By: Grusendorf H.B. No. 71
A BILL TO BE ENTITLED
AN ACT
relating to public education and public school finance matters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
PART A. EDUCATION FUNDING
SECTION 1A.01. Subtitle I, Title 2, Education Code, is
amended by adding Chapter 42 to read as follows:
CHAPTER 42. FOUNDATION SCHOOL PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 42.001. STATE POLICY. (a) It is the policy of this
state that the provision of public education is a state
responsibility and that a thorough and efficient system be provided
and substantially financed through state revenue sources so that
each student enrolled in the public school system shall have access
to programs and services that are appropriate to the student's
educational needs and that are substantially equal to those
available to any similar student, notwithstanding varying local
economic factors.
(b) The public school finance system of this state shall
adhere to a standard of neutrality that provides for substantially
equal access to similar revenue per student at similar tax effort,
considering all state and local revenues of districts after
acknowledging all legitimate student and district cost
differences.
Sec. 42.002. PURPOSES OF FOUNDATION SCHOOL PROGRAM. (a)
The purposes of the Foundation School Program set forth in this
chapter are to guarantee that each school district in the state has:
(1) adequate resources to provide each eligible
student an accredited instructional program and facilities
suitable to the student's educational needs; and
(2) access to substantially equalized financing for an
enriched program.
(b) The Foundation School Program consists of:
(1) two tiers that in combination provide for:
(A) sufficient financing for all school
districts to provide an accredited program of education that is
rated academically acceptable or higher under Section 39.072 and
meets other applicable legal standards; and
(B) substantially equal access to funds to
provide an enriched program; and
(2) a facilities component as provided by Chapter 46.
Sec. 42.003. STUDENT ELIGIBILITY. (a) A student is
entitled to the benefits of the Foundation School Program if the
student is five years of age or older and under 21 years of age on
September 1 of the school year and has not graduated from high
school.
(b) A student to whom Subsection (a) does not apply is
entitled to the benefits of the Foundation School Program if the
student is enrolled in a prekindergarten class under Section
29.153.
(c) A child may be enrolled in the first grade if the child
is at least six years of age at the beginning of the school year of
the district or has been enrolled in the first grade or has
completed kindergarten in the public schools in another state
before transferring to a public school in this state.
(d) Notwithstanding Subsection (a), a student younger than
five years of age is entitled to the benefits of the Foundation
School Program if:
(1) the student performs satisfactorily on the
assessment instrument administered under Section 39.023(a) to
students in the third grade; and
(2) the district has adopted a policy for admitting
students younger than five years of age.
Sec. 42.004. ADMINISTRATION OF PROGRAM. (a) The
commissioner shall take such action and require such reports
consistent with this chapter as may be necessary to implement and
administer the Foundation School Program.
(b) The commissioner may adopt rules necessary to implement
and administer the Foundation School Program.
Sec. 42.005. AVERAGE DAILY ATTENDANCE. (a) In this
chapter, average daily attendance is:
(1) the quotient of the sum of attendance for each day
of the minimum number of days of instruction as described under
Section 25.081(a) divided by the minimum number of days of
instruction; or
(2) for a district that operates under a flexible year
program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1).
(b) A school district that experiences a decline of more
than two percent in average daily attendance shall be funded on the
basis of an average daily attendance equal to 98 percent of the
actual average daily attendance of the preceding school year.
(c) The commissioner shall adjust the average daily
attendance of a school district that has a significant percentage
of students who are migratory children as defined by 20 U.S.C.
Section 6399.
(d) The commissioner may adjust the average daily
attendance of a school district in which a disaster, flood, extreme
weather condition, fuel curtailment, or other calamity has a
significant effect on the district's attendance.
(e) An open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b).
Sec. 42.006. EQUALIZED FUNDING ELEMENTS. (a) The
Legislative Budget Board shall adopt rules, subject to appropriate
notice and opportunity for public comment, for the calculation for
each year of a biennium of the equalized funding elements, in
accordance with Subsection (c), necessary to achieve the state
policy under Section 42.001.
(b) Before each regular session of the legislature, the
board shall report the equalized funding elements to the
commissioner and the legislature.
(c) The funding elements must include:
(1) accreditation allotment amounts for the purposes
of Section 42.101 that represent the cost per student of a regular
education program that meets all mandates of law and regulation;
(2) adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts;
(3) appropriate program cost differentials and other
funding elements for the programs authorized under Subchapter C,
with the program funding level expressed as total dollar amounts
for each program and the specific dollar amount to be provided for
each eligible student or course for the appropriate year;
(4) the tax rate to be used in determining a school
district's local share under Section 42.306(a);
(5) the maximum district enrichment tax rate for
purposes of Section 42.252; and
(6) the amount to be appropriated for the school
facilities assistance program under Chapter 46.
(d) The board shall conduct a study of the funding elements
each biennium, as appropriate. The study must include a
determination of the projected cost to the state in the next state
fiscal biennium of ensuring the ability of each school district to
comply with all legal mandates and regulations without increasing
district tax rates.
(e) Notwithstanding Subsection (d), the board shall
contract for a comprehensive study of the funding elements. The
board shall report the results of the study to the commissioner and
the legislature not later than December 1, 2008. This subsection
expires January 1, 2009.
[Sections 42.007-42.100 reserved for expansion]
SUBCHAPTER B. BASIC PROGRAM
Sec. 42.101. ACCREDITATION ALLOTMENT AND SPECIAL STUDENT
ALLOTMENTS. (a) For each student in average daily attendance, not
including the time a student spends each day in special education
programs in an instructional arrangement other than mainstream, a
school district is entitled to an accreditation allotment of:
(1) $4,550, if the student is enrolled below the ninth
grade level; or
(2) $5,550, if the student is enrolled at or above the
ninth grade level.
(b) An accreditation allotment in a greater amount for any
school year may be provided by appropriation.
(c) In addition to the accreditation allotment, a school
district is entitled to special student allotments in the manner
specified under Subchapter C.
[Sections 42.102-42.150 reserved for expansion]
SUBCHAPTER C. SPECIAL STUDENT ALLOTMENTS
Sec. 42.151. SPECIAL EDUCATION ALLOTMENTS. (a) In this
section:
(1) "Full-time equivalent student" means 30 hours of
contact a week between a student and special education program
personnel.
(2) "Special education program" means a program under
Subchapter A, Chapter 29.
(b) For each student in average daily attendance in a
special education program in a mainstream instructional
arrangement, a school district is entitled, in addition to the
accreditation allotment under Section 42.101, to an annual
allotment of $254.
(c) For each full-time equivalent student in average daily
attendance in a special education program in an instructional
arrangement other than a mainstream instructional arrangement, a
school district is entitled to an annual allotment in the following
amount, based on the student's instructional arrangement:
(1) $12,685, for a student in a homebound
instructional arrangement;
(2) $7,611, for a student in a hospital class
instructional arrangement;
(3) $12,685, for a student in a speech therapy
instructional arrangement;
(4) $7,611, for a student in a resource room
instructional arrangement;
(5) $7,611, for a student in a self-contained, mild
and moderate, regular campus instructional arrangement;
(6) $7,611, for a student in a self-contained, severe,
regular campus instructional arrangement;
(7) $6,850, for a student in an off-home-campus
instructional arrangement;
(8) $4,313, for a student in a nonpublic day school;
(9) $5,835, for a student in a vocational adjustment
class;
(10) $10,148, for a student who resides in a
residential care and treatment facility, other than a state school,
whose parent or guardian does not reside in the district, and who
receives educational services from a local school district; and
(11) $7,104, for a student who resides in a state
school.
(d) For funding purposes, the number of contact hours
credited per day for each special education 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.
(e) For funding purposes, the contact hours credited per day
for each special education student in the resource room;
self-contained, mild and moderate, regular campus; and
self-contained, severe, regular campus 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.
(f) The State Board of Education by rule shall prescribe the
qualifications a special education instructional arrangement must
meet in order to be funded as a particular instructional
arrangement under this chapter. In prescribing the qualifications
that a mainstream instructional arrangement must meet, the board
shall require 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.
(g) The State Board of Education shall adopt rules and
procedures governing contracts for residential placement of
special education students. The legislature shall provide by
appropriation for the state's share of the costs of those
placements.
(h) Funds allocated under this section, other than an
indirect cost allotment established under State Board of Education
rule, must be used in the special education program under
Subchapter A, Chapter 29.
(i) The agency shall encourage the placement of students in
special education programs, including students in residential
instructional arrangements, in the least restrictive environment
appropriate for students' educational needs.
(j) Each year, the agency shall make and disseminate to each
school district a list of those districts that maintain for two
successive years a ratio of full-time equivalent special education
students placed in partially or totally self-contained classrooms
to the number of full-time equivalent students placed in resource
room or mainstream instructional arrangements that is 25 percent
higher than the statewide average ratio.
(k) A school district that provides an extended year program
required by federal law for special education students who may
regress is entitled to receive, for each full-time equivalent
student in average daily attendance, funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the sum of the accreditation allotment and the additional allotment
for the 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 subsection may not exceed $10
million per year. A school district may use funds received under
this subsection only in providing an extended year program.
(l) From the total amount of funds appropriated for special
education under this chapter, 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
allocation proportionately.
Sec. 42.152. ACCELERATED PROGRAMS ALLOTMENT. (a) A school
district is entitled to an annual allotment for the costs of
providing accelerated programs in an amount determined by the
formula:
APA = 665 X ADA X PR
where:
"APA" is the amount of the district's allotment;
"ADA" is the district's total number of students in average
daily attendance; and
"PR" is the percentage of the district's total number of
students enrolled in prekindergarten through grade level eight who
participate in the national free or reduced-price lunch program as
reported through the Public Education Information Management
System (PEIMS) for the current school year or the percentage
determined in accordance with commissioner rule if no campus in the
district with students enrolled in prekindergarten through grade
level eight participates in the national free or reduced-price
lunch program.
(b) The legislature may provide by appropriation for a
greater allotment than the amount prescribed by Subsection (a).
(c) In addition to the allotment provided by Subsection (a),
the legislature may also provide funding by appropriation for any
program or activity formerly funded under Section 42.152, as that
section existed on January 1, 2005. Funding provided under this
subsection is not considered a special student allotment for
purposes of Sections 42.301 and 42.302 or any other provision in
this chapter that refers to special student allotments.
Sec. 42.153. TRANSITIONAL PROGRAM ALLOTMENT. For each
student in average daily attendance in a bilingual education or
special language program under Subchapter B, Chapter 29, a district
is entitled to an annual allotment of $450 or a greater amount for
any school year provided by appropriation.
Sec. 42.154. CAREER AND TECHNOLOGY EDUCATION ALLOTMENT.
For each student in average daily attendance in an approved career
and technology education program in grades seven through 12, a
district is entitled to an annual allotment of $178 for each annual
credit hour the student is enrolled in the program, or a greater
amount for any school year provided by appropriation.
Sec. 42.155. PUBLIC EDUCATION GRANT ALLOTMENT. (a) Except
as provided by Subsection (b), for each student in average daily
attendance who is using a public education grant under Subchapter
G, Chapter 29, to attend school in a district other than the
district in which the student resides, the district in which the
student attends school is entitled to an annual allotment of $250 or
a greater amount for any school year provided by appropriation.
(b) The total number of allotments under this section to
which a school district is entitled may not exceed the number by
which the number of students using public education grants to
attend school in the district exceeds the number of students who
reside in the district and use public education grants to attend
school in another district.
[Sections 42.156-42.170 reserved for expansion]
Sec. 42.171. RESTRICTIONS ON USE OF ALLOTMENTS. (a) Unless
specifically provided otherwise by this code, but subject to
Section 42.172, a school district is not required to use amounts
allotted under this subchapter for the program for which the
amounts were allotted.
(b) Any restriction specifically imposed under this
subchapter on a school district's use of an amount allotted under
this subchapter applies equally to the amount by which the
allotment is adjusted under Section 42.301 or 42.302.
Sec. 42.172. MAINTENANCE OF EFFORT. (a) Notwithstanding
any other provision of this code, but subject to Subsection (b), a
school district may not spend in any school year for a program or
service listed below an amount per student in average daily
attendance that is less than the amount the district spent for that
program or service per student in average daily attendance during
the 2004-2005 school year:
(1) a special education program under Subchapter A,
Chapter 29;
(2) supplemental programs and services designed to
eliminate any disparity in performance on assessment instruments
administered under Subchapter B, Chapter 39, or disparity in the
rates of high school completion between students at risk of
dropping out of school, as defined by Section 29.081, and all other
students;
(3) a bilingual education or special language program
under Subchapter B, Chapter 29;
(4) a career and technology education program in
grades nine through 12 or a career and technology education program
for students with disabilities in grades seven through 12 under
Sections 29.182, 29.183, and 29.184; or
(5) a gifted and talented program under Subchapter D,
Chapter 29.
(b) The commissioner may authorize a school district to
spend less than the amount required by this section if the
commissioner, considering the district's unique circumstances,
determines that the requirement imposes an undue hardship on the
district.
[Sections 42.173-42.200 reserved for expansion]
SUBCHAPTER D. TRANSPORTATION ALLOTMENT
Sec. 42.201. TRANSPORTATION ALLOTMENT. (a) Subject to
Subsection (b), a school district is entitled to a transportation
allotment in an amount determined by whichever of the following
formulas results in the greatest allotment:
(1) TA = ADA x 100; or
(2) TA = ADA x 100 x (DMS/ADMS)
where:
"TA" is the allotment to which the district is entitled;
"ADA" is the number of students in average daily attendance
in the district;
"DMS" is the district number of square miles per student in
average daily attendance, which is computed by dividing the number
of square miles in the district by the number of students in average
daily attendance in the district; and
"ADMS" is the average district number of square miles per
student in average daily attendance, which is computed by dividing
the sum of each school district's number of square miles per student
in average daily attendance by the number of districts in the state.
(b) A school district may not receive a transportation
allotment that exceeds $1,000 per student in average daily
attendance.
Sec. 42.202. TRANSPORTATION ALLOTMENT FOR TEXAS SCHOOL FOR
THE DEAF. The Texas School for the Deaf is entitled to an allotment
under this subchapter. The commissioner shall determine the
appropriate allotment.
Sec. 42.203. USE OF TRANSPORTATION ALLOTMENT. A school
district is not required to use funds allotted under this
subchapter in providing transportation services.
[Sections 42.204-42.220 reserved for expansion]
SUBCHAPTER E. NEW INSTRUCTIONAL FACILITY ALLOTMENT
Sec. 42.221. NEW INSTRUCTIONAL FACILITY ALLOTMENT. A
school district is entitled to an additional allotment as provided
by this subchapter for operational expenses associated with opening
a new instructional facility.
Sec. 42.222. DEFINITION. In this subchapter,
"instructional facility" has the meaning assigned by Section
46.001.
Sec. 42.223. ALLOTMENT FOR FIRST YEAR OF OPERATION. For the
first school year in which students attend a new instructional
facility, a school district is entitled to an allotment of $250 for
each student in average daily attendance at the facility or a
greater amount provided by appropriation.
Sec. 42.224. ALLOTMENT FOR SECOND YEAR OF OPERATION. (a)
For the second school year in which students attend a new
instructional facility, a school district is entitled to an
allotment of $250 for each additional student in average daily
attendance at the facility or a greater amount provided by
appropriation.
(b) For purposes of this section, the number of additional
students in average daily attendance at a facility is the
difference between the number of students in average daily
attendance in the current year at that facility and the number of
students in average daily attendance at that facility in the
preceding year.
Sec. 42.225. PRORATION OF ALLOTMENTS. If the total amount
of allotments to which school districts are entitled under this
subchapter for a school year exceeds the amount appropriated for
allotments under this subchapter, the commissioner shall reduce
each district's allotment under this subchapter in the manner
provided by Section 42.313(f).
Sec. 42.226. APPLICABILITY TO CERTAIN DISTRICTS. A school
district subject to Section 42.401 that elects to purchase average
daily attendance credit under Subchapter D, Chapter 41, is entitled
to a credit, in the amount of the allotments to which the district
is entitled under this subchapter, against the total amount
required under Section 41.093 for the district to purchase
attendance credits.
[Sections 42.227-42.240 reserved for expansion]
SUBCHAPTER F. INSTRUCTIONAL MATERIALS AND
TECHNOLOGY ALLOTMENT
Sec. 42.241. INSTRUCTIONAL MATERIALS AND TECHNOLOGY
ALLOTMENT. (a) For each student in average daily attendance, a
school district is entitled to an annual allotment of $150.
