By: Menéndez, et al. S.B. No. 37               A BILL TO BE ENTITLED   AN ACT   Relating to the public school finance system.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. BASIC ALLOTMENT          SECTION 1.01.  Section 48.051, Education Code, is amended by   amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  Subject to adjustment under Subsection (a-1), for [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 $7,365 [$6,160] or the amount that results   from the following formula:          A = $7,365 [$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.          (a-1)  Beginning with the 2024-2025 school year, the basic   allotment provided to a district under Subsection (a) or (b) is   adjusted annually to increase the allotment by the amount that   results from applying the inflation rate, as determined by the   comptroller on the basis of changes in the Consumer Price Index for   All Urban Consumers published by the Bureau of Labor Statistics of   the United States Department of Labor, to the allotment for the   preceding school year.          SECTION 1.02.  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 7,365 [6,160], or the   greater amount provided under Section 48.051(a-1) or (b)   [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 $7,365 [$6,160], or the greater amount provided under   Section 48.051(a-1) or (b) [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).   ARTICLE 2. ENROLLMENT-BASED FUNDING          SECTION 2.01.  Section 48.005, Education Code, is amended to   read as follows:          Sec. 48.005.  AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)   In this chapter, average enrollment [daily attendance] is:                (1)  the average number of students enrolled in the   school district during a school year [quotient of the sum of   attendance for each day of the minimum number of days of instruction   as described under Section 25.081(a) divided by the minimum number   of days of instruction;                [(2)  for a district that operates under a flexible   year program under Section 29.0821, the quotient of the sum of   attendance for each actual day of instruction as permitted by   Section 29.0821(b)(1) divided by the number of actual days of   instruction as permitted by Section 29.0821(b)(1);                [(3)  for a district that operates under a flexible   school day program under Section 29.0822, the average daily   attendance as calculated by the commissioner in accordance with   Sections 29.0822(d) and (d-1)]; or                (2) [(4)]  for a district that operates a half-day   program or a full-day program under Section 29.153(c), one-half of   the average enrollment [daily attendance] calculated under   Subdivision (1).          (b)  A school district that experiences a decline of two   percent or more in average enrollment [daily attendance] shall be   funded on the basis of:                (1)  the actual average enrollment [daily attendance]   of the preceding school year, if the decline is the result of the   closing or reduction in personnel of a military base; or                (2)  subject to Subsection (e), an average enrollment   [daily attendance] not to exceed 98 percent of the actual average   enrollment [daily attendance] of the preceding school year, if the   decline is not the result of the closing or reduction in personnel   of a military base.          (c)  The commissioner shall adjust the average enrollment   [daily attendance] of a school district that has a significant   percentage of students who are migratory children as defined by 20   U.S.C. Section 6399.          (d)  The commissioner may adjust the average enrollment   [daily attendance] of a school district in which a disaster, flood,   extreme weather condition, fuel curtailment, or other calamity has   a significant effect on the district's enrollment [attendance]. In   addition to providing the adjustment for the amount of   instructional days during the semester in which the calamity first   occurred, an adjustment under this section may only be provided   based on a particular calamity for an additional amount of   instructional days equivalent to one school year. The commissioner   may divide the adjustment between two consecutive school years.          (e)  For each school year, the commissioner shall adjust the   average enrollment [daily attendance] of school districts that are   entitled to funding on the basis of an adjusted average enrollment   [daily attendance] under Subsection (b)(2) so that:                (1)  all districts are funded on the basis of the same   percentage of the preceding year's actual average enrollment [daily   attendance]; and                (2)  the total cost to the state does not exceed the   amount specifically appropriated for that year for purposes of   Subsection (b)(2).          (f)  An open-enrollment charter school is not entitled to   funding based on an adjustment under Subsection (b)(2).          (g)  If a student may receive course credit toward the   student's high school academic requirements and toward the   student's higher education academic requirements for a single   course, including a course provided under Section 28.009 by a   public institution of higher education, the time during which the   student attends the course shall be counted as part of the minimum   number of instructional hours required for a student to be   considered a full-time student in average enrollment [daily   attendance] for purposes of this section.          [(g-1)  The commissioner shall adopt rules to calculate   average daily attendance for students participating in a blended   learning program in which classroom instruction is supplemented   with applied workforce learning opportunities, including   participation of students in internships, externships, and   apprenticeships.]          (h)  Time [Subject to rules adopted by the commissioner under   Section 48.007(b), time] that a student participates in an   off-campus instructional program provided by an entity other than a   school district or open-enrollment charter school and approved by   the commissioner in accordance with commissioner rule [under   Section 48.007(a)] shall be counted as part of the minimum number of   instructional hours required for a student to be considered a   full-time student in average enrollment [daily attendance] for   purposes of this section.          (i)  A district or a charter school operating under Chapter   12 that operates a prekindergarten program is eligible to receive   one-half of average enrollment [daily attendance] under Subsection   (a) if the district's or charter school's prekindergarten program   provides at least 32,400 minutes of instructional time to students.          (j)  A district or charter school is eligible to earn full   average enrollment [daily attendance] under Subsection (a) if the   district or school provides at least 43,200 minutes of   instructional time to students enrolled in:                (1)  a dropout recovery school or program operating   under Section 12.1141(c) or Section 39.0548;                (2)  an alternative education program operating under   Section 37.008;                (3)  a school program located at a day treatment   facility, residential treatment facility, psychiatric hospital, or   medical hospital;                (4)  a school program offered at a correctional   facility; or                (5)  a school operating under Subchapter G, Chapter 12.          (k)  A charter school operating under a charter granted under   Chapter 12 before January 1, 2015, is eligible to earn full average   enrollment [daily attendance] under Subsection (a), as that   subsection existed immediately before January 1, 2015, for:                (1)  all campuses of the charter school operating   before January 1, 2015; and                (2)  any campus or site expansion approved on or after   January 1, 2015, provided that the charter school received an   academic accountability performance rating of C or higher, and the   campus or site expansion is approved by the commissioner.          (l)  A school district campus or charter school described by   Subsection (j) may operate more than one program and be eligible for   full average enrollment [daily attendance] for each program if the   programs operated by the district campus or charter school satisfy   all applicable state and federal requirements.          (m)  The commissioner shall adopt rules necessary to   implement this section, including rules that:                (1)  determine the method to calculate the average   number of students enrolled in a school district during a school   year;                (2)  establish the minimum amount of instructional time   per day that allows a school district or charter school to be   eligible for full average enrollment [daily attendance], which may   differ based on the instructional program offered by the district   or charter school;                (3) [(2)]  establish the requirements necessary for a   school district or charter school to be eligible for one-half of   average enrollment [daily attendance], which may differ based on   the instructional program offered by the district or charter   school;                (4) [(3)]  proportionally reduce the average   enrollment [daily attendance] for a school district if any campus   or instructional program in the district provides fewer than the   required minimum minutes of instruction to students; and                (5) [(4)]  allow a grade or course repeated under   Section 28.02124 to qualify for average enrollment [daily   attendance] even if the student previously passed or earned credit   for the grade or course, if the grade or course would otherwise be   eligible.          (n)  To assist school districts in implementing this section   as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular   Session, 2017, the commissioner may waive a requirement of this   section or adopt rules to implement this section.          SECTION 2.02.  Section 7.062(a), Education Code, is amended   to read as follows:          (a)  In this section, "wealth per student" means a school   district's taxable value of property as determined under Subchapter   M, Chapter 403, Government Code, or, if applicable, Section 48.258,   divided by the district's average enrollment [daily attendance] as   determined under Section 48.005.          SECTION 2.03.  Section 11.052(f), Education Code, is amended   to read as follows:          (f)  If single-member trustee districts are adopted or   approved as provided by this section, the board shall divide the   school district into the appropriate number of trustee districts,   based on the number of members of the board that are to be elected   from single-member trustee districts, and shall number each trustee   district. The trustee districts must be compact and contiguous and   must be as nearly as practicable of equal population. In a district   with 150,000 or more students in average enrollment [daily   attendance], the boundary of a trustee district may not cross a   county election precinct boundary except at a point at which the   boundary of the school district crosses the county election   precinct boundary. Trustee districts must be drawn not later than   the 90th day before the date of the first election of trustees from   those districts.          SECTION 2.04.  Sections 12.106(a), (a-2), and (d), Education   Code, are amended to read as follows:          (a)  A charter holder is entitled to receive for the   open-enrollment charter school funding under Chapter 48 equal to   the amount of funding per student in weighted average enrollment   [daily attendance], excluding the adjustment under Section 48.052,   the funding under Sections 48.101, 48.110, 48.111, and 48.112, and   enrichment funding under Section 48.202(a), to which the charter   holder would be entitled for the school under Chapter 48 if the   school were a school district without a tier one local share for   purposes of Section 48.266.          (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 enrollment   [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 enrollment [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   enrollment [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 enrollment [daily attendance] in school districts   statewide; and                (2)  $125.          (d)  Subject to Subsection (e), in addition to other amounts   provided by this section, a charter holder is entitled to receive,   for the open-enrollment charter school, funding per student in   average enrollment [daily attendance] in an amount equal to the   guaranteed level of state and local funds per student per cent of   tax effort under Section 46.032(a) multiplied by the lesser of:                (1)  the state average interest and sinking fund tax   rate imposed by school districts for the current year; or                (2)  a rate that would result in a total amount to which   charter schools are entitled under this subsection for the current   year equal to $60 million.          