88S30762 MM-D     By: Buckley H.B. No. 1       A BILL TO BE ENTITLED   AN ACT   relating to primary and secondary education, including the   certification, compensation, and health coverage of certain public   school employees, the public school finance system, special   education in public schools, the establishment of an education   savings account program, measures to support the education of   public school students that include certain educational grant   programs, reading instruction, and early childhood education, the   provision of virtual education, and public school accountability.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. CHANGES RELATED TO PUBLIC SCHOOL EDUCATORS EFFECTIVE FOR   2024-2025 SCHOOL YEAR          SECTION 1.01.  Section 19.009(d-2), Education Code, is   amended to read as follows:          (d-2)  Beginning with the 2009-2010 school year, the   district shall increase the [monthly] salary of each classroom   teacher, full-time speech pathologist, full-time librarian,   full-time school counselor certified under Subchapter B, Chapter   21, and full-time school nurse employed by the district by the   greater of:                (1)  $80 per month; or                (2)  the maximum uniform amount per month that, when   combined with any resulting increases in the amount of   contributions made by the district for social security coverage for   the specified employees or by the district on behalf of the   specified employees under Section 825.405, Government Code, may be   provided using an amount equal to the product of $60 multiplied by   the number of students in weighted average daily attendance in the   district during the 2009-2010 school year.          SECTION 1.02.  Subchapter A, Chapter 21, Education Code, is   amended by adding Section 21.010 to read as follows:          Sec. 21.010.  TEACHER POSITION DATA COLLECTION. The agency   shall collect data from school districts and open-enrollment   charter schools for the recruitment and retention of classroom   teachers, including the classification, grade level, subject area,   duration, and other relevant information regarding vacant teaching   positions in a district or school. The data may be collected using   the Public Education Information Management System (PEIMS) or   another reporting mechanism specified by the agency.          SECTION 1.03.  Subchapter B, Chapter 21, Education Code, is   amended by adding Section 21.0411 to read as follows:          Sec. 21.0411.  WAIVER OR PAYMENT OF CERTAIN EXAMINATION AND   CERTIFICATION FEES. (a) Notwithstanding a rule adopted under   Section 21.041(c), the board shall, for a person applying for a   certification to teach established under this subchapter, waive:                (1)  a certification examination fee imposed by the   board for the first administration of the examination to the   person; and                (2)  a fee associated with the application for   certification by the person.          (b)  The board shall pay to a vendor that administers a   certification examination required for certification to teach   under this subchapter a fee assessed by that vendor for the   examination of a person applying for a certification to teach   established under this subchapter for the first administration of   the examination to the person.          SECTION 1.04.  Section 21.054, Education Code, is amended by   amending Subsections (a) and (i) and adding Subsection (i-1) to   read as follows:          (a)  The board shall propose rules establishing a process for   identifying continuing education courses and programs that fulfill   educators' continuing education requirements, including   opportunities for educators to receive micro-credentials, as   provided by Subsection (i), in:                (1)  fields of study related to the educator's   certification class; or                (2)  digital teaching [as provided by Subsection (i)].          (i)  The board shall propose rules establishing a program to   issue micro-credentials in fields of study related to an educator's   certification class or in digital teaching. The agency shall   approve continuing education providers to offer micro-credential   courses. A micro-credential received by an educator shall be   recorded on the agency's Educator Certification Online System   (ECOS) and included as part of the educator's public certification   records.          (i-1)  In proposing rules under Subsection (i) for   micro-credentials related to digital teaching, the board shall   engage relevant stakeholders.           SECTION 1.05.  Section 21.105, Education Code, is amended by   amending Subsection (c) and adding Subsection (g) to read as   follows:          (c)  Subject to Subsections (e), [and] (f), and (g), on   written complaint by the employing district, the State Board for   Educator Certification may impose sanctions against a teacher   employed under a probationary contract who:                (1)  resigns;                (2)  fails without good cause to comply with Subsection   (a) or (b); and                (3)  fails to perform the contract.          (g)  The State Board for Educator Certification may not   impose a sanction under Subsection (c) against a teacher who   relinquishes a position under a probationary contract and leaves   the employment of the district after the 45th day before the first   day of instruction for the upcoming school year in violation of   Subsection (a) and without the consent of the board of trustees   under Subsection (b) if the teacher's failure to comply with   Subsection (a) was due to:                (1)  a serious illness or health condition of the   teacher or a close family member of the teacher;                (2)  the teacher's relocation because the teacher's   spouse or a partner who resides with the teacher changes employers;                (3)  a significant change in the needs of the teacher's   family in a manner that requires the teacher to:                      (A)  relocate; or                       (B)  forgo employment during a period of required   employment under the teacher's contract; or                (4)  the teacher's reasonable belief that the teacher   had written permission from the school district's administration to   resign.          SECTION 1.06.  Section 21.160, Education Code, is amended by   amending Subsection (c) and adding Subsection (g) to read as   follows:          (c)  Subject to Subsections (e), [and] (f), and (g), on   written complaint by the employing district, the State Board for   Educator Certification may impose sanctions against a teacher who   is employed under a continuing contract that obligates the district   to employ the person for the following school year and who:                (1)  resigns;                (2)  fails without good cause to comply with Subsection   (a) or (b); and                (3)  fails to perform the contract.          (g)  The State Board for Educator Certification may not   impose a sanction under Subsection (c) against a teacher who   relinquishes a position under a continuing contract and leaves the   employment of the district after the 45th day before the first day   of instruction of the upcoming school year in violation of   Subsection (a) and without the consent of the board of trustees   under Subsection (b) if the teacher's failure to comply with   Subsection (a) was due to:                (1)  a serious illness or health condition of the   teacher or a close family member of the teacher;                (2)  the teacher's relocation because the teacher's   spouse or a partner who resides with the teacher changes employers;                (3)  a significant change in the needs of the teacher's   family in a manner that requires the teacher to:                      (A)  relocate; or                       (B)  forgo employment during a period of required   employment under the teacher's contract; or                (4)  the teacher's reasonable belief that the teacher   had written permission from the school district's administration to   resign.          SECTION 1.07.  Section 21.210, Education Code, is amended by   amending Subsection (c) and adding Subsection (g) to read as   follows:          (c)  Subject to Subsections (e), [and] (f), and (g), on   written complaint by the employing district, the State Board for   Educator Certification may impose sanctions against a teacher who   is employed under a term contract that obligates the district to   employ the person for the following school year and who:                (1)  resigns;                (2)  fails without good cause to comply with Subsection   (a) or (b); and                (3)  fails to perform the contract.          (g)  The State Board for Educator Certification may not   impose a sanction under Subsection (c) against a teacher who   relinquishes a position under a term contract and leaves the   employment of the district after the 45th day before the first day   of instruction of the upcoming school year in violation of   Subsection (a) and without the consent of the board of trustees   under Subsection (b) if the teacher's failure to comply with   Subsection (a) was due to:                (1)  a serious illness or health condition of the   teacher or a close family member of the teacher;                (2)  the teacher's relocation because the teacher's   spouse or a partner who resides with the teacher changes employers;                (3)  a significant change in the needs of the teacher's   family in a manner that requires the teacher to:                      (A)  relocate; or                       (B)  forgo employment during a period of required   employment under the teacher's contract; or                (4)  the teacher's reasonable belief that the teacher   had written permission from the school district's administration to   resign.          SECTION 1.08.  Section 21.257, Education Code, is amended by   amending Subsection (a) and adding Subsection (f) to read as   follows:          (a)  Except as provided by Subsection (f), not [Not] later   than the 60th day after the date on which the commissioner receives   a teacher's written request for a hearing, the hearing examiner   shall complete the hearing and make a written recommendation that:                (1)  includes proposed findings of fact and conclusions   of law; and                (2)  may include a proposal for granting relief.          (f)  The hearing examiner may dismiss a hearing before   completing the hearing or making a written recommendation if:                (1)  the teacher requests the dismissal;                (2)  the school district withdraws the proposed   decision that is the basis of the hearing; or                (3)  the teacher and school district request the   dismissal after reaching a settlement regarding the proposed   decision that is the basis of the hearing.          SECTION 1.09.  Sections 21.3521(a), (c), and (e), Education   Code, are amended to read as follows:          (a)  Subject to Subsection (b), a school district or   open-enrollment charter school may designate a classroom teacher as   a master, exemplary, [or] recognized, or acknowledged teacher for a   five-year period based on the results from single year or multiyear   appraisals that comply with Section 21.351 or 21.352.          (c)  Notwithstanding performance standards established   under Subsection (b), a classroom teacher that holds a National   Board Certification issued by the National Board for Professional   Teaching Standards may be designated as nationally board certified   [recognized].          (e)  The agency shall develop and provide technical   assistance for school districts and open-enrollment charter   schools that request assistance in implementing a local optional   teacher designation system, including:                (1)  providing assistance in prioritizing high needs   campuses;                (2)  providing examples or models of local optional   teacher designation systems to reduce the time required for a   district or school to implement a teacher designation system;                (3)  establishing partnerships between districts and   schools that request assistance and districts and schools that have   implemented a teacher designation system;                (4)  applying the performance and validity standards   established by the commissioner under Subsection (b);                (5)  providing centralized support for the analysis of   the results of assessment instruments administered to district   students; and                (6)  facilitating effective communication on and   promotion of local optional teacher designation systems.          SECTION 1.10.  Subchapter H, Chapter 21, Education Code, is   amended by adding Section 21.3522 to read as follows:          Sec. 21.3522.  LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM   GRANT PROGRAM.  (a)  From funds appropriated or otherwise   available for the purpose, the agency shall establish and   administer a grant program to provide money and technical   assistance to:                (1)  expand implementation of local optional teacher   designation systems under Section 21.3521; and                (2)  increase the number of classroom teachers eligible   for a designation under that section.          (b)  A grant awarded under this section must:                (1)  meet the needs of individual school districts; and                (2)  enable regional leadership capacity.          (c)  The commissioner may adopt rules to establish and   administer the grant program under this section.          SECTION 1.11.  Section 21.402, Education Code, is amended by   amending Subsections (a) and (g) and adding Subsections (a-1),   (c-2), (i), (j), and (k) to read as follows:          (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a   school district must pay each employee who is employed as a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse not less   than the highest annual minimum [minimum monthly] salary described   by the following schedule applicable to [, based on] the employee's   certification, if any, and years [level] of experience:                (1)  for an employee with less than five years of   experience who:                      (A)  holds no certification  $35,000;                      (B)  holds a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $37,000;                      (C)  holds the base certificate required under   Section 21.003(a) for employment in the employee's position other   than a certificate described by Paragraph (B)  $40,000;                      (D)  holds a designation under Section 21.3521     $43,000; or                      (E)  holds a residency educator certificate or has   successfully completed a residency partnership program under   Subchapter R $43,000;                (2)  for an employee with at least five years of   experience who holds:                      (A)  no certification  $45,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $47,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's position other than a   certificate described by Paragraph (B)  $50,000; or                      (D)  a designation under Section 21.3521     $53,000; or                (3)  for an employee with at least 10 years of   experience who holds:                      (A)  no certification  $55,000;                      (B)  a teacher intern, teacher trainee, or   probationary certificate issued under Subchapter B  $57,000;                      (C)  the base certificate required under Section   21.003(a) for employment in the employee's   position . . .. $60,000; or                      (D)  a designation under Section 21.3521   $63,000 [in addition to other factors, as determined by   commissioner rule, determined by the following formula:   [MS = SF x FS   [where:          ["MS" is the minimum monthly salary;          ["SF" is the applicable salary factor specified by Subsection   (c); and          ["FS" is the amount, as determined by the commissioner under   Subsection (b), of the basic allotment as provided by Section   48.051(a) or (b) for a school district with a maintenance and   operations tax rate at least equal to the state maximum compressed   tax rate, as defined by Section 48.051(a)].          (a-1)  For purposes of Subsection (a), a full-time school   nurse is considered to hold the base certificate required under   Section 21.003(a) for employment as a school nurse, regardless of   the other certifications held by the nurse.          (c-2)  A school district is not required to pay an employee   who is employed as a classroom teacher, full-time librarian,   full-time school counselor certified under Subchapter B, or   full-time school nurse the minimum salary required under Subsection   (a) for the school year following a school year during which the   district reviews the employee's performance and finds the   employee's performance unsatisfactory.          (g)  The commissioner may adopt rules to govern the   application of this section, including rules that:                (1)  require the payment of a minimum salary under this   section to a person employed in more than one capacity for which a   minimum salary is provided and whose combined employment in those   capacities constitutes full-time employment; and                (2)  specify the credentials a person must hold to be   considered a [speech pathologist or] school nurse under this   section.          (i)  A school district that increases employee compensation   in the 2024-2025 school year to comply with Subsection (a), as   amended by _.B. ___, 88th Legislature, 3rd Called Session, 2023, is   providing compensation for services rendered independently of an   existing employment contract applicable to that year and is not in   violation of Section 53, Article III, Texas Constitution. A school   district that does not meet the requirements of Subsection (a) in   the 2024-2025 school year may satisfy the requirements of this   section by providing an employee a one-time bonus payment during   the 2025-2026 school year in an amount equal to the difference   between the compensation earned by the employee during the   2024-2025 school year and the compensation the employee should have   received during that school year if the district had complied with   Subsection (a).          (j)  Notwithstanding the minimum salary schedule under   Subsection (a), a school district that increases the amount a   classroom teacher, full-time librarian, full-time school counselor   certified under Subchapter B, or full-time school nurse is   compensated during the 2024-2025 school year by at least $8,000   more than the amount the employee was compensated during the   2023-2024 school year complies with the requirements of this   section for the 2024-2025 school year.          (k)  Subsections (i) and (j) and this subsection expire   September 1, 2027.          SECTION 1.12.  The heading to Section 21.403, Education   Code, is amended to read as follows:          Sec. 21.403.  DETERMINATION OF YEARS OF EXPERIENCE   [PLACEMENT ON MINIMUM SALARY SCHEDULE].          SECTION 1.13.  Sections 21.403(b) and (c), Education Code,   are amended to read as follows:          (b)  For each year of work experience required for   certification in a career or technological field, up to a maximum of   two years, a certified career or technology education teacher is   entitled to [salary step] credit as if the work experience were   teaching experience.          (c)  The commissioner shall adopt rules for determining the   experience for which a teacher, librarian, school counselor, or   nurse is to be given credit for purposes of the minimum salary   schedule under Section 21.402(a) [in placing the teacher,   librarian, school counselor, or nurse on the minimum salary   schedule].  A district shall credit the teacher, librarian, school   counselor, or nurse for each year of experience without regard to   whether the years are consecutive.          SECTION 1.14.  Subchapter I, Chapter 21, Education Code, is   amended by adding Sections 21.416 and 21.417 to read as follows:          Sec. 21.416.  EMPLOYED RETIREE TEACHER REIMBURSEMENT GRANT   PROGRAM. (a)  From funds appropriated or otherwise available, the   commissioner shall establish and administer a grant program to   award funds to reimburse a school district, an open-enrollment   charter school, the Windham School District, the Texas School for   the Deaf, or the Texas School for the Blind and Visually Impaired   that hires a teacher, including an educator who provides services   related to special education, who retired before September 1, 2022,   for the increased contributions to the Teacher Retirement System of   Texas associated with hiring the retired teacher.          (b)  In appropriating money for grants awarded under this   section, the legislature may provide for, modify, or limit amounts   appropriated for that purpose in the General Appropriations Act,   including by:                 (1)  providing, notwithstanding Subsection (a), a date   or date range other than September 1, 2022, before which a teacher   must have retired for a school district, an open-enrollment charter   school, the Windham School District, the Texas School for the Deaf,   or the Texas School for the Blind and Visually Impaired that hires   the teacher to be eligible; or                (2)  limiting eligibility to a school district or   open-enrollment charter school that hires a retired teacher:                      (A)  who holds a certain certification;                      (B)  to teach a certain subject or grade;                       (C)  in a certain geographical area; or                      (D)  to provide instruction to certain students,   including to students with disabilities.          (c)  The commissioner shall proportionally reduce the amount   of funds awarded to school districts, open-enrollment charter   schools, the Windham School District, the Texas School for the   Deaf, and the Texas School for the Blind and Visually Impaired under   this section if the number of grant applications by eligible   districts or schools exceeds the number of grants the commissioner   could award with the money appropriated or otherwise available for   the purpose.          (d)  A school district, an open-enrollment charter school,   the Windham School District, the Texas School for the Deaf, or the   Texas School for the Blind and Visually Impaired may use funds   received under this section to make required payments under Section   825.4092, Government Code.          Sec. 21.417.  ELECTION BY TEACHER TO USE UNPAID LEAVE. The   board of trustees of a school district shall adopt a policy that   provides a classroom teacher employed by the district the option to   elect not to take the teacher's paid personal leave concurrently   with unpaid leave the teacher is entitled to take under the Family   and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.) for   an absence due to pregnancy or the birth or adoption of a child.          SECTION 1.15.  Section 21.4552(d), Education Code, is   amended to read as follows:          (d)  From funds appropriated for that purpose, a teacher who   attends a literacy achievement academy is entitled to receive a   stipend in the amount determined by the commissioner.  A stipend   received under this subsection is not considered in determining   whether a school district is paying the teacher the minimum   [monthly] salary under Section 21.402.          SECTION 1.16.  Section 21.4553(d), Education Code, is   amended to read as follows:          (d)  From funds appropriated for that purpose, a teacher who   attends a mathematics achievement academy is entitled to receive a   stipend in the amount determined by the commissioner.  A stipend   received under this subsection is not considered in determining   whether a district is paying the teacher the minimum [monthly]   salary under Section 21.402.          SECTION 1.17.  Section 21.4555(f), Education Code, is   amended to read as follows:          (f)  From funds available for that purpose, a teacher who   attends a civics training program may receive a stipend in an amount   determined by the commissioner.  A stipend received under this   section is not included in determining whether a district is paying   the teacher the minimum [monthly] salary under Section 21.402.          SECTION 1.18.  Subchapter J, Chapter 21, Education Code, is   amended by adding Sections 21.466 and 21.467 to read as follows:          Sec. 21.466.  TEACHER QUALITY ASSISTANCE. (a) From funds   appropriated or otherwise available for the purpose, the agency   shall develop training for and provide technical assistance to   school districts and open-enrollment charter schools regarding:                (1)  strategic compensation, staffing, and scheduling   efforts that improve professional growth, teacher leadership   opportunities, and staff retention;                (2)  programs that encourage high school students or   other members of the community in the area served by the district to   become teachers, including available teacher apprenticeship   programs; and                (3)  programs or strategies that school leaders may use   to establish clear and attainable behavior expectations while   proactively supporting students.          (b)  From funds appropriated or otherwise available, the   agency shall provide grants to school districts and open-enrollment   charter schools to implement initiatives developed under this   section.          Sec. 21.467.  TEACHER TIME STUDY. (a) From funds   appropriated or otherwise available for the purpose, the agency   shall develop and maintain a technical assistance program to   support school districts and open-enrollment charter schools in:                (1)  studying how the district's or school's staff and   student schedules, required noninstructional duties for classroom   teachers, and professional development requirements for educators   are affecting the amount of time classroom teachers work each week;   and                (2)  refining the schedules for students or staff as   necessary to ensure teachers have sufficient time during normal   work hours to fulfill all job duties, including addressing the   needs of students.          (b)  The agency shall periodically make findings and   recommendations for best practices publicly available using   information from participating school districts and   open-enrollment charter schools.          SECTION 1.19.  Chapter 21, Education Code, is amended by   adding Subchapter R to read as follows:   SUBCHAPTER R. TEXAS TEACHER RESIDENCY PARTNERSHIP PROGRAM          Sec. 21.901.  DEFINITIONS. In this subchapter:                (1)  "Board" means the State Board for Educator   Certification.                (2)  "Cooperating teacher" means a classroom teacher   who:                      (A)  has at least three full school years of   teaching experience with a superior record of assisting students in   achieving improvement in student performance;                      (B)  is employed by a school district or   open-enrollment charter school participating in a partnership   program under this subchapter and paired with a partnership   resident at the district or school; and                      (C)  provides coaching to a partnership resident   in the teacher's classroom.                (3)  "Partnership program" means a Texas Teacher   Residency Partnership Program established at a school district or   open-enrollment charter school in accordance with this subchapter.                (4)  "Partnership resident" means a person enrolled in   a qualified educator preparation program participating in a   partnership program as a candidate for educator certification.                (5)  "Qualified educator preparation program" means an   educator preparation program approved in accordance with rules   proposed under Section 21.903.          Sec. 21.902.  ESTABLISHMENT OF PARTNERSHIP PROGRAM. (a)   The commissioner shall establish the Texas Teacher Residency   Partnership Program to enable qualified educator preparation   programs to form partnerships with school districts or   open-enrollment charter schools to provide residency positions to   partnership residents at the district or school.          (b)  The partnership program must be designed to:                (1)  allow partnership residents to receive   field-based experience working with cooperating teachers in   prekindergarten through grade 12 classrooms; and                (2)  gradually increase the amount of time a   partnership resident spends engaging in instructional   responsibilities, including observation, co-teaching, and   lead-teaching responsibilities.          Sec. 21.903.  QUALIFIED EDUCATOR PREPARATION PROGRAMS. The   board shall propose rules specifying the requirements for board   approval of an educator preparation program as a qualified educator   preparation program for purposes of this subchapter.  The rules   must require an educator preparation program to:                (1)  use research-based best practices for recruiting   and admitting candidates into the educator preparation program to   participate in the partnership program;                (2)  integrate curriculum, classroom practice, and   formal observation and feedback;                (3)  use multiple assessments to measure a partnership   resident's progress in the partnership program; and                (4)  partner with a school district or open-enrollment   charter school.          Sec. 21.904.  REQUIREMENTS FOR PARTICIPATING DISTRICTS AND   SCHOOLS. (a)  A school district or open-enrollment charter school   participating in the partnership program shall:                (1)  enter into a written agreement with a qualified   educator preparation program to:                      (A)  provide a partnership resident with at least   one school year of clinical teaching in a residency position at the   district or school in the subject area and grade level for which the   resident seeks certification; and                      (B)  pair the partnership resident with a   cooperating teacher;                (2)  specify the amount of money the district receives   under Section 48.157 that the district will provide to the program;                (3)  only use money received under Section 48.157 to:                      (A)  implement the partnership program;                      (B)  provide compensation to:                            (i)  partnership residents in residency   positions at the district or school; and                            (ii)  cooperating teachers who are paired   with partnership residents at the district or school; and                      (C)  provide an amount equal to at least 10   percent of the funding received by the district or school to the   qualified educator preparation program with which the district or   school partners;                (4)  pay at least 50 percent of the compensation paid to   partnership residents using money other than money received under   Section 48.157; and                (5)  provide any information required by the agency   regarding the district's or school's implementation of the program.          (b)  A school district or open-enrollment charter school may   only pair a partnership resident with a cooperating teacher who   agrees to participate in that role in a partnership program at the   district or school partnership program.          (c)  A partnership resident may not serve as a teacher of   record, as that term is defined by Section 21.051.          Sec. 21.905.  RESIDENCY EDUCATOR CERTIFICATE. The board   shall propose rules specifying the requirements for the issuance of   a residency educator certificate to a candidate who has   successfully completed a qualified educator preparation program   under Section 21.903.  The rules may not require the resident to   pass a pedagogy examination unless the examination tests   subject-specific content appropriate for the grade and subject area   for which the candidate seeks certification.          Sec. 21.906.  AGENCY SUPPORT. The agency shall provide   technical assistance, planning, and support to school districts,   open-enrollment charter schools, and qualified educator   preparation programs, which must include:                (1)  providing model forms and agreements a district,   school, or educator preparation program may use to comply with the   requirements of this subchapter; and                (2)  support for district and school strategic staffing   and compensation models to incentivize participation in a   partnership program.          Sec. 21.907.  AUTHORITY TO ACCEPT CERTAIN FUNDS. The   commissioner may solicit and accept gifts, grants, and donations   from public and private entities to use for the purposes of this   subchapter.          Sec. 21.908.  RULES; NEGOTIATED RULEMAKING COMMITTEE. (a)   The board shall propose rules necessary to implement this   subchapter, including, subject to Subsection (b), rules under   Sections 21.903 and 21.905.          (b)  In using negotiated rulemaking procedures under Chapter   2008, Government Code, for any proposed rule related to the   implementation of Section 21.903 or 21.905, the board must appoint   to the negotiated rulemaking committee persons representing   institutions of higher education, as defined by Section 61.003.          (c)  The commissioner shall adopt rules as necessary to   implement this subchapter after considering the recommendations of   the negotiated rulemaking committee appointed under Subsection   (b).          SECTION 1.20.  Section 29.153(b), Education Code, is amended   to read as follows:          (b)  A child is eligible for enrollment in a prekindergarten   class under this section if the child is at least three years of age   and:                (1)  is unable to speak and comprehend the English   language;                (2)  is educationally disadvantaged;                (3)  is 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;                (4)  is the child of an active duty member of the armed   forces of the United States, including the state military forces or   a reserve component of the armed forces, who is ordered to active   duty by proper authority;                (5)  is the child of a member of the armed forces of the   United States, including the state military forces or a reserve   component of the armed forces, who was injured or killed while   serving on active duty;                (6)  is or ever has been in:                      (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                      (B)  foster care in another state or territory, if   the child resides in this state; [or]                (7)  is the child of a person eligible for the Star of   Texas Award as:                      (A)  a peace officer under Section 3106.002,   Government Code;                      (B)  a firefighter under Section 3106.003,   Government Code; or                      (C)  an emergency medical first responder under   Section 3106.004, Government Code; or                (8)  is the child of a person employed as a classroom   teacher at a public primary or secondary school in the school   district that offers a prekindergarten class under this section.          