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78R15146 ESH-D
By: Pitts H.B. No. 3459
Substitute the following for H.B. No. 3459:
By: Pitts C.S.H.B. No. 3459
A BILL TO BE ENTITLED
AN ACT
relating to fiscal matters involving certain governmental
educational entities, including program compliance monitoring by
the Texas Education Agency, funding for regional education service
centers, amounts withheld from compensatory education allotments,
the public school technology allotment, state aid for certain
courses taken in public schools, colleges, and universities, the
accounting for the permanent school fund, funding for the higher
education fund health insurance coverage provided by the Teacher
Retirement System of Texas, and the uses of the Telecommunications
Infrastructure Fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 7, Education Code, is
amended by adding Section 7.027 to read as follows:
Sec. 7.027. LIMITATION ON COMPLIANCE MONITORING. (a)
Except as provided by Section 29.001(5), 39.074, or 39.075, the
agency may monitor compliance with requirements applicable to a
process or program provided by a school district, campus, program,
or school granted charters under Chapter 12, including the process
described by Subchapter F, Chapter 11, or a program described by
Subchapter A, B, C, D, E, F, H, or I, Chapter 29, or Section 38.003,
and the use of funds provided for such a program under Subchapter C,
Chapter 42, only as necessary to ensure:
(1) compliance with federal law and regulations;
(2) financial accountability, including compliance
with grant requirements; and
(3) data integrity for purposes of:
(A) the Public Education Information Management
System (PEIMS); and
(B) accountability under Chapter 39.
(b) The board of trustees of a school district or the
governing body of an open-enrollment charter school has primary
responsibility for ensuring that the district or school complies
with all applicable requirements of state educational programs.
SECTION 2. Section 8.051(d), Education Code, is amended to
read as follows:
(d) Each regional education service center may [shall]
maintain core services for purchase by school districts and
campuses. The core services are:
(1) training and assistance in teaching each subject
area assessed under Section 39.023;
(2) training and assistance in providing each program
that qualifies for a funding allotment under Section 42.151,
42.152, 42.153, or 42.156;
(3) assistance specifically designed for a school
district rated academically unacceptable under Section 39.072(a)
or a campus whose performance is considered unacceptable based on
the indicators adopted under Section 39.051;
(4) training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5) assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6) assistance in complying with state laws and rules.
SECTION 3. Section 29.001, Education Code, is amended to
read as follows:
Sec. 29.001. STATEWIDE PLAN. The agency shall develop, and
modify as necessary, a statewide design, consistent with federal
law, 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. The statewide design shall include the provision of
services primarily through school districts and shared services
arrangements, supplemented by regional education service centers.
The agency shall also develop and implement a statewide plan with
programmatic content that includes procedures designed to:
(1) 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) facilitate interagency coordination when other
state agencies are involved in the delivery of instructional or
related services to students with disabilities;
(3) periodically assess statewide personnel needs in
all areas of specialization related to special education and pursue
strategies to meet 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) 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 monitor and
periodically conduct site visits of all school districts [to ensure
that rules adopted under this section are applied in a consistent
and uniform manner,] to ensure that districts are complying with
federal law and regulations and those state laws and rules
necessary to carry out federal and state law and regulations
relating to special education [,] and to ensure that annual
statistical reports filed by the districts and not otherwise
available through the Public Education Information Management
System under Section 42.006, are accurate and complete;
(6) ensure that 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;
(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;
(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;
(9) ensure that each student with a disability is
provided necessary related services; and
(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) and its subsequent amendments, is required
to:
(A) complete a training program that complies
with minimum standards established by agency rule;
(B) visit the child and the child's school;
(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;
(D) review the child's educational records;
(E) attend meetings of the child's admission,
review, and dismissal committee;
(F) exercise independent judgment in pursuing
the child's interests; and
(G) exercise the child's due process rights under
applicable state and federal law.
SECTION 4. Sections 29.010(a) and (c), Education Code, are
amended to read as follows:
(a) The agency shall adopt and implement a comprehensive
system for monitoring school district compliance with federal and
state law and regulations and state requirements necessary to carry
out federal laws and regulations relating to special education.
The monitoring system must 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 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.
(c) The agency shall develop and implement a system of
sanctions for school districts 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 law or regulations, or state [statutes, or
agency] requirements necessary to carry out federal law or
regulations [or state law] relating to special education.
