86R10360 MEW/KJE/CJC/TSR-F
 
  By: Huberty H.B. No. 3
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to public school finance and public education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. PUBLIC SCHOOL FINANCE
         SECTION 1.001.  Section 12.106, Education Code, is amended
  by amending Subsections (a) and (a-1) and adding Subsection (a-3)
  to read as follows:
         (a)  A charter holder is entitled to receive for the
  open-enrollment charter school funding under Chapter 48 [42] equal
  to the amount of funding per student in weighted average daily
  attendance, excluding the allotment under Section 48.101 and 
  enrichment funding under Section 48.202(a) [42.302(a)], to which
  the charter holder would be entitled for the school under Chapter 48
  [42] if the school were a school district without a tier one local
  share for purposes of Section 48.266 [42.253].
         (a-1)  In determining funding for an open-enrollment charter
  school under Subsection (a):
               (1)  the adjustment [adjustments] under Section 48.052
  is [Sections 42.102, 42.104, and 42.105 are] based on the average
  adjustment for the state; and
               (2)  the charter holder is entitled to an [the]
  adjustment under former Section 42.103 [is] based on the average
  adjustment for the state that would have been provided under that
  section as it existed on January 1, 2018.
         (a-3)  In addition to the funding provided by Subsections (a)
  and (a-2), a charter holder is entitled to receive funding for the
  open-enrollment charter school under Subchapter D, Chapter 48, if
  the charter holder would be entitled to the funding if the school
  were a school district.
         SECTION 1.002.  Section 25.084, Education Code, is amended
  by amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  Except as provided by Subsection (c), the [The]
  operation of schools year-round by a district does not affect the
  amount of state funds to which the district is entitled under
  Chapter 48 [42].
         (c)  A district that adopts a year-round system under this
  section may receive the incentive aid under Section 25.0841 if the
  district meets the criteria for receiving the incentive under that
  section.
         SECTION 1.003.  Subchapter C, Chapter 25, Education Code, is
  amended by adding Section 25.0841 to read as follows:
         Sec. 25.0841.  INCENTIVE FOR ADDITIONAL INSTRUCTIONAL DAYS.
  (a) The commissioner shall adjust the average daily attendance of a
  school district under Section 48.005 in the manner provided by
  Subsection (b) if the district:
               (1)  provides the minimum number of minutes of
  operational and instructional time required under Section 25.081
  and commissioner rules adopted under that section over at least 180
  days of instruction; and
               (2)  offers an additional 30 days of half-day
  instruction for students enrolled in prekindergarten through fifth
  grade.
         (b)  For a school district described by Subsection (a), the
  commissioner shall increase the average daily attendance of the
  district under Section 48.005 by the amount that results from the
  quotient of the sum of attendance for each of the 30 additional
  instructional days of half-day instruction that are provided
  divided by 30.
         (c)  The commissioner may provide the incentive under this
  section to a school district that intended, but due to
  circumstances beyond the district's control, including the
  occurrence of a natural disaster affecting the district, was unable
  to meet the requirement for instruction under Section 25.081 plus
  an additional 30 days of half-day instruction. The commissioner
  may proportionately reduce the incentive provided to a district
  described by this subsection.
         (d)  The commissioner shall adopt rules necessary for the
  implementation of this section.
         SECTION 1.004.  Section 30.003, Education Code, is amended
  by amending Subsection (f-1) and adding Subsection (f-2) to read as
  follows:
         (f-1)  The commissioner shall determine the total amount
  that the Texas School for the Blind and Visually Impaired and the
  Texas School for the Deaf would have received from school districts
  in accordance with this section if the following provisions had not
  reduced the districts' share of the cost of providing education
  services:
               (1)  H.B. No. 1, Acts of the 79th Legislature, 3rd
  Called Session, 2006;
               (2)  Section 45.0032; and
               (3)  Section 48.255.
         (f-2)  The amount determined under Subsection (f-1), [had
  not reduced the districts' share of the cost of providing education
  services. That amount,] minus any amount the schools do receive
  from school districts, shall be set aside as a separate account in
  the foundation school fund and appropriated to those schools for
  educational purposes.
         SECTION 1.005.  Sections 45.003(d) and (f), Education Code,
  are amended to read as follows:
         (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 stated in the
  proposition. For any year, the maintenance tax rate per $100 of
  taxable value adopted by the district may not exceed the rate equal
  to the sum of:
               (1)  $0.17; and
               (2)  the product of the state compression percentage,
  as determined under Section 48.255 [42.2516], multiplied by $1.00
  [$1.50].
         (f)  Notwithstanding any other law, a district that levied a
  maintenance tax for the 2005 tax year at a rate greater than $1.50
  per $100 of taxable value in the district as permitted by special
  law may not levy a maintenance tax at a rate that exceeds the rate
  per $100 of taxable value that is equal to the sum of:
               (1)  $0.17; and
               (2)  the product of the state compression percentage,
  as determined under Section 48.255 [42.2516], multiplied by the
  product of 66.67 percent multiplied by the rate of the maintenance
  tax levied by the district for the 2005 tax year.
         SECTION 1.006.  Subchapter A, Chapter 45, Education Code, is
  amended by adding Section 45.0032 to read as follows:
         Sec. 45.0032.  COMPONENTS OF MAINTENANCE AND OPERATIONS TAX.
  (a)  Except as provided by Section 45.003(f), a school district's
  tier one maintenance and operations tax rate is the portion of the
  district's total tax rate for maintenance and operations that does
  not exceed the product of the state compression percentage, as
  determined under Section 48.255, multiplied by $1.00.
         (b)  A district's enrichment tax rate consists of:
               (1)  any cents of additional maintenance and operations
  tax effort, not to exceed eight cents over the tax rate described by
  Subsection (a); and
               (2)  any cents of additional maintenance and operations
  tax effort available to a district that exceeds the tax rate
  described by Subsection (a) and Subdivision (1).
         (c)  For a district to which Section 45.003(f) applies, the
  reference to a value of $1.00 under Subsection (a) is replaced with
  the value equal to the product of 66.67 percent multiplied by the
  maintenance and operations tax rate adopted by the district for the
  2005 tax year.
         (d)  Notwithstanding the provisions of this section, a
  school district with maintenance and operations taxes at the tax
  rate described by Section 48.202(a-1)(2) for the 2018-2019 school
  year, that, after applying Subsection (a) to the district's tax
  rate, does not comply with Subsection (b), is entitled to:
               (1)  for the 2019-2020 school year, the dollar amount
  guaranteed level of state and local funds per weighted student per
  cent of tax effort at the tax rate described by Section
  48.202(a-1)(2); and
               (2)  for the 2020-2021 school year and each subsequent
  school year, the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort at the tax rate
  described by Section 48.202(a-1)(1) for one cent of tax effort at
  the tax rate described under Subdivision (1) until the district
  complies with Subsection (b).
         SECTION 1.007.  Subtitle I, Title 2, Education Code, is
  amended by adding Chapter 48, and a heading is added to that chapter
  to read as follows:
  CHAPTER 48. FOUNDATION SCHOOL PROGRAM
         SECTION 1.008.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter A, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER A. GENERAL PROVISIONS
         SECTION 1.009.  Sections 42.001, 42.002, 42.003, 42.004,
  42.005, 42.0051, and 42.0052, Education Code, are transferred to
  Subchapter A, Chapter 48, Education Code, as added by this Act,
  redesignated as Sections 48.001, 48.002, 48.003, 48.004, 48.005,
  48.006, and 48.007, Education Code, and amended to read as follows:
         Sec. 48.001 [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 tax revenues of districts after
  acknowledging all legitimate student and district cost
  differences.
         Sec. 48.002  [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 a basic instructional program and facilities suitable to
  the student's educational needs; and
               (2)  access to a substantially equalized program of
  financing in excess of basic costs for certain services, as
  provided by this chapter.