(b) Funds allotted under this section may be used only to
purchase approved instructional materials, including online
instructional materials.
(c) This section applies beginning with the 2006-2007
school year. This subsection expires September 1, 2007.
[Sections 42.242-42.250 reserved for expansion]
SUBCHAPTER G. ENRICHMENT PROGRAM
Sec. 42.251. PURPOSE. The purpose of the enrichment
program component of the Foundation School Program is to provide
each school district with the opportunity to supplement the basic
program at a level of its own choice. An allotment under this
subchapter may be used for any legal purpose other than capital
outlay or debt service.
Sec. 42.252. ALLOTMENT. (a) In this section, "wealth per
student" means a school district's taxable value of property, as
determined under Subchapter M, Chapter 403, Government Code,
divided by the number of students in specially adjusted average
daily attendance in the district.
(b) Each school district is guaranteed a specified amount
per student in specially adjusted average daily attendance in state
and local funds for each cent of enrichment tax effort up to the
maximum level specified in this subchapter. The amount of state
support, subject only to the maximum amount under Section 42.253,
is determined by the formula:
GYA = (GL X SPADA X DETR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state enrichment
funds to be allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
enrichment funds per student in specially adjusted average daily
attendance per cent of tax effort, which is the amount of district
enrichment tax revenue per cent of tax effort available to a school
district at the 90th percentile in wealth per student, as
determined by the commissioner, or a greater amount for any school
year provided by appropriation;
"SPADA" is the number of students in specially adjusted
average daily attendance, which is computed by dividing the sum of
the district's allotments under Subchapters B, C, and D by the
accreditation allotment specified by Section 42.101(a)(1) for the
applicable year;
"DETR" is the district enrichment tax rate of the school
district, which is determined by dividing the total amount of
maintenance and operations taxes collected by the school district
for the applicable school year, as provided by Subsection (c), by
the quotient of the district's taxable value of property for the
preceding tax year as determined under Subchapter M, Chapter 403,
Government Code, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DETR" by the quotient of the district's taxable value of property
as determined under Subchapter M, Chapter 403, Government Code,
divided by 100.
(c) For purposes of this section:
(1) the total amount of maintenance and operations
taxes collected by the school district does not include the amount
of:
(A) the district's local share under Section
42.306; or
(B) taxes paid into a tax increment fund under
Chapter 311, Tax Code;
(2) school district taxes for which credit is granted
under Section 31.035, 31.036, or 31.037, Tax Code, or under
Subchapter D, Chapter 313, Tax Code, are considered taxes collected
by the school district as if the taxes were paid when the credit for
the taxes was granted; and
(3) the total amount of maintenance and operations
taxes collected for an applicable school year by a school district
with alternate tax dates, as authorized by Section 26.135, Tax
Code, is the amount of taxes collected on or after January 1 of the
year in which the school year begins and not later than December 31
of the same year.
Sec. 42.253. DISTRICT ENRICHMENT TAX. (a) The district
enrichment tax rate may not exceed $0.10 per $100 of valuation.
(a-1) Notwithstanding Subsection (a):
(1) the district enrichment tax rate may not exceed:
(A) for the 2005 tax year, the rate of $0.02 per
$100 of valuation;
(B) for the 2006 tax year, the rate of $0.04 per
$100 of valuation;
(C) for the 2007 tax year, the rate of $0.06 per
$100 of valuation; and
(D) for the 2008 tax year, the rate of $0.08 per
$100 of valuation.
(b) A school district's enrichment tax rate must be approved
by the voters in accordance with Section 45.003.
(c) Subsection (a-1) and this subsection expire January 1,
2009.
Sec. 42.254. COMPUTATION OF ENRICHMENT AID FOR DISTRICT ON
MILITARY INSTALLATION OR AT STATE SCHOOL. State enrichment
assistance under this subchapter for a school district located on a
federal military installation or at Moody State School is computed
using the average district enrichment tax rate and property value
per student of school districts in the county, as determined by the
commissioner.
[Sections 42.255-42.300 reserved for expansion]
SUBCHAPTER H. ADDITIONAL ADJUSTMENTS; FINANCING THE PROGRAM
Sec. 42.301. COST OF EDUCATION ADJUSTMENT. (a) The amounts
of the accreditation allotments under Subchapter B, each special
student allotment under Subchapter C, and the transportation
allotment under Subchapter D are adjusted to reflect the geographic
variation in known resource costs and costs of education due to
factors beyond the control of the school district. The amount of
the adjustment is 50 percent of the total amount that would result
from application of the cost of education index adopted under
Subsection (b), or a greater amount for any school year provided by
appropriation.
(b) The Legislative Budget Board shall adopt a cost of
education index based on a statistical analysis conducted on a
revenue neutral basis that is designed to isolate the independent
effects of uncontrollable factors on the compensation that school
districts must pay, including teacher salaries and other benefits.
The analysis must include, at a minimum, variations in teacher
characteristics, teacher work environments, and the economic and
social conditions of the communities in which teachers reside.
(b-1) For the 2005-2006 school year, the cost of education
index for purposes of Subsection (a) is based on the average of the
teacher fixed effects index in the 2004 report commissioned by the
Joint Select Committee on Public School Finance of the 78th
Legislature and the index used to determine a school district's
adjustment for the 2004-2005 school year. For the 2006-2007 school
year, the cost of education index for purposes of Subsection (a) is
the teacher fixed effects index in the 2004 report commissioned by
the Joint Select Committee on Public School Finance of the 78th
Legislature. This subsection expires September 1, 2007.
(c) The Legislative Budget Board shall biennially update
the cost of education index required by this section. The
Legislative Budget Board shall submit the updated index to the
legislature not later than December 1 of each even-numbered year.
Sec. 42.302. SMALL AND MID-SIZED DISTRICT ADJUSTMENT. (a)
The amounts of the accreditation allotments under Subchapter B,
each special student allotment under Subchapter C, and the
transportation allotment under Subchapter D of certain small and
mid-sized school districts are adjusted in accordance with this
section to reflect district costs related to the district's size.
In this section:
(1) "T" is the district's total sum after adjustment
for size of the district;
(2) "ADA" is the number of students in average daily
attendance for which the district is entitled to an accreditation
allotment under Section 42.101; and
(3) "SA" is the sum of the district's accreditation
allotments under Subchapter B, each special student allotment under
Subchapter C, and transportation allotments under Subchapter D.
(b) The sum of the total accreditation allotments, any
special student allotments under Subchapter C, and the
transportation allotment under Subchapter D of a school district
that contains at least 300 square miles and has not more than 1,600
students in average daily attendance is adjusted by applying the
formula:
T = (1 + ((1,600 - ADA) X .0004)) X SA
(c) The sum of total accreditation allotments, any special
student allotments under Subchapter C, and the transportation
allotment under Subchapter D of a school district that contains
less than 300 square miles and has not more than 1,600 students in
average daily attendance is adjusted by applying the formula:
T = (1 + ((1,600 - ADA) X .00025)) X SA
(d) The sum of the total accreditation allotments, any
special student allotments under Subchapter C, and the
transportation allotment under Subchapter D of a school district
that offers a kindergarten through grade 12 program and has less
than 5,000 students in average daily attendance is adjusted by
applying the formula, of the following formulas, that results in
the greatest adjusted allotment:
(1) the formula in Subsection (b) or (c) for which the
district is eligible; or
(2) T = (1 + ((5,000 - ADA) X .000025)) X SA
(e) The commissioner may make the adjustment authorized by
Subsection (d)(2) only if the district is not subject to additional
equalization under Section 42.401. For purposes of this
subsection, the adjustments provided by Subsection (d)(2) and
Section 42.301 are not used in determining whether the district is
subject to additional equalization under Section 42.401.
Sec. 42.303. SPARSITY ADJUSTMENT. (a) Notwithstanding
Sections 42.101 and 42.302:
(1) a school district that has fewer than 130 students
in average daily attendance is entitled to an adjusted
accreditation allotment on the basis of 130 students in average
daily attendance if the district offers a kindergarten through
grade 12 program and has preceding or current year's average daily
attendance of at least 90 students or is 30 miles or more by bus
route from the nearest high school district;
(2) a school district that offers a kindergarten
through grade eight program and whose preceding or current year's
average daily attendance was or is at least 50 students or that is
30 miles or more by bus route from the nearest high school district
is entitled to an adjusted accreditation allotment on the basis of
75 students in average daily attendance; and
(3) a school district that offers a kindergarten
through grade six program and whose preceding or current year's
average daily attendance was or is at least 40 students or that is
30 miles or more by bus route from the nearest high school district
is entitled to an adjusted accreditation allotment on the basis of
60 students in average daily attendance.
(b) For purposes of computing an adjusted accreditation
allotment under Subsection (a)(1):
(1) the school district is entitled to an
accreditation allotment under Section 42.101(a)(1) determined by
dividing the number of students in actual average daily attendance
who are enrolled below the ninth grade level by the district's total
actual average daily attendance and multiplying the resulting
quotient by 130; and
(2) the school district is entitled to an
accreditation allotment under Section 42.101(a)(2) determined by
dividing the number of students in actual average daily attendance
who are enrolled at or above the ninth grade level by the district's
total actual average daily attendance and multiplying the resulting
quotient by 130.
Sec. 42.304. FINANCING: GENERAL RULE. (a) The sum of the
accreditation allotments under Subchapter B and the additional
allotments under Subchapters C, D, E, and F constitutes the tier one
allotments. The sum of the tier one allotments and the enrichment
program allotments under Subchapter G constitutes the total cost of
the Foundation School Program.
(b) The program shall be financed by:
(1) state funds appropriated for the purposes of
public school education;
(2) ad valorem tax revenue generated by an equalized
uniform school district effort;
(3) ad valorem tax revenue generated by local school
district effort for an enrichment program in accordance with
Subchapter G; and
(4) state available school funds distributed in
accordance with law.
Sec. 42.305. ADDITIONAL STATE AID FOR AD VALOREM TAX
CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. For each school year,
a school district, including a school district that is otherwise
ineligible for state aid under this chapter, is entitled to state
aid in an amount equal to the amount of all tax credits credited
against ad valorem taxes of the district in that year under
Subchapter D, Chapter 313, Tax Code.
Sec. 42.306. LOCAL SHARE OF PROGRAM COST (TIER ONE). (a)
Each school district's share of the Foundation School Program is
determined by the following formula:
LS = TR X DPV
where:
"LS" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of $1.00, or a lesser rate for any school
year provided by appropriation; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code.
(b) The commissioner shall adjust the values reported in the
official report of the comptroller as required by Section 5.09(a),
Tax Code, to reflect reductions in taxable value of property
resulting from natural or economic disaster after January 1 in the
year in which the valuations are determined. The decision of the
commissioner is final. An adjustment does not affect the local
share of any other school district.
(c) A school district that adopts a maintenance and
operations tax rate sufficient to raise its total local share of the
Foundation School Program is eligible to receive the full amount of
the tier one allotment to which the district is entitled under this
chapter.
(d) If a school district adopts a maintenance and operations
tax rate that is less than the rate prescribed by Subsection (a),
the district's tier one allotment is adjusted by a percentage
determined by dividing the district's adopted tax rate by the rate
prescribed by Subsection (a) and multiplying the resulting quotient
by 100. The commissioner shall determine the amount of the tier one
allotment to which a district is entitled under this subsection.
The commissioner's determination is final and may not be appealed.
(e) In implementing any provision of this title that refers
to a school district's local share or tier one allotment:
(1) the local share of a district described by
Subsection (d) is based on the tax rate adopted by the district
under that subsection; and
(2) the tier one allotment of a district described by
Subsection (d) is the proportionate amount provided by that
subsection.
(f) A school district's adopted maintenance and operations
tax rate, including any enrichment tax rate under Subchapter G, may
not exceed the maximum rate specified by Section 45.003(d).
Sec. 42.307. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
OF PROPERTY. (a) For purposes of Chapter 46 and this chapter, and
to the extent money specifically authorized to be used under this
section is available, the commissioner shall adjust the taxable
value of property in a school district that, due to factors beyond
the control of the board of trustees, experiences a rapid decline in
the tax base used in computing taxable values in excess of four
percent of the tax base used in the preceding year.
(b) To the extent that a sufficient amount of money is not
available to fund all adjustments under this section, the
commissioner shall reduce adjustments in the manner provided by
Section 42.313(f) so that the total amount of adjustments equals
the amount of money available to fund the adjustments.
(c) A decision of the commissioner under this section is
final and may not be appealed.
Sec. 42.308. ADJUSTMENT FOR OPTIONAL HOMESTEAD EXEMPTION.
(a) In any school year, the commissioner may not provide funding
under this chapter based on a school district's taxable value of
property computed in accordance with Section 403.302(d)(2),
Government Code, unless:
(1) funds are specifically appropriated for purposes
of this section; or
(2) the commissioner determines that the total amount
of state funds appropriated for purposes of the Foundation School
Program for the school year exceeds the amount of state funds
distributed to school districts in accordance with Section 42.313
based on the taxable values of property in school districts
computed in accordance with Section 403.302(d), Government Code,
without any deduction for residence homestead exemptions granted
under Section 11.13(n), Tax Code.
(b) In making a determination under Subsection (a)(2), the
commissioner shall:
(1) notwithstanding Section 42.313(b), reduce the
entitlement under this chapter of a school district whose final
taxable value of property is higher than the estimate under Section
42.314 and make payments to school districts accordingly; and
(2) give priority to school districts that, due to
factors beyond the control of the board of trustees, experience a
rapid decline in the tax base used in calculating taxable values in
excess of four percent of the tax base used in the preceding year.
(c) In the first year of a state fiscal biennium, before
providing funding as provided by Subsection (a)(2), the
commissioner shall ensure that sufficient appropriated funds for
purposes of the Foundation School Program are available for the
second year of the biennium, including funds to be used for purposes
of Section 42.307.
(d) If the commissioner determines that the amount of funds
available under Subsection (a)(1) or (2) does not at least equal the
total amount of state funding to which districts would be entitled
if state funding under this chapter were based on the taxable values
of property in school districts computed in accordance with Section
403.302(d)(2), Government Code, the commissioner may, to the extent
necessary, provide state funding based on a uniform lesser fraction
of the deduction under Section 403.302(d)(2), Government Code.
(e) The commissioner shall notify school districts as soon
as practicable as to the availability of funds under this section.
Sec. 42.309. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS. For purposes of this chapter, the
taxable value of property of a school district that contracts for
students residing in the district to be educated in another
district under Section 25.039(a) is adjusted by applying the
formula:
ADPV = DPV - (TN/.015)
where:
"ADPV" is the district's adjusted taxable value of property;
"DPV" is the taxable value of property in the district for the
preceding tax year determined under Subchapter M, Chapter 403,
Government Code; and
"TN" is the total amount of tuition required to be paid by the
district under Section 25.039 for the school year for which the
adjustment is made, not to exceed the amount specified by
commissioner rule under Section 25.039(b).
Sec. 42.310. EFFECT OF APPRAISAL APPEAL. (a) If the final
determination of an appeal under Chapter 42, Tax Code, results in a
reduction in the taxable value of property that exceeds five
percent of the total taxable value of property in the school
district for the same tax year determined under Subchapter M,
Chapter 403, Government Code, the commissioner shall request the
comptroller to adjust its taxable property value findings for that
year consistent with the final determination of the appraisal
appeal.
(b) If the district would have received a greater amount
from the Texas education fund for the applicable school year using
the adjusted value, the commissioner shall add the difference to
subsequent distributions to the district from the Texas education
fund. An adjustment does not affect the local share of any other
district.
Sec. 42.311. ADDITIONAL TRANSITIONAL AID. (a)
Notwithstanding any other provision of this subtitle, and provided
that a school district imposes a tax at a minimum rate specified by
the commissioner, a school district is entitled to the amount of
state revenue necessary to maintain state and local revenue per
student in average daily attendance in an amount equal to the sum
of:
(1) the amount of state and local revenue per student
in average daily attendance for maintenance and operation of the
district available to the district, including any amounts the
district received under Rider 82, page III-23, Chapter 1330, Acts
of the 78th Legislature, Regular Session, 2003 (the General
Appropriations Act), during the 2004-2005 school year; and
(2) an amount equal to three percent of the amount
described by Subdivision (1).
(b) The commissioner shall determine the minimum tax rate
for a school district under Subsection (a) on the basis of the tax
rate adopted by the district for maintenance and operations for the
2004-2005 school year.
(c) The commissioner shall determine the amount of state
funds to which a school district is entitled under this section. The
commissioner's determination is final and may not be appealed.