SECTION 2.05.  Sections 12.263(a), (b), and (c), Education   Code, are amended to read as follows:          (a)  Except as otherwise provided by this section, funding   for an adult education program operated under a charter granted   under this subchapter is an amount per participant through the   Foundation School Program equal to the amount of state funding per   student in weighted average enrollment [daily attendance] that   would be allocated under the Foundation School Program for the   student's attendance at an open-enrollment charter school in   accordance with Section 12.106.          (b)  For purposes of determining the average enrollment   [daily attendance] of an adult education program operated under a   charter granted under this subchapter, a student is considered to   be in average enrollment [daily attendance, with a 100 percent   attendance rate,] for:                (1)  all of the instructional days of the school year,   if the student is enrolled for at least 75 percent of the school   year;                (2)  half of the instructional days of the school year,   if the student is enrolled for at least 50 percent but less than 75   percent of the school year;                (3)  a quarter of the instructional days of the school   year, if the student is enrolled for at least 25 percent but less   than 50 percent of the school year; or                (4)  one-tenth of the instructional days of the school   year, if the student is enrolled for at least 10 percent but less   than 25 percent of the school year.          (c)  A student enrolled in an adult education program   operated under a charter granted under this subchapter for less   than 10 percent of a school year may not be counted toward the adult   education program's average enrollment [daily attendance] for that   school year.          SECTION 2.06.  Section 13.051(c), Education Code, is amended   to read as follows:          (c)  Territory that does not have residents may be detached   from a school district and annexed to another school district if:                (1)  the total taxable value of the property in the   territory according to the most recent certified appraisal roll for   each school district is not greater than:                      (A)  five percent of the district's taxable value   of all property in that district as determined under Subchapter M,   Chapter 403, Government Code; and                      (B)  $5,000 property value per student in average   enrollment [daily attendance] as determined under Section 48.005;   and                (2)  the school district from which the property will   be detached does not own any real property located in the territory.          SECTION 2.07.  Section 13.102, Education Code, is amended to   read as follows:          Sec. 13.102.  MINIMUM AREA AND ENROLLMENT [ATTENDANCE]   REQUIREMENTS. A new district may not be created with an area of   less than nine square miles or fewer than 8,000 students in average   enrollment [daily attendance], and a district may not be reduced to   an area of less than nine square miles or fewer than 8,000 students   in average enrollment [daily attendance].          SECTION 2.08.  Section 13.283, Education Code, is amended to   read as follows:          Sec. 13.283.  PAYMENTS REDUCED. The incentive aid payments   shall be reduced in direct proportion to any reduction in the   average enrollment [daily attendance] as determined under Section   48.005 of the reorganized school district for the preceding year.          SECTION 2.09.  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; or                (2)  the maximum uniform amount 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 enrollment [daily attendance] in the   district during the 2009-2010 school year.          SECTION 2.10.  Section 25.038, Education Code, is amended to   read as follows:          Sec. 25.038.  TUITION FEE FOR TRANSFER STUDENTS. The   receiving school district may charge a tuition fee to the extent   that the district's actual expenditure per student in average   enrollment [daily attendance], as determined by its board of   trustees, exceeds the sum the district benefits from state aid   sources as provided by Section 25.037. However, unless a tuition   fee is prescribed and set out in a transfer agreement before its   execution by the parties, an increase in tuition charge may not be   made for the year of that transfer that exceeds the tuition charge,   if any, of the preceding school year.          SECTION 2.11.  Section 25.045(c), Education Code, is amended   to read as follows:          (c)  A student who transfers to another school district under   this section may not be charged tuition. The student is included in   the average enrollment [daily attendance] of the district in which   the student attends school.          SECTION 2.12.  Sections 25.081(e) and (f), Education Code,   are amended to read as follows:          (e)  A school district or education program is exempt from   the minimum minutes of operation requirement if the district's or   program's average enrollment [daily attendance] is calculated   under Section 48.005(j).          (f)  The commissioner may proportionally reduce the amount   of funding a district receives under Chapter 46, 48, or 49 and the   average enrollment [daily attendance] calculation for the district   if the district operates on a calendar that provides fewer minutes   of operation than required under Subsection (a).          SECTION 2.13.  Section 25.087(d), Education Code, is amended   to read as follows:          (d)  A student whose absence is excused under Subsection (b),   (b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be   penalized for that absence and shall be counted as if the student   attended school for purposes of funding under Chapter 48   [calculating the average daily attendance of students in the school   district]. A student whose absence is excused under Subsection (b),   (b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a   reasonable time to make up school work missed on those days. If the   student satisfactorily completes the school work, the day of   absence shall be counted as a day of compulsory attendance.          SECTION 2.14.  Section 25.111, Education Code, is amended to   read as follows:          Sec. 25.111.  STUDENT/TEACHER RATIOS. Except as provided by   Section 25.112, each school district must employ a sufficient   number of teachers certified under Subchapter B, Chapter 21, to   maintain an average ratio of not less than one teacher for each 20   students in average enrollment [daily attendance].          SECTION 2.15.  Sections 25.112(a) and (b), Education Code,   are amended to read as follows:          (a)  Except as otherwise authorized by this section, a school   district may not enroll more than 22 students in a prekindergarten,   kindergarten, first, second, third, or fourth grade class. That   limitation does not apply during:                (1)  any 12-week period of the school year selected by   the district, in the case of a district whose average enrollment   [daily attendance] is adjusted under Section 48.005(c); or                (2)  the last 12 weeks of any school year in the case of   any other district.          (b)  Not later than the 30th day after the first day of the   12-week period for which a district whose average enrollment [daily   attendance] is adjusted under Section 48.005(c) is claiming an   exemption under Subsection (a), the district shall notify the   commissioner in writing that the district is claiming an exemption   for the period stated in the notice.          SECTION 2.16.  Section 29.008(b), Education Code, is amended   to read as follows:          (b)  Except as provided by Subsection (c), costs of an   approved contract for residential placement may be paid from a   combination of federal, state, and local funds. The local share of   the total contract cost for each student is that portion of the   local tax effort that exceeds the district's local fund assignment   under Section 48.256, divided by the average enrollment [daily   attendance] in the district. If the contract involves a private   facility, the state share of the total contract cost is that amount   remaining after subtracting the local share. If the contract   involves a public facility, the state share is that amount   remaining after subtracting the local share from the portion of the   contract that involves the costs of instructional and related   services. For purposes of this subsection, "local tax effort"   means the total amount of money generated by taxes imposed for debt   service and maintenance and operation less any amounts paid into a   tax increment fund under Chapter 311, Tax Code.          SECTION 2.17.  Section 29.014(b), Education Code, is amended   to read as follows:          (b)  A school district to which this section applies may   operate an extended year program for a period not to exceed 45 days.   [The district's average daily attendance shall be computed for the   regular school year plus the extended year.]          SECTION 2.18.  Section 29.081(f), Education Code, is amended   to read as follows:          (f)  The commissioner shall include a student who   successfully completes a course offered through a program under   Subsection (e) in the computation of the district's or school's   average enrollment [daily attendance] for funding purposes. [For a   student who successfully completes a remote course offered through   the program, the commissioner shall include the student in the   computation of the district's or school's average daily attendance   with an attendance rate equal to:                [(1)  the district's or school's average attendance   rate for students successfully completing a course offered in   person under the program; or                [(2)  if the district or school does not offer courses   in person under the program, the statewide average attendance rate   for students successfully completing a course offered in person   under a program under Subsection (e).]          SECTION 2.19.  Section 29.0822(d), Education Code, is   amended to read as follows:          (d)  The commissioner may adopt rules for the administration   of this section, including rules establishing application   requirements. [Subject to Subsection (d-1), the commissioner shall   calculate average daily attendance for students served under this   section. The commissioner shall allow accumulations of hours of   instruction for students whose schedule would not otherwise allow   full state funding. Funding under this subsection shall be   determined based on the number of instructional days in the school   district calendar and a seven-hour school day, but attendance may   be cumulated over a school year, including any summer or vacation   session. The attendance of students who accumulate less than the   number of attendance hours required under this subsection shall be   proportionately reduced for funding purposes. The commissioner   may:                [(1)  set maximum funding amounts for an individual   course under this section; and                [(2)  limit funding for the attendance of a student   described by Subsection (a)(3) in a course under this section to   funding only for the attendance necessary for the student to earn   class credit that, as a result of attendance requirements under   Section 25.092, the student would not otherwise be able to receive   without retaking the class.]          SECTION 2.20.  Section 29.184(b), Education Code, is amended   to read as follows:          (b)  A student who attends career and technology classes at   another school under a contract authorized by Subsection (a) is   included in the average enrollment [daily attendance] of the   district in which the student is regularly enrolled.          SECTION 2.21.  Sections 29.203(a) and (c), Education Code,   are amended to read as follows:          (a)  A student who under this subchapter uses a public   education grant to attend a public school in a school district other   than the district in which the student resides is included in the   average enrollment [daily attendance] of the district in which the   student attends school.          (c)  A school district is entitled to additional facilities   assistance under Section 48.301 if the district agrees to:                (1)  accept a number of students using public education   grants that is at least one percent of the district's average   enrollment [daily attendance] for the preceding school year; and                (2)  provide services to each student until the student   either voluntarily decides to attend a school in a different   district or graduates from high school.          SECTION 2.22.  Section 29.403(b), Education Code, is amended   to read as follows:          (b)  A student who is enrolled in a program under this   subchapter is included in determining the average enrollment [daily   attendance] under Section 48.005 of the partnering school district.          SECTION 2.23.  Section 29.457(a), Education Code, is amended   to read as follows:          (a)  In addition to other funding to which a school district   is entitled under this code, each district in which alleged   offender residents attend school is entitled to an annual allotment   of $5,100 for each resident in average enrollment [daily   attendance] or a different amount for any year provided by   appropriation.          SECTION 2.24.  Section 29.912(c), Education Code, is amended   to read as follows:          (c)  The program must enable an eligible school district that   has fewer than 1,600 students in average enrollment [daily   attendance] to partner with at least one other school district   located within a distance of 100 miles 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 on the coordinating entity the same authority   with respect to pathways offered under the partnership provided to   an entity that contracts to operate a district campus under Section   11.174;                      (C)  is an eligible entity as defined by Section   12.101(a); and                      (D)  has on the entity's governing board as either   voting or ex officio members, or has on an advisory body,   representatives of each partnering school district and members of   regional higher education and workforce organizations.          SECTION 2.25.  Section 30.003(b), Education Code, is amended   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 divided by the district's average enrollment [daily   attendance] for the preceding year.          SECTION 2.26.  Section 30.102(a), Education Code, is amended   to read as follows:          (a)  The Texas Juvenile Justice Department is entitled to   receive the state available school fund apportionment based on the   average enrollment [daily attendance] in the department's   educational programs of students who are at least three years of age   and not older than 21 years of age.          SECTION 2.27.  Section 30A.151(f), Education Code, is   amended to read as follows:          (f)  For a full-time electronic course program offered   through the state virtual school network for a grade level at or   above grade level three but not above grade level eight, a school   district or open-enrollment charter school is entitled to receive   federal, state, and local funding for a student enrolled in the   program in an amount equal to the funding the district or school   would otherwise receive for a student enrolled in the district or   school. [The district or school may calculate the average daily   attendance of a student enrolled in the program based on:                [(1) hours of contact with the student;                [(2) the student's successful completion of a course;   or                [(3) a method approved by the commissioner.]          SECTION 2.28.  Section 33.157, Education Code, is amended to   read as follows:          Sec. 33.157.  PARTICIPATION IN PROGRAM. An elementary or   secondary school receiving funding under Section 33.156 shall   participate in a local Communities In Schools program if the number   of students enrolled in the school who are at risk of dropping out   of school is equal to at least 10 percent of the number of students   in average enrollment [daily attendance] at the school, as   determined by the agency.          SECTION 2.29.  Section 37.0061, Education Code, is amended   to read as follows:          Sec. 37.0061.  FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN   JUVENILE RESIDENTIAL FACILITIES. A school district that provides   education services to pre-adjudicated and post-adjudicated   students who are confined by court order in a juvenile residential   facility operated by a juvenile board is entitled to count such   students in the district's average enrollment [daily attendance]   for purposes of receipt of state funds under the Foundation School   Program. If the district has a local revenue level greater than the   guaranteed local revenue level but less than the level established   under Section 48.257, the district in which the student is enrolled   on the date a court orders the student to be confined to a juvenile   residential facility shall transfer to the district providing   education services an amount equal to the difference between the   average Foundation School Program costs per student of the district   providing education services and the sum of the state aid and the   money from the available school fund received by the district that   is attributable to the student for the portion of the school year   for which the district provides education services to the student.          SECTION 2.30.  Section 37.008(f), Education Code, is amended   to read as follows:          (f)  A student removed to a disciplinary alternative   education program is counted in computing the average enrollment   [daily attendance] of students in the district [for the student's   time in actual attendance in the program].          SECTION 2.31.  Section 37.011(a-4), Education Code, is   amended to read as follows:          (a-4)  A school district located in a county considered to be   a county with a population of 125,000 or less under Subsection (a-3)   shall provide educational services to a student who is expelled   from school under this chapter. The district is entitled to count   the student in the district's average enrollment [daily attendance]   for purposes of receipt of state funds under the Foundation School   Program. An educational placement under this section may include:                (1)  the district's disciplinary alternative education   program; or                (2)  a contracted placement with:                      (A)  another school district;                      (B)  an open-enrollment charter school;                      (C)  an institution of higher education;                      (D)  an adult literacy council; or                      (E)  a community organization that can provide an   educational program that allows the student to complete the credits   required for high school graduation.          SECTION 2.32.  Sections 39.027(c) and (f), Education Code,   are amended to read as follows:          (c)  The commissioner shall develop and adopt a process for   reviewing the exemption process of a school district or shared   services arrangement that gives an exemption under Subsection   (a)(1) as follows:                (1)  to more than five percent of the students in the   special education program, in the case of a district or shared   services arrangement with an average enrollment [daily attendance]   of at least 1,600;                (2)  to more than 10 percent of the students in the   special education program, in the case of a district or shared   services arrangement with an average enrollment [daily attendance]   of at least 190 and not more than 1,599; or                (3)  to the greater of more than 10 percent of the   students in the special education program or to at least five   students in the special education program, in the case of a district   or shared services arrangement with an average enrollment [daily   attendance] of not more than 189.          (f)  In this section, "average enrollment [daily   attendance]" is computed in the manner provided by Section 48.005.          SECTION 2.33.  Section 39.053(g-1), Education Code, is   amended to read as follows:          (g-1)  In computing dropout and completion rates such as high   school graduation rates under Subsection (c)(1)(B)(ix), the   commissioner shall exclude:                (1)  students who are ordered by a court to attend a   high school equivalency certificate program but who have not yet   earned a high school equivalency certificate;                (2)  students who were previously reported to the state   as dropouts, including a student who is reported as a dropout,   reenrolls, and drops out again, regardless of the number of times of   reenrollment and dropping out;                (3)  students in attendance who are not in membership   for purposes of average enrollment [daily attendance];                (4)  students whose initial enrollment in a school in   the United States in grades 7 through 12 was as an unschooled asylee   or refugee as defined by Section 39.027(a-1);                (5)  students who are detained at a county   pre-adjudication or post-adjudication juvenile detention facility   and:                      (A)  in the district exclusively as a function of   having been detained at the facility but are otherwise not students   of the district in which the facility is located; or                      (B)  provided services by an open-enrollment   charter school exclusively as the result of having been detained at   the facility;                (6)  students who are incarcerated in state jails and   federal penitentiaries as adults and as persons certified to stand   trial as adults; and                (7)  students who have suffered a condition, injury, or   illness that requires substantial medical care and leaves the   student:                      (A)  unable to attend school; and                      (B)  assigned to a medical or residential   treatment facility.          SECTION 2.34.  Section 39.262(a), Education Code, is amended   to read as follows:          (a)  The governor may present a financial award to the   schools or districts that the commissioner determines have   demonstrated the highest levels of sustained success or the   greatest improvement in achieving the education goals. For each   student in average enrollment [daily attendance], each of those   schools or districts is entitled to an amount set for the award for   which the school or district is selected by the commissioner,   subject to any limitation set by the commissioner on the total   amount that may be awarded to a school or district.          SECTION 2.35.  Section 43.001(c), Education Code, is amended   to read as follows:          (c)  The term "scholastic population" in Subsection (b) or   any other law governing the apportionment, distribution, and   transfer of the available school fund means all students of school   age [enrolled] in average enrollment [daily attendance] the   preceding school year in the public elementary and high school   grades of school districts within or under the jurisdiction of a   county of this state.          SECTION 2.36.  