         (b)  The Foundation School Program consists of:
               (1)  two tiers that in combination provide for:
                     (A)  sufficient financing for all school
  districts to provide a basic program of education that is rated
  acceptable or higher under Section 39.054 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. 48.003  [42.003].  STUDENT ELIGIBILITY. (a)  A
  student is entitled to the benefits of the Foundation School
  Program if, on September 1 of the school year, the student:
               (1)  is 5 years of age or older and under 21 years of age
  and has not graduated from high school, or is at least 21 years of
  age and under 26 years of age and has been admitted by a school
  district to complete the requirements for a high school diploma; or
               (2)  is at least 19 years of age and under 26 years of
  age and is enrolled in an adult high school diploma and industry
  certification charter school pilot program under Section 29.259.
         (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
  or Subchapter E-1, Chapter 29.
         (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. 48.004  [42.004].  ADMINISTRATION OF THE PROGRAM. The
  commissioner[, in accordance with the rules of the State Board of
  Education,] shall adopt rules [take such action and require such
  reports consistent with this chapter] as [may be] necessary to
  implement and administer the Foundation School Program.
         Sec. 48.005  [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;
               (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);
               (3)  for a district that operates under a flexible
  school day program under Section 29.0822, the average daily
  attendance as calculated by the commissioner in accordance with
  Sections 29.0822(d) and (d-1); or
               (4)  for a district that operates a full-day program
  under Section 29.153(c) or a half-day program, one-half of the
  average daily attendance calculated under Subdivision (1).
         (b)  A school district that experiences a decline of two
  percent or more in average daily attendance shall be funded on the
  basis of:
               (1)  the actual average daily attendance of the
  preceding school year, if the decline is the result of the closing
  or reduction in personnel of a military base; or
               (2)  subject to Subsection (e), an average daily
  attendance not to exceed 98 percent of the actual average daily
  attendance of the preceding school year, if the decline is not the
  result of the closing or reduction in personnel of a military base.
         (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.
         (c-1)  The commissioner shall adjust the average daily
  attendance of a school district that qualifies for the incentive
  for additional instructional days under Section 25.0841 in the
  manner provided by that section.
         (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)  For each school year, the commissioner shall adjust the
  average daily attendance of school districts that are entitled to
  funding on the basis of an adjusted average daily attendance under
  Subsection (b)(2) so that:
               (1)  all districts are funded on the basis of the same
  percentage of the preceding year's actual average daily attendance;
  and
               (2)  the total cost to the state does not exceed the
  amount specifically appropriated for that year for purposes of
  Subsection (b)(2).
         (f)  An open-enrollment charter school is not entitled to
  funding based on an adjustment under Subsection (b)(2).
         (g)  If a student may receive course credit toward the
  student's high school academic requirements and toward the
  student's higher education academic requirements for a single
  course, including a course provided under Section 28.009 by a
  public institution of higher education, the time during which the
  student attends the course shall be counted as part of the minimum
  number of instructional hours required for a student to be
  considered a full-time student in average daily attendance for
  purposes of this section.
         (g-1)  The commissioner shall adopt rules to calculate
  average daily attendance for students participating in a blended
  learning program in which classroom instruction is supplemented
  with applied workforce learning opportunities, including
  participation of students in internships, externships, and
  apprenticeships.
         (h)  Subject to rules adopted by the commissioner under
  Section 48.007(b) [42.0052(b)], time that a student participates in
  an off-campus instructional program approved under Section
  48.007(a) [42.0052(a)] shall be counted as part of the minimum
  number of instructional hours required for a student to be
  considered a full-time student in average daily attendance for
  purposes of this section.
         (i)  A district or a charter school operating under Chapter
  12 that operates a prekindergarten program is eligible to receive
  one-half of average daily attendance under Subsection (a) if the
  district's or charter school's prekindergarten program provides at
  least 32,400 minutes of instructional time to students.
         (j)  A district or charter school is eligible to earn full
  average daily attendance under Subsection (a) if the district or
  school provides at least 43,200 minutes of instructional time to
  students enrolled in:
               (1)  a dropout recovery school or program operating
  under Section 12.1141(c) or Section 39.0548;
               (2)  an alternative education program operating under
  Section 37.008;
               (3)  a school program located at a day treatment
  facility, residential treatment facility, psychiatric hospital, or
  medical hospital;
               (4)  a school program offered at a correctional
  facility; or
               (5)  a school operating under Section 29.259.
         (k)  A charter school operating under a charter granted under
  Chapter 12 before January 1, 2015, is eligible to earn full average
  daily attendance under Subsection (a), as that subsection existed
  immediately before January 1, 2015, for:
               (1)  all campuses of the charter school operating
  before January 1, 2015; and
               (2)  any campus or site expansion approved on or after
  January 1, 2015, provided that the charter school received an
  academic accountability performance rating of C or higher, and the
  campus or site expansion is approved by the commissioner.
         (l)  A school district campus or charter school described by
  Subsection (j) may operate more than one program and be eligible for
  full average daily attendance for each program if the programs
  operated by the district campus or charter school satisfy all
  applicable state and federal requirements.
         (m)  The commissioner shall adopt rules necessary to
  implement this section, including rules that:
               (1)  establish the minimum amount of instructional time
  per day that allows a school district or charter school to be
  eligible for full average daily attendance, which may differ based
  on the instructional program offered by the district or charter
  school;
               (2)  establish the requirements necessary for a school
  district or charter school to be eligible for one-half of average
  daily attendance, which may differ based on the instructional
  program offered by the district or charter school; and
               (3)  proportionally reduce the average daily
  attendance for a school district if any campus or instructional
  program in the district provides fewer than the required minimum
  minutes of instruction to students.
         [(n)     To assist school districts in implementing this
  section as amended by H.B. 2442, Acts of the 85th Legislature,
  Regular Session, 2017, or similar legislation, the commissioner may
  waive a requirement of this section or adopt rules to implement this
  section.     This subsection expires at the end of the 2018-2019
  school year.]
         Sec. 48.006  [42.0051].  AVERAGE DAILY ATTENDANCE FOR
  DISTRICTS IN DISASTER AREA. (a) From funds specifically
  appropriated for the purpose or other funds available to the
  commissioner for that purpose, the commissioner shall adjust the
  average daily attendance of a school district all or part of which
  is located in an area declared a disaster area by the governor under
  Chapter 418, Government Code, if the district experiences a decline
  in average daily attendance that is reasonably attributable to the
  impact of the disaster.
         (b)  The adjustment must be sufficient to ensure that the
  district receives funding comparable to the funding that the
  district would have received if the decline in average daily
  attendance reasonably attributable to the impact of the disaster
  had not occurred.
         (c)  The commissioner shall make the adjustment required by
  this section for the two-year period following the date of the
  governor's initial proclamation or executive order declaring the
  state of disaster.
         (d)  Section 48.005(b)(2) [42.005(b)(2)] does not apply to a
  district that receives an adjustment under this section.
         (e)  A district that receives an adjustment under this
  section may not receive any additional adjustment under Section
  48.005(d) [42.005(d)] for the decline in average daily attendance
  on which the adjustment under this section is based.
         (f)  For purposes of this title, a district's adjusted
  average daily attendance under this section is considered to be the
  district's average daily attendance as determined under Section
  48.005 [42.005].
         Sec. 48.007  [42.0052].  OFF-CAMPUS PROGRAMS APPROVED FOR
  PURPOSES OF AVERAGE DAILY ATTENDANCE. (a)  The commissioner may,
  based on criteria developed by the commissioner, approve
  instructional programs provided off campus by an entity other than
  a school district or open-enrollment charter school as a program in
  which participation by a student of a district or charter school may
  be counted for purposes of determining average daily attendance in
  accordance with Section 48.005(h) [42.005(h)].
         (b)  The commissioner shall adopt by rule verification and
  reporting procedures concerning time spent by students
  participating in instructional programs approved under Subsection
  (a).