SECTION 1.21.  Section 30.102(b), Education Code, is amended   to read as follows:          (b)  A classroom teacher, full-time librarian, full-time   school counselor certified under Subchapter B, Chapter 21, or   full-time school nurse employed by the department is entitled to   receive as a minimum salary the [monthly] salary specified by   Section 21.402. A classroom teacher, full-time librarian,   full-time school counselor, or full-time school nurse may be paid,   from funds appropriated to the department, a salary in excess of the   minimum specified by that section, but the salary may not exceed the   rate of pay for a similar position in the public schools of an   adjacent school district.          SECTION 1.22.  Section 33.009(h), Education Code, is amended   to read as follows:          (h)  From funds appropriated for that purpose, a school   counselor who attends the academy under this section is entitled to   receive a stipend in the amount determined by the coordinating   board. If funds are available after all eligible school counselors   have received a stipend under this subsection, the coordinating   board shall pay a stipend in the amount determined by the   coordinating board to a teacher who attends the academy under this   section. A stipend received under this subsection is not   considered in determining whether a district is paying the school   counselor or teacher the minimum [monthly] salary under Section   21.402.          SECTION 1.23.  Sections 48.112(c) and (d), Education Code,   are amended to read as follows:          (c)  For each classroom teacher with a teacher designation   under Section 21.3521 employed by a school district, the school   district is entitled to an allotment equal to the following   applicable base amount increased by the high needs and rural factor   as determined under Subsection (d):                (1)  $12,000, or an increased amount not to exceed   $36,000 [$32,000] as determined under Subsection (d), for each   master teacher;                (2)  $9,000 [$6,000], or an increased amount not to   exceed $25,000 [$18,000] as determined under Subsection (d), for   each exemplary teacher; [and]                (3)  $5,000 [$3,000], or an increased amount not to   exceed $15,000 [$9,000] as determined under Subsection (d), for   each recognized teacher; and                (4)  $3,000, or an increased amount not to exceed   $9,000 as determined under Subsection (d), for each:                      (A)  acknowledged teacher; or                      (B)  teacher designated as nationally board   certified.          (d)  The high needs and rural factor is determined by   multiplying the following applicable amounts by the average of the   point value assigned to each student at a district campus under   Subsection (e):                (1)  $6,000 [$5,000] for each master teacher;                (2)  $4,000 [$3,000] for each exemplary teacher; [and]                (3)  $2,500 [$1,500] for each recognized teacher; and                (4)  $1,500 for each:                      (A)  acknowledged teacher; or                      (B)  teacher designated as nationally board   certified.          SECTION 1.24.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.157 to read as follows:          Sec. 48.157.  RESIDENCY PARTNERSHIP ALLOTMENT. (a)  In this   section, "partnership program" and "partnership resident" have the   meanings assigned by Section 21.901.          (b)  For each partnership resident employed at a school   district in a residency position under Subchapter R, Chapter 21,   the district is entitled to an allotment equal to a base amount of   $22,000 increased by the high needs and rural factor, as determined   under Subsection (c), to an amount not to exceed $42,000.          (c)  The high needs and rural factor is determined by   multiplying $5,000 by the lesser of:                (1)  the average of the point value assigned to each   student at a district campus under Sections 48.112(e) and (f); or                (2)  4.0.          (d)  In addition to the funding under Subsection (b), a   district that qualifies for an allotment under this section is   entitled to an additional $2,000 for each partnership resident   employed in a residency position at the district who is a candidate   for special education or bilingual education certification.          (e)  The Texas School for the Deaf and the Texas School for   the Blind and Visually Impaired are entitled to an allotment under   this section.  If the commissioner determines that assigning point   values under Subsection (c) to students enrolled in the Texas   School for the Deaf or the Texas School for the Blind and Visually   Impaired is impractical, the commissioner may use the average point   value assigned for those students' home districts for purposes of   calculating the high needs and rural factor.          SECTION 1.25.  Subchapter F, Chapter 48, Education Code, is   amended by adding Section 48.280 to read as follows:          Sec. 48.280.  SALARY TRANSITION ALLOTMENT. (a) A school   district is entitled to receive an annual salary transition   allotment equal to the number of employees on the minimum salary   schedule under Section 21.402 for the applicable school year   multiplied by the difference, if that amount is greater than zero,   between:                (1)  the amount calculated under Subsection (b); and                 (2)  the amount calculated under Subsection (c).          (b)  The agency shall calculate a school district's value for   Subsection (a)(1) by determining the difference between:                (1)  the amount the district must pay in compensation   for the current school year for employees on the minimum salary   schedule under Section 21.402, as amended by _.B. ___, 88th   Legislature, 3rd Called Session, 2023, divided by the total number   of employees on the minimum salary schedule under that section for   that school year; and                (2)  the amount paid in compensation for the 2023-2024   school year for employees on the minimum salary schedule under   Section 21.402 divided by the total number of employees on the   minimum salary schedule under that section for that school year.          (c)  The agency shall calculate a school district's value for   Subsection (a)(2) by determining the difference between:                (1)  the total maintenance and operations revenue for   the current school year divided by the total number of employees on   the minimum salary schedule under Section 21.402 for that school   year; and                (2)  the total maintenance and operations revenue that   would have been available to the district for the current school   year using the basic allotment formula provided by Section 48.051   and the small and mid-sized allotment formulas provided by Section   48.101 as those sections existed on January 1, 2023, divided by the   total number of employees on the minimum salary schedule under   Section 21.402 for that school year.          (d)  In calculating the values under this section for a   school district or open-enrollment charter school to which Section   21.402 does not apply, the agency shall include as employees on the   minimum salary schedule under that section employees of the   district or school who would have been on the minimum salary   schedule under that section if the district or school were a school   district to which that section applies.          (e)  Before making a final determination of the amount of an   allotment to which a school district is entitled under this   section, the agency shall ensure each school district has an   opportunity to review and submit revised information to the agency   for purposes of calculating the values under Subsection (a).          (f)  For purposes of this section, "compensation" includes   contributions made to the Teacher Retirement System of Texas under   Sections 825.4035 and 825.405, Government Code.          SECTION 1.26.  The following provisions are repealed:                (1)  Sections 21.402(b), (c), (c-1), (f), and (h),   Education Code;                (2)  Sections 21.403(a) and (d), Education Code;                (3)  Subchapter Q, Chapter 21, Education Code;                (4)  Section 48.114(b), Education Code; and                (5)  Section 825.4092(f), Government Code.          SECTION 1.27.  Not later than September 1, 2026, the   commissioner of education, with the assistance of the executive   director of the Teacher Retirement System of Texas and the   comptroller of public accounts, shall make recommendations to the   legislature to improve and coordinate pension contribution   appropriations for public school employees.          SECTION 1.28.  Section 21.257(f), Education Code, as added   by this article, applies only to a hearing before a hearing examiner   commenced on or after the effective date of this article.          SECTION 1.29.  Immediately following the effective date of   this article, a school district or open-enrollment charter school   shall redesignate a teacher who holds a designation made under   Section 21.3521, Education Code, before the effective date of this   article, to reflect the teacher's designation under Section   21.3521, Education Code, as amended by this article.  Funding   provided to a school district under Section 48.112, Education Code,   for a teacher who held a designation made under Section 21.3521,   Education Code, as that section existed immediately before the   effective date of this article, shall be increased to reflect the   teacher's redesignation under Section 21.3521, Education Code, as   amended by this article.          SECTION 1.30.  Notwithstanding Section 21.903, Education   Code, as added by this article, until the State Board for Educator   Certification adopts rules specifying the requirements for   approval of an educator preparation program as a qualified educator   preparation program as required by that section, the commissioner   of education may approve a program as a qualified educator   preparation program for purposes of Subchapter R, Chapter 21,   Education Code, as added by this article, if the commissioner   determines that the program meets the requirements under Section   21.903, Education Code, as added by this article.  An educator   preparation program's designation as a qualified educator   preparation program by the commissioner under this section remains   effective until the first anniversary of the earliest effective   date of a rule adopted by the State Board for Educator Certification   under Section 21.903, Education Code, as added by this article.          SECTION 1.31.  This article takes effect September 1, 2024.   ARTICLE 2. CHANGES RELATED TO PUBLIC SCHOOL FINANCE EFFECTIVE FOR   2023-2024 SCHOOL YEAR          SECTION 2.01.  Section 12.106, Education Code, is amended by   amending Subsection (d) and adding Subsections (d-1) and (d-2) to   read as follows:          (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 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 $300 [$60] million or a greater amount provided by   appropriation.          (d-1)  Notwithstanding Subsection (d)(2), the total amount   that may be used to provide allotments under Subsection (d) may not   exceed:                (1)  for the 2023-2024 school year, $108 million;                (2)  for the 2024-2025 school year, $156 million;                (3)  for the 2025-2026 school year, $204 million; and                (4)  for the 2026-2027 school year, $252 million.          (d-2)  Subsection (d-1) and this subsection expire September   1, 2028.           SECTION 2.02.  Subchapter Z, Chapter 29, Education Code, is   amended by adding Section 29.935 to read as follows:          Sec. 29.935.  UNIVERSITY OF TEXAS MCDONALD OBSERVATORY   EDUCATION AND OUTREACH GRANT. (a)  From money appropriated for the   Foundation School Program or otherwise made available for purposes   of this section, the commissioner shall transfer the amount of $10   million to The University of Texas at Austin to enhance education   outreach and visitor experiences and engagement, particularly for   students and educators, at The University of Texas McDonald   Observatory at Mount Locke.          (b)  Funds transferred under this section may only be used by   The University of Texas McDonald Observatory at Mount Locke to:                (1)  install new exhibits and renovate existing   exhibits;                (2)  modernize self-guided tours with the integration   of technology;                (3)  renovate and upgrade the observatory's theater and   facilities;                (4)  leverage technology to create first-class virtual   experiences; and                (5)  design in-person and virtual engagements for all   ages with special consideration given to students and educators.          (c)  The commissioner shall adopt rules as necessary to   implement this section.          (d)  This section expires September 1, 2025.          SECTION 2.03.  Section 30.003, Education Code, is amended by   amending Subsections (b) and (f-1) and adding Subsection (b-1) to   read as follows:          (b)  If the student is admitted to the school for a full-time   program for the equivalent of two long semesters, the district's   share of the cost is an amount equal to the dollar amount of   maintenance and debt service taxes imposed by the district for that   year, subject to Subsection (b-1), divided by the district's   average daily attendance for the preceding year.          (b-1)  For purposes of Subsection (b), the commissioner   shall reduce the dollar amount of maintenance and debt service   taxes imposed by the district for a year by the amount, if any, by   which the district is required to reduce the district's local   revenue level under Section 48.257 for that year.          (f-1)  The commissioner shall determine the total amount   that the Texas School for the Blind and Visually Impaired and the   Texas School for the Deaf would have received from school districts   in accordance with this section if the following provisions had not   reduced the districts' share of the cost of providing education   services:                (1)  H.B. No. 1, Acts of the 79th Legislature, 3rd   Called Session, 2006;                (2)  Subsection (b-1) of this section;                (3)  Section 45.0032;                (4) [(3)]  Section 48.255; and                (5) [(4)]  Section 48.2551.          SECTION 2.04.  Subchapter B, Chapter 38, Education Code, is   amended by adding Section 38.0631 to read as follows:          Sec. 38.0631.  TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER   TEXAS SCHOOL-BASED HEALTH CENTERS GRANT. (a)  From money   appropriated for the Foundation School Program or otherwise made   available for purposes of this section and in addition to other   grants available under this subchapter, the commissioner shall   transfer the amount of $20 million to the Texas Tech University   Health Sciences Center to enhance the provision of telehealth   services to public school students who receive services from   school-based health centers located in partner schools that   participate in the Texas Child Health Access through Telemedicine   program operated by the Texas Child Mental Health Care Consortium   established under Chapter 113, Health and Safety Code.          (b)  Funds transferred under this section may only be used by   the Texas Tech University Health Sciences Center to:                (1)  establish health care delivery infrastructure to   provide public school students the option of virtual health care   clinic visits during school hours;                (2)  develop a network of health care providers to   facilitate direct access for public school students to health care   providers through telehealth platforms; and                (3)  establish partnerships with school districts.          (c)  The commissioner shall adopt rules as necessary to   implement this section.          (d)  This section expires September 1, 2025.          SECTION 2.05.  Sections 48.005(b), (e), and (f), Education   Code, are amended to read as follows:          (b)  A school district that experiences a decline of more   than five [two] percent [or more] in average daily attendance shall   be funded on the basis of[:                [(1)  the actual average daily attendance of the   preceding school year, if the decline is the result of the closing   or reduction in personnel of a military base; or                [(2)  subject to Subsection (e),] an average daily   attendance of 95 [not to exceed 98] percent of the actual average   daily attendance of the preceding school year[, if the decline is   not the result of the closing or reduction in personnel of a   military base].          (e)  For each school year, the commissioner shall adjust the   average daily attendance of school districts that are entitled to   funding on the basis of an adjusted average daily attendance under   Subsection (b) [(b)(2)] so that:                (1)  all districts are funded on the basis of the same   percentage of the preceding year's actual average daily attendance;   and                (2)  the total cost to the state does not exceed $50   million [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) [(b)(2)].          SECTION 2.06.  Sections 48.011(a-1), (d), and (e), Education   Code, are amended to read as follows:          (a-1)  The commissioner may modify dates relating to the   adoption of a school district's maintenance and operations tax rate   and, if applicable, an election required for the district to adopt   that rate as necessary to implement the changes to the Foundation   School Program and requirements relating to school district tax   rates made by the 88th [H.B. 3, 86th] Legislature, 3rd Called    [Regular] Session, 2023 [2019].          (d)  Beginning with the 2027-2028 [2021-2022] school year,   the commissioner may not make an adjustment under Subsection (a) or   (a-1).          (e)  This section expires September 1, 2028 [2023].          SECTION 2.07.  Section 48.051, Education Code, is amended by   amending Subsections (a), (c), and (d) and adding Subsections   (c-3), (c-4), (c-5), and (c-6) to read as follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in special education   programs in an instructional arrangement other than mainstream or   career and technology education programs, for which an additional   allotment is made under Subchapter C, a district is entitled to an   allotment equal to [the lesser of $6,160 or] the amount that results   from the following formula:   A = B [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "B" is the base amount, which equals the greater of:                (1)  $6,190;                (2)  an amount equal to the district's base amount under   this section for the preceding school year; or                (3)  the amount appropriated under Subsection (b);          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.          (c)  During any school year for which the value of "A"   determined [maximum amount of the basic allotment provided] under   Subsection (a) or, if applicable, the sum of the value of "A" and   the allotment under Section 48.101 to which the district is   entitled, [or (b)] is greater than the value of "A" or, if   applicable, the sum of the value of "A" and the allotment under   Section 48.101 to which the district is entitled, [maximum amount   provided] for the preceding school year, a school district must use   at least 50 [30] percent of the amount[, if the amount is greater   than zero,] that equals the product of the average daily attendance   of the district multiplied by the amount of the difference between   the district's funding under this chapter per student in average   daily attendance, excluding the amounts described by Subsection   (c-6), for the current school year and the preceding school year to   increase the average total compensation per [provide compensation   increases to] full-time district employee [employees] other than an   administrator [administrators] as follows:                (1)  75 percent must be used to increase the average   total compensation per full-time district employee employed as   [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 the average total compensation per [paid to]   full-time district employee who is not described by Subdivision (1)   [employees].          (c-3)  In calculating the average total compensation per   full-time district employee under Subsection (c), a school district   may not consider compensation paid to a district employee employed   in a position described by that subsection who is added by the   district for the current school year and that increases the ratio of   those employees to students enrolled in the district compared to   the preceding school year.          (c-4)  If a school district increases employee compensation   in a school year to comply with Subsection (c), as amended by   _.B. ___, 88th Legislature, 3rd Called Session, 2023, the district   is providing compensation for services rendered independently of an   existing employment contract applicable to that year and is not a   violation of Section 53, Article III, Texas Constitution.          (c-5)  A school district that does not meet the requirements   of Subsection (c) during a school year may satisfy the requirements   of this section by providing a full-time district employee   described by that subsection a one-time bonus payment during the   following school year in an amount equal to the difference between   the compensation earned by the employee and the compensation the   employee should have received during the school year if the   district had complied with Subsection (c).          (c-6)  For purposes of determining the amount of a school   district's funding under this chapter under Subsection (c), the   commissioner shall exclude:                (1)  money received from the state instructional   materials and technology fund under Section 31.021;                (2)  the special education full individual and initial   evaluation allotment under Section 48.1022;                (3)  the college, career, and military readiness   outcomes bonuses under Section 48.110;                (4)  the school safety allotment under Section 48.115;   and                (5)  the allotments under Subchapter D, other than the   allotments under Sections 48.153 and 48.154.          (d)  In this section, "compensation" includes:                (1)  benefits such as insurance premiums; and                (2)  contributions to the Teacher Retirement System of   Texas under Section 825.4035, Government Code.          SECTION 2.08.  Subchapter C, Chapter 48, Education Code, is   amended by adding Section 48.1022 to read as follows:          Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL   EVALUATION. For each student for whom a school district conducts a   full individual and initial evaluation under Section 29.004 or 20   U.S.C. Section 1414(a)(1), the district is entitled to an allotment   of $500 or a greater amount provided by appropriation.          SECTION 2.09.  Section 48.106(a-1), Education Code, is   amended to read as follows:          (a-1)  In addition to the amounts under Subsection (a), for   each student in average daily attendance, a district is entitled to   $150 [$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 2.10.  Section 48.108(a), Education Code, is amended   to read as follows:          (a)  For each student in average daily attendance in   prekindergarten [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 2.11.  Section 48.110(d), Education Code, is amended   to read as follows:          (d)  For each annual graduate in a cohort described by   Subsection (b) who demonstrates college, career, or military   readiness as described by Subsection (f) in excess of the minimum   number of students determined for the applicable district cohort   under Subsection (c), a school district is entitled to an annual   outcomes bonus of:                (1)  if the annual graduate is educationally   disadvantaged, $5,000;                (2)  if the annual graduate is not educationally   disadvantaged, $3,000; and                (3)  if the annual graduate is enrolled in a special   education program under Subchapter A, Chapter 29, $4,000 [$2,000],   regardless of whether the annual graduate is educationally   disadvantaged.          SECTION 2.12.  Section 48.111(a), Education Code, is amended   to read as follows:          (a)  A [Except as provided by Subsection (c), a] school   district is entitled to an annual allotment equal to the basic   allotment multiplied by the applicable weight under Subsection   (a-1) for each enrolled student equal to the difference, if the   difference is greater than zero, that results from subtracting 250   from the difference between the number of students enrolled in the   district during the school year immediately preceding the current   school year and the number of students enrolled in the district   during the school year six years preceding the current school year.          SECTION 2.13.  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 greater of    [sum of the following amounts or a greater amount provided by   appropriation]:                (1)  [$10 for each 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 multiplied by   0.005 for each student in average daily attendance [under Section   48.051 exceeds $6,160, prorated as necessary]; and                (2)  the following amount, as applicable, [$15,000] per   campus:                      (A)  $30,000 for each campus with 500 or fewer   enrolled students;                      (B)  $50,000 for each campus with 501 to 1,000   enrolled students;                      (C)  $75,000 for each campus with 1,001 to 1,500   enrolled students;                      (D)  $87,500 for each campus with 1,501 to 2,000   enrolled students; and                      (E)  $100,000 for each campus with more than 2,000   enrolled students.          SECTION 2.14.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.116 and 48.119 to read as follows:          Sec. 48.116.  FINE ARTS ALLOTMENT. (a)  For each student in   average daily attendance enrolled in a fine arts education course   approved by the agency under Subsection (b) in grades 6 through 12,   a school district is entitled to an annual allotment equal to:                (1)  if the student is not educationally disadvantaged,   the basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled, multiplied by .008; or                (2) if the student is educationally disadvantaged, the   amount determined under Subdivision (1) multiplied by two.          (b)  The agency shall approve fine arts education courses   that qualify for the allotment provided under this section.  The   approved courses must include fine arts education courses that:                (1)  are authorized by the State Board of Education,   including music, art, theater, and dance;                (2)  provide students with the knowledge and skills   necessary for success in the fine arts; and                (3)  require a student in full-time attendance to   receive not less than 225 minutes of fine arts instruction per week.          (c)  The agency shall annually publish a list of fine arts   courses approved under Subsection (b).          Sec. 48.119.  BOOK SAFETY ALLOTMENT. (a)  For each student   in average daily attendance, a school district is entitled to an   annual allotment of $3 or a greater amount provided by   appropriation.          (b)  Funds allocated under this section may be used only to   ensure that school library books and related materials meet the   standards adopted under Section 33.021.          (c)  The agency shall adopt a list of approved vendors at   which a school district may spend funds allocated under this   section for the purpose described by Subsection (b).          SECTION 2.15.  Section 48.118(f), Education Code, is amended   to read as follows:          (f)  The total amount of state funding for allotments and   outcomes bonuses under this section may not exceed $5 million per   year unless money is specifically appropriated for the purpose of   this section and designated as money in excess of the $5 million   permitted under this subsection.  If the total amount of allotments   and outcomes bonuses to which school districts are entitled under   this section exceeds the amount permitted under this subsection,   the agency shall allocate state funding to districts under this   section in the following order:                (1)  allotments under Subsection (a) for which school   districts participating in partnerships prioritized under Section   29.912(h) are eligible;                (2)  allotments under Subsection (a) for which school   districts that entered into a memorandum of understanding or letter   of commitment regarding a multidistrict pathway partnership, as   defined by commissioner rule, before May 1, 2023, are eligible;                (3)  allotments under Subsection (a) for which school   districts that have entered into a performance agreement under   Section 29.912 with a coordinating entity that is an institution of   higher education, as defined by Section 61.003, are eligible;                (4)  allotments under Subsection (a) for which school   districts with the highest percentage of students who are   educationally disadvantaged, in descending order, are eligible;   and                (5)  outcomes bonuses under Subsection (c) for which   school districts with the highest percentage of students who are   educationally disadvantaged, in descending order, are eligible.          SECTION 2.16.  Section 48.151(g), Education Code, is amended   to read as follows:          (g)  A school district or county that provides special   transportation services for eligible special education students is   entitled to a state allocation at a [paid on a previous year's   cost-per-mile basis. The] rate of $1.75 per mile or a greater   amount provided [allowable shall be set] by appropriation [based on   data gathered from the first year of each preceding biennium].   Districts may use a portion of their support allocation to pay   transportation costs, if necessary. The commissioner may grant an   amount set by appropriation for private transportation to reimburse   parents or their agents for transporting eligible special education   students. The mileage allowed shall be computed along the shortest   public road from the student's home to school and back, morning and   afternoon. The need for this type of transportation shall be   determined on an individual basis and shall be approved only in   extreme hardship cases.          SECTION 2.17.  Subchapter D, Chapter 48, Education Code, is   amended by adding Sections 48.160  and 48.161 to read as follows:          Sec. 48.160.  ALLOTMENT FOR ADVANCED MATHEMATICS PATHWAYS   AND CERTAIN PROGRAMS OF STUDY. (a)  A school district is eligible   to receive an allotment under this section if the district offers   through in-person instruction, remote instruction, or a hybrid of   in-person and remote instruction:                (1)  an advanced mathematics pathway that begins with   Algebra I in grade eight and continues through progressively more   advanced mathematics courses in each grade from grade 9 through 12;                (2)  a program of study in:                      (A)  computer programming and software   development; or                      (B)  cybersecurity; and                (3)  a program of study in a specialized skilled trade,   such as:                      (A)  plumbing and pipefitting;                      (B)  electrical;                      (C)  welding;                      (D)  diesel and heavy equipment;                      (E)  aviation maintenance; or                      (F)  applied agricultural engineering.          (b)  Notwithstanding Subsection (a), a school district is   eligible for the allotment under this section for students in   average daily attendance in a high school in the district that does   not offer a program of study described by Subsection (a)(2) or (3)   if:                (1)  high school students who reside in the attendance   zone of the high school may participate in the program of study by   enrolling in another high school:                      (A)  that:                            (i)  is in the same district or a neighboring   school district;                            (ii)  was assigned the same or a better   campus overall performance rating under Section 39.054 as the high   school in whose attendance zone the students reside; and                            (iii)  offers the program of study; and                      (B)  to and from which transportation is provided   for those students; or                (2)  students in average daily attendance in the high   school:                      (A)  are offered instruction for the program of   study at another location, such as another high school in the same   district or a neighboring school district; and                      (B)  receive transportation to and from the   location described by Paragraph (A).          (c)  An eligible school district is entitled to an annual   allotment of $10 for each student in average daily attendance at a   high school in the district that offers a pathway or program of   study from each subdivision described by Subsection (a) if:                (1)  each student in average daily attendance at the   high school takes a progressively more advanced mathematics course   each year of enrollment; and                (2)  for each of those pathways or programs of study, at   least one student in average daily attendance at the high school   completes a course in the pathway or program of study.          (d)  A school district that receives an allotment under   Subsection (c) and Section 48.101 is entitled to receive an   additional allotment in an amount equal to the product of 0.1 and   the allotment to which the district is entitled under Section   48.101 for each student for which the district receives an   allotment under Subsection (c).  An open-enrollment charter school   is not eligible for an allotment under this subsection.          (e)  The commissioner by rule may establish requirements to   ensure students in average daily attendance in a high school to   which Subsection (b) applies have meaningful access to the programs   of study described by Subsections (a)(2) and (3).          (f)  The agency may reduce the amount of a school district's   allotment under this section if the agency determines that the   district has not complied with any provision of this section.          Sec. 48.161.  COMMUNITIES IN SCHOOLS EXPANSION   ALLOTMENT.  (a)  A school district is eligible to receive an   annual allotment of $50,000 for each campus in the district that   participates in the Communities In Schools program under Subchapter   E, Chapter 33.          (b)  The commissioner by rule may establish requirements for   the use of an allotment under this section by a school district to   ensure that the allotment is used to establish or expand a   Communities In Schools program on a district campus.          (c)  The amount appropriated for allotments under this   section may not exceed $50 million in a school year.  If the total   amount of allotments to which districts are entitled under this   section for a school year exceeds the amount appropriated under   this subsection, the commissioner shall proportionately reduce   each district's allotment under this section.          (d)  The commissioner may reduce the amount of a school   district's allotment under this section if the commissioner   determines that the district has not complied with any provision of   this section.          SECTION 2.18.  Section 48.202, Education Code, is amended by   amending Subsection (a-1) and adding Subsections (f-1) and (f-2) to   read as follows:          (a-1)  For purposes of Subsection (a), the dollar amount   guaranteed level of state and local funds per weighted student per   cent of tax effort ("GL") for a school district is:                (1)  the greater of the amount of district tax revenue   per weighted student per cent of tax effort available to a school   district at the 96th percentile of wealth per weighted student or   the amount that results from multiplying the maximum amount of the   basic allotment provided under Section 48.051 for the applicable   school year [6,160, or the greater amount provided under Section   48.051(b), if applicable,] by 0.016, for the first eight cents by   which the district's maintenance and operations tax rate exceeds   the district's tier one tax rate; and                (2)  subject to Subsection (f), the amount that results   from multiplying the maximum amount of the basic allotment provided   under Section 48.051 for the applicable school year [$6,160, or the   greater amount provided under Section 48.051(b), if applicable,] by   0.008, for the district's maintenance and operations tax effort   that exceeds the amount of tax effort described by Subdivision (1).          (f-1)  Notwithstanding any other provision of this chapter,   Subsection (f) does not apply for the 2023-2024 school year.          (f-2)  Subsection (f-1) and this subsection expire September   1, 2025.          SECTION 2.19.  Section 48.277(b), Education Code, is amended   to read as follows:          (b)  For purposes of calculating maintenance and operations   revenue under Subsection (a), the commissioner shall:                (1)  for purposes of Subsections (a)(1) and (2), use   the following applicable school year:                      (A)  in a school year ending in an even-numbered   year, the 2019-2020 school year; and                      (B)  in a school year ending in an odd-numbered   year, the 2019-2020 or 2020-2021 school year, whichever is greater;                (2)  include all state and local funding, except for   any funding resulting from:                      (A)  reimbursement for disaster remediation costs   under former Sections 41.0931 and 42.2524;                      (B)  an adjustment for rapid decline in taxable   value of property under former Section 42.2521;                      (C)  an adjustment for property value affected by   a state of disaster under former Section 42.2523; [and]                      (D)  additional state aid under Section 48.307 or   48.308; and                      (E)  additional state aid for retention stipends   under Section 48.285;                (3)  adjust the calculation to reflect a reduction in   tax effort by a school district; and                (4)  if a school district or open-enrollment charter   school receives a waiver relating to eligibility requirements for   the national free or reduced-price lunch program under 42 U.S.C.   Section 1751 et seq., use the numbers of educationally   disadvantaged students on which the district's or school's   entitlement to compensatory education funds was based for the   school year before the school year in which the district or school   received the waiver, adjusted for estimated enrollment growth.          SECTION 2.20.  Subchapter F, Chapter 48, Education Code, is   amended by adding Sections 48.284 and 48.285 to read as follows:          Sec. 48.284.  PROPERTY VALUE STUDY HARDSHIP GRANTS. (a) For   the 2023-2024 and 2024-2025 school years, from money appropriated   for purposes of this section, the commissioner may administer a   grant program to provide grants to eligible school districts to   offset a reduction in the district's funding under the Foundation   School Program resulting from the use of the state value for the   district's taxable value of property as provided by Section   403.302(c), Government Code, for the 2022 and 2023 tax years.          (b)  The amount of a grant awarded under this section is the   difference, if that difference is greater than zero, between:                (1)  the funding the school district would have   received under Chapter 46, this chapter, and Chapter 49 for the   applicable school year if the local value for the district's   taxable value of property was used for the applicable tax year; and                (2)  the funding to which the district is entitled   under Chapter 46, this chapter, and Chapter 49 for the applicable   school year.          (c)  An open-enrollment charter school is not eligible to   receive a grant under this section.          (d)  Funding provided to a school district under this section   is in addition to all other funding provided under Chapter 46, this   chapter, and Chapter 49.          (e)  The commissioner may require a school district to   submit, or request from a state agency or a political subdivision of   this state, additional information as needed to make a   determination under this section.          (f)  The total amount of grants awarded under this section   for a school year may not exceed $60 million.          (g)  In awarding grants under this section, the commissioner   shall prioritize school districts experiencing the greatest   percentage reduction in funding described by Subsection (a).          (h)  The commissioner may not adjust the amount of a grant   awarded under this section based on data revisions received after   the grant has been awarded.          (i)  A determination by the commissioner under this section   is final and may not be appealed.          (j)  This section expires September 1, 2025.          Sec. 48.285.  ADDITIONAL STATE AID FOR RETENTION STIPENDS.   (a)  For the 2023-2024 school year, a school district, including a   school district that is otherwise ineligible for state aid under   this chapter, is entitled to state aid in an amount equal to the sum   of:                (1)  the product of $4,000 multiplied by the number of   full-time employees subject to the minimum salary schedule under   Section 21.402 employed by the district; and                (2)  the product of $2,000 multiplied by the number of   part-time classroom teachers, part-time librarians, part-time   school counselors certified under Subchapter B, Chapter 21, and   part-time school nurses employed by the district.          (b)  A school district shall use state aid received under   Subsection (a) to provide a one-time stipend to each employee for   whom the district received state aid in the amount of the state aid   provided under that subsection for that employee.          (c)  An open-enrollment charter school is entitled to state   aid under this section in the same manner as a school district and   is required to provide a one-time stipend to each employee in a   comparable role as a school district employee described by   Subsection (a) as if those employees were subject to the minimum   salary schedule under Section 21.402.          (d)  A one-time stipend provided to an eligible employee   under this section satisfies the compensation increase required by   Section 48.051.          (e)  A determination by the commissioner under this section   is final and may not be appealed.          (f)  A school district or an open-enrollment charter school   is not entitled to funding under this section beginning with the   2024-2025 school year.          (g)  This section expires September 1, 2025.          SECTION 2.21.  Sections 48.111(c), (c-1), and (c-2),   Education Code, are repealed.          SECTION 2.22.  Except as otherwise provided by this article,   this article takes effect immediately if this Act receives a vote of   two-thirds of all the members elected to each house, as provided by   Section 39, Article III, Texas Constitution.  If this Act does not   receive the vote necessary for immediate effect, the entirety of   this article takes effect on the 91st day after the last day of the   legislative session.   ARTICLE 3. CHANGES RELATED TO PUBLIC SCHOOL FINANCE EFFECTIVE FOR   2024-2025 SCHOOL YEAR          SECTION 3.01.  Section 12.263(b), Education Code, is amended   to read as follows:          (b)  For purposes of determining the average daily   attendance of an adult education program operated under a charter   granted under this subchapter, a student is considered to be in   average 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)  three-quarters [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)  half [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)  a quarter [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.          SECTION 3.02.  Sections 48.0051(a), (b), and (d), Education   Code, are amended to read as follows:          (a)  The [Subject to Subsection (a-1), the] commissioner   shall adjust the average daily attendance of a school district or   open-enrollment charter school under Section 48.005 in the manner   provided by Subsection (b) if the district or school:                (1)  provides the minimum number of minutes of   operational and instructional time required under Section 25.081   and commissioner rules adopted under that section over at least 175   [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 daily attendance of the district or school under Section   48.005 by the amount that results from the quotient of the sum of   attendance by students described by Subsection (a)(2) for each of   the 30 additional instructional days of half-day instruction that   are provided divided by 175 [180].          (d)  This section does not prohibit a school district from   providing the minimum number of minutes of operational and   instructional time required under Section 25.081 and commissioner   rules adopted under that section over fewer than 175 [180] days of   instruction.          SECTION 3.03.  Section 48.051(a), Education Code, is amended   to read as follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in special education   programs in a setting [an instructional arrangement] other than a   general education setting [mainstream] or career and technology   education programs, for which an additional allotment is made under   Subchapter C, a district is entitled to an allotment equal to [the   lesser of $6,160 or] the amount that results from the following   formula:   A = B [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "B" is the base amount, which equals the greater of:                (1)  $6,500;                (2)  an amount equal to the district's base amount under   this section for the preceding school year; or                (3)  the amount appropriated under Subsection (b);          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.          SECTION 3.04.  Effective September 1, 2026, Section 48.051,   Education Code, is amended by adding Subsection (a-1) to read as   follows:          (a-1)  Notwithstanding Subsection (a), for the second year   of each state fiscal biennium, the commissioner shall adjust the   value of "B" under that subsection for the preceding state fiscal   year by a factor equal to the average annual percentage increase, if   any, in the Texas Consumer Price Index for the preceding 10 years.          SECTION 3.05.  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 daily attendance;                (2)  "ADA" is the number of students in average daily   attendance for which the district is entitled to an allotment under   Section 48.051, other than students in average daily attendance who   do not reside in the district and are enrolled in a full-time   virtual program; and                (3)  "BA" is the basic allotment determined under   Section 48.051.          (b)  A school district that has fewer than 1,600 students in   average daily attendance is entitled to an annual allotment for   each student in average daily attendance based on the following   formula:   AA = ((1,600 - ADA) X .00044 [.0004]) X BA          (c)  A school district that offers a kindergarten through   grade 12 program and has less than 5,000 students in average daily   attendance is entitled to an annual allotment for each student in   average daily attendance based on the formula, of the following   formulas, that results in the greatest annual allotment:                (1)  the formula in Subsection (b), if the district is   eligible for that formula; or                (2)  AA = ((5,000 - ADA) X .000034 [.000025]) X BA.          (d)  Instead of the allotment under Subsection (b) or (c)(1),   a school district that has fewer than 300 students in average daily   attendance and is the only school district located in and operating   in a county is entitled to an annual allotment for each student in   average daily attendance based on the following formula:   AA = ((1,600 - ADA) X .00054 [.00047]) X BA          SECTION 3.06.  Section 48.102, Education Code, is amended to   read as follows:          Sec. 48.102.  SPECIAL EDUCATION. (a) For each enrolled    student [in average daily attendance] in a special education   program under Subchapter A, Chapter 29, [in a mainstream   instructional arrangement,] a school district is entitled to an   annual allotment equal to the basic allotment, or, if applicable,   the sum of the basic allotment and the allotment under Section   48.101 to which the district is entitled, multiplied by a weight in   an amount set by the legislature in the General Appropriations Act   for the highest tier of intensity of service for which the student   qualifies [1.15]. [For each full-time equivalent student in   average daily attendance in a special education program under   Subchapter A, Chapter 29, in an instructional arrangement other   than a mainstream instructional arrangement, a district is entitled   to an annual allotment equal to the basic allotment, or, if   applicable, the sum of the basic allotment and the allotment under   Section 48.101 to which the district is entitled, multiplied by a   weight determined according to instructional arrangement as   follows:                [Homebound             5.0                [Hospital class             3.0                [Speech therapy             5.0                [Resource room             3.0                [Self-contained, mild and moderate,                regular campus             3.0                [Self-contained, severe, regular campus           3.0                [Off home campus             2.7                [Nonpublic day school             1.7                [Vocational adjustment class             2.3]          (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and   2025-2026 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.   This subsection expires September 1, 2026.          (b)  The commissioner by rule shall define seven tiers of   intensity of service for use in determining funding under this   section. The commissioner must include one tier specifically   addressing students receiving special education services in   residential placement [A special instructional arrangement for   students with disabilities residing in care and treatment   facilities, other than state schools, whose parents or guardians do   not reside in the district providing education services shall be   established by commissioner rule.  The funding weight for this   arrangement shall be 4.0 for those students who receive their   education service on a local school district campus.  A special   instructional arrangement for students with disabilities residing   in state schools shall be established by commissioner rule with a   funding weight of 2.8].          (c)  [For funding purposes, the number of contact hours   credited per day for each student in the off home campus   instructional arrangement may not exceed the contact hours credited   per day for the multidistrict class instructional arrangement in   the 1992-1993 school year.          [(d)  For funding purposes the contact hours credited per day   for each student in the resource room;  self-contained, mild and   moderate; and self-contained, severe, instructional arrangements   may not exceed the average of the statewide total contact hours   credited per day for those three instructional arrangements in the   1992-1993 school year.          [(e)  The commissioner by rule shall prescribe the   qualifications an instructional arrangement must meet in order to   be funded as a particular instructional arrangement under this   section.  In prescribing the qualifications that a mainstream   instructional arrangement must meet, the commissioner shall   establish requirements that students with disabilities and their   teachers receive the direct, indirect, and support services that   are necessary to enrich the regular classroom and enable student   success.          [(f)  In this section, "full-time equivalent student" means   30 hours of contact a week between a special education student and   special education program personnel.          [(g)]  The commissioner shall adopt rules and procedures   governing contracts for residential and day program placement of   [special education] students receiving special education services.          (d)  [The legislature shall provide by appropriation for the   state's share of the costs of those placements.          [(h)]  At least 55 percent of the funds allocated under this   section must be used in the special education program under   Subchapter A, Chapter 29.          (e) [(i)]  The agency shall ensure [encourage] the placement   of students in special education programs, including students in   residential placement [instructional arrangements], in the least   restrictive environment appropriate for their educational needs.          (f) [(j)]  A school district that provides an extended year   program required by federal law for special education students who   may regress is entitled to receive funds in an amount equal to 75   percent, or a lesser percentage determined by the commissioner, of   the basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled for each [full-time equivalent] student in   average enrollment [daily attendance], multiplied by the amount   designated for the highest tier of intensity of service for which   the student qualifies [student's instructional arrangement] under   this section, for each day the program is provided divided by the   number of days in the minimum school year. The total amount of   state funding for extended year services under this section may not   exceed $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 3.07.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.1021 and 48.1023 to read as follows:          Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.   (a)  For each six-week period in which a student in a special   education program under Subchapter A, Chapter 29, receives eligible   special education services, a school district is entitled to an   allotment in an amount set by the legislature in the General   Appropriations Act for the service group for which the student is   eligible.          (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and   2025-2026 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.   This subsection expires September 1, 2026.          (b)  The commissioner by rule shall establish four service   groups for use in determining funding under this section. In   establishing the groups, the commissioner must consider the level   of services, equipment, and technology required to meet the needs   of students receiving special education services.          (c)  A school district is entitled to receive an allotment   under this section for each service group for which a student is   eligible.          (d)  A school district is entitled to the full amount of an   allotment under this section for a student receiving eligible   special education services during any part of a six-week period.          (e)  At least 55 percent of the funds allocated under this   section must be used for a special education program under   Subchapter A, Chapter 29.          (f)  Not later than December 1 of each even-numbered year,   the commissioner shall submit to the Legislative Budget Board, for   purposes of the allotment under this section, proposed amounts of   funding for the service groups for the next state fiscal biennium.          Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING. (a)     For the 2024-2025 and 2025-2026 school years, the commissioner may   adjust weights or amounts provided under Section 48.102 or 48.1021   as necessary to ensure compliance with requirements regarding   maintenance of state financial support under 20 U.S.C. Section   1412(a)(18) and maintenance of local financial support under   applicable federal law.          (b)  For the 2024-2025 and 2025-2026 school years, the   commissioner shall determine the formulas through which school   districts receive funding under Sections 48.102 and 48.1021. In   determining the formulas, the commissioner may combine the methods   of funding under those sections with the method of funding provided   by Section 48.102, as it existed on September 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 September 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 3.08.  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 3.09.  Sections 48.104(a), (d), and (e), Education   Code, are amended to read as follows:          (a)  For each student who does not have a disability and   resides in a residential placement facility in a district in which   the student's parent or legal guardian does not reside, a district   is entitled to an annual allotment equal to the basic allotment   multiplied by 0.2 or, if the student is educationally   disadvantaged, 0.28 [0.275]. For each full-time equivalent student   who is in a remedial and support program under Section 29.081   because the student is pregnant, a district is entitled to an annual   allotment equal to the basic allotment multiplied by 2.41.          (d)  The weights assigned to the five tiers of the index   established under Subsection (c) are, from least to most severe   economic disadvantage, 0.23 [0.225], 0.2425 [0.2375], 0.255   [0.25], 0.2675 [0.2625], and 0.28 [0.275].          (e)  If insufficient data is available for any school year to   evaluate the level of economic disadvantage in a census block   group, a school district is entitled to an annual allotment equal to   the basic allotment multiplied by 0.23 [0.225] for each student who   is educationally disadvantaged and resides in that census block   group.          SECTION 3.10.  Section 48.108, Education Code, is amended by   adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as   follows:          (a-1)  In addition to the allotment under Subsection (a) and   subject to Subsection (a-2), a school district is entitled to an   annual allotment equal to the basic allotment multiplied by 0.2 for   each student in average daily attendance enrolled in a   prekindergarten class provided through a contract with a   community-based child-care provider under Section 29.153.          (a-2)  The total number of students in average daily   attendance statewide for whom an allotment may be provided under   Subsection (a-1) for a school year may not exceed 10,000 students in   average daily attendance. If the number of students in average   daily attendance for whom a school district is entitled to an   allotment under this section exceeds the maximum number provided by   this subsection, the commissioner shall allocate the allotments to   school districts under this section in accordance with commissioner   rule.          (a-3)  Notwithstanding Subsection (a-2), the maximum number   of students in average daily attendance statewide for whom an   allotment may be provided under Subsection (a-1) for a school year   is:                (1)  for the 2024-2025 school year, 2,000 students;                (2)  for the 2025-2026 school year, 4,500 students; and                (3)  for the 2026-2027 school year, 7,000 students.          (a-4)  Subsection (a-3) and this subsection expire September   1, 2027.          SECTION 3.11.  Section 48.114, Education Code, is amended by   amending Subsection (a) and adding Subsection (d) to read as   follows:          (a)  A school district [that has implemented a mentoring   program for classroom teachers who have less than two years of   teaching experience under Section 21.458] is entitled to an   allotment [as determined under Subsection (b)] to fund a [the]   mentoring program and to provide stipends for mentor teachers if:                (1)  the district has implemented a mentoring program   for classroom teachers under Section 21.458; and                (2)  the mentor teachers assigned under that program   complete a training program that is required or developed by the   agency for mentor teachers.          (d)  A school district is entitled to an allotment of $2,000   for each classroom teacher with less than two years of experience   who participates in a mentoring program described by Subsection   (a).  A district may receive an allotment under this section for no   more than 40 teachers during a school year unless an appropriation   is made for the purposes of providing a greater number of allotments   per district.          SECTION 3.12.  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 greater of    [sum of the following amounts or a greater amount provided by   appropriation]:                (1)  [$10 for each 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 multiplied by   0.01 for each student in average daily attendance [under Section   48.051 exceeds $6,160, prorated as necessary]; and                (2)  the following amount, as applicable, [$15,000] per   campus:                      (A)  $50,000 for each campus with 500 or fewer   enrolled students;                      (B)  $100,000 for each campus with 501 to 1,000   enrolled students;                      (C)  $150,000 for each campus with 1,001 to 1,500   enrolled students;                      (D)  $175,000 for each campus with 1,501 to 2,000   enrolled students; and                      (E)  $200,000 for each campus with more than 2,000   enrolled students.          SECTION `1.  Subchapter C, Chapter 48, Education Code, is   amended by adding Section 48.120 to read as follows:          Sec. 48.120.  MILITARY TRANSITION AID. (a)  A school   district is entitled to an annual allotment equal to the basic   allotment multiplied by 0.08 for each eligible student in average   daily attendance.          (b)  A student is eligible for purposes of Subsection (a) if   the student:                (1)  is a military-connected student, as defined by   Section 25.006; and                (2)  is in the student's first year of enrollment in the   school district.          (c)  Funds allocated under this section may be used only to   maintain a transition program that assists military families with   relocation, enrollment, registration, records transfer, academic   planning, counseling, and other support services available at a   Purple Star Campus, as described by Section 33.909.          SECTION 3.14.  Section 48.257, Education Code, is amended by   amending Subsection (a) and adding Subsection (b-1) to read as   follows:          (a)  Subject to Subsection (b) and except as provided by   Subsection (b-1), if a school district's tier one local share under   Section 48.256 exceeds the district's entitlement under Section   48.266(a)(1) less the district's distribution from the state   available school fund, the district must reduce the district's tier   one revenue level in accordance with Chapter 49 to a level not to   exceed the district's entitlement under Section 48.266(a)(1) less   the district's distribution from the state available school fund.          (b-1)  This subsection applies only to a school district to   which Subsection (a) applies, that received an allotment under   Section 48.277 for the 2023-2024 school year, and that adopts a   maintenance and operations tax rate for the current school year   equal to or greater than the sum of the district's maximum   compressed tax rate, as determined under Section 48.2551, and four   cents.  Notwithstanding Subsection (a), if, after reducing the tier   one revenue level of a school district to which this subsection   applies as required under Subsection (a), the maintenance and   operations revenue per student in average daily attendance of the   district for a school year would be less than the maintenance and   operations revenue per student in average daily attendance   available to the district for the 2023-2024 school year, excluding   any funding provided to the district under Sections 48.279 and   48.281, the agency shall adjust the amount of the reduction   required in the district's tier one revenue level under Subsection   (a) up to the amount of local funds necessary to provide the   district with the amount of maintenance and operations revenue per   student in average daily attendance available to the district for   the 2023-2024 school year.          SECTION 3.15.  Subchapter F, Chapter 48, Education Code, is   amended by adding Section 48.286 to read as follows:          Sec. 48.286.  REGIONAL DISASTER INSURANCE VARIATION   ALLOTMENT. (a) A school district is entitled to an annual   allotment for each student in average daily attendance equal to the   basic allotment, or, if applicable, the sum of the basic allotment   and the allotment under Section 48.101 to which the district is   entitled, multiplied by the product, if the product is greater  than   zero, of the district's variation factor as determined under   Subsection (b) and .012.          (b)  The commissioner shall determine a school district's   variation factor by:                (1)  assigning each school district to the county in   which the district's central administrative office is located;                (2)  determining the percentage spent on expenses   related to property and casualty insurance by calculating the   average of the quotient of property and casualty insurance expenses   incurred by all districts assigned to a county under Subdivision   (1) divided by total expenditures made by those districts for each   of the three most recent school years; and                (3)  subtracting one percentage point from the   percentage determined under Subdivision (2).          (c)  The commissioner shall use the variation factor   determined under Subsection (b) for the 2023-2024 school year for a   school district for purposes of determining a school district's   allotment under Subsection (a) for any subsequent school year.          SECTION 3.16.  Subchapter G, Chapter 48, Education Code, is   amended by adding Sections 48.304 and 48.306 to read as follows:          Sec. 48.304.  DAY PLACEMENT PROGRAM FUNDING. (a) For each   qualifying day placement program that a regional education service   center makes available in partnership with a school district,   open-enrollment charter school, or shared services arrangement,   the center is entitled to an allotment of:                (1)  $250,000 for the first year of the program's   operation; and                (2)  $150,000 for each year of the program's operation   after the first year.          (b)  A day placement program qualifies for purposes of   Subsection (a) if:                (1)  the program complies with commissioner rules   adopted under Section 48.102(c);                (2)  the program offers services to students who are   enrolled at any school district or open-enrollment charter school   in the county in which the program is offered, unless the   commissioner by rule waives or modifies the requirement under this   subdivision for the program to serve all students in a county; and                (3)  the agency has designated the program for service   in the county in which the program is offered and determined that,   at the time of designation, the program increases the availability   of day placement services in the county.          Sec. 48.306.  PARENT-DIRECTED SERVICES FOR STUDENTS   RECEIVING SPECIAL EDUCATION SERVICES GRANT. (a) A student to whom   the agency awards a grant under Subchapter A-1, Chapter 29, is   entitled to receive an amount of $1,500 or a greater amount provided   by appropriation.          (b)  The legislature shall include in the appropriations for   the Foundation School Program state aid sufficient for the agency   to award grants under Subchapter A-1, Chapter 29, in the amount   provided by this section.          (c)  A student may receive one grant under Subchapter A-1,   Chapter 29, unless the legislature appropriates money for an   additional grant in the General Appropriations Act.          (d)  A determination of the commissioner under this section   is final and may not be appealed.          SECTION 3.17.  Effective January 1, 2024, Section 26.08(n),   Tax Code, is amended to read as follows:          (n)  For purposes of this section, the voter-approval tax   rate of a school district is the sum of the following:                (1)  the rate per $100 of taxable value that is equal to   the district's maximum compressed tax rate, as determined under   Section 48.2551, Education Code, for the current year;                (2)  the greater of:                      (A)  the district's enrichment tax rate for the   preceding tax year, less any amount by which the district is   required to reduce the district's enrichment tax rate under Section   48.202(f), Education Code, in the current tax year; or                      (B)  the rate of $0.06 [$0.05] per $100 of taxable   value; and                (3)  the district's current debt rate.          SECTION 3.18.  