Section 44.004(c), Education Code, is amended   to read as follows:          (c)  The notice of public meeting to discuss and adopt the   budget and the proposed tax rate may not be smaller than one-quarter   page of a standard-size or a tabloid-size newspaper, and the   headline on the notice must be in 18-point or larger type. Subject   to Subsection (d), the notice must:                (1)  contain a statement in the following form:   "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE          "The (name of school district) will hold a public meeting at   (time, date, year) in (name of room, building, physical location,   city, state). The purpose of this meeting is to discuss the school   district's budget that will determine the tax rate that will be   adopted. Public participation in the discussion is invited." The   statement of the purpose of the meeting must be in bold type. In   reduced type, the notice must state: "The tax rate that is   ultimately adopted at this meeting or at a separate meeting at a   later date may not exceed the proposed rate shown below unless the   district publishes a revised notice containing the same information   and comparisons set out below and holds another public meeting to   discuss the revised notice." In addition, in reduced type, the   notice must state: "Visit Texas.gov/PropertyTaxes to find a link to   your local property tax database on which you can easily access   information regarding your property taxes, including information   about proposed tax rates and scheduled public hearings of each   entity that taxes your property.";                (2)  contain a section entitled "Comparison of Proposed   Budget with Last Year's Budget," which must show the difference,   expressed as a percent increase or decrease, as applicable, in the   amounts budgeted for the preceding fiscal year and the amount   budgeted for the fiscal year that begins in the current tax year for   each of the following:                      (A)  maintenance and operations;                      (B)  debt service; and                      (C)  total expenditures;                (3)  contain a section entitled "Total Appraised Value   and Total Taxable Value," which must show the total appraised value   and the total taxable value of all property and the total appraised   value and the total taxable value of new property taxable by the   district in the preceding tax year and the current tax year as   calculated under Section 26.04, Tax Code;                (4)  contain a statement of the total amount of the   outstanding and unpaid bonded indebtedness of the school district;                (5)  contain a section entitled "Comparison of Proposed   Rates with Last Year's Rates," which must:                      (A)  show in rows the tax rates described by   Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of   property, for columns entitled "Maintenance & Operations,"   "Interest & Sinking Fund," and "Total," which is the sum of   "Maintenance & Operations" and "Interest & Sinking Fund":                            (i)  the school district's "Last Year's   Rate";                            (ii)  the "Rate to Maintain Same Level of   Maintenance & Operations Revenue & Pay Debt Service," which:                                  (a)  in the case of "Maintenance &   Operations," is the tax rate that, when applied to the current   taxable value for the district, as certified by the chief appraiser   under Section 26.01, Tax Code, and as adjusted to reflect changes   made by the chief appraiser as of the time the notice is prepared,   would impose taxes in an amount that, when added to state funds to   be distributed to the district under Chapter 48, would provide the   same amount of maintenance and operations taxes and state funds   distributed under Chapter 48 per student in average enrollment   [daily attendance] for the applicable school year that was   available to the district in the preceding school year; and                                  (b)  in the case of "Interest & Sinking   Fund," is the tax rate that, when applied to the current taxable   value for the district, as certified by the chief appraiser under   Section 26.01, Tax Code, and as adjusted to reflect changes made by   the chief appraiser as of the time the notice is prepared, and when   multiplied by the district's anticipated collection rate, would   impose taxes in an amount that, when added to state funds to be   distributed to the district under Chapter 46 and any excess taxes   collected to service the district's debt during the preceding tax   year but not used for that purpose during that year, would provide   the amount required to service the district's debt; and                            (iii)  the "Proposed Rate";                      (B)  contain fourth and fifth columns aligned with   the columns required by Paragraph (A) that show, for each row   required by Paragraph (A):                            (i)  the "Local Revenue per Student," which   is computed by multiplying the district's total taxable value of   property, as certified by the chief appraiser for the applicable   school year under Section 26.01, Tax Code, and as adjusted to   reflect changes made by the chief appraiser as of the time the   notice is prepared, by the total tax rate, and dividing the product   by the number of students in average enrollment [daily attendance]   in the district for the applicable school year; and                            (ii)  the "State Revenue per Student," which   is computed by determining the amount of state aid received or to be   received by the district under Chapters 43, 46, and 48 and dividing   that amount by the number of students in average enrollment [daily   attendance] in the district for the applicable school year; and                      (C)  contain an asterisk after each calculation   for "Interest & Sinking Fund" and a footnote to the section that, in   reduced type, states "The Interest & Sinking Fund tax revenue is   used to pay for bonded indebtedness on construction, equipment, or   both. The bonds, and the tax rate necessary to pay those bonds, were   approved by the voters of this district.";                (6)  contain a section entitled "Comparison of Proposed   Levy with Last Year's Levy on Average Residence," which must:                      (A)  show in rows the information described by   Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns   entitled "Last Year" and "This Year":                            (i)  "Average Market Value of Residences,"   determined using the same group of residences for each year;                            (ii)  "Average Taxable Value of Residences,"   determined after taking into account the limitation on the   appraised value of residences under Section 23.23, Tax Code, and   after subtracting all homestead exemptions applicable in each year,   other than exemptions available only to disabled persons or persons   65 years of age or older or their surviving spouses, and using the   same group of residences for each year;                            (iii)  "Last Year's Rate Versus Proposed   Rate per $100 Value"; and                            (iv)  "Taxes Due on Average Residence,"   determined using the same group of residences for each year; and                      (B)  contain the following information: "Increase   (Decrease) in Taxes" expressed in dollars and cents, which is   computed by subtracting the "Taxes Due on Average Residence" for   the preceding tax year from the "Taxes Due on Average Residence" for   the current tax year;                (7)  contain the following statement in bold print:   "Under state law, the dollar amount of school taxes imposed on the   residence of a person 65 years of age or older or of the surviving   spouse of such a person, if the surviving spouse was 55 years of age   or older when the person died, may not be increased above the amount   paid in the first year after the person turned 65, regardless of   changes in tax rate or property value.";                (8)  contain the following statement in bold print:   "Notice of Voter-Approval Rate: The highest tax rate the district   can adopt before requiring voter approval at an election is (the   school district voter-approval rate determined under Section   26.08, Tax Code). This election will be automatically held if the   district adopts a rate in excess of the voter-approval rate of (the   school district voter-approval rate)."; and                (9)  contain a section entitled "Fund Balances," which   must include the estimated amount of interest and sinking fund   balances and the estimated amount of maintenance and operation or   general fund balances remaining at the end of the current fiscal   year that are not encumbered with or by corresponding debt   obligation, less estimated funds necessary for the operation of the   district before the receipt of the first payment under Chapter 48 in   the succeeding school year.          SECTION 2.37.  Sections 45.0011(a), (d), and (e), Education   Code, are amended to read as follows:          (a)  This section applies only to an independent school   district that, at the time of the issuance of obligations and   execution of credit agreements under this section, has:                (1)  at least 2,000 students in average enrollment   [daily attendance]; or                (2)  a combined aggregate principal amount of at least   $50 million of outstanding bonds and voted but unissued bonds.          (d)  A district may not issue bonds to which this section   applies in an amount greater than the greater of:                (1)  25 percent of the sum of:                      (A)  the aggregate principal amount of all   district debt payable from ad valorem taxes that is outstanding at   the time the bonds are issued; and                      (B)  the aggregate principal amount of all bonds   payable from ad valorem taxes that have been authorized but not   issued;                (2)  $25 million, in a district that has at least 3,500   but not more than 15,000 students in average enrollment [daily   attendance]; or                (3)  $50 million, in a district that has more than   15,000 students in average enrollment [daily attendance].          (e)  In this section, average enrollment [daily attendance]   is determined in the manner provided by Section 48.005.          SECTION 2.38.  Section 45.006(a), Education Code, is amended   to read as follows:          (a)  This section applies only to a school district that:                (1)  has an average enrollment [daily attendance] of   less than 10,000; and                (2)  is located in whole or part in a municipality with   a population of less than 25,000 that is located in a county with a   population of 200,000 or more bordering another county with a   population of 2.8 million or more.          SECTION 2.39.  Section 45.105(d), Education Code, is amended   to read as follows:          (d)  An independent school district that has in its limits a   municipality with a population of 150,000 or more or that contains   at least 170 square miles, has $850 million or more assessed value   of taxable property on the most recent approved tax roll and has a   growth in average enrollment [daily attendance] of 11 percent or   more for each of the preceding five years as determined by the   agency may, in buying school sites or additions to school sites and   in building school buildings, issue and deliver negotiable or   nonnegotiable notes representing all or part of the cost to the   school district of the land or building. The district may secure   the notes by a vendor's lien or deed of trust lien against the land   or building. By resolution or order of the governing body made at   or before the delivery of the notes, the district may set aside and   appropriate as a trust fund, and the sole and only fund, for the   payment of the principal of and interest on the notes that part of   the local school funds, levied and collected by the school district   in that year or subsequent years, as the governing body determines.   The aggregate amount of local school funds set aside in or for any   subsequent year for the retirement of the notes may not exceed, in   any one subsequent year, 10 percent of the local school funds   collected during that year. The district may issue the notes only   if approved by majority vote of the qualified voters voting in an   election conducted in the manner provided by Section 45.003 for   approval of bonds.          SECTION 2.40.  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   48.005, 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 2.41.  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 2.42.  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 48.005.          SECTION 2.43.  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 48.005, 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 44.  Sections 48.0051(a) and (b), Education Code,   are amended to read as follows:          (a)  The [Subject to Subsection (a-1), the] commissioner   shall adjust the average enrollment [daily attendance] of a school   district or open-enrollment charter school under Section 48.005 in   the manner provided by Subsection (b) if the district or school:                (1)  provides the minimum number of minutes of   operational and instructional time required under Section 25.081   and commissioner rules adopted under that section over at least 180   days of instruction; and                (2)  offers an additional 30 days of half-day   instruction for students enrolled in prekindergarten through fifth   grade.          (b)  For a school district or open-enrollment charter school   described by Subsection (a), the commissioner shall increase the   average enrollment [daily attendance] of the district or school   under Section 48.005 by the amount equal to one-sixth [that results   from the quotient] of the enrollment [sum of attendance] by   students described by Subsection (a)(2) in [for each of] the 30   additional instructional days of half-day instruction [that are   provided divided by 180].          SECTION 2.45.  Section 48.006, Education Code, is amended to   read as follows:          Sec. 48.006.  AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR   DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the   average enrollment [daily attendance] of a school district all or   part of which is located in an area declared a disaster area by the   governor under Chapter 418, Government Code, if the district   experiences a decline in average enrollment [daily attendance] that   is reasonably attributable to the impact of the disaster.          (b)  The adjustment must be sufficient to ensure that the   district receives funding comparable to the funding that the   district would have received if the decline in average enrollment   [daily attendance] reasonably attributable to the impact of the   disaster had not occurred.          (c)  The commissioner may make the adjustment under this   section for the two-year period following the date of the   governor's initial proclamation or executive order declaring the   state of disaster.          (d)  Section 48.005(b)(2) does not apply to a district that   receives an adjustment under this section.          (e)  A district that receives an adjustment under this   section may not receive any additional adjustment under Section   48.005(d) for the decline in average enrollment [daily attendance]   on which the adjustment under this section is based.          (f)  For purposes of this title, a district's adjusted   average enrollment [daily attendance] under this section is   considered to be the district's average enrollment [daily   attendance] as determined under Section 48.005.          SECTION 2.46.  Sections 48.010(a) and (b), Education Code,   are amended to read as follows:          (a)  Not later than July 1 of each year, the commissioner   shall determine for each school district whether the estimated   amount of state and local funding per student in weighted average   enrollment [daily attendance] to be provided to the district under   the Foundation School Program for maintenance and operations for   the following school year is less than the amount provided to the   district for the 2010-2011 school year. If the amount estimated to   be provided is less, the commissioner shall certify the percentage   decrease in funding to be provided to the district.          (b)  In making the determinations regarding funding levels   required by Subsection (a), the commissioner shall:                (1)  make adjustments as necessary to reflect changes   in a school district's maintenance and operations tax rate;                (2)  for a district required to reduce its local   revenue level under Section 48.257, base the determinations on the   district's net funding levels after deducting any amounts required   to be expended by the district to comply with Chapter 49; and                (3)  determine a district's weighted average enrollment   [daily attendance] in accordance with this chapter as it existed on   January 1, 2011.          SECTION 2.47.  Sections 48.051(a) and (c), Education Code,   are amended to read as follows:          (a)  For each student in average enrollment [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 $7,365   [$6,160] or the amount that results from the following formula:   A = $7,365 [$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.          (c)  During any school year for which the maximum amount of   the basic allotment provided under Subsection (a) or (b) is greater   than the maximum amount provided for the preceding school year, a   school district must use at least 30 percent of the amount, if the   amount is greater than zero, that equals the product of the average   enrollment [daily attendance] of the district multiplied by the   amount of the difference between the district's funding under this   chapter per student in average enrollment [daily attendance] for   the current school year and the preceding school year to provide   compensation increases to full-time district employees other than   administrators as follows:                (1)  75 percent must be used to increase the   compensation paid to classroom teachers, full-time librarians,   full-time school counselors certified under Subchapter B, Chapter   21, and full-time school nurses, prioritizing differentiated   compensation for classroom teachers with more than five years of   experience; and                (2)  25 percent may be used as determined by the   district to increase compensation paid to full-time district   employees.          SECTION 2.48.  Sections 48.052(a) and (c), Education Code,   are amended to read as follows:          (a)  Notwithstanding Section 48.051, a school district that   has fewer than 130 students in average enrollment [daily   attendance] shall be provided a basic allotment on the basis of 130   students in average enrollment [daily attendance] if it offers a   kindergarten through grade 12 program and has preceding or current   year's average enrollment [daily attendance] of at least 90   students or is 30 miles or more by bus route from the nearest high   school district. A district offering a kindergarten through grade 8   program whose preceding or current year's average enrollment [daily   attendance] was at least 50 students or which is 30 miles or more by   bus route from the nearest high school district shall be provided a   basic allotment on the basis of 75 students in average enrollment   [daily attendance]. An average enrollment [daily attendance] of 60   students shall be the basis of providing the basic allotment if a   district offers a kindergarten through grade 6 program and has   preceding or current year's average enrollment [daily attendance]   of at least 40 students or is 30 miles or more by bus route from the   nearest high school district.          (c)  Notwithstanding Subsection (a) or Section 48.051, a   school district to which this subsection applies, as provided by   Subsection (b), that has fewer than 130 students in average   enrollment [daily attendance] shall be provided a basic allotment   on the basis of 130 students in average enrollment [daily   attendance] if it offers a kindergarten through grade four program   and has preceding or current year's average enrollment [daily   attendance] of at least 75 students or is 30 miles or more by bus   route from the nearest high school district.          SECTION 2.49.  Section 48.101, Education Code, is amended to   read as follows:          Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)   Small and mid-sized districts are entitled to an annual allotment   in accordance with this section. In this section:                (1)  "AA" is the district's annual allotment per   student in average enrollment [daily attendance];                (2)  "AE" ["ADA"] is the number of students in average   enrollment [daily attendance] for which the district is entitled to   an allotment under Section 48.051; and                (3)  "BA" is the basic allotment determined under   Section 48.051.          (b)  A school district that has fewer than 1,600 students in   average enrollment [daily attendance] is entitled to an annual   allotment for each student in average enrollment [daily attendance]   based on the following formula:   AA = ((1,600 - AE [ADA]) X .0004) X BA          (c)  A school district that offers a kindergarten through   grade 12 program and has less than 5,000 students in average   enrollment [daily attendance] is entitled to an annual allotment   for each student in average enrollment [daily attendance] based on   the formula, of the following formulas, that results in the   greatest annual allotment:                (1)  the formula in Subsection (b), if the district is   eligible for that formula; or                (2)  AA = ((5,000 - AE [ADA]) X .000025) X BA.          (d)  Instead of the allotment under Subsection (b) or (c)(1),   a school district that has fewer than 300 students in average   enrollment [daily attendance] and is the only school district   located in and operating in a county is entitled to an annual   allotment for each student in average enrollment [daily attendance]   based on the following formula:   AA = ((1,600 - AE [ADA]) X .00047) X BA          SECTION 2.50.  Sections 48.102(a) and (j), Education Code,   are amended to read as follows:          (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 1.15. For each full-time equivalent student in   average enrollment [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:                                  Homebound5.0                                  Hospital class3.0                                  Speech therapy5.0                                  Resource room3.0                                  Self-contained, mild and moderate,                                  regular campus3.0                                  Self-contained, severe,                                  regular campus3.0                                  Off home campus2.7                                  Nonpublic day school1.7                                  Vocational adjustment class2.3          (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 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.          SECTION 2.51.  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 2.52.  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)  1.1 for a full-time equivalent student in career   and technology education courses not in an approved program of   study;                (2)  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)  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 2.53.  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 2.54.  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 2.55.  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 2.56.  Section 48.115(a), Education Code, is amended   to read as follows:          (a)  Except as provided by Subsection (a-1), a school   district is entitled to an annual allotment equal to the sum of the   following amounts or a greater amount provided by appropriation:                (1)  $10 for each student in average enrollment [daily   attendance], plus $1 for each student in average enrollment [daily   attendance] per every $50 by which the district's maximum basic   allotment under Section 48.051 exceeds $7,365 [$6,160], prorated as   necessary; and                (2)  $15,000 per campus.          SECTION 2.57.  Section 48.118(a), Education Code, is amended   to read as follows:          (a)  For each full-time equivalent student in average   enrollment [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.          SECTION 2.58.  Sections 48.152(d) and (e), Education Code,   are amended to read as follows:          (d)  For the first school year in which students attend a new   instructional facility, a school district is entitled to an   allotment of $1,000 for each student in average enrollment [daily   attendance] at the facility. For the second school year in which   students attend that instructional facility, a school district is   entitled to an allotment of $1,000 for each additional student in   average enrollment [daily attendance] at the facility.          (e)  For purposes of this section, the number of additional   students in average enrollment [daily attendance] at a facility is   the difference between the number of students in average enrollment   [daily attendance] in the current year at that facility and the   number of students in average enrollment [daily attendance] at that   facility in the preceding year.          SECTION 2.59.  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 2.60.  Section 48.202(a), Education Code, is amended   to read as follows:          (a)  Each school district is guaranteed a specified amount   per weighted student in state and local funds for each cent of tax   effort over that required for the district's local fund assignment   up to the maximum level specified in this subchapter. The amount of   state support, subject only to the maximum amount under Section   48.203, is determined by the formula:   GYA = (GL X WAE [WADA] X DTR X 100) - LR   where:          "GYA" is the guaranteed yield amount of state funds to be   allocated to the district;          "GL" is the dollar amount guaranteed level of state and local   funds per weighted student per cent of tax effort, which is an   amount described by Subsection (a-1) or a greater amount for any   year provided by appropriation;          "WAE" ["WADA"] is the number of students in weighted average   enrollment [daily attendance], which is calculated by dividing the   sum of the school district's allotments under Subchapters B and C by   the basic allotment for the applicable year;          "DTR" is the district enrichment tax rate of the school   district, which is determined by subtracting the amounts specified   by Subsection (b) from the total amount of maintenance and   operations taxes collected by the school district for the   applicable school year and dividing the difference by the quotient   of the district's taxable value of property as determined under   Subchapter M, Chapter 403, Government Code, or, if applicable,   under Section 48.258 or by the quotient of the value of "DPV" as   determined under Section 48.256(d) if that subsection applies to   the district, divided by 100; and          "LR" is the local revenue, which is determined by multiplying   "DTR" by the quotient of the district's taxable value of property as   determined under Subchapter M, Chapter 403, Government Code, or, if   applicable, under Section 48.258 or by the quotient of the value of   "DPV" as determined under Section 48.256(d) if that subsection   applies to the district, divided by 100.          