         SECTION 1.010.  Sections 42.006(a), (b), (c), and (d),
  Education Code, are transferred to Subchapter A, Chapter 48,
  Education Code, as added by this Act, redesignated as Section
  48.008, Education Code, and amended to read as follows:
         Sec. 48.008.  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 chapter and of other appropriate provisions
  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 Public Education Information Management System that is not
  necessary. In reviewing and revising the Public Education
  Information Management 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 provided by Section 29.066 or
  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 scarce school resources, to the extent
  practicable using existing agency resources and appropriations.
         SECTION 1.011.  Sections 42.006(a-1), (a-3), and (a-4),
  Education Code, Section 42.006(a-2), Education Code, as added by
  Chapter 550 (S.B. 490), Acts of the 85th Legislature, Regular
  Session, 2017, and Section 42.006(a-2), as added by Chapter 916
  (S.B. 1404), Acts of the 85th Legislature, Regular Session, 2017,
  are transferred to Subchapter A, Chapter 48, Education Code, as
  added by this Act, redesignated as Section 48.009, Education Code,
  and amended to read as follows:
         Sec. 48.009.  REQUIRED PEIMS REPORTING. (a)  In this
  section, "full-time equivalent school counselor" means 40 hours of
  counseling services a week.
         (b) [(a-1)]  The commissioner by rule shall require each
  school district and open-enrollment charter school to report
  through the Public Education Information Management System
  information regarding:
               (1)  the number of students enrolled in the district or
  school who are identified as having dyslexia;
               (2)  [. The agency shall maintain the information
  provided in accordance with this subsection.
         [(a-2)     The commissioner by rule shall require each school
  district and open-enrollment charter school to report through the
  Public Education Information Management System information
  regarding] the availability of school counselors, including [at
  each campus. The commissioner's rules shall require a district or
  school to report] the number of full-time equivalent school
  counselors, [providing counseling services] at each [a] campus;
               (3)  [. For purposes of this subsection, "full-time
  equivalent school counselor" means 40 hours of counseling services
  a week. The agency shall maintain the information provided in
  accordance with this subsection.
         [(a-2)     The commissioner by rule shall require each school
  district and open-enrollment charter school to report through the
  Public Education Information Management System information for
  each campus of the district or school regarding:
               [(1)] the availability of expanded learning
  opportunities as described by Section 33.252 at each campus; [and]
               (4) [(2)]  the number of students participating in each
  of the categories of expanded learning opportunities listed under
  Section 33.252(b) at each campus;
               (5)  [.
         [(a-3)     The commissioner by rule shall require each school
  district and open-enrollment charter school to annually report
  through the Public Education Information Management System
  information regarding] the total number of students, other than
  students described by Subdivision (6) [Subsection (a-4)], enrolled
  in the district or school with whom the district or school, as
  applicable, used intervention strategies, as that term is defined
  by Section 26.004, at any time during the year for which the report
  is made; and
               (6)  [. The agency shall maintain the information
  provided in accordance with this subsection.
         [(a-4)     The commissioner by rule shall require each school
  district and open-enrollment charter school to annually report
  through the Public Education Information Management System
  information regarding] the total number of students enrolled in the
  district or school to whom the district or school provided aids,
  accommodations, or services under Section 504, Rehabilitation Act
  of 1973 (29 U.S.C. Section 794), at any time during the year for
  which the report is made.
         (c)  The agency shall maintain the information provided in
  accordance with this section [subsection].
         SECTION 1.012.  Section 42.009, Education Code, is
  transferred to Subchapter A, Chapter 48, Education Code, as added
  by this Act, redesignated as Section 48.010, Education Code, and
  amended to read as follows:
         Sec. 48.010  [42.009].  DETERMINATION OF FUNDING LEVELS.
  (a)  Not later than July 1 of each year, the commissioner shall
  determine for each school district whether the estimated amount of
  state and local funding per student in weighted average daily
  attendance to be provided to the district under the Foundation
  School Program for maintenance and operations for the following
  school year is less than the amount provided to the district for the
  2010-2011 school year.  If the amount estimated to be provided is
  less, the commissioner shall certify the percentage decrease in
  funding to be provided to the district.
         (b)  In making the determinations regarding funding levels
  required by Subsection (a), the commissioner shall:
               (1)  make adjustments as necessary to reflect changes
  in a school district's maintenance and operations tax rate;
               (2)  for a district required to [take action under
  Chapter 41 to] reduce its local revenue level under Section 48.257
  [wealth per student to the equalized wealth level], base the
  determinations on the district's net funding levels after deducting
  any amounts required to be expended by the district to comply with
  Chapter 49 [41]; and
               (3)  determine a district's weighted average daily
  attendance in accordance with this chapter as it existed on January
  1, 2011.
         SECTION 1.013.  Subchapter A, Chapter 48, Education Code, as
  added by this Act, is amended by adding Section 48.011 to read as
  follows:
         Sec. 48.011.  COMMISSIONER AUTHORITY TO RESOLVE UNINTENDED
  CONSEQUENCES FROM SCHOOL FINANCE FORMULAS. (a) Subject to
  Subsections (b) and (d), the commissioner may adjust a school
  district's funding entitlement under this chapter if the funding
  formulas used to determine the district's entitlement result in an
  unanticipated loss or gain for a district.
         (b)  Before making an adjustment under Subsection (a), the
  commissioner shall notify the office of the governor and the
  Legislative Budget Board. If, not later than the 30th day after the
  date the office of the governor and the Legislative Budget Board
  receive notice under this subsection, the commissioner does not
  receive disapproval from either of the entities, the commissioner
  may make the adjustment.
         (c)  Each biennium in which the commissioner makes an
  adjustment under Subsection (a), the commissioner must provide to
  the district an explanation regarding the changes necessary to
  resolve the unintended consequences.
         (d)  Beginning with the 2023-2024 school year, the
  commissioner may not make an adjustment under Subsection (a).
         (e)  This section expires September 1, 2025.
         SECTION 1.014.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter B, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER B. BASIC ENTITLEMENT
         SECTION 1.015.  Sections 42.101, 42.105, and 42.106,
  Education Code, are transferred to Subchapter B, Chapter 48,
  Education Code, as added by this Act, redesignated as Sections
  48.051, 48.052, and 48.053, Education Code, and amended to read as
  follows:
         Sec. 48.051  [42.101].  BASIC ALLOTMENT. (a) For each
  student in average daily attendance, not including the time
  students spend each day in special education programs in an
  instructional arrangement other than mainstream or career and
  technology education programs, for which an additional allotment is
  made under Subchapter C, a district is entitled to an allotment
  equal to the lesser of $6,030 [$4,765] or the amount that results
  from the following formula:
  A = $6,030 [$4,765] X TR/MCR [(DCR/MCR)]
  where:
         "A" is the allotment to which a district is entitled;
         "TR" ["DCR"] is the district's tier one maintenance and
  operations [compressed] tax rate, as provided by Section 45.0032[,
  which is the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year];
  and
         "MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 48.255 [42.2516], multiplied by $1.00 [$1.50].
         [(a-1)     Notwithstanding Subsection (a), for a school
  district that adopted a maintenance and operations tax rate for the
  2005 tax year below the maximum rate permitted by law for that year,
  the district's compressed tax rate ("DCR") includes the portion of
  the district's current maintenance and operations tax rate in
  excess of the first six cents above the district's compressed tax
  rate, as defined by Subsection (a), until the district's compressed
  tax rate computed in accordance with this subsection is equal to the
  state maximum compressed tax rate ("MCR").]
         (b)  A greater amount for any school year may be provided by
  appropriation.
         [(c)     This subsection applies to a school district for which
  the compressed tax rate ("DCR") is determined in accordance with
  Subsection (a-1). Any reduction in the district's adopted
  maintenance and operations tax rate is applied to the following
  components of the district's tax rate in the order specified:
               [(1)  tax effort described by Section 42.302(a-1)(2);
               [(2)     tax effort described by Section 42.302(a-1)(1);
  and
               [(3)     tax effort included in the determination of the
  district's compressed tax rate ("DCR") under Subsection (a-1).]