Except as otherwise provided by this article,   this article takes effect September 1, 2024.   ARTICLE 4.  CHANGES RELATED TO SPECIAL EDUCATION EFFECTIVE FOR   2024-2025 SCHOOL YEAR          SECTION 4.01.  Section 29.001, Education Code, is amended to   read as follows:          Sec. 29.001.  IMPLEMENTATION OF SPECIAL EDUCATION   LAW [STATEWIDE PLAN].  (a)  As the state education agency   responsible for carrying out the purposes of Part B, Individuals   with Disabilities Education Act (IDEA) (20 U.S.C. Section 1411 et   seq.), the [The] agency shall develop, and revise [modify] as   necessary, a comprehensive system to ensure statewide and local   compliance [design, consistent] with federal and state law related   to special education[, for the delivery of services to children   with disabilities in this state that includes rules for the   administration and funding of the special education program so that   a free appropriate public education is available to all of those   children between the ages of three and 21].          (b)  The comprehensive system [statewide design] shall   include the provision of services primarily through school   districts and shared services arrangements, supplemented by   regional education service centers.          (c)  The comprehensive system [agency] shall focus on   maximizing student outcomes and include [also develop and implement   a statewide plan with programmatic content that includes procedures   designed to]:                (1)  rulemaking, technical assistance, guidance   documents, monitoring protocols, and other resources as necessary   to implement and ensure compliance with federal and state law   related to special education [ensure state compliance with   requirements for supplemental federal funding for all   state-administered programs involving the delivery of   instructional or related services to students with disabilities];                (2)  the facilitation of [facilitate] interagency   coordination when other state agencies are involved in the delivery   of instructional or related services to students with disabilities;                (3)  the pursuit of [periodically assess statewide   personnel needs in all areas of specialization related to special   education and pursue] strategies to meet statewide special   education and related services personnel [those] needs [through a   consortium of representatives from regional education service   centers, local education agencies, and institutions of higher   education and through other available alternatives];                (4)  ensuring [ensure] that regional education service   centers throughout the state maintain a regional support function,   which may include direct service delivery and a component designed   to facilitate the placement of students with disabilities who   cannot be appropriately served in their resident districts;                (5)  [allow the agency to] effectively monitoring   [monitor] and periodically conducting [conduct] site visits of all   school districts to ensure that rules adopted under this subchapter   [section] are applied in a consistent and uniform manner, to ensure   that districts are complying with those rules, and to ensure that   annual statistical reports filed by the districts and not otherwise   available through the Public Education Information Management   System under Sections 48.008 and 48.009 are accurate and complete;   and                (6)  the provision of training and technical assistance   to ensure that:                      (A)  appropriately trained personnel are involved   in the diagnostic and evaluative procedures operating in all   districts and that those personnel routinely serve on district   admissions, review, and dismissal committees;                      (B)  [(7)  ensure that] an individualized   education program for each student with a disability is properly   developed, implemented, and maintained in the least restrictive   environment that is appropriate to meet the student's educational   needs;                      (C)  [(8)  ensure that,] when appropriate, each   student with a disability is provided an opportunity to participate   in career and technology and physical education classes[, in   addition to participating in regular or special classes];                      (D)  [(9)  ensure that] each student with a   disability is provided necessary related services;                      (E)  [(10)  ensure that] an individual assigned   to act as a surrogate parent for a child with a disability, as   provided by 20 U.S.C. Section 1415(b), is required to:                            (i) [(A)]  complete a training program that   complies with minimum standards established by agency rule;                            (ii) [(B)]  visit the child and the child's   school;                            (iii) [(C)]  consult with persons involved   in the child's education, including teachers, caseworkers,   court-appointed volunteers, guardians ad litem, attorneys ad   litem, foster parents, and caretakers;                            (iv) [(D)]  review the child's educational   records;                            (v) [(E)]  attend meetings of the child's   admission, review, and dismissal committee;                            (vi) [(F)]  exercise independent judgment   in pursuing the child's interests; and                            (vii) [(G)]  exercise the child's due   process rights under applicable state and federal law; and                      (F)  [(11)  ensure that] each district develops a   process to be used by a teacher who instructs a student with a   disability in a regular classroom setting:                            (i) [(A)]  to request a review of the   student's individualized education program;                            (ii) [(B)]  to provide input in the   development of the student's individualized education program;                            (iii) [(C)]  that provides for a timely   district response to the teacher's request; and                            (iv) [(D)]  that provides for notification   to the student's parent or legal guardian of that response.          SECTION 4.02.  Subchapter A, Chapter 29, Education Code, is   amended by adding Section 29.0012 to read as follows:          Sec. 29.0012.  ANNUAL MEETING ON SPECIAL EDUCATION. (a)  At   least once each year, the board of trustees of a school district or   the governing body of an open-enrollment charter school shall   include during a public meeting a discussion of the performance of   students receiving special education services at the district or   school.          (b)  The agency by rule shall adopt a set of performance   indicators for measuring and evaluating the quality of learning and   achievement for students receiving special education services at   the school district or open-enrollment charter school to be   considered at a meeting held under this section.  The indicators   must include performance on the college, career, or military   readiness outcomes described by Section 48.110.          SECTION 4.03.  Section 29.003, Education Code, is amended to   read as follows:          Sec. 29.003.  ELIGIBILITY CRITERIA.  (a)  The agency shall   develop specific eligibility criteria based on the general   classifications established by this section and in accordance with   federal law [with reference to contemporary diagnostic or   evaluative terminologies and techniques].  Eligible students with   disabilities shall enjoy the right to a free appropriate public   education, which may include instruction in the regular classroom,   instruction through special teaching, or instruction through   contracts approved under this subchapter.  Instruction shall be   supplemented by the provision of related services when appropriate.          (b)  A student is eligible to participate in a school   district's special education program [if the student]:                (1)  from birth through [is not more than] 21 years of   age if the student [and] has a visual [or auditory] impairment or is   deaf or hard of hearing and that disability prevents the student   from being adequately or safely educated in public school without   the provision of special education services; [or]                (2)  from three years of age through five years of age   if the student is experiencing developmental delays as described by   20 U.S.C. Section 1401(3)(B) and defined by commissioner rule; or                (3)  from 3 years of age through [is at least three but   not more than] 21 years of age if the student [and] has one or more   of the [following] disabilities described by 20 U.S.C. Section   1401(3)(A) and that disability prevents the student from being   adequately or safely educated in public school without the   provision of special education services[:                      [(A)  physical disability;                      [(B)  intellectual or developmental disability;                      [(C)  emotional disturbance;                      [(D)  learning disability;                      [(E)  autism;                      [(F)  speech disability; or                      [(G)  traumatic brain injury].          SECTION 4.04.  Subchapter A, Chapter 29, Education Code, is   amended by adding Section 29.0056 to read as follows:          Sec. 29.0056.  INFORMATION REGARDING STATE SUPPORTED LIVING   CENTERS. (a)  In this section, "state supported living center" has   the meaning assigned by Section 531.002, Health and Safety Code.          (b)  The Health and Human Services Commission, in   collaboration with the agency and stakeholders who represent the   full continuum of educational residential placement options, shall   develop and provide to the agency materials regarding educational   residential placement options for children who may qualify for   placement in a state supported living center. The agency shall make   the materials developed under this subsection available to school   districts.          (c)  At a meeting of a child's admission, review, and   dismissal committee at which residential placement is discussed,   the school district shall provide to the child's parent the   materials developed under Subsection (b).          SECTION 4.05.  Section 29.008, Education Code, is amended by   amending Subsections (a) and (b) and adding Subsection (a-1) to   read as follows:          (a)  The commissioner shall establish a list of approved   public or private facilities, institutions, or agencies inside or   outside of this state that a [A] school district, shared services   arrangement unit, or regional education service center may contract   with [a public or private facility, institution, or agency inside   or outside of this state] for the provision of services to students   with disabilities in a residential placement.  The commissioner may   approve either the whole or a part of a facility or program.          (a-1)  Each contract described by this section [for   residential placement] must be approved by the commissioner.  The   commissioner may approve a [residential placement] contract under   this section only after at least a programmatic evaluation of   personnel qualifications, costs, adequacy of physical plant and   equipment, and curriculum content.  [The commissioner may approve   either the whole or a part of a facility or program.]          (b)  Except as provided by Subsection (c), costs of an   approved contract for residential placement may be paid from a   combination of federal, state, and local funds.  The local share of   the total contract cost for each student is that portion of the   local tax effort that exceeds the district's local fund assignment   under Section 48.256, divided by the average daily attendance in   the district.  If the contract involves a private facility, the   state share of the total contract cost is that amount remaining   after subtracting the local share.  If the contract involves a   public facility, the state share is that amount remaining after   subtracting the local share from the portion of the contract that   involves the costs of instructional and related services.  For   purposes of this subsection, "local tax effort" means the total   amount of money generated by taxes imposed for debt service and   maintenance and operation less any amounts paid into a tax   increment fund under Chapter 311, Tax Code.  This subsection   expires September 1, 2027.          SECTION 4.06.  The heading to Section 29.009, Education   Code, is amended to read as follows:          Sec. 29.009.  PUBLIC NOTICE CONCERNING EARLY CHILDHOOD   SPECIAL EDUCATION [PRESCHOOL] PROGRAMS [FOR STUDENTS WITH   DISABILITIES].          SECTION 4.07.  Section 29.010, Education Code, is amended to   read as follows:          Sec. 29.010.  GENERAL SUPERVISION AND COMPLIANCE.  (a)  The   agency shall develop [adopt] and implement a comprehensive system   for monitoring school district compliance with federal and state   laws relating to special education.  The monitoring system must   include a comprehensive cyclical process and a targeted risk-based   process [provide for ongoing analysis of district special education   data and of complaints filed with the agency concerning special   education services and for inspections of school districts at   district facilities].  The agency shall establish criteria and   instruments for use in determining district compliance under this   section [use the information obtained through analysis of district   data and from the complaints management system to determine the   appropriate schedule for and extent of the inspection].          (b)  As part of the monitoring process [To complete the   inspection], the agency must obtain information from parents and   teachers of students in special education programs in the district.          (c)  The agency shall develop and implement a system of   interventions and sanctions for school districts the agency   identifies as being in noncompliance with [whose most recent   monitoring visit shows a failure to comply with major requirements   of] the Individuals with Disabilities Education Act (20 U.S.C.   Section 1400 et seq.), federal regulations, state statutes, or   agency requirements necessary to carry out federal law or   regulations or state law relating to special education.          (d)  The agency shall establish a graduated process of   sanctions to apply to [For] districts that remain in noncompliance   for more than one year[, the first stage of sanctions shall begin   with annual or more frequent monitoring visits]. The [Subsequent]   sanctions shall [may] range in severity and may include [up to] the   withholding of funds.  If funds are withheld, the agency may use the   funds to provide, through alternative arrangements, services to   students and staff members in the district from which the funds are   withheld.          (e)  The agency's complaint management division shall   develop a system for expedited investigation and resolution of   complaints concerning a district's failure to provide special   education or related services to a student eligible to participate   in the district's special education program.          [(f)  This section does not create an obligation for or   impose a requirement on a school district or open-enrollment   charter school that is not also created or imposed under another   state law or a federal law.]          SECTION 4.08.  Section 29.018, Education Code, is amended by   adding Subsection (g) to read as follows:          (g)  This section expires September 1, 2026.          SECTION 4.09.  Subchapter A, Chapter 29, Education Code, is   amended by adding Sections 29.026, 29.027, and 29.029 to read as   follows:          Sec. 29.026.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS   WITH AUTISM. (a)  The commissioner shall establish a program to   award grants to school districts and open-enrollment charter   schools that provide innovative services to students with autism.          (b)  A school district, including a school district acting   through a district charter issued under Subchapter C, Chapter 12,   and an open-enrollment charter school, including a charter school   that primarily serves students with disabilities, as provided under   Section 12.1014, may apply for a grant under this section.          (c)  A program is eligible for a grant under this section if   the program:                (1)  incorporates:                      (A)  evidence-based and research-based design;                      (B)  the use of empirical data on student   achievement and improvement;                      (C)  parental support and collaboration;                      (D)  the use of technology;                      (E)  meaningful inclusion; and                      (F)  the ability to replicate the program for   students statewide; and                (2)  gives priority for enrollment to students with   autism.          (d)  A school district or open-enrollment charter school may   not:                (1)  charge a fee for the program, other than those   authorized by law for students in public schools;                (2)  require a parent to enroll a child in the program;                (3)  allow an admission, review, and dismissal   committee to place a student in the program without the written   consent of the student's parent or guardian; or                (4)  continue the placement of a student in the program   after the student's parent or guardian revokes consent, in writing,   to the student's placement in the program.          (e)  A program under this section may:                (1)  alter the length of the school day or school year   or the number of minutes of instruction received by students;                (2)  coordinate services with private or   community-based providers;                (3)  allow the enrollment of students without   disabilities or with other disabilities, if approved by the   commissioner; and                (4)  adopt staff qualifications and staff to student   ratios that differ from the applicable requirements of this title.          (f)  The commissioner shall create an external panel of   stakeholders, including parents of students with disabilities, to   provide assistance in the selection of applications for the award   of grants under this section.          (g)  In selecting programs to receive a grant under this   section, the commissioner shall prioritize programs that are   collaborations between multiple school districts, multiple charter   schools, or school districts and charter schools.  The selected   programs must reflect the diversity of this state.          (h)  A program selected to receive a grant under this section   is to be funded for two years.          (i)  A grant awarded to a school district or open-enrollment   charter school under this section is in addition to the Foundation   School Program funds that the district or charter school is   otherwise entitled to receive.  A grant awarded under this section   may not come out of Foundation School Program funds.          (j)  The commissioner shall use funds appropriated or   otherwise available to fund grants under this section.          (k)  The commissioner and any program selected under this   section may accept gifts, grants, and donations from any public or   private source, person, or group to implement and administer the   program.  The commissioner and any program selected under this   section may not require any financial contribution from parents to   implement and administer the program.          (l)  A regional education service center may administer   grants awarded under this section.          Sec. 29.027.  GRANT PROGRAM PROVIDING TRAINING IN DYSLEXIA   FOR TEACHERS AND STAFF. (a)  The commissioner shall establish a   program to award grants to school districts and open-enrollment   charter schools to increase local capacity to appropriately serve   students with dyslexia.          (b)  A school district, including a school district acting   through a district charter issued under Subchapter C, Chapter 12,   or an open-enrollment charter school, including a charter school   that primarily serves students with disabilities, as provided under   Section 12.1014, is eligible to apply for a grant under this section   if the district or school submits to the commissioner a proposal on   the use of grant funds that:                (1)  incorporates  evidence-based and research-based   design; and                (2)  increases local capacity to appropriately serve   students with dyslexia by providing:                      (A)  high-quality training to classroom teachers   and administrators in meeting the needs of students with dyslexia;   or                      (B)  training to intervention staff resulting in   appropriate credentialing related to dyslexia.          (c)   The commissioner shall create an external panel of   stakeholders, including parents of students with disabilities, to   provide assistance in the selection of applications for the award   of grants under this section.          (d)  A grant under this section is to be awarded for two   years.          (e)  A grant awarded to a school district or open-enrollment   charter school under this section is in addition to the Foundation   School Program funds that the district or charter school is   otherwise entitled to receive. A grant awarded under this section   may not come out of Foundation School Program funds.          (f)  The commissioner shall use funds appropriated or   otherwise available to fund grants under this section.          (g)  The commissioner and any grant recipient selected under   this section may accept gifts, grants, and donations from any   public or private source, person, or group to implement and   administer the grant.  The commissioner and any grant recipient   selected under this section may not require any financial   contribution from parents to implement and administer the grant.          (h)  A regional education service center may administer   grants awarded under this section.          Sec. 29.029.  SUPPORTS FOR RECRUITING SPECIAL EDUCATION   STAFF. (a) From funds appropriated or otherwise available for the   purpose, the agency shall provide grants to school districts and   open-enrollment charter schools to increase the number of qualified   and appropriately credentialed special education staff, including   special education teachers, special education paraprofessionals,   evaluation personnel, ancillary instruction personnel, and related   service personnel.          (b)  A school district or open-enrollment charter school   that receives a grant under this section shall require each person   the district or school uses the grant money to assist in becoming   licensed, certified, or otherwise credentialed as described by   Subsection (a) to work at the district or school for a period   established by commissioner rule.          (c)  The commissioner shall adopt rules establishing the   period of required employment described by Subsection (b) and any   other rules necessary to implement this section.          SECTION 4.10.  The heading to Subchapter A-1, Chapter 29,   Education Code, is amended to read as follows:   SUBCHAPTER A-1. PARENT-DIRECTED [SUPPLEMENTAL SPECIAL EDUCATION]   SERVICES FOR STUDENTS RECEIVING SPECIAL EDUCATION SERVICES   [PROGRAM]          SECTION 4.11.  Sections 29.041(2) and (3), Education Code,   are amended to read as follows:                (2)  "Supplemental [special education] instructional   materials" includes textbooks, computer hardware or software,   other technological devices, and other materials suitable for   addressing an educational need of a student receiving special   education services under Subchapter A.                (3)  "Supplemental [special education] services" means   an additive service that provides an educational benefit to a   student receiving special education services under Subchapter A,   including:                      (A)  occupational therapy, physical therapy, and   speech therapy; and                      (B)  private tutoring and other supplemental   private instruction or programs.          SECTION 4.12.  Section 29.042(a), Education Code, is amended   to read as follows:          (a)  The agency by rule shall establish and administer a   parent-directed [supplemental special education services and   instructional materials] program for students receiving special   education services through which a parent may direct supplemental   services and supplemental instructional materials for the parent's   student [students] who meets [meet] the eligibility requirements   for participation in the program. Subject to Subsection (c), the   agency shall provide each student approved as provided by this   subchapter a grant in the amount provided under Section 48.306 [of   not more than $1,500] to purchase supplemental [special education]   services and supplemental [special education] instructional   materials.  A student may receive one grant under this subchapter   unless the legislature appropriates money for an additional grant   in the General Appropriations Act.          SECTION 4.13.  Section 29.045, Education Code, is amended to   read as follows:          Sec. 29.045.  APPROVAL OF APPLICATION; ASSIGNMENT OF   ACCOUNT. The [Subject to available funding the] agency shall   approve each student who meets the program eligibility criteria   established under Section 29.044 and assign to the student an   account maintained under Section 29.042(b). The account may only   be used by the student's parent to purchase supplemental [special   education] services or supplemental [special education]   instructional materials for the student, subject to Sections 29.046   and 29.047.          SECTION 4.14.  Sections 29.046(a) and (b), Education Code,   are amended to read as follows:          (a)  Money in an account assigned to a student under Section   29.045 may be used only for supplemental [special education]   services and supplemental [special education] instructional   materials.          (b)  Supplemental [special education] services must be   provided by an agency-approved provider.          SECTION 4.15.  Sections 29.047(a), (c), (d), and (e),   Education Code, are amended to read as follows:          (a)  The agency shall establish criteria necessary for   agency approval for each category of provider of a professional   service that is a supplemental [special education] service, as   identified by the agency.          (c)  The agency shall provide a procedure for providers of   supplemental [special education] services to apply to the agency to   become an agency-approved provider.          (d)  The agency may establish criteria for agency approval of   vendors for each category of supplemental [special education]   instructional materials identified by the agency.          (e)  If the agency establishes criteria for agency approval   for a vendor of a category of supplemental [special education]   instructional materials, the agency shall provide a procedure for   vendors of that category to apply to the agency to become an   agency-approved vendor.          SECTION 4.16.  Subchapter A-1, Chapter 29, Education Code,   is amended by adding Section 29.0475 to read as follows:          Sec. 29.0475.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR   AUTONOMY. (a) A provider of supplemental services or vendor of   supplemental instructional materials that receives money   distributed under the program is not a recipient of federal   financial assistance on the basis of receiving that money.          (b)  A rule adopted or action taken related to the program by   an individual, governmental entity, court of law, or program   administrator may not:                (1)  consider the actions of a provider of supplemental   services, vendor of supplemental instructional materials, or   program participant to be the actions of an agent of state   government;                (2)  limit:                      (A)  a provider of supplemental services' ability   to determine the methods used to educate the provider's students or   to exercise the provider's religious or institutional values; or                      (B)  a program participant's ability to determine   the participant's educational content or to exercise the   participant's religious values;                (3)  obligate a provider of supplemental services or   program participant to act contrary to the provider's or   participant's religious or institutional values, as applicable;                (4)  impose any regulation on a provider of   supplemental services, vendor of supplemental instructional   materials, or program participant beyond those regulations   necessary to enforce the requirements of the program; or                (5)  require as a condition of receiving money   distributed under the program:                      (A)  a provider of supplemental services to modify   the provider's creed, practices, admissions policies, curriculum,   performance standards, employment policies, or assessments; or                      (B)  a program participant to modify the   participant's creed, practices, curriculum, performance standards,   or assessments.          (c)  In a proceeding challenging a rule adopted by a state   agency or officer under this subchapter, the agency or officer has   the burden of proof to establish by clear and convincing evidence   that the rule:                (1)  is necessary to implement or enforce the program   as provided by this subchapter;                (2)  does not violate this section;                (3)  does not impose an undue burden on a program   participant or a provider of supplemental services or vendor of   supplemental instructional materials that participates or applies   to participate in the program; and                (4)  is the least restrictive means of accomplishing   the purpose of the program while recognizing the independence of a   provider of supplemental services to meet the educational needs of   students in accordance with the provider's religious or   institutional values.          SECTION 4.17.  Section 29.048, Education Code, is amended to   read as follows:          Sec. 29.048.  ADMISSION, REVIEW, AND DISMISSAL COMMITTEE   DUTIES. (a) A student's admission, review, and dismissal   committee shall develop a student's individualized education   program under Section 29.005, in compliance with the Individuals   with Disabilities Education Act (20 U.S.C. Section 1400 et seq.),   without consideration of any supplemental [special education]   services or supplemental instructional materials that may be   provided under the program under this subchapter.          (b)  Unless the district first verifies that an account has   been assigned to the student under Section 29.045, the [The]   admission, review, and dismissal committee of a student approved   for participation in the program shall provide to the student's   parent at an admission, review, and dismissal committee meeting for   the student:                (1)  information regarding the types of supplemental   [special education] services or supplemental instructional   materials available under the program and provided by   agency-approved providers for which an account maintained under   Section 29.042(b) for the student may be used; and                (2)  instructions regarding accessing an account   described by Subdivision (1).          SECTION 4.18.  Subchapter A-1, Chapter 29, Education Code,   is amended by adding Section 29.0485 to read as follows:          Sec. 29.0485.  DETERMINATION OF COMMISSIONER FINAL.   Notwithstanding Section 7.057, a determination of the commissioner   under this subchapter is final and may not be appealed.          SECTION 4.19.  Section 29.049, Education Code, is amended to   read as follows:          Sec. 29.049.  RULES. The commissioner shall adopt rules as   necessary to administer the supplemental [special education]   services and supplemental instructional materials program under   this subchapter.          SECTION 4.20.  Section 29.315, Education Code, is amended to   read as follows:          Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF   UNDERSTANDING. The Texas Education Agency and the Texas School for   the Deaf shall develop[, agree to, and by commissioner rule adopt no   later than September 1, 1998,] a memorandum of understanding to   establish:                (1)  the method for developing and reevaluating a set   of indicators of the quality of learning at the Texas School for the   Deaf;                (2)  the process for the agency to conduct and report on   an annual evaluation of the school's performance on the indicators;                (3)  the requirements for the school's board to   publish, discuss, and disseminate an annual report describing the   educational performance of the school;                (4)  the process for the agency to assign an   accreditation status to the school, to reevaluate the status on an   annual basis, and, if necessary, to conduct monitoring reviews; and                (5)  the type of information the school shall be   required to provide through the Public Education Information   Management System (PEIMS).          SECTION 4.21.  Section 30.001(b), Education Code, is amended   to read as follows:          (b)  The commissioner, with the approval of the State Board   of Education, shall develop and implement a plan for the   coordination of services to children with disabilities in each   region served by a regional education service center.  The plan   must include procedures for:                (1)  identifying existing public or private   educational and related services for children with disabilities in   each region;                (2)  identifying and referring children with   disabilities who cannot be appropriately served by the school   district in which they reside to other appropriate programs;                (3)  assisting school districts to individually or   cooperatively develop programs to identify and provide appropriate   services for children with disabilities;                (4)  expanding and coordinating services provided by   regional education service centers for children with disabilities;   and                (5)  providing for special education supports   [services], including special seats, books, instructional media,   and other supplemental supplies and services required for proper   instruction.          SECTION 4.22.  Section 30.002(g), Education Code, is amended   to read as follows:          (g)  To facilitate implementation of this section, the   commissioner shall develop a system to distribute from the   foundation school fund to school districts or regional education   service centers a special supplemental allowance for each student   with a visual impairment and for each student with a serious visual   disability and another medically diagnosed disability of a   significantly limiting nature who is receiving special education   services through any approved program.  