Sec. 42.312. TEMPORARY LIMITATIONS ON AID. (a)
Notwithstanding any other provision of this subtitle, the
commissioner shall withhold from a school district the amount of
state funds necessary to ensure that the district does not receive
an amount of state and local revenue per student in average daily
attendance that is greater than the following percentage of the
amount to which the district is entitled under Section
42.311(a)(1):
(1) 108 percent for the 2005-2006 school year;
(2) 116 percent for the 2006-2007 school year; and
(3) 124 percent for the 2007-2008 school year.
(b) The commissioner shall determine the amount of state
funds required to be withheld under this section. The
commissioner's determination is final and may not be appealed.
(c) This section expires September 1, 2008.
Sec. 42.313. DISTRIBUTION OF TEXAS EDUCATION FUND. (a) For
each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B, C, D, E, and F, as adjusted in
accordance with this subchapter;
(2) the amount of money to which a school district is
entitled under Subchapter G;
(3) the amount of money allocated to the district from
the available school fund;
(4) the amount of the district's tier one local share
under Section 42.306; and
(5) the amount of each district's enrichment program
local revenue under Section 42.252.
(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 42.314, 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 42.314 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.
(c) Each school district is entitled to an amount equal to
the difference for that district between the sum of Subsections
(a)(1) and (a)(2) and the sum of Subsections (a)(3), (a)(4), and
(a)(5).
(d) The commissioner shall approve warrants to each school
district equaling the amount of its entitlement, except as provided
by this section. Warrants for all money expended according to this
chapter shall be approved and transmitted to treasurers or
depositories of school districts in the same manner as warrants for
state available fund payments are transmitted. The total amount of
the warrants issued under this section may not exceed the total
amount appropriated for Foundation School Program purposes for that
fiscal year.
(e) If a school district demonstrates to the satisfaction of
the commissioner that the estimate of the district's tax rate,
student enrollment, or taxable value of property used in
determining the amount of state funds to which the district is
entitled are so inaccurate as to result in undue financial hardship
to the district, the commissioner may adjust funding to that
district in that school year to the extent that funds are available
for that year.
(f) If the total amount appropriated for a year is less than
the amount of money to which school districts are entitled for that
year, the commissioner shall reduce the total amount of funds
allocated to each district proportionately. The following fiscal
year, a district's entitlement under this section is increased by
an amount equal to the reduction made under this subsection.
(g) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under this chapter for the current school year
and shall compare that amount with the amount of the warrants issued
to each district for that year. If the amount of the warrants
differs from the amount to which a district is entitled because of
variations in the district's tax rate, student enrollment, or
taxable value of property, the commissioner shall adjust the
district's entitlement for the next fiscal year accordingly.
(h) The legislature may appropriate funds necessary for
increases under Subsection (g) from funds that the comptroller, at
any time during the fiscal year, finds are available.
(i) The commissioner shall compute for each school district
the total amount by which the district's allocation of state funds
is increased or reduced under Subsection (g) and shall certify that
amount to the district.
Sec. 42.314. ESTIMATES REQUIRED. (a) Not later than
October 1 of each even-numbered year:
(1) the agency shall submit to the legislature an
estimate of the tax rate and student enrollment of each school
district for the following biennium; and
(2) the comptroller shall submit to the legislature an
estimate of the total taxable value of all property in the state as
determined under Subchapter M, Chapter 403, Government Code, for
the following biennium.
(b) The agency and the comptroller shall update the
information provided to the legislature under Subsection (a) not
later than March 1 of each odd-numbered year.
Sec. 42.315. FALSIFICATION OF RECORDS; REPORT. When, in
the opinion of the agency's director of school audits, audits or
reviews of accounting, enrollment, or other records of a school
district reveal deliberate falsification of the records, or
violation of the provisions of this chapter, through which the
district's share of state funds allocated under the authority of
this chapter would be, or has been, illegally increased, the
director shall promptly and fully report the fact to the State Board
of Education, the state auditor, and the appropriate county
attorney, district attorney, or criminal district attorney.
Sec. 42.316. PAYMENTS FROM TEXAS EDUCATION FUND. (a) In
this section:
(1) "Category 1 school district" means a school
district having a wealth per student of less than one-half of the
statewide average wealth per student.
(2) "Category 2 school district" means a school
district having a wealth per student of at least one-half of the
statewide average wealth per student but not more than the
statewide average wealth per student.
(3) "Category 3 school district" means a school
district having a wealth per student of more than the statewide
average wealth per student.
(4) "Wealth per student" means the taxable property
values reported by the comptroller to the commissioner under
Section 42.306 divided by the number of students in average daily
attendance.
(b) Payments from the Texas education fund to each category
1 school district shall be made as follows:
(1) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 80 percent of the yearly entitlement of the
district shall be paid in eight equal installments to be made on or
before the 25th day of October, November, December, January, March,
May, June, and July; and
(3) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of February.
(c) Payments from the Texas education fund to each category
2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the fifth
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1).
(d) Payments from the Texas education fund to each category
3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the fifth
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1).
(e) The amount of any installment required by this section
may be modified to provide a school district with the proper amount
to which the district may be entitled by law and to correct errors
in the allocation or distribution of funds. If an installment under
this section is required to be equal to other installments, the
amount of other installments may be adjusted to provide for that
equality.
(f) Except as provided by Subsection (c)(8) or (d)(3), any
previously unpaid additional funds from prior years owed to a
district shall be paid to the district together with the September
payment of the current year entitlement.
Sec. 42.317. RECOVERY OF OVERALLOCATED FUNDS. (a) If a
school district has received an overallocation of state funds, the
agency shall, by withholding from subsequent allocations of state
funds or by requesting and obtaining a refund, recover from the
district an amount equal to the overallocation.
(b) If a district fails to comply with a request for a refund
under Subsection (a), the agency shall certify to the comptroller
that the amount constitutes a debt for purposes of Section 403.055,
Government Code. The agency shall provide to the comptroller the
amount of the overallocation and any other information required by
the comptroller. The comptroller may certify the amount of the debt
to the attorney general for collection.
(c) Any amounts recovered under this section shall be
deposited in the Texas education fund.
[Sections 42.318-42.400 reserved for expansion]
SUBCHAPTER I. ADDITIONAL EQUALIZATION
Sec. 42.401. DISTRICTS SUBJECT TO ADDITIONAL EQUALIZATION.
(a) Except as provided by Subsection (b), a school district in
which the district's local share under Section 42.306 exceeds the
district's tier one allotment under Section 42.304 shall be
consolidated by the commissioner under Subchapter H, Chapter 41.
(b) As an alternative to consolidation under Subchapter H,
Chapter 41, a school district described by Subsection (a) may elect
to purchase average daily attendance credit in the manner provided
by Subchapter D, Chapter 41.
[Sections 42.402-42.500 reserved for expansion]
SUBCHAPTER J. EDUCATOR EXCELLENCE INCENTIVE PROGRAM
Sec. 42.501. EDUCATOR EXCELLENCE INCENTIVE PROGRAM. (a)
The commissioner shall establish an educator excellence incentive
program under which school districts, in accordance with locally
developed plans approved by the commissioner, provide incentive
payments to employees who demonstrate success in adding value to
student achievement.
(b) Except as provided by Subsection (c), each year a school
district shall use an amount equal to at least one percent of the
district's total state and local expenditures for maintenance and
operations to provide incentive payments to employees in accordance
with this subchapter.
(c) A school district may elect to use a portion of the
amount described by Subsection (b) to provide stipends to teachers
assigned as mentors under Section 21.458.
(d) The commissioner shall adopt rules necessary to
implement this subchapter. In adopting rules, the commissioner
shall encourage local flexibility in designing incentive plans that
promote student achievement.
Sec. 42.502. MINIMUM CRITERIA FOR LOCAL INCENTIVE PLANS.
(a) A school district shall develop a local incentive plan for
rewarding academic improvement and achievement in the district and
submit the plan to the commissioner for approval.
(b) A local incentive plan must be designed to reward
individuals, campuses, or organizational units such as grade levels
at elementary schools or academic departments at high schools.
(c) A local incentive plan must provide for incentive
payments to classroom teachers and may provide for incentive
payments to other employees.
(d) The primary criteria for making incentive payments to
employees under a local incentive plan must be based on objective
measures of student achievement, and the plan must provide for
incentive payments to be awarded on the basis of high achievement,
incremental growth in achievement, or both. A local incentive plan
may also consider other indicators of employee performance, such as
teacher evaluations conducted by principals or parents.
(e) A local incentive plan must be developed through a
process that considers comments of classroom teachers in the
district.
Sec. 42.503. EMPLOYMENT CONTRACTS. (a) A school district
shall provide in employment contracts that qualifying employees may
receive an incentive payment under the local incentive plan.
(b) The district shall indicate that any incentive payment
distributed is considered a bonus for performance and not an
entitlement as part of an employee's salary.
Sec. 42.504. DECISION BY BOARD OF TRUSTEES. A decision by
the board of trustees or the board's designee in providing an
incentive payment under a local incentive plan approved under this
subchapter is final and may not be appealed.
SECTION 1A.02. The heading to Chapter 41, Education Code,
is amended to read as follows:
CHAPTER 41. EQUALIZATION ACTIONS [EQUALIZED WEALTH LEVEL]
SECTION 1A.03. Section 41.006(a), Education Code, is
amended to read as follows:
(a) The commissioner may adopt rules necessary for the
implementation of this chapter. The rules may provide for the
commissioner to make necessary adjustments to the provisions of
Chapter 42, including providing for the commissioner to make an
adjustment in the funding element established by Section 42.252
[42.302], at the earliest date practicable, to the amount the
commissioner believes, taking into consideration options exercised
by school districts under Section 42.401 [this chapter] and
estimates of student enrollments, will match appropriation levels.
SECTION 1A.04. Section 41.008(a), Education Code, is
amended to read as follows:
(a) The governing board of a school district that results
from consolidation under this chapter[, including a consolidated
taxing district under Subchapter F,] for the tax year in which the
consolidation occurs may determine whether to adopt a homestead
exemption provided by Section 11.13, Tax Code, and may set the
amount of the exemption, if adopted, at any time before the school
district adopts a tax rate for that tax year. This section applies
only to an exemption that the governing board of a school district
is authorized to adopt or change in amount under Section 11.13, Tax
Code.
SECTION 1A.05. Section 41.009(a), Education Code, is
amended to read as follows:
(a) A tax abatement agreement executed by a school district
that is involved in consolidation [or in detachment and annexation
of territory] under this chapter is not affected and applies to the
taxation of the property covered by the agreement as if executed by
the district within which the property is included.
SECTION 1A.06. Section 41.010, Education Code, is amended
to read as follows:
Sec. 41.010. TAX INCREMENT OBLIGATIONS. The payment of tax
increments under Chapter 311, Tax Code, is not affected by the
consolidation of territory [or tax bases or by annexation] under
this chapter. In each tax year a school district paying a tax
increment from taxes on property over which the district has
assumed taxing power is entitled to retain the same percentage of
the tax increment from that property that the district in which the
property was located before the consolidation [or annexation] could
have retained for the respective tax year.
SECTION 1A.07. Section 41.013(a), Education Code, is
amended to read as follows:
(a) A [Except as provided by Subchapter G, a] decision of
the commissioner under this chapter is appealable under Section
7.057.
SECTION 1A.08. Section 41.091, Education Code, is amended
to read as follows:
Sec. 41.091. AGREEMENT. A school district subject to
Section 42.401 [with a wealth per student that exceeds the
equalized wealth level] may execute an agreement with the
commissioner to purchase attendance credits in an amount equal to
the lesser of:
(1) the difference between the district's local share
under Section 42.306 and the district's tier one allotment under
Section 42.304; or
(2) the amount equal to 35 percent of the district's
total maintenance and operations tax revenue for the school year,
including any enrichment revenue under Subchapter G, Chapter 42
[sufficient, in combination with any other actions taken under this
chapter, to reduce the district's wealth per student to a level that
is equal to or less than the equalized wealth level].
SECTION 1A.09. Section 41.093(a), Education Code, is
amended to read as follows:
(a) The cost of each credit is an amount equal to the greater
of:
(1) the amount of the district's maintenance and
operations tax revenue per student in [weighted] average daily
attendance for the school year for which the contract is executed;
or
(2) the amount of the statewide district average of
maintenance and operations tax revenue per student in [weighted]
average daily attendance for the school year preceding the school
year for which the contract is executed.
SECTION 1A.10. Section 41.251, Education Code, is amended
to read as follows:
Sec. 41.251. COMMISSIONER ORDER. If the commissioner is
required under Section 42.401 [41.004] to order the consolidation
of districts, the consolidation is governed by this subchapter.
The commissioner's order shall be effective on a date determined by
the commissioner, but not later than the earliest practicable date
after November 8.
SECTION 1A.11. Section 41.252, Education Code, is amended
by amending Subsections (a) and (c) and adding Subsection (d) to
read as follows:
(a) In selecting the districts to be consolidated with a
district subject to Section 42.401 [that has a property wealth
greater than the equalized wealth level], the commissioner shall
select one or more districts with a local share under Section 42.306
[wealth per student] that, when consolidated, will result in a
consolidated district that is not subject to Section 42.401 [with a
wealth per student equal to or less than the equalized wealth
level]. In achieving that result, the commissioner shall give
priority to school districts in the following order:
(1) first, to the contiguous district that has the
lowest local share percentage [wealth per student] and is located
in the same county;
(2) second, to the district that has the lowest local
share percentage [wealth per student] and is located in the same
county;
(3) third, to a contiguous district not subject to
Section 42.401 [with a property wealth below the equalized wealth
level] that has requested the commissioner to consider [that] it
for inclusion [be considered] in a consolidation plan;
(4) fourth, to include as few districts as possible
that are not subject to Section 42.401 and [fall below the equalized
wealth level within the consolidation order that] have not
requested the commissioner to be included in a consolidation plan;
(5) fifth, to the district that has the lowest local
share percentage [wealth per student] and is located in the same
regional education service center area; and
(6) sixth, to a district that has a tax rate similar to
that of the district subject to Section 42.401 [that has a property
wealth greater than the equalized wealth level].
(c) In applying the selection criteria specified by
Subsection (a), if more than two districts are to be consolidated,
the commissioner shall select the third and each subsequent
district to be consolidated by treating the district subject to
Section 42.401 [that has a property wealth greater than the
equalized wealth level] and the district or districts previously
selected for consolidation as one district.
(d) In this section, "local share percentage" means a
percentage determined by dividing a school district's local share
under Section 42.306 by the district's tier one allotment under
Section 42.304.
SECTION 1A.12. Section 41.257, Education Code, is amended
to read as follows:
Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
AND TRANSPORTATION ALLOTMENT. The budget of the consolidated
district must apply the benefit of the adjustment or allotment to
the schools of the consolidating district to which Section 42.302,
42.303, or Subchapter D, Chapter 42, [42.103, 42.105, or 42.155]
would have applied in the event that the consolidated district
still qualifies as a small or sparse district.
SECTION 1A.13. Section 45.003, Education Code, is amended
by amending Subsections (a) and (d) and adding Subsections (d-1),
(d-2), (e), (f), (g), and (h) to read as follows:
(a) Bonds described by Section 45.001 may not be issued and
taxes described by Section 45.001 or 45.002 may not be levied unless
authorized by a majority of the qualified voters of the district,
voting at an election held for that purpose[, at the expense of the
district, in accordance with the Election Code, except as provided
by this section. Each election must be called by resolution or
order of the governing board or commissioners court. The
resolution or order must state the date of the election, the
proposition or propositions to be submitted and voted on, the
polling place or places, and any other matters considered necessary
or advisable by the governing board or commissioners court].
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate, which may be not
more than $1.10 [$1.50] on the $100 valuation of taxable property in
the district, stated in the proposition.
(d-1) Notwithstanding Subsection (d), the maximum rate
under that subsection is:
(1) for the 2005 tax year, $1.02 on the $100 valuation
of taxable property;
(2) for the 2006 tax year, $1.04 on the $100 valuation
of taxable property;
(3) for the 2007 tax year, $1.06 on the $100 valuation
of taxable property; and
(4) for the 2008 tax year, $1.08 on the $100 valuation
of taxable property.
(d-2) Subsection (d-1) and this subsection expire January
1, 2009.
(e) An election held before June 1, 2005, authorizing a
maintenance tax, other than a tax described by Section 45.001, at a
rate of at least $1.00 on the $100 valuation of taxable property in
the district is sufficient to authorize a rate not to exceed $1.00.