SECTION 2.61.  Section 48.252(b), Education Code, is amended   to read as follows:          (b)  Notwithstanding any other provision of this chapter or   Chapter 49, a school district subject to this section is entitled to   receive for each student in average enrollment [daily attendance]   at the campus or program described by Subsection (a) an amount   equivalent to the difference, if the difference results in   increased funding, between:                (1)  the amount described by Section 12.106; and                (2)  the amount to which the district would be entitled   under this chapter.          SECTION 2.62.  Section 48.2642(a), Education Code, is   amended to read as follows:          (a)  Notwithstanding any other provision of this chapter,   the commissioner shall count toward a school district's or   open-enrollment charter school's average enrollment [daily   attendance] under Section 48.005 each student who graduates early   from high school in the district or school under the Texas First   Early High School Completion Program established under Section   28.0253 for the period in which the student is enrolled at an   eligible institution using state credit awarded under the Texas   First Scholarship Program established under Subchapter K-1,   Chapter 56, based on a 100 percent attendance rate.          SECTION 2.63.  Section 48.273(a)(4), Education Code, is   amended to read as follows:                (4)  "Wealth per student" means the taxable property   values reported by the comptroller to the commissioner under   Section 48.256 divided by the number of students in average   enrollment [daily attendance].          SECTION 2.64.  Section 48.277(a), Education Code, is amended   to read as follows:          (a)  A school district or open-enrollment charter school is   entitled to receive an annual allotment for each student in average   enrollment [daily attendance] in the amount equal to the   difference, if the difference is greater than zero, that results   from subtracting the total maintenance and operations revenue per   student in average enrollment [daily attendance] for the current   school year from the lesser of:                (1)  103 percent of the district's or school's total   maintenance and operations revenue per student in average   enrollment [daily attendance] for the 2019-2020 school year that   the district or school would have received under former Chapters 41   and 42, as those chapters existed on January 1, 2019; or                (2)  128 percent of the statewide average amount of   maintenance and operations revenue per student in average   enrollment [daily attendance] that would have been provided for the   2019-2020 school year under former Chapters 41 and 42, as those   chapters existed on January 1, 2019.          SECTION 2.65.  Section 49.001(2), Education Code, is amended   to read as follows:                (2)  "Weighted average enrollment [daily attendance]"   has the meaning assigned by Section 48.202.          SECTION 2.66.  Section 49.002, Education Code, is amended to   read as follows:          Sec. 49.002.  OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A   district with a local revenue level in excess of entitlement may   take any combination of the following actions to reduce the   district's revenue level:                (1)  consolidation with another district as provided by   Subchapter B;                (2)  detachment of territory as provided by Subchapter   C;                (3)  purchase of average enrollment [daily attendance]   credit as provided by Subchapter D;                (4)  education of nonresident students as provided by   Subchapter E; or                (5)  tax base consolidation with another district as   provided by Subchapter F.          SECTION 2.67.  Section 49.003, Education Code, is amended to   read as follows:          Sec. 49.003.  INCLUSION OF ATTENDANCE CREDIT AND   NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In   determining whether a school district has a local revenue level in   excess of entitlement, the commissioner shall use:                (1)  the district's final weighted average enrollment   [daily attendance]; and                (2)  the amount of attendance credit a district   purchases under Subchapter D or the number of nonresident students   a district educates under Subchapter E for a school year.          SECTION 2.68.  Section 49.158(a), Education Code, is amended   to read as follows:          (a)  Sections 49.154 and 49.157 apply only to a district   that:                (1)  executes an agreement to purchase attendance   credit necessary to reduce the district's local revenue level to   the level established under Section 48.257;                (2)  executes an agreement to purchase attendance   credit and an agreement under Subchapter E to contract for the   education of nonresident students who transfer to and are educated   in the district but who are not charged tuition; or                (3)  executes an agreement under Subchapter E to   contract for the education of nonresident students:                      (A)  to an extent that does not provide more than   10 percent of the reduction in local revenue required for the   district to achieve a local revenue level that is equal to or less   than the level established under Section 48.257; and                      (B)  under which all revenue paid by the district   to other districts, in excess of the reduction in state aid that   results from counting the weighted average enrollment [daily   attendance] of the students served in the contracting district, is   required to be used for funding a consortium of at least three   districts in a county with a population of less than 40,000 that is   formed to support a technology initiative.          SECTION 2.69.  Section 49.201, Education Code, is amended to   read as follows:          Sec. 49.201.  AGREEMENT. The board of trustees of a   district with a local revenue level in excess of entitlement may   execute an agreement to educate the students of another district in   a number that, when the weighted average enrollment [daily   attendance] of the students served is added to the weighted average   enrollment [daily attendance] of the contracting district, is   sufficient, in combination with any other actions taken under this   chapter, to reduce the district's local revenue level to a level   that is equal to or less than the level established under Section   48.257. The agreement is not effective unless the commissioner   certifies that the transfer of weighted average enrollment [daily   attendance] will not result in any of the contracting districts'   local revenue level being greater than the level established under   Section 48.257 and that the agreement requires an expenditure per   student in weighted average enrollment [daily attendance] that is   at least equal to the amount per student in weighted average   enrollment [daily attendance] required under Section 49.153.          SECTION 2.70.  Section 49.203, Education Code, is amended to   read as follows:          Sec. 49.203.  WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For   purposes of Chapter 48, students served under an agreement under   this subchapter are counted only in the weighted average enrollment   [daily attendance] of the district providing the services, except   that students served under an agreement authorized by Section   49.205 are counted in a manner determined by the commissioner.          SECTION 2.71.  Section 49.257(b), Education Code, is amended   to read as follows:          (b)  Each component district shall bear a share of the costs   of assessing and collecting taxes in proportion to the component   district's share of weighted average enrollment [daily attendance]   in the consolidated taxing district.          SECTION 2.72.  Section 49.258, Education Code, is amended to   read as follows:          Sec. 49.258.  REVENUE DISTRIBUTION. The consolidated taxing   district shall distribute maintenance tax revenue to the component   districts on the basis of the number of students in weighted average   enrollment [daily attendance] in the component districts.          SECTION 2.73.  Sections 49.305(c) and (d), Education Code,   are amended to read as follows:          (c)  If the detachment of whole parcels or items of property   as provided by Subsection (a) would result in a district's local   revenue level that is less than the level established under Section   48.257 by more than the product of $10,000 multiplied by weighted   average enrollment [daily attendance], the commissioner may not   detach the last parcel or item of property and shall detach the next   one or more parcels or items of property in descending order of   taxable value that would result in the school district having a   local revenue level that is equal to or less than the level   established under Section 48.257 by not more than the product of   $10,000 multiplied by weighted average enrollment [daily   attendance].          (d)  Notwithstanding Subsections (a), (b), and (c), the   commissioner may detach only a portion of a parcel or item of   property if:                (1)  it is not possible under this subchapter to reduce   the district's local revenue level to a level that is equal to or   less than the level established under Section 48.257 unless some or   all of the parcel or item of property is detached and the detachment   of the whole parcel or item would result in the district from which   it is detached having a local revenue level that is less than the   level established under Section 48.257 by more than the product of   $10,000 multiplied by weighted average enrollment [daily   attendance]; or                (2)  the commissioner determines that a partial   detachment of that parcel or item of property is preferable to the   detachment of one or more other parcels or items having a lower   taxable value in order to minimize the number of parcels or items of   property to be detached consistent with the purposes of this   chapter.          SECTION 2.74.  Section 49.306(i), Education Code, is amended   to read as follows:          (i)  The commissioner may order the annexation of a portion   of a parcel or item of property, including a portion of property   treated as a whole parcel or item under Subsection (h), if:                (1)  the annexation of the whole parcel or item would   result in the district eligible to receive it in the appropriate   priority order provided by this section having a local revenue   level greater than the amount by which the product of $10,000   multiplied by weighted average enrollment [daily attendance]   exceeds the taxable value of property necessary to generate   maintenance and operations tax revenue in the amount equal to the   district's entitlement under Section 48.202(a-1)(2); or                (2)  the commissioner determines that annexation of   portions of the parcel or item would reduce disparities in district   taxable values of property necessary to generate maintenance and   operations tax revenue in the amount equal to a district's   entitlement under Section 48.202(a-1)(2) more efficiently than   would be possible if the parcel or item were annexed as a whole.          SECTION 2.75.  Section 49.311, Education Code, is amended to   read as follows:          Sec. 49.311.  STUDENT ATTENDANCE. A student who is a   resident of real property detached from a school district may   choose to attend school in that district or in the district to which   the property is annexed. For purposes of determining average   enrollment [daily attendance] under Section 48.005, the student   shall be counted in the district to which the property is annexed.   If the student chooses to attend school in the district from which   the property is detached, the state shall withhold any foundation   school funds from the district to which the property is annexed and   shall allocate to the district in which the student is attending   school those funds and the amount of funds equal to the difference   between the state funds the district is receiving for the student   and the district's cost in educating the student.          SECTION 2.76.  