By: Bettencourt, Creighton S.B. No. 1474       A BILL TO BE ENTITLED   AN ACT   relating to special education in public schools, including the   special education allotment under the Foundation School Program, an   education savings account program for certain children with   disabilities, and a grant program to reimburse public schools for   the cost of certain employer contributions for retirees of the   Teacher Retirement System of Texas employed to teach or provide   services related to special education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Effective September 1, 2024, 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, 48.104, 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 2.  Chapter 22, Education Code, is amended by adding   Subchapter E to read as follows:   SUBCHAPTER E.  RETIRED SPECIAL EDUCATION TEACHER GRANT PROGRAM          Sec. 22.151.  RETIRED SPECIAL EDUCATION TEACHER GRANT   PROGRAM. (a)  From money appropriated or otherwise available for   the purpose, the commissioner shall establish a grant program to   reimburse school districts and open-enrollment charter schools for   the cost of required contributions under Section 825.4092,   Government Code, for the employment of a retiree hired to teach   special education or provide services related to special education.          (b)  A grant received under the program may only be used for   the cost of required contributions for the employment of a retiree:                (1)  who retired before September 1, 2022; or                (2)  as provided by the General Appropriations Act.          (c)  If the amount of grant requests under the program   exceeds the amount appropriated or otherwise available for the   purpose, the commissioner shall proportionately reduce the amount   of each grant.          SECTION 3.  Section 29.001, Education Code, is amended to   read as follows:          Sec. 29.001.  IMPLEMENTATION OF SPECIAL EDUCATION   LAW [STATEWIDE PLAN].  (a)  As the state education agency   responsible for carrying out the purposes of Part B, Individuals   with Disabilities Education Act (IDEA) (20 U.S.C. Section 1411 et   seq.), the [The] agency shall develop, and revise [modify] as   necessary, a comprehensive system to ensure statewide and local   compliance [design, consistent] with federal and state law related   to special education[, for the delivery of services to children   with disabilities in this state that includes rules for the   administration and funding of the special education program so that   a free appropriate public education is available to all of those   children between the ages of three and 21].          (b)  The comprehensive system [statewide design] shall   include the provision of services primarily through school   districts and shared services arrangements, supplemented by   regional education service centers.          (c)  The comprehensive system [agency] shall focus on   maximizing student outcomes and include [also develop and implement   a statewide plan with programmatic content that includes procedures   designed to]:                (1)  rulemaking, technical assistance, guidance   documents, monitoring protocols, and other resources as necessary   to implement and ensure compliance with federal and state law   related to special education [ensure state compliance with   requirements for supplemental federal funding for all   state-administered programs involving the delivery of   instructional or related services to students with disabilities];                (2)  the facilitation of [facilitate] interagency   coordination when other state agencies are involved in the delivery   of instructional or related services to students with disabilities;                (3)  the pursuit of [periodically assess statewide   personnel needs in all areas of specialization related to special   education and pursue] strategies to meet statewide special   education and related services personnel [those] needs [through a   consortium of representatives from regional education service   centers, local education agencies, and institutions of higher   education and through other available alternatives];                (4)  ensuring [ensure] that regional education service   centers throughout the state maintain a regional support function,   which may include direct service delivery and a component designed   to facilitate the placement of students with disabilities who   cannot be appropriately served in their resident districts;                (5)  [allow the agency to] effectively monitoring   [monitor] and periodically conducting [conduct] site visits of all   school districts to ensure that rules adopted under this subchapter   [section] are applied in a consistent and uniform manner, to ensure   that districts are complying with those rules, and to ensure that   annual statistical reports filed by the districts and not otherwise   available through the Public Education Information Management   System under Sections 48.008 and 48.009 are accurate and complete;   and                (6)  the provision of training and technical assistance   to ensure that:                      (A)  appropriately trained personnel are involved   in the diagnostic and evaluative procedures operating in all   districts and that those personnel routinely serve on district   admissions, review, and dismissal committees;                      (B)  [(7)  ensure that] an individualized   education program for each student with a disability is properly   developed, implemented, and maintained in the least restrictive   environment that is appropriate to meet the student's educational   needs;                      (C)  [(8)  ensure that,] when appropriate, each   student with a disability is provided an opportunity to participate   in career and technology and physical education classes[, in   addition to participating in regular or special classes];                      (D)  [(9)  ensure that] each student with a   disability is provided necessary related services;                      (E)  [(10)  ensure that] an individual assigned   to act as a surrogate parent for a child with a disability, as   provided by 20 U.S.C. Section 1415(b), is required to:                            (i) [(A)]  complete a training program that   complies with minimum standards established by agency rule;                            (ii) [(B)]  visit the child and the child's   school;                            (iii) [(C)]  consult with persons involved   in the child's education, including teachers, caseworkers,   court-appointed volunteers, guardians ad litem, attorneys ad   litem, foster parents, and caretakers;                            (iv) [(D)]  review the child's educational   records;                            (v) [(E)]  attend meetings of the child's   admission, review, and dismissal committee;                            (vi) [(F)]  exercise independent judgment   in pursuing the child's interests; and                            (vii) [(G)]  exercise the child's due   process rights under applicable state and federal law; and                      (F)  [(11)  ensure that] each district develops a   process to be used by a teacher who instructs a student with a   disability in a regular classroom setting:                            (i) [(A)]  to request a review of the   student's individualized education program;                            (ii) [(B)]  to provide input in the   development of the student's individualized education program;                            (iii) [(C)]  that provides for a timely   district response to the teacher's request; and                            (iv) [(D)]  that provides for notification   to the student's parent or legal guardian of that response.          SECTION 4.  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 5.  Section 29.003, Education Code, is amended to   read as follows:          Sec. 29.003.  ELIGIBILITY CRITERIA.  (a)  The agency shall   develop specific eligibility criteria based on the general   classifications established by this section and in accordance with   federal law [with reference to contemporary diagnostic or   evaluative terminologies and techniques].  Eligible students with   disabilities shall enjoy the right to a free appropriate public   education, which may include instruction in the regular classroom,   instruction through special teaching, or instruction through   contracts approved under this subchapter.  Instruction shall be   supplemented by the provision of related services when appropriate.          (b)  A student is eligible to participate in a school   district's special education program [if the student]:                (1)  from birth through [is not more than] 21 years of   age if the student [and] has a visual [or auditory] impairment or is   deaf or hard of hearing and that disability prevents the student   from being adequately or safely educated in public school without   the provision of special education services; [or]                (2)  from three years of age through five years of age   if the student is experiencing developmental delays as described by   20 U.S.C. Section 1401(3)(B) and defined by commissioner rule; or                (3)  from 3 years of age through [is at least three but   not more than] 21 years of age if the student [and] has one or more   of the [following] disabilities described by 20 U.S.C. Section   1401(3)(A) and that disability prevents the student from being   adequately or safely educated in public school without the   provision of special education services[:                      [(A)  physical disability;                      [(B)  intellectual or developmental disability;                      [(C)  emotional disturbance;                      [(D)  learning disability;                      [(E)  autism;                      [(F)  speech disability; or                      [(G)  traumatic brain injury].          