(f) A school district must obtain voter authorization in an
election held on or after June 1, 2005, before the district may levy
an ad valorem tax for the maintenance and enrichment of the public
schools at a rate that exceeds the rate of $1.00 on the $100
valuation of taxable property in the district.
(g) A school district must obtain additional voter
authorization in an election each time the district adopts a tax
rate for the maintenance and enrichment of the district that
exceeds the rate levied by the district in the preceding tax year.
(h) Notwithstanding any other provision of law, a district
permitted by special law on January 1, 2005, to impose an ad valorem
tax at a rate greater than $1.50 may continue to impose a rate that
is $0.50 less than the rate previously authorized.
PART B. SCHOOL DISTRICT EFFICIENCY
SECTION 1B.01. Subchapter A, Chapter 11, Education Code, is
amended by adding Section 11.003 to read as follows:
Sec. 11.003. ADMINISTRATIVE EFFICIENCY. (a) The
commissioner shall develop and implement a program allowing a
school district board of trustees to enter into an agreement with
another district or a regional education service center for a
cooperative arrangement regarding administrative services,
including transportation, food service, purchasing, and payroll
functions. The program may include reasonable incentives to
encourage districts to enter into an agreement, as determined by
the commissioner.
(b) An agreement under this section must contain an
explanation of how the cooperative arrangement would allow a
participating school district to reduce costs, operate more
efficiently, and improve educational quality.
(c) This section does not limit a school district's
authority to enter into any other agreement authorized by law.
ARTICLE 2. EDUCATIONAL EXCELLENCE
PART A. EDUCATOR QUALITY
SECTION 2A.01. Subchapter B, Chapter 21, Education Code, is
amended by adding Section 21.0461 to read as follows:
Sec. 21.0461. TEMPORARY CERTIFICATE FOR SUPERINTENDENT OR
PRINCIPAL. (a) The board may issue a temporary certificate under
this section for:
(1) assistant principal;
(2) principal; or
(3) superintendent.
(b) A candidate for certification under this section must:
(1) hold a baccalaureate or advanced degree from an
institution of higher education;
(2) have significant management and leadership
experience, as determined by the board of trustees of the school
district that will employ the person under the temporary
certificate; and
(3) perform satisfactorily on the appropriate
examination prescribed under Section 21.048.
(c) A school district may require that a person who is
employed by the district and who holds a certificate issued under
this section complete a training program.
(d) A certificate issued to a person under this section is
valid only in the school district in which the person is initially
employed after receiving the certificate.
(e) A certificate issued under this section:
(1) expires on the third anniversary of the date on
which the certificate was issued; and
(2) is not renewable.
(f) The board shall issue a standard certificate to a person
who holds a temporary certificate issued under this section if the
school district employing the person under the temporary
certificate:
(1) has employed the person for at least three years in
the capacity for which the person seeks a standard certificate; and
(2) has recommended the person to the board and
favorably reviewed, primarily using objective measures of student
performance and improvement in the district, the person's
performance.
(g) A school district employing a person who holds a
temporary certificate issued under this section must provide the
person with intensive support during the person's first year of
employment with the district, including:
(1) mentoring; and
(2) intensive, high-quality professional development.
(h) For purposes of this section, the board by rule may
determine the criteria a school district board of trustees shall
use to determine whether a candidate for certification under this
section has significant management and leadership experience.
SECTION 2A.02. Section 21.054, Education Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) Continuing education for principals must be based on an
individual assessment of the knowledge, skills, and proficiencies
necessary to perform successfully as a principal, as identified in
Section 21.046. As part of a principal's compliance with
continuing education requirements under this section, a principal
must attend advanced management training courses or programs as
prescribed by board rule. An individualized professional growth
plan shall be developed as a result of the assessment and shall be
used exclusively for professional growth purposes. The assessment
results and the growth plan may only be released with the approval
of the principal assessed. Each certified principal shall
participate in the assessment process and professional growth
activities at least once every five years.
(c) The board, in consultation with business schools,
departments, or programs at institutions of higher education, shall
propose rules to govern the approval and accountability of advanced
management training courses or programs required under this
section. In proposing a rule under this section, the board shall
require that a person conducting a course or program have
recognized expertise in business management.
SECTION 2A.03. Section 21.402, Education Code, is amended
by amending Subsections (a), (c), and (d) and adding Subsections
(c-1) and (c-2) to read as follows:
(a) Except as provided by Subsection (d)[, (e),] or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience, prescribed by
Subsection (c) [determined by the following formula:
[MS = SF x FS
[where:
["MS" is the minimum monthly salary;
["SF" is the applicable salary factor specified by Subsection
(c); and
["FS" is the amount, as determined by the commissioner under
Subsection (b), of state and local funds per weighted student
available to a district eligible to receive state assistance under
Section 42.302 with an enrichment tax rate, as defined by Section
42.302, equal to the maximum rate authorized under Section 42.303,
except that the amount of state and local funds per weighted student
does not include the amount attributable to the increase in the
guaranteed level made by H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001].
(c) The minimum monthly salary under this section is
[factors per step are] as follows:Years Experience 0 1 2
2000-2001] school
year is, as long as the employee is employed by the same district,
entitled to a salary that is at least equal to the salary the
employee received for the 2005-2006 [2000-2001] school year.
SECTION 2A.04. Subchapter J, Chapter 21, Education Code, is
amended by adding Section 21.458 to read as follows:
Sec. 21.458. MENTORS. (a) Each school district may assign
as a mentor to each classroom teacher who has less than two years of
teaching experience a teacher who:
(1) teaches in the same school;
(2) to the extent practicable, teaches the same
subject or grade level, as applicable; and
(3) meets the qualifications prescribed by
commissioner rules adopted under Subsection (b).
(b) The commissioner shall adopt rules necessary to
administer this section, including rules concerning the duties and
qualifications of a teacher who serves as a mentor. The rules
concerning qualifications must require that to serve as a mentor a
teacher must have at least three complete years of teaching
experience with a proven record of superior value-added student
achievement as demonstrated under Section 39.034.
(c) From the funds appropriated to the agency for purposes
of this section, the commissioner shall adopt rules to implement
this section. In adopting rules under this subsection, the
commissioner shall rely on mentoring programs that, through
external evaluation, have demonstrated success. This subsection
expires January 1, 2006.
SECTION 2A.05. Section 21.054, Education Code, as added by
this Act, applies beginning with the 2006-2007 school year.
PART B. STATE GOVERNANCE
SECTION 2B.01. Subchapter A, Chapter 7, Education Code, is
amended by adding Sections 7.007-7.009 to read as follows:
Sec. 7.007. PUBLIC EDUCATION INFORMATION MANAGEMENT SYSTEM
(PEIMS). (a) Each school district shall participate in the Public
Education Information Management System (PEIMS) and shall provide
through that system information required for the administration of
this code.
(b) Each school district shall use a uniform accounting
system adopted by the commissioner for the data required to be
reported for the Public Education Information Management System.
(c) Annually, the commissioner shall review the Public
Education Information Management System and shall repeal or amend
rules that require school districts to provide information through
the system that is not necessary. In reviewing and revising the
system, the commissioner shall develop rules to ensure that the
system:
(1) provides useful, accurate, and timely information
on student demographics and academic performance, personnel, and
school district finances;
(2) contains only the data necessary for the
legislature and the agency to perform their legally authorized
functions in overseeing the public education system; and
(3) does not contain any information related to
instructional methods, except as required by federal law.
(d) The commissioner's rules must ensure that the Public
Education Information Management System links student performance
data to other related information for purposes of efficient and
effective allocation of school resources.
Sec. 7.008. STATEWIDE STUDENT ENROLLMENT, ATTENDANCE, AND
ACHIEVEMENT TRACKING SYSTEM. (a) Each school district shall
participate in a system meeting standards approved by the
commissioner to track each student enrolled in a public school in
this state. A student tracking system must:
(1) produce detailed reports for agency officials and
policy-makers and update information as applicable on each
student's:
(A) enrollment;
(B) attendance;
(C) achievement, including course or grade
completion and assessment instrument results;
(D) receipt of special education services,
including placement in a special education program and the
individualized education program developed;
(E) individual graduation plans; and
(F) specific reason for leaving a school or
school district, such as transferring, graduating, or dropping out
of school; and
(2) to facilitate the electronic transfer of student
records and the evaluation and improvement of educational programs
in the state, permit an authorized state or district official to
electronically retrieve information about a particular student as
necessary.
(b) Each school district shall use the student tracking
system.
(c) The commissioner may solicit and accept grant funds to
maintain the student tracking system and to make the system
available to school districts.
Sec. 7.009. CONTRACT FOR STUDENT TRACKING SYSTEM;
CONFIDENTIALITY OF STUDENT INFORMATION. (a) To assist school
districts in complying with Section 7.008, the agency may contract
with a public or private entity that develops tracking systems or
electronic transfer systems. The third-party contractor may
produce software or other electronic tools or host an Internet
website to collect and compile data and produce reports meeting
standards approved by the commissioner as provided by Section
7.008.
(b) In order to develop and evaluate the data, the
third-party contractor may collect data from each school district
under the contract, including data that is confidential under state
or federal law. Confidential data collected by the contractor does
not lose its character as confidential information because of its
collection by the contractor, and providing that data to the
contractor does not constitute a release of the information by the
school district.
(c) The contractor and its employees are subject to any
state or federal law governing the release of or providing access to
any confidential information to the same extent as the school
district from which the data is collected. The contractor may not
release or distribute the data to any other person in a form that
contains confidential information.
(d) Confidential information may be used by the contractor
solely for the purposes provided by Section 7.008 and must be
destroyed immediately when no longer needed for those purposes.
PART C. SCHOOL DISTRICT GOVERNANCE AND OPERATION
SECTION 2C.01. (a) Section 11.059, Education Code, is
amended to read as follows:
Sec. 11.059. TERMS. (a) A trustee of an independent school
district serves a term of [three or] four years.
(b) [Elections for trustees with three-year terms shall be
held annually. The terms of one-third of the trustees, or as near
to one-third as possible, expire each year.
[(c)] Elections for trustees [with four-year terms] shall
be held on the uniform election date in November [biennially]. The
terms of one-half of the trustees, or as near to one-half as
possible, expire every two years.
(c) [(d)] A board policy must state the schedule on which
specific terms expire.
(b) Section 41.001(d), Election Code, is amended to read as
follows:
(d) A general election of officers of a city, school
district, junior college district, or hospital district may not be
held on the February or September uniform election date. A general
election of officers of an independent school district may not be
held on the February, May, or September uniform election date.
SECTION 2C.02. Section 25.0811(a), Education Code, is
amended to read as follows:
[(a)] A school district shall [may not] begin instruction
for students for a school year on the first Tuesday after Labor Day
[before the week in which August 21 falls. For purposes of this
subsection, Sunday is considered the first day of the week].
SECTION 2C.03. (a) Section 11.059, Education Code, as
amended by this Act, applies beginning with a school district
trustee election scheduled for 2006.
(b) Except as provided by Subsection (c) of this section, a
school district trustee election that on the effective date of this
Act is scheduled to be held in 2006 or 2007 must be held on November
7, 2006, or November 6, 2007.
(c) If, under Subsection (b) of this section, the positions
of more than one-half of the trustees or as near to one-half as
possible would be scheduled for election on November 7, 2006, or
November 6, 2007, the trustees holding those positions shall draw
lots to determine, as appropriate, which positions are subject to
election in 2006 or 2007 and which are subject to election in 2008
or 2009.
(d) To implement the changes made to Section 11.059,
Education Code, by this Act, a person may serve a term as school
district trustee that is longer than the term for which the person
was elected.
PART D. ACCOUNTABILITY
SECTION 2D.01. Subchapter A, Chapter 7, Education Code, is
amended by adding Section 7.010 to read as follows:
Sec. 7.010. BEST PRACTICES; CLEARINGHOUSE. (a) The agency
shall establish a clearinghouse of information relating to the best
practices of school districts for curriculum development,
classroom instruction, bilingual education, special language
programs, and business practices.
(b) The agency shall:
(1) allow each school district to submit examples of
the district's best practices for:
(A) curriculum development and classroom
instruction, including best practices regarding scope and sequence
of education;
(B) bilingual education and special language
programs; and
(C) business practices, including descriptions
of effective, efficient practices;
(2) organize the best practices for curriculum
development and classroom instruction by each grade level and each
subject in the required curriculum under Section 28.002;
(3) organize the best practices for business practices
with priority given to descriptions of effective, efficient
practices provided by districts rated exemplary or recognized under
Subchapter D, Chapter 39; and
(4) periodically update information described by this
section as the agency determines necessary to provide timely
information regarding best practices.
(c) The agency may include in the clearinghouse any
information that the agency determines to be relevant to the best
practices of school districts.
(d) The agency shall make available on its Internet website
the best practices information described by this section. The
information must be easily accessible by school districts and
interested members of the public.
(e) Based on the measure of progress toward English language
proficiency under Section 29.065, the commissioner shall determine
which school districts offer the most effective bilingual education
and special language programs and make the information available as
provided by this section.
(f) The agency shall contract for the services of one or
more third-party contractors to develop a system of collecting and
evaluating best practices of school districts as provided by this
section. In addition to any other considerations required by law,
the agency must consider an applicant's demonstrated competence and
qualifications in analyzing school district practices in awarding a
contract under this subsection.
(g) The agency shall implement this section not later than
September 1, 2006. This subsection expires January 1, 2007.
SECTION 2D.02. Subchapter A, Chapter 11, Education Code, is
amended by adding Section 11.004 to read as follows:
Sec. 11.004. APPLICABILITY OF TITLE TO EXEMPLARY DISTRICTS
AND CAMPUSES. A school district or campus rated exemplary under
Section 39.072 is subject only to the prohibitions, restrictions,
and requirements of this title that apply to an open-enrollment
charter school under Section 12.104(b).
SECTION 2D.03. Section 25.005(b), Education Code, is
amended to read as follows:
(b) A reciprocity agreement must:
(1) address procedures for:
(A) transferring student records;
(B) awarding credit for completed course work;
and
(C) permitting a student to satisfy the
requirements of Section 39.025 through successful performance on
comparable end-of-course or other exit-level assessment
instruments administered in another state; and
(2) include appropriate criteria developed by the
agency.
SECTION 2D.04. Section 29.081(b), Education Code, is
amended to read as follows:
(b) Each district shall provide accelerated instruction to
a student enrolled in the district who has taken an end-of-course
[the secondary exit-level] assessment instrument administered
under Section 39.023(c) and has not performed satisfactorily on the
assessment instrument [each section] or who is at risk of dropping
out of school.
SECTION 2D.05. Section 29.202, Education Code, is amended
to read as follows:
Sec. 29.202. ELIGIBILITY. (a) In this section, "adequate
yearly progress standard" means a standard:
(1) determined by the commissioner and approved by the
United States Department of Education as provided by the No Child
Left Behind Act of 2001 (Pub. L. No. 107-110); and
(2) used to measure various indicators of educational
success to determine the progress of a campus towards academic
achievement.
(b) A student is eligible to receive a public education
grant or to attend another public school in the district in which
the student resides under this subchapter if the student is
assigned to attend a public school campus:
(1) at which 50 percent or more of the students did not
perform satisfactorily on an assessment instrument administered
under Section 39.023(a) or (c) in any two of the preceding three
years; [or]
(2) that was, at any time in the preceding three years,
considered low-performing under Section 39.132; or
(3) that has not met the adequate yearly progress
standard for the same indicator of educational success for the
preceding two years.
(c) [(b)] After a student has used a public education grant
to attend a school in a district other than the district in which
the student resides,[:
[(1)] the student does not become ineligible for the
grant if the school on which the student's initial eligibility is
based no longer meets the criteria under Subsection (b) [(a); and
[(2) the student becomes ineligible for the grant if
the student is assigned to attend a school that does not meet the
criteria under Subsection (a)].
SECTION 2D.06. Subchapter G, Chapter 29, Education Code, is
amended by adding Section 29.2021 to read as follows:
Sec. 29.2021. CONFLICT OF LAWS. To the extent of a conflict
between this subchapter and a provision of Section 1116, No Child
Left Behind Act of 2001 (20 U.S.C. Section 6316), as described by
Subsection (a), the No Child Left Behind Act of 2001 prevails.
SECTION 2D.07. Section 29.203(f), Education Code, is
amended to read as follows:
(f) The school district in which a student resides shall
provide each student attending a school in another district under
this subchapter transportation free of charge to and from the
school the student would otherwise attend, except as provided by
Section 1116, No Child Left Behind Act of 2001 (20 U.S.C. Section
6316).
