By: Creighton, et al. S.B. No. 2     A BILL TO BE ENTITLED   AN ACT   relating to a local optional teacher designation system implemented   by a school district, the basic allotment and guaranteed yield   under the public school finance system, and certain allotments   under the Foundation School Program; making an appropriation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 21.3521(a), (c), and (e), Education   Code, are amended to read as follows:          (a)  Subject to Subsection (b), a school district or   open-enrollment charter school may designate a classroom teacher as   a master, exemplary, [or] recognized, or acknowledged teacher for a   five-year period based on the results from single year or multiyear   appraisals that comply with Section 21.351 or 21.352.          (c)  Notwithstanding performance standards established   under Subsection (b), a classroom teacher that holds a National   Board Certification issued by the National Board for Professional   Teaching Standards may be designated as nationally board certified   [recognized].          (e)  The agency shall develop and provide technical   assistance for school districts and open-enrollment charter   schools that request assistance in implementing a local optional   teacher designation system, including:                (1)  providing assistance in prioritizing high needs   campuses;                (2)  providing examples or models of local optional   teacher designation systems to reduce the time required for a   district or school to implement a teacher designation system;                (3)  establishing partnerships between districts and   schools that request assistance and districts and schools that have   implemented a teacher designation system;                (4)  applying the performance and validity standards   established by the commissioner under Subsection (b);                (5)  providing centralized support for the analysis of   the results of assessment instruments administered to district   students; and                (6)  facilitating effective communication on and   promotion of local optional teacher designation systems.          SECTION 2.  Subchapter H, Chapter 21, Education Code, is   amended by adding Section 21.3522 to read as follows:          Sec. 21.3522.  LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM   GRANT PROGRAM.  (a)  From funds appropriated or otherwise   available for the purpose, the agency shall establish and   administer a grant program to provide money and technical   assistance to:                (1)  expand implementation of local optional teacher   designation systems under Section 21.3521;                (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; and                (2)  enable regional leadership capacity.          SECTION 3.  Section 48.051(a), Education Code, is amended to   read as follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in special education   programs in an instructional arrangement other than mainstream or   career and technology education programs, for which an additional   allotment is made under Subchapter C, a district is entitled to an   allotment equal to [the lesser of $6,160 or] the amount that results   from the following formula:   A = B [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "B" is the base amount, which equals the greatest of:                (1)  $6,235;                (2)  an amount equal to the district's base amount under   this section for the preceding school year; or                (3)  the amount appropriated under Subsection (b);          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.          SECTION 4.  Sections 48.112(c) and (d), Education Code, are   amended to read as follows:          (c)  For each classroom teacher with a teacher designation   under Section 21.3521 employed by a school district, the school   district is entitled to an allotment equal to the following   applicable base amount increased by the high needs and rural factor   as determined under Subsection (d):                (1)  $12,000, or an increased amount not to exceed   $36,000 [$32,000] as determined under Subsection (d), for each   master teacher;                (2)  $9,000 [$6,000], or an increased amount not to   exceed $25,000 [$18,000] as determined under Subsection (d), for   each exemplary teacher; [and]                (3)  $5,000 [$3,000], or an increased amount not to   exceed $15,000 [$9,000] as determined under Subsection (d), for   each recognized teacher; and                (4)  $3,000, or an increased amount not to exceed   $9,000 as determined under Subsection (d), for each:                      (A)  acknowledged teacher; or                      (B)  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.          SECTION 5.  Section 48.115(a), Education Code, is amended to   read as follows:          (a)  Except as provided by Subsection (a-1), a school   district is entitled to an annual allotment equal to the sum of the   following amounts or a greater amount provided by appropriation:                (1)  $20 [$10] for each student in average daily   attendance, plus $1 for each student in average daily attendance   per every $50 by which the district's maximum basic allotment under   Section 48.051 exceeds the greater of $6,235 or the amount equal to   the district's base amount, as defined by Section 48.051(a), for   the preceding school year [$6,160], prorated as necessary; and                (2)  $30,000 [$15,000] per campus.          SECTION 6.  