HB 3, Sen 2nd Rdg, Amnd #F80

(1) the amount by which $1.00 exceeds the product of the state compression percentage, as determined under Section 48.255, multiplied by $1.00; and

(2) the amount by which the district is required to reduce the district's enrichment tax rate under Section 48.202(f).

(2) In SECTION 1.026 of the bill, in added Section 48.108(b), Education Code (page 20, lines 66 and 67), strike "early childhood literacy proficiency plan adopted under Section 11.185" and substitute "early childhood literacy plan adopted under Section 11.256".

(3) Strike the recital to SECTION 1.027 of the bill, adding sections to Subchapter C, Chapter 48, Education Code (page 21, lines 7 through 9), and substitute "(a) Effective September 1, 2019, Subchapter C, Chapter 48, Education Code, as added by this Act, is amended by adding Section 48.109 to read as follows:".

(4) In SECTION 1.027 of the bill, in added Section 48.109(a), Education Code, strike page 21, lines 12 through 16, and substitute the following:

shall determine the threshold percentage as provided by Subsection (f) for meets grade level performance on the third grade reading assessment instrument administered under Section 39.023 or an alternative third grade reading assessment instrument adopted under Subsection (e) for each of the following cohorts:

(5) In SECTION 1.027 of the bill, in added Section 48.109(b), Education Code, strike Subsection (b) (page 21, lines 23 through 33) and substitute the following:

(b) Each year, the commissioner shall determine for each school district the minimum number of students in each cohort described by Subsection (a) enrolled in the district who would have to perform at or above the meets grade level performance standard set by the commissioner on an assessment instrument described by that subsection in order for the district to achieve a meets grade level performance percentage for that cohort on the assessment instrument equal to the threshold percentage established for that cohort under that subsection.

(6) In SECTION 1.027 of the bill, in added Section 48.109(f), Education Code, strike page 21, line 60, through page 22, line 2, and substitute the following:

(7) In SECTION 1.027 of the bill, in added Section 48.109(g), Education Code (page 22, line 11), strike "(b)" and substitute "(a)".

(8) On page 22, between lines 43 and 44, insert the following:

(b) Effective September 1, 2022, Subchapter C, Chapter 48, Education Code, as added by this Act, is amended by adding Section 48.109 to read as follows:

Sec. 48.109. THIRD GRADE LANGUAGE ARTS OUTCOMES BONUS. (a) For purposes of the outcomes bonus under this section, the commissioner shall determine the threshold percentage as provided by Subsection (f) for meets grade level performance on the third grade language arts assessment instrument administered under Section 39.023 or an alternative third grade language arts assessment instrument adopted under Subsection (e) for each of the following cohorts:

(1) students who are educationally disadvantaged;

(2) students who are not educationally disadvantaged; and

(3) students who are enrolled in a special education program under Subchapter A, Chapter 29, regardless of whether the students are educationally disadvantaged.

(c) For each student in a cohort described by Subsection (a) who performed at or above the meets grade level performance standard set by the commissioner on an assessment instrument described by that subsection during the preceding school year in excess of the minimum number of students determined for the applicable district cohort under Subsection (b), a school district is entitled to an annual outcomes bonus of:

(1) if the student is educationally disadvantaged, $4,000;

(2) if the student is not educationally disadvantaged, $1,000; and

(3) if the student is enrolled in a special education program under Subchapter A, Chapter 29, $1,000.

(d) A school district is entitled to an outcomes bonus under each provision of Subsection (c) for which a student qualifies.

(e) For purposes of this section, the commissioner shall adopt at least one alternative third grade language arts assessment instrument and set a meets grade level performance standard on the assessment instrument equivalent to the meets grade level performance standard set under Section 39.0241 for the third grade language arts assessment instrument administered under Section 39.023. The assessment instrument adopted under this subsection must have been administered to a sufficient number of public school students, as determined by the commissioner, to enable the commissioner to establish a percentile of statewide meets grade level performance for the assessment instrument under Subsection (f).

