)  A school district must use at least 50 percent of the   difference between what the district would have paid under Section   825.405, Government Code, based on the salaries paid under this   section as it existed on January 1, 2023, and what the district pays   under Section 825.405, Government Code, based on the salaries paid   under this section as it exists after September 1, 2023, to increase   the average total compensation per district employee employed as a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse. In   calculating average total compensation per district employee under   this subsection, a district may not include compensation paid to a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse in a   position added by the school district for the current school year   that increases the ratio of those employees to enrolled students   over the ratio of those employees to enrolled students for the   preceding year.          (j)  A school district that increases employee compensation   in the 2023-2024 school year to comply with Subsection (a), as   amended by H.B. 100, Acts of the 88th Legislature, Regular Session,   2023, is providing compensation for services rendered   independently of an existing employment contract applicable to that   year and is not in violation of Section 53, Article III, Texas   Constitution. A school district that does not meet the   requirements of Subsection (a) in the 2023-2024 school year may   satisfy the requirements of this section by providing an employee a   one-time bonus payment during the 2024-2025 school year in an   amount equal to the difference between the compensation earned by   the employee during the 2023-2024 school year and the compensation   the employee should have received during that school year if the   district had complied with Subsection (a).          (k)  Notwithstanding the minimum salary schedule under   Subsection (a), a school district that increases the amount a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse is   compensated during the 2023-2024 school year by at least $8,000   more than the amount the employee was compensated during the   2022-2023 school year complies with the requirements of this   section for the 2023-2024 school year.          (l)  Subsections (i), (j), and (k) and this subsection expire   September 1, 2025.          SECTION 1.07.  The heading to Section 21.403, Education   Code, is amended to read as follows:          Sec. 21.403.  DETERMINATION OF YEARS OF EXPERIENCE   [PLACEMENT ON MINIMUM SALARY SCHEDULE].          SECTION 1.08.  Sections 21.403(b) and (c), Education Code,   are amended to read as follows:          (b)  For each year of work experience required for   certification in a career or technological field, up to a maximum of   two years, a certified career or technology education teacher is   entitled to [salary step] credit as if the work experience were   teaching experience.          (c)  The commissioner shall adopt rules for determining the   experience for which a teacher, librarian, school counselor, or   nurse is to be given credit for purposes of the minimum salary   schedule under Section 21.402(a) [in placing the teacher,   librarian, school counselor, or nurse on the minimum salary   schedule].  A district shall credit the teacher, librarian, school   counselor, or nurse for each year of experience without regard to   whether the years are consecutive.          SECTION 1.09.  Section 21.4552(d), Education Code, is   amended to read as follows:          (d)  From funds appropriated for that purpose, a teacher who   attends a literacy achievement academy is entitled to receive a   stipend in the amount determined by the commissioner.  A stipend   received under this subsection is not considered in determining   whether a school district is paying the teacher the minimum   [monthly] salary under Section 21.402.          SECTION 1.10.  Section 21.4553(d), Education Code, is   amended to read as follows:          (d)  From funds appropriated for that purpose, a teacher who   attends a mathematics achievement academy is entitled to receive a   stipend in the amount determined by the commissioner.  A stipend   received under this subsection is not considered in determining   whether a district is paying the teacher the minimum [monthly]   salary under Section 21.402.          SECTION 1.11.  Section 21.4555(f), Education Code, is   amended to read as follows:          (f)  From funds available for that purpose, a teacher who   attends a civics training program may receive a stipend in an amount   determined by the commissioner.  A stipend received under this   section is not included in determining whether a district is paying   the teacher the minimum [monthly] salary under Section 21.402.          SECTION 1.12.  Subchapter Z, Chapter 29, Education Code, is   amended by adding Section 29.912 to read as follows:          Sec. 29.912.  RURAL PATHWAY EXCELLENCE PARTNERSHIP (R-PEP)   PROGRAM. (a) In this section, "program" means the Rural Pathway   Excellence Partnership (R-PEP) program established under this   section.          (b)  The commissioner shall establish and administer the   Rural Pathway Excellence Partnership (R-PEP) program to   incentivize and support multidistrict, cross-sector, rural college   and career pathway partnerships that expand opportunities for   underserved students to succeed in school and life while promoting   economic development in rural areas.          (c)  The program must enable an eligible school district that   lacks an economy of scale, as determined by commissioner rule, to   partner with at least one other school district to offer a broader   array of robust college and career pathways. Each partnership must:                (1)  offer college and career pathways that align with   regional labor market projections for high-wage, high-demand   careers; and                (2)  be managed by a coordinating entity that:                      (A)  has or will have at the time students are   served under the partnership the capacity to effectively coordinate   the partnership;                      (B)  has entered into a performance agreement   approved by the board of trustees of each partnering school   district that confers to the coordinating entity the same authority   with respect to the partnership as provided to an entity that   contracts to operate a district campus under Section 11.174;                      (C)  is eligible to be awarded a charter under   Section 12.101(a);                      (D)  has been granted a charter by each partnering   school district under Subchapter C, Chapter 12; and                      (E)  has on the entity's governing board as either   voting or ex officio members representatives of each partnering   school district and members of regional higher education and   workforce organizations.          (d)  The performance agreement described by Subsection   (c)(2)(B) must:                (1)  include ambitious and measurable performance   goals and progress measures tied to current college, career, and   military readiness outcomes and longitudinal postsecondary   completion and employment-related outcomes;                (2)  allocate responsibilities for accessing and   managing progress and outcome information and annually publishing   that information on the Internet website of each partnering   district and the coordinating entity;                (3)  authorize the coordinating entity to optimize the   value of each college and career pathway offered through the   partnership by determining scheduling, adding or removing a   pathway, hiring of pathway-specific personnel, setting   pathway-specific budgets, and other matters critical to the   efficacy of the pathways; and                (4)  provide that any eligible student residing in a   partnering school district may participate in a college or career   pathway offered through the partnership.          (e)  An employee of a coordinating entity that manages a   partnership under the program is eligible for membership in and   benefits from the Teacher Retirement System of Texas if the   employee would be eligible for membership and benefits by holding   the same position at a partnering school district.          (f)  A student enrolled in a college or career pathway   offered through a partnership under the program is not considered   for accountability purposes under Chapter 39 to have dropped out of   high school or failed to complete the curriculum requirements for   high school graduation until the sixth anniversary of the student's   first day in high school.          (g)  A school district proposing to enter into a performance   agreement under this section shall notify the commissioner of the   district's intent to enter into the agreement. The commissioner   shall establish procedures for a district to notify the   commissioner, including the period within which notification is   required before the school year in which the proposed agreement   would take effect, and to provide any additional information   required by the commissioner. The commissioner shall notify the   district whether the proposed agreement is approved or denied not   later than the 60th day after the date the commissioner receives   notification of the proposed agreement and all other information   required by the commissioner. If the commissioner fails to notify   the district that the proposed agreement has been approved or   denied within the period prescribed by this subsection, the   proposed agreement is considered approved.          (h)  From money appropriated for that purpose, the   commissioner shall establish a grant program to assist in the   planning and implementation of a partnership under the program.   The commissioner may award a grant only to a coordinating entity   that has entered into a performance agreement approved under   Subsection (g). The commissioner may use not more than 15 percent   of the money appropriated for the grant program to cover the cost of   administering the grant program and to provide technical assistance   and support to partnerships under the program.          (i)  The commissioner shall adopt rules as necessary to   implement this section, including rules establishing:                (1)  requirements for a coordinating entity and a   performance agreement with the entity;                (2)  the period for which a partnership under the   program may operate after commissioner approval before renewal of   commissioner approval is required; and                (3)  standards for renewal of commissioner approval for   a partnership under the program.          (j)  This section does not prohibit an agreement between a   school district and another entity for the provision of services at   a district campus.          (k)  The commissioner may accept gifts, grants, and   donations from any source, including private and nonprofit   organizations, for the program. A private or nonprofit   organization that contributes to the program may receive an award   under Section 7.113.          SECTION 1.13.  Section 30.003, Education Code, is amended by   amending Subsections (b) and (f-1) and adding Subsection (b-1) to   read as follows:          (b)  If the student is admitted to the school for a full-time   program for the equivalent of two long semesters, the district's   share of the cost is an amount equal to the dollar amount of   maintenance and debt service taxes imposed by the district for that   year, subject to Subsection (b-1), divided by the district's   average daily attendance for the preceding year.          (b-1)  For purposes of Subsection (b), the commissioner   shall reduce the dollar amount of maintenance and debt service   taxes imposed by the district for a year by the amount, if any, by   which the district is required to reduce the district's local   revenue level under Section 48.257 for that year.          (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)  Subsection (b-1) of this section;                (3)  Section 45.0032;                (4) [(3)]  Section 48.255; and                (5) [(4)]  Section 48.2551.          SECTION 1.14.  Section 30.102(b), Education Code, is amended   to read as follows:          (b)  A classroom teacher, full-time librarian, full-time   school counselor certified under Subchapter B, Chapter 21, or   full-time school nurse employed by the department is entitled to   receive as a minimum salary the [monthly] salary specified by   Section 21.402. A classroom teacher, full-time librarian,   full-time school counselor, or full-time school nurse may be paid,   from funds appropriated to the department, a salary in excess of the   minimum specified by that section, but the salary may not exceed the   rate of pay for a similar position in the public schools of an   adjacent school district.          SECTION 1.15.  Section 33.009(h), Education Code, is amended   to read as follows:          (h)  From funds appropriated for that purpose, a school   counselor who attends the academy under this section is entitled to   receive a stipend in the amount determined by the coordinating   board. If funds are available after all eligible school counselors   have received a stipend under this subsection, the coordinating   board shall pay a stipend in the amount determined by the   coordinating board to a teacher who attends the academy under this   section. A stipend received under this subsection is not   considered in determining whether a district is paying the school   counselor or teacher the minimum [monthly] salary under Section   21.402.          SECTION 1.16.  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 1.17.  