SECTION 6.  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 7.  Section 29.008, Education Code, is amended by   amending Subsections (a) and (b) and adding Subsection (a-1) to   read as follows:          (a)  The commissioner shall establish a list of approved   public or private facilities, institutions, or agencies inside or   outside of this state that a [A] school district, shared services   arrangement unit, or regional education service center may contract   with [a public or private facility, institution, or agency inside   or outside of this state] for the provision of services to students   with disabilities in a residential placement.  The commissioner may   approve either the whole or a part of a facility or program.          (a-1)  Each contract described by this section [for   residential placement] must be approved by the commissioner.  The   commissioner may approve a [residential placement] contract under   this section only after at least a programmatic evaluation of   personnel qualifications, costs, adequacy of physical plant and   equipment, and curriculum content.  [The commissioner may approve   either the whole or a part of a facility or program.]          (b)  Except as provided by Subsection (c), costs of an   approved contract for residential placement may be paid from a   combination of federal, state, and local funds.  The local share of   the total contract cost for each student is that portion of the   local tax effort that exceeds the district's local fund assignment   under Section 48.256, divided by the average daily attendance in   the district.  If the contract involves a private facility, the   state share of the total contract cost is that amount remaining   after subtracting the local share.  If the contract involves a   public facility, the state share is that amount remaining after   subtracting the local share from the portion of the contract that   involves the costs of instructional and related services.  For   purposes of this subsection, "local tax effort" means the total   amount of money generated by taxes imposed for debt service and   maintenance and operation less any amounts paid into a tax   increment fund under Chapter 311, Tax Code.  This subsection   expires September 1, 2027.          SECTION 8.  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 9.  Section 29.010, Education Code, is amended to   read as follows:          Sec. 29.010.  GENERAL SUPERVISION AND COMPLIANCE.  (a)  The   agency shall develop [adopt] and implement a comprehensive system   for monitoring school district compliance with federal and state   laws relating to special education.  The monitoring system must   include a comprehensive cyclical process and a targeted risk-based   process [provide for ongoing analysis of district special education   data and of complaints filed with the agency concerning special   education services and for inspections of school districts at   district facilities].  The agency shall establish criteria and   instruments for use in determining district compliance under this   section [use the information obtained through analysis of district   data and from the complaints management system to determine the   appropriate schedule for and extent of the inspection].          (b)  As part of the monitoring process [To complete the   inspection], the agency must obtain information from parents and   teachers of students in special education programs in the district.          (c)  The agency shall develop and implement a system of   interventions and sanctions for school districts the agency   identifies as being in noncompliance with [whose most recent   monitoring visit shows a failure to comply with major requirements   of] the Individuals with Disabilities Education Act (20 U.S.C.   Section 1400 et seq.), federal regulations, state statutes, or   agency requirements necessary to carry out federal law or   regulations or state law relating to special education.          (d)  The agency shall establish a graduated process of   sanctions to apply to [For] districts that remain in noncompliance   for more than one year[, the first stage of sanctions shall begin   with annual or more frequent monitoring visits]. The [Subsequent]   sanctions shall [may] range in severity and may include [up to] the   withholding of funds.  If funds are withheld, the agency may use the   funds to provide, through alternative arrangements, services to   students and staff members in the district from which the funds are   withheld.          (e)  The agency's complaint management division shall   develop a system for expedited investigation and resolution of   complaints concerning a district's failure to provide special   education or related services to a student eligible to participate   in the district's special education program.          [(f)  This section does not create an obligation for or   impose a requirement on a school district or open-enrollment   charter school that is not also created or imposed under another   state law or a federal law.]          SECTION 10.  Effective September 1, 2024, Section 29.014(d),   Education Code, is amended to read as follows:          (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 11.  Section 29.018, Education Code, is amended by   adding Subsection (g) to read as follows:          (g)  This section expires September 1, 2026.          SECTION 12.  Sections 29.022(a), (a-1), (b), (c), (c-1),   (d), (f), (h), (k), (l), (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.          (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 13.  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 40 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 14.  Section 29.026(i), Education Code, is amended   to read as follows:          (i)  A program selected to receive a grant under this section   is [The commissioner shall select programs and award grant funds to   those programs beginning in the 2018-2019 school year. The   selected programs are] to be funded for two years.          SECTION 15.  Section 29.027(d), Education Code, is amended   to read as follows:          (d)  A grant under this section is [The commissioner shall   select grant recipients and award grant funds beginning in the   2021-2022 school year. The grants are] to be awarded for two years.          SECTION 16.  Subchapter A, Chapter 29, Education Code, is   amended by adding Section 29.029 to read as follows:          Sec. 29.029.  SUPPORTS FOR RECRUITING SPECIAL EDUCATION   STAFF. (a) From funds appropriated or otherwise available for the   purpose, the agency shall provide grants to school districts and   open-enrollment charter schools to increase the number of qualified   and appropriately credentialed special education staff, including   special education teachers, special education paraprofessionals,   evaluation personnel, ancillary instruction personnel, and related   service personnel.          (b)  A school district or open-enrollment charter school   that receives a grant under this section shall require each person   the district or school uses the grant money to assist in becoming   licensed, certified, or otherwise credentialed as described by   Subsection (a) to work at the district or school for a period   established by commissioner rule.          (c)  The commissioner shall adopt rules establishing the   period of required employment described by Subsection (b) and any   other rules necessary to implement this section.          SECTION 17.  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 18.  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 19.  Sections 29.042(a) and (c), Education Code, are   amended to read as follows:          (a)  The agency by rule shall establish and administer a   parent-directed [supplemental special education services and   instructional materials] program for students receiving special   education services, through which a parent may direct supplemental   services and supplemental instructional materials for the parent's   student [students] who meets [meet] the eligibility requirements   for participation in the program. Subject to Subsection (c), the   agency shall provide each student approved as provided by this   subchapter a grant in the amount provided under Section 48.305 [of   not more than $1,500] to purchase supplemental [special education]   services and supplemental [special education] instructional   materials.          (c)  A student may receive a grant under this subchapter once   while enrolled in a grade level below grade six and once while   enrolled in grade six or above. A student may receive an additional   grant under this subchapter if the legislature appropriates money   for the additional grant in the General Appropriations Act [The   commissioner shall set aside an amount not to exceed $30 million   from the total amount of funds appropriated 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].          