SECTION 2D.08. Section 30.021(e), Education Code, is
amended to read as follows:
(e) The school shall cooperate with public and private
agencies and organizations serving students and other persons with
visual impairments in the planning, development, and
implementation of effective educational and rehabilitative service
delivery systems associated with educating students with visual
impairments. To maximize and make efficient use of state
facilities, funding, and resources, the services provided in this
area may include conducting a cooperative program with other
agencies to serve students who have graduated from high school by
completing all academic requirements applicable to students in
regular education, excluding satisfactory performance on the
end-of-course [exit-level] assessment instruments required by
commissioner rule under Section 39.025(a) [instrument], who are
younger than 22 years of age on September 1 of the school year and
who have identified needs related to vocational training,
independent living skills, orientation and mobility, social and
leisure skills, compensatory skills, or remedial academic skills.
SECTION 2D.09. Sections 39.023(a) and (c), Education Code,
are amended to read as follows:
(a) The agency shall adopt or develop appropriate
criterion-referenced assessment instruments designed to assess
essential knowledge and skills in reading, writing, mathematics,
social studies, and science. All students, except students
assessed under Subsection (b) or (l) or exempted under Section
39.027, shall be assessed in:
(1) mathematics, annually in grades three through
seven without the aid of technology and in grade [grades] eight
[through 11] with the aid of technology on any assessment
instruments that include algebra;
(2) reading, annually in grades three through eight
[nine];
(3) writing, including spelling and grammar, in grades
four and seven;
(4) [English language arts, in grade 10;
[(5)] social studies, in grade [grades] eight [and
10];
(5) [(6)] science, in grades five and[,] eight[, and
10]; and
(6) [(7)] any other subject and grade required by
federal law.
(c) The agency shall also adopt end-of-course [secondary
exit-level] assessment instruments for secondary-level courses in
Algebra I, Algebra II, Geometry, Biology, Chemistry, Physics,
Integrated Physics and Chemistry, English I, English II, English
III, World Geography, World History, and United States History. A
school district may adopt a policy that a student may not receive
course credit for a course listed in this subsection until the
student performs satisfactorily on the end-of-course assessment
for that course [designed to be administered to students in grade 11
to assess essential knowledge and skills in mathematics, English
language arts, social studies, and science. The mathematics
section must include at least Algebra I and geometry with the aid of
technology. The English language arts section must include at
least English III and must include the assessment of essential
knowledge and skills in writing. The social studies section must
include early American and United States history. The science
section must include at least biology and integrated chemistry and
physics. The assessment instruments must be designed to assess a
student's mastery of minimum skills necessary for high school
graduation and readiness to enroll in an institution of higher
education]. If a student is in a special education program under
Subchapter A, Chapter 29, the student's admission, review, and
dismissal committee shall determine whether any allowable
modification is necessary in administering to the student an
assessment instrument required under this subsection or whether the
student should be exempted under Section 39.027(a)(2). The State
Board of Education shall administer the assessment instruments.
The State Board of Education shall adopt a schedule for the
administration of end-of-course [secondary exit-level] assessment
instruments. Each student who did not perform satisfactorily on
any end-of-course [secondary exit-level] assessment instrument
when initially tested shall be given multiple opportunities to
retake that assessment instrument. [A student who performs at or
above a level established by the Texas Higher Education
Coordinating Board on the secondary exit-level assessment
instruments is exempt from the requirements of Section 51.306.]
SECTION 2D.10. Subchapter B, Chapter 39, Education Code, is
amended by adding Section 39.0232 to read as follows:
Sec. 39.0232. COMPUTER-ADAPTIVE ASSESSMENT. (a) The
agency shall provide for assessment instruments required under
Section 39.023 to be designed so that those assessment instruments
can be computer-adaptive.
(b) To the extent practicable and appropriate, the agency
shall require school districts to administer to students the
computer-adaptive assessment instruments.
(c) The agency shall implement this section not later than
March 1, 2006. This subsection expires September 1, 2006.
SECTION 2D.11. Section 39.025, Education Code, is amended
to read as follows:
Sec. 39.025. SECONDARY-LEVEL [EXIT-LEVEL] PERFORMANCE
REQUIRED. (a) The commissioner shall adopt rules specifying the
end-of-course assessment instruments for secondary-level courses
administered under Section 39.023(c) on which a student must
perform satisfactorily to receive a high school diploma. A student
may not receive a high school diploma until the student has
performed satisfactorily on those [the secondary exit-level]
assessment instruments [for English language arts, mathematics,
social studies, and science administered under Section 39.023(c)].
This subsection does not require a student to demonstrate readiness
to enroll in an institution of higher education.
(b) Each time an end-of-course [a secondary exit-level]
assessment instrument is administered, a student who has not been
given a high school diploma because of a failure to perform
satisfactorily on the assessment instrument for that subject area
may retake the assessment instrument.
(c) A student who has been denied a high school diploma
under Subsections (a) and (b) and who subsequently performs
satisfactorily on each necessary end-of-course [secondary
exit-level] assessment instrument shall be issued a high school
diploma.
(d) The commissioner shall by rule adopt a transition plan
to implement the amendments made by __.B. No. __, Acts of the 79th
Legislature, Regular Session, 2005, to this section and Sections
39.023(a) and (c) and 39.051(b)(5). The rules must provide for the
administration of end-of-course assessment instruments adopted
under Section 39.023(c) to begin as soon as practicable but not
later than the 2008-2009 school year. During the period under which
the transition to end-of-course assessment instruments is made:
(1) the commissioner may retain, administer, and use
for campus and district ratings under Subchapter D any assessment
instrument required by Section 39.023(a) or (c), as that section
existed before amendment by __.B. No. __, Acts of the 79th
Legislature, Regular Session, 2005; and
(2) the agency may defer releasing assessment
instrument questions and answer keys as required by Section
39.023(e) to the extent necessary to develop additional assessment
instruments.
(e) Rules adopted under Subsection (d) must require that
each student who will be subject to the requirements of Subsection
(a) is entitled to notice of the specific requirements applicable
to the student. Notice under this subsection must be provided not
later than the date the student enters the ninth grade. Subsection
(d) and this subsection expire September 1, 2009.
SECTION 2D.12. Subchapter B, Chapter 39, Education Code, is
amended by adding Section 39.0261 to read as follows:
Sec. 39.0261. COLLEGE PREPARATION ACHIEVEMENT ASSESSMENTS.
(a) In addition to the assessment instruments otherwise authorized
or required by this subchapter, a school district shall administer
to students in grades 8, 10, and 12 an established, valid, and
reliable system of nationally normed and curriculum-based
educational planning and achievement assessment instruments with
the following characteristics:
(1) an integrated series of standards and
curriculum-based achievement assessment instruments, with the
grade 12 assessment instrument currently accepted by this state's
colleges and universities for use in determining admissions; and
(2) a common content continuum and score scale in the
assessed areas of reading, English, mathematics, and science across
the assessment instruments administered at each grade level.
(b) The agency shall:
(1) select and approve vendors of the specific
assessment instruments administered under this section; and
(2) pay from its operating budget all costs associated
with administration of the assessment instruments.
(c) The agency shall compile the results of any assessment
instrument administered under this section and make the results
available through the Public Education Information Management
System (PEIMS).
SECTION 2D.13. Subchapter B, Chapter 39, Education Code, is
amended by adding Section 39.034 to read as follows:
Sec. 39.034. MEASURE OF VALUE-ADDED STUDENT ACHIEVEMENT ON
ASSESSMENT INSTRUMENTS. (a) The commissioner by rule shall adopt a
method by which the agency may measure value-added student
achievement by tracking changes in a student's performance from one
school year to the next on an assessment instrument required under
this subchapter.
(b) Each year, for each student who takes an assessment
instrument required under Section 39.023(a), (b), or (l), the
agency shall use the method adopted under Subsection (a) to compare
the student's results on the assessment instrument to the student's
results on any assessment instrument for that subject the student
has taken during the preceding school year.
(c) The agency shall maintain a record of the comparisons
made under this section. Each year the agency shall:
(1) provide the record to the school the student
attends; and
(2) provide to each teacher a record of all students
who were:
(A) assessed on an assessment instrument; and
(B) taught by that teacher in the subject for
which the assessment instrument was administered.
(d) The commissioner shall implement this section not later
than September 1, 2006. This subsection expires January 1, 2008.
SECTION 2D.14. Section 39.051(b), Education Code, as
amended by Chapters 433 and 805, Acts of the 78th Legislature,
Regular Session, 2003, is reenacted and amended to read as follows:
(b) Performance on the indicators adopted under this
section shall be compared to state-established standards. The
degree of change from one school year to the next in performance on
each indicator adopted under this section shall also be considered.
The indicators must be based on information that is disaggregated
by race, ethnicity, gender, and socioeconomic status and must
include:
(1) the results of assessment instruments required
under Sections 39.023(a), (c), and (l), aggregated by grade level
and subject area;
(2) dropout rates, including dropout rates and
district completion rates for grade levels 9 through 12, computed
in accordance with standards and definitions adopted by the
National Center for Education Statistics of the United States
Department of Education;
(3) high school graduation rates, computed in
accordance with standards and definitions adopted in compliance
with the [federal] No Child Left Behind Act of 2001 (Pub. L. No.
107-110);
(4) student attendance rates;
(5) the percentage of graduating students who attain
scores on the end-of-course [secondary exit-level] assessment
instruments required under Subchapter B that are equivalent to a
passing score on the assessment [test] instrument required under
Section 51.3062 [51.306];
(6) the percentage of graduating students who meet the
course requirements established for the recommended high school
program by State Board of Education rule;
(7) the measure of progress toward English language
proficiency under Section 29.065, for students of limited English
proficiency, as defined by Section 29.052;
(8) value-added student achievement, as measured
under Section 39.034;
(9) the results of the Scholastic Assessment Test
(SAT), the American College Test (ACT), articulated postsecondary
degree programs described by Section 61.852, and certified
workforce training programs described by Chapter 311, Labor Code;
(10) [(8)] the percentage of students, aggregated by
grade level, provided accelerated instruction under Section
28.0211(c), the results of assessments administered under that
section, the percentage of students promoted through the grade
placement committee process under Section 28.0211, the subject of
the assessment instrument on which each student failed to perform
satisfactorily, and the performance of those students in the school
year following that promotion on the assessment instruments
required under Section 39.023;
(11) [(9)] for students who have failed to perform
satisfactorily on an assessment instrument required under Section
39.023(a) or (c), the numerical progress of those students on
subsequent assessment instruments required under those sections,
aggregated by grade level and subject area;
(12) [(10)] the percentage of students exempted, by
exemption category, from the assessment program generally
applicable under this chapter; [and]
(13) [(11)] the percentage of students of limited
English proficiency exempted from the administration of an
assessment instrument under Sections 39.027(a)(3) and (4); and
(14) the percentage of students in a special education
program under Subchapter A, Chapter 29, assessed through assessment
instruments developed or adopted under Section 39.023(b).
SECTION 2D.15. Section 39.051(d), Education Code, is
amended to read as follows:
(d) Annually, the commissioner shall define exemplary,
recognized, and unacceptable performance for each academic
excellence indicator included under Subsections (b)(1) through (9)
[(6)] and shall project the standards for each of those levels of
performance for succeeding years. For the indicator under
Subsection (b)(10) [(b)(7)], the commissioner shall define
exemplary, recognized, and unacceptable performance based on
student performance for the period covering both the current and
preceding academic years. In defining exemplary, recognized, and
unacceptable performance for the indicators under Subsections
(b)(2) and (4) [(3)], the commissioner may not consider as a dropout
or as a student who has failed to attend school a student whose
failure to attend school results from:
(1) the student's expulsion under Section 37.007; and
(2) as applicable:
(A) adjudication as having engaged in delinquent
conduct or conduct indicating a need for supervision, as defined by
Section 51.03, Family Code; or
(B) conviction of and sentencing for an offense
under the Penal Code.
SECTION 2D.16. Section 39.052(b), Education Code, is
amended to read as follows:
(b) The report card shall include the following
information:
(1) where applicable, the academic excellence
indicators adopted under Sections 39.051(b)(1) through (12) [(9)];
(2) average class size by grade level and subject;
(3) the administrative and instructional costs per
student, computed in a manner consistent with Section 44.0071;
(4) a summary of the district's significant
noninstructional expenditures, as determined under Section
44.0072; and
(5) [(4)] the district's instructional expenditures
ratio and instructional employees ratio computed under Section
44.0071, and the statewide average of those ratios, as determined
by the commissioner.
SECTION 2D.17. Section 39.131, Education Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) If a district does not satisfy the accreditation
criteria, the commissioner shall take any of the following actions,
listed in order of severity, to the extent the commissioner
determines necessary:
(1) issue public notice of the deficiency to the board
of trustees;
(2) order a hearing conducted by the board of trustees
of the district for the purpose of notifying the public of the
unacceptable performance, the improvements in performance expected
by the agency, and the sanctions that may be imposed under this
section if the performance does not improve;
(3) order the preparation of a student achievement
improvement plan that addresses each academic excellence indicator
for which the district's performance is unacceptable, the
submission of the plan to the commissioner for approval, and
implementation of the plan;
(4) order a hearing to be held before the commissioner
or the commissioner's designee at which the president of the board
of trustees of the district and the superintendent shall appear and
explain the district's low performance, lack of improvement, and
plans for improvement;
(5) arrange an on-site investigation of the district;
(6) appoint an agency monitor to participate in and
report to the agency on the activities of the board of trustees or
the superintendent;
(7) appoint a conservator to oversee the operations of
the district;
(8) appoint a management team to direct the operations
of the district in areas of unacceptable performance or require the
district to obtain certain services under a contract with another
person;
(9) if a district has been rated as academically
unacceptable for a period of one year or more, appoint a board of
managers to exercise the powers and duties of the board of trustees;
(10) if a district has been rated as academically
unacceptable for a period of two years or more:
(A) annex the district to one or more adjoining
districts under Section 13.054; or
(B) in the case of a home-rule school district
[or open-enrollment charter school], order closure of all programs
operated under the district's [or school's] charter; or
(11) if a district has been rated as academically
unacceptable for a period of two years or more due to the district's
dropout rates, impose sanctions designed to improve high school
completion rates, including:
(A) ordering the development of a dropout
prevention plan for approval by the commissioner;
(B) restructuring the district or appropriate
school campuses to improve identification of and service to
students who are at risk of dropping out of school, as defined by
Section 29.081;
(C) ordering lower student-to-counselor ratios
on school campuses with high dropout rates; and
(D) ordering the use of any other intervention
strategy effective in reducing dropout rates, including mentor
programs and flexible class scheduling.
(c) The commissioner shall order the closure of all programs
operated under the charter of an open-enrollment charter school if
a majority of the campuses operated by the charter holder have
received an unsatisfactory rating as determined by the commissioner
for a period of two years or more.
SECTION 2D.18. Section 39.132, Education Code, is amended
to read as follows:
Sec. 39.132. SANCTIONS FOR CAMPUSES. (a) If a campus
performance is below any standard under Section 39.073(b), the
campus is considered a low-performing campus. The commissioner may
permit the campus to participate in an innovative redesign of the
campus to improve campus performance or may take any of the other
following actions, listed in order of severity, to the extent the
commissioner determines necessary:
(1) issue public notice of the deficiency to the board
of trustees;
(2) order a hearing conducted by the board of trustees
at the campus for the purpose of:
(A) notifying the public of the unacceptable
performance, the improvements in performance expected by the
agency, and the sanctions that may be imposed under this section if
the performance does not improve within a designated period of
time; and
(B) soliciting public comment on the initial
steps being taken to improve performance;
(3) order the preparation of a report regarding the
parental involvement program at the campus and a plan describing
strategies for improving parental involvement at the campus;
(4) order the preparation of a report regarding the
effectiveness of the district- and campus-level planning and
decision-making committees established under Subchapter F, Chapter
11, and a plan describing strategies for improving the
effectiveness of those committees;
(5) order the preparation of a student achievement
improvement plan that addresses each academic excellence indicator
for which the campus's performance is unacceptable, the submission
of the plan to the commissioner for approval, and implementation of
the plan;
(6) order a hearing to be held before the commissioner
or the commissioner's designee at which the president of the board
of trustees, the superintendent, and the campus principal shall
appear and explain the campus's low performance, lack of
improvement, and plans for improvement; or
(7) appoint a special campus intervention team to:
(A) conduct a comprehensive on-site evaluation
of the campus to determine the cause for the campus's low
performance and lack of progress;
(B) recommend actions, including reallocation of
resources and technical assistance, changes in school procedures or
operations, staff development for instructional and administrative
staff, intervention for individual administrators or teachers,
waivers from state statute or rule, or other actions the team
considers appropriate;
(C) assist in the development of a campus plan
for student achievement; and
(D) assist the commissioner in monitoring the
progress of the campus in implementing the campus plan for
improvement of student achievement.
