89R20977 MM/ANG/KJE-F     By: Buckley, Bernal H.B. No. 2     Substitute the following for H.B. No. 2:     By:  Buckley C.S.H.B. No. 2       A BILL TO BE ENTITLED   AN ACT   relating to public education and public school finance.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. CHANGES RELATED TO PUBLIC EDUCATION AND PUBLIC SCHOOL   FINANCE          SECTION 1.01.  Section 12.1058(d), Education Code, is   amended to read as follows:          (d)  A political subdivision shall consider an   open-enrollment charter school a school district for purposes of   zoning, project permitting, platting and replatting processes,   business licensing, franchises, utility services, signage,   subdivision regulation, property development projects, the   requirements for posting bonds or securities, contract   requirements, land development standards as provided by Section   212.902, Local Government Code, tree and vegetation regulations,   regulations of architectural features of a structure, construction   of fences, landscaping, garbage disposal, noise levels, fees or   other assessments, and construction or site development work [if   the charter school provides to the political subdivision the   certification described by Subsection (e)].          SECTION 1.02.  Section 12.106, Education Code, is amended by   amending Subsections (a), (a-2), (d), (e), and (f) and adding   Subsection (e-1) to read as follows:          (a)  A charter holder is entitled to receive for the   open-enrollment charter school funding under Chapter 48 equal to   the amount of funding per student in weighted average daily   attendance to which the charter holder would be entitled for the   school under that chapter if the school were a school district   without a tier one local share for purposes of Section 48.266,   excluding:                (1)  the adjustment under Section 48.052;                (2)  [,] the funding under Sections 48.101 and [,   48.110,] 48.111; [, and 48.112,] and                (3)  enrichment funding under Section 48.202(a) [, to   which the charter holder would be entitled for the school under   Chapter 48 if the school were a school district without a tier one   local share for purposes of Section 48.266].          (a-2)  In addition to the funding provided by Subsection (a),   a charter holder is entitled to receive for the open-enrollment   charter school an allotment per student in average daily attendance   in an amount equal to the difference between:                (1)  the product of:                      (A)  the quotient of:                            (i)  the total amount of funding provided to   eligible school districts under Section 48.101(b) or (c); and                            (ii)  the total number of students in   average daily attendance in school districts that receive an   allotment under Section 48.101(b) or (c); and                      (B)  the sum of one and the quotient of:                            (i)  the total number of students in average   daily attendance in school districts that receive an allotment   under Section 48.101(b) or (c); and                            (ii)  the total number of students in   average daily attendance in school districts statewide; and                (2)  $700 [$125].          (d)  Subject to Subsections [Subsection] (e) and (e-1), in   addition to other amounts provided by this section, a charter   holder is entitled to receive, for the open-enrollment charter   school, an annual allotment [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 multiplied by   the guaranteed level of state and local funds per student per cent   of tax effort under Section 46.032(a); or                (2)  the maximum amount of the basic allotment provided   under Section 48.051 for the applicable school year multiplied by   0.07 [a rate that would result in a total amount to which charter   schools are entitled under this subsection for the current year   equal to $60 million].          (e)  A charter holder is entitled to receive funding under   Subsection (d) for an open-enrollment charter school only if:                (1)  the [most recent] overall performance ratings   [rating] assigned to the open-enrollment charter school under   Subchapters [Subchapter] C and D, Chapter 39, for the two preceding   school years reflect [reflects] at least acceptable performance;                (2)  for an open-enrollment charter school that has not   been assigned performance ratings under both Subchapters C and D,   Chapter 39, the overall performance rating assigned to the school   for the two preceding school years under either of those   subchapters reflects at least acceptable performance; or                (3)  the[. This subsection does not apply to a] charter   holder [that] operates a school program located at a day treatment   facility, residential treatment facility, psychiatric hospital, or   medical hospital.          (e-1)  A charter holder is entitled to receive funding under   Subsection (d) for an open-enrollment charter school only if the   governing body of the school annually certifies in writing to the   agency that no administrator, officer, or employee of the school   and no member of the governing body of the school or its charter   holder derives any personal financial benefit from a real estate   transaction with the school.          (f)  Funds received by a charter holder under Subsection (d):                (1)  notwithstanding any other law, may not be used to   pay a salary, bonus, stipend, or any other form of compensation to a   school superintendent or administrator serving as educational   leader and chief executive officer of the school; and                (2)  may only be used:                      (A) [(1)]  to lease an instructional facility;                      (B) [(2)]  to pay property taxes imposed on an   instructional facility;                      (C) [(3)]  to pay debt service on bonds issued for   a purpose for which a school district is authorized to issue bonds   under Section 45.001(a)(1) or to pay for a purchase for which a   school district is authorized to issue bonds under that section [to   finance an instructional facility]; or                      (D) [(4)]  for any other purpose related to the   purchase, lease, sale, acquisition, or maintenance of an   instructional facility.          SECTION 1.03.  Section 12.156(a), Education Code, is amended   to read as follows:          (a)  Except as otherwise provided by this subchapter,   Subchapter D, including Section 12.106(d), applies to a college or   university charter school or junior college charter school as   though the college or university charter school or junior college   charter school, as applicable, were granted a charter under that   subchapter.          SECTION 1.04.  Section 12.263, Education Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  An eligible entity granted a charter under this   subchapter is entitled to receive an allotment under Section   12.106(d) for the adult education program only if:                (1)  the overall performance rating assigned to the   adult education program under the applicable accountability   framework adopted under Section 12.262 for the two preceding school   years reflects at least acceptable performance; or                 (2)  for an adult education program that has not been   assigned a performance rating under the applicable accountability   framework adopted under Section 12.262, the overall performance   ratings assigned to the program under Subchapters C and D, Chapter   39, for the two preceding school years reflect at least acceptable   performance.          SECTION 1.05.  Section 21.3521, Education Code, is amended   by amending Subsections (a), (c), and (e) and adding Subsections   (d-1), (d-2), and (d-3) 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].          (d-1)  Each school year, the commissioner shall, using   criteria developed by the commissioner, designate as enhanced   teacher incentive allotment public schools school districts and   open-enrollment charter schools that implement comprehensive   school evaluation and support systems.  The criteria developed by   the commissioner must require a district or school to:                (1)  for principals and assistant principals,   implement:                      (A)  a strategic evaluations system aligned with   the district's or school's teacher designation system; and                      (B)  a compensation system based on performance;                (2)  ensure that under the school district's or   open-enrollment charter school's teacher designation system   substantially all classroom teachers, regardless of the grade level   or subject area to which the teacher is assigned, are eligible to   earn a designation under Subsection (a);                (3)  implement for all classroom teachers a   compensation plan based on performance that:                      (A)  uses a salary schedule that is based on   differentiation among classroom teacher appraisals as permitted   under this section; and                      (B)  does not include across-the-board salary   increases for classroom teachers except for periodic changes to the   district's or school's salary schedule to adjust for significant   inflation; and                (4)  implement a locally designed plan to place highly   effective teachers at high needs campuses and in accordance with   Section 28.0062(a)(3).          (d-2)  The commissioner may remove a school district's or   open-enrollment charter school's designation under Subsection   (d-1) if the commissioner determines the district or school no   longer meets the criteria for the designation.          (d-3)  Not later than September 1 of each year, the   commissioner shall post on the agency's Internet website a list of   the school districts and open-enrollment charter schools   designated as enhanced teacher incentive allotment public schools   under Subsection (d-1).          (e)  The agency shall use contracted services to develop and   provide technical assistance for school districts and   open-enrollment charter schools that request assistance in:                (1)  earning a designation under Subsection (d-1); or                (2)  implementing a local optional teacher designation   system, including:                      (A)  providing assistance in prioritizing high   needs campuses;                      (B)  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;                      (C)  establishing partnerships between districts   and schools that request assistance and districts and schools that   have implemented a teacher designation system;                      (D)  applying the performance and validity   standards established by the commissioner under Subsection (b);                      (E)  providing centralized support for the   analysis of the results of assessment instruments administered to   district or school students; and                      (F)  facilitating effective communication on and   promotion of local optional teacher designation systems.          SECTION 1.06.  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 money 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 and support ongoing implementation of local   optional teacher designation systems under Section 21.3521;                (2)  increase the number of classroom teachers eligible   for a designation under that section; and                (3)  increase the salaries paid to classroom teachers   employed by school districts or open-enrollment charter schools   that have established or are seeking to establish a designation   system under that section.          (b)  A grant awarded under this section must:                (1)  meet the needs of individual school districts or   open-enrollment charter schools; and                (2)  enable regional leadership capacity.          (c)  The commissioner may adopt rules as necessary to   implement this section.          SECTION 1.07.  Subchapter C, Chapter 25, Education Code, is   amended by adding Section 25.0816 to read as follows:          Sec. 25.0816.  ADDITIONAL DAYS SCHOOL YEAR PLANNING GRANT   PROGRAM. (a) From money appropriated or otherwise available for   the purpose, the agency shall establish and administer a grant   program to provide funding and technical assistance to school   districts and open-enrollment charter schools to plan the school   year and adjust operations as necessary to qualify for the   incentive funding under Section 48.0051.          (b)  In awarding grants under the program, the agency shall   prioritize school districts and open-enrollment charter schools   that seek to maximize incentive funding under Section 48.0051.          (c)  The agency may solicit and accept gifts, grants, and   donations for purposes of this section.          SECTION 1.08.  Section 28.0211(a-1), Education Code, is   amended to read as follows:          (a-1)  Each time a student fails to perform satisfactorily on   an assessment instrument administered under Section 39.023(a) or   (l) in the third, fourth, fifth, sixth, seventh, or eighth grade or   an end-of-course assessment instrument administered under Section   39.023(c), other than an assessment instrument developed or adopted   based on alternative academic achievement standards, the school   district in which the student attends school shall provide to the   student accelerated instruction in the applicable subject area   during the subsequent summer or school year and, subject to   Subsections (a-7) and (a-8), either:                (1)  allow the student to be assigned a classroom   teacher who has earned a designation [is certified as a master,   exemplary, or recognized teacher] under Section 21.3521 for the   subsequent school year in the applicable subject area; or                (2)  provide the student supplemental instruction   under Subsection (a-4).          SECTION 1.09.  Section 29.153, Education Code, is amended by   adding Subsections (b-1) and (h) to read as follows:          (b-1)  Notwithstanding Subsection (b), any child who is at   least three years of age is eligible for enrollment in a   prekindergarten class under this section if:                (1)  the class is provided through a partnership   between a school district or open-enrollment charter school and a   community-based child-care provider described by Subsection (g);   and                (2)  the child receives subsidized child-care services   provided through the child-care services program administered by   the Texas Workforce Commission.          (h)  Notwithstanding any other law, a facility or location at   which prekindergarten classes are provided by a school district or   open-enrollment charter school in partnership with a private entity   under this section:                (1)  must comply with any municipal ordinance   applicable to the operation of a private prekindergarten program;   and                (2)  may not be required to comply with any municipal   ordinance applicable to the operation of a prekindergarten program   by a school district or open-enrollment charter school.          SECTION 1.10.  Section 29.934, Education Code, is amended by   amending Subsections (b) and (d) and adding Subsection (d-1) to   read as follows:          (b)  To apply to be designated as a resource campus under   this section, the campus must have received an overall performance   rating under Section 39.054 of D or F, or an overall performance   rating under Section 39.054(a-4)(1) or 39.0546 of "Not Rated," for   three [four] years over a 10-year period of time.          (d)  To be designated as a resource campus, the campus must:                (1)  implement a targeted improvement plan as described   by Chapter 39A and establish a school community partnership team;                (2)  adopt an accelerated campus excellence turnaround   plan as provided by Section 39A.105(b) [except that a classroom   teacher who satisfies the requirements for demonstrated   instructional effectiveness under Section 39A.105(b)(3) must also   hold a current designation assigned under Section 21.3521];                (3)  be in a school district that has adopted an   approved local optional teacher designation system under Section   21.3521;                (4)  satisfy certain staff criteria by:                      (A)  requiring a principal or teacher employed at   the campus before the designation to apply for a position to   continue at the campus;                      (B)  for a subject in the foundation curriculum   under Section 28.002(a)(1):                            (i)  employing only teachers who have at   least two [three] years of teaching experience; and                            (ii)  ensuring that at least 50 percent of   teachers hold a current designation assigned under Section 21.3521;                      (C)  employing at least one school counselor for   every 300 students; and                      (D)  employing at least one appropriately   licensed professional to assist with the social and emotional needs   of students and staff, who must be a:                            (i)  family and community liaison;                            (ii)  clinical social worker;                            (iii)  specialist in school psychology; or                            (iv)  professional counselor;                (5)  implement a positive behavior program as provided   by Section 37.0013;                (6)  implement a family engagement plan as described by   Section 29.168;                (7)  develop and implement a plan to use high quality   instructional materials;                (8)  if the campus is an elementary or middle school    campus, operate the campus for a school year that qualifies for   funding under Section 48.0051; and                (9)  annually submit to the commissioner data and   information required by the commissioner to assess fidelity of   implementation.          (d-1)  The commissioner may grant to a campus requesting to   be designated as a resource campus under this section a one-year   waiver from the requirement under Subsection (d)(4)(B)(ii) if the   campus provides substantial evidence that the campus is working   toward meeting the requirement.           SECTION 1.11.  Effective September 1, 2028, Section 29.934,   Education Code, is amended by amending Subsection (b) and adding   Subsection (b-1) to read as follows:          (b)  To apply to be designated as a resource campus under   this section, the campus must have received an overall performance   rating under Section 39.054 of D or F, or an overall performance   rating under Section 39.054(a-4)(1) of "Not Rated," for three   [four] years over a 10-year period of time.          (b-1)  Notwithstanding Subsection (b), a campus may apply to   be designated as a resource campus under this section if the campus   received an overall performance rating under Section 39.054 of D or   F, or an overall performance rating under Section 39.054(a-4)(1) or   former Section 39.0546 of "Not Rated," for three years over a   10-year period of time.  This subsection expires September 1, 2033.          