SECTION 5. Sections 29.062(a) and (e), Education Code, are
amended to read as follows:
(a) The legislature recognizes that compliance with this
subchapter is an imperative public necessity. Therefore, in
accordance with the policy of the state, the agency shall evaluate
the effectiveness of programs under this subchapter based on the
results of assessment instruments, including those required under
Subchapter B, Chapter 39. The agency may combine evaluations under
this section with federal accountability measures concerning
students of limited English proficiency [monitor compliance with
state rules by inspecting each school district and open-enrollment
charter school on-site at least every three years].
(e) If a school district or open-enrollment charter school
fails to satisfy appropriate standards adopted by the commissioner
for purpose of Subsection (a) [or refuses to comply after proper
notification], the agency shall apply sanctions, which may include
the removal of accreditation, loss of foundation school funds, or
both.
SECTION 6. Section 31.021(b), Education Code, is amended to
read as follows:
(b) The State Board of Education shall annually set aside
out of the available school fund of the state an amount sufficient
for the board, school districts, and open-enrollment charter
schools to purchase and distribute the necessary textbooks for the
use of the students of this state for the following school year.
The board shall determine the amount of the available school fund to
set aside for the state textbook fund based on:
(1) a report by the commissioner issued on July 1 or,
if that date is a Saturday or Sunday, on the following Monday,
stating the amount of unobligated money in the fund;
(2) [a requirement to provide an allotment to be
distributed to each district equal to $30 per student in average
daily attendance, or a greater amount for any year provided by
appropriation, to be used only to:
[(A) provide for the purchase by school districts
of electronic textbooks or technological equipment that
contributes to student learning; and
[(B) pay for training educational personnel
directly involved in student learning in the appropriate use of
electronic textbooks and for providing for access to technological
equipment for instructional use;
[(3)] the commissioner's estimate, based on textbooks
selected under Section 31.101 and on attendance reports submitted
under Section 31.103 by school districts and open-enrollment
charter schools, of the amount of funds, in addition to funds
reported under Subdivision (1), that will be necessary for purchase
and distribution of textbooks for the following school year; and
(3) [(4)] any amount the board determines should be
set aside for emergency purposes caused by unexpected increases in
attendance.
SECTION 7. Section 31.103(b), Education Code, is amended to
read as follows:
(b) A requisition for textbooks for the following school
year shall be based on the maximum attendance reports under
Subsection (a), plus an additional 10 percent, except as otherwise
provided. A school district or open-enrollment charter school
shall make a requisition for a textbook on the conforming or
nonconforming list through the commissioner to the state depository
designated by the publisher or as provided by State Board of
Education rule, as applicable, not later than June 1 of each year.
The designated state depository or, if the publisher or
manufacturer does not have a designated textbook depository in this
state under Section 31.151(a)(6)(B), the publisher or manufacturer
shall fill a requisition approved by the agency at any other time in
the case of an emergency. As made necessary by available funds, the
commissioner shall reduce the additional percentage of attendance
for which a district or school may requisition textbooks. The
commissioner may, on application of a district or school that is
experiencing high enrollment growth, increase the additional
percentage of attendance for which the district or school may
requisition textbooks.
SECTION 8. Subchapter A, Chapter 32, Education Code, is
amended by adding Section 32.005 to read as follows:
Sec. 32.005. TECHNOLOGY ALLOTMENT. (a) Each school
district is entitled to an allotment of $35 for each student in
average daily attendance or a different amount for any year
provided by appropriation.
(b) An allotment under this section may be used only to:
(1) provide for the purchase by school districts of
electronic textbooks or technological equipment that contributes
to student learning; and
(2) pay for training educational personnel directly
involved in student learning in the appropriate use of electronic
textbooks and for providing for access to technological equipment
for instructional use.
(c) The allotment under this section may be paid from:
(1) the telecommunications infrastructure fund under
Subchapter C, Chapter 57, Utilities Code;
(2) the available school fund; or
(3) any other fund that may be used for that purpose
and that is identified in the General Appropriations Act as the
source of payment of the allotment.