SECTION 20.  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 21.  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 22.  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 23.  Subchapter A-1, Chapter 29, Education Code, is   amended by adding Section 29.0475 to read as follows:          Sec. 29.0475.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR   AUTONOMY. (a) A provider of supplemental services or vendor of   supplemental instructional materials that receives money   distributed under the program is not a recipient of federal   financial assistance on the basis of receiving that money.          (b)  A rule adopted or action taken related to the program by   an individual, governmental entity, court of law, or program   administrator may not:                (1)  consider the actions of a provider of supplemental   services, vendor of supplemental instructional materials, or   program participant to be the actions of an agent of state   government;                (2)  limit:                      (A)  a provider of supplemental services' ability   to determine the methods used to educate the provider's students or   to exercise the provider's religious or institutional values; or                      (B)  a program participant's ability to determine   the participant's educational content or to exercise the   participant's religious values;                (3)  obligate a provider of supplemental services or   program participant to act contrary to the provider's or   participant's religious or institutional values, as applicable;                (4)  impose any regulation on a provider of   supplemental services, vendor of supplemental instructional   materials, or program participant beyond those regulations   necessary to enforce the requirements of the program; or                (5)  require as a condition of receiving money   distributed under the program:                      (A)  a provider of supplemental services to modify   the provider's creed, practices, admissions policies, curriculum,   performance standards, employment policies, or assessments; or                      (B)  a program participant to modify the   participant's creed, practices, curriculum, performance standards,   or assessments.          (c)  In a proceeding challenging a rule adopted by a state   agency or officer under this subchapter, the agency or officer has   the burden of proof to establish by clear and convincing evidence   that the rule:                (1)  is necessary to implement or enforce the program   as provided by this subchapter;                (2)  does not violate this section;                (3)  does not impose an undue burden on a program   participant or a provider of supplemental services or vendor of   supplemental instructional materials that participates or applies   to participate in the program; and                (4)  is the least restrictive means of accomplishing   the purpose of the program while recognizing the independence of a   provider of supplemental services to meet the educational needs of   students in accordance with the provider's religious or   institutional values.          SECTION 24.  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 25.  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 26.  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 27.  Section 29.315, Education Code, is amended to   read as follows:          Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF   UNDERSTANDING. The Texas Education Agency and the Texas School for   the Deaf shall develop[, agree to, and by commissioner rule adopt no   later than September 1, 1998,] a memorandum of understanding to   establish:                (1)  the method for developing and reevaluating a set   of indicators of the quality of learning at the Texas School for the   Deaf;                (2)  the process for the agency to conduct and report on   an annual evaluation of the school's performance on the indicators;                (3)  the requirements for the school's board to   publish, discuss, and disseminate an annual report describing the   educational performance of the school;                (4)  the process for the agency to assign an   accreditation status to the school, to reevaluate the status on an   annual basis, and, if necessary, to conduct monitoring reviews; and                (5)  the type of information the school shall be   required to provide through the Public Education Information   Management System (PEIMS).          SECTION 28.  Section 29.316(c), Education Code, is amended   to read as follows:          (c)  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 percentage of the instructional day   [arrangement used with the child, as described by Section 48.102,   including the time] the child spends on average in a general   education setting [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.          SECTION 29.  Chapter 29, Education Code, is amended by   adding Subchapter J to read as follows:   SUBCHAPTER J.  EDUCATION SAVINGS ACCOUNT PROGRAM          Sec. 29.351.  DEFINITIONS. In this subchapter:                (1)  "Account" means an education savings account   established under the program.                (2)  "Child with a disability" means a child who is:                      (A)  eligible to participate in a school   district's special education program under Section 29.003; or                      (B)  covered by Section 504, Rehabilitation Act of   1973 (29 U.S.C. Section 794).                (3)  "Curriculum" means a complete course of study for   a particular content area or grade level.                (4)  "Financial institution" means a bank, credit   union, savings bank, or savings and loan association organized   under the laws of this state, the laws of another state, or federal   law that has its main office or a branch office in this state. The   term does not include any institution the deposits of which are not   insured by the Federal Deposit Insurance Corporation or the   National Credit Union Administration.                (5)  "Institution of higher education" and "private or   independent institution of higher education" have the meanings   assigned by Section 61.003.                (6)  "Parent" means a resident of this state who is a   natural or adoptive parent, managing or possessory conservator,   legal guardian, custodian, or other person with legal authority to   act on behalf of a child.                (7)  "Program" means the education savings account   program established under this subchapter.                (8)  "Program participant" means a child and a parent   of a child enrolled in the program.          Sec. 29.352.  PURPOSES.  The purposes of the education   savings account program are to:                (1)  improve public schools and overall academic   performance;                (2)  promote efficiency;                (3)  promote and preserve the liberties and rights of   the people; and                (4)  increase parental choice in learning   opportunities and supports.          Sec. 29.353.  ESTABLISHMENT OF PROGRAM. (a) The agency   shall establish and administer an education savings account program   to provide funding for certain education-related expenses of   eligible children.          (b)  The agency shall ensure that information about the   program is readily available to parents of children with   disabilities and the public through various sources, including the   agency's Internet website. The information made available to   parents of children with disabilities must include a notice that:                (1)  states that a private school is not subject to laws   regarding the provision of educational services in the same manner   as a public school, and a child with a disability attending a   private school may not receive the services a child with a   disability attending a public school is entitled to receive under   federal and state law;                (2)  provides information regarding rights to which a   child with a disability is entitled under federal and state law if   the child attends a public school, including:                      (A)  rights provided under the Individuals with   Disabilities Education Act (20 U.S.C. Section 1400 et seq.),   including:                            (i)  an individualized education program   that provides a free and appropriate public education;                            (ii)  educational services provided in the   least restrictive environment;                            (iii)  instruction from certified teachers;                            (iv)  dispute resolution options to ensure   proper and full implementation of an individualized education   program;                            (v)  transition and planning services; and                            (vi)  supplementary aids and services;                      (B)  rights provided under Subchapter A; and                      (C)  other rights provided under federal or state   law; and                (3)  provides information regarding the program,   including:                      (A)  the operation of an account;                      (B)  expenses allowed under Section 29.357 and the   consequences for using money in an account on expenses that are not   allowed under that section; and                      (C)  common service offerings.          Sec. 29.354.  