SECTION 1.12.  Subchapter Z, Chapter 29, Education Code, is   amended by adding Sections 29.940 and 29.941 to read as follows:          Sec. 29.940.  FEDERAL GRANT ADMINISTRATION. For a federal   grant program under which the agency oversees and administers   services to nonpublic schools, the agency shall follow federal   disposition rules and procedures to dispose of equipment or   supplies that are unused or no longer needed and were previously   allocated to nonpublic schools participating in the grant program.          Sec. 29.941.  GRANT PROGRAM TO PROMOTE PARENTAL ENGAGEMENT.   (a) From money appropriated or otherwise available for the   purpose, the commissioner shall establish a grant program to   provide grants to school districts and open-enrollment charter   schools to assist with costs associated with operating programs or   projects to encourage parental engagement in the educational   success of students in the district or school, including:                (1)  educational programming for parents on how to   teach the parent's child how to read, including how to read with the   parent's child outside of school in a manner that complements   instruction;                (2)  for a parent of a child identified as academically   behind, educational programming on identifying and addressing the   child's academic struggles;                (3)  for a parent of a child enrolled in a special   education program under Subchapter A, educational programming on   how to prepare the child for educational success; and                (4)  for a parent of a child who exhibits behavioral   issues or has been subject to disciplinary measures, programs or   policies to engage the parent in efforts to discipline and improve   the behavior of the child.          (b)  A school district or open-enrollment charter school may   use money awarded under Subsection (a) to:                (1)  pay staff working additional hours to operate a   program or project described by Subsection (a);                (2)  pay for food offered at training meetings for a   program or project described by Subsection (a); and                (3)  pay for educational materials provided to parents   related to a program or project described by Subsection (a).          (c)  The commissioner may adopt rules as necessary to   implement this section.          SECTION 1.13.  Section 46.071, Education Code, is amended by   adding Subsections (d-1) and (d-2) to read as follows:          (d-1)  If the amount required to pay debt service on bonds   issued under Subchapter A, Chapter 45, is less than the sum of state   assistance provided under this chapter, including the amount of   additional state aid provided under this section, and the revenue   from the district's interest and sinking tax for a school year, the   commissioner shall, except as provided by Subsection (d-2), reduce   the amount of additional state aid provided under this section by   the difference between:                (1)  the sum of state assistance provided under this   chapter, including the amount of additional state aid provided   under this section, and the revenue from the district's interest   and sinking tax for the school year; and                (2)  the amount required to pay debt service on bonds   described by this subsection for the school year.          (d-2)  The amount of additional state aid provided under this   section may not be reduced under Subsection (d-1) to an amount below   zero.          SECTION 1.14.  Section 48.005, Education Code, is amended by   amending Subsections (a), (b), (e), and (f) and adding Subsection   (a-1) to read as follows:          (a)  In this chapter, average daily attendance is:                (1)  the quotient of the sum of attendance for each day   of the minimum number of days of instruction as described under   Section 25.081(a) divided by the minimum number of days of   instruction;                (2)  for a district that operates under a flexible year   program under Section 29.0821, the quotient of the sum of   attendance for each actual day of instruction as permitted by   Section 29.0821(b)(1) divided by the number of actual days of   instruction as permitted by Section 29.0821(b)(1);                (3)  for a district that operates under a flexible   school day program under Section 29.0822, the average daily   attendance as calculated by the commissioner in accordance with   Sections 29.0822(d) and (d-1); or                (4)  except as provided by Subsection (a-1), for a   district that operates a half-day program or a full-day program   under Section 29.153(c), one-half of the average daily attendance   calculated under Subdivision (1).          (a-1)  Average daily attendance is calculated under   Subsection (a)(1) for students:                (1)  enrolled in a half-day program or full-day program   under Section 29.153(c) provided by an eligible private provider   under Section 29.171; and                (2)  assigned to a campus:                      (A)  that is operated under a contract entered   into by the district with an entity under Section 11.174 or an   eligible private provider under Section 29.171; or                      (B)  of an open-enrollment charter school that is   operated by an entity governed by a management contract approved by   the agency.          (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, or a greater amount provided by appropriation [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 1.15.  Section 48.0051, Education Code, is amended   by amending Subsections (a), (b), and (d) and adding Subsection   (b-1) 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   eighth [fifth] grade.          (b)  Subject to Subsection (b-1), for [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].          (b-1)  For a school district or open-enrollment charter   school described by Subsection (a) that provides at least 200 full   days of instruction to students described by Subsection (a)(2), the   commissioner shall increase the amount computed for the district or   school under Subsection (b) by 50 percent.          (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 1.16.  Subchapter A, Chapter 48, Education Code, is   amended by adding Section 48.014 to read as follows:          Sec. 48.014.  NOTICE FOR SCHOOL DISTRICTS REGARDING RECOURSE   FOR INVALID PROPERTY VALUES. (a)  This section applies only to a   school district located in an appraisal district in which the   comptroller has certified the preliminary findings of the school   district property value study under Section 403.302(g), Government   Code, and determined that a school district located in the   appraisal district has an invalid local value, regardless of   whether the district meets the definition of an eligible school   district under Section 403.3011, Government Code.          (b)  For each school district to which this section applies   and as soon as practicable after the comptroller has certified the   preliminary findings of the school district property value study   under Section 403.302(g), Government Code, the commissioner shall   provide notice to the board of trustees of the district that   includes information regarding the impact or possible impact of a   final certification of an invalid local value on the district's   finances, including:                (1)  an estimate of the effect on the district's   finances; and                (2)  any right of recourse available to the district.          (c)  Each school district shall annually report to the agency   contact information for the members of the district's board of   trustees for purposes of receiving the notice under this section.          (d)  The commissioner shall coordinate with the comptroller   to provide copies of the notice under this section to the board of   directors of each applicable appraisal district.          SECTION 1.17.  Section 48.051, Education Code, is amended by   amending Subsections (a), (c), and (c-1) and adding Subsection   (c-3) to read as follows:           (a)  For each student in average daily attendance, not   including the time students spend each day in career and technology   education programs or in special education programs in a setting   [an instructional arrangement] other than a general education   setting [mainstream or career and technology education programs],   for which an additional allotment is made under Subchapter C, a   school district is entitled to an allotment equal to the lesser of   the amounts that result from the following formulas:                (1)  A = $6,500 + GYIA; [$6,160] or [the amount that   results from the following formula:]                (2)  A = ($6,500 + GYIA) [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "GYIA" is the guaranteed yield increment adjustment   determined under Section 48.2561;          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.          (c)  During any school year for which the maximum amount of   the basic allotment provided under Subsection (a) or (b) is greater   than the maximum amount provided for the preceding school year, a   school district must use at least 40 [30] percent of the amount, if   the amount is greater than zero, that equals the product of the   average daily attendance of the district multiplied by the amount   of the difference between the district's funding under this chapter   per student in average daily attendance for the current school year   and the preceding school year to provide compensation increases to   full-time district employees other than administrators as follows:                (1)  75 percent must be used to increase the salary   [compensation] paid to classroom teachers, [full-time librarians,   full-time school counselors certified under Subchapter B, Chapter   21, and full-time school nurses,] prioritizing higher salary   increases [differentiated compensation] for classroom teachers in   the following order:                      (A)  classroom teachers with 10 or more years of   experience; and                      (B)  classroom teachers with [more than] five or   more years of experience; and                (2)  25 percent may be used as determined by the   district to increase compensation paid to full-time district   employees.          (c-1)  A school district employee who received a salary   increase under Subsection (c) [from a school district for the   2019-2020 school year] is, as long as the employee remains employed   by the same district and the district is receiving at least the same   amount of funding as the amount of funding the district received for   the [2019-2020] school year in which the requirement under   Subsection (c) applied, entitled to salary that is at least equal to   the salary the employee received for the preceding [2019-2020]   school year.  This subsection does not apply if:                (1)  the board of trustees of the school district at   which the employee is employed:                      (A) [(1)]  complies with Sections 21.4021,   21.4022, and 21.4032 in reducing the employee's salary; and                      (B) [(2)]  has adopted a resolution declaring a   financial exigency for the district under Section 44.011; or                (2)  the school district evaluates the employee's   performance and the employee's performance rating is lower than the   employee's performance rating during the school year in which the   requirement under Subsection (c) applied.          (c-3)  A school district must ensure that the salary   increases provided under Subsection (c)(1) provide for:                (1)  a difference of at least 40 percent between the   average salary schedule increase provided to a classroom teacher   described by Subsection (c)(1)(A) and a classroom teacher described   by Subsection (c)(1)(B); or                (2)  an increase based on performance in accordance   with the district's compensation plan implemented under Section   21.3521(d-1)(3).          SECTION 1.18.  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 .00057 [.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 .00003 [.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 .0006 [.00047]) X BA          SECTION 1.19.  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 1.20.  Section 48.105(a), Education Code, is amended   to read as follows:          (a)  For each student in average daily attendance in a   bilingual education or special language program under Subchapter B,   Chapter 29, a district is entitled to an annual allotment equal to   the basic allotment multiplied by:                (1)  for an emergent bilingual student, as defined by   Section 29.052:                      (A)  0.12 [0.1]; or                      (B)  0.17 [0.15] if the student is in a bilingual   education program using a dual language immersion/one-way or   two-way program model; and                (2)  for a student not described by Subdivision (1),   0.07 [0.05] if the student is in a bilingual education program using   a dual language immersion/two-way program model.          SECTION 1.21.  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 1.22.  Section 48.112, Education Code, is amended by   amending Subsections (c), (d), and (i) and adding Subsection (g-1)   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)  nationally board certified teacher.          (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)  nationally board certified teacher.          (g-1)  For a district that is designated as an enhanced   teacher incentive allotment public school under Section   21.3521(d-1), the commissioner shall increase the amount to which   the district is entitled under this section by multiplying that   amount by 1.1.          (i)  A district shall annually certify that:                (1)  funds received under this section were used as   follows:                      (A)  at least 90 percent of each allotment   received under Subsection (c) was used for the compensation of   teachers employed at the campus at which the teacher for whom the   district received the allotment is employed; [and]                      (B)  for a district whose allotment was increased   under Subsection (g-1), the amount by which the allotment was   increased under that subsection was used to meet the criteria to   maintain a designation as an enhanced teacher incentive allotment   public school under Section 21.3521(d-1); and                      (C)  any other funds received under this section   were used for costs associated with implementing Section 21.3521,   including efforts to support teachers in obtaining designations;   and                (2)  the district prioritized high needs campuses in   the district in using funds received under this section.          SECTION 1.23.  Subchapter C, Chapter 48, Education Code, is   amended by adding Section 48.116 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 0.008; 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   education courses approved under Subsection (b).          (d)  The total amount of allotments provided under this   section for a school year may not exceed $15 million.          (e)  The agency may proportionally reduce each school   district's allotment under this section if the amount appropriated   for purposes of this section is insufficient to pay for all   allotments to which districts are entitled under this section.          SECTION 1.24.  Section 48.202(a-1), Education Code, is   amended to read as follows:          (a-1)  For purposes of Subsection (a), the dollar amount   guaranteed level of state and local funds per weighted student per   cent of tax effort ("GL") for a school district is:                (1)  the greater of $129.52 or an amount set by   appropriation [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 6,160, or the greater amount provided   under Section 48.051(b), if applicable, by 0.016,] for the first   eight cents by which the district's maintenance and operations tax   rate exceeds the district's tier one tax rate; and                (2)  subject to Subsection (f), the amount that results   from multiplying the maximum amount of the basic allotment provided   under Section 48.051 for the applicable school year [$6,160, or the   greater amount provided under Section 48.051(b), if applicable,] by   0.008, for the district's maintenance and operations tax effort   that exceeds the amount of tax effort described by Subdivision (1).          SECTION 1.25.  Section 48.2543, Education Code, is amended   to read as follows:          Sec. 48.2543.  ADDITIONAL STATE AID FOR CERTAIN DISTRICTS   [HOMESTEAD EXEMPTION].  [(a)  For the 2022-2023 school year, a   school district is entitled to additional state aid to the extent   that state and local revenue under this chapter and Chapter 49 is   less than the state and local revenue that would have been available   to the district under this chapter and Chapter 49 as those chapters   existed on September 1, 2021, if any increase in the residence   homestead exemption under Section 1-b(c), Article VIII, Texas   Constitution, as proposed by the 87th Legislature, 3rd Called   Session, 2021, had not occurred.]          (a-1)  Beginning with the 2025-2026 [2023-2024] school year,   a school district is entitled to additional state aid to the extent   that state and local revenue under this chapter, other than former   Subsection (a) of this section, and Chapter 49 is less than the   state and local revenue that would have been available to the   district under this chapter and Chapter 49 as those chapters   existed on September 1, 2022, if any of the following had not   occurred:                (1)  an [any] increase in a residence homestead   exemption under Section 1-b(c), Article VIII, Texas Constitution,   and any additional limitation on tax increases under Section 1-b(d)   of that article as proposed by the 88th Legislature, 2nd Called   Session, 2023;                (2)  a reduction of the amount of the limitation on tax   increases provided by Section 11.26(a-10), Tax Code; or                (3)  a reduction in the district's maximum compressed   tax rate under Section 48.2555, as added by Chapter 1 (S.B. 2), Acts   of the 88th Legislature, 2nd Called Session, 2023 [, had not   occurred].          (b)  For purposes of calculating state and local revenue   under Subsection (a-1) for the applicable school year, the agency   shall use the same values for formula funding adjustments that the   agency used during that school year and exclude amounts provided by   law that expired in a school year subsequent to the applicable   school year, including the amounts provided under Sections 48.277,   48.278, 48.279, and 48.281, as those sections existed for the   applicable school year.  [The lesser of the school district's   currently adopted maintenance and operations tax rate or the   adopted maintenance and operations tax rate for:                [(1)  the 2021 tax year is used for the purpose of   determining additional state aid under Subsection (a); and                [(2)  the 2022 tax year is used for the purpose of   determining additional state aid under Subsection (a-1).]          