SECTION 9. Section 39.023(e), Education Code, is amended to
read as follows:
(e) Under rules adopted by the State Board of Education,
every other year, the agency shall release the questions and answer
keys to each assessment instrument administered under Subsection
(a), (b), (c), (d), or (l) after the last time the instrument is
administered for that [a] school year. To ensure a valid bank of
questions for use each year, the agency is not required to release a
question that is being field-tested and was not used to compute the
student's score on the instrument. The agency shall also release,
under board rule, each question that is no longer being
field-tested and that was not used to compute a student's score.
SECTION 10. Section 39.031(a), Education Code, is amended
to read as follows:
(a) The cost of preparing, administering, or grading the
assessment instruments shall be paid from foundation school fund
allotments other than [the] funds allotted under Section 42.152,
and each district shall bear the cost in the same manner described
for a reduction in allotments under Section 42.253. [If a district
does not receive an allotment under Section 42.152, the
commissioner shall subtract the cost from the district's other
foundation school fund allotments.]
SECTION 11. Section 41.002(a), Education Code, is amended
to read as follows:
(a) A school district may not have a wealth per student that
exceeds $305,000 or a different amount as provided by
appropriation.
SECTION 12. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC ALLOTMENT. For each student in average
daily attendance, not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C, a
district is entitled to an allotment of $2,537. A different
[greater] amount for any school year may be provided by
appropriation.
SECTION 13. Section 42.152, Education Code, is amended by
amending Subsections (i)-(l), (n), and (p) and adding Subsection
(u) to read as follows:
(i) From the total amount of funds appropriated for
allotments under this section, the commissioner may [shall], each
fiscal year, withhold an [$7,500,000 or a greater] amount as
determined in the General Appropriations Act and distribute that
amount for programs under Subchapter A, Chapter 33. A program
established under that subchapter is required only in school
districts in which the program is financed by funds distributed
under this subsection [section] or other funds distributed by the
commissioner for a program under that subchapter. In distributing
those funds, preference shall be given to a school district that
received funds for a program under this subsection for the
preceding school year.
(j) The commissioner shall coordinate any [the] funds
withheld under Subsection (i) and any other funds available for the
program and [shall] distribute those funds. To receive available
funds for the program, a school district must apply to the
commissioner. In distributing any funds under this subsection,
the [The] commissioner shall give a preference to the districts
that apply that have the highest concentration of at-risk students.
For each school year that a school district receives funds under
this subsection [section], the district shall allocate an amount of
local funds for school guidance and counseling programs that is
equal to or greater than the amount of local funds that the school
district allocated for that purpose during the preceding school
year.
(k) After deducting any [the] amount withheld under
Subsection (i) from the total amount appropriated for the allotment
under Subsection (a), the commissioner shall reduce each district's
tier one allotments in the same manner described for a reduction in
allotments under Section 42.253.
(l) From the total amount of funds appropriated for
allotments under this section, the commissioner may [shall], each
fiscal year, withhold an [the] amount not more than [of] $2.5
million for transfer to the investment capital fund under Section
7.024.
(n) After deducting any [the] amount withheld under
Subsection (l) from the total amount appropriated for the allotment
under Subsection (a), the commissioner shall reduce each district's
allotment under Subsection (a) proportionately and shall allocate
funds to each district accordingly.
(p) The commissioner may [shall:
[(1)] withhold, from the total amount of funds
appropriated for allotments under this section, an amount not to
exceed five percent of the amounts allocated under this section and
distribute that amount for [sufficient to finance] extended year
programs under Section 29.082. In distributing any funds under
this subsection, the commissioner shall [not to exceed five percent
of the amounts allocated under this section; and
[(2)] give priority to applications for extended year
programs to districts with high concentrations of educationally
disadvantaged students.
(u) Notwithstanding the allotments and reductions
identified above, the legislature may in the General Appropriations
Act reduce the total amount of funding for the compensatory
education allotment. After deducting the amount of reduction under
this subsection from the total amount computed for the allotment
under Subsection (a), the commissioner shall:
(1) reduce each district's tier one allotments in the
same manner described for a reduction in allotments under Section
42.253; and
(2) allocate funds to each district accordingly.
SECTION 14. Section 42.154(a), Education Code, is amended
to read as follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades nine through 12 or in career and technology education
programs for students with disabilities in grades seven through 12,
a district is entitled to an annual allotment equal to the adjusted
basic allotment multiplied by a weight of 1.35 [1.37].