ELIGIBLE CHILD. (a)  A child is eligible to   participate in the program if the child:                (1)  is a child with a disability;                (2)  is eligible to attend a public school under   Section 25.001; and                (3)  meets at least one of the following criteria:                      (A)  was enrolled in a public school in this state   during the entire preceding school year;                      (B)  was required to attend school under Section   25.085 for less than the entire preceding school year due to the   child's age or nonresidence in this state; or                      (C)  participated in the program during the   preceding school year.          (b)  A child who establishes eligibility under this section   may participate in the program until the earliest of the following   dates:                (1)  the date on which the child graduates from high   school;                (2)  the date on which the child is no longer eligible   to attend a public school under Section 25.001;                (3)  the date on which the child enrolls in a public   school, including an open-enrollment charter school; or                (4)  the date on which the child is declared ineligible   for the program by the commissioner under this subchapter.          (c)  Notwithstanding Subsection (b), the commissioner shall   establish a process for, in the least disruptive manner possible:                (1)  a child participating in the program to cease   participation and enroll in a public school, including an   open-enrollment charter school; and                (2)  a child who previously participated in the program   and subsequently enrolled in a public school, including an   open-enrollment charter school, to resume participation in the   program.          Sec. 29.355.  ENROLLMENT IN PROGRAM. (a)  A parent of an   eligible child may enroll the child in the program for the following   school year.          (b)  The commissioner shall by rule create an enrollment   application for the program and make the enrollment application   readily available to interested parents through various sources,   including the agency's Internet website. An enrollment application   for the program must be submitted to the commissioner   electronically.          (c)  The commissioner shall post on the agency's Internet   website and provide to each parent who submits an enrollment   application a publication that describes the operation of the   program, including:                (1)  expenses allowed under the program under Section   29.357;                (2)  expense reporting requirements; and                (3)  a description of the responsibilities of program   participants and the duties of the commissioner under this   subchapter.          (d)  The commissioner shall provide to each parent who   submits an enrollment application a written copy of the notice   described by Section 29.353(b).  Before the parent may receive   funding under the program, the parent must sign an acknowledgment   of receipt and understanding of the notice and return the signed   acknowledgment to the commissioner.          Sec. 29.356.  PARTICIPATION IN PROGRAM. (a)  To receive   funding under the program, a parent of an eligible child must agree   to:                (1)  spend funds received through the program only for   expenses allowed under Section 29.357;                (2)  notify the commissioner if the child enrolls in a   public school, including an open-enrollment charter school, not   later than the 30th day after the date of enrollment;                (3)  provide to the commissioner information necessary   to determine the child's eligibility and the amount to which the   child is entitled under the program;                (4)  ensure that the child's quality of learning is   appropriately measured in accordance with Subsection (d) and   commissioner rule and report the results to the agency; and                (5)  inform the commissioner if the child graduates   from high school.          (b)  The parent of a child participating in the program is   the trustee of the child's account.          (c)  The commissioner shall provide annually to each program   participant the publication provided under Section 29.355(c).          (d)  The commissioner shall adopt a list of approved   instruments that allow for a comparison between the quality of   educational attainment for a child participating in the program and   for students in other educational placements.  To the extent   practicable, the list must include nationally norm-referenced   assessments and assessment instruments adopted under Section   39.023. A child's performance on an instrument approved under this   subsection for measuring a child's quality of learning may not be   considered in determining the child's eligibility to participate in   the program.          Sec. 29.357.  APPROVED EDUCATION-RELATED EXPENSES.   (a)  Funds received under the program may be used only for the   following expenses incurred by a program participant:                (1)  tuition and fees:                      (A)  at a private school accredited by an entity   recognized by the commissioner as an accrediting entity for private   schools in this state;                      (B)  at an institution of higher education or a   private or independent institution of higher education;                      (C)  for an online educational course or program;   or                      (D)  for a program that provides training for an   industry-based certification;                (2)  the purchase of textbooks or other instructional   materials required by a school, institution, course, or program   described by Subdivision (1) in which the child is enrolled;                (3)  fees for classes or other educational services   provided by a public school, including an open-enrollment charter   school, if the classes or services do not qualify the child to be   included in the school's average daily attendance;                (4)  fees for services provided by a private tutor or   teaching service;                (5)  fees paid to a vendor for transportation to and   from school, not to exceed $500 per year;                (6)  fees for educational therapies or services   provided by a practitioner or provider;                (7)  costs of computer hardware and software and other   technological devices prescribed to facilitate a child's education   by a physician, therapist, or other licensed service provider;                (8)  fees for a nationally norm-referenced achievement   test or examination, an assessment instrument adopted under Section   39.023, an advanced placement test or similar examination, an   examination related to college or university admission, or any   other instrument included on the agency's list under Section   29.356(d);                (9)  fees for the management of the participant's   account charged by a financial institution;                (10)  costs of breakfast or lunch provided to a child   during the school day by a private school;                (11)  the purchase of school uniforms required by a   private school;                (12)  costs of a school-age program, as defined by   Section 42.002, Human Resources Code; and                (13)  costs of a youth camp licensed under Chapter 141,   Health and Safety Code, that provides educational services.          (b)  Expenses allowed under Subsection (a) do not include   expenses for:                (1)  consumable supplies, including paper, pens,   pencils, folders, and notebooks; or                (2)  food, other than breakfast or lunch as authorized   under Subsection (a)(10).          (c)  Any money remaining in a program participant's account   on the child's graduation from high school may be used by the child   for tuition, fees, textbooks, and other instructional materials to   attend or take courses from an institution of higher education or a   private or independent institution of higher education.          (d)  An education service provider or vendor of educational   products must provide a program participant with a receipt for each   expense allowed under Subsection (a) charged by the provider or   vendor to the participant.          (e)  The content, subject to Section 29.364(c), or religious   nature of a product or service may not be considered in determining   whether a payment for the product or service is an expense allowed   under Subsection (a).          (f)  A finding that a program participant used funds   distributed under the program to pay for an expense not allowed   under Subsection (a) does not affect the validity of any payment   made by the participant for an expense that is allowed under that   subsection.          Sec. 29.358.  AMOUNT OF PAYMENT; FINANCING. (a)  A parent   of an eligible child shall receive each year that the child   participates in the program a payment from the state to the child's   account in the amount provided under Section 48.306.          (b)  Money in an account may not be considered to be the   property of a program participant and may be spent only in   accordance with this subchapter.          (c)  Any funds remaining in a child's account at the end of a   fiscal year are carried forward to the next fiscal year unless   another provision of this subchapter mandates the closure of the   account.          (d)  The parent of a child participating in the program may   make payments for the expenses of educational programs, services,   and products not covered by funds in the child's account.          