By: Guillen H.B. No. 116       A BILL TO BE ENTITLED   AN ACT   relating to the basic allotment and guaranteed yield under the   public school finance system, certain allotments under the   Foundation School Program, determination of a school district's   assets to liabilities ratio under the public school financial   accountability rating system, and credit for prepayment of the   amount required to be paid by a school district for the purchase of   attendance credit under the public school finance system.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 48.051, Education Code, is amended by   amending Subsection (a) 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 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 $8,000 [$6,160] or the amount that   results from the following formula:   A = $8,000 [$6,160] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.          (b)  A greater amount for any school year may be provided by   appropriation.          (c)  During any school year for which the maximum amount of   the basic allotment provided under Subsection (a) or (b) is greater   than the maximum amount provided for the preceding school year, a   school district must use at least 30 percent of the amount, if the   amount is greater than zero, that equals the product of the average   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   compensation paid to classroom teachers, full-time librarians,   full-time school counselors certified under Subchapter B, Chapter   21, and full-time school nurses, prioritizing differentiated   compensation for classroom teachers with more than five years of   experience; and                (2)  25 percent may be used as determined by the   district to increase compensation paid to full-time district   employees.          (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, entitled to salary that is at least equal   to the salary the employee received for the 2019-2020 school year.     This subsection does not apply if the board of trustees of the   school district at which the employee is employed:                (1)  complies with Sections 21.4021, 21.4022, and   21.4032 in reducing the employee's salary; and                (2)  has adopted a resolution declaring a financial   exigency for the district under Section 44.011.          (c-2)  A reduction in the salary of a school district   employee described by Subsection (c-1) is subject to the rights   granted to the employee under this code.          (c-3)  Subsection (c)(1) does not apply to a school district   employee subject to Section 48.310 or Section 48.311.          (d)  In this section, "compensation" includes benefits such   as insurance premiums.          SECTION 2.  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 $8,000 [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 $8,000 [$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 3.  Section 48.101, Subchapter C, Chapter 48,   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; 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 .0004.0008) 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 .000025.00005) 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 .00047.00094) X BA          SECTION 4.  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 10,000 or fewer students   enrolled for that school year, $10,000 per classroom teacher; and                (2)  if the district has more than 10,000 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 10,000 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 10,000 or fewer students   enrolled for that school year, $10,000 per classroom teacher; and                (2)  if the district has more than 10,000 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 5.  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 6.  Section 48.102, Education Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  A school district that for the 2023-2024 school year   spent a greater amount for students in a special education program   under Subchapter A, Chapter 29, than the amount the district   received from the allotment under this section is entitled to   additional funding for the 2024-2025 school year in an amount equal   to twice the amount of the difference between the total of those   amounts.  This subsection expires September 1, 2025.          SECTION 7.  Section 39.082(c), Education Code, is amended to   read as follows:          (c)  The system may not include an indicator under Subsection   (b) or any other performance measure that:                (1)  requires a school district to spend at least 65   percent or any other specified percentage of district operating   funds for instructional purposes; [or]                (2)  lowers the financial management performance   rating of a school district for failure to spend at least 65 percent   or any other specified percentage of district operating funds for   instructional purposes; or                (3)  for a school district required to reduce its local   revenue level under Section 48.257, includes in determining the   district's ratio of assets to liabilities any amount required to be   expended by the district to comply with Chapter 49.          SECTION 8.  Subchapter D, Chapter 49, Education Code, is   amended by adding Section 49.1541 to read as follows:          Sec. 49.1541.  CREDIT FOR PREPAYMENT. (a) If a school   district elects to pay for attendance credit purchased in the   manner provided by Section 49.154(a)(2), the total amount required   under Section 49.153 for the district to purchase credit under this   subchapter for any school year is reduced at a rate of one percent   for each full 30-day period remaining until August 15 of the school   year for which the agreement is in effect on the date the district   pays in one payment the total amount required to be paid by the   district.          (b)  A reduction under Subsection (a) shall be made after   making any reduction to which the district is entitled under   Section 49.157 or another provision of this chapter.          SECTION 9.  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 10.  (a)  Except as provided by Subsection (b) of   this section, this Act applies beginning with the 2024-2025 school   year.          (b)  Section 48.311, Education Code, as added by this Act,   and Section 49.1541, Education Code, as added by this Act, apply   beginning with the 2023-2024 school year.          SECTION 11.  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.