SECTION 15. Section 42.253(b), Education Code, is amended
to read as follows:
(b) Except as provided by this subsection, the commissioner
shall base the determinations under Subsection (a) on the estimates
provided to the legislature under Section 42.254, or, if the
General Appropriations Act provides estimates for that purpose, on
the estimates provided under that Act, for each school district for
each school year. The commissioner shall reduce the entitlement of
each district that has a final taxable value of property for the
second year of a state fiscal biennium that is higher than the
estimate under Section 42.254 or the General Appropriations Act, as
applicable. A reduction under this subsection may not reduce the
district's entitlement below the amount to which it is entitled at
its actual taxable value of property. [The sum of the reductions
under this subsection may not be greater than the amount necessary
to fully fund the entitlement of each district.]
SECTION 16. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2532 to read as follows:
Sec. 42.2532. REDUCTION IN AID FOR COST OF COURSES TAKEN BY
CERTAIN STUDENTS AND REMEDIAL COLLEGE COURSES. (a) The
commissioner shall reduce a district's tier one allotments by the
proportion specified in the General Appropriations Act for the cost
of:
(1) a course a student is repeating because of the
student's failure to meet the minimum attendance requirements for
receiving class credit under Section 25.092, unless:
(A) the student has first attempted and failed to
receive credit by examination for the class under Section 28.023;
or
(B) the class is required for the student's high
school graduation and credit by examination is not available for
that class;
(2) a course a student is repeating after previously
receiving credit for the class; or
(3) a developmental course or program in English
language arts or mathematics at an institution of higher education,
as defined by Section 61.003, that a student who graduated from high
school in the district within the preceding two years is required to
take under Section 51.306.
(b) Subsections (a)(1) and (2) do not apply to a student who
is enrolled in a special education program to the extent that this
section conflicts with the student's individualized education
program developed under Section 29.005.
(c) For purposes of Subsection (a)(2), the cost to an
institution of higher education of a developmental course or
program does not include the amount of tuition and fees the student
pays for the course.
(d) As soon as practicable after each term or semester, each
institution of higher education shall notify the commissioner of
higher education of costs to the institution of developmental
courses and programs. The commissioner of higher education shall
notify the commissioner of education of the amount owed by each
school district that is subject to a reduction in funding under
Subsection (a)(2). For each student, the notice must identify:
(1) the student;
(2) the institution of higher education;
(3) each remedial course or program provided to the
student;
(4) the school district from which the student
graduated high school; and
(5) the amount claimed for the student.
(e) If a school district does receive a tier one allotment,
the district shall remit to the comptroller for deposit in the
foundation school fund an amount equal to the amount that would be
deducted.
(f) If a school district does not comply with Subsection (e)
before the 30th day after the date on which the commissioner
notifies the district of the required remittance, the commissioner
shall detach property from the school district and annex it to
another school district in the manner provided by Subchapter G,
Chapter 41. The taxable value of property detached under this
subsection may not exceed the value necessary to provide a
reduction in state aid under this chapter to the district to which
the property is annexed in an amount equal to the amount of costs of
developmental courses and programs the district did not remit.
This subsection applies to a school district that is not otherwise
required to take action under Chapter 41.
(g) The commissioner of higher education in consultation
with the commissioner of education shall adopt rules necessary for
determining the costs to institutions of higher education of
developmental courses and programs.
SECTION 17. Section 42.259, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) Notwithstanding Subsections (c)(8) and (d)(3), the
payment from the foundation school fund to a category 2 school
district or category 3 school district for August 2005 shall be made
after September 5, 2005, but not later than September 10, 2005.
This subsection expires September 15, 2005.
SECTION 18. Section 42.302(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is $27.14
or a different [greater] amount for any year provided by
appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
SECTION 19. Section 43.001(b), Education Code, is amended
to read as follows:
(b) The available school fund, which shall be apportioned
annually to each county according to its scholastic population,
consists of:
(1) the interest and dividends arising from any
securities or funds belonging to the permanent school fund, as
determined in accordance with the accrual basis of accounting;
(2) all interest derivable from the proceeds of the
sale of land set apart for the permanent school fund;
(3) all money derived from the lease of land belonging
to the permanent school fund;
(4) one-fourth of all revenue derived from all state
occupation taxes, exclusive of delinquencies and cost of
collection;
(5) one-fourth of revenue derived from state gasoline
and special fuels excise taxes as provided by law; and
(6) all other appropriations to the available school
fund made by the legislature for public school purposes.