Section 48.051, Education Code, is amended by   amending Subsections (a) and (c) and adding Subsections (c-3) and   (c-4) to read as follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in special education   programs in an instructional arrangement other than mainstream or   career and technology education programs, for which an additional   allotment is made under Subchapter C, a district is entitled to an   allotment equal to [the lesser of $6,160 or] the amount that results   from the following formula:   A = B [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "B" is the base amount, which equals the greater of:                (1)  $6,250;                (2)  an amount equal to the district's base amount under   this section for the preceding school year; or                (3)  the amount appropriated under Subsection (b);          "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.          (c)  During any school year for which the value of "A"   determined [maximum amount of the basic allotment provided] under   Subsection (a) or, if applicable, the sum of the value of "A" and   the allotment under Section 48.101 to which the district is   entitled, [or (b)] is greater than the value of "A" or, if   applicable, the sum of the value of "A" and the allotment under   Section 48.101 to which the district is entitled, [maximum amount   provided] for the preceding school year, a school district must use   at least 50 [30] percent of the amount[, if the amount is greater   than zero,] that equals the product of the average daily attendance   of the district multiplied by the amount of the difference between   the district's funding under this chapter per student in average   daily attendance for the current school year and the preceding   school year to increase the average total compensation per employee   employed by the district as [provide compensation increases to   full-time district employees other than administrators as follows:                [(1)  75 percent must be used to increase the   compensation paid to] classroom teachers, full-time librarians,   full-time school counselors certified under Subchapter B, Chapter   21, and full-time school nurses [, prioritizing differentiated   compensation for classroom teachers with more than five years of   experience; and                [(2)  25 percent may be used as determined by the   district to increase compensation paid to full-time district   employees]. In calculating average total compensation per employee   under this subsection, a school district may not consider   compensation paid to a district employee employed in a position   described by this subsection added by the school district for the   current school year that increases the ratio of those employees to   the students enrolled in the district compared to the preceding   school year.          (c-3)  If a school district increases employee compensation   in a school year to comply with Subsection (c), as amended by   H.B. 100, Acts of the 88th Legislature, Regular Session, 2023, the   district is providing compensation for services rendered   independently of an existing employment contract applicable to that   year and is not a violation of Section 53, Article III, Texas   Constitution.          (c-4)  A school district that does not meet the requirements   of Subsection (c) during a school year may satisfy the requirements   of this section by providing an employee a one-time bonus payment   during the following school year in an amount equal to the   difference between the compensation earned by the employee and the   compensation the employee should have received during the school   year if the district had complied with Subsection (c).          SECTION 1.18.  Subchapter C, Chapter 48, Education Code, is   amended by adding Section 48.1022 to read as follows:          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.          SECTION 1.19.  Section 48.111(a), Education Code, is amended   to read as follows:          (a)  A [Except as provided by Subsection (c), a] school   district is entitled to an annual allotment equal to the basic   allotment multiplied by the applicable weight under Subsection   (a-1) for each enrolled student equal to the difference, if the   difference is greater than zero, that results from subtracting 250   from the difference between the number of students enrolled in the   district during the school year immediately preceding the current   school year and the number of students enrolled in the district   during the school year six years preceding the current school year.          SECTION 1.20.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.116 and 48.118 to read as follows:          Sec. 48.116.  FINE ARTS ALLOTMENT. (a)  For each student in   average daily attendance enrolled in a fine arts education course   approved by the agency under Subsection (b) in grades 6 through 12,   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 .008.          (b)  The agency shall approve fine arts education courses   that qualify for the allotment provided under this section.  The   approved courses must include fine arts education courses that:                (1)  are authorized by the State Board of Education,   including music, art, theater, and dance;                (2)  provide students with the knowledge and skills   necessary for success in the fine arts; and                (3)  require a student in full-time attendance to   receive not less than 225 minutes of fine arts instruction per week.          (c)  The agency shall annually publish a list of fine arts   courses approved under Subsection (b).          Sec. 48.118.  RURAL PATHWAY EXCELLENCE PARTNERSHIP (R-PEP)   ALLOTMENT AND OUTCOME BONUS. (a) For each full-time equivalent   student in average daily attendance in grades 9 through 12 in a   college or career pathway offered through a partnership under the   Rural Pathway Excellence Partnership (R-PEP) program under Section   29.912, a school district is entitled to an 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:                (1)  1.15, if the student is educationally   disadvantaged; or                (2)  1.11, if the student is not educationally   disadvantaged.          (b)  Each year, the commissioner shall determine for each   school district the minimum number of annual graduates of a college   or career pathway described by Subsection (a) in each cohort   described by Section 48.110(b) who would have to demonstrate   college, career, or military readiness, as determined by   commissioner rule, in order for the district to qualify for an   outcomes bonus under Subsection (c).           (c)  In addition to the allotment under Subsection (a), for   each annual graduate in a cohort described by Subsection (b) who   demonstrates college, career, or military readiness, as determined   by commissioner rule, 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, $2,000;                (2)  if the annual graduate is not educationally   disadvantaged, $1,000; 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)  A school district may receive funding for a student   under this section and any other section for which the student   qualifies.          