(f) The commissioner shall establish the threshold percentages under Subsection (a) for each assessment instrument described by that subsection using the 25th percentile of statewide meets grade level performance for the applicable cohort for the third grade reading assessment instrument administered during the 2017-2018 school year under Section 39.023, as that section existed on September 1, 2018. If for any year the commissioner determines that the assessment instrument has materially changed, the commissioner shall adjust the percentile of statewide meets grade level performance in a manner that maintains the threshold percentages determined under Subsection (a) for the assessment instrument before the change.

(g) In determining the amount of funding to which a school district is entitled under this section, the commissioner shall consider student performance on the assessment instrument described by Subsection (a) that would result in the greater amount of funding.

(h) A school district may not receive funding based on student performance on an alternative third grade language arts assessment instrument adopted under Subsection (e) unless the district:

(1) administers the assessment instrument:

(A) to all students to whom the third grade language arts assessment instrument under Section 39.023 is required to be administered, other than students who receive:

(i) an exemption from the administration of the third grade language arts assessment instrument; or

(ii) accommodations for the administration of the third grade language arts assessment instrument that are not provided for the administration of the alternative third grade language arts assessment instrument; and

(B) using test security and administration protocols required by commissioner rule; and

(2) provides to the agency student performance data for the assessment instrument in accordance with commissioner rule.

(i) This section does not:

(1) require a school district to administer an alternative third grade language arts assessment instrument adopted under Subsection (e); or

(2) alter a school district's obligations regarding the administration of the third grade language arts assessment instrument under Section 39.023.

(j) At least once every five years, the agency shall:

(1) conduct a longitudinal impact study on each alternative third grade language arts assessment instrument adopted under Subsection (e); and

(2) submit to the legislature a report on the results of the study conducted under Subdivision (1).

SECTION 1.___. Subchapter C, Chapter 48, Education Code, as added by this Act, is amended by adding Sections 48.110, 48.111, 48.112, and 48.113 to read as follows:

(9) In SECTION 1.027 of the bill, in added Section 48.110(a), Education Code, strike page 22, lines 47 through 50, and substitute the following:

as provided by Subsection (f) for college, career, or military readiness as described by Subsection (e) for each of the following cohorts:

(10) In SECTION 1.027 of the bill, in added Section 48.110, Education Code (page 23, between lines 36 and 37), insert the following:

(f) The commissioner shall establish the threshold percentages under Subsection (a) using the 25th percentile of statewide college, career, or military readiness as described by Subsection (e) for the applicable cohort of annual graduates during the 2016-2017 school year.

(11) Strike the recital to SECTION 1.041 of the bill, adding sections to Subchapter F, Chapter 48, Education Code (page 42, lines 20 through 22), and substitute "(a) Effective September 1, 2019, Subchapter F, Chapter 48, Education Code, as added by this Act, is amended by adding Section 48.277 to read as follows:".

(12) On page 43, between lines 8 and 9, insert the following:

(b) Effective September 1, 2021, Subchapter F, Chapter 48, Education Code, as added by this Act, is amended by adding Section 48.277 to read as follows:

Sec. 48.277. FORMULA TRANSITION GRANT. (a) A school district or open-enrollment charter school is entitled to receive an annual allotment for each student in average daily attendance in the amount equal to the difference, if the difference is greater than zero, that results from subtracting the total maintenance and operations revenue per student in average daily attendance for the current school year from the lesser of:

(1) 100 percent of the district's or school's total maintenance and operations revenue per student in average daily attendance for the applicable school year under Subsection (b)(1) that the district or school would have received under former Chapters 41 and 42, as those chapters existed on January 1, 2019; or

(2) 128 percent of the statewide average amount of maintenance and operations revenue per student in average daily attendance that would have been provided for the applicable school year under Subsection (b)(1) under former Chapters 41 and 42, as those chapters existed on January 1, 2019.