The supplemental allowance   may be spent only for special education services uniquely required   by the nature of the student's disabilities and may not be used in   lieu of educational funds otherwise available under this code or   through state or local appropriations.          SECTION 4.23.  Section 30.005, Education Code, is amended to   read as follows:          Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY   IMPAIRED MEMORANDUM OF UNDERSTANDING.  The Texas Education Agency   and the Texas School for the Blind and Visually Impaired shall   develop[, agree to, and by commissioner rule adopt] a memorandum of   understanding to establish:                (1)  the method for developing and reevaluating a set   of indicators of the quality of learning at the Texas School for the   Blind and Visually Impaired;                (2)  the process for the agency to conduct and report on   an annual evaluation of the school's performance on the indicators;                (3)  the requirements for the school's board to   publish, discuss, and disseminate an annual report describing the   educational performance of the school;                (4)  the process for the agency to:                      (A)  assign an accreditation status to the school;                      (B)  reevaluate the status on an annual basis; and                      (C)  if necessary, conduct monitoring reviews;   and                (5)  the type of information the school shall be   required to provide through the Public Education Information   Management System (PEIMS).          SECTION 4.24.  Section 37.146(a), Education Code, as   effective until January 1, 2025, is amended to read as follows:          (a)  A complaint alleging the commission of a school offense   must, in addition to the requirements imposed by Article 45.019,   Code of Criminal Procedure:                (1)  be sworn to by a person who has personal knowledge   of the underlying facts giving rise to probable cause to believe   that an offense has been committed; and                (2)  be accompanied by a statement from a school   employee stating:                      (A)  whether the child is eligible for or receives   special education services under Subchapter A, Chapter 29; and                      (B)  the graduated sanctions, if required under   Section 37.144, that were imposed on the child before the complaint   was filed.          SECTION 4.25.  Section 37.146(a), Education Code, as   effective January 1, 2025, is amended to read as follows:          (a)  A complaint alleging the commission of a school offense   must, in addition to the requirements imposed by Article 45A.101,   Code of Criminal Procedure:                (1)  be sworn to by a person who has personal knowledge   of the underlying facts giving rise to probable cause to believe   that an offense has been committed; and                (2)  be accompanied by a statement from a school   employee stating:                      (A)  whether the child is eligible for or receives   special education services under Subchapter A, Chapter 29; and                      (B)  the graduated sanctions, if required under   Section 37.144, that were imposed on the child before the complaint   was filed.          SECTION 4.26.  Section 48.265(a), Education Code, is amended   to read as follows:          (a)  If [Notwithstanding any other provision of law, if] the   commissioner determines that the amount appropriated for the   purposes of the Foundation School Program exceeds the amount to   which school districts are entitled under this chapter, the   commissioner may provide [by rule shall establish a grant program   through which excess funds are awarded as] grants using the excess   money for the purchase of video equipment, or for the reimbursement   of costs for previously purchased video equipment, used for   monitoring special education classrooms or other special education   settings required under Section 29.022.          SECTION 4.27.  Section 29.002, Education Code, is repealed.          SECTION 4.28.  This article takes effect immediately if this   Act receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.   If this Act does not receive the vote necessary for immediate   effect, this article takes effect on the 91st day after the last day   of the legislative session.   ARTICLE 5. EDUCATION SAVINGS ACCOUNT PROGRAM          SECTION 5.01.  Chapter 29, Education Code, is amended by   adding Subchapter J to read as follows:   SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM          Sec. 29.351.  DEFINITIONS. In this subchapter:                (1)  "Account" means an education savings account   established under the program.                (2)  "Certified educational assistance organization"   means an organization certified under Section 29.354 to support the   administration of the program.                (3)  "Child with a disability" means a child who is   eligible to participate in a school district's special education   program under Section 29.003.                (4)  "Higher education provider" means an institution   of higher education or a private or independent institution of   higher education, as those terms are defined by Section 61.003.                (5)  "Parent" means a resident of this state who is a   natural or adoptive parent, managing or possessory conservator,   legal guardian, custodian, or other person with legal authority to   act on behalf of a child.                (6)  "Participating child" means a child enrolled in   the program.                (7)  "Participating parent" means a parent of a   participating child who submitted an application under Section   29.356 on behalf of the child.                (8)  "Program" means the program established under this   subchapter.                (9)  "Program participant" means a participating child   or a participating parent.          Sec. 29.352.  ESTABLISHMENT OF PROGRAM. The comptroller   shall establish a program to provide funding for approved   education-related expenses of participating children.          Sec. 29.353.  PROGRAM FUND. (a) The program fund is an   account in the general revenue fund to be administered by the   comptroller.          (b)  The fund is composed of:                (1)  money appropriated to the fund;                (2)  gifts, grants, and donations received under   Section 29.370; and                (3)  any other money available for purposes of the   program.          (c)  Money in the fund may be appropriated only for the uses   specified by this subchapter.          (d)  The governor and the Legislative Budget Board may not   transfer or repurpose money under a proposal under Chapter 317,   Government Code, to provide funding to administer the program.          Sec. 29.3535.  PROMOTION OF PROGRAM.  Notwithstanding   Chapter 2113, Government Code, the comptroller or the comptroller's   designee may enter into contracts or agreements and engage in   marketing, advertising, and other activities to promote, market,   and advertise the development and use of the program. The   comptroller may use money from the program fund to pay for   activities authorized under this section.          Sec. 29.354.  SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE   ORGANIZATIONS. (a) An organization may apply to the comptroller   for certification as a certified educational assistance   organization during an application period established by the   comptroller.          (b)  To be eligible for certification, an organization must:                (1)  have the ability to perform one or more of the   duties and functions required of a certified educational assistance   organization under this subchapter;                (2)  be in good standing with the state; and                (3)  be able to assist the comptroller in administering   the program in whole or in part, such as the ability to:                      (A)  accept, process, and track applications for   the program;                      (B)  assist prospective applicants, applicants,   and program participants with finding preapproved education   service providers and vendors of educational products;                      (C)  accept and process payments for approved   education-related expenses; and                      (D)  verify that program funding is used only for   approved education-related expenses.          (c)  The comptroller may certify one or more educational   assistance organizations to support the administration of the   program, including by:                (1)  administering in whole or in part:                      (A)  the application process under Section   29.356; and                      (B)  the program expenditures process under   Section 29.360; and                (2)  assisting prospective applicants, applicants, and   program participants with understanding approved education-related   expenses and finding preapproved education service providers and   vendors of educational products.          (d)  A certified educational assistance organization is not   considered to be a provider of professional or consulting services   under Chapter 2254, Government Code.          Sec. 29.355.  ELIGIBLE CHILD. (a) A child is eligible to   participate in the program and may, subject to available funding   and the requirements of this subchapter, initially enroll in the   program for the following school year if the child is eligible to   attend a public school under Section 25.001 and:                (1)  either:                      (A)  was enrolled in a public school in this state   for at least 90 percent of the school year preceding the school year   for which the child applies to enroll in the program;                      (B)  is enrolling in kindergarten or first grade   for the first time; or                      (C)  attended a private school on a full-time   basis or was home-schooled for the preceding school year; or                (2)  is a sibling of a child who is eligible to   participate in the program and:                      (A)  applies to enroll in the program for the same   school year in which the sibling applies to enroll in the program;   or                      (B)  is participating in the program.          (b)  A child who establishes eligibility under this section   may, subject to available funding and the requirements of this   subchapter, participate in the program until the earliest of the   following dates:                (1)  the date on which the child graduates from high   school;                (2)  the date on which the child is no longer eligible   to attend a public school under Section 25.001;                (3)  the date on which the child enrolls in a public   school, including an open-enrollment charter school, in a manner in   which the child will be counted toward the school's average daily   attendance for purposes of the allocation of funding under the   foundation school program;                (4)  for a child who performed satisfactorily on an   assessment instrument administered under Subchapter B, Chapter 39,   in the school year preceding the child's enrollment in the program,   the date of the first day of the school year following the school   year in which the child fails to perform satisfactorily for the   second consecutive year in the same subject area on an assessment   instrument required under Section 29.371; or                (5)  the date on which the child is declared ineligible   for the program by the comptroller under this subchapter.          (c)  Notwithstanding Subsection (a) or (b), a child is not   eligible to participate in the program during the period in which   the child's parent or legal guardian is a state representative or   state senator.          Sec. 29.3551.  PROGRAM ENROLLMENT. (a) For the 2024-2025   school year, the total amount of children participating in the   program may not exceed 25,000.           (b)  For the 2025-2026 and 2026-2027 school years, the total   amount of children participating in the program may not exceed the   sum of:                 (1)  the number of children who participated in the   program during the preceding school year; and                (2)  25,000.          (c)  This section expires September 1, 2027.          Sec. 29.356.  APPLICATION TO PROGRAM. (a) A parent of an   eligible child may apply to a certified educational assistance   organization designated by the comptroller to enroll the child in   the program for the following school year. The comptroller shall   establish deadlines by which an applicant must complete and submit   an application form to participate in the program.          (b)  On receipt of more acceptable applications during an   application period for admission under this section than available   positions in the program due to insufficient funding, a certified   educational assistance organization shall, at the direction of the   comptroller, prioritize applicants:                (1)  in the following order:                      (A)  children to whom Paragraph (B) does not   apply; and                      (B)  children who previously ceased participation   in the program due to enrollment in a public school; and                (2)  within each of the groups described by Subdivision   (1), as follows, as applicable:                      (A)  children with a disability who are members of   a household with a total annual income that is at or below 400   percent of the federal poverty guidelines;                      (B)  children who are members of a household with   a total annual income that is at or below 185 percent of the federal   poverty guidelines;                      (C)  children who are members of a household with   a total annual income that is above 185 percent of the federal   poverty guidelines and below 400 percent of the federal poverty   guidelines; and                      (D)  children who are members of a household with   a total annual income that is at or above 400 percent of the federal   poverty guidelines.          (b-1)  For purposes of Subsection (b), a certified   educational assistance organization shall prioritize a   participating child's sibling who is initially eligible to   participate in the program under Section 29.355(a)(2) in the same   manner as the participating child.          (b-2)  The agency shall provide to the comptroller the   information necessary to make the determinations required under   Subsection (b).          (c)  The comptroller shall create an application form for the   program and ensure the application form is made readily available   through various sources, including a certified educational   assistance organization's Internet website. The application form   must state the application deadlines established by the comptroller   under Subsection (a). Each certified educational assistance   organization designated under Subsection (a) shall ensure that the   application form, including any required supporting document, is   capable of being submitted to the organization electronically.          (d)  The comptroller shall create and maintain a waiting list   based on the priority categories described by Subsection (b) for   applicants if, during an application period, there are more   acceptable applications for admission than there are available   positions.          (e)  Each certified educational assistance organization   designated under Subsection (a) shall post on the organization's   Internet website program information for prospective applicants,   including:                (1)  a description of the program;                (2)  expenses allowed under the program under Section   29.359;                (3)  a link to a list of preapproved education service   providers and vendors of educational products under Section 29.358;                (4)  a description of the application process;                (5)  a description of the applicant selection process;                (6)  a description of the program expenditures process   under Section 29.360; and                (7)  a description of the responsibilities of program   participants.          (f)  A certified educational assistance organization shall   produce and provide to each participating parent a   comptroller-approved program participant handbook that includes:                (1)  information regarding expenses allowed under the   program under Section 29.359;                (2)  if the handbook is provided electronically, a link   to  a list of preapproved education service providers and vendors of   educational products under Section 29.358;                (3)  a description of the program expenditures process   under Section 29.360; and                (4)  a description of the responsibilities of program   participants.          (g)  Each certified educational assistance organization   designated under Subsection (a) shall on enrollment and annually   provide to each participating parent the information described by   Subsections (e) and (f). The organization may provide the   information electronically.          (h)  The comptroller or a certified educational assistance   organization designated under Subsection (a):                (1)  may require a participating parent to submit   annual notice regarding the parent's intent for the child to   continue participating in the program for the next school year; and                (2)  may not require a program participant in good   standing to annually resubmit an application for continued   participation in the program.          Sec. 29.357.  PARTICIPATION IN PROGRAM. To receive funding   under the program, a participating parent must agree to:                (1)  spend money received through the program only for   expenses allowed under Section 29.359;                (2)  ensure the administration of assessment   instruments to the participating child in accordance with Section   29.371 and share or authorize administrators of assessment   instruments to share with the child's certified educational   assistance organization the results of those assessment   instruments;                (3)  refrain from selling an item purchased with   program money while the child is participating in the program; and                (4)  notify the applicable certified educational   assistance organization not later than 30 days after the date on   which the child:                      (A)  enrolls in a public school, including an   open-enrollment charter school in a manner in which the child will   be counted toward the school's average daily attendance for   purposes of the allocation of funding under the foundation school   program;                      (B)  graduates from high school; or                      (C)  is no longer eligible to enroll in a public   school under Section 25.001.          Sec. 29.358.  PREAPPROVED PROVIDERS AND VENDORS. (a) The   comptroller shall by rule establish a process for the preapproval   of education service providers and vendors of educational products   for participation in the program. The comptroller shall allow for   the submission of applications on a rolling basis.          (b)  The comptroller shall approve an education service   provider or vendor of educational products for participation in the   program if the provider or vendor:                (1)  has previously been approved by the agency to   provide supplemental special education services under Subchapter   A-1 and remains in good standing with the agency;                (2)  for a private school, demonstrates accreditation   by an organization recognized by:                      (A)  the Texas Private School Accreditation   Commission; or                      (B)  the agency;                (3)  for a public school, demonstrates:                      (A)  accreditation by the agency; and                      (B)  the ability to provide services or products   to participating children in a manner in which the children are not   counted toward the school's average daily attendance;                (4)  for a private tutor, therapist, or teaching   service, demonstrates that:                      (A)  the tutor or therapist or each employee of   the teaching service who intends to provide educational services to   a participating child:                            (i)  is an educator employed by or a retired   educator formerly employed by a school accredited by the agency, an   organization recognized by the agency, or an organization   recognized by the Texas Private School Accreditation Commission;                            (ii)  holds a relevant license or   accreditation issued by a state, regional, or national   certification or accreditation organization; or                            (iii)  is employed in or retired from a   teaching or tutoring capacity at a higher education provider;                      (B)  the tutor or therapist or each employee of   the teaching service who intends to provide educational services to   a participating child provided to the comptroller a national   criminal history record information review completed by the tutor,   therapist, or employee, as applicable, within a period established   by comptroller rule; and                      (C)  the tutor or therapist or each employee of   the teaching service who intends to provide educational services to   a participating child is not:                            (i)  required to be discharged or refused to   be hired by a school district under Section 22.085; or                            (ii)  included in the registry under Section   22.092; or                (5)  for a higher education provider, demonstrates   nationally recognized postsecondary accreditation.          (c)  The comptroller shall review the national criminal   history record information or documentation for each private tutor,   therapist, or teaching service employee who submits information or   documentation under this section. The tutor, therapist, or service   must provide the comptroller with any information requested by the   comptroller to enable the comptroller to complete the review.          (d)  An education service provider or vendor of educational   products shall provide information requested by the comptroller to   verify the provider's or vendor's eligibility for preapproval under   Subsection (b). The comptroller may not approve a provider or   vendor if the comptroller cannot verify the provider's or vendor's   eligibility for preapproval.          (e)  An education service provider or vendor of educational   products must agree to:                (1)  abide by the disbursement schedule under Section   29.360(c) and all other requirements of this subchapter;                (2)  accept money from the program only for   education-related expenses approved under Section 29.359;                (3)  notify the comptroller not later than the 30th day   after the date that the provider or vendor no longer meets the   requirements of this section; and                (4)  return any money received in violation of this   subchapter or other relevant law to the comptroller for deposit   into the program fund.          (f)  An education service provider or vendor of educational   products that receives approval under this section may participate   in the program until the earliest of the date on which the provider   or vendor:                (1)  no longer meets the requirements under this   section; or                (2)  violates this subchapter or other relevant law.          (g)  This section may not be construed to allow a learning   pod, as defined by Section 27.001, or a home school to qualify as an   approved education service provider or vendor of educational   products.          Sec. 29.359.  APPROVED EDUCATION-RELATED EXPENSES. (a)   Subject to Subsection (b), money received under the program may be   used only for the following education-related expenses incurred by   a participating child at a preapproved education service provider   or vendor of educational products:                (1)  tuition and fees for:                      (A)  a private school;                      (B)  a higher education provider;                      (C)  an online educational course or program; or                      (D)  a program that provides training for an   industry-based credential;                (2)  the purchase of textbooks or other instructional   materials or uniforms required by a private school, higher   education provider, or course in which the child is enrolled,   including purchases made through a third-party vendor of   educational products;                (3)  fees for classes or other educational services   provided by a public school, including an open-enrollment charter   school, if the classes or services do not qualify the child to be   included in the school's average daily attendance;                (4)  costs related to academic assessments;                (5)  fees for services provided by a private tutor or   teaching service;                (6)  fees for transportation provided by a   fee-for-service transportation provider for the child to travel to   and from a preapproved education service provider or vendor of   educational products;                (7)  fees for educational therapies or services   provided by a practitioner or provider, only for fees that are not   covered by any federal, state, or local government benefits such as   Medicaid or the Children's Health Insurance Program (CHIP) or by   any private insurance that the child is enrolled in at the time of   receiving the therapies or services;                (8)  costs of computer hardware and software and other   technological devices prescribed by a physician to facilitate a   child's education, not to exceed in any year 10 percent of the total   amount paid to the participating child's account that year;                (9)  costs of breakfast or lunch provided to a child   during the school day by a private school; and                (10)  before- and after-school academic child care.          (b)  Money received under the program may not be used to pay   any person who is related to the program participant within the   third degree by consanguinity or affinity, as determined under   Chapter 573, Government Code.          (c)  A finding that a program participant used money   distributed under the program to pay for an expense not allowed   under Subsection (a) does not affect the validity of any payment   made by the participant for an approved education-related expense   that is allowed under that subsection.          Sec. 29.360.  PROGRAM EXPENDITURES. (a) The comptroller   shall disburse from the program fund to each certified educational   assistance organization the amount specified under Section   29.361(a) for each participating child for which the organization   is responsible.          (b)  To initiate payment to an education service provider or   vendor of educational products for an education-related expense   approved under Section 29.359, the participating parent must submit   a request in a form prescribed by comptroller rule to the applicable   certified educational assistance organization.          (c)  Subject to Subsection (d) and Sections 29.362(g) and   29.364, on receiving a request under Subsection (b), a certified   educational assistance organization shall verify that the request   is for an expense approved under Section 29.359 and, not later than   the 15th business day after the date the organization verifies the   request, send payment to the education service provider or vendor   of educational products.          (d)  A disbursement under this section may not exceed the   applicable participating child's account balance.          (e)  A certified educational assistance organization shall   provide the participating parent for which the organization is   responsible with electronic access to:                (1)  view the current balance of the participating   child's account;                (2)  initiate the payment process under Subsection (b);   and                (3)  view a summary of the past activity on the   participating child's account, including payments from the account   to education service providers and vendors of educational products.          Sec. 29.361.  AMOUNT OF PAYMENT; FINANCING. (a) Regardless   of the deadline by which the participating parent applies for   enrollment in the program under Section 29.356(a) and except as   provided by Subsections (a-1) and (a-3), a participating parent   shall receive each school year that the parent's child participates   in the program payments from the state to be held in trust for the   benefit of the child from funds available under Section 29.353 to   the child's account equal to 75 percent of the estimated statewide   average amount of funding per student in average daily attendance   for the applicable school year, as determined by the commissioner   not later than January 15 preceding the applicable school year.  For   purposes of determining the estimated statewide average amount of   funding per student under this subsection, the commissioner shall   include state and local funding under Chapters 46, 48, and 49 and   the amount the state is required to contribute under Section   825.404, Government Code.          (a-1)  If a child enrolls in the program after the beginning   of a school year, the comptroller shall prorate the amount the   participating parent of the child receives under Subsection (a)   based on the date the child enrolls in the program.          (a-2)  A participating parent must submit all requests for   payment from the account of the parent's child for expenses   incurred during a fiscal year to the comptroller not less than 90   days after the end of that fiscal year.          (a-3)  Notwithstanding Subsection (a), a participating child   who is a home-schooled student, as defined by Section 29.916(a)(1),   may not receive payments to the child's account under Subsection   (a) in an amount that exceeds $1,000 for a school year.          (b)  Any money remaining in a participating child's account   at the end of a fiscal year that is not obligated for expenses   incurred during that fiscal year shall be returned to the   comptroller for deposit to the program fund. The comptroller shall   provide to a participating parent adequate notice of the return of   money in the account under this subsection.          (c)  A participating parent may make payments for the   expenses of educational programs, services, and products not   covered by money in the account of the parent's child.          (d)  A payment under Subsection (a) may not be financed using   federal money or money from the available school fund or   instructional materials fund.          (e)  Payments received under this subchapter do not   constitute taxable income to a participating parent, unless   otherwise provided by federal or another state's law.          (f)  On dates consistent with satisfying the application   deadlines established under Section 29.356(a), the agency shall   calculate and report to the comptroller the amount specified under   Subsection (a) for each participating child.          Sec. 29.3615.  ENROLLMENT IN PUBLIC SCHOOL. Notwithstanding   any other provision of this subchapter or other law, if a child   ceases participation in the program due to the child's enrollment   in a public school, including an open-enrollment charter school:                (1)  the public school is entitled to receive an amount   equal to the amount in the child's account returned to the   comptroller under Section 29.362(f); and                (2)  the child may not be considered in evaluating the   performance of a public school under the public school   accountability system as prescribed by Chapters 39 and 39A for the   first school year after the child ceases participation in the   program.          Sec. 29.362.  ADMINISTRATION OF ACCOUNTS. (a)  On receipt of   money distributed by the comptroller for purposes of making   payments to accounts, a certified educational assistance   organization shall hold the money in trust for the benefit of   participating children and make quarterly payments to the account   of each participating child for which the organization is   responsible in equal amounts on or before the first day of July,   October, January, and April.          (b)  Each year, the comptroller may deduct from the total   amount of money appropriated for purposes of this subchapter an   amount, not to exceed three percent of that total amount, to cover   the comptroller's cost of administering the program.          (c)  Each quarter, each certified educational assistance   organization shall submit to the comptroller a breakdown of the   organization's actual costs of administering the program for the   previous quarter and the comptroller shall disburse from money   appropriated for the program to each certified educational   assistance organization the amount necessary to cover the   organization's actual costs of administering the program for that   quarter. The total amount disbursed to all certified educational   assistance organizations under this subsection for a state fiscal   year may not exceed five percent of the amount appropriated for the   purposes of the program for that fiscal year.          (d)  On or before the first day of October and February or   another date determined by comptroller rule, each certified   educational assistance organization shall:                (1)  verify with the agency that each participating   child for which the organization is responsible is not enrolled in a   public school, including an open-enrollment charter school, in a   manner in which the child is counted toward the school's average   daily attendance for purposes of the allocation of state funding   under the foundation school program; and                (2)  notify the comptroller if the organization   determines that a participating child for which the organization is   responsible is enrolled in a public school, including an   open-enrollment charter school, in a manner in which the child is   counted toward the school's average daily attendance for purposes   of the allocation of state funding under the foundation school   program.          (e)  The comptroller by rule shall establish a process by   which a participating parent may authorize the comptroller or the   certified educational assistance organization to make a payment   directly from the account of the parent's child to a preapproved   education service provider or vendor of educational products for an   expense allowed under Section 29.359.          (f)  On the date on which a child who participated in the   program is no longer eligible to participate in the program under   Section 29.355 and payments for any education-related expenses   allowed under Section 29.359 from the child's account have been   completed, the child's account shall be closed and any remaining   money returned to the comptroller for deposit in the program fund.          (g)  Each quarter, any interest or other earnings   attributable to money held by a certified educational assistance   organization for purposes of the program shall be remitted to the   comptroller for deposit in the program fund.          Sec. 29.363.  AUDITING. (a) The comptroller shall contract   with a private entity to audit accounts and program participant   eligibility data not less than once per year to ensure compliance   with applicable law and program requirements.  The audit must   include a review of:                (1)  each certified educational assistance   organization's internal controls over program transactions; and                (2)  compliance by:                      (A)  certified educational assistance   organizations with Section 29.354 and other program requirements;                      (B)  program participants with Section 29.357 and   other program requirements; and                      (C)  education service providers and vendors of   educational products with Section 29.358 and other program   requirements.          (b)  In conducting an audit, the private entity may require a   certified educational assistance organization, program   participant, or education service provider or vendor of educational   products to provide information and documentation regarding any   transaction occurring under the program.          (c)  The private entity shall report to the comptroller any   violation of this subchapter or other relevant law and any   transactions the entity determines to be unusual or suspicious   found by the entity during an audit conducted under this section.     The comptroller shall report the violation or transaction to:                (1)  the applicable certified educational assistance   organization;                (2)  the education service provider or vendor of   educational products, as applicable; and                (3)  the participating parent of each participating   child who is affected by the violation or transaction.          Sec. 29.364.  SUSPENSION OF ACCOUNT. (a) The comptroller   shall suspend the account of a program participant who fails to   remain in good standing by complying with applicable law or a   requirement of the program.          (b)  On suspension of an account under Subsection (a), the   comptroller shall notify the participating parent in writing that   the account of the parent's child has been suspended and that no   additional payments may be made from the account. The notification   must specify the grounds for the suspension and state that the   participating parent has 30 days to respond and take any corrective   action required by the comptroller.          (c)  On the expiration of the 30-day period under Subsection   (b), the comptroller shall:                (1)  order closure of the suspended account;                (2)  order temporary reinstatement of the account,   conditioned on the performance of a specified action by the program   participant; or                (3)  order full reinstatement of the account.          (d)  The comptroller may recover money distributed under the   program that was used for expenses not allowed under Section   29.359, for a child who was not eligible to participate in the   program at the time of the expenditure, or from an education service   provider or vendor of educational products that was not approved at   the time of the expenditure. The money may be recovered from the   program participant or the education service provider or vendor of   educational products that received the money if the participating   child's account is suspended or closed under this section. Failure   to reimburse the state on demand by the comptroller constitutes a   debt to the state for purposes of Section 403.055, Government Code.   The comptroller shall deposit money recovered under this subsection   into the program fund.          Sec. 29.365.  TUITION AND FEES; REFUND PROHIBITED. (a) An   education service provider or vendor of educational products may   not charge a participating child an amount greater than the   standard amount charged for that service or product by the provider   or vendor.          (b)  An education service provider or vendor of educational   products receiving money distributed under the program may not in   any manner rebate, refund, or credit to or share with a program   participant, or any person on behalf of a participant, any program   money paid or owed by the participant to the provider or vendor.          Sec. 29.366.  REFERRAL TO DISTRICT ATTORNEY. If the   comptroller obtains evidence of fraudulent use of an account or   money distributed under the program or any other violation of law by   a certified educational assistance organization, program   participant, or education service provider or vendor of educational   products, the comptroller shall notify the appropriate local county   or district attorney with jurisdiction over, as applicable:                (1)  the principal place of business of the   organization or provider or vendor; or                (2)  the residence of the program participant.          Sec. 29.367.  SPECIAL EDUCATION NOTICE. (a) Each certified   educational assistance organization designated under Section   29.356(a) shall post on the organization's Internet website and   provide to each parent who submits an application for the program a   notice that:                (1)  states that a private school is not subject to   federal and state laws regarding the provision of educational   services to a child with a disability in the same manner as a public   school; and                (2)  provides information regarding rights to which a   child with a disability is entitled under federal and state law if   the child attends a public school, including:                      (A)  rights provided under the Individuals with   Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and                      (B)  rights provided under Subchapter A.          (b)  A private school in which a participating child with a   disability enrolls shall provide to the participating parent a copy   of the notice required under Subsection (a).          Sec. 29.368.  CHARACTER OF DISTRIBUTION. An education   service provider or vendor of educational products that receives   money distributed under the program is not a recipient of federal   financial assistance and may not be considered to be an agent of   state government on the basis of receiving that money.          Sec. 29.369.  STUDENT RECORDS AND INFORMATION. (a) On   request by the parent of a child participating or seeking to   participate in the program, the school district or open-enrollment   charter school that the child would otherwise attend shall provide   a copy of the child's school records possessed by the district or   school, if any, to the child's parent or, if applicable, the private   school the child attends.          (b)  As necessary to verify a child's eligibility for the   program, the agency, a school district, or an open-enrollment   charter school shall provide to the applicable certified   educational assistance organization any information available to   the agency, district, or school requested by the organization   regarding a child who participates or seeks to participate in the   program, including information regarding:                (1)  the child's public school enrollment status; and                (2)  whether the child:                      (A)  is a child with a disability; or                      (B)  can be counted toward a public school's   average daily attendance for purposes of the allocation of funding   under the foundation school program.          (c)  A certified educational assistance organization may not   retain information provided under Subsection (b) beyond the period   necessary to determine a child's eligibility to participate in the   program.          (d)  A certified educational assistance organization or an   education service provider or vendor of educational products that   obtains information regarding a participating child:                (1)  shall comply with state and federal law regarding   the confidentiality of student educational information; and                (2)  may not sell or otherwise distribute information   regarding a child participating in the program.          Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The comptroller   and a certified educational assistance organization may solicit and   accept gifts, grants, and donations from any public or private   source for any expenses related to the administration of the   program, including establishing the program and contracting for the   report required under Section 29.372.          Sec. 29.371.  ADMINISTRATION OF STATE ASSESSMENT   INSTRUMENTS. (a)  The agency shall ensure that each child   participating in the program is annually administered each   assessment instrument required to be administered to a public   school student at the child's grade and course level under Section   39.023(a) or (c), subject to any applicable exemptions or   accommodations provided under Subchapter B, Chapter 39.          (b)  For purposes of the annual report required under Section   29.372, the agency shall provide to the comptroller the results of   the assessment instruments administered under this section, in   aggregate and disaggregated by race, ethnicity, socioeconomic   status, and status as a child with a disability.  A child's results   on an assessment instrument administered under this section are   confidential, are not subject to disclosure under Chapter 552,   Government Code, and may only be shared as necessary to develop the   annual report required under Section 29.372 of this subchapter.  In   providing the results of the assessment instruments, the agency   shall ensure compliance with state and federal law regarding the   confidentiality of student educational information, including the   Family Educational Rights and Privacy Act of 1974 (20 U.S.C.   Section 1232g).          (c)  The agency shall require a regional education service   center to administer assessment instruments under this section.          (d)  A school district may administer assessment instruments   under this section.          (e)  If authorized by the agency, a private school may, but   is not required to, administer assessment instruments under this   section in accordance with agency rule.          Sec. 29.372.  ANNUAL REPORT. (a)  The comptroller shall   require that the certified educational assistance organizations   collaborate to compile program data and produce an annual   longitudinal report regarding:                (1)  the number of program applications received,   accepted, and wait-listed, disaggregated by age;                (2)  program participant satisfaction;                (3)  the results of assessment instruments provided in   accordance with Section 29.371;                (4)  the effect of the program on public and private   school capacity and availability;                (5)  the amount of cost savings accruing to the state as   a result of the program;                (6)  in a report submitted in an even-numbered year   only, an estimate of the total amount of funding required for the   program for the next state fiscal biennium;                (7)  the amount of gifts, grants, and donations   received under Section 29.370; and                (8)  based on surveys of former program participants or   other sources available to the organizations, the number and   percentage of participating children who, within one year after   graduating from high school, are:                      (A)  college ready, as indicated by earning a   minimum of 12 non-remedial semester credit hours or the equivalent   or an associate degree from a postsecondary educational   institution;                      (B)  career ready, as indicated by:                            (i)  earning a credential of value included   in a library of credentials established under Section 2308A.007,   Government Code; or                            (ii)  employment at or above the median wage   in the child's region; or                      (C)  military ready, as indicated by achieving a   passing score set by the applicable military branch on the Armed   Services Vocational Aptitude Battery and enlisting in the armed   forces of the United States or the Texas National Guard.          (b)  In producing the report, the certified educational   assistance organizations shall:                (1)  use appropriate analytical and behavioral science   methodologies to ensure public confidence in the report; and                (2)  comply with the requirements regarding the   confidentiality of student educational information under the   Family Educational Rights and Privacy Act of 1974 (20 U.S.C.   Section 1232g).          (c)  The report must cover a period of not less than five   years and include, subject to Subsection (b)(2), the data analyzed   and methodology used.          (d)  The comptroller and the applicable certified   educational assistance organizations shall post the report on the   comptroller's and organization's respective Internet websites.          Sec. 29.373.  RULES; PROCEDURES. The comptroller shall   adopt rules and procedures as necessary to implement, administer,   and enforce this subchapter.          Sec. 29.374.  APPEAL; FINALITY OF DECISIONS. (a) A program   participant may appeal to the comptroller an administrative   decision made by a certified educational assistance organization   under this subchapter, including a decision regarding eligibility,   allowable expenses, or the participant's removal from the program.          (b)  This subchapter may not be construed to confer a   property right on a certified educational assistance organization,   education service provider, vendor of educational products, or   program participant.          (c)  A decision of the comptroller made under this subchapter   is final and not subject to appeal.          Sec. 29.375.  TERM OF AUTHORIZATION. (a) The program is   subject to appropriations from the legislature and continues in   existence until September 1, 2027, unless reauthorized by the   legislature.          (b)  Notwithstanding Subsection (a), a program participant   who is participating in the program on or before September 1, 2027,   shall continue to receive payments from the state under Section   29.361 until the date on which the child who participated in the   program would no longer be eligible to participate in the program   under Section 29.355(b).          (c)  This subchapter expires September 1, 2027.          SECTION 5.02.  Section 22.092(d), Education Code, is amended   to read as follows:          (d)  The agency shall provide equivalent access to the   registry maintained under this section to:                (1)  private schools;                (2)  public schools; [and]                (3)  nonprofit teacher organizations approved by the   commissioner for the purpose of participating in the tutoring   program established under Section 33.913; and                (4)  the comptroller for the purpose of preapproving   education service providers and vendors of educational products   under Section 29.358 for participation in the program established   under Subchapter J, Chapter 29.          SECTION 5.03.  Section 411.109, Government Code, is amended   by adding Subsection (b-1) and amending Subsection (c) to read as   follows:          (b-1)  The comptroller is entitled to obtain criminal   history record information as provided by Subsection (c) about a   person who is a private tutor, a therapist, or an employee of a   teaching service or school who intends to provide educational   services to a child participating in the program established under   Subchapter J, Chapter 29, Education Code, and is seeking approval   to receive money distributed under that program.          (c)  Subject to Section 411.087 and consistent with the   public policy of this state, the comptroller is entitled to:                (1)  obtain through the Federal Bureau of Investigation   criminal history record information maintained or indexed by that   bureau that pertains to a person described by Subsection (a), [or]   (b), or (b-1); and                (2)  obtain from the department or any other criminal   justice agency in this state criminal history record information   maintained by the department or that criminal justice agency that   relates to a person described by Subsection (a), [or] (b), or (b-1).          SECTION 5.04.  Subchapter J, Chapter 29, Education Code, as   added by this article, applies beginning with the 2024-2025 school   year.          SECTION 5.05.  Not later than May 15, 2024, the comptroller   of public accounts shall adopt rules as provided by Section 29.373,   Education Code, as added by this article.          SECTION 5.06.  (a) The constitutionality and other validity   under the state or federal constitution of all or any part of   Subchapter J, Chapter 29, Education Code, as added by this article,   may be determined in an action for declaratory judgment under   Chapter 37, Civil Practice and Remedies Code, in a district court in   Travis County.          (b)  An order, however characterized, of a trial court   granting or denying a temporary or otherwise interlocutory   injunction or a permanent injunction on the grounds of the   constitutionality or unconstitutionality, or other validity or   invalidity, under the state or federal constitution of all or any   part of Subchapter J, Chapter 29, Education Code, as added by this   article, may be reviewed only by direct appeal to the Texas Supreme   Court filed not later than the 15th day after the date on which the   order was entered. The Texas Supreme Court shall give precedence to   appeals under this section over other matters.          (c)  The direct appeal is an accelerated appeal.          (d)  This section exercises the authority granted by Section   3-b, Article V, Texas Constitution.          (e)  The filing of a direct appeal under this section will   automatically stay any temporary or otherwise interlocutory   injunction or permanent injunction granted in accordance with this   section pending final determination by the Texas Supreme Court,   unless the supreme court makes specific findings that the applicant   seeking such injunctive relief has pleaded and proved that:                (1)  the applicant has a probable right to the relief it   seeks on final hearing;                (2)  the applicant will suffer a probable injury that   is imminent and irreparable, and that the applicant has no other   adequate legal remedy; and                (3)  maintaining the injunction is in the public   interest.          (f)  An appeal under this section, including an   interlocutory, accelerated, or direct appeal, is governed, as   applicable, by the Texas Rules of Appellate Procedure, including   Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),   40.1(b), and 49.4.          (g)  This section does not authorize an award of attorney's   fees against this state, and Section 37.009, Civil Practice and   Remedies Code, does not apply to an action filed under this section.          SECTION 5.07.  It is the intent of the legislature that every   provision, section, subsection, sentence, clause, phrase, or word   in this article, and every application of the provisions in this   article to each person or entity, is severable from each other. If   any application of any provision in this article to any person,   group of persons, or circumstances is found by a court to be invalid   for any reason, the remaining applications of that provision to all   other persons and circumstances shall be severed and may not be   affected.          SECTION 5.08.  This article takes effect immediately if this   Act receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this article takes effect on the 91st day after the last day   of the legislative session.   ARTICLE 6. CHANGES RELATED TO PUBLIC SCHOOLS GENERALLY          SECTION 6.01.  Subchapter Z, Chapter 25, Education Code, is   amended by adding Section 25.906 to read as follows:          Sec. 25.906.  PROTECTIONS FOR CERTAIN MILITARY DEPENDENTS.   (a) In this section:                (1)  "Compact" means the Interstate Compact on   Educational Opportunity for Military Children executed under   Section 162.002.                (2)  "Uniformed services" means:                      (A)  the United States Army, Navy, Air Force,   Space Force, Marine Corps, or Coast Guard;                      (B)  the Commissioned Officer Corps of the   National Oceanic and Atmospheric Administration; or                      (C)  the Commissioned Corps of the United States   Public Health Service.          (b)  The provisions of Articles IV, V, VI, and VII of the   compact apply to the following children as if those children were   children described by Article III of the compact:                (1)  a child of a veteran of the uniformed services who   was discharged or released through retirement, for a period of four   years after the date of the veteran's retirement, if the veteran   returns to the veteran's home of record on military orders; and                (2)  a child of a member of the uniformed services who   dies on active duty or as a result of injuries sustained on active   duty, for a period of four years after the member's death.          (c)  Each school district and open-enrollment charter school   that maintains an Internet website shall post on the district's or   school's Internet website an easily accessible link to information   regarding the compact and the additional protections provided by   this section.          SECTION 6.02.  Section 26.002, Education Code, is amended to   read as follows:          Sec. 26.002.  DEFINITIONS [DEFINITION].  In this chapter:                (1)  "Benchmark assessment" includes a benchmark   assessment instrument as defined by Section 39.0263(a) and a   district-required assessment designed to evaluate students against   a set of national or state comparison points.                (2)  "Parent" [, "parent"] includes a person standing   in parental relation.  The term does not include a person as to whom   the parent-child relationship has been terminated or a person not   entitled to possession of or access to a child under a court order.     Except as provided by federal law, all rights of a parent under   Title 2 of this code and all educational rights under Section   151.001(a)(10), Family Code, shall be exercised by a student who is   18 years of age or older or whose disabilities of minority have been   removed for general purposes under Chapter 31, Family Code, unless   the student has been determined to be incompetent or the student's   rights have been otherwise restricted by a court order.                (3)  "Test" includes a benchmark assessment.          SECTION 6.03.  Chapter 26, Education Code, is amended by   adding Section 26.0062 to read as follows:          Sec. 26.0062.  NOTICE REGARDING BENCHMARK ASSESSMENT   RESULTS. A school district shall report in writing to each   student's parent the results of a benchmark assessment administered   to the student not later than the 30th calendar day after the date   on which the results of the assessment are available.  The results   may be made available to the parent through a parent portal.          SECTION 6.04.  Section 28.006, Education Code, is amended by   amending Subsections (a), (b), (c), (c-1), (c-2), (c-3), and (j)   and adding Subsections (a-1), (b-2), (b-3), (b-4), (d-1), (g-3),   (g-4), (g-5), (g-6), (n), and (o) to read as follows:          (a)  The commissioner shall adopt procedures [develop   recommendations] for school districts and open-enrollment charter   schools for:                (1)  administering reading instruments to:                      (A)  ensure the results of the reading instruments   are valid, reliable, and equated;                      (B)  diagnose student reading development and   comprehension; and                      (C)  identify students at risk for dyslexia or   other reading difficulties;                (2)  training educators in administering the reading   instruments; and                (3)  applying the results of the reading instruments to   the instructional program and intervention practices.          (a-1)  A school district or open-enrollment charter school   may not administer a reading instrument to a student more than three   times during a school year.          (b)  The commissioner shall adopt a comprehensive list of   reading instruments that a school district or open-enrollment   charter school shall select from for [may] use in diagnosing [to   diagnose student] reading development and comprehension for   students who are enrolled in kindergarten through third grade. A   reading instrument included on the commissioner's list must include   the foundational literacy components of phonemic and phonological   awareness, phonics, vocabulary, fluency, and comprehension. For   use in diagnosing the reading development and comprehension of   kindergarten students, the commissioner shall adopt [a]   multidimensional assessment tools [tool] that include [includes a]   reading instruments that test [instrument and tests] at least three   developmental skills, including the foundational literacy   components. A multidimensional assessment tool administered as   provided by this subsection is considered to be a reading   instrument for purposes of this section.  A school district or   open-enrollment charter school [district-level committee   established under Subchapter F, Chapter 11,] may use other [adopt a   list of] reading instruments, subject to Subsection (b-4), [for use   in the district in a grade level other than kindergarten] in   addition to the reading instruments included on the commissioner's   list.  Each reading instrument included on the list adopted by the   commissioner or administered by a school district or   open-enrollment charter school [or a district-level committee]   must:                (1)  be based on scientific research concerning reading   skills development and reading comprehension;                (2)  [.  A list of reading instruments adopted under   this subsection must] provide for diagnosing the reading   development and comprehension of students participating in a   program under Subchapter B, Chapter 29;                (3)  provide progress monitoring capabilities;                (4)  provide a diagnostic tool to assist teachers in   developing research-based targeted instruction;                (5)  allow screening of students three times each   school year;                (6)  assess only foundational literacy components not   already mastered by the student; and                (7)  assess whether a student needs reading instruction   intervention.          (b-2)  The commissioner shall include on the commissioner's   list any reading instrument that is:                (1)  based on scientific research concerning reading   skills development and reading comprehension; and                (2)  submitted for inclusion on the list under   Subsection (b-4).          (b-3)  The commissioner shall update the list of reading   instruments at least once every four years, including   multidimensional assessment tools authorized under this section.          (b-4)  A school district or open-enrollment charter school   that uses one or more reading instruments not included on the   commissioner's list in accordance with Subsection (b) must submit   the instrument to the commissioner to verify the instrument   satisfies the requirements of this section. The commissioner shall   place on the commissioner's list a reading instrument that   satisfies the requirements of this section.          (c)  Each school district and open-enrollment charter school   shall administer, at the first and second grade levels, a reading   instrument that is based on scientific research concerning reading   skills development and reading comprehension included on the list   adopted by the commissioner [or by the district-level   committee].  The district or school shall administer the reading   instrument in accordance with the commissioner's recommendations   under Subsection (a)(1).          (c-1)  Each school district and open-enrollment charter   school shall administer at the beginning of the seventh grade a   reading instrument included on the list adopted by the commissioner   to each student whose performance on the assessment instrument in   reading administered under Section 39.023(a) to the student in   grade six did not demonstrate reading proficiency, as determined by   the commissioner.  The district or school shall administer the   reading instrument in accordance with the commissioner's policies   adopted [recommendations] under Subsection (a)(1).          (c-2)  Each school district and open-enrollment charter   school shall administer at the kindergarten level a reading   instrument included on the list adopted by the commissioner [under   Subsection (b) or approved by the commissioner under Subsection   (b-1)].  The district or school shall administer the reading   instrument in accordance with the commissioner's policies adopted   [recommendations] under Subsection (a)(1).          (c-3)  The commissioner by rule shall determine the   performance on a [the] reading instrument adopted under Subsection   (b) that indicates kindergarten readiness.          (d-1)  The commissioner shall prominently display on the   agency's Internet website information regarding the commissioner's   list of reading instruments maintained under this section and the   process for applying for inclusion on the list, as provided by   agency rule adopted under Subsection (n).          (g-3)  A school district or open-enrollment charter school   shall provide reading intervention to each student in kindergarten   through grade three who is determined to need reading intervention   using an assessment administered in accordance with Subsection (b).     The school district shall continue to offer a student reading   intervention until the student achieves satisfactory performance   on a reading instrument.  A reading intervention program offered   under this subsection must:                (1)  include targeted instruction to improve the   student's reading skills in the relevant areas identified through   the assessment instrument;                (2)  monitor the progress of the student's reading   skills throughout the school year;                (3)  be implemented during regular school hours and in   addition to core instruction;                (4)  use high-quality instructional materials,   curricula, and curricular tools that are research based and   effective for early childhood literacy intervention; and                (5)  be provided by a teacher who has attended a   literacy achievement academy provided under Section 21.4552.          (g-4)  In providing reading intervention under Subsection   (g-3), a school district or open-enrollment charter school may not   remove a student, except under circumstances for which a student   enrolled in the same grade level who is not receiving reading   intervention would be removed, from:                (1)  instruction in the foundation curriculum and   enrichment curriculum adopted under Section 28.002 for the grade   level in which the student is enrolled; or                (2)  recess or other physical activity that is   available to other students enrolled in the same grade level.          (g-5)  In addition to the report required under Subsection   (d)(2), a school district or open-enrollment charter school shall   notify the parent or guardian of each student in kindergarten   through grade three who is determined to need reading intervention.     The notification must:                (1)  be distributed not later than the 30th day after   the date the result of the reading instrument indicating that the   student needs intervention is available;                (2)  describe the current reading services the district   or school provides to the student;                (3)  describe the reading interventions that will be   provided to the student to ensure the student will meet or exceed   grade-level reading standards; and                (4)  include high-quality resources for the parent or   guardian of the student to use at home to help the student succeed   at reading.          (g-6)  From funds appropriated for teacher literacy   achievement academies developed under Section 21.4552, the   commissioner may, in collaboration with regional education service   centers, provide assistance to school districts and   open-enrollment charter schools in complying with the requirements   of Section 28.0062. The commissioner shall prioritize providing   assistance under this subsection in school districts with the   highest rate of students performing below satisfactory levels on   reading instruments administered under Subsection (b).          (j)  [No more than 15 percent of the funds certified by the   commissioner under Subsection (i) may be spent on indirect costs.]     The commissioner shall evaluate the programs that fail to meet the   standard of performance under Section 39.301(c)(5) and may   implement interventions or sanctions under Chapter 39A.  [The   commissioner may audit the expenditures of funds appropriated for   purposes of this section.  The use of the funds appropriated for   purposes of this section shall be verified as part of the district   audit under Section 44.008.]          (n)  The agency by rule shall provide a process under which a   school district or open-enrollment charter school may submit an   application for inclusion of a reading instrument on the   commissioner's list of reading instruments maintained under this   section.          (o)  The agency may not use data collected from a reading   instrument administered under this section in evaluating the   performance of a school district or campus under Section 39.054.          SECTION 6.05.  Subchapter A, Chapter 28, Education Code, is   amended by adding Section 28.0063 to read as follows:          Sec. 28.0063.  SUPPLEMENTAL READING INSTRUCTION FOR CERTAIN   STUDENTS. (a) A school district or open-enrollment charter school   shall make available supplemental instruction described by Section   28.0211(a-4) to address a student's reading deficiency if the   student's results on both of the reading assessments administered   under Section 28.006 in two consecutive school years indicate the   student needs reading intervention.          (b)  A parent or guardian of a student described by   Subsection (a) may select a tutor from a list of high-quality tutors   approved by the agency or by the school district or open-enrollment   charter school the student attends to provide the supplemental   instruction required under Subsection (a).  The district or school   shall contract directly with the tutor selected, who may be a   classroom teacher employed at the district or school. A classroom   teacher selected as a student's tutor is entitled to supplemental   pay from the district or school.  The district or school may not   provide money under this subsection directly to a parent or   guardian of a student.          (c)  A school district or open-enrollment charter school   shall submit to the agency the district's or school's list of   high-quality tutors and publish the list on the district's or   school's Internet website.          (d)  A school district or open-enrollment charter school   that provides a tutor to a student under this section shall continue   to provide the student any other reading support required of the   district or school by federal or state law.          SECTION 6.06.  Section 28.009, Education Code, is amended by   amending Subsection (a) and adding Subsection (a-6) to read as   follows:          (a)  Each school district shall implement a program under   which students may earn the equivalent of at least 12 semester   credit hours of college credit in high school.  On request, a public   institution of higher education in this state shall assist a school   district in developing and implementing the program.  The college   credit may be earned through:                (1)  international baccalaureate, advanced placement,   or dual credit courses, including courses provided through OnRamps;                (2)  articulated postsecondary courses provided for   local credit or articulated postsecondary advanced technical   credit courses provided for state credit; or                (3)  any combination of the courses described by   Subdivisions (1) and (2).          (a-6)  Each school district shall report through the Public   Education Information Management System (PEIMS) the number of   district students who, during that school year, were enrolled in an   OnRamps course and provide the name of the OnRamps courses in which   the students were enrolled.  The commissioner shall establish a   unique identifier in PEIMS for each OnRamps course offered.          SECTION 6.07.  Subchapter E, Chapter 29, Education Code, is   amended by adding Section 29.1537 to read as follows:          Sec. 29.1537.  PREKINDERGARTEN COMMUNITY-BASED CHILD-CARE   PARTNERSHIP GRANT PROGRAM. (a) The commissioner shall establish   and administer a grant program to support school districts and   open-enrollment charter schools in increasing partnerships with   community-based child-care providers to provide prekindergarten   classes under Section 29.153.          (b)  A school district or open-enrollment charter school may   apply for a grant under the grant program in partnership with a   community-based child-care provider described by Section   29.153(g).          (c)  A school district or open-enrollment charter school   shall use money received under the grant program to fund the   enrollment of eligible children in prekindergarten classes   provided under Section 29.153 through a partnership between the   district or school and a community-based child-care provider   described by Section 29.153(g).  A child is eligible for enrollment   in a prekindergarten class described by this subsection using money   received under the grant program if the child:                 (1)  is at least three years of age; and                (2)  receives subsidized child-care services provided   through the child-care services program administered by the Texas   Workforce Commission.           (d)  The commissioner may provide grants under the grant   program for the enrollment in each school year of not more than   3,500 children in a prekindergarten class described by Subsection   (c).           (e)  The agency shall annually report to the legislature   regarding the number of children described by Subsection (c)   enrolled in a prekindergarten class.          SECTION 6.08.  Section 29.1543, Education Code, is amended   to read as follows:          Sec. 29.1543.  EARLY EDUCATION REPORTS.  The agency shall   produce and make available to the public on the agency's Internet   website annual district and campus-level reports containing   information from the previous school year on early education in   school districts and open-enrollment charter schools. A report   under this section must contain:                (1)  the information required by Section 29.1532(c) to   be reported through the Public Education Information Management   System (PEIMS);                (2)  a description of any [the] diagnostic reading   instruments administered as provided by Section 28.006 [in   accordance with Section 28.006(c) or (c-2)];                (3)  the number of students who were administered a   diagnostic reading instrument administered as provided by Section   28.006 [in accordance with Section 28.006(c) or (c-2)];                (4)  the number of students whose scores from a   diagnostic reading instrument administered as provided by Section   28.006 [in accordance with Section 28.006(c) or (c-2)] indicate   reading proficiency;                (5)  the number of kindergarten students who were   enrolled in a prekindergarten program in the previous school year   in the same district or school as the district or school in which   the student attends kindergarten;                (6)  the number and percentage of students who perform   satisfactorily on the third grade reading or mathematics assessment   instrument administered under Section 39.023, disaggregated by   whether the student was eligible for free prekindergarten under   Section 29.153;                (7)  the number of students described by Subdivision   (6) who attended kindergarten in the district, disaggregated by:                      (A)  whether the student met the kindergarten   readiness standard on a [the] reading instrument adopted under   Section 28.006;                      (B)  whether the student attended prekindergarten   in the district; and                      (C)  the type of prekindergarten the student   attended, if applicable; and                (8)  the information described by Subdivisions (6) and   (7) disaggregated by whether the student is educationally   disadvantaged.          SECTION 6.09.  Subchapter Z, Chapter 29, Education Code, is   amended by adding Section 29.9016 to read as follows:          Sec. 29.9016.  CAREER AND MILITARY TECHNICAL GRANT PILOT   PROGRAM. (a)  The agency shall establish a pilot program to award   grants to school districts to implement or maintain a program under   which the district:                (1)  establishes a junior reserve officer training   corps program under 10 U.S.C. Section 2031 for students in high   school;                (2)  annually administers the Armed Services   Vocational Aptitude Battery test to each student in grades 9   through 12; and                (3)  provides career counseling at least once each year   to each student administered the test under Subdivision (2) based   on the results of the test.          (b)  The amount of a grant awarded under the pilot program is   $50,000.          (c)  The total amount of grants awarded under the pilot   program for a school year may not exceed $2 million.          (d)  Not later than December 1, 2026, the agency shall submit   to the legislature a report on the results of the pilot program.     The report must include the agency's recommendation on whether the   pilot program should be continued, expanded, or terminated.          (e)  The commissioner may adopt rules necessary to implement   the pilot program.          (f)  This section expires September 1, 2027.          SECTION 6.10.  Chapter 791, Government Code, is amended by   adding Subchapter D to read as follows:   SUBCHAPTER D. INTERLOCAL CONTRACTING BETWEEN LOCAL EDUCATION   AGENCIES TO PROCURE HEALTH INSURANCE COVERAGE          Sec. 791.051.  DEFINITIONS. In this subchapter:                (1)  "Cooperative" means a cooperative established   under this subchapter by an interlocal contract for group health   coverage.                (2)  "Local education agency" means:                      (A)  a school district; or                      (B)  an open-enrollment charter school as defined   by Section 5.001, Education Code.                (3)  "Participating local education agency" means,   with respect to a cooperative, a local education agency that   participates in the cooperative.          Sec. 791.052.  COMPLIANCE WITH SUBCHAPTER REQUIRED. A local   education agency shall comply with this subchapter when procuring   and administering employee group health coverage with another local   education agency.          Sec. 791.053.  INTERLOCAL CONTRACT FOR GROUP HEALTH   INSURANCE COVERAGE. (a) The governing body of a local education   agency may by resolution enter into an interlocal contract and   cooperate with one or more other local education agencies to   establish a cooperative for the purposes of procuring group health   insurance coverage under this subchapter.          (b)  The governing body of a local education agency may renew   an interlocal contract entered into under Subsection (a).          (c)  This subchapter does not affect the ability of local   education agencies to provide group health coverage through a risk   pool established in accordance with Chapter 172, Local Government   Code.          Sec. 791.054.  COOPERATIVE. (a) A cooperative is a legal   entity that may procure employee group health insurance coverage   for each participating local education agency.          (b)  Participating local education agencies may contract for   the supervision and administration of the cooperative in accordance   with Section 791.013.          (c)  Except as provided by this subsection, a cooperative is   governed by a board of directors composed of the chief executive   officers of each participating local education agency or the   officers' designees. If the cooperative is composed of more than   seven local education agencies, the cooperative shall appoint at   least seven directors to serve on the cooperative's board of   directors.          Sec. 791.055.  PROCUREMENT. (a) A cooperative must procure   a contract for employee group health coverage under this subchapter   through a request for proposals to potential vendors advertised in   a manner consistent with Section 44.031(g), Education Code, in at   least one county in which a participating local education agency's   central office is located.          (b)  The board of directors of a cooperative shall select the   vendor that provides the best value to participating local   education agencies considering the factors described by Section   44.031(b), Education Code.           (c)  A cooperative that enters into a contract in accordance   with this section satisfies a competitive bidding requirement   applicable to the procurement of group health coverage under other   law.          Sec. 791.056.  OFFER OF COVERAGE; PREMIUM LIABILITY. (a) A   cooperative shall offer one or more group health insurance plans   procured under Section 791.055 to employees of participating local   education agencies and dependents of those employees.          (b)  The board of directors of a cooperative may determine a   participating local education agency's payment of all or part of   the premiums for employees or dependents for a plan offered under   Subsection (a).          (c)  A participating local education agency's payment:                (1)  is subject to the requirements described by   Section 1581.052, Insurance Code; and                (2)  shall include the contributions by the state   described by Subchapter F, Chapter 1579, Insurance Code.          SECTION 6.11.  Section 28.006(b-1), Education Code, is   repealed.          SECTION 6.12.  This article applies beginning with the   2024-2025 school year.          SECTION 6.13.  This article takes effect on the 91st day   after the last day of the legislative session.   ARTICLE 7.  VIRTUAL EDUCATION          SECTION 7.01.  Section 1.001(b), Education Code, is amended   to read as follows:          (b)  Except as provided by Chapter 18, Chapter 19, Subchapter   A of Chapter 29, or Subchapter E of Chapter 30, [or Chapter 30A,]   this code does not apply to students, facilities, or programs under   the jurisdiction of the Department of Aging and Disability   Services, the Department of State Health Services, the Health and   Human Services Commission, the Texas Juvenile Justice Department,   the Texas Department of Criminal Justice, a Job Corps program   operated by or under contract with the United States Department of   Labor, or any juvenile probation agency.          SECTION 7.02.  Section 7.0561(f), Education Code, is amended   to read as follows:          (f)  In consultation with interested school districts,   open-enrollment charter schools, and other appropriate interested   persons, the commissioner shall adopt rules applicable to the   consortium, according to the following principles for a next   generation of higher performing public schools:                (1)  engagement of students in digital learning,   including engagement through the use of electronic textbooks and   instructional materials adopted under Subchapters B and B-1,   Chapter 31, and virtual or hybrid courses offered by school   districts and open-enrollment charter schools under Chapter 30B   [through the state virtual school network under Subchapter 30A];                (2)  emphasis on learning standards that focus on   high-priority standards identified in coordination with districts   and charter schools participating in the consortium;                (3)  use of multiple assessments of learning capable of   being used to inform students, parents, districts, and charter   schools on an ongoing basis concerning the extent to which learning   is occurring and the actions consortium participants are taking to   improve learning; and                (4)  reliance on local control that enables communities   and parents to be involved in the important decisions regarding the   education of their children.          SECTION 7.03.  Section 25.007(b), Education Code, is amended   to read as follows:          (b)  In recognition of the challenges faced by students who   are homeless or in substitute care, the agency shall assist the   transition of students who are homeless or in substitute care from   one school to another by:                (1)  ensuring that school records for a student who is   homeless or in substitute care are transferred to the student's new   school not later than the 10th working day after the date the   student begins enrollment at the school;                (2)  developing systems to ease transition of a student   who is homeless or in substitute care during the first two weeks of   enrollment at a new school;                (3)  developing procedures for awarding credit,   including partial credit if appropriate, for course work, including   electives, completed by a student who is homeless or in substitute   care while enrolled at another school;                (4)  developing procedures to ensure that a new school   relies on decisions made by the previous school regarding placement   in courses or educational programs of a student who is homeless or   in substitute care and places the student in comparable courses or   educational programs at the new school, if those courses or   programs are available;                (5)  promoting practices that facilitate access by a   student who is homeless or in substitute care to extracurricular   programs, summer programs, credit transfer services, virtual or   hybrid [electronic] courses provided under Chapter 30B [30A], and   after-school tutoring programs at nominal or no cost;                (6)  establishing procedures to lessen the adverse   impact of the movement of a student who is homeless or in substitute   care to a new school;                (7)  entering into a memorandum of understanding with   the Department of Family and Protective Services regarding the   exchange of information as appropriate to facilitate the transition   of students in substitute care from one school to another;                (8)  encouraging school districts and open-enrollment   charter schools to provide services for a student who is homeless or   in substitute care in transition when applying for admission to   postsecondary study and when seeking sources of funding for   postsecondary study;                (9)  requiring school districts, campuses, and   open-enrollment charter schools to accept a referral for special   education services made for a student who is homeless or in   substitute care by a school previously attended by the student, and   to provide comparable services to the student during the referral   process or until the new school develops an individualized   education program for the student;                (10)  requiring school districts, campuses, and   open-enrollment charter schools to provide notice to the child's   educational decision-maker and caseworker regarding events that   may significantly impact the education of a child, including:                      (A)  requests or referrals for an evaluation under   Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794), or   special education under Section 29.003;                      (B)  admission, review, and dismissal committee   meetings;                      (C)  manifestation determination reviews required   by Section 37.004(b);                      (D)  any disciplinary actions under Chapter 37 for   which parental notice is required;                      (E)  citations issued for Class C misdemeanor   offenses on school property or at school-sponsored activities;                      (F)  reports of restraint and seclusion required   by Section 37.0021;                      (G)  use of corporal punishment as provided by   Section 37.0011; and                      (H)  appointment of a surrogate parent for the   child under Section 29.0151;                (11)  developing procedures for allowing a student who   is homeless or in substitute care who was previously enrolled in a   course required for graduation the opportunity, to the extent   practicable, to complete the course, at no cost to the student,   before the beginning of the next school year;                (12)  ensuring that a student who is homeless or in   substitute care who is not likely to receive a high school diploma   before the fifth school year following the student's enrollment in   grade nine, as determined by the district, has the student's course   credit accrual and personal graduation plan reviewed;                (13)  ensuring that a student in substitute care who is   in grade 11 or 12 be provided information regarding tuition and fee   exemptions under Section 54.366 for dual-credit or other courses   provided by a public institution of higher education for which a   high school student may earn joint high school and college credit;                (14)  designating at least one agency employee to act   as a liaison officer regarding educational issues related to   students in the conservatorship of the Department of Family and   Protective Services; and                (15)  providing other assistance as identified by the   agency.          SECTION 7.04.  The heading to Section 26.0031, Education   Code, is amended to read as follows:          Sec. 26.0031.  RIGHTS CONCERNING [STATE] VIRTUAL AND HYBRID   COURSES [SCHOOL NETWORK].          SECTION 7.05.  Section 26.0031, Education Code, is amended   by amending Subsections (a), (b), (c), (c-1), (d), and (e) and   adding Subsection (b-1) to read as follows:          (a)  At the time and in the manner that a school district or   open-enrollment charter school informs students and parents about   courses that are offered in the district's or school's traditional   classroom setting, the district or school shall notify parents and   students of the option to enroll in a virtual or hybrid [an   electronic] course offered by the district or school in which the   student is enrolled or by another district or school [through the   state virtual school network] under Chapter 30B [30A].          (b)  Except as provided by Subsection (c), a school district   or open-enrollment charter school in which a student is enrolled as   a full-time student may not deny the request of a parent of a   student to enroll the student in a virtual or hybrid [an electronic]   course offered by the district or school in which the student is   enrolled or by another district or school [through the state   virtual school network] under Chapter 30B [30A].          (b-1)  A school district or open-enrollment charter school   may not actively discourage a student, including by threat or   intimidation, from enrolling in a virtual or hybrid course.          (c)  A school district or open-enrollment charter school may   deny a request to enroll a student in a virtual or hybrid [an   electronic] course if:                (1)  a student attempts to enroll in a course load that   is inconsistent with the student's high school graduation plan or   requirements for college admission or earning an industry   certification;                (2)  the student requests permission to enroll in a   virtual or hybrid [an electronic] course at a time that is not   consistent with the enrollment period established by the school   district or open-enrollment charter school providing the course; or                (3)  the district or school determines that the cost of   the course is too high [offers a substantially similar course].          (c-1)  A school district or open-enrollment charter school   may decline to pay the cost for a student of more than three   yearlong virtual [electronic] courses, or the equivalent, during   any school year.  This subsection does not:                (1)  limit the ability of the student to enroll in   additional virtual [electronic] courses at the student's cost; or                (2)  apply to a student enrolled in a full-time virtual   [online] program [that was operating on January 1, 2013].          (d)  Notwithstanding Subsection (c)(2), a school district or   open-enrollment charter school that provides a virtual or hybrid   [an electronic] course [through the state virtual school network]   under Chapter 30B [30A] shall make all reasonable efforts to   accommodate the enrollment of a student in the course under special   circumstances.          (e)  A school district or open-enrollment charter school   that denies a request to enroll a student in a virtual or hybrid   course under Subsection (c) must provide a written explanation of   the denial to the student and the student's parent. The written   explanation must provide notice of the student's ability to appeal   the decision and an explanation of the appeal process, including   the process of pursuing a final appeal heard by the board of   trustees of the district or the governing board of the school. A   determination made by the board of trustees of the school district   or the governing board of the open-enrollment charter school [A   parent may appeal to the commissioner a school district's or   open-enrollment charter school's decision to deny a request to   enroll a student in an electronic course offered through the state   virtual school network. The commissioner's decision] under this   subsection is final and may not be appealed.          SECTION 7.06.  Subtitle F, Title 2, Education Code, is   amended by adding Chapter 30B to read as follows:   CHAPTER 30B. VIRTUAL AND HYBRID CAMPUSES, PROGRAMS, AND COURSES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 30B.001.  DEFINITIONS. In this chapter:                (1)  "Full-time hybrid campus" means a school district   or open-enrollment charter school campus at which at least 50   percent of the enrolled students are enrolled in a full-time hybrid   program authorized under Subchapter C.                (2)  "Full-time hybrid program" means a full-time   educational program offered by a school district or open-enrollment   charter school campus in which:                      (A)  a student is in attendance in person for less   than 90 percent of the minutes of instruction provided; and                      (B)  the instruction and content may be delivered   synchronously or asynchronously over the Internet, in person, or   through other means.                (3)  "Full-time virtual campus" means a school district   or open-enrollment charter school campus at which at least 50   percent of the enrolled students are enrolled in a full-time   virtual program authorized under Subchapter C.                (4)  "Full-time virtual program" means a full-time   educational program offered by a school district or open-enrollment   charter school campus in which:                      (A)  a student is in attendance in person   minimally or not at all; and                      (B)  the instruction and content are delivered   synchronously or asynchronously primarily over the Internet.                (5)  "Hybrid course" means a course in which:                       (A)  a student is in attendance in person for less   than 90 percent of the minutes of instruction provided; and                      (B)  the instruction and content may be delivered   synchronously or asynchronously over the Internet, in person, or   through other means.                (6)  "Parent" means a student's parent or a person   standing in parental relation to a student.                (7)  "Virtual course" means a course in which   instruction and content are delivered synchronously or   asynchronously primarily over the Internet.                (8)  "Whole program virtual instruction provider"   means a private or third-party service that provides oversight and   management of the virtual instruction services or otherwise   provides a preponderance of those services for a full-time virtual   or full-time hybrid campus or program.          Sec. 30B.002.  RULES. (a) The commissioner shall adopt   rules as necessary to administer this chapter.          (b)  To the extent practicable, the commissioner shall   consult school districts, open-enrollment charter schools, and   parents in adopting rules under this section.          (c)  The agency may form an advisory committee to comply with   the provisions of this section. Chapter 2110, Government Code,   does not apply to an advisory committee formed under this section.          Sec. 30B.003.  GRANTS AND FEDERAL FUNDS. (a) For purposes   of this chapter, the commissioner may seek and accept a grant from a   public or private person.          (b)  For purposes of this chapter, the commissioner may   accept federal funds and shall use those funds in compliance with   applicable federal law, regulations, and guidelines.          Sec. 30B.004.  PROVISION OF COMPUTER EQUIPMENT OR INTERNET   SERVICE. This chapter does not:                (1)  require a school district, an open-enrollment   charter school, a virtual course provider, or the state to provide a   student with home computer equipment or Internet access for a   virtual course provided by a school district or open-enrollment   charter school; or                (2)  prohibit a school district or open-enrollment   charter school from providing a student with home computer   equipment or Internet access for a virtual course provided by the   district or school.          Sec. 30B.005.  EXTRACURRICULAR ACTIVITY.  A student enrolled   in a virtual or hybrid course, program, or campus offered under this   chapter may participate in an extracurricular activity sponsored or   sanctioned by the school district or open-enrollment charter school   in which the student is enrolled or by the University   Interscholastic League in the same manner as other district or   school students.          Sec. 30B.006.  HYBRID AND VIRTUAL INSTRUCTION PERMITTED.   (a) A school district or open-enrollment charter school may   deliver instruction through hybrid courses, virtual courses,   full-time hybrid programs, and full-time virtual programs in the   manner provided by this chapter.          (b)  The following entities may deliver instruction through   hybrid or virtual courses under this chapter in the same manner   provided for a school district or open-enrollment charter school:                (1)  a consortium of school districts or   open-enrollment charter schools;                (2)  an institution of higher education, as that term   is defined by Section 61.003; or                (3)  a regional education service center.          (c)  A school district or open-enrollment charter school   that delivers instruction through a hybrid or virtual course shall   develop written information describing each hybrid or virtual   course available for enrollment and complying with any other   requirement of Section 26.0031.          (d)  A school district or open-enrollment charter school   shall make information under this section available to students and   parents at the time students ordinarily select courses and may   provide that information to students and parents at other times as   determined by the district or school.          Sec. 30B.007.  FOUNDATION SCHOOL FUNDING. A student   enrolled in a hybrid course, virtual course, full-time hybrid   program, or full-time virtual program offered under this chapter by   a school district or open-enrollment charter school is counted   toward the district's or school's average daily attendance in the   same manner as district or school students not enrolled in a hybrid   course, virtual course, full-time hybrid program, or full-time   virtual program.   SUBCHAPTER B.  HYBRID AND VIRTUAL COURSES          Sec. 30B.051.  HYBRID OR VIRTUAL COURSE QUALITY   REQUIREMENTS. (a)  A school district or open-enrollment charter   school that offers a hybrid or virtual course under this chapter   must certify to the commissioner that the course:                (1)  includes the appropriate essential knowledge and   skills adopted under Subchapter A, Chapter 28;                (2)  provides instruction at the appropriate level of   rigor for the grade level at which the course is offered and will   prepare a student enrolled in the course for the student's next   grade level or a subsequent course in a similar subject matter; and                (3)   except as provided by Subsection (b), meets   standards for hybrid or virtual courses adopted by the   commissioner.          (b)  If the commissioner has not adopted applicable   standards for hybrid or virtual courses, a school district or   open-enrollment charter school that offers a hybrid or virtual   course must instead certify to the commissioner that the course   meets the National Standards for Quality Online Courses published   by the Virtual Learning Leadership Alliance, Quality Matters, and   the Digital Learning Collaborative, or a successor publication.          Sec. 30B.052.  RIGHTS OF STUDENTS REGARDING HYBRID AND   VIRTUAL COURSES. (a) Except as provided by Section 30B.104(b), a   school district or open-enrollment charter school may not require a   student to enroll in a hybrid or virtual course.          (b)  A hybrid or virtual course offered under this chapter to   a student receiving special education services or other   accommodations must meet the needs of the participating student in   a manner consistent with Subchapter A, Chapter 29, and with federal   law, including the Individuals with Disabilities Education Act (20   U.S.C. Section 1400 et seq.) and Section 504, Rehabilitation Act of   1973 (29 U.S.C. Section 794), as applicable.          Sec. 30B.053.  RIGHTS OF TEACHERS REGARDING HYBRID AND   VIRTUAL COURSES. (a) Except as provided by Subsection (a-1), a   school district or open-enrollment charter school may not require a   classroom teacher to provide both virtual instruction and in-person   instruction for a course offered under this chapter during the same   class period. The commissioner may waive the requirements of this   subsection for courses included in the enrichment curriculum under   Section 28.002.          (a-1)  Subsection (a) does not apply to a requirement that a   classroom teacher simulcast the teacher's in-person instruction   provided that the teacher is not required to interact with students   observing the instruction virtually.          (b)  A classroom teacher may not provide instruction for a   hybrid or virtual course offered under this chapter unless:                (1)  the teacher has received appropriate professional   development in hybrid or virtual instruction, as determined by the   school district or open-enrollment charter school at which the   teacher is employed; or                (2)  the district or school has determined that the   teacher has sufficient previous experience to not require the   professional development described by Subdivision (1).          (c)  A school district or open-enrollment charter school may   not directly or indirectly coerce any classroom teacher hired to   provide in-person instruction to agree to an assignment to teach a   hybrid or virtual course.          Sec. 30B.054.  ASSESSMENTS. Except as authorized by   commissioner rule, an assessment instrument administered under   Section 39.023 or 39.025 to a student enrolled in a hybrid or   virtual course offered under this chapter shall be administered to   the student in the same manner in which the assessment instrument is   administered to a student enrolled in an in-person course at the   student's school district or open-enrollment charter school.          Sec. 30B.055.  TUITION AND FEES. A school district or   open-enrollment charter school may charge tuition and fees for a   hybrid or virtual course provided to a student who:                (1)  is not eligible to enroll in a public school in   this state; or                (2)  is not enrolled in the school district or   open-enrollment charter school.          Sec. 30B.056.  ATTENDANCE FOR CLASS CREDIT OR GRADE.     Notwithstanding Section 25.092, a school district or   open-enrollment charter school shall establish the participation   necessary to earn credit or a grade for a hybrid or virtual course   offered by the district or school.          Sec. 30B.057.  AGENCY PUBLICATION OF AVAILABLE VIRTUAL   COURSES. (a) The agency shall publish a list of virtual courses   offered by school districts and open-enrollment charter schools in   this state that includes:                (1)  whether the course is available to a student who is   not otherwise enrolled in the offering district or school;                (2)  the cost of the course; and                (3)  information regarding any third-party provider   involved in the delivery of the course.          (b)  A school district or open-enrollment charter school   shall provide to the agency information required to publish the   list under Subsection (a).   SUBCHAPTER C. FULL-TIME HYBRID AND FULL-TIME VIRTUAL CAMPUSES          Sec. 30B.101.  FULL-TIME HYBRID OR FULL-TIME VIRTUAL CAMPUS   AUTHORIZATION. (a) A school district or open-enrollment charter   school may operate a full-time hybrid campus or a full-time virtual   campus if authorized by the commissioner in accordance with this   section.          (b)  The commissioner shall adopt rules establishing the   requirements for and process by which a school district or   open-enrollment charter school may apply for authorization to   operate a full-time hybrid campus or a full-time virtual campus.     The rules adopted by the commissioner may require certain written   application materials and interviews and shall require a school   district or open-enrollment charter school to:                (1)  engage in a year of planning before offering a   course under this chapter to verify the course is designed in   accordance with high-quality criteria;                (2)  develop an academic plan that incorporates:                      (A)  curriculum and instructional practices   aligned with the appropriate essential knowledge and skills   provided under Subchapter A, Chapter 28;                      (B)  monitoring of the progress of student   performance and interventions;                      (C)  a method for meeting the needs of and   complying with federal and state requirements for special   populations and at-risk students; and                      (D)  compliance with the requirements of this   chapter;                (3)  develop an operations plan that addresses:                      (A)  staffing models;                      (B)  the designation of selected school leaders;                      (C)  professional development for staff;                      (D)  student and family engagement;                      (E)  school calendars and schedules;                      (F)  student enrollment eligibility;                      (G)  cybersecurity and student data privacy   measures; and                      (H)  any educational services to be provided by a   private or third party; and                (4)  demonstrate the capacity to execute the district's   or school's plan successfully.          (c)  A full-time hybrid campus or full-time virtual campus   authorized under this section must include:                (1)  at least one grade level in which an assessment   instrument is required to be administered under Section 39.023(a)   or (c), including each subject or course for which an assessment   instrument is required in that grade level;                (2)  sufficient grade levels, as determined by the   commissioner, to allow for the annual evaluation of the performance   of students who complete the courses offered; or                (3)  for a campus that does not include grade levels   described by Subdivision (1) or (2), another performance evaluation   measure approved by the commissioner during the authorization   process.          (d)  A campus approved under this subchapter may only apply   for and receive authorization to operate as a full-time hybrid   campus or a full-time virtual campus. A campus may not change its   operation designation during the authorization process or after the   campus is authorized.          (e)  The commissioner may only authorize a school district or   open-enrollment charter school to operate a full-time hybrid campus   or a full-time virtual campus if the commissioner determines that   the authorization of the campus is likely to result in improved   student learning opportunities. If a district or school will use a   private or third party in operating the campus, the commissioner   shall consider the historical performance of the private or third   party, if known, in making a determination under this section.          (f)  A determination made by the commissioner under this   section is final and not subject to appeal.          Sec. 30B.102.  REVOCATION. (a)  Unless revoked as provided   by this section, the commissioner's authorization of a full-time   hybrid campus or full-time virtual campus under Section 30B.101   continues indefinitely.          (b)  The commissioner shall revoke the authorization of a   full-time hybrid campus or full-time virtual campus if the campus   has been assigned, for the three preceding school years:                (1)  a needs improvement or unacceptable performance   rating under Subchapter C, Chapter 39;                (2)  a rating of performance that needs improvement or   unacceptable, as determined by the commissioner, on a performance   evaluation approved by the commissioner under Section   30B.101(c)(3); or                (3)  any combination of the ratings described by   Subdivision (1) or (2).          (c)  The commissioner may, based on a special investigation   conducted under Section 39.003:                (1)  revoke an authorization of a full-time hybrid   campus or full-time virtual campus; or                (2)  require any intervention authorized under that   section.          (d)  If a private or third party is determined to be   ineligible under Section 30B.152, the commissioner shall revoke an   authorization of a full-time hybrid campus or full-time virtual   campus for which the private or third party acts as a whole program   virtual instruction provider, unless the commissioner approves a   request by the school district or open-enrollment charter school   that operates the campus to use an alternative private or third   party.          (e)  An appeal by a school district or open-enrollment   charter school of a revocation of an authorization under this   chapter that results in the closure of a campus must be made under   Section 39A.301.          Sec. 30B.103.  STUDENT ELIGIBILITY. (a) A student eligible   to enroll in a public school of this state is eligible to enroll at a   full-time hybrid campus.          (b)  A student is eligible to enroll in a full-time virtual   campus if the student:                (1)  attended a public school in this state for a   minimum of six weeks in the current school year or in the preceding   school year;                (2)  is, in the school year in which the student first   seeks to enroll in the full-time virtual campus, enrolled in the   first grade or a lower grade level;                (3)  was not required to attend public school in this   state due to nonresidency during the preceding school year;                (4)  is a dependent of a member of the United States   military who has been deployed; or                (5)  has been placed in substitute care in this state.          Sec. 30B.104.  STUDENT RIGHTS REGARDING FULL-TIME HYBRID AND   FULL-TIME VIRTUAL CAMPUSES.  (a) A student enrolled in a school   district may not be compelled to enroll in a full-time hybrid or   full-time virtual campus. A school district must offer the option   for a student's parent to select in-person instruction for the   student.          (b)  Notwithstanding Subsection (a) or Section 30B.052, an   open-enrollment charter school may require a student to attend a   full-time hybrid or full-time virtual campus.          Sec. 30B.105.  CAMPUS DESIGNATIONS. The commissioner shall   determine and assign a unique campus designation number to each   full-time hybrid campus or full-time virtual campus authorized   under this subchapter.          Sec. 30B.106.  FUNDING. (a) For purposes of calculating the   average daily attendance of students attending a full-time hybrid   campus or full-time virtual campus, the commissioner shall use the   number of full-time equivalent students enrolled in the full-time   hybrid or full-time virtual campus multiplied by the average   attendance rate of the school district or open-enrollment charter   school that offers the full-time hybrid or full-time virtual campus   not including any student enrolled full-time in a full-time hybrid   or full-time virtual campus. In the event that a reliable   attendance rate cannot be determined under this section, the   commissioner shall use the statewide average attendance rate.          (b)  The commissioner shall provide proportionate funding to   the applicable school district or open-enrollment charter school   for a student that alternates attendance between a traditional,   in-person campus setting and the full-time hybrid or full-time   virtual campus of any single district or school in the same school   year.   SUBCHAPTER D. PRIVATE AND THIRD-PARTY PROVIDERS          Sec. 30B.151.  NOTICE AND USE OF PRIVATE OR THIRD PARTY. (a)   A school district or open-enrollment charter school shall provide   notice to the commissioner of the use of or change in affiliation of   a private or third party acting as a whole program virtual   instruction provider for a full-time hybrid or full-time virtual   campus or program.          (b)  Except as provided by Section 30B.152, a school district   or open-enrollment charter school may not use a private or third   party to act as a whole program virtual instruction provider if the   party has been determined to be ineligible under that section.          Sec. 30B.152.  PRIVATE OR THIRD-PARTY ACCOUNTABILITY. (a)   The commissioner shall, to the extent feasible, evaluate the   performance of a private or third party acting as a whole program   virtual instruction provider for a school district or   open-enrollment charter school.          (b)  The commissioner shall establish a standard to   determine if a private or third party is ineligible to act as a   whole program virtual instruction provider. A private or third   party determined to be ineligible under this section remains   ineligible until after the fifth anniversary of that determination.          (c)  A school district or open-enrollment charter school may   use a private or third party determined to be ineligible under   Subsection (b) as a whole program virtual instruction provider if:                (1)  the district or school requests approval from the   commissioner; and                (2)  the commissioner determines that the reasons the   private or third party was declared ineligible under Subsection (b)   will not affect the operation of the party as a whole program   virtual instruction provider at the district or school.   SUBCHAPTER E. STATE SUPPORT          Sec. 30B.201.  EDUCATOR PROFESSIONAL DEVELOPMENT. From   funds appropriated or otherwise available, the agency shall develop   professional development courses and materials aligned with   research-based practices for educators in providing high-quality   virtual education.          Sec. 30B.202.  DEVELOPMENT GRANTS FOR VIRTUAL EDUCATION.   From funds appropriated or otherwise available, the agency shall   provide grants and technical assistance to school districts and   open-enrollment charter schools to aid in the establishment of   high-quality full-time hybrid or full-time virtual campuses.          SECTION 7.07.  Section 33.009(d), Education Code, is amended   to read as follows:          (d)  An academy developed under this section must provide   counselors and other postsecondary advisors with knowledge and   skills to provide counseling to students regarding postsecondary   success and productive career planning and must include information   relating to:                (1)  each endorsement described by Section   28.025(c-1), including:                      (A)  the course requirements for each   endorsement; and                      (B)  the postsecondary educational and career   opportunities associated with each endorsement;                (2)  available methods for a student to earn credit for   a course not offered at the school in which the student is enrolled,   including enrollment in a virtual [an electronic] course provided   [through the state virtual school network] under Chapter 30B [30A];                (3)  general academic performance requirements for   admission to an institution of higher education, including the   requirements for automatic admission to a general academic teaching   institution under Section 51.803;                (4)  regional workforce needs, including information   about the required education and the average wage or salary for   careers that meet those workforce needs; and                (5)  effective strategies for engaging students and   parents in planning for postsecondary education and potential   careers, including participation in mentorships and business   partnerships.          SECTION 7.08.  Subchapter A, Chapter 37, Education Code, is   amended by adding Section 37.0071 to read as follows:          Sec. 37.0071.  VIRTUAL EDUCATION AS ALTERNATIVE TO   EXPULSION. (a)  Except as provided by Subsection (b), before a   school district or open-enrollment charter school may expel a   student, the district or school shall consider the appropriateness   and feasibility of, as an alternative to expulsion, enrolling the   student in a full-time hybrid program, full-time virtual program,   full-time hybrid campus, or full-time virtual campus, as those   terms are defined in Section 30B.001.          (b)  Subsection (a) does not apply to a student expelled   under Section 37.0081 or 37.007(a), (d), or (e).          SECTION 7.09.  Section 48.005, Education Code, is amended by   adding Subsection (e-1) to read as follows:          (e-1)  In a school year in which the occurrence of an   emergency or crisis, as defined by commissioner rule, causes a   statewide decrease in average daily attendance of school districts   entitled to funding under this chapter or, for an emergency or   crisis occurring only within a specific region of this state,   causes a regional decrease in the average daily attendance of   school districts located in the affected region, the commissioner   shall modify or waive requirements applicable to the affected   districts under this section and adopt appropriate safeguards as   necessary to ensure the continued support and maintenance of an   efficient system of public free schools and the continued delivery   of high-quality instruction under that system.          SECTION 7.10.  Section 48.053(b), Education Code, is amended   to read as follows:          (b)  A school district to which this section applies is   entitled to funding under this chapter as if the district were a   full-time hybrid campus or full-time virtual campus for purposes of   Section 30B.106 with [had] no tier one local share for purposes of   Section 48.256 for each student enrolled in the district:                (1)  who resides in this state; or                (2)  who:                      (A)  is a dependent of a member of the United   States military;                      (B)  was previously enrolled in school in this   state; and                      (C)  does not reside in this state due to a   military deployment or transfer.          SECTION 7.11.  Section 48.104(f), Education Code, is amended   to read as follows:          (f)  A student receiving a full-time virtual education   provided through a full-time virtual campus under Chapter 30B shall   [through the state virtual school network may] be included in   determining the number of students who are educationally   disadvantaged and reside in an economically disadvantaged census   block group under Subsection (b) or (e), as applicable[, if the   school district submits to the commissioner a plan detailing the   enhanced services that will be provided to the student and the   commissioner approves the plan].          SECTION 7.12.  Section 48.111, Education Code, is amended by   amending Subsection (b) and adding Subsection (b-1) to read as   follows:          (b)  For purposes of Subsection (a), in determining the   number of students enrolled in a school district, the commissioner   shall exclude students enrolled in the district who receive   full-time instruction provided through a full-time virtual campus   under Chapter 30B [through the state virtual school network under   Chapter 30A].          (b-1)  For purposes of Subsection (a), in determining the   number of students enrolled in a school district, the commissioner   shall exclude students enrolled in the district who receive   full-time instruction through the state virtual school network   under Chapter 30A as that chapter existed on September 1, 2023.   This subsection expires September 1, 2029.          SECTION 7.13.  The following provisions of the Education   Code are repealed:                (1)  Section 26.0031(f); and                (2)  Chapter 30A.          SECTION 7.14.  (a)  Notwithstanding the repeal by this   article of Chapter 30A, Education Code, a school district or   open-enrollment charter school providing an electronic course or a   full-time program through the state virtual school network in   accordance with Chapter 30A, Education Code, as that law existed   immediately before the effective date of this article, may, except   as provided by Subsection (b) of this section, continue to provide   that course or full-time program as if that chapter were still in   effect until the end of the 2025-2026 school year.          (b)  The funding provided to a school district or   open-enrollment charter school for a student enrolled in an   electronic course or full-time program offered through the state   virtual school network in accordance with Chapter 30A, Education   Code, as that law existed immediately before the effective date of   this article, shall be determined, as applicable, under Section   30B.007 or 30B.106, Education Code, as added by this article.          SECTION 7.15.  The commissioner of education shall adopt   rules providing an expedited authorization process for a school   district or open-enrollment charter school that applies to operate   a full-time hybrid campus or a full-time virtual campus under   Chapter 30B, Education Code, as added by this article, if the   district or school, as of the effective date of this article:                (1)  operates an electronic course or full-time program   through the state virtual school network in accordance with Chapter   30A, Education Code, as that law existed immediately before the   effective date of this article; or                (2)  operates a virtual education program, regardless   of whether the district or school received funding for students   enrolled in the program during the 2022-2023 or 2023-2024 school   year.          SECTION 7.16.  This article takes effect immediately if this   Act receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this article takes effect on the 91st day after the last day   of the legislative session.   ARTICLE 8. CHANGES RELATED TO ACCOUNTABILITY          SECTION 8.01.  Subchapter A, Chapter 39, Education Code, is   amended by adding Section 39.008 to read as follows:          Sec. 39.008.  EXPIRATION OF CHAPTER. This chapter expires   August 31, 2026.           SECTION 8.02.  Subchapter C, Chapter 39, Education Code, is   amended by adding Section 39.0521 to read as follows:          Sec. 39.0521.  TEMPORARY PROVISION: ASSIGNMENT OF   PERFORMANCE RATINGS AND SCORING OF ASSESSMENT INSTRUMENTS.  (a)   Notwithstanding any other law, for the 2023-2024, 2024-2025, and   2025-2026 school years, the commissioner shall use the indicators,   standards, procedures, criteria, and calculations prescribed by   the 2022 Accountability Manual, adopted under 19 T.A.C. Section   97.1001, as that rule existed on September 1, 2023, to:                (1)  evaluate school district and campus performance   and assign each district and campus a performance rating; and                (2)  score assessment instruments administered under   Subchapter B.          (b)  The agency shall receive a direct appropriation from the   legislature for any additional costs for scoring the assessment   instruments administered under Subchapter B in the manner described   by Subsection (a)(2).          (c)  This section expires August 31, 2026.          SECTION 8.03.  Section 39.053, Education Code, is amended by   amending Subsection (c) and adding Subsections (c-4), (c-5), and   (c-6) to read as follows:          (c)  School districts and campuses must be evaluated based on   three domains of indicators of achievement adopted under this   section that include:                (1)  in the student achievement domain, indicators of   student achievement that must include:                      (A)  for evaluating the performance of districts   and campuses generally:                            (i)  an indicator that accounts for the   results of assessment instruments required under Sections   39.023(a), (c), and (l), as applicable for the district and campus,   including the results of assessment instruments required for   graduation retaken by a student, aggregated across grade levels by   subject area, including:                                  (a)  for the performance standard   determined by the commissioner under Section 39.0241(a), the   percentage of students who performed satisfactorily on the   assessment instruments, aggregated across grade levels by subject   area; and                                  (b)  for the college readiness   performance standard as determined under Section 39.0241, the   percentage of students who performed satisfactorily on the   assessment instruments, aggregated across grade levels by subject   area; and                            (ii)  an indicator that accounts for the   results of assessment instruments required under Section   39.023(b), as applicable for the district and campus, including the   percentage of students who performed satisfactorily on the   assessment instruments, as determined by the performance standard   adopted by the agency, aggregated across grade levels by subject   area; and                      (B)  for evaluating the performance of high school   campuses and districts that include high school campuses,   indicators that account for:                            (i)  students who satisfy the Texas Success   Initiative (TSI) college readiness benchmarks prescribed by the   Texas Higher Education Coordinating Board under Section 51.334 on   an assessment instrument in reading or mathematics designated by   the coordinating board under that section;                            (ii)  students who satisfy relevant   performance standards on advanced placement tests or similar   assessments;                            (iii)  students who earn dual course credits   in the dual credit courses;                            (iv)  students who demonstrate military   readiness by:                                   (a)  enlisting [enlist] in the armed   forces of the United States or the Texas National Guard;                                  (b)  achieving a passing score set by   the applicable military branch on the Armed Services Vocational   Aptitude Battery test; or                                  (c)  successfully completing a Junior   Reserve Officer Training Corps program;                            (v)  students who earn industry   certifications;                            (vi)  students admitted into postsecondary   industry certification programs that require as a prerequisite for   entrance successful performance at the secondary level;                            (vii)  students whose successful completion   of a course or courses under Section 28.014 indicates the student's   preparation to enroll and succeed, without remediation, in an   entry-level general education course for a baccalaureate degree or   associate degree;                            (viii)  students who successfully met   standards on a composite of indicators that through research   indicates the student's preparation to enroll and succeed, without   remediation, in an entry-level general education course for a   baccalaureate degree or associate degree;                            (ix)  high school graduation rates, computed   in accordance with standards and definitions adopted in compliance   with the Every Student Succeeds Act (20 U.S.C. Section 6301 et seq.)   subject to the exclusions provided by Subsections (g), (g-1),   (g-2), (g-3), and (g-4);                            (x)  students who successfully completed an   OnRamps dual enrollment course;                            (xi)  students who successfully completed a   practicum or internship approved by the State Board of Education;                            (xii)  students who are awarded an associate   degree; and                            (xiii)  students who successfully completed   a program of study in career and technical education;                (2)  in the school progress domain, indicators for   effectiveness in promoting student learning, which must include:                      (A)  for assessment instruments, including   assessment instruments under Subdivisions (1)(A)(i) and (ii), the   percentage of students who met the standard for improvement, as   determined by the commissioner; and                      (B)  for evaluating relative performance, the   performance of districts and campuses compared to similar districts   or campuses; and                (3)  in the closing the gaps domain, the use of   disaggregated data to demonstrate the differentials among students   from different racial and ethnic groups, socioeconomic   backgrounds, and other factors, including:                      (A)  students formerly receiving special   education services;                      (B)  students continuously enrolled; and                      (C)  students who are mobile.          (c-4)  The agency shall study the college, career, and   military readiness indicators adopted under Subsection (c) to   determine the correlation of each indicator with post-secondary   success, including the correlation of industry certifications with   wages and available jobs.  The assignment of value for an indicator   must be based on the strength of the indicator's correlation with   successful outcomes.          (c-5)  The agency shall maintain a list of industry   certifications that are eligible for purposes of Subsection   (c)(1)(B)(v). The certifications must:                (1)  be aligned to a program of study that, according to   labor market data, prepares students for high-wage, high-skill,   in-demand occupations;                (2)  allow students to demonstrate mastery of the   skills required for occupations within an approved program of   study; and                (3)  be obtained through an assessment of the knowledge   and skills provided by or determined by an independent, third-party   certifying entity using predetermined standards for knowledge,   skills, and competencies.          (c-6)  The agency shall determine the eligibility of   industry certifications under Subsection (c-5) using the most   current labor market information.  A certification the agency   determines is no longer eligible for purposes of Subsection   (c)(1)(B)(v) shall be removed from the list maintained under   Subsection (c-5) not later than four years after the date the agency   makes the determination.  During the four years following an   agency's determination under this subsection that an industry   certification is no longer eligible for purposes of Subsection   (c)(1)(B)(v), a school district may receive the benefit of   achievement indicators based on that industry certification for   purposes of Subsection (c) only for a cohort of students who earn   the industry certification and graduate within the four-year   period.          SECTION 8.04.  Section 39.0541, Education Code, is amended   to read as follows:          Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS.  The   commissioner may adopt indicators and standards under this   subchapter at any time [during a school year] before issuing the   evaluation of a school district or campus for a school year.          SECTION 8.05.  Section 39.0542(a), Education Code, is   amended to read as follows:          (a)  The [Each school year, the] commissioner shall provide   each school district a document in a simple, accessible format that   explains the accountability performance measures, methods, and   procedures that will be applied [for that school year] in assigning   each school district and campus a performance rating under Section   39.054.          SECTION 8.06.  Subchapter H, Chapter 39, Education Code, is   amended by adding Section 39.231 to read as follows:          Sec. 39.231.  LOCAL ACCOUNTABILITY GRANT PROGRAM. (a) With   funds appropriated or otherwise available for the purpose, the   agency shall establish a grant program with capacity to assist at   least one school district per education service center region in   developing local accountability systems that comply with the   requirements of Section 39.0544.          (b)  The commissioner shall adopt rules to implement this   section.          SECTION 8.07.  Chapter 39, Education Code, is amended by   adding Subchapter N to read as follows:   SUBCHAPTER N. TEXAS COMMISSION ON ASSESSMENT AND ACCOUNTABILITY          Sec. 39.451.  DEFINITION. In this subchapter, "commission"   means the Texas Commission on Assessment and Accountability.          Sec. 39.452.  TEXAS COMMISSION ON ASSESSMENT AND   ACCOUNTABILITY. (a) The commission is established to develop and   make recommendations for:                (1)  improvements to the current public school   assessment and accountability systems; and                (2)  the adoption of a new assessment and   accountability system as provided by the Every Student Succeeds Act   (20 U.S.C. Section 6301 et seq.).          (b)  The commission is composed of 15 members, consisting of:                (1)  four members appointed by the governor;                (2)  five members appointed by the lieutenant governor;                (3)  five members appointed by the speaker of the house   of representatives; and                (4)  a member of the State Board of Education, as   designated by the chair of that board.          (c)  The members appointed by the governor must have an   interest in public education and include at least:                (1)  one person who is a current or retired classroom   teacher with at least 10 years of teaching experience;                (2)  one person who is a member of the business   community; and                (3)  one person who is a member of the civic community.          (d)  The appointments made by the lieutenant governor and the   speaker of the house of representatives must each consist of:                (1)  three members of the applicable legislative   chamber;                 (2)  an administrator in the public school system or an   elected member of the board of trustees of a school district; and                (3)  a member of the public who works in public   education with experience in the assessment and accountability   system.          (e)  In making appointments under Subsections (b)(1), (2),   and (3), the governor, lieutenant governor, and speaker of the   house of representatives shall coordinate to ensure that the   membership of the commission reflects, to the extent possible, the   ethnic and geographic diversity of this state.          Sec. 39.453.  PRESIDING OFFICER.  The governor shall   designate the presiding officer of the commission.          Sec. 39.454.  COMPENSATION AND REIMBURSEMENT. A member of   the commission is not entitled to compensation for service on the   commission but is entitled to reimbursement for actual and   necessary expenses incurred in performing commission duties.          Sec. 39.455.  ADMINISTRATIVE SUPPORT AND FUNDING. (a) One   full-time employee of the agency shall provide administrative   support for the commission.  Funding for the full-time employee   shall be provided by legislative appropriation not to exceed   $100,000 made to the agency for that purpose.          (b)  Funding for the administrative and operational expenses   of the commission shall be provided by legislative appropriation   not to exceed $100,000 made to the agency for that purpose.          Sec. 39.456.  RECOMMENDATIONS. (a) The commission shall   develop recommendations under this subchapter to address issues   related to the public school statewide assessment and   accountability system, including:                (1)  the purpose of the assessment and accountability   system and the relationship between state and local accountability   in that system;                (2)  the appropriate number of assessments per grade   level that comply with federal requirements;                 (3)  changes in policy regarding the assessment and   accountability system necessary to meet the needs of the state;                (4)  grading systems and the impact that those systems   will have on the assessment and accountability system, including   the use of artificial intelligence in grading systems;                (5)  the development and use of additional   research-based indicators for the assessment and accountability   system; and                 (6)  the adoption of an assessment and accountability   system that meets the needs of the 21st-century student.          (b)  The commission may establish one or more working groups   composed of not more than five members of the commission to study,   discuss, and address specific policy issues and recommendations to   refer to the commission for consideration.          Sec. 39.457.  REPORT. Not later than December 31, 2024, the   commission shall prepare and deliver a report to the governor and   the legislature that recommends statutory changes to improve the   public school assessment and accountability system, including any   adjustments to funding necessary to account for student   demographics.          Sec. 39.458.  PUBLIC MEETINGS AND PUBLIC INFORMATION. (a)   The commission may hold public meetings as needed to fulfill its   duties under this subchapter.          (b)  The commission is subject to Chapters 551 and 552,   Government Code.          Sec. 39.459.  COMMISSION ABOLISHED; EXPIRATION OF   SUBCHAPTER.  The commission is abolished and this subchapter   expires January 7, 2025.          SECTION 8.08.  (a) Notwithstanding any other law, the   commissioner of education may not assign A through F ratings,   domain-scaled scores, or overall scaled scores to an independent   school district or district campus under Chapter 39, Education   Code, for the 2022-2023 school year.          (b)  Notwithstanding Subchapter B, Chapter 2001, Government   Code, the commissioner of education may, using abbreviated notice   as determined practicable by the commissioner and without a public   hearing, but with input from the legislature, adopt rules for   determining the accountability of public schools for the 2022-2023   school year.          SECTION 8.09.  This article takes effect on the 91st day   after the last day of the legislative session.