         Sec. 48.052 [42.105].  SPARSITY ADJUSTMENT. (a)  
  Notwithstanding Section 48.051 [Sections 42.101, 42.102, and
  42.103], a school district that has fewer than 130 students in
  average daily attendance shall be provided a [an adjusted] basic
  allotment on the basis of 130 students in average daily attendance
  if it 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. A district offering a kindergarten through grade 8
  program whose preceding or current year's average daily attendance
  was at least 50 students or which is 30 miles or more by bus route
  from the nearest high school district shall be provided a [an
  adjusted] basic allotment on the basis of 75 students in average
  daily attendance. An average daily attendance of 60 students shall
  be the basis of providing the [adjusted] basic allotment if a
  district offers a kindergarten through grade 6 program and has
  preceding or current year's average daily attendance of at least 40
  students or is 30 miles or more by bus route from the nearest high
  school district.
         (b)  Subsection (c) applies only to a school district that:
               (1)  does not offer each grade level from kindergarten
  through grade 12 and whose prospective or former students generally
  attend school in a state that borders this state for the grade
  levels the district does not offer;
               (2)  serves both students residing in this state and
  students residing in a state that borders this state who are
  subsequently eligible for in-state tuition rates at institutions of
  higher education in either state regardless of the state in which
  the students reside; and
               (3)  shares students with an out-of-state district that
  does not offer competing instructional services.
         (c)  Notwithstanding Subsection (a) or Section 48.051
  [Sections 42.101, 42.102, and 42.103], a school district to which
  this subsection applies, as provided by Subsection (b), that has
  fewer than 130 students in average daily attendance shall be
  provided a [an adjusted] basic allotment on the basis of 130
  students in average daily attendance if it offers a kindergarten
  through grade four program and has preceding or current year's
  average daily attendance of at least 75 students or is 30 miles or
  more by bus route from the nearest high school district.
         Sec. 48.053 [42.106].  TUITION ALLOTMENT FOR DISTRICTS NOT
  OFFERING ALL GRADE LEVELS. A school district that contracts for
  students residing in the district to be educated in another
  district under Section 25.039(a) is entitled to receive an
  allotment equal to the total amount of tuition required to be paid
  by the district under Section 25.039, not to exceed the amount
  specified by commissioner rule under Section 25.039(b).
         SECTION 1.016.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter C, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER C. STUDENT-BASED ALLOTMENTS
         SECTION 1.017.  Subchapter C, Chapter 48, Education Code, as
  added by this Act, is amended by adding Section 48.101 to read as
  follows:
         Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT.  (a)  
  Small and mid-sized districts are entitled to an annual allotment
  in accordance with this section.  In this section:
               (1)  "AA" is the district's annual allotment per
  student;
               (2)  "ADA" is the number of students in average daily
  attendance for which the district is entitled to an allotment under
  Section 48.051;
               (3)  "BA" is the basic allotment determined under
  Section 48.051; and
               (4)  "SS" is the small-sized district allotment
  determined under Subsection (b).
         (b)  A school district that has more than 450 but not more
  than 1,600 students in average daily attendance is entitled to an
  annual allotment for each student in average daily attendance based
  on the following formula:
  AA = ((1,600 - ADA) X .0004) X BA
         (c)  A school district that has not more than 450 students in
  average daily attendance is entitled to an annual allotment for
  each student in average daily attendance based on the following
  formula:
  AA = (1 + ((450 - ADA) X .00015)) X SS
         (d)  A school district that offers a kindergarten through
  grade 12 program and has less than 5,000 students in average daily
  attendance is entitled to an annual allotment for each student in
  average daily attendance based on the formula, of the following
  formulas, that results in the greatest annual allotment:
               (1)  the formula in Subsection (b) or (c) for which the
  district is eligible; or
               (2)  AA = ((5,000 - ADA) X .000025) X BA.
         SECTION 1.018.  Section 42.151, Education Code, is
  transferred to Subchapter C, Chapter 48, Education Code, as added
  by this Act, redesignated as Section 48.102, Education Code, and
  amended to read as follows:
         Sec. 48.102 [42.151].  SPECIAL EDUCATION. (a) For each
  student in average daily attendance in a special education program
  under Subchapter A, Chapter 29, in a mainstream instructional
  arrangement, a school district is entitled to an annual allotment
  equal to the [adjusted] basic allotment multiplied by 1.1. For each
  full-time equivalent student in average daily attendance in a
  special education program under Subchapter A, Chapter 29, in an
  instructional arrangement other than a mainstream instructional
  arrangement, a district is entitled to an annual allotment equal to
  the [adjusted] basic allotment multiplied by a weight determined
  according to instructional arrangement as follows:
               Homebound5.0
               Hospital class3.0
               Speech therapy5.0
               Resource room3.0
               Self-contained, mild and moderate,
               regular campus3.0
               Self-contained, severe, regular campus3.0
               Off home campus2.7
               Nonpublic day school1.7
               Vocational adjustment class2.3
         (b)  A special instructional arrangement for students with
  disabilities residing in care and treatment facilities, other than
  state schools, whose parents or guardians do not reside in the
  district providing education services shall be established by
  commissioner rule [under the rules of the State Board of
  Education]. The funding weight for this arrangement shall be 4.0
  for those students who receive their education service on a local
  school district campus. A special instructional arrangement for
  students with disabilities residing in state schools shall be
  established by commissioner rule [under the rules of the State
  Board of Education] with a funding weight of 2.8.
         (c)  For funding purposes, the number of contact hours
  credited per day for each student in the off home campus
  instructional arrangement may not exceed the contact hours credited
  per day for the multidistrict class instructional arrangement in
  the 1992-1993 school year.
         (d)  For funding purposes the contact hours credited per day
  for each student in the resource room; self-contained, mild and
  moderate; and self-contained, severe, instructional arrangements
  may not exceed the average of the statewide total contact hours
  credited per day for those three instructional arrangements in the
  1992-1993 school year.
         (e)  The commissioner [State Board of Education] by rule
  shall prescribe the qualifications an instructional arrangement
  must meet in order to be funded as a particular instructional
  arrangement under this section. In prescribing the qualifications
  that a mainstream instructional arrangement must meet, the
  commissioner [board] shall establish requirements that students
  with disabilities and their teachers receive the direct, indirect,
  and support services that are necessary to enrich the regular
  classroom and enable student success.
         (f)  In this section, "full-time equivalent student" means
  30 hours of contact a week between a special education student and
  special education program personnel.
         (g)  The commissioner [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 by commissioner [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 their educational needs.
         (j) [(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 funds in an amount equal to 75
  percent, or a lesser percentage determined by the commissioner, of
  the [adjusted] basic allotment [or adjusted allotment, as
  applicable,] for each full-time equivalent student in average daily
  attendance, multiplied by the amount designated 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 section may not exceed $10 million per year. A
  school district may use funds received under this section only in
  providing an extended year program.
         (k) [(l)]  From the total amount of funds appropriated for
  special education under this section, the commissioner shall
  withhold an amount specified in the General Appropriations Act, and
  distribute that amount to school districts for programs under
  Section 29.014. The program established under that section is
  required only in school districts in which the program is financed
  by funds distributed under this subsection and any other funds
  available for the program. After deducting the amount withheld
  under this subsection from the total amount appropriated for
  special education, the commissioner shall reduce each district's
  allotment proportionately and shall allocate funds to each district
  accordingly.
         (l)  The commissioner by rule shall increase the indirect
  cost allotment established under Subsection (h) and in effect for
  the 2010-2011 school year in proportion to the average percentage
  reduction in total state and local maintenance and operations
  revenue provided under former Chapter 42 for the 2011-2012 school
  year as a result of S.B. Nos. 1 and 2, Acts of the 82nd Legislature,
  1st Called Session, 2011.
         (m)  If the commissioner determines that the total amount of
  funding under this section for any school year is less than the
  amount required under 20 U.S.C. Section 1412(a)(18), the
  commissioner shall increase the total amount of funding under this
  section for that school year as necessary to comply with that
  provision. If the amount of funding available for purposes of this
  section is insufficient to fully fund the amount determined
  necessary under this subsection, the commissioner shall reduce
  other funding provided under this chapter in the manner provided by
  Section 48.266(f) to achieve the necessary amount of funding under
  this subsection.