(b) For purposes of calculating maintenance and operations revenue under Subsection (a), the commissioner shall:

(1) for purposes of Subsections (a)(1) and (2), use the following applicable school year:

(A) in a school year ending in an even-numbered year, the 2019-2020 school year; and

(B) in a school year ending in an odd-numbered year, the 2020-2021 school year;

(2) include all state and local funding, except for any funding resulting from:

(A) reimbursement for disaster remediation costs under former Sections 41.0931 and 42.2524;

(B) an adjustment for rapid decline in taxable value of property under former Section 42.2521;

(D) 50 percent of the third grade language arts outcomes bonus under Section 48.109;

(E) 50 percent of the college, career, or military readiness outcomes bonus under Section 48.110;

(F) 50 percent of the teacher incentive allotment under Section 48.112; and

(G) the classroom teacher and librarian allotment under Section 48.280;

(3) adjust the calculation to reflect a reduction in tax effort by a school district; and

(4) if a school district or open-enrollment charter school receives a waiver relating to eligibility requirements for the national free or reduced-price lunch program under 42 U.S.C. Section 1751 et seq., use the numbers of educationally disadvantaged students on which the district's or school's entitlement to compensatory education funds was based for the school year before the school year in which the district or school received the waiver, adjusted for estimated enrollment growth.

(c) A school district or open-enrollment charter school is not entitled to an allotment under Subsection (a) beginning with the 2024-2025 school year.

(d) This section expires September 1, 2025.

SECTION 1.___. Subchapter F, Chapter 48, Education Code, as added by this Act, is amended by adding Sections 48.278, 48.279, and 48.280 to read as follows:

(13) In the recital to SECTION 2.001 of the bill, adding Section 4.003, Education Code (page 62, line 42), between the period and "Chapter", insert "(a) Effective September 1, 2019,".

(14) On page 62, between lines 56 and 57, insert the following:

(b) Effective September 1, 2021, Chapter 4, Education Code, is amended by adding Section 4.003 to read as follows:

Sec. 4.003. 60x30TX GOALS. To further the state's master plan developed under Section 61.051 for at least 60 percent of all adults aged 25 to 34 in this state to achieve a postsecondary degree or workforce credential by 2030, the following goals are established:

(1) at least 60 percent of all public school students in each demographic category considered under Section 39.053(c)(3) shall perform satisfactorily on a third grade language arts assessment instrument described by Section 48.109(b) by 2030; and

(2) at least 60 percent of all public school students in each demographic category considered under Section 39.053(c)(3) who graduate high school shall meet college, career, and military readiness standards as provided by Section 48.110(e) by 2030.

(15) Strike SECTION 2.014 of the bill, amending Section 21.410(c), Education Code (page 66, lines 13 through 20).

(16) In the recital to SECTION 2.015 of the bill, amending Section 21.4551(c), Education Code (page 66, line 21), between the period and "Section", insert "Effective September 1, 2021,".

(17) In the recital to SECTION 2.019 of the bill, amending Section 28.006, Education Code (page 69, line 41), strike "(c-1),".

(18) In SECTION 2.019 of the bill, in amended Section 28.006, Education Code, strike Subsection (c-1) (page 70, lines 10 through 17).

(19) Add the following appropriately numbered SECTION to Article 2 of the bill:

SECTION 2.___. Effective September 1, 2021, Section 28.006(c-1), Education Code, is amended to read as follows:

(c-1) Each school district shall administer at the beginning of the seventh grade a reading instrument adopted by the commissioner to each student whose performance on the assessment instrument in language arts [~~reading~~] administered under Section 39.023(a) to the student in grade six did not demonstrate reading proficiency, as determined by the commissioner. The district shall administer the reading instrument in accordance with the commissioner's recommendations under Subsection (a)(1).

(20) In the recital to SECTION 2.020 of the bill, amending Section 28.0061, Education Code (page 70, line 50), between the period and "Section", insert "Effective September 1, 2021,".