Section 48.202(a-1), Education Code, is amended   to read as follows:          (a-1)  For purposes of Subsection (a), the dollar amount   guaranteed level of state and local funds per weighted student per   cent of tax effort ("GL") for a school district is:                (1)  the greater of the amount of district tax revenue   per weighted student per cent of tax effort available to a school   district at the 96th percentile of wealth per weighted student or   the amount that results from multiplying the maximum amount of the   basic allotment provided under Section 48.051 for the applicable   school year [6,160, or the greater amount provided under Section   48.051(b), if applicable,] by 0.016, for the first eight cents by   which the district's maintenance and operations tax rate exceeds   the district's tier one tax rate; and                (2)  subject to Subsection (f), the amount that results   from multiplying the maximum amount of the basic allotment provided   under Section 48.051 for the applicable school year [$6,160, or the   greater amount provided under Section 48.051(b), if applicable,] by   0.008, for the district's maintenance and operations tax effort   that exceeds the amount of tax effort described by Subdivision (1).          SECTION 7.  Sections 48.277(c-1), (d), and (e), Education   Code, are amended to read as follows:          (c-1)  Notwithstanding any other provision of this chapter,   beginning with the 2024-2025 [2021-2022] school year, if the total   amount of allotments to which school districts and open-enrollment   charter schools are entitled under this section for a school year   exceeds $65 [$400] million, the commissioner shall proportionately   reduce each district's or school's allotment under this   section.  The reduction in the amount to which a district or school   is entitled under this section may not result in an amount that is   less than zero.          (d)  A school district or open-enrollment charter school is   not entitled to an allotment under Subsection (a) beginning with   the 2025-2026 [2024-2025] school year.          (e)  This section expires September 1, 2026 [2025].          SECTION 8.  Subchapter G, Chapter 48, Education Code, is   amended by adding Sections 48.310 and 48.311 to read as follows:          Sec. 48.310.  TEACHER RETENTION ALLOTMENT.  (a) In this   section, "classroom teacher" has the meaning assigned by Section   5.001, except that the term also includes a person who is not   required to hold a certificate issued under Subchapter B, Chapter   21, who otherwise meets the definition of a classroom teacher under   that section.          (b)  A school district is entitled to an annual allotment for   each classroom teacher employed by the district in the school year   for which the allotment is provided as follows:                (1)  if the district has 5,000 or fewer students   enrolled for that school year, $10,000 per classroom teacher; and                (2)  if the district has more than 5,000 students   enrolled for that school year, $3,000 per classroom teacher.          (b-1)  In addition to the amount under Subsection (b)(2), a   school district described by that subdivision is entitled to an   allotment in the amount equal to $7,000 multiplied by the result of   dividing 5,000 by 14.5 if the school district received an allotment   in a previous school year under:                (1)  Subsection (b)(1); or                (2)  Section 48.311(b)(1), as that section existed on   the date it was enacted.          (c)  For the 2024-2025 school year, a school district shall   use money received under Subsection (b) to increase the salary   provided to each classroom teacher in the district for that year   over the salary the teacher received or would have received if   employed by the district in the 2023-2024 school year by at least   the amount received per classroom teacher under Subsection (b).          (d)  For the 2025-2026 and each subsequent school year, a   school district shall use money received under Subsection (b) to   maintain the salary increases for classroom teachers provided under   Subsection (c). Any additional funding generated for a school   district under this section may only be used for the compensation of   classroom teachers employed by the district.          (e)  Notwithstanding any other law, the commissioner shall   exclude the funding to which a school district is entitled under   this section for purposes of:                (1)  determining the amount by which the district must   reduce the district's tier one revenue level under Section 48.257;   and                (2)  calculating a school district's maintenance and   operations revenue under Section 48.277(a).          Sec. 48.311.  TEACHER RETENTION BONUS FOR 2023-2024 SCHOOL   YEAR. (a) In this section, "classroom teacher" has the meaning   assigned by Section 48.310.          (b)  A school district is entitled to a one-time payment for   each classroom teacher employed by the district during the   2023-2024 school year in the following amount:                (1)  if the district has 5,000 or fewer students   enrolled for that school year, $10,000 per classroom teacher; and                (2)  if the district has more than 5,000 students   enrolled for that school year, $3,000 per classroom teacher.          (c)  A school district shall use money received under   Subsection (b) to provide a bonus payment in the amount received per   classroom teacher under Subsection (b) to each classroom teacher in   the district as part of the teacher's salary payment for December   2023, if feasible, and if not feasible, then the district shall   provide the bonus payment as part of the teacher's salary payment   for the first month in which it is feasible. The bonus payment made   under this subsection is in addition to the salary and wages to   which the classroom teacher is otherwise entitled for the 2023-2024   school year.          (d)  Notwithstanding any other law, the commissioner shall   exclude the funding to which a school district is entitled under   this section for purposes of:                (1)  determining the amount by which the district must   reduce the district's tier one revenue level under Section 48.257;   and                (2)  calculating a school district's maintenance and   operations revenue under Section 48.277(a).          (e)  A bonus payment made under this section is included in   salary and wages for service for purposes of Section 822.201,   Government Code.          (f)  This section expires September 1, 2024.          SECTION 9.  Section 822.201(b), Government Code, is amended   to read as follows:          (b)  "Salary and wages" as used in Subsection (a) means:                (1)  normal periodic payments of money for service the   right to which accrues on a regular basis in proportion to the   service performed;                (2)  amounts by which the member's salary is reduced   under a salary reduction agreement authorized by Chapter 610;                (3)  amounts that would otherwise qualify as salary and   wages under Subdivision (1) but are not received directly by the   member pursuant to a good faith, voluntary written salary reduction   agreement in order to finance payments to a deferred compensation   or tax sheltered annuity program specifically authorized by state   law or to finance benefit options under a cafeteria plan qualifying   under Section 125 of the Internal Revenue Code of 1986, if:                      (A)  the program or benefit options are made   available to all employees of the employer; and                      (B)  the benefit options in the cafeteria plan are   limited to one or more options that provide deferred compensation,   group health and disability insurance, group term life insurance,   dependent care assistance programs, or group legal services plans;                (4)  performance pay awarded to an employee by a school   district as part of a total compensation plan approved by the board   of trustees of the district and meeting the requirements of   Subsection (e);                (5)  the benefit replacement pay a person earns under   Subchapter H, Chapter 659, except as provided by Subsection (c);                (6)  stipends paid to teachers in accordance with   former Section 21.410, 21.411, 21.412, or 21.413, Education Code;                (7)  amounts by which the member's salary is reduced or   that are deducted from the member's salary as authorized by   Subchapter J, Chapter 659;                (8)  a merit salary increase made under Section 51.962,   Education Code;                (9)  amounts received under the relevant parts of the   educator excellence awards program under Subchapter O, Chapter 21,   Education Code, or a mentoring program under Section 21.458,   Education Code, that authorize compensation for service;                (10)  salary amounts designated as health care   supplementation by an employee under Subchapter D, Chapter 22,   Education Code;                (11)  to the extent required by Sections 3401(h) and   414(u)(12), Internal Revenue Code of 1986, differential wage   payments received by an individual from an employer on or after   January 1, 2009, while the individual is performing qualified   military service as defined by Section 414(u), Internal Revenue   Code of 1986; [and]                (12)  increased compensation paid to a teacher by a   school district using funds received by the district under the   teacher incentive allotment under Section 48.112, Education Code;   and                (13)  any increase in the payment of money made to a   classroom teacher by a school district from funds allotted to the   district under Section 48.310, Education Code.          SECTION 10.  Section 18.78, Article IX, Chapter 1170 (H.B.   1), Acts of the 88th Legislature, Regular Session, 2023 (the   General Appropriations Act), is amended by adding Subsection (m) to   read as follows:          (m)  In addition to amounts appropriated elsewhere in this   Act, TEA is appropriated $1,196,500,000 from general revenue to   implement the provisions of _.B. _, 88th Legislature, 4th Called   Session, 2023.  From the amount appropriated under this subsection,   not more than:                (1)  $400,000,000 may also be used for school safety   and related purposes; and                (2)  $796,500,000 may also be used for financial and   other assistance to public school educators and the public school   finance system.          SECTION 11.  Sections 48.051(c), (c-1), (c-2), and (d),   Education Code, are repealed.          SECTION 12.  A bonus payment made to a classroom teacher, as   defined by Section 48.310, Education Code, as added by this Act, by   a school district with money received by the district under Section   48.311, Education Code, as added by this Act, as that section   existed prior to its expiration, shall be included in salary and   wages for service for purposes of Section 822.201, Government Code,   as amended by this Act, regardless of the date the payment was made.          SECTION 13.  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 Act. Funding provided to a school district   under Section 48.112, Education Code, for a teacher who held a   designation made under Section 21.3521, Education Code, as that   section existed immediately before the effective date of this Act,   shall be increased to reflect the teacher's redesignation under   Section 21.3521, Education Code, as amended by this Act.          SECTION 14.  (a)  Except as provided by Subsection (b) of   this section, this Act applies beginning with the 2023-2024 school   year.          (b)  Sections 48.277(c-1), (d), and (e), Education Code, as   amended by this Act, and Section 48.310, Education Code, as added by   this Act, apply beginning with the 2024-2025 school year.          SECTION 15.  (a) Except as provided by Subsection (b) of this   section, this Act takes effect immediately if it receives a vote of   two-thirds of all the members elected to each house, as provided by   Section 39, Article III, Texas Constitution.  If this Act does not   receive the vote necessary for immediate effect, this Act takes   effect on the 91st day after the last day of the legislative   session.          (b)  Sections 48.277(c-1), (d), and (e), Education Code, as   amended by this Act, take effect September 1, 2024.