         SECTION 1.019.  Subchapter C, Chapter 48, Education Code, as
  added by this Act, is amended by adding Section 48.103 to read as
  follows:
         Sec. 48.103.  ALLOTMENT FOR STUDENT WITH DYSLEXIA OR RELATED
  DISORDER. (a) Subject to Subsection (b), for each student that a
  school district serves who has been identified as having dyslexia
  or a related disorder, the district is entitled to an annual
  allotment equal to the district's basic allotment multiplied by 0.1
  or a greater amount provided by appropriation.
         (b)  A school district is entitled to the allotment under
  Subsection (a) only for a student who:
               (1)  is receiving instruction that:
                     (A)  meets applicable dyslexia program criteria
  established by the agency; and
                     (B)  is provided by a person with specific
  training in providing that instruction; or
               (2)  has received the instruction described by
  Subdivision (1) and is permitted, on the basis of having dyslexia or
  a related disorder, to use modifications in the classroom and
  accommodations in the administration of assessment instruments
  under Section 39.023.
         (c)  A school district may receive funding for a student
  under this section and Section 48.102 if the student satisfies the
  requirements of both sections.
         SECTION 1.020.  Sections 42.152, 42.153, 42.154, and 42.157,
  Education Code, are transferred to Subchapter C, Chapter 48,
  Education Code, as added by this Act, redesignated as Sections
  48.104, 48.105, 48.106, and 48.107, Education Code, and amended to
  read as follows:
         Sec. 48.104 [42.152].  COMPENSATORY EDUCATION ALLOTMENT.
  (a)  For each student who [is educationally disadvantaged or who is
  a student who] does not have a disability and resides in a
  residential placement facility in a district in which the student's
  parent or legal guardian does not reside, a district is entitled to
  an annual allotment equal to the [adjusted] basic allotment
  multiplied by 0.2.  For[, and by 2.41 for] each full-time equivalent
  student who is in a remedial and support program under Section
  29.081 because the student is pregnant, a district is entitled to an
  annual allotment equal to the basic allotment multiplied by 2.41.
         (b)  For each student who resides in an economically
  disadvantaged census block as determined by the commissioner under
  Subsection (c), a district is entitled to an annual allotment equal
  to the basic allotment multiplied by the weight assigned to the
  student's census block under Subsection (d).
         (c)  For purposes of the allotment under Subsection (b), the
  commissioner shall establish an index for economically
  disadvantaged census blocks in the state that provides criteria for
  determining which census blocks are economically disadvantaged and
  categorizes economically disadvantaged census blocks in five tiers
  according to relative severity of economic disadvantage. In
  determining the severity of economic disadvantage in a census
  block, the commissioner shall consider:
               (1)  the median household income;
               (2)  the average educational attainment of the
  population;
               (3)  the percentage of single-parent households;
               (4)  the rate of homeownership; and
               (5)  other economic criteria the commissioner
  determines likely to disadvantage a student's preparedness and
  ability to learn.
         (d)  The weights assigned to the five tiers of the index
  established under Subsection (c) are, from least to most severe
  economic disadvantage, 0.225, 0.2375, 0.25, 0.2625, and 0.275.
         (e)  If insufficient data is available for any school year to
  evaluate the level of economic disadvantage in a census block, a
  school district is entitled to an annual allotment equal to the
  basic allotment multiplied by 0.2 for each student who resides in
  that census block and is educationally disadvantaged. For purposes
  of this subsection [section], the number of educationally
  disadvantaged students is determined:
               (1)  by averaging the best six months' numbers of
  students eligible for enrollment in the national school lunch
  program of free or reduced-price lunches for the preceding school
  year who resided in that census block; or
               (2)  in the manner provided by commissioner rule.
         (f)  For a student who qualifies for an allotment under
  multiple provisions of this section, the school district is
  entitled to an allotment for the student under the provision that
  would result in the greatest amount of funding. 
         (g) [(b-1)]  A student receiving a full-time virtual
  education through the state virtual school network may be included
  in determining the number of students residing in an economically
  disadvantaged census block under Subsection (b) or the number of
  educationally disadvantaged students under Subsection (e) [(b)] if
  the school district submits to the commissioner a plan detailing
  the enhanced services that will be provided to the student and the
  commissioner approves the plan.
         (h)  Not later than March 1 of each year, the commissioner
  shall:
               (1)  review and, if necessary, update the index
  established under Subsection (c) to be used for the following
  school year, based on the most recent estimates published by the
  United States Census Bureau; and
               (2)  notify each school district of any changes to the
  index.
         (i)  The state demographer, the Department of Agriculture,
  and any other state agency with relevant information shall assist
  the commissioner in performing the commissioner's duties under this
  section.
         [(c)     Funds allocated under this section shall be used to
  fund 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.  
  Specifically, the funds, other than an indirect cost allotment
  established under State Board of Education rule, which may not
  exceed 45 percent, may be used to meet the costs of providing a
  compensatory, intensive, or accelerated instruction program under
  Section 29.081 or a disciplinary alternative education program
  established under Section 37.008, to pay the costs associated with
  placing students in a juvenile justice alternative education
  program established under Section 37.011, or to support a program
  eligible under Title I of the Elementary and Secondary Education
  Act of 1965, as provided by Pub. L. No.   103-382 and its subsequent
  amendments, and by federal regulations implementing that Act, at a
  campus at which at least 40 percent of the students are
  educationally disadvantaged.   In meeting the costs of providing a
  compensatory, intensive, or accelerated instruction program under
  Section 29.081, a district's compensatory education allotment
  shall be used for costs supplementary to the regular education
  program, such as costs for program and student evaluation,
  instructional materials and equipment and other supplies required
  for quality instruction, supplemental staff expenses, salary for
  teachers of at-risk students, smaller class size, and
  individualized instruction.     A home-rule school district or an
  open-enrollment charter school must use funds allocated under
  Subsection (a) for a purpose authorized in this subsection but is
  not otherwise subject to Subchapter C, Chapter 29.   For purposes of
  this subsection, a program specifically designed to serve students
  at risk of dropping out of school, as defined by Section 29.081, is
  considered to be a program supplemental to the regular education
  program, and a district may use its compensatory education
  allotment for such a program.
         [(c-1)     Notwithstanding Subsection (c), funds allocated
  under this section may be used to fund in proportion to the
  percentage of students served by the program that meet the criteria
  in Section 29.081(d) or (g):
               [(1)     an accelerated reading instruction program under
  Section 28.006(g); or
               [(2)     a program for treatment of students who have
  dyslexia or a related disorder as required by Section 38.003.
         [(c-2)     Notwithstanding Subsection (c), funds allocated
  under this section may be used to fund a district's mentoring
  services program under Section 29.089.
         [(d)     The agency shall evaluate the effectiveness of
  accelerated instruction and support programs provided under
  Section 29.081 for students at risk of dropping out of school.
         [(q)     The State Board of Education, with the assistance of
  the comptroller, shall develop and implement by rule reporting and
  auditing systems for district and campus expenditures of
  compensatory education funds to ensure that compensatory education
  funds, other than the indirect cost allotment, are spent only to
  supplement the regular education program as required by Subsection
  (c). The reporting requirements shall be managed electronically to
  minimize local administrative costs. A district shall submit the
  report required by this subsection not later than the 150th day
  after the last day permissible for resubmission of information
  required under Section 42.006.
         [(q-1)     The commissioner shall develop a system to identify
  school districts that are at high risk of having used compensatory
  education funds other than in compliance with Subsection (c) or of
  having inadequately reported compensatory education expenditures.
  If a review of the report submitted under Subsection (q), using the
  risk-based system, indicates that a district is not at high risk of
  having misused compensatory education funds or of having
  inadequately reported compensatory education expenditures, the
  district may not be required to perform a local audit of
  compensatory education expenditures and is not subject to on-site
  monitoring under this section.