Sec. 29.359.  ADMINISTRATION OF ACCOUNTS. (a)  The   commissioner may contract with one or more financial institutions   or other entities that accept fiduciary responsibility to establish   and manage an account for each child participating in the program.   A program participant must be able to access the participant's   account by using an online or electronic transfer payment service.          (b)  The commissioner shall make quarterly payments to each   program participant's account in equal amounts, with the first   payment for each school year made on September 1 and the remaining   payments made on or before the 15th days of November, February, and   May.          (c)  After the end of each fiscal year, the commissioner   shall reconcile payments made to and from all accounts under the   program.          (d)  On the earlier of the child's 26th birthday or the sixth   anniversary of the child's graduation from high school, the child's   account is closed and any remaining funds are returned to the state.          (e)  The commissioner may contract with an entity to   administer all or any part of the program.          (f)  An entity responsible for managing accounts:                (1)  shall ensure that each expenditure from an account   is for an expense allowed under Section 29.357; and                (2)  may require a program participant to submit any   information necessary to make the determination described by   Subdivision (1).          Sec. 29.360.  RANDOM AUDITING OF ACCOUNTS. (a)  The   commissioner may randomly audit accounts as necessary to ensure   compliance with applicable law and the requirements of the program.     The commissioner may contract with another entity to audit accounts   under this section.          (b)  In auditing an account, the commissioner or an entity   contracted to audit accounts under this section may require that a   program participant provide further information and documentation   regarding any payment from the participant's account.          (c)  An entity contracted to audit accounts under this   section shall report to the commissioner any violation of this   subchapter or other relevant law found by the entity during an audit   conducted under this section.          Sec. 29.361.  SUSPENSION OF ACCOUNT. (a)  The commissioner   shall suspend the account of a program participant who fails to   comply with applicable law or a requirement of the program,   including a requirement under Section 29.356(a), or who   substantially misuses funds received under the program.          (b)  On suspension of an account under Subsection (a), the   commissioner shall notify the program participant in writing that   the account has been suspended and that no further payments may be   made from the account. The notification must specify the grounds   for the suspension and state that the participant has 10 business   days to respond and take any corrective action required by the   commissioner.          (c)  On the expiration of the 10-day period under Subsection   (b), the commissioner shall:                (1)  order permanent closure of the suspended account   and declare the program participant ineligible for the program;                (2)  order temporary reinstatement of the account,   conditioned on the performance of a specified action by the   participant; or                (3)  order full reinstatement of the account.          (d)  The commissioner may recover funds distributed under   the program that were used for expenses not allowed under Section   29.357(a) from the program participant or the entity that received   the funds if the participant's account is suspended or closed under   this section.          Sec. 29.362.  LIMITATION ON AMOUNTS CHARGED; REFUND   PROHIBITED. (a)  An education service provider may not:                (1)  charge a child participating in the program an   amount greater than the standard amount charged for that service by   the provider; or                (2)  increase the amount charged to a child   participating in the program for a service:                      (A)  if the total amount charged to the child for   that service by the provider during the preceding year was less than   two-thirds of the amount deposited in the child's account for that   year, to an amount that exceeds two-thirds of the amount deposited   in the child's account for the current year; or                      (B)  if the total amount charged to the child for   that service by the provider during the preceding year was   two-thirds or more of the amount deposited in the child's account   for that year, by more than five percent of the amount charged to   the child for that service by the provider during the preceding   year.          (b)  An education service provider or a vendor of educational   products receiving funds distributed under the program may not in   any manner rebate, refund, or credit to or share with a program   participant, or any person on behalf of a participant, any program   funds paid or owed by the participant to the provider or vendor.          Sec. 29.363.  REFERRAL TO ATTORNEY GENERAL. (a) If the   commissioner obtains evidence of fraudulent use of an account, the   commissioner may refer the case to the attorney general for   investigation.          (b)  With the consent of the appropriate local county or   district attorney, the attorney general has concurrent   jurisdiction with the consenting local prosecutor to prosecute an   offense referred to the attorney general under Subsection (a).          Sec. 29.364.  PROVIDER ACCOUNTABILITY. (a) To receive   funds distributed under the program, a private school must be   accredited by an entity recognized by the commissioner as an   accrediting entity for private schools in this state.          (b)  To receive funds distributed under the program, an   education service provider that provides a full course load to a   child participating in the program must administer to the child an   instrument included on the list adopted by the commissioner under   Section 29.356(d) and report the results to the agency.          (c)  A practitioner or provider who provides educational   therapies or services must be licensed or accredited by a regional   or national accrediting organization to receive funds distributed   under the program.          (d)  A private tutor, teaching service, online educational   course or program provider, or industry-based certification   training provider must apply to and be approved by the agency to   receive funds distributed under the program.          (e)  To be eligible for approval under Subsection (d), a   private tutor or each employee of a teaching service who intends to   provide educational services to a program participant must:                (1)  complete a national criminal history record   information review; or                (2)  provide to the agency documentation indicating   that the tutor or employee, as applicable, has completed a national   criminal history record information review within a period   established by commissioner rule.          (f)  The agency shall review the national criminal history   record information or documentation for each private tutor or   employee of a teaching service who submits an application under   Subsection (d). The tutor or employee must provide the agency with   any information requested by the agency to enable the agency to   complete the review.          (g)  The agency shall maintain and post on the agency's   Internet website a list of private tutors, teaching services,   online educational course or program providers, and industry-based   certification training providers approved to receive funds   distributed under the program.          (h)  A private tutor, teaching service, online educational   course or program provider, or industry-based certification   training provider may appeal the agency's rejection of an   application submitted under Subsection (d). The agency shall   review the application and make a recommendation to the   commissioner regarding whether to approve or reject the   application.  A decision of the commissioner under this section is   final and may not be appealed.          Sec. 29.365.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR   AUTONOMY. (a) An education service provider or vendor of   educational products that receives money distributed under the   program is not a recipient of federal financial assistance on the   basis of receiving that money.          (b)  A rule adopted or action taken related to the program by   an individual, governmental entity, court of law, or program   administrator may not:                (1)  consider the actions of an education service   provider, vendor of educational products, or program participant to   be the actions of an agent of state government;                (2)  limit:                      (A)  an education service provider's ability to   determine the methods used to educate the provider's students or to   exercise the provider's religious or institutional values; or                      (B)  a program participant's ability to determine   the participant's educational content or to exercise the   participant's religious values;                (3)  obligate an education service provider or program   participant to act contrary to the provider's or participant's   religious or institutional values, as applicable;                (4)  impose any regulation on an education service   provider, vendor of educational products, or program participant   beyond those regulations necessary to enforce the requirements of   the program; or                (5)  require as a condition of receiving money   distributed under the program:                      (A)  an education service provider to modify the   provider's creed, practices, admissions policies, curriculum,   performance standards, employment policies, or assessments; or                      (B)  a program participant to modify the   participant's creed, practices, curriculum, performance standards,   or assessments.          (c)  In a proceeding challenging a rule adopted by a state   agency or officer under this subchapter, the agency or officer has   the burden of proof to establish by clear and convincing evidence   that the rule:                (1)  is necessary to implement or enforce the program   as provided by this subchapter;                (2)  does not violate this section;                (3)  does not impose an undue burden on a program   participant or an education service provider or vendor of   educational products that participates or applies to participate in   the program; and                (4)  is the least restrictive means of accomplishing   the purpose of the program while recognizing the independence of an   education service provider to meet the educational needs of   students in accordance with the provider's religious or   institutional values.          Sec. 29.366.  STUDENT RECORDS AND INFORMATION. On request   by the parent of a child participating in the program, the school   district or open-enrollment charter school that the child would   otherwise attend shall provide a copy of the child's school records   possessed by the district or school, if any, to the child's parent   or, if applicable, the private school the child attends.          Sec. 29.367.  ANNUAL SURVEY. The commissioner may conduct   an annual parental satisfaction survey that asks each parent of a   child participating in the program to express:                (1)  the parent's overall level of satisfaction with   the program; and                (2)  the parent's opinion on specified topics and   issues relevant to the effectiveness of the program.          Sec. 29.368.  DETERMINATION OF COMMISSIONER FINAL.     Notwithstanding Section 7.057, a determination of the commissioner   regarding eligibility or the approval of expenses under this   subchapter is final and may not be appealed.          Sec. 29.369.  RULES. The commissioner shall:                (1)  adopt rules as necessary to implement this   subchapter, including:                      (A)  rules regarding eligibility determination,   expense reporting requirements for program participants, and   approval of expenses, including appeals of agency determinations on   those issues;                      (B)  rules for measuring the quality of learning   for a child participating in the program; and                      (C)  rules for implementing this subchapter in a   manner that ensures compliance with federal law regarding   confidentiality of student educational information, including the   Family Educational Rights and Privacy Act of 1974 (20 U.S.C.   Section 1232g); and                (2)  coordinate as necessary to:                      (A)  calculate annually the savings to the state   from the implementation of the program; and                      (B)  prevent fraud in financial transactions   under the program, including by adopting measures to permit   anonymous fraud reporting by telephone hotline or online   communication.          Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The   commissioner may solicit and accept gifts, grants, and donations   from any public or private source for any expenses related to the   administration of the program, including the initial   implementation of the program and making payments to a program   participant's account.          SECTION 30.  Section 30.001(b), Education Code, is amended   to read as follows:          (b)  The commissioner, with the approval of the State Board   of Education, shall develop and implement a plan for the   coordination of services to children with disabilities in each   region served by a regional education service center.  The plan   must include procedures for:                (1)  identifying existing public or private   educational and related services for children with disabilities in   each region;                (2)  identifying and referring children with   disabilities who cannot be appropriately served by the school   district in which they reside to other appropriate programs;                (3)  assisting school districts to individually or   cooperatively develop programs to identify and provide appropriate   services for children with disabilities;                (4)  expanding and coordinating services provided by   regional education service centers for children with disabilities;   and                (5)  providing for special education supports   [services], including special seats, books, instructional media,   and other supplemental supplies and services required for proper   instruction.          SECTION 31.  Section 30.002(g), Education Code, is amended   to read as follows:          (g)  To facilitate implementation of this section, the   commissioner shall develop a system to distribute from the   foundation school fund to school districts or regional education   service centers a special supplemental allowance for each student   with a visual impairment and for each student with a serious visual   disability and another medically diagnosed disability of a   significantly limiting nature who is receiving special education   services through any approved program.  The supplemental allowance   may be spent only for special education services uniquely required   by the nature of the student's disabilities and may not be used in   lieu of educational funds otherwise available under this code or   through state or local appropriations.          SECTION 32.  Section 30.005, Education Code, is amended to   read as follows:          Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY   IMPAIRED MEMORANDUM OF UNDERSTANDING.  The Texas Education Agency   and the Texas School for the Blind and Visually Impaired shall   develop[, agree to, and by commissioner rule adopt] a memorandum of   understanding to establish:                (1)  the method for developing and reevaluating a set   of indicators of the quality of learning at the Texas School for the   Blind and Visually Impaired;                (2)  the process for the agency to conduct and report on   an annual evaluation of the school's performance on the indicators;                (3)  the requirements for the school's board to   publish, discuss, and disseminate an annual report describing the   educational performance of the school;                (4)  the process for the agency to:                      (A)  assign an accreditation status to the school;                      (B)  reevaluate the status on an annual basis; and                      (C)  if necessary, conduct monitoring reviews;   and                (5)  the type of information the school shall be   required to provide through the Public Education Information   Management System (PEIMS).          SECTION 33.  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 45.019,   Code of Criminal Procedure:                (1)  be sworn to by a person who has personal knowledge   of the underlying facts giving rise to probable cause to believe   that an offense has been committed; and                (2)  be accompanied by a statement from a school   employee stating:                      (A)  whether the child is eligible for or receives   special education services under Subchapter A, Chapter 29; and                      (B)  the graduated sanctions, if required under   Section 37.144, that were imposed on the child before the complaint   was filed.          SECTION 34.  Effective September 1, 2024, 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 career and technology   education programs or in special education programs receiving   special education services in a setting [an instructional   arrangement] other than a general education setting [mainstream or   career and technology education programs], for which an additional   allotment is made under Subchapter C, a district is entitled to an   allotment equal to the lesser of $6,160 or the amount that results   from the following formula:   A = $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.          SECTION 35.  Effective September 1, 2024, Section 48.102,   Education Code, is amended to read as follows:          Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in   average daily attendance in a special education program under   Subchapter A, Chapter 29, [in a mainstream instructional   arrangement,] a school district is entitled to an annual allotment   equal to the basic allotment, or, if applicable, the sum of the   basic allotment and the allotment under Section 48.101 to which the   district is entitled, multiplied by a weight in an amount set by the   legislature in the General Appropriations Act for the highest tier   of intensity of service for which the student qualifies [1.15].          (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and   2025-2026 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.     This subsection expires September 1, 2026.  [For each full-time   equivalent student in average daily attendance in a special   education program under Subchapter A, Chapter 29, in an   instructional arrangement other than a mainstream instructional   arrangement, a district is entitled to an annual allotment equal to   the basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled, multiplied by a weight determined according   to instructional arrangement as follows:                [Homebound             5.0                [Hospital class             3.0                [Speech therapy             5.0                [Resource room             3.0                [Self-contained, mild and moderate, regular campus                3.0                [Self-contained, severe, regular campus                3.0                [Off home campus             2.7                [Nonpublic day school             1.7                [Vocational adjustment class             2.3]          (b)  The commissioner by rule shall define seven tiers of   intensity of service for use in determining funding under this   section.  The commissioner must include one tier specifically   addressing students receiving special education services in   residential placement [A special instructional arrangement for   students with disabilities residing in care and treatment   facilities, other than state schools, whose parents or guardians do   not reside in the district providing education services shall be   established by commissioner rule.  The funding weight for this   arrangement shall be 4.0 for those students who receive their   education service on a local school district campus.  A special   instructional arrangement for students with disabilities residing   in state schools shall be established by commissioner rule with a   funding weight of 2.8].          (c)  [For funding purposes, the number of contact hours   credited per day for each student in the off home campus   instructional arrangement may not exceed the contact hours credited   per day for the multidistrict class instructional arrangement in   the 1992-1993 school year.          [(d)  For funding purposes the contact hours credited per day   for each student in the resource room;  self-contained, mild and   moderate; and self-contained, severe, instructional arrangements   may not exceed the average of the statewide total contact hours   credited per day for those three instructional arrangements in the   1992-1993 school year.          [(e)  The commissioner by rule shall prescribe the   qualifications an instructional arrangement must meet in order to   be funded as a particular instructional arrangement under this   section.  In prescribing the qualifications that a mainstream   instructional arrangement must meet, the commissioner shall   establish requirements that students with disabilities and their   teachers receive the direct, indirect, and support services that   are necessary to enrich the regular classroom and enable student   success.          [(f)  In this section, "full-time equivalent student" means   30 hours of contact a week between a special education student and   special education program personnel.          [(g)]  The commissioner shall adopt rules and procedures   governing contracts for residential and day program placement of   [special education] students receiving special education   services.           (d)  [The legislature shall provide by appropriation for the   state's share of the costs of those placements.          [(h)]  At least 55 percent of the funds allocated under this   section must be used in the special education program under   Subchapter A, Chapter 29.          (e) [(i)]  The agency shall ensure [encourage] the placement   of students in special education programs, including students in   residential placement [instructional arrangements], in the least   restrictive environment appropriate for their educational needs.          (f) [(j)]  A school district that provides an extended year   program required by federal law for special education students who   may regress is entitled to receive funds in an amount equal to 75   percent, or a lesser percentage determined by the commissioner, of   the basic allotment, or, if applicable, the sum of the basic   allotment and the allotment under Section 48.101 to which the   district is entitled for each [full-time equivalent] student in   average daily attendance, multiplied by the amount designated for   the highest tier of intensity of service for which the student   qualifies [student's instructional arrangement] under this   section, for each day the program is provided divided by the number   of days in the minimum school year. The total amount of state   funding for extended year services under this section may not   exceed $10 million per year.  A school district may use funds   received under this section only in providing an extended year   program.          (g) [(k)]  From the total amount of funds appropriated for   special education under this section, the commissioner shall   withhold an amount specified in the General Appropriations Act, and   distribute that amount to school districts for programs under   Section 29.014.  The program established under that section is   required only in school districts in which the program is financed   by funds distributed under this subsection and any other funds   available for the program.  After deducting the amount withheld   under this subsection from the total amount appropriated for   special education, the commissioner shall reduce each district's   allotment proportionately and shall allocate funds to each district   accordingly.          (h)  Not later than December 1 of each even-numbered year,   the commissioner shall submit to the Legislative Budget Board, for   purposes of the allotment under this section, proposed weights for   the tiers of intensity of service for the next state fiscal   biennium.          SECTION 36.  Effective September 1, 2024, Subchapter C,   Chapter 48, Education Code, is amended by adding Section 48.1021 to   read as follows:          Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.   (a)  For each six-week period in which a student in a special   education program under Subchapter A, Chapter 29, receives eligible   special education services, a school district is entitled to an   allotment in an amount set by the legislature in the General   Appropriations Act for the service group for which the student is   eligible.          (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and   2025-2026 school years, the amount of an allotment under this   section shall be determined in accordance with Section 48.1023.     This subsection expires September 1, 2026.          (b)  The commissioner by rule shall establish four service   groups for use in determining funding under this section.  In   establishing the groups, the commissioner must consider the level   of services, equipment, and technology required to meet the needs   of students receiving special education services.          (c)  A school district is entitled to receive an allotment   under this section for each service group for which a student is   eligible.          (d)  A school district is entitled to the full amount of an   allotment under this section for a student receiving eligible   special education services during any part of a six-week period.          (e)  At least 55 percent of the funds allocated under this   section must be used for a special education program under   Subchapter A, Chapter 29.          (f)  Not later than December 1 of each even-numbered year,   the commissioner shall submit to the Legislative Budget Board, for   purposes of the allotment under this section, proposed amounts of   funding for the service groups for the next state fiscal biennium.          SECTION 37.  Subchapter C, Chapter 48, Education Code, is   amended by adding Sections 48.1022 and 48.1023 to read as follows:          Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL   EVALUATION. For each student for whom a school district conducts a   full individual and initial evaluation under Section 29.004 or 20   U.S.C. Section 1414(a)(1), the district is entitled to an allotment   of $500 or a greater amount provided by appropriation.          Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING.   (a)  For the 2024-2025 and 2025-2026 school years, the commissioner   may adjust weights or amounts provided under Section 48.102 or   48.1021 as necessary to ensure compliance with requirements   regarding maintenance of state financial support under 20 U.S.C.   Section 1412(a)(18) and maintenance of local financial support   under applicable federal law.          (b)  For the 2024-2025 and 2025-2026 school years, the   commissioner shall determine the formulas through which school   districts receive funding under Sections 48.102 and 48.1021.  In   determining the formulas, the commissioner may combine the methods   of funding under those sections with the method of funding provided   by Section 48.102, as it existed on January 1, 2023.          (c)  For the 2026-2027 school year, the commissioner may   adjust the weights or amounts set by the legislature in the General   Appropriations Act for purposes of Section 48.102 or 48.1021.     