SECTION 1.26.  Subchapter F, Chapter 48, Education Code, is   amended by adding Section 48.2561 to read as follows:          Sec. 48.2561.  GUARANTEED YIELD INCREMENT ADJUSTMENT. (a)   Not later than October 1 of each even-numbered year, for the   subsequent state fiscal biennium, the agency shall determine the   amount of the guaranteed yield increment adjustment for each state   fiscal year of the biennium. The amount of the guaranteed yield   increment adjustment is the difference between:                (1)  the estimated cost to the state of maintaining the   guaranteed level of state and local funds per weighted student per   cent of tax effort under Section 48.202(a-1)(1) at the 96th   percentile of wealth per weighted student for each year of the   biennium; and                (2)  the state cost of maintaining the guaranteed level   of state and local funds per weighted student per cent of tax effort   at the amount provided by Section 48.202(a-1)(1).          (b)  Notwithstanding Subsection (a), the amount of the   guaranteed yield increment adjustment for each state fiscal year of   the state fiscal biennium beginning September 1, 2025, is $55.  This   subsection expires September 1, 2027.          SECTION 1.27.  Section 48.266, Education Code, is amended by   amending Subsection (b) and adding Subsection (b-1) to read as   follows:          (b)  Except as provided by this subsection and subject to   Subsection (b-1), the commissioner shall base the determinations   under Subsection (a) on the estimates provided to the legislature   under Section 48.269, or, if the General Appropriations Act   provides estimates for that purpose, on the estimates provided   under that Act, for each school district for each school year.  The   commissioner shall reduce the entitlement of each district that has   a final taxable value of property for the second year of a state   fiscal biennium that is higher than the estimate under Section   48.269 or the General Appropriations Act, as applicable.  A   reduction under this subsection may not reduce the district's   entitlement below the amount to which it is entitled at its actual   taxable value of property.          (b-1)  Periodically throughout the school year, the   commissioner shall adjust the determinations made under Subsection   (a) to reflect current school year estimates of a district's   enrollment and average daily attendance, based on attendance   reporting for each six-week interval.          SECTION 1.28.  Section 48.283, Education Code, is amended to   read as follows:          Sec. 48.283.  ADDITIONAL STATE AID FOR CERTAIN DISTRICTS   IMPACTED BY COMPRESSION.  (a)  For the 2023-2024 and 2024-2025   school years, a [A] school district that received an adjustment   under Section 48.257(b) for the 2022-2023 school year is entitled   to additional state aid [for each school year] in an amount equal to   [the amount of that adjustment for the 2022-2023 school year less]   the difference, if the difference is greater than zero, between:                (1)  [the amount to which the district is entitled   under this chapter for the current school year; and                [(2)]  the amount of state and local revenue that would   have been available to [which] the district [would be entitled]   under this chapter and Chapter 49 for the 2023-2024 or 2024-2025    [current] school year, as applicable, if the district's maximum   compressed tax rate had not been reduced under Section 48.2555, as   added by S.B. 2, Acts of the 88th Legislature, 2nd Called Session,   2023; and                (2)  the amount of state and local revenue available to   the district under this chapter and Chapter 49 for the 2023-2024 or   2024-2025 school year, as applicable.          (b)  This section expires January 1, 2026.          SECTION 1.29.  Subchapter F, Chapter 48, Education Code, is   amended by adding Sections 48.2711, 48.2831, and 48.284 to read as   follows:          Sec. 48.2711.  ADJUSTMENT FOR LOSS OF REVENUE DUE TO USE OF   STATE VALUE. (a) This section applies only to a school district:                (1)  for which the state value for the district's   taxable value of property is used under Section 403.302(c),   Government Code; and                (2)  in which the district's board of trustees adopts a   resolution during the school year recognizing the need for an   adjustment under this section.          (b)  For each school district to which this section applies,   the agency shall determine whether the district's entitlement under   this chapter for a school year is greater if the district's taxable   value of property is:                (1)  the local value; or                (2)  the state value as determined by the comptroller   under Sections 403.302(a) and (b), Government Code.          (c)  If the agency determines under Subsection (b) that the   school district's entitlement is greater for the applicable school   year using the local value for the district's taxable value of   property, the commissioner shall increase state aid or adjust the   limit on local revenue under Section 48.257 for the district for   that school year in an amount equal to:                (1)  for the first school year in which this subsection   applies to the district, the difference between the amounts   determined under Subsection (b);                (2)  for the second consecutive school year in which   this subsection applies to the district, 70 percent of the   difference between the amounts determined under Subsection (b); and                (3)  for the third consecutive school year in which   this subsection applies to the district, 40 percent of the   difference between the amounts determined under Subsection (b).          (d)  A school district may not receive an adjustment under   this section for more than three consecutive school years unless   the legislature specifically appropriates money for the purpose of   making adjustments under this section for the fourth or a   subsequent consecutive school year.          (e)  For purposes of determining the number of consecutive   school years for which this section applies to a school district,   the commissioner may not consider a school year before the   2025-2026 school year.          (f)  A school year in which the comptroller determines a   school district's local value to be valid under Section 403.302(c),   Government Code, that occurs after the district receives an   adjustment under this section is not included in calculating   consecutive school years under Subsection (c) or (d) and is not   considered a break in consecutive school years, except as provided   by Subsection (h).          (g)  A school district may not receive an adjustment under   this section for a school year in which the district is determined   to be an eligible school district, as defined by Section 403.3011,   Government Code. A school year in which the district is not   eligible for an adjustment under this subsection is included in   calculating consecutive school years under Subsections (c) and (d).          (h)  Except as provided by Subsection (d), a school district   that receives an adjustment under this section for three   consecutive school years is not eligible to receive an adjustment   under this section in the subsequent school year but may be again   eligible for the adjustment following two consecutive school years   for which the local value is used for the district's taxable value   of property under Section 403.302(c), Government Code.          (i)  The total amount of adjustments made under this section   for a school year may not exceed $60 million.          (j)  If the total amount of adjustments for which school   districts are eligible under this section for a school year exceeds   the limit under Subsection (i), the commissioner shall prioritize   school districts experiencing the greatest percentage reduction in   funding, as determined based on the difference between the amounts   determined under Subsection (b).          (k)  A determination made by the commissioner under this   section is final and may not be appealed.          Sec. 48.2831.  ADDITIONAL STATE AID TO ENSURE MINIMUM   FUNDING LEVEL. (a) For the 2025-2026 school year, a school district   is entitled to additional state aid in an amount necessary to ensure   the district receives state and local revenue under Chapter 46,   this chapter, and Chapter 49 in an amount at least equal to the sum   of:                (1)  state and local revenue that would have been   available to the district for the 2025-2026 school year under   Chapter 46, this chapter, and Chapter 49, as those chapters existed   on September 1, 2024; and                (2)  $200 multiplied by the number of students in   weighted average daily attendance in the district for the 2025-2026   school year, determined under this chapter as this chapter existed   on September 1, 2024.          (b)  Beginning with the 2026-2027 school year and subject to   Subsections (c) and (d), a school district is entitled to   additional state aid in an amount necessary to ensure the district   receives state and local revenue under Chapter 46, this chapter,   and Chapter 49 in an amount at least equal to the greater of:                (1)  the amount calculated under Subsection (a); or                (2)  the sum of:                      (A)  state and local revenue that would have been   available to the district for the applicable school year under   Chapter 46, this chapter, and Chapter 49, as those chapters existed   on September 1, 2024; and                      (B)  $200 multiplied by the number of students in   weighted average daily attendance in the district for the   applicable school year, determined under this chapter as this   chapter existed on September 1, 2024.          (c)  Beginning with the 2027-2028 school year, the amount of   additional state aid to which a school district is entitled under   this section shall be determined by multiplying the amount   calculated under Subsection (b) by:                (1)  for the 2027-2028 school year, 0.8;                (2)  for the 2028-2029 school year, 0.6;                (3)  for the 2029-2030 school year, 0.4; and                (4)  for the 2030-2031 school year, 0.2.          (d)  Beginning with the 2027-2028 school year, a school   district may not receive additional state aid under Subsection (b)   in an amount that exceeds the amount the district received under   that subsection for the 2026-2027 school year.          (e)  For the purposes of Subsections (a) and (b), local   revenue under Chapter 46 includes only the eligible local funds for   the instructional facilities allotment under Section 46.003 and the   existing debt allotment under Section 46.032.          (f)  The amount of additional state aid to which a district   is entitled under this section shall be calculated only after all   other funding to which the district is entitled under Chapter 46,   this chapter, and Chapter 49 has been calculated.          (g)  The agency shall notify the Legislative Budget Board as   soon as practicable after the agency determines that no school   districts qualify for additional state aid under this section.          (h)  This section expires September 1, 2031.          Sec. 48.284.  ADDITIONAL STATE AID FOR REGIONAL INSURANCE   COST DIFFERENTIALS. (a) In this section, "catastrophe area" and   "first tier coastal county" have the meanings assigned by Section   2210.003, Insurance Code.          (b)  This section applies to a school district or   open-enrollment charter school that has the following property   located in a first tier coastal county or an area designated in 2024   as a catastrophe area:                (1)  the central administrative office of the district   or school; and                (2)  a majority of campuses of the district or school.          (c)  A school district or open-enrollment charter school to   which this section applies is entitled to additional state aid for   each student in adjusted average daily attendance in an amount   equal to the difference between, for the 2023-2024 school year, or a   different school year specified by appropriation:                (1)  the total amount paid for property and casualty   insurance by districts and schools in the county or catastrophe   area described by Subsection (b) in which the district's or school's   property is located divided by the total number of students in   average daily attendance for all districts and schools in the   county or catastrophe area; and                (2)  the total amount paid for property and casualty   insurance by districts and schools in the state divided by the total   number of students in average daily attendance in the state.          (d)  For purposes of Subsection (c), the average daily   attendance of a school district that qualifies for an allotment   under Section 48.101 is the district's average daily attendance   multiplied by the sum of one and the decimal fraction used to   determine the district's allotment under that section.          SECTION 1.30.  Sections 12.1058(e), 12.106(a-4), and   48.2542, Education Code, are repealed.          SECTION 1.31.  Immediately following the effective date of   this Act, 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 Act, 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, as amended by this   article, 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 Act, shall be increased to reflect the   teacher's redesignation under Section 21.3521, Education Code, as   amended by this article.          SECTION 1.32.  Not later than September 1, 2026, the   commissioner of education shall post on the Texas Education   Agency's Internet website the initial list of enhanced teacher   incentive allotment public schools required by Section   21.3521(d-3), Education Code, as added by this article.          SECTION 1.33.  As soon as practicable after the effective   date of this Act, the commissioner of education shall establish the   grant program required under Section 29.941, Education Code, as   added by this article.   ARTICLE 2.  TEACHER PREPARATION AND CHANGES RELATED TO EMPLOYEES          SECTION 2.01.  Section 12A.004(a), Education Code, is   amended to read as follows:          (a)  A local innovation plan may not provide for the   exemption of a district designated as a district of innovation from   the following provisions of this title:                (1)  a state or federal requirement applicable to an   open-enrollment charter school operating under Subchapter D,   Chapter 12;                (2)  Subchapters A, C, D, and E, Chapter 11, except that   a district may be exempt from Sections 11.1511(b)(5) and (14) and   Section 11.162;                (3)  the employment of uncertified classroom teachers   under Section 21.0032;                (4)  parental notification requirements under Section   21.057;                (5)  state curriculum and graduation requirements   adopted under Chapter 28; and                (6) [(4)]  academic and financial accountability and   sanctions under Chapters 39 and 39A.          SECTION 2.02.  Section 21.001, Education Code, is amended by   adding Subdivision (3-b) to read as follows:                (3-b)  "Teacher of record" means a person employed by a   school district who teaches the majority of the instructional day   in an academic instructional setting and is responsible for   evaluating student achievement and assigning grades.          SECTION 2.03.  Subchapter A, Chapter 21, Education Code, is   amended by adding Sections 21.0032 and 21.0033 to read as follows:          Sec. 21.0032.  EMPLOYMENT OF UNCERTIFIED CLASSROOM   TEACHERS. (a)  A school district may not employ as a classroom   teacher for a course in the foundation curriculum under Section   28.002 a person who does not hold an appropriate certificate or   permit issued by the State Board for Educator Certification under   Subchapter B.          (a-1)  Notwithstanding Subsection (a), a school district may   employ as a classroom teacher for a course in the foundation   curriculum under Section 28.002 not more than the following   applicable percentage of classroom teachers who do not hold an   appropriate certificate or permit issued by the State Board for   Educator Certification under Subchapter B:                (1)  for the 2026-2027 school year, 20 percent;                (2)  for the 2027-2028 school year, 15 percent;                (3)  for the 2028-2029 school year, 10 percent; and                (4)  for the 2029-2030 school year, 5 percent.          (a-2)  This subsection and Subsection (a-1) expire September   1, 2031.          (b)  This section does not preclude a school district from:                (1)  receiving a waiver under Section 7.056; or                (2)  issuing a school district teaching permit under   Section 21.055.          Sec. 21.0033.  TEACHER CERTIFICATION INCENTIVE.  (a)  From   money appropriated or otherwise available for the purpose, the   agency shall provide to each school district a one-time payment of   $1,000 for each classroom teacher employed by the district who:                (1)  was hired for the 2022-2023 or 2023-2024 school   year as a first-year teacher;                (2)  was uncertified on January 1, 2025;                (3)  earned a standard certificate under Subchapter B   by the end of the 2025-2026 school year; and                (4)  was continuously employed by the district since   the school year described by Subdivision (1).          (b)  This section expires September 1, 2027.          SECTION 2.04.  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 in special education, bilingual education, or   another area specified by the General Appropriations Act, 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 described by Subsection (a) a fee   assessed by that vendor for the examination of a person applying for   a certification described by Subsection (a) for the first   administration of the examination to the person.          SECTION 2.05.  Subchapter I, Chapter 21, Education Code, is   amended by adding Section 21.416 to read as follows:          Sec. 21.416.  EMPLOYED RETIREE EDUCATOR REIMBURSEMENT GRANT   PROGRAM. (a)  From money appropriated or otherwise available, the   commissioner shall establish and administer a grant program 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 for the increased   contributions to the Teacher Retirement System of Texas associated   with hiring a teacher, or an educator providing special education   services, who retired before September 1, 2024.          (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, 2024, before which a teacher   or educator 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 to be eligible; or                (2)  limiting eligibility to a district or school   described by Subdivision (1) that hires a retired teacher or   educator, as applicable:                      (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 money 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 money   received under this section to make required payments under Section   825.4092, Government Code.          