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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 87(R)

House Bill 1525

House Author:  Huberty et al.

Effective:  See below

Senate Sponsor:  Taylor et al.


House Bill 1525 amends the Education Code and Government Code to revise aspects of the public school finance system and to provide for certain temporary funding allocations, among other provisions. Regarding the local share of funding, the bill revises the property value basis for calculating the maximum compressed tax rate, clarifies the 10 percent deviation rule, and requires the commissioner of education to reduce state aid or adjust the limit on a public school district's local revenue level to offset any revenue generated by a district's tax effort that does not comply with applicable law. The bill provides for the enforcement of the prohibition on levying a district maintenance tax at a rate intended to create a surplus for purposes of paying debt service. The bill excludes foundation school program (FSP) funding allocated to a district from the available school fund from being used to offset the district's recapture amount but permits the use of the district's other Tier 1 and Tier 2 funding for such an offset. The bill revises the basis on which certain consolidated districts are entitled to incentive aid.

House Bill 1525 makes the following revisions to specific FSP allotments and incentives:

·        reestablishes a gifted and talented student allotment;

·        revises the methods of calculating the career and technology education allotment and the fast growth allotment;

·        makes students who are homeless explicitly eligible for the compensatory education allotment and expands the authorized uses of allotment funds;

·        includes earning an associate degree within a certain period as a qualifying outcome for purposes of the college, career, or military readiness outcomes bonus;

·        regarding the teacher incentive allotment:

o   entitles the Texas School for the Deaf and the Texas School for the Blind and Visually Impaired to the allotment; and

o   classifies compensation funded by the allotment as salary and wages for purposes of the Teacher Retirement System of Texas, including for applicable persons who retired before the bill's effective date;

·        expands the authorized uses of the school safety allotment, removes authorization for a district to offset its entitlement to that allotment against recapture, and requires a related commissioner report;

·        revises eligibility for the additional days incentive;

·        limits a district‑specific average daily attendance adjustment granted after a calamity to one school year; and

·        effective June 16, 2021, includes costs associated with distance learning among the authorized uses of the instructional materials and technology allotment.

The bill caps the annual total distributed under the formula transition grant at $400 million.

House Bill 1525, effective June 16, 2021, sets out public transparency requirements relating to meetings of a local school health advisory council and requirements relating to the adoption of a human sexuality instruction curriculum.

House Bill 1525 establishes the Texas Commission on Special Education Funding to develop and make recommendations regarding methods of financing special education. The bill requires certain temporary adjustments to open‑enrollment charter school funding as necessary to comply with maintenance of support requirements under the federal Individuals with Disabilities Education Act. The bill extends the autism grant program and the dyslexia grant program to September 1, 2023, and revises components of both programs.

House Bill 1525 revises provisions relating to state funding for certain student tests. The bill requires additional PEIMS reporting relating to certain students who fail to attend school or are enrolled in certain educational programs after dropping out of school. Effective September 1, 2023, the bill sets out requirements relating to the protection of covered student information by a national assessment provider and by an applicable operator of a website, online service or application, or mobile application used for school purposes.

House Bill 1525 provides for the establishment of a tutoring program in which instruction is provided by members of a nonprofit teacher organization and other qualified persons. The bill postpones certain deadlines relating to required attendance at a teacher literacy achievement academy and entitles regional education service centers to certain state aid for staff salary increases. The bill entitles applicable district employees to the preservation of certain state‑funded salary increases, subject to certain exceptions.

House Bill 1525 provides for a one‑time reimbursement for costs associated with winter storm Uri and an adjustment to the financial accountability rating system to account for the impact of the COVID‑19 pandemic. The bill includes a temporary provision requiring a district to accept and spend certain private donations designated to fund supplemental education staff positions.

House Bill 1525 provides for the use and distribution of state discretionary funds under the federal Coronavirus Response and Relief Supplemental Appropriations Act for certain specified purposes. The bill includes temporary provisions requiring the commissioner to increase a district's or charter school's FSP entitlement as necessary to ensure compliance with federal maintenance of effort and equity requirements related to funding under that act.

Except as otherwise provided, the bill takes effect September 1, 2021.