Before making an adjustment under this subsection, the commissioner   shall notify and must receive approval from the Legislative Budget   Board.          (d)  Notwithstanding any other provision of this section,   the sum of funding provided under Sections 48.102 and 48.1021 for   the 2024-2025 or for the 2025-2026 school year as adjusted under   this section may not exceed the sum of:                (1)  funding that would have been provided under   Section 48.102, as it existed on January 1, 2023; and                (2)  the amount set by the legislature in the General   Appropriations Act.          (e)  Each school district and open-enrollment charter school   shall report to the agency information necessary to implement this   section.          (f)  The agency shall provide technical assistance to school   districts and open-enrollment charter schools to ensure a   successful transition in funding formulas for special education.          (g)  This section expires September 1, 2028.          SECTION 38.  Section 48.103(c), Education Code, is amended   to read as follows:          (c)  A school district may receive funding for a student   under each provision of this section, [and] Section 48.102, and   Section 48.1021 for which [if] the student qualifies [satisfies the   requirements of both sections].          SECTION 39.  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 40.  Section 48.151(b)(2), Education Code, is   amended to read as follows:                (2)  "Eligible [special education] student receiving   special education services" means a student who is eligible for   special education services under Section 29.003 and who would be   unable to attend classes without special transportation services.          SECTION 41.  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   receiving special education services 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 receiving special education services. 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 42.  Subchapter D, Chapter 48, Education Code, is   amended by adding Section 48.159 to read as follows:          Sec. 48.159.  SPECIAL EDUCATION CERTIFICATION ALLOTMENT.   (a) For each classroom teacher or educational diagnostician   employed by a school district who, during the preceding year,   became certified under Subchapter B, Chapter 21, to teach special   education or as an educational diagnostician, as applicable, the   district is entitled to an allotment in the amount of the teacher's   or diagnostician's certification fee.          (b)  A school district shall use an allotment received under   this section to provide a stipend in the amount of the allotment to   the classroom teacher or educational diagnostician for whom the   district received the allotment. A stipend received by a classroom   teacher under this subsection is not considered in determining   whether the district is paying the teacher the minimum monthly   salary under Section 21.402.          SECTION 43.  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 44.  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 45.  Subchapter G, Chapter 48, Education Code, is   amended by adding Sections 48.304, 48.305, and 48.306 to read as   follows:          Sec. 48.304.  DAY PLACEMENT PROGRAM FUNDING. (a) For each   qualifying day placement program that a regional education service   center makes available in partnership with a school district,   open-enrollment charter school, or shared services arrangement,   the center is entitled to an allotment of:                (1)  $250,000 for the first year of the program's   operation; and                (2)  $150,000 for each year of the program's operation   after the first year.          (b)  A day placement program qualifies for purposes of   Subsection (a) if:                (1)  the program complies with commissioner rules   adopted under Section 48.102(c);                (2)  the program offers services to students who are   enrolled at any school district or open-enrollment charter school   in the county in which the program is offered, unless the   commissioner by rule waives or modifies the requirement under this   subdivision for the program to serve all students in a county; and                (3)  the agency has designated the program for service   in the county in which the program is offered and determined that,   at the time of designation, the program increases the availability   of day placement services in the county.          Sec. 48.305.  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 a grant under Subchapter A-1,   Chapter 29, once while enrolled in a grade level below grade six and   once while enrolled in grade six or above.  A student may receive an   additional grant under that subchapter if the legislature   appropriates money for the additional grant in the General   Appropriations Act.          (d)  A determination of the commissioner under this section   is final and may not be appealed.          Sec. 48.306.  EDUCATION SAVINGS ACCOUNT FUNDING. (a) A   person enrolled in the education savings account program   established under Subchapter J, Chapter 29, is entitled to a   deposit to the person's education savings account in an amount   equal to the sum of $7,250 and:                (1)  $1,500, if the child is educationally   disadvantaged;                (2)  $1,400, if the child is eligible to participate in   a school district's special education program under Section 29.003   but has not previously participated in such a program; and                (3)  if the child has previously participated in a   school district's special education program under Section 29.003,   the amount of funding for special education services the district   was entitled to receive for the child under Subchapters B and C,   Chapter 48, for the most recent school year in which the child   participated in the district's special education program.          (b)  The legislature shall include in the appropriations for   the Foundation School Program state aid sufficient for the agency   to make deposits to education savings accounts under Subchapter J,   Chapter 29, in the amount provided by this section.          (c)  A payment under Subsection (a) may not be financed using   federal funds or money appropriated from the permanent school fund   or the available school fund.          (d)  A determination of the commissioner under this section   is final and may not be appealed.          SECTION 46.  Section 411.0901, Government Code, is amended   by adding Subsection (a-1) to read as follows:          (a-1)  The Texas Education Agency is entitled to obtain   criminal history record information maintained by the department   about a person who is a private tutor or an employee of a teaching   service who intends to provide educational services to a child   participating in the program established under Subchapter J,   Chapter 29, Education Code, and is seeking approval to receive   funds distributed under that program.          SECTION 47.  The following provisions are repealed:                (1)  Section 29.002, Education Code;                (2)  Sections 29.026(n) and (o), Education Code;                (3)  Section 29.027(i), Education Code;                (4)  Section 29.050, Education Code; and                (5)  Section 825.4092(f), Government Code, as added by   Chapter 546 (S.B. 202), Acts of the 87th Legislature, Regular   Session, 2021.          SECTION 48.  The repeal by this Act of Section 825.4092(f),   Government Code, as added by Chapter 546 (S.B. 202), Acts of the   87th Legislature, Regular Session, 2021, applies beginning with the   2023-2024 school year.          SECTION 49.  Subchapter E, Chapter 22, Education Code, as   added by this Act, and Chapter 29, Education Code, as amended by   this Act, apply beginning with the 2023-2024 school year.          SECTION 50.  (a) Notwithstanding any other section of this   Act, in a state fiscal year, the Texas Education Agency is not   required to implement a provision found in another section of this   Act that is drafted as a mandatory provision imposing a duty on the   agency to take an action unless money is specifically appropriated   to the agency for that fiscal year to carry out that duty. The Texas   Education Agency may implement the provision in that fiscal year to   the extent other funding is available to the agency to do so.          (b)  If, as authorized by Subsection (a) of this section, the   Texas Education Agency does not implement the mandatory provision   in a state fiscal year, the agency, in its legislative budget   request for the next state fiscal biennium, shall certify that fact   to the Legislative Budget Board and include a written estimate of   the costs of implementing the provision in each year of that next   state fiscal biennium.          (c)  This section and the suspension of the Texas Education   Agency's duty to implement a mandatory provision of this Act, as   provided by Subsection (a) of this section, expires and the duty to   implement the mandatory provision resumes on September 1, 2027.          SECTION 51.  (a) Except as provided by Subsection (b) of   this section and as otherwise provided by this Act, 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 September 1,   2023.          (b)  The amendments by this Act to Chapter 48, Education   Code, except as otherwise provided by this Act, take effect   September 1, 2023.