SECTION 1.21.  Sections 48.151(c) and (g), Education Code,   are amended to read as follows:          (c)  Each district or county operating a regular   transportation system is entitled to an allotment based on a rate of   $1.54 per mile per regular eligible student or a greater rate set by   the legislature in the General Appropriations Act.          (g)  A school district or county that provides special   transportation services for eligible special education students is   entitled to a state allocation at a [paid on a previous year's   cost-per-mile basis. The] rate of $1.28 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 1.22.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.160 to read as follows:          Sec. 48.160.  ALLOTMENT FOR ADVANCED MATHEMATICS PATHWAYS   AND CERTAIN PROGRAMS OF STUDY. (a)  A school district is eligible   to receive an allotment under this section if the district offers   through in-person instruction, remote instruction, or a hybrid of   in-person and remote instruction:                (1)  an advanced mathematics pathway that begins with   Algebra I in grade eight and continues through progressively more   advanced mathematics courses in each grade from grade 9 through 12;                (2)  a program of study in:                      (A)  computer programming and software   development; or                      (B)  cybersecurity; and                (3)  a program of study in a specialized skilled trade,   such as:                      (A)  plumbing and pipefitting;                      (B)  electrical;                      (C)  welding;                      (D)  diesel and heavy equipment;                      (E)  aviation maintenance; or                      (F)  applied agricultural engineering.          (b)  Notwithstanding Subsection (a), a school district is   eligible for the allotment under this section for students enrolled   in a high school in the district that does not offer a program of   study described by Subsection (a)(2) or (3) if:                (1)  high school students who reside in the attendance   zone of the high school may participate in the program of study by   enrolling in another high school:                      (A)  that:                            (i)  is in the same district or a neighboring   school district;                            (ii)  was assigned the same or a better   campus overall performance rating under Section 39.054 as the high   school in whose attendance zone the students reside; and                            (iii)  offers the program of study; and                      (B)  to and from which transportation is provided   for those students; or                (2)  students enrolled in the high school:                      (A)  are offered instruction for the program of   study at another location, such as another high school in the same   district or a neighboring school district; and                      (B)  receive transportation to and from the   location described by Paragraph (A).          (c)  An eligible school district is entitled to an annual   allotment of $10 for each student enrolled at a high school in the   district that offers a pathway or program of study from each   subdivision described by Subsection (a) if:                (1)  each student enrolled at the high school takes a   progressively more advanced mathematics course each year of   enrollment; and                (2)  for each of those pathways or programs of study, at   least one student enrolled at the high school completes a course in   the pathway or program of study.          (d)  A school district that receives an allotment under   Subsection (c) and Section 48.101 is entitled to receive an   additional allotment in an amount equal to the product of 0.1 and   the allotment to which the district is entitled under Section   48.101 for each student for which the district receives an   allotment under Subsection (c).  An open-enrollment charter school   is not eligible for an allotment under this subsection.          (e)  The commissioner by rule may establish requirements to   ensure students enrolled in a high school to which Subsection (b)   applies have meaningful access to the programs of study described   by Subsections (a)(2) and (3).          (f)  The agency may reduce the amount of a school district's   allotment under this section if the agency determines that the   district has not complied with any provision of this section.          SECTION 1.23.  Section 48.202(a-1), Education Code, is   amended to read as follows:          (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 available to a school   district at the 96th percentile of wealth per weighted student or   the amount that results from multiplying the maximum amount of the   basic allotment provided under Section 48.051 for the applicable   school year [6,160, or the greater amount provided under Section   48.051(b), if applicable,] by 0.016, for the first eight cents by   which the district's maintenance and operations tax rate exceeds   the district's tier one tax rate; and                (2)  subject to Subsection (f), the amount that results   from multiplying the maximum amount of the basic allotment provided   under Section 48.051 for the applicable school year [$6,160, or the   greater amount provided under Section 48.051(b), if applicable,] by   0.008, for the district's maintenance and operations tax effort   that exceeds the amount of tax effort described by Subdivision (1).          SECTION 1.24.  Section 48.257(c), Education Code, is amended   to read as follows:          (c)  For purposes of Subsection (a), state aid to which a   district is entitled under Section 13.054 or this chapter that is   not described by Section 48.266(a)(3) may offset the amount by   which a district must reduce the district's revenue level under   this section. 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.          SECTION 1.25.  Sections 48.277(d) and (e), Education Code,   are amended to read as follows:          (d)  A school district or open-enrollment charter school is   not entitled to an allotment under Subsection (a) beginning with   the 2029-2030 [2024-2025] school year.          (e)  This section expires September 1, 2030 [2025].          SECTION 1.26.  Subchapter F, Chapter 48, Education Code, is   amended by adding Section 48.280 to read as follows:          Sec. 48.280.  SALARY TRANSITION ALLOTMENT. (a) In the   2023-2024, 2024-2025, and 2025-2026 school years, a school district   is entitled to receive an annual salary transition allotment equal   to the difference, if that amount is greater than zero, between:                (1)  the amount calculated under Subsection (b); and                 (2)  the amount calculated under Subsection (c).          (b)  The agency shall calculate a school district's value for   Subsection (a)(1) by determining the difference in the amount the   district must pay in compensation to employees on the minimum   salary schedule under Section 21.402, as amended by H.B. 100, Acts   of the 88th Legislature, Regular Session, 2023, from the amount   paid in compensation to employees on the minimum salary schedule   under that section as effective in the 2022-2023 school year, less   the difference between:                (1)  the amount of employer contributions under Section   825.4035, Government Code, and Section 1575.203, Insurance Code,   the district paid in the 2022-2023 school year for employees on the   minimum salary schedule under Section 21.402; and                (2)  the amount the district would have paid in   employer contributions under Section 825.4035, Government Code,   and Section 1575.203, Insurance Code, in the 2022-2023 school year   for employees on the minimum salary schedule if the changes made to   Section 21.402 by H.B. 100, Acts of the 88th Legislature, Regular   Session, 2023, had been in effect.          (c)  The agency shall calculate a school district's value for   Subsection (a)(2) by determining the total maintenance and   operations revenue for the current school year less the total   maintenance and operations revenue that would have been available   to the district using the basic allotment formula provided by   Section 48.051 and the small and mid-sized allotment formulas   provided by Section 48.101 as those sections existed on January 1,   2023.           (d)  Before making a final determination of the amount of an   allotment to which a school district is entitled under this   section, the agency shall ensure each school district has an   opportunity to review and submit revised information to the agency   for purposes of calculating the values under Subsection (a).          (e)  A school district is entitled to an allotment in an   amount equal to:                (1)  for the 2026-2027 school year, two-thirds of the   value determined under Subsection (a); and                (2)  for the 2027-2028 school year, one-third of the   value determined under Subsection (a).          (f)  A school district is not entitled to an allotment under   this section in the 2028-2029 school year or a later school year.          (g)  This section expires September 1, 2029.          SECTION 1.27.  Section 26.08(n), Tax Code, is amended to   read as follows:          (n)  For purposes of this section, the voter-approval tax   rate of a school district is the sum of the following:                (1)  the rate per $100 of taxable value that is equal to   the district's maximum compressed tax rate, as determined under   Section 48.2551, Education Code, for the current year;                (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)  the rate of $0.06 [$0.05] per $100 of taxable   value; and                (3)  the district's current debt rate.          SECTION 1.28.  The following provisions of the Education   Code are repealed:                (1)  Sections 21.402(b), (c), (c-1), (f), and (h);                (2)  Sections 21.403(a) and (d); and                (3)  Sections 48.111(c), (c-1), and (c-2).          SECTION 1.29.  If both this Act and H.B. 11, 88th   Legislature, Regular Session, 2023, are enacted, this Act prevails   over H.B. 11, to the extent of any conflict, without regard to the   date of enactment of this Act or H.B. 11.          SECTION 1.30.  (a) Except as provided by Subsection (b) of   this section or as otherwise provided by this article, this article   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, the entirety of this article   takes effect September 1, 2023.          (b)  Sections 12.106(a-2), 13.054, 30.003, 48.051, 48.111,   48.151(c) and (g), 48.202(a-1), 48.257(c), and 48.277(d) and (e),   Education Code, and Section 26.08(n), Tax Code, as amended by this   article, and Sections 48.0055, 48.1022, 48.116, 48.118, 48.160, and   48.280, Education Code, as added by this article, take effect   September 1, 2023.   ARTICLE 2. CHANGES EFFECTIVE FOR 2024-2025 SCHOOL YEAR          SECTION 2.01.  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, 48.104, 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 2.02.  Section 29.002, Education Code, is amended to   read as follows:          Sec. 29.002.  DEFINITION. In this subchapter, "special   services" means:                (1)  special education, as defined by 20 U.S.C. Section   1401(29) [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]; and                (2)  related services, as defined by 20 U.S.C. Section   1401(26) [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 2.03.  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 2.04.  Section 29.018, Education Code, is amended by   adding Subsection (g) to read as follows:          (g)  This section expires September 1, 2026.          SECTION 2.05.  Sections 29.022(a), (a-1), (b), (c), (c-1),   (d), (f), (h), (k), (l), (s), and (t), Education Code, are amended   to read as follows:          (a)  In order to promote student safety, on receipt of a   written request authorized under Subsection (a-1), a school   district or open-enrollment charter school shall provide   equipment, including a video camera, to the school or schools in the   district or the charter school campus or campuses specified in the   request.  A school or campus that receives equipment as provided by   this subsection shall place, operate, and maintain one or more   video cameras in special education [self-contained] classrooms and   other special education settings [in which a majority of the   students in regular attendance are provided special education and   related services and are assigned to one or more self-contained   classrooms or other special education settings for at least 50   percent of the instructional day], provided that:                (1)  a school or campus that receives equipment as a   result of the request by a parent or staff member is required to   place equipment only in classrooms or settings in which the   parent's child is in regular attendance or to which the staff member   is assigned, as applicable; and                (2)  a school or campus that receives equipment as a   result of the request by a board of trustees, governing body,   principal, or assistant principal is required to place equipment   only in classrooms or settings identified by the requestor, if the   requestor limits the request to specific classrooms or settings   subject to this subsection.          (a-1)  For purposes of Subsection (a):                (1)  a parent of a child who receives special education   services in one or more special education [self-contained]   classrooms or other special education settings may request in   writing that equipment be provided to the school or campus at which   the child receives those services;                (2)  a board of trustees or governing body may request   in writing that equipment be provided to one or more specified   schools or campuses at which one or more children receive special   education services in special education [self-contained]   classrooms or other special education settings;                (3)  the principal or assistant principal of a school   or campus at which one or more children receive special education   services in special education [self-contained] classrooms or other   special education settings may request in writing that equipment be   provided to the principal's or assistant principal's school or   campus; and                (4)  a staff member assigned to work with one or more   children receiving special education services in special education   [self-contained] classrooms or other special education settings   may request in writing that equipment be provided to the school or   campus at which the staff member works.          (b)  A school or campus that places a video camera in a   special education classroom or other special education setting in   accordance with Subsection (a) shall operate and maintain the video   camera in the classroom or setting, as long as the classroom or   setting continues to satisfy the requirements under Subsection (a),   for the remainder of the school year in which the school or campus   received the request, unless the requestor withdraws the request in   writing.  If for any reason a school or campus will discontinue   operation of a video camera during a school year, not later than the   fifth school day before the date the operation of the video camera   will be discontinued, the school or campus must notify the parents   of each student in regular attendance in the classroom or setting   that operation of the video camera will not continue unless   requested by a person eligible to make a request under Subsection   (a-1).  Not later than the 10th school day before the end of each   school year, the school or campus must notify the parents of each   student in regular attendance in the classroom or setting that   operation of the video camera will not continue during the   following school year unless a person eligible to make a request for   the next school year under Subsection (a-1) submits a new request.          (c)  Except as provided by Subsection (c-1), video cameras   placed under this section must be capable of:                (1)  covering all areas of the special education   classroom or other special education setting, including a room   attached to the classroom or setting used for time-out; and                (2)  recording audio from all areas of the special   education classroom or other special education setting, including a   room attached to the classroom or setting used for time-out.          (c-1)  The inside of a bathroom or any area in the special   education classroom or other special education setting in which a   student's clothes are changed may not be visually monitored, except   for incidental coverage of a minor portion of a bathroom or changing   area because of the layout of the classroom or setting.          (d)  Before a school or campus activates a video camera in a   special education classroom or other special education setting   under this section, the school or campus shall provide written   notice of the placement to all school or campus staff and to the   parents of each student attending class or engaging in school   activities in the classroom or setting.          (f)  A school district or open-enrollment charter school may   solicit and accept gifts, grants, and donations from any person for   use in placing video cameras in special education classrooms or   other special education settings under this section.          (h)  A school district or open-enrollment charter school may   not:                (1)  allow regular or continual monitoring of video   recorded under this section; or                (2)  use video recorded under this section for teacher   evaluation or for any other purpose other than the promotion of   safety of students receiving special education services in a   special education [self-contained] classroom or other special   education setting.          (k)  The commissioner may adopt rules to implement and   administer this section, including rules regarding the special   education classrooms and other special education settings to which   this section applies.          (l)  A school district or open-enrollment charter school   policy relating to the placement, operation, or maintenance of   video cameras under this section must:                (1)  include information on how a person may appeal an   action by the district or school that the person believes to be in   violation of this section or a policy adopted in accordance with   this section, including the appeals process under Section 7.057;                (2)  require that the district or school provide a   response to a request made under this section not later than the   seventh school business day after receipt of the request by the   person to whom it must be submitted under Subsection (a-3) that   authorizes the request or states the reason for denying the   request;                (3)  except as provided by Subdivision (5), require   that a school or a campus begin operation of a video camera in   compliance with this section not later than the 45th school   business day, or the first school day after the 45th school business   day if that day is not a school day, after the request is authorized   unless the agency grants an extension of time;                (4)  permit the parent of a student whose admission,   review, and dismissal committee has determined that the student's   placement for the following school year will be in a special   education classroom or other special education setting in which a   video camera may be placed under this section to make a request for   the video camera by the later of:                      (A)  the date on which the current school year   ends; or                      (B)  the 10th school business day after the date   of the placement determination by the admission, review, and   dismissal committee; and                (5)  if a request is made by a parent in compliance with   Subdivision (4), unless the agency grants an extension of time,   require that a school or campus begin operation of a video camera in   compliance with this section not later than the later of:                      (A)  the 10th school day of the fall semester; or                      (B)  the 45th school business day, or the first   school day after the 45th school business day if that day is not a   school day, after the date the request is made.          (s)  This section applies to the placement, operation, and   maintenance of a video camera in a special education   [self-contained] classroom or other special education setting   during the regular school year and extended school year services.          (t)  A video camera placed under this section is not required   to be in operation for the time during which students are not   present in the special education classroom or other special   education setting.          SECTION 2.06.  Sections 29.022(u)(3) and (4), Education   Code, are amended to read as follows:                (3)  "Special education classroom or other special   education setting" means a classroom or setting primarily used for   delivering special education services to students who spend on   average less than 40 percent of an instructional day in a general   education classroom or setting ["Self-contained classroom" does   not include a classroom that is a resource room instructional   arrangement under Section 48.102].                (4)  "Staff member" means a teacher, related service   provider, paraprofessional, counselor, or educational aide   assigned to work in a special education [self-contained] classroom   or other special education setting.          SECTION 2.07.  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 percentage of the instructional day   [arrangement used with the child, as 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 2.08.  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 AE [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;          "AE" ["ADA"] is the greater of the number of students in   average enrollment [daily attendance], as determined under Section   48.0055 [48.005], 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, 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.          SECTION 2.09.  Section 46.005, Education Code, is amended to   read as follows:          Sec. 46.005.  LIMITATION ON GUARANTEED AMOUNT. The   guaranteed amount of state and local funds for a new project that a   district may be awarded in any state fiscal biennium under Section   46.003 for a school district may not exceed the lesser of:                (1)  the amount the actual debt service payments the   district makes in the biennium in which the bonds are issued; or                (2)  the greater of:                      (A)  $100,000; or                      (B)  the product of the number of students in   average enrollment [daily attendance] in the district multiplied by   $250.          SECTION 2.10.  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,   divided by the district's average enrollment [daily attendance] as   determined under Section 48.0055 [48.005].          SECTION 2.11.  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 AE [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;          "AE" ["ADA"] is the number of students in average enrollment   [daily attendance], as determined under Section 48.0055 [48.005],   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, 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.          SECTION 2.12.  Section 48.051, Education Code, is amended by   amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in special education   programs in 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 district is entitled to an allotment equal to   [the lesser of $6,160 or] the amount that results from the following   formula:   A = B [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "B" is the base amount, which equals the greater of:                (1)  $6,300;                (2)  an amount equal to the district's base amount under   this section for the preceding school year; or                (3)  the amount appropriated under Subsection (b);          "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.          (a-1)  Notwithstanding Subsection (a), for the second year   of each state fiscal biennium, the commissioner shall adjust the   value of "B" under that subsection for the preceding state fiscal   year by a factor equal to the average annual percentage increase, if   any, in the Texas Consumer Price Index for the preceding 10 years.   This subsection expires September 1, 2025.          SECTION 2.13.  Section 48.102, Education Code, is amended to   read as follows:          Sec. 48.102.  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 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 in an amount set by the   legislature in the General Appropriations Act for the highest tier   of intensity of service for which the student qualifies   [1.15].  [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]          (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and   2025-2026 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.   This subsection expires September 1, 2026.          (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)  [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.           (d)  [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.          (e) [(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.          (f) [(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 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 $10 million per year.  A school district may use funds   received under this section only in providing an extended year   program.          (g) [(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.          (h)  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.          SECTION 2.14.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.1021 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 an amount set by the legislature in the General   Appropriations Act for the service group for which the student is   eligible.          (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and   2025-2026 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.   This subsection expires September 1, 2026.          (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 the level   of services, equipment, and technology required to meet the needs   of students receiving special education services.          (c)  A school district is entitled to receive an allotment   under this section for each service group for which a student is   eligible.          (d)  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.          (e)  At least 55 percent of the funds allocated under this   section must be used for a special education program under   Subchapter A, Chapter 29.          (f)  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.          Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING. (a)   For the 2024-2025 and 2025-2026 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 2024-2025 and 2025-2026 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, 2023.          (c)  For the 2026-2027 school year, the commissioner may   adjust the weights or amounts set by the legislature in the General   Appropriations Act for purposes of Section 48.102 or 48.1021.   Before making an adjustment under this subsection, the commissioner   shall notify 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 2024-2025 or for the 2025-2026 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, 2023; 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, 2028.          SECTION 2.15.  Section 48.103(c), Education Code, is amended   to read as follows:          (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 2.16.  Sections 48.104(a), (d), and (e), Education   Code, are amended to read as follows:          (a)  For each 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 basic allotment   multiplied by 0.2 or, if the student is educationally   disadvantaged, 0.2755 [0.275].  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.          (d)  The weights assigned to the five tiers of the index   established under Subsection (c) are, from least to most severe   economic disadvantage, 0.2255 [0.225], 0.238 [0.2375], 0.2505   [0.25], 0.263 [0.2625], and 0.2755 [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 0.2255 [0.225] for each student   who is educationally disadvantaged and resides in that census block   group.          SECTION 2.17.  Section 48.105(a), Education Code, is amended   to read as follows:          (a)  For each student in average enrollment [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 basic allotment multiplied by:                (1)  for an emergent bilingual student, 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.          SECTION 2.18.  Sections 48.106(a) and (a-1), Education Code,   are amended to read as follows:          (a)  For each [full-time equivalent] student in average   enrollment [daily attendance] in an approved career and technology   education program in grades 7 through 12, 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:                (1)  0.1 [1.1] for a [full-time equivalent] student in   career and technology education courses not in an approved program   of study;                (2)  0.28 [1.28] for a [full-time equivalent] student   in levels one and two career and technology education courses in an   approved program of study, as identified by the agency; and                (3)  0.47 [1.47] for a [full-time equivalent] student   in levels three and four career and technology education courses in   an approved program of study, as identified by the agency.          (a-1)  In addition to the amounts under Subsection (a), for   each student in average enrollment [daily attendance], a district   is entitled to $50 for each of the following in which the student is   enrolled:                (1)  a campus designated as a P-TECH school under   Section 29.556; or                (2)  a campus that is a member of the New Tech Network   and that focuses on project-based learning and work-based   education.          SECTION 2.19.  Section 48.107(a), Education Code, is amended   to read as follows:          (a)  Except as provided by Subsection (b), for each student   in average enrollment [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 basic allotment multiplied by a   weight of 0.1.          SECTION 2.20.  Section 48.108(a), Education Code, is amended   to read as follows:          (a)  For each student in average enrollment [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)  an emergent bilingual student, as defined by   Section 29.052, and is in a bilingual education or special language   program under Subchapter B, Chapter 29.          SECTION 2.21.  Section 48.109(c), Education Code, is amended   to read as follows:          (c)  Not more than five percent of a district's students in   average enrollment [daily attendance] are eligible for funding   under this section.          SECTION 2.22.  Subchapter C, Chapter 48, Education Code, is   amended by adding Section 48.119 to read as follows:          Sec. 48.119.  BOOK SAFETY ALLOTMENT. (a)  For each student   in average enrollment, a school district is entitled to an annual   allotment of $3 or a greater amount provided by appropriation.          (b)  Funds allocated under this section may be used only to   ensure that school library books and related materials meet the   standards adopted under Section 33.021.          (c)  The agency shall adopt a list of approved vendors at   which a school district may spend funds allocated under this   section for the purpose described by Subsection (b).          SECTION 2.23.  Section 48.153, Education Code, is amended 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   enrollment [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 2.24.  Section 48.257, Education Code, is amended by   amending Subsection (a) and adding Subsection (b-1) to read as   follows:          (a)  Subject to Subsection (b) and except as provided by   Subsection (b-1), if a school district's tier one local share under   Section 48.256 exceeds the district's entitlement under Section   48.266(a)(1) less the district's distribution from the state   available school fund, the district must reduce the district's tier   one revenue level in accordance with Chapter 49 to a level not to   exceed the district's entitlement under Section 48.266(a)(1) less   the district's distribution from the state available school fund.          (b-1)  This subsection applies only to a school district to   which Subsection (a) applies, that received an allotment under   Section 48.277 for the 2023-2024 school year, and that adopted a   maintenance and operations tax rate for the 2022-2023 school year   equal to or greater than the sum of the district's maximum   compressed tax rate, as determined under Section 48.2551, and five   cents.  Notwithstanding Subsection (a), if, after reducing the tier   one revenue level of a school district to which this subsection   applies as required under Subsection (a), the maintenance and   operations revenue per student in average daily attendance of the   district for a school year would be less than the maintenance and   operations revenue per student in average daily attendance   available to the district for the 2023-2024 school year, excluding   any funding provided to the district under Sections 48.279 and   48.281, the agency shall adjust the amount of the reduction   required in the district's tier one revenue level under Subsection   (a) up to the amount of local funds necessary to provide the   district with the amount of maintenance and operations revenue per   student in average daily attendance available to the district for   the 2023-2024 school year.          SECTION 2.25.   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 2.26.  Section 48.106(b)(2), Education Code, is   repealed.          SECTION 2.27.  This article takes effect September 1, 2024.