Section 49.354(e), Education Code, is amended   to read as follows:          (e)  A restored district's proportionate share of fund   balances, personal property, or indebtedness is equal to the   proportion that the number of students in average enrollment [daily   attendance] in the restored district bears to the number of   students in average enrollment [daily attendance] in the   consolidated district.          SECTION 2.77.  Section 403.104(d), Government Code, is   amended to read as follows:          (d)  The proportionate share of an independent school   district is determined by multiplying the total amount of the   payment available for distribution to school districts by the ratio   that the average number of [daily attendance for] students who   reside in the county and are enrolled in [who attend] that school   district bears to the average number of [daily attendance for] all   students who reside in the county and are enrolled in [who attend]   any independent school district. However, if there are fewer than   10 independent school districts located in whole or part in the   county and if an independent school district would receive under   this formula less than 10 percent of the total payment available for   distribution to independent school districts, the school   district's share shall be increased to 10 percent of the total   payment and the shares of the school districts that would receive   more than 10 percent under the formula shall be reduced   proportionately, but not to an amount less than 10 percent of the   total payment. [Each independent school district shall develop a   reasonable method for determining the average daily attendance for   students who reside in the county and who attend the school   district.]          SECTION 2.78.  Section 1371.001(4), Government Code, is   amended to read as follows:                (4)  "Issuer" means:                      (A)  a home-rule municipality that:                            (i)  adopted its charter under Section 5,   Article XI, Texas Constitution;                            (ii)  has a population of 50,000 or more; and                            (iii)  has outstanding long-term   indebtedness that is rated by a nationally recognized rating agency   for municipal securities in one of the four highest rating   categories for a long-term obligation;                      (B)  a conservation and reclamation district   created and organized as a river authority under Section 52,   Article III, or Section 59, Article XVI, Texas Constitution;                      (C)  a joint powers agency organized and operating   under Chapter 163, Utilities Code;                      (D)  a metropolitan rapid transit authority,   regional transportation authority, or coordinated county   transportation authority created, organized, or operating under   Chapter 451, 452, or 460, Transportation Code;                      (E)  a conservation and reclamation district   organized or operating as a navigation district under Section 52,   Article III, or Section 59, Article XVI, Texas Constitution;                      (F)  a district organized or operating under   Section 59, Article XVI, Texas Constitution, that has all or part of   two or more municipalities within its boundaries;                      (G)  a state agency, including a state institution   of higher education;                      (H)  a hospital authority created or operating   under Chapter 262 or 264, Health and Safety Code, in a county that:                            (i)  has a population of more than 3.3   million; or                            (ii)  is included, in whole or in part, in a   standard metropolitan statistical area of this state that includes   a county with a population of more than 2.5 million;                      (I)  a hospital district in a county that has a   population of more than 2.5 million;                      (J)  a nonprofit corporation organized to   exercise the powers of a higher education loan authority under   Section 53B.47(e), Education Code;                      (K)  a county:                            (i)  that has a population of more than 3.3   million; or                            (ii)  that, on the date of issuance of   obligations under this chapter, has authorized, outstanding, or any   combination of authorized and outstanding, indebtedness of at least   $100 million secured by and payable from the county's ad valorem   taxes and the authorized long-term indebtedness of which is rated   by a nationally recognized rating agency of securities issued by   local governments in one of the four highest rating categories for a   long-term obligation;                      (L)  an independent school district that has an   average enrollment [daily attendance] of 50,000 or more as   determined under Section 48.005, Education Code;                      (M)  a municipality or county operating under   Chapter 334, Local Government Code;                      (N)  a district created under Chapter 335, Local   Government Code;                      (O)  a junior college district that has a total   headcount enrollment of 40,000 or more based on enrollment in the   most recent regular semester; or                      (P)  an issuer, as defined by Section 1201.002,   that has:                            (i)  a principal amount of at least $100   million in outstanding long-term indebtedness, in long-term   indebtedness proposed to be issued, or in a combination of   outstanding or proposed long-term indebtedness; and                            (ii)  some amount of long-term indebtedness   outstanding or proposed to be issued that is rated in one of the   four highest rating categories for long-term debt instruments by a   nationally recognized rating agency for municipal securities,   without regard to the effect of any credit agreement or other form   of credit enhancement entered into in connection with the   obligation.          SECTION 2.79.  Section 1431.001(3), Government Code, is   amended to read as follows:                (3)  "Eligible school district" means an independent   school district that has an average enrollment [daily attendance]   of 190,000 or more as determined under Section 48.005, Education   Code.          SECTION 2.80.  Section 325.011(a), Local Government Code, is   amended to read as follows:          (a)  The district is governed by a board of directors   composed of five members, with two directors appointed by the   commissioners court of the county, two directors appointed by the   governing body of the municipality having the largest population in   the county, and one director appointed by the governing body of the   school district with the largest number of students in average   enrollment [daily attendance] in the county. The board shall   manage the district and administer this chapter.          SECTION 2.81.  Section 313.027(i), Tax Code, is amended to   read as follows:          (i)  A person and the school district may not enter into an   agreement under which the person agrees to provide supplemental   payments to a school district or any other entity on behalf of a   school district in an amount that exceeds an amount equal to the   greater of $100 per student per year in average enrollment [daily   attendance], as defined by Section 48.005, Education Code, or   $50,000 per year, or for a period that exceeds the period beginning   with the period described by Section 313.021(4) and ending December   31 of the third tax year after the date the person's eligibility for   a limitation under this chapter expires. This limit does not apply   to amounts described by Subsection (f)(1) or (2).          SECTION 2.82.  Section 1, Article 2688d, Vernon's Texas   Civil Statutes, is amended to read as follows:          Section 1. In all counties of the State where, according to   the preceding annual statistical report of the schools said county   has not more than four (4) school districts, with one (1) of such   districts comprising more than half of the county and having more   than two thousand (2,000) pupils in average enrollment [daily   attendance] in the one (1) district alone, and such district having   an assessed valuation of more than Twenty Million Dollars   ($20,000,000) and where there is only one (1) common school   district in such county with an average enrollment [daily   attendance] of less than sixteen (16), the office of county   superintendent is hereby abolished, to be effective at the end of   the term of the incumbent county superintendent, as is now provided   by law.          SECTION 2.83.  The following provisions of the Education   Code are repealed:                (1)  Section 29.0822(d-1); and                (2)  Section 48.007.   ARTICLE 3. SERVICE-BASED INTENSITY FUNDING FORMULA FOR SPECIAL   EDUCATION          SECTION 3.01.  Effective September 1, 2024, 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].          (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. [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)  [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 3.02.  Effective September 1, 2024, Subchapter C,   Chapter 48, Education Code, is amended by adding Section 48.1021 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.          SECTION 3.03.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.1022 and 48.1023 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.          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 3.04.  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 3.05.  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.   ARTICLE 4. SCHOOL SAFETY ALLOTMENT          SECTION 4.01.  Section 48.115(a), Education Code, is amended   to read as follows:          Sec. 48.115. SCHOOL SAFETY ALLOTMENT. (a) Except as   provided by Subsection (a-1), a school district is entitled to an   annual allotment equal to the sum of the following amounts or a   greater amount provided by appropriation:          (1) $100 [$10] for each enrolled student [in average daily   attendance, plus $1 for each student in average daily attendance   per every $50 by which the district's maximum basic allotment under   Section 48.051 exceeds $6,160, prorated as necessary]; and          (2) $15,000 per campus.   ARTICLE 5. MENTAL HEALTH ALLOTMENT          SECTION 5.01.  Section 48.115(b), Education Code, is amended   to read as follows:          (b)  Funds allocated under this section must be used to   improve school safety and security, including costs associated   with:                      (1)  securing school facilities, including:                                  (A)  improvements to school   infrastructure;                                  (B)  the use or installation of   physical barriers; and                                  (C)  the purchase and maintenance of:                                              (i)  security cameras or   other security equipment; and                                              (ii)  technology, including   communications systems or devices, that   facilitates communication and information sharing   between students, school personnel, and first   responders in an emergency;                      (2)  providing security for the district,   including:                                  (A)  employing school district peace   officers, private security officers, and school   marshals; and                                  (B)  collaborating with local law   enforcement agencies, such as entering into a   memorandum of understanding for the assignment of   school resource officers to schools in the district;   and                      (3)  school safety and security training and   planning, including:                                  (A)  active shooter and emergency   response training;                                  (B)  prevention and treatment programs   relating to addressing adverse childhood experiences;   and                                  (C)  the prevention, identification,   and management of emergencies and threats, using   evidence-based, effective prevention practices and   including the establishment of [:                                              (i)  providing licensed   counselors, social workers, and individuals   trained in restorative discipline and restorative   justice practices;                                              (ii)  providing mental   health personnel and support;                                              (iii)  providing behavioral   health services;                                              (iv)  establishing] threat   reporting systems; and                                              (v)  developing and   implementing programs focused on restorative   justice practices, culturally relevant   instruction, and providing mental health support;   and                      (4)  providing programs related to suicide   prevention, intervention, and postvention].          