SECTION 2.06.  Chapter 21, Education Code, is amended by   adding Subchapter R to read as follows:   SUBCHAPTER R. GROW YOUR OWN PARTNERSHIP PROGRAM          Sec. 21.901.  DEFINITIONS. In this subchapter:                (1)  "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 the program under   this subchapter and paired with a student or employee participating   in the program at the district or school; and                      (C)  provides coaching to a student or employee   participating in the program in the teacher's classroom.                (2)  "Program" means the Grow Your Own Partnership   Program established under Section 21.902.          Sec. 21.902.  GROW YOUR OWN PARTNERSHIP PROGRAM. (a) The   commissioner shall establish the Grow Your Own Partnership Program   to enable qualified institutions of higher education and educator   preparation programs, as determined by the commissioner, to form   partnerships with school districts or open-enrollment charter   schools to establish innovative staffing pipelines to ensure the   availability of high-quality classroom teachers to benefit future   district or school students.          (b)  The program must be designed to form partnerships that   support:                (1)  high school students in completing career and   technical education courses that help prepare the students to   become classroom teachers; or                (2)  district or school employees who do not hold a   teaching certificate in completing an associate degree or the first   60 hours of a bachelor's degree to enable the person to become a   classroom teacher while employed by the district or school.          (c)  A school district or open-enrollment charter school may   participate in the program on the approval of an application   submitted to the commissioner by the district or school.          (d)  A school district or open-enrollment charter school   participating in the program shall:                (1)  for a partnership described by Subsection (b)(1),   provide:                      (A)  authentic opportunities, which may be paid or   unpaid, for students to practice teaching under the supervision of   a cooperating teacher; and                      (B)  guidance and other transition supports as a   student begins an undergraduate degree program that offers a route   to teacher preparation;                (2)  for a partnership described by Subsection (b)(2),   provide for a district or school employee:                      (A)  scheduled release time to support the   completion of an associate degree or the first 60 hours of a   bachelor's degree;                      (B)  authentic opportunities to practice teaching   under the supervision of a cooperating teacher;                      (C)  on-the-job training aligned with the   standards for educator certification established by the board;                      (D)  a job assignment that includes instructional   support for students enrolled in the district or school; and                      (E)  guidance and other transition supports as the   employee begins a program to satisfy the teacher preparation   requirements under Subchapter B;                (3)  enter into a written agreement with an institution   of higher education;                (4)  require an employee participating in a partnership   described by Subsection (b)(2) to, as a condition for   participation, earn a bachelor's degree and enroll in an educator   preparation program within three years of completion of an   associate degree or the first 60 hours of a bachelor's degree; and                (5)  provide any information required by the agency   regarding the district's or school's implementation of the program.          (e)  A school district or open-enrollment charter school may   use money received under Section 48.157 to implement the program   and pay tuition and fees, including certification fees, for   students or employees participating in the program.          (f)  A school district or open-enrollment charter school may   only pair a student or employee participating in the program with a   cooperating teacher who agrees to participate in that role in the   program at the district or school.          (g)  A student or employee participating in the program may   not serve:                (1)  as a teacher of record; or                (2)  except as provided by Subsection (h), in a   position in which the student or employee has the primary or sole   responsibility of providing instruction or supervision to   students.          (h)  A student or employee participating in the program may   serve in a position described by Subsection (g)(2) for the limited   purpose of gaining experience in the position.  The student's or   employee's amount of time serving in that position may not exceed   the amount of time during which the teacher of record for the   students has the primary or sole responsibility of providing   instruction or supervision to those students.          Sec. 21.903.  RULES. The commissioner shall adopt rules as   necessary to implement this subchapter.          SECTION 2.07.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.157 to read as follows:          Sec. 48.157.  GROW YOUR OWN PARTNERSHIP PROGRAM ALLOTMENT.   (a) Subject to Subsection (d), for each district employee   participating in a partnership described by Section 21.902(b)(2), a   school district is entitled to an annual allotment equal to the sum   of:                (1)  $8,000; and                (2)  the high needs and rural factor, as determined   under Subsection (b), multiplied by $1,000.          (b)  The high needs and rural factor is 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.          (c)  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 (b) 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.          (d)  Unless a greater number of individuals is provided for   by appropriation for that school year, a school district may   receive an allotment under this section for a school year for not   more than 40 district employees.          (e)  The agency shall provide 50 percent of the money the   school district is entitled to receive under this section for a   district employee only on the employee's successful completion of a   bachelor's degree by the deadline established by the agency.          SECTION 2.08.  Section 12A.004(a), Education Code, as   amended by this article, applies to each local innovation plan   adopted under Chapter 12A, Education Code, regardless of whether   the plan was adopted before, on, or after the effective date of this   article. A local innovation plan adopted or renewed before the   effective date of this article must comply with Section 12A.004(a),   Education Code, as amended by this article, not later than   September 1, 2025.   ARTICLE 3.  SPECIAL EDUCATION          SECTION 3.01.  Section 7.021(b)(10), Education Code, is   amended to read as follows:                (10)  The agency shall carry out duties assigned under   Section 30.002 concerning children who have visual impairments, are   deaf or hard of hearing, or are deaf-blind [with visual   impairments].          SECTION 3.02.  Section 7.055(b)(25), Education Code, is   amended to read as follows:                (25)  The commissioner shall develop a system to   distribute to school districts or regional education service   centers a special supplemental allowance for students with visual   impairments as required under Section 30.0021 [30.002].          SECTION 3.03.  Section 8.051(d), Education Code, is amended   to read as follows:          (d)  Each regional education service center shall maintain   core services for purchase by school districts and campuses.  The   core services are:                (1)  training and assistance in:                      (A)  teaching each subject area assessed under   Section 39.023; and                      (B)  providing instruction in personal financial   literacy as required under Section 28.0021;                (2)  training and assistance in providing each program   that qualifies for a funding allotment under Section 48.102,   48.1021, 48.103, 48.104, 48.105, or 48.109;                (3)  assistance specifically designed for a school   district or campus assigned an unacceptable performance rating   under Section 39.054;                (4)  training and assistance to teachers,   administrators, members of district boards of trustees, and members   of site-based decision-making committees;                (5)  assistance specifically designed for a school   district that is considered out of compliance with state or federal   special education requirements, based on the agency's most recent   compliance review of the district's special education programs; and                (6)  assistance in complying with state laws and rules.          SECTION 3.04.  Sections 28.025(c-7) and (c-8), Education   Code, are amended to read as follows:          (c-7)  Subject to Subsection (c-8), a student who is enrolled   in a special education program under Subchapter A, Chapter 29, may   earn the distinguished level of achievement under Subsection (b-15)   or an endorsement on the student's transcript under Subsection   (c-1) by:                (1)  successfully completing, with or without   modification of the curriculum:                      (A)  the curriculum requirements identified by   the State Board of Education under Subsection (a); [and]                      (B)  for the distinguished level of achievement,   the additional curriculum requirements prescribed under Subsection   (b-15); and                      (C)  for an endorsement, the additional   [endorsement] curriculum requirements prescribed by the State   Board of Education under Subsection (c-2); and                (2)  successfully completing all curriculum   requirements for the distinguished level of achievement or that   endorsement adopted by the State Board of Education:                      (A)  without modification of the curriculum; or                      (B)  with modification of the curriculum,   provided that the curriculum, as modified, is sufficiently rigorous   as determined by the student's admission, review, and dismissal   committee and documented in the student's individualized education   program.          (c-8)  For purposes of Subsection (c-7), the admission,   review, and dismissal committee of a student in a special education   program under Subchapter A, Chapter 29, shall determine whether the   student is required to achieve satisfactory performance on an   end-of-course assessment instrument to earn the distinguished   level of achievement or an endorsement on the student's transcript.          SECTION 3.05.  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 (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 must [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 must focus on maximizing   student outcomes and include [agency shall also develop and   implement a statewide plan with programmatic content that includes   procedures designed to]:                (1)  rulemaking, technical assistance, guidance   documents, monitoring protocols, data elements necessary for   statewide reporting, 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 procedures for service centers to assist school   districts in identifying existing public or private educational or   related services in each region, cooperatively developing programs   for students with disabilities, providing to or obtaining for   school districts special equipment, delivering services, and   facilitating [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   multidisciplinary evaluation teams and 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)  appropriately trained personnel are   available to students with disabilities who have significant   behavioral support needs, including by providing behavioral   support training for a paraprofessional or teacher placed in a   classroom or other setting that is intended to provide specialized   behavioral supports to a student with a disability, as needed or at   regular intervals as provided in the student's individualized   education program;                      (D)  [(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];                      (E)  [(9)  ensure that] each student with a   disability is provided necessary related services;                      (F)  school districts have an opportunity to   request technical assistance from the agency or a regional   education service center in establishing classroom environments   conducive to learning for students with disabilities, including   environments for students whose data indicate behavior that   significantly impedes the student's own learning and the learning   of other students;                      (G)  [(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                      (H)  [(11)  ensure that] each district develops a   process to be used by a teacher who instructs a student with a   disability in a general education [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 3.06.  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 3.07.  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 general education    [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, is   deaf or hard of hearing, or is deaf-blind 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 nine 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 3.08.  Sections 29.005(a), (d), and (e), Education   Code, are amended to read as follows:          (a)  Before a child is enrolled in a special education   program of a school district, the district shall establish a   committee composed of the persons required under 20 U.S.C. Section   1414(d) to develop the child's individualized education program.     If a committee is required to include a general [regular] education   teacher, the [regular education] teacher included must, to the   extent practicable, be a teacher who is responsible for   implementing a portion of the child's individualized education   program.          (d)  If the primary language of the child's parent is a   language other than [is unable to speak] English, the district   shall:                (1)  provide the parent with a written or audiotaped   copy of the child's individualized education program translated   into Spanish if Spanish is the parent's primary [native] language;   or                (2)  if the parent's primary [native] language is a   language other than Spanish, make a good faith effort to provide the   parent with a written or audiotaped copy of the child's   individualized education program translated into the parent's   primary [native] language.          (e)  The commissioner by rule may require a school district   to include in the individualized education program of a student   with autism [or another pervasive developmental disorder] any   information or requirement determined necessary to ensure the   student receives a free appropriate public education as required   under the Individuals with Disabilities Education Act (20 U.S.C.   Section 1400 et seq.).          SECTION 3.09.  Section 29.0051, Education Code, is amended   by adding Subsection (d) to read as follows:          (d)  From federal money available for the purpose, the   commissioner may develop or procure the model form developed under   Subsection (a) in a digital format.  If the commissioner develops or   procures the model form in a digital format, the commissioner shall   adopt rules regarding school district use of the form in that   format.          SECTION 3.10.  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 3.11.  Sections 29.006(a) and (c), Education Code,   are amended to read as follows:          (a)  The governor shall appoint a continuing advisory   committee consistent with [, composed of 17 members, under] 20   U.S.C. Section 1412(a)(21).  At least one member appointed under   this subsection must be a director of special education programs   for a school district.          (c)  Members of the committee are appointed for staggered   terms of four years with the terms of half of the [eight or nine]   members or, for an odd number of members, half of the members   rounded down or half of the members rounded up expiring on February   1 of each odd-numbered year.          SECTION 3.12.  Section 29.008, Education Code, is amended to   read as follows:          Sec. 29.008.  CONTRACTS FOR SERVICES; RESIDENTIAL AND DAY   PLACEMENT PROGRAMS.  (a)  The commissioner shall set minimum   standards for and develop and update as necessary a list of approved   public or private facilities, institutions, agencies, or   businesses 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 or day placement program.          (a-1)  [Each contract for residential placement must be   approved by the commissioner.]  The commissioner may approve a   facility, institution, agency, or business under Subsection (a)    [residential placement contract] 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.]          (a-2)  Each contract described by this section must be   approved by the commissioner.  A school district, shared services   arrangement unit, or regional education service center seeking to   place a student in a residential or day placement program that is   not on the list developed under Subsection (a) must submit to the   commissioner an application for approval in accordance with   Subsections (a) and (a-1).          (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.          (c)  When a student, including one for whom the state is   managing conservator, is placed primarily for care or treatment   reasons in a private [residential] facility that operates its own   private education program, none of the costs may be paid from public   education funds.  If a [residential] placement primarily for care   or treatment reasons involves a private [residential] facility in   which the education program is provided by the school district, the   portion of the costs that includes appropriate education services,   as determined by the school district's admission, review, and   dismissal committee, shall be paid from state and federal education   funds.          (d)  A district that contracts for the provision of education   services rather than providing the services itself shall oversee   the implementation of the student's individualized education   program and shall annually reevaluate the appropriateness of the   arrangement.  The reevaluation must include standards and   expectations that the student would need to meet to be reintegrated   to a regular school setting.  An approved facility, institution,   [or] agency, or business with whom the district contracts shall   periodically report to the district and the agency on the services   the student has received or will receive in accordance with the   contract as well as diagnostic or other evaluative information that   the district or agency requires in order to fulfill its obligations   under this subchapter.          (e)  The commissioner shall adopt rules for residential and   day placement of students receiving special education services.          SECTION 3.13.  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 3.14.  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].          (a-1)  As part of the monitoring system, the agency may   require a school district to obtain specialized technical   assistance for a documented noncompliance issue or if data   indicates that technical assistance is needed, such as an incident   involving injury to staff or students by a student receiving   special education services or data indicating an excessive number   of restraints are used on students receiving special education   services.          (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 system of progressive   sanctions and enforcement provisions 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 must [may] range in   severity and may include [up to] the withholding of funds.  If funds   are withheld, the agency may use the funds, or direct the funds to   be used, 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 3.15.  Section 29.012(d), Education Code, is amended   to read as follows:          (d)  The Texas Education Agency, the Health and Human   Services Commission, the Department of Family and Protective   Services, and the Texas Juvenile Justice Department by a   cooperative effort shall develop and [by rule] adopt a memorandum   of understanding.  The memorandum must:                (1)  establish the respective responsibilities of   school districts and of residential facilities for the provision of   a free, appropriate public education, as required by the   Individuals with Disabilities Education Act (20 U.S.C. Section 1400   et seq.) and its subsequent amendments, including each requirement   for children with disabilities who reside in those facilities;                (2)  coordinate regulatory and planning functions of   the parties to the memorandum;                (3)  establish criteria for determining when a public   school will provide educational services;                (4)  provide for appropriate educational space when   education services will be provided at the residential facility;                (5)  establish measures designed to ensure the safety   of students and teachers; and                (6)  provide for binding arbitration consistent with   Chapter 2009, Government Code, and Section 154.027, Civil Practice   and Remedies Code.          SECTION 3.16.  Section 29.013, Education Code, is amended to   read as follows:          Sec. 29.013.  NONEDUCATIONAL COMMUNITY-BASED SUPPORT   SERVICES GRANTS FOR CERTAIN STUDENTS WITH DISABILITIES.  (a)  The   commissioner [agency] shall adopt rules establishing [establish]   procedures and criteria for the allocation of grants [funds   appropriated] under this section, using money appropriated or   otherwise available for the purpose, to students who are eligible   under Subsection (b) and the students' families [school districts]   for the provision of noneducational community-based support   services [to certain students with disabilities and their families   so that those students may receive an appropriate free public   education in the least restrictive environment].          (b)  A grant [The funds] may be awarded under this section   [used] only to a student with a disability [for eligible students   with disabilities] who is [would remain or would have to be] placed   by the student's admission, review, and dismissal committee in:                (1)  a residential program approved under Section   29.008; or                (2)  a day placement program and is at risk of being   placed in a residential program approved under Section 29.008   [facilities primarily for educational reasons without the   provision of noneducational community-based support services].          (c)  The support services may not be related to the provision   of a free appropriate public education to the student and may   include in-home family support, behavioral and other   disability-related supports for the student's family, respite   care, and case management for the student's family [families with a   student who otherwise would have been placed by a district in a   private residential facility].          (d)  A school district shall:                (1)  notify the parent of a student described by   Subsection (b) of the availability of grants under this section;   and                (2)  designate a campus or district staff member to   assist families of students described by Subsection (b) in   accessing grants under this section.          (e)  On request by the parent of a student described by   Subsection (b), the commissioner shall create an account for the   student to access a grant under this section through which the   parent may request payment for approved support services.          (f)  In adopting rules under this section, the commissioner   shall adopt rules and guidelines detailing the process to access   grant money and the amount of each grant, including a process for a   parent to apply for an increase in the grant amount.          (g)  The provision of services under this section does not   supersede or limit the responsibility of a school district or other   agencies to provide or pay for costs [of noneducational   community-based support services] to enable any student with   disabilities to receive a free appropriate public education in the   least restrictive environment.  [Specifically, services provided   under this section may not be used for a student with disabilities   who is currently placed or who needs to be placed in a residential   facility primarily for noneducational reasons.]          (h)  The commissioner may designate a regional education   service center to administer grants under this section.          SECTION 3.17.  Sections 29.014(c) and (d), Education Code,   are amended to read as follows:          (c)  Notwithstanding any other provision of this code, a   student whose appropriate education program is a general [regular]   education program may receive services and be counted for   attendance purposes for the number of hours per week appropriate   for the student's condition if the student:                (1)  is temporarily classified as eligible for   participation in a special education program because of the   student's confinement in a hospital; and                (2)  the student's education is provided by a district   to which this section applies.          (d)  The basic allotment for a student enrolled in a district   to which this section applies is adjusted by the tier of intensity   of service defined in accordance with [weight for a homebound   student under] Section 48.102 and designated by commissioner rule   for use under this section [48.102(a)].          SECTION 3.18.  Section 29.0162(b), Education Code, is   amended to read as follows:          (b)  The commissioner by rule shall adopt additional   qualifications and requirements for a representative for purposes   of Subsection (a)(2).  The rules must:                (1)  prohibit an individual from being a representative   under Subsection (a)(2) opposing a school district if:                      (A)  the individual has prior employment   experience with the district; and                      (B)  the district raises an objection to the   individual serving as a representative;                (2)  include requirements that the representative have   knowledge of:                      (A)  all special education dispute resolution   options available to parents, including due process and due process   rules, hearings, and procedure; and                      (B)  federal and state special education laws;                (3)  require, if the representative receives monetary   compensation from a person for representation in an impartial due   process hearing, that the representative agree to abide by a   voluntary code of ethics and professional conduct during the period   of representation; and                (4)  require, if the representative receives monetary   compensation from a person for representation in an impartial due   process hearing, that the representative enter into a written   agreement for representation with the person who is the subject of   the special education due process hearing that includes a process   for resolving any disputes between the representative and the   person.          SECTION 3.19.  Section 29.018(b), Education Code, is amended   to read as follows:          (b)  A school district is eligible to apply for a grant under   this section if:                (1)  the district does not receive sufficient funds,   including state funds provided under Sections [Section] 48.102 and   48.1021 and federal funds, for a student with disabilities to pay   for the special education services provided to the student; or                (2)  the district does not receive sufficient funds,   including state funds provided under Sections [Section] 48.102 and   48.1021 and federal funds, for all students with disabilities in   the district to pay for the special education services provided to   the students.          SECTION 3.20.  The heading to Section 29.020, Education   Code, is amended to read as follows:          Sec. 29.020.  STATE-ADMINISTERED INDIVIDUALIZED EDUCATION   PROGRAM FACILITATION [PROJECT].          SECTION 3.21.  Sections 29.020(a) and (c), Education Code,   are amended to read as follows:          (a)  The agency shall develop rules in accordance with this   section applicable to state-administered [the administration of a   state] individualized education program facilitation [project].     The program shall include the provision of an independent   individualized education program facilitator as a dispute   resolution method that may be used to avoid a potential dispute   between a school district and a parent of a student with a   disability or to facilitate an admission, review, and dismissal   committee meeting with parties who are in a dispute about decisions   relating to the provision of a free appropriate public education to   a student with a disability.  Facilitation [implemented under the   project] must comply with rules developed under this subsection.          (c)  If the commissioner determines that adequate funding is   available, the commissioner may authorize the use of federal funds   to implement [the] individualized education program facilitation   [project] in accordance with this section.          SECTION 3.22.  Sections 29.022(a), (a-1), (b), (c), (c-1),   (d), (f), (h), (k), (l), (q), (s), and (t), Education Code, are   amended to read as follows:          (a)  In order to promote student safety, on receipt of a   written request authorized under Subsection (a-1), a school   district or open-enrollment charter school shall provide   equipment, including a video camera, to the school or schools in the   district or the charter school campus or campuses specified in the   request.  A school or campus that receives equipment as provided by   this subsection shall place, operate, and maintain one or more   video cameras in special education [self-contained] classrooms and   other special education settings [in which a majority of the   students in regular attendance are provided special education and   related services and are assigned to one or more self-contained   classrooms or other special education settings for at least 50   percent of the instructional day], provided that:                (1)  a school or campus that receives equipment as a   result of the request by a parent or staff member is required to   place equipment only in classrooms or settings in which the   parent's child is in regular attendance or to which the staff member   is assigned, as applicable; and                (2)  a school or campus that receives equipment as a   result of the request by a board of trustees, governing body,   principal, or assistant principal is required to place equipment   only in classrooms or settings identified by the requestor, if the   requestor limits the request to specific classrooms or settings   subject to this subsection.          (a-1)  For purposes of Subsection (a):                (1)  a parent of a child who receives special education   services in one or more special education [self-contained]   classrooms or other special education settings may request in   writing that equipment be provided to the school or campus at which   the child receives those services;                (2)  a board of trustees or governing body may request   in writing that equipment be provided to one or more specified   schools or campuses at which one or more children receive special   education services in special education [self-contained]   classrooms or other special education settings;                (3)  the principal or assistant principal of a school   or campus at which one or more children receive special education   services in special education [self-contained] classrooms or other   special education settings may request in writing that equipment be   provided to the principal's or assistant principal's school or   campus; and                (4)  a staff member assigned to work with one or more   children receiving special education services in special education   [self-contained] classrooms or other special education settings   may request in writing that equipment be provided to the school or   campus at which the staff member works.          (b)  A school or campus that places a video camera in a   special education classroom or other special education setting in   accordance with Subsection (a) shall operate and maintain the video   camera in the classroom or setting, as long as the classroom or   setting continues to satisfy the requirements under Subsection (a),   for the remainder of the school year in which the school or campus   received the request, unless the requestor withdraws the request in   writing.  If for any reason a school or campus will discontinue   operation of a video camera during a school year, not later than the   fifth school day before the date the operation of the video camera   will be discontinued, the school or campus must notify the parents   of each student in regular attendance in the classroom or setting   that operation of the video camera will not continue unless   requested by a person eligible to make a request under Subsection   (a-1).  Not later than the 10th school day before the end of each   school year, the school or campus must notify the parents of each   student in regular attendance in the classroom or setting that   operation of the video camera will not continue during the   following school year unless a person eligible to make a request for   the next school year under Subsection (a-1) submits a new request.          (c)  Except as provided by Subsection (c-1), video cameras   placed under this section must be capable of:                (1)  covering all areas of the special education   classroom or other special education setting, including a room   attached to the classroom or setting used for time-out; and                (2)  recording audio from all areas of the special   education classroom or other special education setting, including a   room attached to the classroom or setting used for time-out.          (c-1)  The inside of a bathroom or any area in the special   education classroom or other special education setting in which a   student's clothes are changed may not be visually monitored, except   for incidental coverage of a minor portion of a bathroom or changing   area because of the layout of the classroom or setting.          (d)  Before a school or campus activates a video camera in a   special education classroom or other special education setting   under this section, the school or campus shall provide written   notice of the placement to all school or campus staff and to the   parents of each student attending class or engaging in school   activities in the classroom or setting.          (f)  A school district or open-enrollment charter school may   solicit and accept gifts, grants, and donations from any person for   use in placing video cameras in special education classrooms or   other special education settings under this section.          (h)  A school district or open-enrollment charter school may   not:                (1)  allow regular or continual monitoring of video   recorded under this section; or                (2)  use video recorded under this section for teacher   evaluation or for any other purpose other than the promotion of   safety of students receiving special education services in a   special education [self-contained] classroom or other special   education setting.          (k)  The commissioner may adopt rules to implement and   administer this section, including rules regarding the special   education classrooms and other special education settings to which   this section applies.          (l)  A school district or open-enrollment charter school   policy relating to the placement, operation, or maintenance of   video cameras under this section must:                (1)  include information on how a person may appeal an   action by the district or school that the person believes to be in   violation of this section or a policy adopted in accordance with   this section, including the appeals process under Section 7.057;                (2)  require that the district or school provide a   response to a request made under this section not later than the   seventh school business day after receipt of the request by the   person to whom it must be submitted under Subsection (a-3) that   authorizes the request or states the reason for denying the   request;                (3)  except as provided by Subdivision (5), require   that a school or a campus begin operation of a video camera in   compliance with this section not later than the 45th school   business day, or the first school day after the 45th school business   day if that day is not a school day, after the request is authorized   unless the agency grants an extension of time;                (4)  permit the parent of a student whose admission,   review, and dismissal committee has determined that the student's   placement for the following school year will be in a special   education classroom or other special education setting in which a   video camera may be placed under this section to make a request for   the video camera by the later of:                      (A)  the date on which the current school year   ends; or                      (B)  the 10th school business day after the date   of the placement determination by the admission, review, and   dismissal committee; and                (5)  if a request is made by a parent in compliance with   Subdivision (4), unless the agency grants an extension of time,   require that a school or campus begin operation of a video camera in   compliance with this section not later than the later of:                      (A)  the 10th school day of the fall semester; or                      (B)  the 45th school business day, or the first   school day after the 45th school business day if that day is not a   school day, after the date the request is made.          (q)  The agency shall collect through the Public Education   Information Management System (PEIMS) data relating to requests   made under this section and actions taken by a school district or   open-enrollment charter school in response to a request, including   the number of requests made, authorized, and denied.          (s)  This section applies to the placement, operation, and   maintenance of a video camera in a special education   [self-contained] classroom or other special education setting   during the regular school year and extended school year services.          (t)  A video camera placed under this section is not required   to be in operation for the time during which students are not   present in the special education classroom or other special   education setting.          SECTION 3.23.  Sections 29.022(u)(3) and (4), Education   Code, are amended to read as follows:                (3)  "Special education classroom or other special   education setting" means a classroom or setting primarily used for   delivering special education services to students who spend on   average less than 50 percent of an instructional day in a general   education classroom or setting ["Self-contained classroom" does   not include a classroom that is a resource room instructional   arrangement under Section 48.102].                (4)  "Staff member" means a teacher, related service   provider, paraprofessional, counselor, or educational aide   assigned to work in a special education [self-contained] classroom   or other special education setting.          SECTION 3.24.  Subchapter A, Chapter 29, Education Code, is   amended by adding Sections 29.023, 29.024, 29.025, and 29.026 to   read as follows:          Sec. 29.023.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS   WITH AUTISM. (a) From money appropriated or otherwise available   for the purpose, 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 money 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 money.          (j)  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.          (k)  A regional education service center may administer   grants awarded under this section.          Sec. 29.024.  GRANT PROGRAM PROVIDING TRAINING IN DYSLEXIA   FOR TEACHERS AND STAFF. (a) From money appropriated or otherwise   available for the purpose, the commissioner shall establish a   program to award grants each school year 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, with priority for   training staff to earn the credentials necessary to become a   licensed dyslexia therapist or certified academic language   therapist.          (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 awarded to a school district or open-enrollment   charter school under this section is in addition to the Foundation   School Program money 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 money.          (e)  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.          (f)  A regional education service center may administer   grants awarded under this section.          Sec. 29.025.  SUPPORTS FOR RECRUITING AND RETAINING SPECIAL   EDUCATION STAFF. (a) From money appropriated or otherwise   available for the purpose, the agency shall provide grants each   school year 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, certified interpreters,   board-certified behavior analysts, registered behavior   technicians, 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)  A regional education service center may administer   grants awarded under this section.          (d)  The commissioner shall adopt rules establishing the   period of required employment described by Subsection (b) and any   other rules necessary to implement this section.          Sec. 29.026.  RULES.  The commissioner may adopt rules as   necessary to implement this subchapter.          SECTION 3.25.  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 3.26.  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 3.27.  Section 29.042, Education Code, is amended by   amending Subsections (a) and (c) and adding Subsection (e) 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.          (c)  A student may receive one grant under this subchapter   unless the legislature appropriates money for an additional grant   in the General Appropriations Act [The commissioner shall set aside   an amount set by appropriation for each state fiscal year to fund   the program under this section. For each state fiscal year, the   total amount provided for student grants under Subsection (a) may   not exceed the amount set aside by the commissioner under this   subsection].          (e)  The agency shall maintain an online user-friendly   application system for parents to apply for a grant described by   Subsection (a).          SECTION 3.28.  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 3.29.  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 3.30.  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 3.31.  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 3.32.  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 3.33.  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 3.34.  Section 29.153, Education Code, is amended by   amending Subsection (b) and adding Subsection (b-2) to read as   follows:          (b)  A child is eligible for enrollment in a prekindergarten   class under this section if the child is at least three years of age   and:                (1)  is unable to speak and comprehend the English   language;                (2)  is educationally disadvantaged;                (3)  is 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 a child eligible for special education services   under Subchapter A and the child's admission, review, and dismissal   committee determines the prekindergarten class to be the most   appropriate placement for the child under the child's   individualized education program.          (b-2)  A child described by Subsection (b)(8) who is at least   three years of age but younger than four years of age may be   enrolled in a prekindergarten class offered to children who are at   least four years of age if:                (1)  the school district does not offer a   prekindergarten program for children who are at least three years   of age; and                (2)  the child's admission, review, and dismissal   committee determines the prekindergarten class to be the most   appropriate placement for the child under the child's   individualized education program.          SECTION 3.35.  Section 29.301(1), Education Code, is amended   to read as follows:                (1)  "Admission, review, and dismissal committee"   means the committee required by [State Board of Education rules to   develop the individualized education program required by] the   Individuals with Disabilities Education Act (20 U.S.C. Section 1400   et seq.) for any student needing special education.          SECTION 3.36.  Sections 29.304(a) and (c), Education Code,   are amended to read as follows:          (a)  A student who is deaf or hard of hearing must have an   education in which teachers, psychologists, speech language   pathologists [therapists], progress assessors, administrators, and   others involved in education understand the unique nature of   deafness and the hard-of-hearing condition.  A teacher of students   who are deaf or hard of hearing either must be proficient in   appropriate language modes or use an interpreter certified in   appropriate language modes if certification is available.          (c)  General [Regular] and special education personnel who   work with students who are deaf or hard of hearing must be   adequately prepared to provide educational instruction and   services to those students.          SECTION 3.37.  Section 29.310, Education Code, is amended by   amending Subsection (c) and adding Subsection (d) to read as   follows:          (c)  The procedures and materials for the assessment and   placement of a student who is deaf or hard of hearing shall be in the   student's preferred mode of communication.  All other procedures   and materials used with any student who is deaf or hard of hearing   and who is an emergent bilingual student as defined by Section   29.052 [has limited English proficiency] shall be in the student's   preferred mode of communication.          (d)  In recognizing the need for development of language and   communication abilities in students who are deaf or hard of hearing   but also calling for the use of methods of communication that will   meet the needs of each individual student, each student who is deaf   or hard of hearing must be thoroughly assessed to ascertain the   student's potential for communicating through a variety of means.          SECTION 3.38.  Section 29.313, Education Code, is amended to   read as follows:          Sec. 29.313.  EVALUATION OF DEAF AND HARD OF HEARING   SERVICES [PROGRAMS].  (a)  Each school district must provide   continuous evaluation of the effectiveness of the district's   services [programs of the district] for students who are deaf or   hard of hearing.  The [If practicable,] evaluations shall follow   program excellence indicators established by the agency.          (b)  Each school district shall submit the evaluations under   this section to the agency on a schedule set by the agency.          SECTION 3.39.  Section 29.314, Education Code, is amended to   read as follows:          Sec. 29.314.  TRANSITION INTO GENERAL EDUCATION [REGULAR]   CLASS.  In addition to satisfying requirements of the admission,   review, and dismissal committee and to satisfying requirements   under state and federal law for vocational training, each school   district shall develop and implement a transition plan for the   transition of a student who is deaf or hard of hearing into a   general education [regular] class [program] if the student is to be   transferred from a special class or center or nonpublic,   nonsectarian school into a general education [regular] class in a   public school for any part of the school day.  The transition plan   must provide for activities:                (1)  to integrate the student into the general   [regular] education program and specify the nature of each activity   and the time spent on the activity each day; and                (2)  to support the transition of the student from the   special education program into the general [regular] education   program.          SECTION 3.40.  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; and                (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 3.41.  Section 29.316, Education Code, is amended to   read as follows:          Sec. 29.316.  LANGUAGE ACQUISITION.  (a)  In this section,   "language [:                [(1)  "Center" means the Educational Resource Center on   Deafness at the Texas School for the Deaf.                [(2)  "Division" means the Division for Early Childhood   Intervention Services of the Health and Human Services Commission.                [(3)  "Language] acquisition" includes expressive and   receptive language acquisition and literacy development in   English, American Sign Language, or both, or, if applicable, in   another language primarily used by a child's parent or guardian,   and is separate from any modality used to communicate in the   applicable language or languages.          (b)  Each school district [The commissioner and the   executive commissioner of the Health and Human Services Commission   jointly] shall ensure that the language acquisition of each child   eight years of age or younger who is deaf or hard of hearing is   regularly assessed using a tool or assessment approved by the   commissioner [determined to be valid and reliable as provided by   Subsection (d)].          (c)  On a schedule determined by the commissioner, each   school district shall report to the commissioner through the Public   Education Information Management System (PEIMS) or another method   set by commissioner rule the assessment data collected under   Subsection (b) [Not later than August 31 of each year, the agency,   the division, and the center jointly shall prepare and post on the   agency's, the division's, and the center's respective Internet   websites a report on the language acquisition of children eight   years of age or younger who are deaf or hard of hearing. The report   must:                [(1)  include:                      [(A)  existing data reported in compliance with   federal law regarding children with disabilities; and                      [(B)  information relating to the language   acquisition of children who are deaf or hard of hearing and also   have other disabilities;                [(2)  state for each child:                      [(A)  the instructional arrangement used with the   child, as described by Section 48.102, including the time the child   spends in a mainstream instructional arrangement;                      [(B)  the specific language acquisition services   provided to the child, including:                            [(i)  the time spent providing those   services; and                            [(ii)  a description of any hearing   amplification used in the delivery of those services, including:                                  [(a)  the type of hearing   amplification used;                                  [(b)  the period of time in which the   child has had access to the hearing amplification; and                                  [(c)  the average amount of time the   child uses the hearing amplification each day;                      [(C)  the tools or assessments used to assess the   child's language acquisition and the results obtained;                      [(D)  the preferred unique communication mode   used by the child at home; and                      [(E)  the child's age, race, and gender, the age   at which the child was identified as being deaf or hard of hearing,   and any other relevant demographic information the commissioner   determines to likely be correlated with or have an impact on the   child's language acquisition;                [(3)  compare progress in English literacy made by   children who are deaf or hard of hearing to progress in that subject   made by children of the same age who are not deaf or hard of hearing,   by appropriate age range; and                [(4)  be redacted as necessary to comply with state and   federal law regarding the confidentiality of student medical or   educational information].          (d)  The commissioner[, the executive commissioner of the   Health and Human Services Commission, and the center] shall adopt   rules establishing the assessment data required to be reported   under Subsection (c) [enter into a memorandum of understanding   regarding:                [(1)  the identification of experts in deaf education;   and                [(2)  the determination, in consultation with those   experts, of the tools and assessments that are valid and reliable,   in both content and administration, for use in assessing the   language acquisition of children eight years of age or younger who   are deaf or hard of hearing].          (e)  The commissioner shall annually post on the agency's   Internet website a report on the language acquisition of children   eight years of age or younger who are deaf or hard of hearing using   the assessment data reported under Subsection (c) [agency shall use   existing collected data and data collected and transferred from the   Department of State Health Services and the Health and Human   Services Commission, as agreed upon in the memorandum of   understanding, for the report under this section].          (f)  The commissioner shall use the assessment data reported   under Subsection (c) in determining whether to award a grant under   Section 29.018 or in seeking federal money available for projects   aimed at improving outcomes for students with disabilities [and the   executive commissioner of the Health and Human Services Commission   jointly shall adopt rules as necessary to implement this section,   including rules for:                [(1)  assigning each child eight years of age or   younger who is deaf or hard of hearing a unique identification   number for purposes of the report required under Subsection (c) and   to enable the tracking of the child's language acquisition, and   factors affecting the child's language acquisition, over time; and                [(2)  implementing this section in a manner that   complies with federal law regarding confidentiality of student   medical or educational information, including the Health Insurance   Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d   et seq.) and the Family Educational Rights and Privacy Act of 1974   (20 U.S.C. Section 1232g), and any state law relating to the privacy   of student information].          SECTION 3.42.  The heading to Section 30.002, Education   Code, is amended to read as follows:          Sec. 30.002.  STATE PLAN [EDUCATION] FOR CHILDREN WITH   VISUAL IMPAIRMENTS, WHO ARE DEAF OR HARD OF HEARING, OR WHO ARE   DEAF-BLIND.          SECTION 3.43.  Sections 30.002(a), (b), (c), and (e),   Education Code, are amended to read as follows:          (a)  The agency shall develop and administer a comprehensive   statewide plan for the education of children [with visual   impairments] who are under 22 [21] years of age and who have visual   impairments, are deaf or hard of hearing, or are deaf-blind that   will ensure that the children have an opportunity for achievement   equal to the opportunities afforded their peers who do not have   visual impairments, are not deaf or hard of hearing, or are not   deaf-blind [with normal vision].          (b)  The agency shall:                (1)  develop standards and guidelines for all special   education and related services for children who have visual   impairments, are deaf or hard of hearing, or are deaf-blind [with   visual impairments] that it is authorized to provide or support   under this code and federal law;                (2)  supervise regional education service centers and   other entities in assisting school districts in serving children   who have visual impairments, are deaf or hard of hearing, or are   deaf-blind [with visual impairments] more effectively; and                (3)  [develop and administer special education   services for students with both serious visual and auditory   impairments;                [(4)  evaluate special education services provided for   children with visual impairments by school districts and approve or   disapprove state funding of those services; and                [(5)]  maintain an effective liaison between special   education programs provided for children who have visual   impairments, are deaf or hard of hearing, or are deaf-blind [with   visual impairments] by school districts and related initiatives of   the Health and Human Services Commission, [the Department of State   Health Services Mental Health and Substance Abuse Division,] the   Texas Workforce Commission, and other related programs, agencies,   or facilities as appropriate.          (c)  The comprehensive statewide plan for the education of   children who have visual impairments, are deaf or hard of hearing,   or are deaf-blind [with visual impairments] must:                (1)  adequately provide for comprehensive diagnosis   and evaluation of each school-age child who has a visual   impairment, is deaf or hard of hearing, or is deaf-blind and   adequately outline the expectations of a school district for such a   child under three years of age [with a serious visual impairment];                (2)  include the procedures, format, and content of the   individualized education program for each child who has a visual   impairment, is deaf or hard of hearing, or is deaf-blind [with a   visual impairment];                (3)  emphasize providing educational services to   children who have visual impairments, are deaf or hard of hearing,   or are deaf-blind [with visual impairments] in their home   communities whenever possible;                (4)  include information regarding the establishment   of regional day school programs for the deaf under Subchapter D and   the parameters of those programs [methods to ensure that children   with visual impairments receiving special education services in   school districts receive, before being placed in a classroom   setting or within a reasonable time after placement:                      [(A)  evaluation of the impairment; and                      [(B)  instruction in an expanded core curriculum,   which is required for students with visual impairments to succeed   in classroom settings and to derive lasting, practical benefits   from the education provided by school districts, including   instruction in:                            [(i)  compensatory skills, such as braille   and concept development, and other skills needed to access the rest   of the curriculum;                            [(ii)  orientation and mobility;                            [(iii)  social interaction skills;                            [(iv)  career planning;                            [(v)  assistive technology, including   optical devices;                            [(vi)  independent living skills;                            [(vii)  recreation and leisure enjoyment;                            [(viii)  self-determination; and                            [(ix)  sensory efficiency];                (5)  provide for flexibility on the part of school   districts to meet the unique [special] needs of children who have   visual impairments, are deaf or hard of hearing, or are deaf-blind    [with visual impairments] through:                      (A)  specialty staff and resources provided by the   district;                      (B)  contractual arrangements with other   qualified public or private agencies;                      (C)  supportive assistance from regional   education service centers or adjacent school districts;                      (D)  short-term or long-term services through the   Texas School for the Blind and Visually Impaired, the Texas School   for the Deaf, regional day school programs for the deaf, or related   facilities or programs; or                      (E)  other instructional and service arrangements   approved by the agency;                (6)  [include a statewide admission, review, and   dismissal process;                [(7)]  provide for effective interaction between the   [visually impaired child's] classroom setting of the child who has   a visual impairment, is deaf or hard of hearing, or is deaf-blind    and the child's home environment, including providing for parental   training and counseling either by school district staff or by   representatives of other organizations directly involved in the   development and implementation of the individualized education   program for the child;                (7)  describe recommended and required professional   development activities based on the special education and related   services provided by school district staff to children who have   visual impairments, are deaf or hard of hearing, or are deaf-blind    [(8)  require the continuing education and professional   development of school district staff providing special education   services to children with visual impairments];                (8) [(9)]  provide for adequate monitoring and precise   evaluation of special education services provided to children who   have visual impairments, are deaf or hard of hearing, or are   deaf-blind [with visual impairments] through school districts;   [and]                (9) [(10)]  require that school districts providing   special education services to children who have visual impairments,   are deaf or hard of hearing, or are deaf-blind [with visual   impairments] develop procedures for assuring that staff assigned to   work with the children have prompt and effective access directly to   resources available through:                      (A)  cooperating agencies in the area;                      (B)  the Texas School for the Blind and Visually   Impaired;                      (C)  the Texas School for the Deaf;                      (D)  the statewide outreach center at the Texas   School for the Deaf;                      (E)  the Central Media Depository for specialized   instructional materials and aids made specifically for use by   students with visual impairments;                      (F) [(D)]  sheltered workshops participating in   the state program of purchases of blind-made goods and services;   and                      (G) [(E)]  related sources; and                (10)  assist in the coordination of educational   programs with other public and private agencies, including:                      (A)  agencies operating early childhood   intervention programs;                      (B)  preschools;                      (C)  agencies operating child development   programs;                      (D)  private nonsectarian schools;                      (E)  agencies operating regional occupational   centers and programs; and                      (F)  as appropriate, postsecondary and adult   programs for persons who are deaf or hard of hearing.          (e)  Each eligible [blind or visually impaired] student who   has a visual impairment, is deaf or hard of hearing, or is   deaf-blind is entitled to receive educational programs according to   an individualized education program that:                (1)  is developed in accordance with federal and state   requirements for providing special education services;                (2)  is developed by a committee composed as required   by federal law;                (3)  reflects that the student has been provided a   detailed explanation of the various service resources available to   the student in the community and throughout the state;                (4)  provides a detailed description of the   arrangements made to provide the student with the evaluation and   instruction required under this subchapter and Subchapter A,   Chapter 29 [Subsection (c)(4)]; and                (5)  sets forth the plans and arrangements made for   contacts with and continuing services to the student beyond regular   school hours to ensure the student learns the skills and receives   the instruction required under this subchapter and Subchapter A,   Chapter 29 [Subsection (c)(4)(B)].          SECTION 3.44.  Subchapter A, Chapter 30, Education Code, is   amended by adding Section 30.0021 to read as follows:          Sec. 30.0021.  REQUIREMENTS FOR CHILDREN WITH VISUAL   IMPAIRMENTS. (a) Each child with a visual impairment must receive   instruction in an expanded core curriculum required for children   with visual impairments to succeed in classroom settings and to   derive lasting, practical benefits from education in a school   district, including instruction in:                (1)  compensatory skills, such as braille and concept   development, and other skills necessary to access the rest of the   curriculum;                (2)  orientation and mobility;                (3)  social interaction skills;                (4)  career education;                (5)  assistive technology, including optical devices;                (6)  independent living skills;                (7)  recreation and leisure enjoyment;                (8)  self-determination; and                (9)  sensory efficiency.          (b)  To determine a child's eligibility for a school   district's special education program under Subchapter A, Chapter   29, on the basis of a visual impairment, the full individual and   initial evaluation of the child under Section 29.004 and any   reevaluation of the child must, in accordance with commissioner   rule:                (1)  include an orientation and mobility evaluation   conducted:                      (A)  by a person who is appropriately certified as   an orientation and mobility specialist, as determined by   commissioner rule; and                      (B)  in a variety of lighting conditions and   settings, including in the child's home, school, and community and   in settings unfamiliar to the child; and                (2)  provide for a person who is appropriately   certified as an orientation and mobility specialist, as determined   by commissioner rule, to participate, as part of a   multidisciplinary team, in evaluating the data on which the   determination of the child's eligibility is based.          (c)  In developing an individualized education program under   Section 29.005 for a child with a visual impairment, proficiency in   reading and writing must be a significant indicator of the child's   satisfactory educational progress.  The individualized education   program must include instruction in braille and the use of braille   unless the child's admission, review, and dismissal committee   documents a determination, based on an evaluation of the child's   appropriate literacy media and literacy skills and the child's   current and future instructional needs, that braille is not an   appropriate literacy medium for the child.          (d)  Braille instruction:                (1)  may be used in combination with other special   education services appropriate to the educational needs of a child   with a visual impairment; and                (2)  must be provided by a teacher certified to teach   children with visual impairments under Subchapter B, Chapter 21.          (e)  A school district shall provide to each person assisting   in the development of an individualized education program for a   child with a visual impairment information describing the benefits   of braille instruction.          (f)  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.  The supplemental allowance may be spent   only for special education services uniquely required by the nature   of the child's disabilities and may not be used in lieu of   educational funds otherwise available under this code or through   state or local appropriations.          SECTION 3.45.  Section 30.003, Education Code, is amended by   amending Subsections (b), (d), (f-1), and (g) 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)  The commissioner shall reduce the amount of   maintenance taxes imposed by the district that are obligated to be   paid under Subsection (b) 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.          (d)  Each school district and state institution shall   provide to the commissioner the necessary information to determine   the district's share under this section.  The information must be   reported to the commissioner on or before a date set by commissioner   rule [of the State Board of Education].  After determining the   amount of a district's share for all students for which the district   is responsible, the commissioner shall deduct that amount from the   payments of foundation school funds payable to the district.  Each   deduction shall be in the same percentage of the total amount of the   district's share as the percentage of the total foundation school   fund entitlement being paid to the district at the time of the   deduction, except that the amount of any deduction may be modified   to make necessary adjustments or to correct errors.  The   commissioner shall provide for remitting the amount deducted to the   appropriate school at the same time at which the remaining funds are   distributed to the district.  If a district does not receive   foundation school funds or if a district's foundation school   entitlement is less than the amount of the district's share under   this section, the commissioner shall direct the district to remit   payment to the commissioner, and the commissioner shall remit the   district's share to the appropriate school.          (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.          (g)  The commissioner [State Board of Education] may adopt   rules as necessary to implement this section.          SECTION 3.46.  Section 30.004(b), Education Code, is amended   to read as follows:          (b)  The commissioner [State Board of Education] shall adopt   rules prescribing the form and content of information required by   Subsection (a).          SECTION 3.47.  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; and                (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 3.48.  Section 30.021(e), Education Code, is amended   to read as follows:          (e)  The school shall cooperate with public and private   agencies and organizations serving students and other persons with   visual impairments in the planning, development, and   implementation of effective educational and rehabilitative service   delivery systems associated with educating students with visual   impairments.  To maximize and make efficient use of state   facilities, funding, and resources, the services provided in this   area may include conducting a cooperative program with other   agencies to serve students who have graduated from high school by   completing all academic requirements applicable to students in   general [regular] education, excluding satisfactory performance   under Section 39.025, who are younger than 22 years of age on   September 1 of the school year and who have identified needs related   to vocational training, independent living skills, orientation and   mobility, social and leisure skills, compensatory skills, or   remedial academic skills.          SECTION 3.49.  Section 30.081, Education Code, is amended to   read as follows:          Sec. 30.081.  LEGISLATIVE INTENT CONCERNING REGIONAL DAY   SCHOOLS FOR THE DEAF.  The legislature, by this subchapter, intends   to continue a process of providing on a statewide basis a suitable   education to deaf or hard of hearing students who are under 22 [21]   years of age and assuring that those students have the opportunity   to become independent citizens.          SECTION 3.50.  Section 30.083, Education Code, is amended to   read as follows:          Sec. 30.083.  STATEWIDE PLAN.  [(a)]  The director of   services shall develop and administer a comprehensive statewide   plan for educational services for students who are deaf or hard of   hearing and receive special education and related services through   a regional day school program for the deaf[, including continuing   diagnosis and evaluation, counseling, and teaching].  The plan   shall be included as part of the comprehensive state plan under   Section 30.002 [designed to accomplish the following objectives:                [(1)  providing assistance and counseling to parents of   students who are deaf or hard of hearing in regional day school   programs for the deaf and admitting to the programs students who   have a hearing loss that interferes with the processing of   linguistic information;                [(2)  enabling students who are deaf or hard of hearing   to reside with their parents or guardians and be provided an   appropriate education in their home school districts or in regional   day school programs for the deaf;                [(3)  enabling students who are deaf or hard of hearing   who are unable to attend schools at their place of residence and   whose parents or guardians live too far from facilities of regional   day school programs for the deaf for daily commuting to be   accommodated in foster homes or other residential school facilities   provided for by the agency so that those children may attend a   regional day school program for the deaf;                [(4)  enrolling in the Texas School for the Deaf those   students who are deaf or hard of hearing whose needs can best be met   in that school and designating the Texas School for the Deaf as the   statewide educational resource for students who are deaf or hard of   hearing;                [(5)  encouraging students in regional day school   programs for the deaf to attend general education classes on a   part-time, full-time, or trial basis; and                [(6)  recognizing the need for development of language   and communications abilities in students who are deaf or hard of   hearing, but also calling for the use of methods of communication   that will meet the needs of each individual student, with each   student assessed thoroughly so as to ascertain the student's   potential for communications through a variety of means, including   through oral or aural means, fingerspelling, or sign language].          [(b)  The director of services may establish separate   programs to accommodate diverse communication methodologies.]          SECTION 3.51.  Section 37.146(a), Education Code, 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 3.52.  Section 38.003(c-1), Education Code, is   amended to read as follows:          (c-1)  The agency by rule shall develop procedures designed   to allow the agency to:                (1)  effectively audit and monitor and periodically   conduct site visits of all school districts to ensure that   districts are complying with this section, including the program   approved by the State Board of Education under this section;                (2)  identify any problems school districts experience   in complying with this section, including the program approved by   the State Board of Education under this section;                (3)  develop reasonable and appropriate remedial   strategies to address school district noncompliance and ensure the   purposes of this section are accomplished, which may include the   publication of a recommended evidence-based dyslexia program list;   [and]                (4)  solicit input from parents of students enrolled in   a school district during the auditing and monitoring of the   district under Subdivision (1) regarding the district's   implementation of the program approved by the State Board of   Education under this section; and                (5)  engage in general supervision activities,   including activities under the comprehensive system for monitoring   described by Section 29.010, to ensure school district compliance   with the program approved by the State Board of Education under this   section and Part B, Individuals with Disabilities Education Act (20   U.S.C. Section 1411 et seq.).          SECTION 3.53.  