(b) If[; or
[(8) if] a campus has been a low-performing campus for
a period of one year or more, the commissioner shall require the
campus to take the actions described by Subsections (a)(1), (2),
and (5) [appoint a board of managers composed of residents of the
district to exercise the powers and duties of the board of trustees
of the district in relation to the campus].
(c) [(b)] If a campus has been a low-performing campus for a
period of two consecutive years or more:
(1) a student assigned to attend the campus is
eligible to transfer to another campus as provided by Subchapter G,
Chapter 29; and
(2)[,] the commissioner shall order the closure of the
district or charter program on the campus or reconstitute the
campus.
(d) In reconstituting a [the] campus under Subsection (c),
the commissioner shall appoint a special management [campus
intervention] team to supervise the reconstitution. The management
team shall decide [be assembled for the purpose of deciding] which
educators may be retained at that campus. A principal who has been
employed by the campus in that capacity during the two-year
low-performing period may not be retained at that campus. A teacher
of a subject assessed by an assessment instrument under Section
39.023 may be retained only if the teacher has a record of
value-added student achievement as measured under Section 39.034.
If an educator is not retained, the educator may be assigned to
another position in the district.
(e) The special management team shall:
(1) implement the best practices of campuses for
curriculum development and classroom instruction, including
bilingual education and special education programs, if
appropriate, and business practices; and
(2) provide technical assistance based on
scientifically based research, including data analysis,
identification and implementation strategies, and budget analysis,
to strengthen and improve the instructional program at the campus.
SECTION 2D.19. Section 39.183, Education Code, is amended
to read as follows:
Sec. 39.183. REGIONAL AND DISTRICT LEVEL REPORT. The
agency shall prepare and deliver to the governor, the lieutenant
governor, the speaker of the house of representatives, each member
of the legislature, the Legislative Budget Board, and the clerks of
the standing committees of the senate and house of representatives
with primary jurisdiction over the public school system a regional
and district level report covering the preceding two school years
and containing:
(1) a summary of school district compliance with the
student/teacher ratios and class-size limitations prescribed by
Sections 25.111 and 25.112, including:
(A) the number of campuses and classes at each
campus granted an exception from Section 25.112; and
(B) the performance rating under Subchapter D of
each campus granted an exception from Section 25.112;
(2) a summary of the exemptions and waivers granted to
school districts under Section 7.056 or 11.004 [39.112] and a
review of the effectiveness of each campus or district following
deregulation;
(3) an evaluation of the performance of the system of
regional education service centers based on the indicators adopted
under Section 8.101 and client satisfaction with services provided
under Subchapter B, Chapter 8;
(4) an evaluation of accelerated instruction programs
offered under Section 28.006, including an assessment of the
quality of such programs and the performance of students enrolled
in such programs; and
(5) the number of classes at each campus that are
currently being taught by individuals who are not certified in the
content areas of their respective classes.
SECTION 2D.20. Section 39.202(b), Education Code, is
amended to read as follows:
(b) The system must include uniform indicators adopted by
the commissioner by which to measure a district's financial
management performance. In adopting uniform indicators, the
commissioner shall:
(1) identify indicators the commissioner considers
critical; and
(2) include in the indicators identified under
Subdivision (1) an indicator relating to a district's instructional
costs.
SECTION 2D.21. The heading to Section 39.203, Education
Code, is amended to read as follows:
Sec. 39.203. DISTRICT REPORTING.
SECTION 2D.22. Section 39.203(b), Education Code, is
amended to read as follows:
(b) The annual financial management report must include:
(1) a description of the district's financial
management performance based on a comparison, provided by the
agency, of the district's performance on the indicators adopted
under Section 39.202(b) to:
(A) state-established standards; and
(B) the district's previous performance on the
indicators; [and]
(2) any descriptive information required by the
commissioner; and
(3) a total sum of expenditures made by the district
reconciled with a detailed statement of all expenditures made, by
category, as prescribed by the commissioner.
SECTION 2D.23. Subchapter I, Chapter 39, Education Code, is
amended by adding Section 39.2031 to read as follows:
Sec. 39.2031. CAMPUS REPORTING. (a) The commissioner
shall develop, as part of the system under this subchapter, a
reporting procedure under which:
(1) each campus is required to prepare and distribute
an annual financial management report; and
(2) the report is made easily accessible to interested
members of the public.
(b) The annual financial management report must include:
(1) any difference between the foundation school
program allotments received and actual campus expenditures; and
(2) separate reporting of:
(A) the actual expenditures for personnel
working on the campus;
(B) the operation and maintenance of the campus;
and
(C) services that cannot be allocated at the
campus level, including:
(i) any shared services by campuses; and
(ii) support services, administrative
assistance, and management services provided at the district level.
(c) Expenditures reported under Subsection (b)(2)(C) must
be identified as administrative, instructional, or support in
purpose.
SECTION 2D.24. Subchapter A, Chapter 44, Education Code, is
amended by adding Section 44.0072 to read as follows:
Sec. 44.0072. NONINSTRUCTIONAL EXPENDITURES. (a) Each
fiscal year, a school district shall compute and report through the
Public Education Information Management System (PEIMS) to the
commissioner:
(1) the district's significant noninstructional
expenditures for the preceding fiscal year, as determined by the
commissioner; and
(2) any money spent by the district during the
preceding fiscal year on dues or contributions to a
noninstructional group, club, committee, organization, or
association, including dues or contributions used for the purpose
of lobbying.
(b) The commissioner may determine, in a manner consistent
with Section 44.0071, whether an expenditure is noninstructional.
SECTION 2D.25. Section 51.3062(q), Education Code, is
amended to read as follows:
(q) A student who has achieved scores [a score] set by the
board on end-of-course assessment instruments [an exit-level
assessment instrument] required under Section 39.023 is exempt from
the requirements of this section. The exemption is effective for
the three-year period following the date a student takes the last
assessment instrument required for purposes of this section and
achieves the standard set by the board. This subsection does not
apply during any period for which the board designates the
end-of-course assessment instruments [exit-level assessment
instrument] required under Section 39.023 as the primary assessment
instrument under this section, except that the three-year period
described by this subsection remains in effect for students who
qualify for an exemption under this subsection [section] before
that period.
SECTION 2D.26. A reference in the Education Code to an
end-of-course assessment instrument administered under Section
39.023(c), Education Code, includes a secondary exit-level
assessment instrument administered under that section as provided
by Section 39.025(d), Education Code, as added by this Act.
SECTION 2D.27. (a) Not later than the 2006-2007 school
year, the Texas Education Agency shall collect information
concerning:
(1) the measure of progress toward English language
proficiency for purposes of Section 39.051(b)(7), Education Code,
as amended by this Act; and
(2) value-added student achievement for purposes of
Section 39.051(b)(8), Education Code, as amended by this Act.
(b) Not later than the 2007-2008 school year, the Texas
Education Agency shall include, in evaluating the performance of
school districts, campuses, and open-enrollment charter schools
under Subchapter D, Chapter 39, Education Code:
(1) the measure of progress toward English language
proficiency under Section 39.051(b)(7), Education Code, as amended
by this Act; and
(2) value-added student achievement under Section
39.051(b)(8), Education Code, as amended by this Act.
SECTION 2D.28. The commissioner of education shall develop
and implement the reporting procedures for campuses to prepare and
distribute annual financial management reports under Section
39.2031, Education Code, as added by this Act, not later than September 1, 2006.
PART E. BILINGUAL EDUCATION AND SPECIAL LANGUAGE PROGRAMS
SECTION 2E.01. Section 28.006(j), Education Code, is
amended to read as follows:
(j) No more than 15 percent of the funds certified by the
commissioner under Subsection (i) may be spent on indirect costs.
The commissioner shall evaluate the programs that fail to meet the
standard of performance under Section 39.051(b)(10) [39.051(b)(7)]
and may implement sanctions under Subchapter G, Chapter 39. The
commissioner may audit the expenditures of funds appropriated for
purposes of this section. The use of the funds appropriated for
purposes of this section shall be verified as part of the district
audit under Section 44.008.
SECTION 2E.02. Section 29.056(g), Education Code, is
amended to read as follows:
(g) A district may transfer a student of limited English
proficiency out of a bilingual education or special language
program for the first time or a subsequent time if the student is
able to participate equally in a regular all-English instructional
program as determined by:
(1) tests administered at the end of each school year
to determine the extent to which the student has developed oral and
written language proficiency and specific language skills in both
the student's primary language and English;
(2) satisfactory performance on the reading
assessment instrument under Section 39.023(a) or the English I or
II assessment instrument under Section 39.023(c), as applicable,
with the assessment instrument administered in English, or, if the
student is enrolled in the first or second grade, an achievement
score at or above the 40th percentile in the reading and language
arts sections of an English standardized test approved by the
agency; and
(3) other indications of a student's overall progress,
including criterion-referenced test scores, subjective teacher
evaluation, and parental evaluation.
SECTION 2E.03. Subchapter B, Chapter 29, Education Code, is
amended by adding Section 29.065 to read as follows:
Sec. 29.065. MEASURE OF PROGRESS TOWARD ENGLISH LANGUAGE
PROFICIENCY. The commissioner by rule shall develop a longitudinal
measure of progress toward English language proficiency under which
a student of limited English proficiency is evaluated from the time
the student enters public school until, for two consecutive school
years, the student scores at a specific level determined by the
commissioner on the reading assessment instrument under Section
39.023(a) or the English I or II assessment instrument under
Section 39.023(c), as applicable. The commissioner shall:
(1) as part of the measure of progress, include
student advancement from one proficiency level to a higher level
under the reading proficiency in English assessment system
developed under Section 39.027(e) and from the highest level under
that assessment system to the level determined by the commissioner
under this section on the reading assessment instrument under
Section 39.023(a) or the English I or II assessment instrument
under Section 39.023(c), as applicable; and
(2) to the extent practicable in developing the
measure of progress, use applicable research and analysis done in
developing an annual measurable achievement objective as required
by Section 3122, No Child Left Behind Act of 2001 (20 U.S.C. Section
6842).
SECTION 2E.04. Sections 39.072(b) and (c), Education Code,
are amended to read as follows:
(b) The academic excellence indicators adopted under
Sections 39.051(b)(1) through (10) [(7)] and the district's current
special education compliance status with the agency shall be the
main considerations of the agency in the rating of the district
under this section. Additional criteria in the rules may include
consideration of:
(1) compliance with statutory requirements and
requirements imposed by rule of the State Board of Education under
specific statutory authority that relate to:
(A) reporting data through the Public Education
Information Management System (PEIMS);
(B) the high school graduation requirements
under Section 28.025; or
(C) an item listed in Sections
7.056(e)(3)(C)-(I) that applies to the district;
(2) the effectiveness of the district's programs for
special populations; and
(3) the effectiveness of the district's career and
technology programs.
(c) The agency shall evaluate against state standards and
shall, not later than August 1 of each year, report the performance
of each campus in a district and each open-enrollment charter
school on the basis of the campus's performance on the indicators
adopted under Sections 39.051(b)(1) through (10) [(7)].
Consideration of the effectiveness of district programs under
Subsection (b)(2) or (3) must be based on data collected through the
Public Education Information Management System for purposes of
accountability under this chapter and include the results of
assessments required under Section 39.023.
SECTION 2E.05. Sections 39.073(a) and (b), Education Code,
are amended to read as follows:
(a) The agency shall annually review the performance of each
district and campus on the indicators adopted under Sections
39.051(b)(1) through (10) [(7)] and determine if a change in the
accreditation status of the district is warranted. The
commissioner may determine how all indicators adopted under Section
39.051(b) may be used to determine accountability ratings and to
select districts and campuses for acknowledgment.
(b) Each annual review shall include an analysis of the
indicators under Sections 39.051(b)(1) through (10) [(6)] to
determine district and campus performance in relation to:
(1) standards established for each indicator;
(2) required improvement as defined under Section
39.051(c); and
(3) comparable improvement as defined by Section
39.051(c).
SECTION 2E.06. Section 39.074(e), Education Code, is
amended to read as follows:
(e) If an annual review indicates low performance on one or
more of the indicators under Sections 39.051(b)(1) through (10)
[(7)] of one or more campuses in a district, the agency may conduct
an on-site evaluation of those campuses only.
PART F. HIGH ACADEMIC ACHIEVEMENT PROGRAMS
SECTION 2F.01. Subchapter D, Chapter 29, Education Code, is
amended by adding Section 29.127 to read as follows:
Sec. 29.127. TEXAS GOVERNOR'S SCHOOLS. (a) In this
section, "public senior college or university" has the meaning
assigned by Section 61.003.
(b) A Texas governor's school is a summer residential
program for high-achieving high school students. A Texas
governor's school program may include any or all of the following
educational curricula:
(1) mathematics and science;
(2) humanities; or
(3) leadership and public policy.
(c) A public senior college or university may apply to the
commissioner to administer a Texas governor's school program under
this section. The commissioner shall give preference to a public
senior college or university that applies in cooperation with a
nonprofit association. The commissioner shall give additional
preference if the nonprofit association receives foundation school
funds that may be used to finance the program.
(d) The commissioner may approve an application under this
section only if the applicant:
(1) applies within the period and in the manner
required by rule adopted by the commissioner;
(2) submits a program proposal that includes:
(A) a curriculum consistent with Subsection (b);
(B) criteria for selecting students to
participate in the program;
(C) a statement of the length of the program,
which must be at least three weeks; and
(D) a statement of the location of the program;
(3) agrees to use a grant under this section only for
the purpose of administering a program; and
(4) satisfies any other requirements established by
rule adopted by the commissioner.
(e) From funds appropriated for the purpose, the
commissioner may make a grant to pay the costs of administering a
Texas governor's school program to a public senior college or
university whose application is approved under this section.
(f) The commissioner may adopt other rules necessary to
implement this section.
SECTION 2F.02. Section 39.051, Education Code, is amended
by adding Subsection (b-1) to read as follows:
(b-1) In addition to the indicators adopted under
Subsection (b), the State Board of Education shall adopt the
following indicators relating to high academic achievement to be
considered in assigning a district an exemplary performance rating
under Section 39.072:
(1) the percentage of students, disaggregated by race,
ethnicity, gender, and socioeconomic status, who are enrolled in an
educational program for gifted and talented students;
(2) student results on advanced placement and
international baccalaureate examinations, including the percentage
of students scoring three or higher on the advanced placement
examinations and the percentage of students scoring four or higher
on the international baccalaureate examinations;
(3) student results on the Scholastic Assessment Test
(SAT) and the American College Test (ACT);
(4) the percentage of students scoring in the top five
percent on nationally recognized norm-referenced assessment
instruments;
(5) the percentage of high school students enrolled in
an advanced course;
(6) the percentage of students achieving commended
performance, as determined by the State Board of Education, on an
assessment instrument required under Section 39.023(a), (c), or
(l);
(7) the percentage of students completing the
recommended or advanced high school program established under
Section 28.025; and
(8) the percentage of the district's graduating
students who enroll in an institution of higher education for the
academic year following graduation.
SECTION 2F.03. Section 39.053(a), Education Code, is
amended to read as follows:
(a) Each board of trustees shall publish an annual report
describing the educational performance of the district and of each
campus in the district that includes uniform student performance
and descriptive information as determined under rules adopted by
the commissioner. The annual report must also include:
(1) campus performance objectives established under
Section 11.253 and the progress of each campus toward those
objectives, which shall be available to the public;
(2) the performance rating for the district as
provided under Section 39.072(a) and the performance rating of each
campus in the district as provided under Section 39.072(c);
(3) the district's current special education
compliance status with the agency;
(4) a statement of the number, rate, and type of
violent or criminal incidents that occurred on each district
campus, to the extent permitted under the Family Educational Rights
and Privacy Act of 1974 (20 U.S.C. Section 1232g);
(5) information concerning school violence prevention
and violence intervention policies and procedures that the district
is using to protect students; [and]
(6) the findings that result from evaluations
conducted under the Safe and Drug-Free Schools and Communities Act
of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent
amendments; [and]
(7) information received under Section 51.403(e) for
each high school campus in the district, presented in a form
determined by the commissioner; and
(8) information relating to high academic achievement
in the district, as determined by the district's performance on the
indicators under Section 39.051(b-1).