SECTION 20. Chapter 43, Education Code, is amended by
adding Section 43.020 to read as follows:
Sec. 43.020. TREATMENT OF ACCRUED INCOME. All interest and
dividends accruing from the investments of the permanent school
fund shall be deposited to the credit of the available school fund
in accordance with the accrual basis of accounting. Funds
recognized under this section are considered part of the available
school fund and may be appropriated as provided by Section 5,
Article VII, Texas Constitution.
SECTION 21. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
2002-2003 [2000-2001] school year or taxes levied to pay the
principal of and interest on the bonds were included in the
district's audited debt service collections for that school year;
and
(2) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
SECTION 22. Section 46.034(c), Education Code, is amended
to read as follows:
(c) If the amount required to pay the principal of and
interest on eligible bonds in a school year is less than the amount
of payments made by the district on the bonds during the 2002-2003
[2000-2001] school year or the district's audited debt service
collections for that school year, the district may not receive aid
in excess of the amount that, when added to the district's local
revenue for the school year, equals the amount required to pay the
principal of and interest on the bonds.
SECTION 23. Section 62.025, Education Code, is amended by
amending Subsection (a) and adding Subsections (g) and (h) to read
as follows:
(a) Except as provided by Subsection (g), not [Not] later
than November 1 of each state fiscal year, the comptroller shall
deposit the first $50 million that comes to the state at the
beginning of each state fiscal year and that is not dedicated by
other law as follows:
(1) except as provided by Subsections (d) and (e), an
amount equal to the portion of the total return on all investment
assets of the higher education fund in the preceding state fiscal
year computed by multiplying that total return by the percentage of
the total return on all investment assets of the permanent fund for
tobacco education and enforcement that constitutes available
earnings as determined by the comptroller under Section 403.1068,
Government Code, in that year must be deposited to the credit of the
Texas excellence fund established under Subchapter C; and
(2) the remaining amount must be deposited to the
credit of the higher education fund.
(g) The comptroller may not make the deposit required by
Subsection (a)(2) in a fiscal year if:
(1) as of October 1 of that year, the comptroller
estimates that the anticipated state revenue for the following
biennium is less than the estimated revenue for the current
biennium; or
(2) the legislature determines in the General
Appropriations Act that the deposit should not be made because of
the state's fiscal condition.
(h) The comptroller shall make the deposit required by
Subsection (a)(1) to the Texas excellence fund not later than
November 1 of each fiscal year even if a deposit is not made to the
higher education fund under Subsection (a)(2).
SECTION 24. Subchapter I, Chapter 88, Education Code, is
amended by adding Sections 88.703 and 88.704 to read as follows:
Sec. 88.703. SUNSET PROVISION. The Texas Veterinary
Medical Diagnostic Laboratory is subject to Chapter 325, Government
Code (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the laboratory is abolished and this subchapter
expires September 1, 2007.
Sec. 88.704. FEES. The Texas Veterinary Medical Diagnostic
Laboratory may charge and collect fees for goods and services the
laboratory provides to any person, including a governmental entity.
SECTION 25. Section 264.756(a), Family Code, is amended to
read as follows:
(a) The department shall develop and implement an equitable
formula for the funding of local Communities In Schools programs.
[The formula may provide for the reduction of funds annually
contributed by the state to a local program by an amount not more
than 50 percent of the amount contributed by the state for the first
year of the program.] The formula must consider the financial
resources of individual communities and school districts. [Savings
accomplished through the implementation of the formula may be used
to extend services to counties and municipalities currently not
served by a local program or to extend services to counties and
municipalities currently served by an existing local program.]
SECTION 26. Effective September 1, 2003, Section
1575.203(a), Insurance Code, as effective June 1, 2003, is amended
to read as follows:
(a) Each state fiscal year, each active employee shall, as a
condition of employment, contribute to the fund an amount equal to
0.5 [0.25] percent of the employee's salary.
SECTION 27. Effective September 1, 2004, Section
1575.203(a), Insurance Code, as effective June 1, 2003, is amended
to read as follows:
(a) Each state fiscal year, each active employee shall, as a
condition of employment, contribute to the fund an amount equal to
0.75 [0.25] percent of the employee's salary.