         [(q-2)     If a review of the report submitted under Subsection
  (q), using the risk-based system, indicates that a district is at
  high risk of having misused compensatory education funds, the
  commissioner shall notify the district of that determination. The
  district must respond to the commissioner not later than the 30th
  day after the date the commissioner notifies the district of the
  commissioner's determination. If the district's response does not
  change the commissioner's determination that the district is at
  high risk of having misused compensatory education funds or if the
  district does not respond in a timely manner, the commissioner
  shall:
               [(1)     require the district to conduct a local audit of
  compensatory education expenditures for the current or preceding
  school year;
               [(2)     order agency staff to conduct on-site monitoring
  of the district's compensatory education expenditures; or
               [(3)     both require a local audit and order on-site
  monitoring.
         [(q-3)     If a review of the report submitted under Subsection
  (q), using the risk-based system, indicates that a district is at
  high risk of having inadequately reported compensatory education
  expenditures, the commissioner may require agency staff to assist
  the district in following the proper reporting methods or amending
  a district or campus improvement plan under Subchapter F, Chapter
  11. If the district does not take appropriate corrective action
  before the 45th day after the date the agency staff notifies the
  district of the action the district is expected to take, the
  commissioner may:
               [(1)     require the district to conduct a local audit of
  the district's compensatory education expenditures; or
               [(2)     order agency staff to conduct on-site monitoring
  of the district's compensatory education expenditures.
         [(q-4)     The commissioner, in the year following a local audit
  of compensatory education expenditures, shall withhold from a
  district's foundation school fund payment an amount equal to the
  amount of compensatory education funds the agency determines were
  not used in compliance with Subsection (c). The commissioner shall
  release to a district funds withheld under this subsection when the
  district provides to the commissioner a detailed plan to spend
  those funds in compliance with Subsection (c).
         [(r)     The commissioner shall grant a one-year exemption from
  the requirements of Subsections (q)-(q-4) to a school district in
  which the group of students who have failed to perform
  satisfactorily in the preceding school year on an assessment
  instrument required under Section 39.023(a), (c), or (l)
  subsequently performs on those assessment instruments at a level
  that meets or exceeds a level prescribed by commissioner rule. Each
  year the commissioner, based on the most recent information
  available, shall determine if a school district is entitled to an
  exemption for the following school year and notify the district of
  that determination.]
         Sec. 48.105 [42.153].  BILINGUAL EDUCATION ALLOTMENT.
  [(a)] 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 equal to the
  [adjusted] basic allotment multiplied by:
               (1)  for a student of limited English proficiency, as
  defined by Section 29.052:
                     (A)  0.1; or
                     (B)  0.15 if the student is in a bilingual
  education program using a dual language immersion/one-way or
  two-way program model; and
               (2)  for a student not described by Subdivision (1),
  0.05.
         [(b)     Funds allocated under this section, other than an
  indirect cost allotment established under State Board of Education
  rule, must be used in providing bilingual education or special
  language programs under Subchapter B, Chapter 29, and must be
  accounted for under existing agency reporting and auditing
  procedures.
         [(c)     A district's bilingual education or special language
  allocation may be used only for program and student evaluation,
  instructional materials and equipment, staff development,
  supplemental staff expenses, salary supplements for teachers, and
  other supplies required for quality instruction and smaller class
  size.]
         Sec. 48.106  [42.154].  CAREER AND TECHNOLOGY EDUCATION
  ALLOTMENT. (a)  For each full-time equivalent student in average
  daily attendance in an approved career and technology education
  program in grades 6 [nine] through 12 [or in career and technology
  education programs for students with disabilities in grades seven
  through 12], a district is entitled to:
               (1)  an annual allotment equal to the [adjusted] basic
  allotment multiplied by a weight of 1.35; and
               (2)  $50, if the student is enrolled in two or more
  advanced career and technology education classes for a total of
  three or more credits.
         (b)  In this section:
               (1)  "Career and technology education class" and
  "career and technology education program" mean a class or program
  that aligns with requirements for career and technical education
  under the Strengthening Career and Technical Education for the 21st
  Century Act (Pub. L. No. 115-224). The terms include a technology
  applications course [on cybersecurity adopted or selected by the
  State Board of Education under Section 28.025(c-10)].
               (2)  "Full-time equivalent student" means 30 hours of
  contact a week between a student and career and technology
  education program personnel.
         [(c)     Funds allocated under this section, other than an
  indirect cost allotment established under State Board of Education
  rule, must be used in providing career and technology education
  programs in grades nine through 12 or career and technology
  education programs for students with disabilities in grades seven
  through 12 under Sections 29.182, 29.183, and 29.184.
         [(d)     The commissioner shall conduct a cost-benefit
  comparison between career and technology education programs and
  mathematics and science programs.
         [(e)     Out of the total statewide allotment for career and
  technology education under this section, the commissioner shall set
  aside an amount specified in the General Appropriations Act, which
  may not exceed an amount equal to one percent of the total amount
  appropriated, to support regional career and technology education
  planning. After deducting the amount set aside under this
  subsection from the total amount appropriated for career and
  technology education under this section, the commissioner shall
  reduce each district's tier one allotments in the same manner
  described for a reduction in allotments under Section 42.253.]
         Sec. 48.107  [42.157].  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
  equal to the [adjusted] basic allotment multiplied by a weight of
  0.1.
         (b)  The total number of allotments under this section to
  which a 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.
         SECTION 1.021.  Subchapter C, Chapter 48, Education Code, as
  added by this Act, is amended by adding Section 48.108 to read as
  follows:
         Sec. 48.108.  EARLY READING ALLOTMENT. (a)  For each student
  in average daily attendance in kindergarten through third grade, a
  school district is entitled to an annual allotment equal to the
  district's basic allotment multiplied by 0.1 if the student is:
               (1)  educationally disadvantaged; or
               (2)  in a bilingual education or special language
  program under Subchapter B, Chapter 29.
         (b)  A school district is entitled to an allotment under each
  subdivision of Subsection (a) for which a student qualifies.
         (c)  A school district may receive funding for a student
  under this section and under Sections 48.104 and 48.105, as
  applicable, if the student satisfies the requirements of each
  applicable section.
         SECTION 1.022.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter D, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER D. ADDITIONAL FUNDING
         SECTION 1.023.  Sections 42.155 and 42.158, Education Code,
  are transferred to Subchapter D, Chapter 48, Education Code, as
  added by this Act, redesignated as Sections 48.151 and 48.152,
  Education Code, and amended to read as follows:
         Sec. 48.151  [42.155].  TRANSPORTATION ALLOTMENT. (a) Each
  district or county operating a transportation system is entitled to
  allotments for transportation costs as provided by this section.
         (b)  As used in this section:
               (1)  "Regular eligible student" means a student who
  resides two or more miles from the student's campus of regular
  attendance, measured along the shortest route that may be traveled
  on public roads, and who is not classified as a student eligible for
  special education services.
               (2)  "Eligible special education student" means a
  student who is eligible for special education services under
  Section 29.003 and who would be unable to attend classes without
  special transportation services.
               [(3)     "Linear density" means the average number of
  regular eligible students transported daily, divided by the
  approved daily route miles traveled by the respective
  transportation system.]
         (c)  Each district or county operating a regular
  transportation system is entitled to an allotment based on a rate
  per mile [the daily cost] per regular eligible student set [of
  operating and maintaining the regular transportation system and the
  linear density of that system. In determining the cost, the
  commissioner shall give consideration to factors affecting the
  actual cost of providing these transportation services in each
  district or county. The average actual cost is to be computed by the
  commissioner and included for consideration] by the legislature in
  the General Appropriations Act. [The allotment per mile of approved
  route may not exceed the amount set by appropriation.]
         (d)  A district or county may apply for and on approval of the
  commissioner receive an additional amount of up to 10 percent of its
  regular transportation allotment to be used for the transportation
  of children living within two miles of the school they attend who
  would be subject to hazardous traffic conditions or a high risk of
  violence if they walked to school.