Section 48.009(b), Education Code, is amended   to read as follows:          (b)  The commissioner by rule shall require each school   district and open-enrollment charter school to report through the   Public Education Information Management System information   regarding:                (1)  the number of students enrolled in the district or   school who are identified as having dyslexia;                (2)  the availability of school counselors, including   the number of full-time equivalent school counselors, at each   campus;                (3)  the availability of expanded learning   opportunities as described by Section 33.252 at each campus;                (4)  the total number of students, other than students   described by Subdivision (5), enrolled in the district or school   with whom the district or school, as applicable, used intervention   strategies, as that term is defined by Section 26.004, at any time   during the year for which the report is made;                (5)  the total number of students enrolled in the   district or school to whom the district or school provided aids,   accommodations, or services under Section 504, Rehabilitation Act   of 1973 (29 U.S.C. Section 794), at any time during the year for   which the report is made;                (6)  disaggregated by campus and grade, the number of:                      (A)  children who are required to attend school   under Section 25.085, are not exempted under Section 25.086, and   fail to attend school without excuse for 10 or more days or parts of   days within a six-month period in the same school year;                      (B)  students for whom the district initiates a   truancy prevention measure under Section 25.0915(a-4); and                      (C)  parents of students against whom an   attendance officer or other appropriate school official has filed a   complaint under Section 25.093; [and]                (7)  the number of students who are enrolled in a high   school equivalency program, a dropout recovery school, or an adult   education program provided under a high school diploma and industry   certification charter school program provided by the district or   school and who:                      (A)  are at least 18 years of age and under 26   years of age;                      (B)  have not previously been reported to the   agency as dropouts; and                      (C)  enroll in the program at the district or   school after not attending school for a period of at least nine   months; and                (8)  students enrolled in a special education program   under Subchapter A, Chapter 29, as necessary for the agency to   adequately perform general supervision activities and determine   funding under Sections 48.102 and 48.1021.          SECTION 3.54.  Subchapter A, Chapter 48, Education Code, is   amended by adding Section 48.011 to read as follows:          Sec. 48.011.  COMMISSIONER AUTHORITY TO RESOLVE UNINTENDED   CONSEQUENCES. (a)  Subject to Subsection (b), the commissioner   may, as necessary to implement changes made by the legislature to   public school finance and school district maintenance and   operations tax rates during the preceding four state fiscal years:                (1)  adjust a school district's entitlement under this   chapter if the funding formulas used to determine the district's   entitlement result in an unanticipated loss, gain, or other result   for a school district; and                (2)  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 tax rate.          (b)  Before making an adjustment under Subsection (a), the   commissioner shall notify and must receive approval from the   Legislative Budget Board and the office of the governor.          (c)  If the commissioner makes an adjustment under   Subsection (a), the commissioner must provide to the legislature an   explanation regarding the changes necessary to resolve the   unintended consequences.          SECTION 3.55.  Section 48.102, Education Code, is amended to   read as follows:          Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in   average daily attendance in a special education program under   Subchapter A, Chapter 29, [in a mainstream instructional   arrangement,] a school district is entitled to an annual allotment   equal to the basic allotment, or, if applicable, the sum of the   basic allotment and the allotment under Section 48.101 to which the   district is entitled, multiplied by a weight in an amount set by the   legislature in the General Appropriations Act for the highest tier   of intensity of service for which the student qualifies [1.15].          (a-1)  Notwithstanding Subsection (a), for the 2025-2026 and   2026-2027 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1022.     This subsection expires September 1, 2027.  [For each full-time   equivalent student in average daily attendance in a special   education program under Subchapter A, Chapter 29, in an   instructional arrangement other than a mainstream instructional   arrangement, a district is entitled to an annual allotment equal to   the basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled, multiplied by a weight determined according   to instructional arrangement as follows:                [Homebound 5.0                [Hospital class 3.0                [Speech therapy 5.0                [Resource room 3.0                [Self-contained, mild and moderate, regular campus  3.0                [Self-contained, severe, regular campus  3.0                [Off home campus 2.7                [Nonpublic day school 1.7                [Vocational adjustment class 2.3]          (b)  The commissioner by rule shall define eight 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 and one tier for students receiving only   speech therapy  [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)  In defining the tiers of intensity of service under   Subsection (b), the commissioner shall consider:                (1)  the type, frequency, and nature of services   provided to a student;                (2)  the required certifications, licensures, or other   qualifications for personnel serving the student;                (3)  any identified or curriculum-required   provider-to-student ratios for the student to receive the   appropriate services; and                (4)  any equipment or technology required for the   services [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 placement of special education   students.  The legislature shall provide by appropriation for the   state's share of the costs of those placements.          [(h)]  At least 55 percent of the funds allocated under this   section must be used in the special education program under   Subchapter A, Chapter 29.          (e) [(i)]  The agency shall ensure [encourage] the placement   of students in special education programs, including students in   residential placement [instructional arrangements], in the least   restrictive environment appropriate for their educational needs.          (f) [(j)]  A school district that provides an extended year   program required by federal law for special education students who   may regress is entitled to receive funds in an amount equal to [75   percent, or a lesser percentage determined by the commissioner, of]   the basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled for each [full-time equivalent] student in   average daily attendance, multiplied by the amount designated for   the highest tier of intensity of service for which the student   qualifies [student's instructional arrangement] under this   section, for each day the program is provided divided by the number   of days in the minimum school year. [The total amount of state   funding for extended year services under this section may not   exceed $10 million per year.]  A school district may use funds   received under this section only in providing an extended year   program.          (g) [(k)]  From the total amount of funds appropriated for   special education under this section, the commissioner shall   withhold an amount specified in the General Appropriations Act, and   distribute that amount to school districts for programs under   Section 29.014.  The program established under that section is   required only in school districts in which the program is financed   by funds distributed under this subsection and any other funds   available for the program.  After deducting the amount withheld   under this subsection from the total amount appropriated for   special education, the commissioner shall reduce each district's   allotment proportionately and shall allocate funds to each district   accordingly.          (h)  Not later than December 1 of each even-numbered year,   the commissioner shall submit to the Legislative Budget Board, for   purposes of the allotment under this section, proposed weights for   the tiers of intensity of service for the next state fiscal   biennium.          SECTION 3.56.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.1021 and 48.1022 to read as follows:          Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.   (a)  For each student in a special education program under   Subchapter A, Chapter 29, 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   receives services.          (a-1)  Notwithstanding Subsection (a), for the 2025-2026 and   2026-2027 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1022.     This subsection expires September 1, 2027.          (b)  The commissioner by rule shall establish at least four   service groups for use in determining funding under this section.     In establishing the groups, the commissioner must consider:                (1)  the type, frequency, and nature of services   provided to a student;                (2)  the required certifications, licensures, or other   qualifications for personnel serving the student;                (3)  any identified or curriculum-required   provider-to-student ratios for the student to receive the   appropriate services; and                (4)  any equipment or technology required for the   services.          (c)  At least 55 percent of the funds allocated under this   section must be used for a special education program under   Subchapter A, Chapter 29.          (d)  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. 48.1022.  SPECIAL EDUCATION TRANSITION FUNDING.   (a)  For the 2025-2026 and 2026-2027 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 2025-2026 and 2026-2027 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 shall ensure the   estimated statewide increase from the allotment under Section   48.102 for the 2024-2025 school year to the sum of the allotments   under Sections 48.102 and 48.1021 for the 2025-2026 school year is   approximately $800 million.          (c)  Each school district and open-enrollment charter school   shall report to the agency information necessary to implement this   section.          (d)  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.          (e)  This section expires September 1, 2028.          SECTION 3.57.  Sections 48.103(b), (c), and (d), Education   Code, are amended to read as follows:          (b)  A school district is entitled to an allotment under   Subsection (a) only for a student who:                (1)  is receiving:                      (A)  instruction, services, or accommodations for   dyslexia or a related disorder in accordance with[:                      [(A)]  an individualized education program   developed for the student under Section 29.005; or                      (B)  accommodations for dyslexia or a related   disorder in accordance with a plan developed for the student under   Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794); or                (2)  [is receiving instruction that:                      [(A)  meets applicable dyslexia program criteria   established by the State Board of Education; and                      [(B)  is provided by a person with specific   training in providing that instruction; or                [(3)]  is permitted, on the basis of having dyslexia or   a related disorder, to use modifications in the classroom or   accommodations in the administration of assessment instruments   under Section 39.023 without a program or plan described by   Subdivision (1).          (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].          (d)  A school district may use [an amount not to exceed 20   percent of] the allotment provided for a qualifying student under   this section to contract with a private provider to provide   supplemental academic services to the student that are recommended   under the student's program or plan described by Subsection (b).  A   student may not be excused from school to receive supplemental   academic services provided under this subsection.          SECTION 3.58.  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 3.59.  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 per mile equal to the sum of the   rate per mile set under Subsection (c) and $0.13, 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 3.60.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.158 to read as follows:          Sec. 48.158.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL   EVALUATION. For each child 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 $1,000 or a greater amount provided by appropriation.          SECTION 3.61.  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 3.62.  Section 48.279(e), Education Code, is amended   to read as follows:          (e)  After the commissioner has replaced any withheld   federal funds as provided by Subsection (d), the commissioner shall   distribute the remaining amount, if any, of funds described by   Subsection (a) to proportionately increase funding for the special   education allotment under Section 48.102 and the special education   service group allotment under Section 48.1021.          SECTION 3.63.  Subchapter G, Chapter 48, Education Code, is   amended by adding Sections 48.304, 48.306, and 48.315 to read as   follows:          Sec. 48.304.  DAY PLACEMENT PROGRAM OR COOPERATIVE FUNDING.   (a) For each qualifying day placement program or cooperative that a   regional education service center, school district, or   open-enrollment charter school establishes, the program or   cooperative is entitled to an allotment of:                (1)  $250,000 for the first year of the program's or   cooperative's operation; and                (2)  the sum of:                      (A)  $100,000 for each year of the program's or   cooperative's operation after the first year; and                      (B)  $150,000 if at least three students are   enrolled in the program or cooperative for a year described by   Paragraph (A).          (b)  A day placement program or cooperative qualifies for   purposes of Subsection (a) if:                (1)  the program or cooperative complies with   commissioner rules adopted for purposes of this section under   Section 48.004;                (2)  the program or cooperative offers services to   students who are enrolled at any school district or open-enrollment   charter school in the county in which the program or cooperative is   offered, unless the commissioner by rule waives or modifies the   requirement under this subdivision for the program or cooperative   to serve all students in a county; and                (3)  the agency has designated the program or   cooperative for service in the county in which the program or   cooperative is offered and determined that, at the time of   designation, the program or cooperative increases the availability   of day placement services in the county.          (c)  The agency may not designate more than one day placement   program or cooperative for service per county each year.          (d)  The agency may designate a regional education service   center to implement and administer this section.          (e)  Notwithstanding any other provision of this section,   the agency may not provide an allotment under this section to more   than 20 day placement programs or cooperatives for a year.          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 regional education service center designated to   administer the program under Subchapter A-1, Chapter 29, for a   school year is entitled to an amount equal to four percent of each   grant awarded under that subchapter for that school year.          (e)  Notwithstanding Section 7.057, a determination of the   commissioner under this section is final and may not be appealed.          Sec. 48.315.  FUNDING FOR REGIONAL DAY SCHOOL PROGRAMS FOR   THE DEAF. (a)  The program administrator or fiscal agent of a   regional day school program for the deaf is entitled to receive for   each school year an allotment of $6,925, or a greater amount   provided by appropriation, for each student receiving services from   the program.          (b)  Notwithstanding Subsection (a), the agency shall adjust   the amount of an allotment under that subsection for a school year   to ensure the total amount of allotments provided under that   subsection is at least $35 million for that school year.          SECTION 3.64.  The following provisions of the Education   Code are repealed:                (1)  Section 7.055(b)(24);                (2)  Sections 7.102(c)(18), (19), (20), (21), and (22);                (3)  Section 29.002;                (4)  Section 29.0041(c);                (5)  Section 29.005(f);                (6)  Section 29.0161;                (7)  Sections 29.018(c), (d), and (e);                (8)  Sections 29.308, 29.309, 29.311, 30.001, and   30.0015;                (9)  Sections 30.002(c-1), (c-2), (f), (f-1), and (g);                (10)  Section 30.084;                (11)  Section 30.087(b); and                (12)  Section 38.003(d).          SECTION 3.65.  The commissioner of education shall award a   grant under Subchapter A-1, Chapter 29, Education Code, as amended   by this Act, for the 2025-2026 school year to each eligible   applicant who applied but was not accepted for the 2024-2025 school   year.   ARTICLE 4. TRANSITION AND EFFECTIVE DATE          SECTION 4.01.  (a)  Except as otherwise provided by this Act   and by Subsection (b) of this section, the changes made by this Act   to Chapters 7, 8, 12A, 21, 25, 28, 29, 30, 37, and 38, Education   Code, apply beginning with the 2025-2026 school year.          (b)  Section 21.0032, Education Code, as added by this Act,   and Section 29.008, Education Code, as amended by this Act, apply   beginning with the 2026-2027 school year.          SECTION 4.02.  (a)  Except as otherwise provided by this Act   and as provided by Subsection (b) of this section, this Act takes   effect September 1, 2025.          (b)  The changes made by this Act to Chapters 7, 8, 12A, 21,   25, 28, 29, 30, 37, and 38, Education Code, and Section 48.283,   Education Code, take effect immediately if this Act receives a vote   of two-thirds of all the members elected to each house, as provided   by Section 39, Article III, Texas Constitution. If this Act does   not receive the vote necessary for immediate effect, those changes   take effect September 1, 2025.