SECTION 2F.04. Section 39.072, Education Code, is amended
by adding Subsection (c-1) to read as follows:
(c-1) For purposes of assigning a district, campus, or
open-enrollment charter school a performance rating of exemplary
under this section, the agency shall consider the district's,
campus's, or school's performance on the indicators relating to
high academic achievement under Section 39.051(b-1). This
information is in addition to any other indicators or factors
considered by the agency in assigning a performance rating.
SECTION 2F.05. Section 39.0721(c), Education Code, is
amended to read as follows:
(c) The performance standards on which a gold performance
rating is based should include:
(1) student proficiency on:
(A) assessment instruments administered under
Sections 39.023(a), (c), and (l); and
(B) other measures of proficiency determined by
the commissioner;
(2) student performance on one or more nationally
recognized norm-referenced assessment instruments;
(3) improvement in student performance;
(4) performance on indicators relating to high
academic achievement under Section 39.051(b-1);
(5) [(4)] in the case of middle or junior high school
campuses, student proficiency in mathematics, including algebra;
and
(6) [(5)] in the case of high school campuses:
(A) the extent to which graduating students are
academically prepared to attend institutions of higher education;
(B) the percentage of students who take advanced
placement tests and student performance on those tests; and
(C) the percentage of students who take and
successfully complete advanced academic courses or college-level
course work offered through dual credit programs provided under
agreements between high schools and institutions of higher
education.
SECTION 2F.06. Section 39.182(a), Education Code, is
amended to read as follows:
(a) Not later than December 1 of each year, the agency shall
prepare and deliver to the governor, the lieutenant governor, the
speaker of the house of representatives, each member of the
legislature, the Legislative Budget Board, and the clerks of the
standing committees of the senate and house of representatives with
primary jurisdiction over the public school system a comprehensive
report covering the preceding school year and containing:
(1) an evaluation of the achievements of the state
educational program in relation to the statutory goals for the
public education system under Section 4.002;
(2) an evaluation of the status of education in the
state as reflected by the academic excellence indicators adopted
under Section 39.051;
(3) a summary compilation of overall student
performance on academic skills assessment instruments required by
Section 39.023 with the number and percentage of students exempted
from the administration of those instruments and the basis of the
exemptions, aggregated by grade level, subject area, campus, and
district, with appropriate interpretations and analysis, and
disaggregated by race, ethnicity, gender, and socioeconomic
status;
(4) a summary compilation of overall performance of
students placed in a disciplinary [an] alternative education
program established under Section 37.008 on academic skills
assessment instruments required by Section 39.023 with the number
of those students exempted from the administration of those
instruments and the basis of the exemptions, aggregated by
district, grade level, and subject area, with appropriate
interpretations and analysis, and disaggregated by race,
ethnicity, gender, and socioeconomic status;
(5) a summary compilation of overall performance of
students at risk of dropping out of school, as defined by Section
29.081(d), on academic skills assessment instruments required by
Section 39.023 with the number of those students exempted from the
administration of those instruments and the basis of the
exemptions, aggregated by district, grade level, and subject area,
with appropriate interpretations and analysis, and disaggregated
by race, ethnicity, gender, and socioeconomic status;
(6) an evaluation of the correlation between student
grades and student performance on academic skills assessment
instruments required by Section 39.023;
(7) a statement of the dropout rate of students in
grade levels 7 through 12, expressed in the aggregate and by grade
level, and a statement of the completion rates of students for grade
levels 9 through 12;
(8) a statement of:
(A) the completion rate of students who enter
grade level 9 and graduate not more than four years later;
(B) the completion rate of students who enter
grade level 9 and graduate, including students who require more
than four years to graduate;
(C) the completion rate of students who enter
grade level 9 and not more than four years later receive a high
school equivalency certificate;
(D) the completion rate of students who enter
grade level 9 and receive a high school equivalency certificate,
including students who require more than four years to receive a
certificate; and
(E) the number and percentage of all students who
have not been accounted for under Paragraph (A), (B), (C), or (D);
(9) a statement of the projected cross-sectional and
longitudinal dropout rates for grade levels 9 through 12 for the
next five years, assuming no state action is taken to reduce the
dropout rate;
(10) a description of a systematic, measurable plan
for reducing the projected cross-sectional and longitudinal
dropout rates to five percent or less for the 1997-1998 school year;
(11) a summary of the information required by Section
29.083 regarding grade level retention of students and information
concerning:
(A) the number and percentage of students
retained; and
(B) the performance of retained students on
assessment instruments required under Section 39.023(a);
(12) information, aggregated by district type and
disaggregated by race, ethnicity, gender, and socioeconomic
status, on:
(A) the number of students placed in a
disciplinary [an] alternative education program established under
Section 37.008;
(B) the average length of a student's placement
in a disciplinary [an] alternative education program established
under Section 37.008;
(C) the academic performance of students on
assessment instruments required under Section 39.023(a) during the
year preceding and during the year following placement in a
disciplinary [an] alternative education program; and
(D) the dropout rates of students who have been
placed in a disciplinary [an] alternative education program
established under Section 37.008;
(13) a list of each school district or campus that does
not satisfy performance standards, with an explanation of the
actions taken by the commissioner to improve student performance in
the district or campus and an evaluation of the results of those
actions;
(14) an evaluation of the status of the curriculum
taught in public schools, with recommendations for legislative
changes necessary to improve or modify the curriculum required by
Section 28.002;
(15) a description of all funds received by and each
activity and expenditure of the agency;
(16) a summary and analysis of the instructional
expenditures ratios and instructional employees ratios of school
districts computed under Section 44.0071;
(17) a summary of the effect of deregulation,
including exemptions and waivers granted under Section 7.056 or
11.004 [39.112];
(18) a statement of the total number and length of
reports that school districts and school district employees must
submit to the agency, identifying which reports are required by
federal statute or rule, state statute, or agency rule, and a
summary of the agency's efforts to reduce overall reporting
requirements;
(19) a list of each school district that is not in
compliance with state special education requirements, including:
(A) the period for which the district has not
been in compliance;
(B) the manner in which the agency considered the
district's failure to comply in determining the district's
accreditation status; and
(C) an explanation of the actions taken by the
commissioner to ensure compliance and an evaluation of the results
of those actions;
(20) a comparison of the performance of
open-enrollment charter schools and school districts on the
academic excellence indicators specified in Section 39.051(b) and
accountability measures adopted under Section 39.051(g), with a
separately aggregated comparison of the performance of
open-enrollment charter schools predominantly serving students at
risk of dropping out of school, as defined by Section 29.081(d),
with the performance of school districts; [and]
(21) a statement of the percentage of students scoring
at the proficient and advanced levels on the National Assessment of
Educational Progress; and
(22) any additional information considered important
by the commissioner or the State Board of Education.
SECTION 2F.O7. (a) Not later than the 2006-2007 school
year, the Texas Education Agency shall collect information
concerning high academic achievement for purposes of Section
39.051(b-1), Education Code, as added by this Act.
(b) Not later than the 2007-2008 school year, the Texas
Education Agency shall include information concerning high
academic achievement for purposes of Section 39.051(b-1),
Education Code, as added by this Act, in evaluating the performance
of school districts, campuses, and open-enrollment charter schools
under Subchapter D, Chapter 39, Education Code.
(c) Not later than the 2007-2008 school year, the Texas
Education Agency shall include the information required by Section
39.182(a)(21), Education Code, as amended by this Act, in the
agency's comprehensive annual report under Section 39.182,
Education Code.
ARTICLE 3. CONFORMING AMENDMENTS
SECTION 3.01. Section 7.024(a), Education Code, is amended
to read as follows:
(a) The investment capital fund consists of money
appropriated by the legislature for that purpose [transferred to
the fund as provided by Section 42.152(l)]. The agency shall
administer the fund. The purposes of this fund are to assist
eligible public schools to implement practices and procedures
consistent with deregulation and school restructuring in order to
improve student achievement and to help schools identify and train
parents and community leaders who will hold the school and the
school district accountable for achieving high academic standards.
SECTION 3.02. Section 7.055(b)(34), Education Code, is
amended to read as follows:
(34) The commissioner shall perform duties in
connection with equalization actions [the equalized wealth level]
under Chapter 41.
SECTION 3.03. 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 teaching each subject
area assessed under Section 39.023;
(2) training and assistance in providing:
(A) each program that qualifies for a funding
allotment under Section 42.151, 42.152, or 42.153[, or 42.156]; or
(B) a gifted and talented program under
Subchapter D, Chapter 29;
(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 3.04. Section 11.158(a), Education Code, is amended
to read as follows:
(a) The board of trustees of an independent school district
may require payment of:
(1) a fee for materials used in any program in which
the resultant product in excess of minimum requirements becomes, at
the student's option, the personal property of the student, if the
fee does not exceed the cost of materials;
(2) membership dues in student organizations or clubs
and admission fees or charges for attending extracurricular
activities, if membership or attendance is voluntary;
(3) a security deposit for the return of materials,
supplies, or equipment;
(4) a fee for personal physical education and athletic
equipment and apparel, although any student may provide the
student's own equipment or apparel if it meets reasonable
requirements and standards relating to health and safety
established by the board;
(5) a fee for items of personal use or products that a
student may purchase at the student's option, such as student
publications, class rings, annuals, and graduation announcements;
(6) a fee specifically permitted by any other statute;
(7) a fee for an authorized voluntary student health
and accident benefit plan;
(8) a reasonable fee, not to exceed the actual annual
maintenance cost, for the use of musical instruments and uniforms
owned or rented by the district;
(9) a fee for items of personal apparel that become the
property of the student and that are used in extracurricular
activities;
(10) a parking fee or a fee for an identification card;
(11) a fee for a driver training course, not to exceed
the actual district cost per student in the program for the current
school year;
(12) a fee for a course offered for credit that
requires the use of facilities not available on the school premises
or the employment of an educator who is not part of the school's
regular staff, if participation in the course is at the student's
option;
(13) a fee for a course offered during summer school,
except that the board may charge a fee for a course required for
graduation only if the course is also offered without a fee during
the regular school year;
(14) a reasonable fee for transportation of a student
who lives within two miles of the school the student attends to and
from that school[, except that the board may not charge a fee for
transportation for which the school district receives funds under
Section 42.155(d)]; or
(15) a reasonable fee, not to exceed $50, for costs
associated with an educational program offered outside of regular
school hours through which a student who was absent from class
receives instruction voluntarily for the purpose of making up the
missed instruction and meeting the level of attendance required
under Section 25.092.
SECTION 3.05. Section 12.013(b), Education Code, is amended
to read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that is considered
low-performing under Section 39.132;
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 42, and 43;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability under
Subchapters B, C, D, and G, Chapter 39;
(Q) equalization [equalized wealth] under
Section 42.401 [Chapter 41];
(R) a bond or other obligation or tax rate under
Chapters 42, 43, and 45; and
(S) purchasing under Chapter 44.
SECTION 3.06. Section 12.106(a), Education Code, is amended
to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 as if the
school were a school district without a tier one local share for
purposes of Section 42.306 [42.253] and without any local revenue
("LR") for purposes of Section 42.252 [42.302]. In determining
funding for an open-enrollment charter school:
(1) the adjustment [, adjustments] under Section
42.301 is [Sections 42.102, 42.103, 42.104, and 42.105 and the
district enrichment tax rate ("DTR") under Section 42.302 are based
on] the [average] adjustment, if any, for the school district in
which the school is located;
(2) the adjustments under Sections 42.302 and 42.303
are the average adjustments under those sections for the state; and
(3) the district enrichment tax rate under Section
42.252 is the average district enrichment tax rate for the state.
SECTION 3.07. Section 13.054(f), Education Code, is amended
to read as follows:
(f) For five years beginning with the school year in which
the annexation occurs, the commissioner shall annually adjust the
local share [fund assignment] of a district to which territory is
annexed under this section by multiplying the enlarged district's
local share [fund assignment] computed under Section 42.306
[42.252] by a fraction, the numerator of which is the number of
students residing in the district preceding the date of the
annexation and the denominator of which is the number of students
residing in the district as enlarged on the date of the annexation.
SECTION 3.08. Sections 13.282(a) and (b), Education Code,
are amended to read as follows:
(a) The amount of incentive aid payments may not exceed the
difference between:
(1) the sum of the entitlements computed under Section
42.313 [42.253] that would have been paid to the districts included
in the reorganized district if the districts had not been
consolidated; and
(2) the amount to which the reorganized district is
entitled under Section 42.313 [42.253].
(b) If the reorganized district is not eligible for an
entitlement under Section 42.313 [42.253], the amount of the
incentive aid payments may not exceed the sum of the entitlements
computed under Section 42.313 [42.253] for which the districts
included in the reorganized district were eligible in the school
year when they were consolidated.
SECTION 3.09. Section 21.410(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. A district to which Section 42.401
[Chapter 41] applies is entitled to the grants paid under this
section. The commissioner shall determine the timing of the
distribution of grants to a district that does not receive
Foundation School Program payments.
SECTION 3.10. Section 21.411(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. A district to which Section 42.401
[Chapter 41] applies is entitled to the grants paid under this
section. The commissioner shall determine the timing of the
distribution of grants to a district that does not receive
Foundation School Program payments.
SECTION 3.11. Section 21.412(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. A district to which Section 42.401
[Chapter 41] applies is entitled to the grants paid under this
section. The commissioner shall determine the timing of the
distribution of grants to a district that does not receive
Foundation School Program payments.
SECTION 3.12. Section 21.413(h), Education Code, as added
by Section 2, Chapter 430, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. A district to which Section 42.401
[Chapter 41] applies is entitled to the grants paid under this
section. The commissioner shall determine the timing of the
distribution of grants to a district that does not receive
Foundation School Program payments.
SECTION 3.13. Section 22.004(c), Education Code, is amended
to read as follows:
(c) The cost of the coverage provided under the program
described by Subsection (a) shall be paid by the state, the
district, and the employees in the manner provided by Chapter 1579
[Article 3.50-7], Insurance Code. The cost of coverage provided
under a plan adopted under Subsection (b) shall be shared by the
employees and the district using the contributions by the state
described by Subchapter F, Chapter 1579 [Section 9, Article
3.50-7], Insurance Code[, or by Article 3.50-8, Insurance Code].
SECTION 3.14. Section 29.008(b), Education Code, is amended
to read as follows:
(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 share [fund
assignment] under Section 42.306 [42.252], 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.
SECTION 3.15. Section 29.014(d), Education Code, is amended
to read as follows:
(d) The accreditation [basic] allotment for a student
enrolled in a district to which this section applies is adjusted by:
(1) the cost of education adjustment under Section
42.301 [42.102] for the school district in which the district is
geographically located; and
(2) any other appropriate factor adopted by the
commissioner [the weight for a homebound student under Section
42.151(a)].
SECTION 3.16. Section 29.087(j), Education Code, is amended
to read as follows:
(j) For purposes of funding under Chapters [41,] 42[,] and
46, a student attending a program authorized by this section may be
counted in attendance only for the actual number of hours each
school day the student attends the program, in accordance with
Sections 25.081 and 25.082.
SECTION 3.17. Section 29.203(b), Education Code, is amended
to read as follows:
(b) A school district is entitled to the allotment provided
by Section 42.155 [42.157] for each eligible student using a public
education grant. [If the district has a wealth per student greater
than the guaranteed wealth level but less than the equalized wealth
level, a school district is entitled under rules adopted by the
commissioner to additional state aid in an amount equal to the
difference between the cost to the district of providing services
to a student using a public education grant and the sum of the state
aid received because of the allotment under Section 42.157 and
money from the available school fund attributable to the student.]
SECTION 3.18. Effective September 1, 2006, Section
31.025(a), Education Code, is amended to read as follows:
(a) The State Board of Education shall set a limit on the
cost that may be paid using state funds [from the state textbook
fund] for a textbook placed on the conforming or nonconforming list
for a particular subject and grade level. The board may not reject
a textbook for placement on the conforming or nonconforming list
because the textbook's price exceeds the limit established under
this subsection.
SECTION 3.19. Effective September 1, 2006, Section 31.1031,
Education Code, is amended to read as follows:
Sec. 31.1031. SHORTAGE OF REQUISITIONED TEXTBOOKS. If a
school district or open-enrollment charter school does not have a
sufficient number of copies of a textbook used by the district or
school for use during the following school year, and a sufficient
number of additional copies will not be available from the
depository or the publisher within the time specified by Section
31.151(a)(8), the district or school is entitled to:
(1) be reimbursed by the state [from the state
textbook fund], at a rate and in the manner provided by State Board
of Education or commissioner rule, for the purchase of a sufficient
number of used adopted textbooks; or
(2) return currently used textbooks to the
commissioner in exchange for sufficient copies, if available, of
other textbooks on the conforming or nonconforming list to be used
during the following school year.