         (d-1)  For purposes of Subsection (d), each board of trustees
  shall provide to the commissioner an explanation of the hazardous
  traffic conditions or areas presenting a high risk of violence
  applicable to that district and shall identify the specific
  hazardous or high-risk areas for which the allocation is
  requested.  A hazardous traffic condition exists where no walkway
  is provided and children must walk along or cross a freeway or
  expressway, an underpass, an overpass or a bridge, an uncontrolled
  major traffic artery, an industrial or commercial area, or another
  comparable condition.  An area presents a high risk of violence if
  law enforcement records indicate a high incidence of violent crimes
  in the area.  Each board of trustees requesting funds for an area
  presenting a high risk of violence must, in addition to the
  explanation required by this subsection, provide the commissioner
  with consolidated law enforcement records that document violent
  crimes identified by reporting agencies within the relevant
  jurisdiction.
         (d-2)  A district or county may use all or part of any funds
  received under Subsection (d) to support community walking
  transportation programs, including walking school bus programs,
  provided that the district or county requires each supported
  program to submit a financial report to the district or county each
  semester that covers services provided by the program for the
  benefit of the district or county.  The commissioner shall adopt
  rules governing the transportation allotment as necessary to permit
  a district or county to receive funds under Subsection (d) that may
  be used to support innovative school safety projects, including
  community walking transportation programs as provided by this
  subsection and any other appropriate safety project, including
  rules defining an approved walking route mile that may be used as
  necessary in implementing this subsection.
         (e)  The commissioner may grant an amount set by
  appropriation for private or commercial transportation for
  eligible students from isolated areas. The need for this type of
  transportation grant shall be determined on an individual basis and
  the amount granted shall not exceed the actual cost. The grants may
  be made only in extreme hardship cases. A grant may not be made if
  the students live within two miles of an approved school bus route.
         (f)  The cost of transporting career and technology
  education students from one campus to another inside a district or
  from a sending district to another secondary public school for a
  career and technology program or an area career and technology
  school or to an approved post-secondary institution under a
  contract for instruction approved by the agency shall be reimbursed
  based on the number of actual miles traveled times the district's
  official extracurricular travel per mile rate as set by the board of
  trustees and approved by the agency.
         (g)  A school district or county that provides special
  transportation services for eligible special education students is
  entitled to a state allocation paid on a previous year's
  cost-per-mile basis.  The [maximum] rate per mile allowable shall
  be set by appropriation based on data gathered from the first year
  of each preceding biennium. Districts may use a portion of their
  support allocation to pay transportation costs, if necessary.  The
  commissioner may grant an amount set by appropriation for private
  transportation to reimburse parents or their agents for
  transporting eligible special education students. The mileage
  allowed shall be computed along the shortest public road from the
  student's home to school and back, morning and afternoon.  The need
  for this type transportation shall be determined on an individual
  basis and shall be approved only in extreme hardship cases.
         (h)  Funds allotted under this section must be used in
  providing transportation services.
         (i)  In the case of a district belonging to a county
  transportation system, the district's transportation allotment for
  purposes of determining a district's foundation school program
  allocations is determined on the basis of the number of approved
  daily route miles in the district [multiplied by the allotment per
  mile to which the county transportation system is entitled].
         (j)  The Texas School for the Deaf is entitled to an
  allotment under this section. The commissioner shall determine the
  appropriate allotment.
         (k)  Notwithstanding any other provision of this section,
  the commissioner may not reduce the allotment to which a district or
  county is entitled under this section because the district or
  county provides transportation for an eligible student to and from
  a child-care facility, as defined by Section 42.002, Human
  Resources Code, or a grandparent's residence instead of the
  student's residence, as authorized by Section 34.007[, if the
  transportation is provided within the approved routes of the
  district or county for the school the student attends].
         (l)  A school district may, with the funds allotted under
  this section, provide a bus pass or card for another transportation
  system to each student who is eligible to use the regular
  transportation system of the district but for whom the regular
  transportation system of the district is not a feasible method of
  providing transportation. The commissioner by rule shall provide
  procedures for a school district to provide bus passes or cards to
  students under this subsection.
         (m)  A school district shall be reimbursed on a per-mile
  basis for the cost of transporting a dual credit student to another
  campus in the district, a campus in another district, or a
  postsecondary educational institution for purposes of attending
  the course, if the course is not available at the student's campus.
         Sec. 48.152  [42.158].  NEW INSTRUCTIONAL FACILITY
  ALLOTMENT. (a) In this section:
               (1)  "Instructional facility" has the meaning assigned
  by Section 46.001.
               (2)  "New instructional facility" includes:
                     (A)  a newly constructed instructional facility;
                     (B)  a repurposed instructional facility; and
                     (C)  a leased facility operating for the first
  time as an instructional facility with a minimum lease term of not
  less than 10 years.
         (b)  A school district is entitled to an additional allotment
  as provided by this section for operational expenses associated
  with opening a new instructional facility.
         (c) [(a-1)]  A school district entitled to an allotment
  under this section may use funds from the district's allotment to
  renovate an existing instructional facility to serve as a dedicated
  cybersecurity computer laboratory.
         (d) [(b)]  For the first school year in which students attend
  a new instructional facility, a school district is entitled to an
  allotment of $1,000 for each student in average daily attendance at
  the facility.  For the second school year in which students attend
  that instructional facility, a school district is entitled to an
  allotment of $1,000 for each additional student in average daily
  attendance at the facility.
         (e) [(c)]  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.
         (f)  The [(d)  Subject to Subsection (d-1), the] amount
  appropriated for allotments under this section may not exceed $100
  [$25] million in a school year.  If the total amount of allotments
  to which districts are entitled under this section for a school year
  exceeds the amount appropriated under this subsection, the
  commissioner shall reduce each district's allotment under this
  section in the manner provided by Section 48.266(f) [42.253(h)].
         [(d-1)     In addition to the appropriation amount described by
  Subsection (d), the amount of $1 million may be appropriated each
  school year to supplement the allotment to which a school district
  is entitled under this section that may be provided using the
  appropriation amount described by Subsection (d).     The
  commissioner shall first apply the funds appropriated under this
  subsection to prevent any reduction under Subsection (d) in the
  allotment for attendance at an eligible high school instructional
  facility, subject to the maximum amount of $1,000 for each student
  in average daily attendance.     Any funds remaining after preventing
  all reductions in amounts due for high school instructional
  facilities may be applied proportionally to all other eligible
  instructional facilities, subject to the maximum amount of $1,000
  for each student in average daily attendance.
         [(e)     A school district that is required to take action under
  Chapter 41 to reduce its wealth per student to the equalized wealth
  level is entitled to a credit, in the amount of the allotments to
  which the district is entitled under this section, against the
  total amount required under Section 41.093 for the district to
  purchase attendance credits. A school district that is otherwise
  ineligible for state aid under this chapter is entitled to receive
  allotments under this section.
         [(f)     The commissioner may adopt rules necessary to
  implement this section.
         [(g)  In this section:
               [(1)     "Instructional facility" has the meaning
  assigned by Section 46.001.
               [(2)  "New instructional facility" includes:
                     [(A)  a newly constructed instructional facility;
                     [(B)  a repurposed instructional facility; and
                     [(C)     a leased facility operating for the first
  time as an instructional facility with a minimum lease term of not
  less than 10 years.]