(21) In SECTION 2.020 of the bill, in amended Section 28.0061(b), Education Code (page 70, line 56), between "28.006(c)" and the semicolon, insert "or (c-2)".

(22) In the recital to SECTION 2.021 of the bill, amending Section 28.0211(a), Education Code (page 70, line 59), between the period and "Section", insert "Effective September 1, 2021,".

(23) In the recital to SECTION 2.024 of the bill, amending Section 29.056(g), Education Code (page 71, line 34), between the period and "Section", insert "Effective September 1, 2021,".

(24) In the recital to SECTION 2.031 of the bill, amending Section 29.1543, Education Code (page 74, line 4), between the period and "Section", insert "(a) Effective September 1, 2019,".

(25) On page 74, between lines 44 and 45, insert the following:

(b) Effective September 1, 2021, Section 29.1543, Education Code, is amended to read as follows:

Sec. 29.1543. EARLY EDUCATION REPORTS. The agency shall produce and make available to the public on the agency's Internet website annual district and campus-level reports containing information from the previous school year on early education in school districts and open-enrollment charter schools. A report under this section must contain:

(1) the information required by Section 29.1532(c) to be reported through the Public Education Information Management System (PEIMS);

(2) a description of the diagnostic reading instruments administered in accordance with Section 28.006(c) or (c-2);

(3) the number of students who were administered a diagnostic reading instrument administered in accordance with Section 28.006(c) or (c-2);

(4) the number of students whose scores from a diagnostic reading instrument administered in accordance with Section 28.006(c) or (c-2) indicate reading proficiency; [~~and~~]

(5) the number of kindergarten students who were enrolled in a prekindergarten program in the previous school year in the same district or school as the district or school in which the student attends kindergarten;

(6) the number and percentage of students who perform satisfactorily on the third grade language arts or mathematics assessment instrument administered under Section 39.023, disaggregated by whether the student was eligible for free prekindergarten under Section 29.153;

(7) the number of students described by Subdivision (6) who attended kindergarten in the district, disaggregated by:

(A) whether the student met the kindergarten readiness standard on the reading instrument adopted under Section 28.006;

(B) whether the student attended prekindergarten in the district; and

(8) the information described by Subdivisions (6) and (7) disaggregated by whether the student is educationally disadvantaged.

(26) In SECTION 2.043 of the bill, in amended Section 39.022, Education Code (page 77, line 7), strike "knowledge- and skills-based" and substitute "based on the essential knowledge and skills adopted by the State Board of Education [~~knowledge- and skills-based~~]".

(27) Strike the recital to SECTION 2.044 of the bill, amending Section 39.023, Education Code (page 77, lines 13 through 16), and substitute "Effective September 1, 2021, Section 39.023(a), Education Code, is amended to read as follows:".

(28) On page 77, between lines 35 and 36, insert the following, appropriately numbered SECTION to the bill:

SECTION 2.___. Section 39.023, Education Code, is amended by adding Subsections (a-3), (a-14), (a-15), (c-7), (c-8), and (o) and amending Subsections (a-12), (a-13), (b-1), (c), and (c-3) to read as follows:

(29) Strike SECTIONS 3.016, 3.017, 3.018, and 3.019 of the bill, amending Sections 21.410(h), 21.411(h), 21.412(h), and 21.413(h), Education Code (page 87, lines 16 through 63).

(30) Strike SECTION 3.025 of the bill, amending Section 28.0061(b), Education Code (page 88, lines 41 through 49).

(31) In SECTION 6.001(a) of the bill, adding transition language (page 115, line 64), between "(b)" and "of", insert "or (c)".

(32) On page 115, between lines 68 and 69, insert the following:

(c) Section 28.025, Education Code, as amended by this Act, and Section 28.0256, Education Code, as added by this Act, apply beginning with students enrolled at the 12th grade level during the 2021-2022 school year.

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