SECTION 3.20. Effective September 1, 2006, Section 31.105,
Education Code, is amended to read as follows:
Sec. 31.105. SALE OF TEXTBOOKS. The board of trustees of a
school district or governing body of an open-enrollment charter
school may sell textbooks, other than electronic textbooks, to a
student or another school at the state contract price. The district
shall send money from the sale of textbooks to the commissioner as
required by the commissioner. The commissioner shall deposit the
money in the Texas education [state textbook] fund.
SECTION 3.21. Effective September 1, 2006, Section
31.151(d), Education Code, is amended to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the Texas education [state textbook]
fund.
SECTION 3.22. Effective September 1, 2006, Section
31.152(b), Education Code, is amended to read as follows:
(b) A school trustee, administrator, or teacher commits an
offense if the person accepts a gift, favor, or service that:
(1) is given to the person or the person's school;
(2) might reasonably tend to influence a trustee,
administrator, or teacher in the selection of a textbook; and
(3) could not be lawfully purchased with state funds
[from the state textbook fund].
SECTION 3.23. Section 32.161(b), Education Code, is amended
to read as follows:
(b) To the extent possible considering other statutory
requirements, the commissioner and agency shall encourage the use
of textbook funds and any other funds provided to school districts
for technology [and technology allotment funds under Section
31.021(b)(2)] in a manner that facilitates the development and use
of the portal.
SECTION 3.24. Section 32.005, Education Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Each school district is entitled to an allotment of $70
[$30] for each student in average daily attendance or a different
amount for any year provided by appropriation.
(d) This section expires August 1, 2006.
SECTION 3.25. Section 34.002(c), Education Code, is amended
to read as follows:
(c) A school district that fails or refuses to meet the
safety standards for school buses established under this section is
ineligible to share in the transportation allotment under
Subchapter D, Chapter 42, [Section 42.155] until the first
anniversary of the date the district begins complying with the
safety standards.
SECTION 3.26. Section 37.0061, Education Code, is amended
to read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average daily attendance for purposes of
receipt of state funds under the Foundation School Program. [If the
district has a wealth per student greater than the guaranteed
wealth level but less than the equalized wealth level, the district
in which the student is enrolled on the date a court orders the
student to be confined to a juvenile residential facility shall
transfer to the district providing education services an amount
equal to the difference between the average Foundation School
Program costs per student of the district providing education
services and the sum of the state aid and the money from the
available school fund received by the district that is attributable
to the student for the portion of the school year for which the
district provides education services to the student.]
SECTION 3.27. Section 39.031, Education Code, is amended to
read as follows:
Sec. 39.031. COST. (a) The commissioner shall set aside an
appropriate amount from the Foundation School Program to pay the
cost of preparing, administering, or grading the assessment
instruments and the [shall be paid from 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.
[(b) The] cost of releasing the question and answer keys
under Section 39.023(e) [shall be paid from amounts appropriated
to the agency].
(b) After setting aside an appropriate amount in accordance
with this section, the commissioner shall reduce each district's
tier one allotments proportionately. A reduction in tier one
allotments under this subsection does not affect the computation of
guaranteed level of state and local enrichment funds per student in
average daily attendance per cent of tax effort under Section
42.252.
(c) Any amount set aside under this section must be approved
by the Legislative Budget Board and the governor's office of
budget, planning, and policy.
SECTION 3.28. Section 39.134, Education Code, is amended to
read as follows:
Sec. 39.134. COSTS PAID BY DISTRICT. The costs of providing
a monitor, conservator, management team, or special campus
intervention team shall be paid by the district. If the district
fails or refuses to pay the costs in a timely manner, the
commissioner may:
(1) pay the costs using amounts withheld from any
funds to which the district is otherwise entitled; or
(2) recover the amount of the costs in the manner
provided for recovery of an overallocation of state funds under
Section 42.317 [42.258].
SECTION 3.29. Section 43.002(b), Education Code, is amended
to read as follows:
(b) Of the amounts available for transfer from the general
revenue fund to the available school fund for the months of January
and February of each fiscal year, no more than the amount necessary
to enable the comptroller to distribute from the available school
fund an amount equal to 9-1/2 percent of the estimated annual
available school fund apportionment to category 1 school districts,
as defined by Section 42.316 [42.259], and 3-1/2 percent of the
estimated annual available school fund apportionment to category 2
school districts, as defined by Section 42.316 [42.259], may be
transferred from the general revenue fund to the available school
fund. Any remaining amount that would otherwise be available for
transfer for the months of January and February shall be
transferred from the general revenue fund to the available school
fund in equal amounts in June and in August of the same fiscal year.
SECTION 3.30. Section 44.004, Education Code, is amended by
adding Subsection (b-1) and amending Subsections (e) and (i) to
read as follows:
(b-1) The notice of the public meeting to discuss and adopt
the budget and the proposed tax rate may not be smaller than
one-quarter page of a standard-size or a tabloid-size newspaper,
and the headline on the notice must be in 18-point or larger type.
(e) A person who owns taxable property in a school district
is entitled to an injunction restraining the collection of taxes by
the district if the district has not complied with the requirements
of Subsections (b) and (b-1)[, (c),] and [(d), and], if applicable,
Subsection (i), and the failure to comply was not in good faith. An
action to enjoin the collection of taxes must be filed before the
date the school district delivers substantially all of its tax
bills.
(i) A school district that uses a certified estimate, as
authorized by Subsection (h), may adopt a budget at the public
meeting designated in the notice prepared using the estimate, but
the district may not adopt a tax rate before the district receives
the certified appraisal roll for the district required by Section
26.01(a), Tax Code. After receipt of the certified appraisal roll,
the district must publish a revised notice and hold another public
meeting before the district may adopt a tax rate that exceeds[:
[(1)] the rate proposed in the notice prepared using
the estimate[; or
[(2) the district's rollback rate determined under
Section 26.08, Tax Code, using the certified appraisal roll].
SECTION 3.31. Section 46.003(a), Education Code, is amended
to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, [or, if applicable, Section 42.2521,] divided
by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code[, or,
if applicable, Section 42.2521].
SECTION 3.32. Section 46.006(g), Education Code, is amended
to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, [or, if applicable, Section
42.2521,] divided by the district's average daily attendance as
determined under Section 42.005.
SECTION 3.33. Sections 46.009(b), (e), and (f), Education
Code, are amended to read as follows:
(b) If the amount appropriated for purposes of this
subchapter for a year is less than the total amount determined under
Subsection (a) for that year, the commissioner shall:
(1) transfer from the Foundation School Program to the
instructional facilities program the amount by which the total
amount determined under Subsection (a) exceeds the amount
appropriated; and
(2) reduce each district's Texas education [foundation
school] fund allocations in the manner provided by Section
42.313(f) [42.253(h)].
(e) Section 42.317 [42.258] applies to payments under this
subchapter.
(f) If a school district would have received a greater
amount under this subchapter for the applicable school year using
the adjusted value determined under Section 42.310 [42.257], the
commissioner shall add the difference between the adjusted value
and the amount the district received under this subchapter to
subsequent distributions to the district under this subchapter.
SECTION 3.34. Section 46.013, Education Code, is amended to
read as follows:
Sec. 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under Subchapter G [F], Chapter 42.
SECTION 3.35. Section 46.032(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds 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
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code[, or,
if applicable, under Section 42.2521].
SECTION 3.36. Section 46.037, Education Code, is amended to
read as follows:
Sec. 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under Subchapter G [F], Chapter 42.
SECTION 3.37. Section 56.208, Education Code, is amended to
read as follows:
Sec. 56.208. FUNDING. (a) The Early High School Graduation
Scholarship program is financed under the Foundation School
Program. [Funding for the state tuition credits is not subject to
the provisions of Sections 42.253(e) through (k).]
(b) The commissioner of education shall reduce the total
annual amount of Texas education [foundation school] fund payments
made to a school district by an amount equal to F x A, where:
(1) "F" is the lesser of one or the quotient of the
district's local share for the preceding school year under Section
42.306 [42.252] divided by the tier one allotment under Section
42.304 [amount of money to which the district was entitled under
Subchapters B and C, Chapter 42,] for the preceding school year; and
(2) "A" is the amount of state tuition credits under
this subchapter applied by institutions of higher education on
behalf of eligible persons who graduated from the district that has
not been used to compute a previous reduction under this
subsection.
(c) A school district that does not receive Texas education
[foundation school] fund payments during a year in which the
commissioner would otherwise withhold money from the district under
Subsection (b) shall remit an amount equal to the amount that would
be withheld under Subsection (b) to the comptroller for deposit to
the credit of the Texas education [foundation school] fund.
SECTION 3.38. Section 105.301(e), Education Code, is
amended to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.0511,
22.0512, or 22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; and
(3) for each student enrolled, the academy is entitled
to allotments from the foundation school program under Chapter 42
as if the academy were a school district without a tier one local
share for purposes of Section 42.306 [42.253].
SECTION 3.39. Section 403.093(d), Government Code, is
amended to read as follows:
(d) The comptroller shall transfer from the general revenue
fund to the Texas education [foundation school] fund an amount of
money necessary to fund the foundation school program as provided
by Chapter 42, Education Code. The comptroller shall make the
transfers in installments as necessary to comply with Section
42.316 [42.259], Education Code. An installment must be made not
earlier than two days before the date an installment to school
districts is required by Section 42.316 [42.259], Education Code,
and must not exceed the amount necessary for that payment.
SECTION 3.40. Section 403.302(k), Government Code, is
amended to read as follows:
(k) For purposes of Section 42.308 [42.2522], Education
Code, the comptroller shall certify to the commissioner of
education:
(1) a final value for each school district computed
without any deduction for residence homestead exemptions granted
under Section 11.13(n), Tax Code; and
(2) a final value for each school district computed
after deducting one-half the total dollar amount of residence
homestead exemptions granted under Section 11.13(n), Tax Code.
SECTION 3.41. Section 404.121(1), Government Code, is
amended to read as follows:
(1) "Cash flow deficit" for any period means the
excess, if any, of expenditures paid and transfers made from the
general revenue fund in the period, including payments provided by
Section 42.316 [42.259], Education Code, over taxes and other
revenues deposited to the fund in the period, other than revenues
deposited pursuant to Section 403.092, that are legally available
for the expenditures and transfers.
SECTION 3.42. Section 822.201(c), Government Code, is
amended to read as follows:
(c) Excluded from salary and wages are:
(1) expense payments;
(2) allowances;
(3) payments for unused vacation or sick leave;
(4) maintenance or other nonmonetary compensation;
(5) fringe benefits;
(6) deferred compensation other than as provided by
Subsection (b)(3);
(7) compensation that is not made pursuant to a valid
employment agreement;
(8) payments received by an employee in a school year
that exceed $5,000 for teaching a driver education and traffic
safety course that is conducted outside regular classroom hours;
(9) the benefit replacement pay a person earns as a
result of a payment made under Subchapter B or C, Chapter 661;
(10) stipends paid to teachers in accordance with
Section 42.501(c), Education Code; [contributions to a health
reimbursement arrangement account received by an employee under
Article 3.50-8, Insurance Code; and]
(11) amounts received under the educator excellence
incentive program under Subchapter J, Chapter 42, Education Code;
and
(12) any compensation not described by Subsection (b).
SECTION 3.43. Section 2175.304(c), Government Code, is
amended to read as follows:
(c) The procedures established under Subsection (b) must
give preference to transferring the property directly to a public
school or school district or to an assistance organization
designated by the school district before disposing of the property
in another manner. If more than one public school or school
district or assistance organization seeks to acquire the same
property on substantially the same terms, the system, institution,
or agency shall give preference to a public school that is
considered low-performing by the commissioner of education or to a
school district that has a relatively low [taxable] wealth per
student, as determined by the commissioner of education [that
entitles the district to an allotment of state funds under
Subchapter F, Chapter 42, Education Code], or to the assistance
organization designated by such a school district.
SECTION 3.44. Section 1579.251, Insurance Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapters 41 and 42, Education Code, and used by
school districts and charter schools to pay contributions under a
group health coverage plan for employees [as provided by Sections
42.2514 and 42.260, Education Code].
(c) A school district or charter school that does not
participate in the program is entitled to state assistance computed
and distributed as provided by Subsection (a). State funds
received under this subsection must be used to pay for employee
health coverage.
SECTION 3.45. Section 1581.702, Insurance Code, is amended
to read as follows:
Sec. 1581.702. ADDITIONAL SUPPORT. The state shall provide
additional support for a school district to which this section
applies in an amount computed by multiplying the total amount of
supplemental compensation that district employees would have
received [by district employees] under Chapter 1580, as it existed
on January 1, 2005, by 0.062.
SECTION 3.46. Section 6.02(b), Tax Code, is amended to read
as follows:
(b) A taxing unit that has boundaries extending into two or
more counties may choose to participate in only one of the appraisal
districts. In that event, the boundaries of the district chosen
extend outside the county to the extent of the unit's boundaries.
To be effective, the choice must be approved by resolution of the
board of directors of the district chosen. [The choice of a school
district to participate in a single appraisal district does not
apply to property annexed to the school district under Subchapter C
or G, Chapter 41, Education Code, unless:
[(1) the school district taxes property other than
property annexed to the district under Subchapter C or G, Chapter
41, Education Code, in the same county as the annexed property; or
[(2) the annexed property is contiguous to property in
the school district other than property annexed to the district
under Subchapter C or G, Chapter 41, Education Code.]
SECTION 3.47. Section 21.02(a), Tax Code, is amended to
read as follows:
(a) Except as provided by [Subsection (b) and] Sections
21.021, 21.04, and 21.05, tangible personal property is taxable by
a taxing unit if:
(1) it is located in the unit on January 1 for more
than a temporary period;
(2) it normally is located in the unit, even though it
is outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses
elsewhere and is not located in any one place for more than a
temporary period; or
(4) the owner resides (for property not used for
business purposes) or maintains the owner's [his] principal place
of business in this state (for property used for business purposes)
in the unit and the property is taxable in this state but does not
have a taxable situs pursuant to Subdivisions (1) through (3) [of
this section].
SECTION 3.48. Section 39.901(d), Utilities Code, is amended
to read as follows:
(d) Not later than May 1 of each year, subject to Section
39.903(b), the commission shall transfer from the system benefit
fund to the Texas education [foundation school] fund the amount
determined by the Texas Education Agency under Subsection (b) to
the extent that funds are available. Amounts transferred from the
system benefit fund under this section may be appropriated only for
the support of the Foundation School Program and are available, in
addition to any amounts allocated by the General Appropriations
Act, to finance actions under Section 42.307 [41.002(b) or
42.2521], Education Code.
ARTICLE 4. REPEALER; APPLICABILITY; EFFECTIVE DATE
SECTION 4.01. (a) Sections 1-3 and 57, Chapter 201, Acts of
the 78th Legislature, Regular Session, 2003, are repealed.
(b) Chapter 313, Acts of the 78th Legislature, Regular
Session, 2003, is repealed.
(c) Section 1.01, Chapter 366, Acts of the 78th Legislature,
Regular Session, 2003, is repealed.
(d) The following provisions of the Education Code are
repealed:
(1) Subchapters B, C, E, F, and G, Chapter 41;
(2) Chapter 42, as it existed on January 1, 2005; and
(3) Sections 21.357, 21.402(b) and (e), 25.0811(b) and
(c), 29.203(c) and (g), 33.002, 39.023(j), 39.024(e), 39.112,
41.001, 41.002, 41.003, 41.0031, 41.004, 41.007, 41.009(b),
41.011, 41.092, 41.099, 41.252(b), 44.004(c) and (d), and
105.301(f).
(e) Effective September 1, 2006, Section 31.021, Education
Code, is repealed.
(f) Sections 403.302(j) and 466.355(c), Government Code,
are repealed.
(g) The following provisions of the Insurance Code are
repealed:
(1) Section 1579.253(b);
(2) Chapter 1580;
(3) Section 1581.053(b); and
(4) Subchapter C, Chapter 1581.
(h) Sections 21.02(b), 26.08, and 313.029, Tax Code, are
repealed.
SECTION 4.02. Except as otherwise provided by this Act,
this Act applies beginning with the 2005-2006 school year.
SECTION 4.03. Except as otherwise provided by this Act,
this Act takes effect September 1, 2005. This Act takes effect only
if H.B. No. 3, Acts of the 79th Legislature, Regular Session, 2005,
becomes law. If that bill does not become law, this Act has no
effect.