SECTION 28. Subchapter E, Chapter 1575, Insurance Code, as
effective June 1, 2003, is amended by adding Section 1575.2041 to
read as follows:
Sec. 1575.2041. SCHOOL DISTRICT CONTRIBUTION. Each state
fiscal year, a school district may contribute to the fund the amount
specified by the General Appropriations Act for each active
employee employed by the district.
SECTION 29. Section 1601.104(c), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(c) Automatic coverage as described under this section
begins on the 90th day after the employee's first date of
employment.
SECTION 30. Subchapter E, Chapter 1601, Insurance Code, as
effective June 1, 2003, is amended by adding Section 1601.2071 to
read as follows:
Sec. 1601.2071. NEW EMPLOYEE WAITING PERIOD. A system may
not contribute an amount to the cost of coverage under this chapter
to an employee before the 90th day after the employee's first date
of employment.
SECTION 31. Article 3.50-7, Insurance Code, is amended by
adding Section 7A to read as follows:
Sec. 7A. WAITING PERIOD. An employee is not eligible for
coverage under the program until the 90th day after the date the
employee is employed by a participating entity.
SECTION 32. Section 2, Article 3.50-8, Insurance Code, is
amended by amending Subsections (a) and (c) and adding Subsection
(e) to read as follows:
(a) Each year, the trustee shall deliver to each school
district, including a school district that is ineligible for state
aid under Chapter 42, Education Code, each other educational
district that is a member of the Teacher Retirement System of Texas,
each participating charter school, and each regional education
service center state funds in an amount, as determined by the
trustee, equal to:
(1) the product of the number of active full-time
professional employees, other than administrative professional
employees, employed by the district, school, or service center
multiplied by $550 [$1,000] or a greater amount as provided by the
General Appropriations Act for purposes of this article;
(2) the product of the number of active full-time
educational support employees employed by the district, school, or
service center multiplied by $300 or a greater amount as provided by
the General Appropriations Act for purposes of this article; and
(3) the product of the number of active part-time
employees employed by the district, school, or service center
multiplied by $200 or a greater amount as provided by the General
Appropriations Act for purposes of this article.
(c) The trustee shall distribute funds under this article in
equal monthly installments. The monthly installments are payable
during the first week of the month following the month in which the
active employees were employed. The trustee is entitled to recover
from a school district, other educational district, participating
charter school, or regional education service center any amount
distributed under this article to which the district, school, or
service center was not entitled.
(e) In this section:
(1) "Full-time active employee" and "part-time active
employee" have the meanings assigned by trustee rules.
(2) "Professional employee" means a teacher, nurse,
counselor, librarian, or other employee required to be certified or
licensed as described by Section 21.003, Education Code.
SECTION 33. Article 3.50-8, Insurance Code, is amended by
adding Section 2A to read as follows:
Sec. 2A. WAITING PERIOD. An employee is not eligible for
health coverage or compensation supplementation under this article
until the 90th day after the date the employee is employed by a
school district, other educational district, participating charter
school, or regional education service center.
SECTION 34. Section 57.046, Utilities Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The board shall use money in the public schools account
to:
(1) to the extent directed in the General
Appropriations Act, fund the technology allotment under Section
32.005, Education Code; and
(2) award grants and loans in accordance with this
subchapter to fund:
(A) [(1)] equipment for public schools,
including computers, printers, computer labs, and video equipment;
and
(B) [(2)] intracampus and intercampus wiring to
enable those public schools to use the equipment.
(c) Section 57.047(d) does not apply to the use of money in
the public schools account for the purpose specified by Subsection
(a)(1).
SECTION 35. (a) Sections 8.051(a) and 8.121, Education
Code, are repealed.
(b) Section 1575.204, Insurance Code, as effective June 1,
2003, is repealed.
SECTION 36. Effective September 1, 2003, the comptroller of
public accounts shall transfer $42 million from the Texas school
employees uniform group coverage trust fund established under
Section 8, Article 3.50-7, Insurance Code, to the retired school
employees group insurance fund described by Subchapter G, Chapter
1575, Insurance Code, as effective June 1, 2003, to compensate the
retired school employees group insurance fund for money transferred
from that fund under Section 4.01, Chapter 1187, Acts of the 77th
Legislature, Regular Session, 2001.
SECTION 37. The change in law made by this Act to Section 2,
Article 3.50-8, Insurance Code, applies to a monthly installment to
be paid on or after September 1, 2003.
SECTION 38. 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, 2003.