SECTION 5.02.  Subchapter C, Chapter 48, Education Code, is   amended by adding Section 48.117 to read as follows:          Sec. 48.117.  MENTAL HEALTH ALLOTMENT. (a) A school   district is entitled to an annual allotment of $100,000 or a greater   amount provided by appropriation to support mental health services   at the district.          (b)  In addition to the allotment under Subsection (a), a   school district that receives an allotment under Section 48.101 or   at which more than 50 percent of enrolled students are   educationally disadvantaged is entitled to an allotment for each   student enrolled in the district in an amount provided by   appropriation.          (c)  Funds allocated under this section:          (1)  must be used to develop or enhance a comprehensive   school mental health system that, through the implementation of   programs, practices, and procedures in accordance with Section   38.351, provides a tiered array of supports and services in the   educational setting that contribute to:          (A)  a positive school climate;          (B)  the development of skills related to managing emotions,   establishing and maintaining positive relationships, and   responsible decision-making;          (C)  the learning and well-being of students with or at risk   of mental health or substance use conditions;          (D)  family and community engagement;          (E)  reduced exclusionary discipline practices; and          (F)  staff wellness; and          (2)  may be used to pay for costs associated with:          (A)  the salary of school personnel responsible for   planning, coordinating, delivering, or monitoring supports and   services described by Subdivision (1);          (B)  training school personnel regarding effective practices   and district and campus procedures to support student mental   health;          (C)  a contract-based collaborative effort or partnership   with one or more local community programs, agencies, or providers;   and          (D)  developing and implementing programs focused on   restorative justice practices.          (d)  Funds allocated for purposes of this section may not be   used to supplant any other funds that may be provided for the same   purpose.          (e)  Not later than June 1 of each year and in accordance with   commissioner rule, each school district shall submit to the   commissioner information regarding the outcomes and expenditures   related to funds allocated to the district under this section.          (f)  Not later than September 1 of each year, the   commissioner shall publish a report regarding the use of funds   allocated under this section during the preceding school year,   including information regarding the programs, personnel, and   resources implemented, employed, or purchased by school districts   using the funds and other purposes for which the funds were used.   ARTICLE 6. PAID PARENTAL LEAVE ALLOTMENT          SECTION 6.01.  Subchapter A, Chapter 22, Education Code, is   amended by adding Section 22.0035 to read as follows:          Sec. 22.0035.  PAID PARENTAL LEAVE POLICY. (a) Each school   district or open-enrollment charter school shall adopt a paid   parental leave policy under which a full-time employee of the   district or school is entitled to paid parental leave following   the:                      (1)  birth of a child;                      (2)  birth of a child by the employee's spouse;                      (3)  birth of a child by a gestational surrogate;   or                      (4)  adoption of a child.          (b)  A paid parental leave policy described by Subsection   (a):                      (1)  must provide:                                  (A)  eight consecutive weeks of paid   parental leave for an employee who is the primary   caregiver of the child; or                                  (B)  four consecutive weeks of paid   parental leave for an employee who is the spouse of the   primary caregiver of the child;                      (2)  must require that:                                  (A)  an employee be employed on a   full-time basis by the school district or   open-enrollment charter school for at least 12 months   before becoming eligible for paid parental leave;                                  (B)  an employee's eligibility for paid   parental leave expires on the six-month anniversary of   the date of the child's birth or placement with the   employee; and                                  (C)  an employee who has been granted   paid parental leave under the policy take the leave   concurrently with leave for which the employee is   eligible under the federal Family and Medical Leave Act   of 1993 (29 U.S.C. Section 2601 et seq.); and                      (3)  may not require an employee to first use all   available and applicable paid vacation and sick leave before   taking paid parental leave under the policy.          (c)  Not later than November 1 of each even-numbered year,   the agency shall prepare and submit to the legislature a report on   paid parental leave provided under a policy required by this   section. The report must include:                      (1)  the number of employees who took paid   parental leave under a policy required by this section during   the preceding two years, disaggregated by school district and   open-enrollment charter school;                      (2)  the costs of providing paid parental leave   under a policy required by this section during the preceding   two years;                      (3)  projections regarding future participation   in and costs of paid parental leave provided under a policy   required by this section; and                      (4)  any recommendations for legislative or other   action.          SECTION 6.02.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.158 to read as follows:          Sec. 48.158.  HEALTHY FAMILIES ALLOTMENT. For each employee   who received paid parental leave under a policy required by Section   22.0035 during the preceding school year, a school district is   entitled to an annual allotment equal to the amount of the   employee's compensation for the period for which the employee   received paid parental leave under that policy.          SECTION 6.03.  As soon as practicable after the effective   date of this Act and not later than September 1, 2024, the board of   trustees of a school district or the governing body of an   open-enrollment charter school shall adopt the paid parental leave   policy required by Section 22.0035, Education Code, as added by   this Act.   ARTICLE 7. UNIVERSAL PRE-KINDERGARTEN          SECTION 7.01.  Sections 29.153(a-1), (b), (c), (d), and (f),   Education Code, are amended to read as follows:          (a-1)  A district shall offer prekindergarten classes to any   child [if the district identifies 15 or more children] who is [are   eligible under Subsection (b) and are] at least four years of age.   A school district may offer prekindergarten classes if the district   identifies 15 or more [eligible] children who are eligible under   Subsection (b)(1) [at least three years of age]. A district may not   charge tuition for a prekindergarten class offered under this   section.          (b)  A child is eligible for enrollment in a prekindergarten   class under this section if the child is:                      (1)  at least three years of age and:                                  (A) [(1)]  is unable to speak and   comprehend the English language;                                  (B) [(2)]  is educationally   disadvantaged;                                  (C) [(3)]  is homeless, regardless of   the residence of the child, of either parent of the   child, or of the child's guardian or other person having   lawful control of the child;                                  (D) [(4)]  is the child of an active   duty member of the armed forces of the United States,   including the state military forces or a reserve   component of the armed forces, who is ordered to active   duty by proper authority;                                  (E) [(5)]  is the child of a member of   the armed forces of the United States, including the   state military forces or a reserve component of the   armed forces, who was injured or killed while serving on   active duty;                                  (F) [(6)]  is or ever has been in:                                              (i) [(A)] the   conservatorship of the Department of Family and   Protective Services following an adversary   hearing held as provided by Section 262.201,   Family Code; or                                              (ii) [(B)] foster care in   another state or territory, if the child resides   in this state; or                                  (G) [(7)] is the child of a person   eligible for the Star of Texas Award as:                                                    (i) [(A)]  a peace   officer under Section 3106.002, Government   Code;                                              (ii) [(B)]  a firefighter   under Section 3106.003, Government Code; or                                              (iii) [(C)]  an emergency   medical first responder under Section 3106.004,   Government Code; or                      (2)  at least four years of age.          (c)  A prekindergarten class under this section [may be   operated on a half-day basis for children under four years of age   and] shall be operated on a full-day basis [for children who are at   least four years of age]. A district is not required to provide   transportation for a prekindergarten class, but transportation, if   provided, is included for funding purposes as part of the regular   transportation system.          (d)  Subject to Subsections (d-1) and (d-2), on application   of a district, the commissioner shall exempt a district from the   application of all or any part of this section, including all or any   part of Subchapter E-1 for a prekindergarten class described by   Subsection (c-1), if the commissioner determines that[:                      [(1)]  the district would be required to construct   classroom facilities in order to provide prekindergarten   classes[; or                      [(2)  implementing any part of this section would   result in fewer eligible children being enrolled in a   prekindergarten class under this section].          (f)  A child who is eligible for enrollment in a   prekindergarten class under Subsection (b)(1)(D) or (E) [(b)(4) or   (5)] remains eligible for enrollment if the child's parent leaves   the armed forces, or is no longer on active duty, after the child   begins a prekindergarten class.          SECTION 7.02.  Section 29.1531(a), Education Code, is   amended to read as follows:          (a)  A school district may offer on a tuition basis or use   district funds to provide[:                      [(1)  an additional half-day of prekindergarten   classes to children who are eligible for classes under   Section 29.153 and are under four years of age; and                      [(2)]  half-day and full-day prekindergarten   classes to children not eligible for classes under Section   29.153.          SECTION 7.03.  Section 29.1532(c), Education Code, is   amended to read as follows:          (c)  A school district that offers prekindergarten classes   shall include the following information in the district's Public   Education Information Management System (PEIMS) report:                      (1)  demographic information, as determined by   the commissioner, on students enrolled in district and campus   prekindergarten classes, including the number of students   who are eligible for classes under Sections 29.153(b)(1) and   (f) [Section 29.153];                      (2)  the numbers of half-day and full-day   prekindergarten classes offered by the district and campus;                      (3)  the number of half-day prekindergarten   classes for which the district has received an exemption from   full-day operation under Section 29.153(d);                      (4)  the sources of funding for the   prekindergarten classes;                      (5)  the class size and ratio of instructional   staff to students for each prekindergarten program class   offered by the district and campus;                      (6)  if the district elects to administer an   assessment instrument under Section 29.169 to students   enrolled in district and campus prekindergarten program   classes, a description and the results of each type of   assessment instrument; and                      (7)  curricula used in the district's   prekindergarten program classes.   ARTICLE 8. EFFECTIVE DATE          SECTION 8.01.  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 February 1, 2024.          SECTION 8.02.  This Act applies beginning with the 2024-2025   school year.