         SECTION 1.024.  Subchapter D, Chapter 48, Education Code, as
  added by this Act, is amended by adding Sections 48.153, 48.154,
  48.155, 48.156, and 48.157 to read as follows:
         Sec. 48.153.  EDUCATOR SALARY TRANSITION ALLOTMENT FOR
  MINIMUM SALARY INCREASE. (a) A school district to which Section
  21.402 applies for the 2019-2020 school year is entitled to receive
  an annual allotment as determined by the following formula:
  A = 1.5 X S - ((CYM&O - BYM&O) X ADA)
  where:
         "A" is the allotment a district receives for purposes of
  paying the increased costs associated with the minimum salary
  schedule under Section 21.402 beginning with the 2019-2020 school
  year;
         "S" is the total amount of additional costs a district would
  be required to pay for salary and benefits for employees subject to
  the minimum salary schedule in the 2017-2018 school year if the
  minimum salary schedule for the 2019-2020 school year applied to
  those employees;
         "CYM&O" is the amount of a district's maintenance and
  operations entitlement under this chapter per student in average
  daily attendance for the current school year;
         "BYM&O" is the amount of a district's maintenance and
  operations entitlement under this chapter per student in average
  daily attendance for the 2018-2019 school year; and
         "ADA" is the average daily attendance for a district for the
  current school year.
         (b)  For purposes of calculating the formula in Subsection
  (a), the commissioner shall:
               (1)  if the value of "A" results in a negative number,
  use zero for the value of "A";
               (2)  include in the calculation of an employee's salary
  and benefits an additional 4.2 percent of the amount that the
  employee is entitled to receive under the minimum salary schedule
  in effect for the 2019-2020 school year for the increased costs of
  Medicare and other payroll benefits;
               (3)  exclude 50 percent of the following amounts to
  which a district is entitled in the calculation of a district's
  maintenance and operations entitlement:
                     (A)  the early reading allotment under Section
  48.108;
                     (B)  the educator effectiveness allotment under
  Section 48.154; and
                     (C)  amounts received as educator effectiveness
  fee reimbursement under Section 48.157;
               (4)  adjust the calculation under Subsection (a) to
  reflect:
                     (A)  a reduction in tax effort by a district;
                     (B)  property value adjustments due to a disaster;
                     (C)  any additional state aid due to disaster
  remediation; and
                     (D)  the sparsity adjustment under Section
  48.052;
               (5)  exclude funding provided to a district for the
  2018-2019 school year under former Sections 41.002(e)-(g) and
  former Subchapter H, Chapter 42;
               (6)  if a school district 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 number
  of educationally disadvantaged students on which the district's
  entitlement to compensatory education funds was based for the
  school year before the school year in which the district received
  the waiver, adjusted for estimated enrollment growth; and
               (7)  include increased state contributions made under
  Section 825.405, Government Code, for the current school year as
  compared to the 2018-2019 school year.
         (c)  A decision by the commissioner under this section is
  final and may not be appealed.
         Sec. 48.154.  EDUCATOR EFFECTIVENESS ALLOTMENT. (a) In this
  section, "classroom teacher" has the meaning assigned by Section
  21.751.
         (b)  For each classroom teacher with a teacher designation
  under Subchapter P, Chapter 21, employed by a school district, the
  school district is entitled to an allotment equal to:
  A = B + (SCE X DM)
  where:
         "A" is the allotment provided to a school district per
  classroom teacher who holds a teacher designation;
         "B" is the applicable base amount for a classroom teacher
  provided under Subsection (c);
         "SCE" is the state compensatory education factor determined
  under Subsection (d); and
         "DM" is the applicable designation multiplier for a classroom
  teacher under Subsection (e).
         (c)  The base amount for each classroom teacher with a
  teacher designation is as follows:
               (1)  $3,000 for each recognized teacher;
               (2)  $6,000 for each exemplary teacher; and
               (3)  $12,000 for each master teacher.
         (d)  The state compensatory education factor is the amount
  equal to:
               (1)  the sum of the individual student disadvantage
  index tier values divided by the total student population of the
  campus at which the teacher for which the allotment is being
  calculated is employed, where the individual student disadvantage
  index tier values are determined as follows:
                     (A)  for a student not assigned a weight for the
  compensatory education allotment under Section 48.104(b), 0;
                     (B)  for a student assigned the smallest weight
  for the compensatory education allotment under Section 48.104(b),
  0.5;
                     (C)  for a student assigned the second smallest
  weight for the compensatory education allotment under Section
  48.104(b), 1.0;
                     (D)  for a student assigned the third smallest
  weight for the compensatory education allotment under Section
  48.104(b), 2.0;
                     (E)  for a student assigned the second greatest
  weight for the compensatory education allotment under Section
  48.104(b), 3.0; and
                     (F)  for a student assigned the greatest weight
  under Section 48.104(b), 4.0; or
               (2)  if the school district qualifies as a rural school
  district based on criteria adopted by the commissioner, the value
  that is the lesser of:
                     (A)  4.0; or
                     (B)  the value that results from Subdivision (1)
  plus 2.0.
         (e)  The designation multiplier is as follows for the
  applicable teacher designation:
               (1)  $1,500 for recognized;
               (2)  $3,000 for exemplary; and
               (3)  $5,000 for master.
         (f)  A district's allotment under Subsection (b) for a
  classroom teacher may not be greater than $32,000.
         (g)  A school district is not eligible for an allotment under
  Subsection (b) for a classroom teacher whose designation has
  expired or been revoked.
         (h)  The commissioner shall provide in an easily readable
  format a list of campuses with the potential allotment amounts that
  would be available for teachers with designations employed at the
  campus.
         (i)  A district shall annually certify that all funds
  received under this section were used for:
               (1)  educator compensation;
               (2)  costs associated with implementing Subchapter P,
  Chapter 21; or
               (3)  professional development for educators.
         (j)  The commissioner shall provide funding under this
  section for teacher designations made on the basis of a classroom
  teacher's performance during the 2018-2019 school year if the
  district:
               (1)  receives approval from the commissioner during the
  2019-2020 school year for the district's local teacher designation
  system; and
               (2)  provides compensation to a classroom teacher for
  the 2019-2020 school year based on the teacher's qualifying
  performance for a designation.
         (j-1)  Subsection (j) and this subsection expire September
  1, 2020.
         Sec. 48.155.  COLLEGE PREPARATION ASSESSMENT REIMBURSEMENT.
  A school district is entitled to reimbursement for the amount of
  fees paid by the district for the administration of an assessment
  instrument under Section 39.0261(a)(3).
         Sec. 48.156.  CERTIFICATION EXAMINATION REIMBURSEMENT. A
  school district is entitled to reimbursement for the amount of a
  subsidy paid by the district for a certification examination under
  Section 29.190(a) as provided by Section 29.190(c).
         Sec. 48.157.  EDUCATOR EFFECTIVENESS FEE REIMBURSEMENT. (a)
  A school district is entitled to reimbursement for any fee paid
  under Subchapter P, Chapter 21, or membership fees paid to the
  National Board for Professional Standards for the purpose of
  Section 21.753(b).
         (b)  The commissioner shall provide reimbursement under this
  section for fees relating to teacher designations made on the basis
  of a classroom teacher's performance during the 2018-2019 school
  year if the district:
               (1)  receives approval from the commissioner during the
  2019-2020 school year for the district's local teacher designation
  system; and
               (2)  provides compensation to a classroom teacher for
  the 2019-2020 school year based on the teacher's qualifying
  performance for a designation.
         (b-1)  Subsection (b) and this subsection expire September
  1, 2020.
         SECTION 1.025.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter E, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER E. TIER TWO ENTITLEMENT
         SECTION 1.026.  Sections 42.301, 42.302, 42.303, and 42.304,
  Education Code, are transferred to Subchapter E, Chapter 48,
  Education Code, as added by this Act, redesignated as Sections
  48.201, 48.202, 48.203, and 48.204, Education Code, and amended to
  read as follows:
         Sec. 48.201  [42.301].  PURPOSE. The purpose of the tier
  two [guaranteed yield] component of the Foundation School Program
  is to provide each school district with the opportunity to provide
  the basic program and to supplement that 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. 48.202  [42.302]. TIER TWO ALLOTMENT. (a) Each school
  district is guaranteed a specified amount per weighted student in
  state and local funds for each cent of tax effort over that required
  for the district's local fund assignment up to the maximum level
  specified in this subchapter. The amount of state support, subject
  only to the maximum amount under Section 48.203 [42.303], is
  determined by the formula:
  GYA = (GL X WADA X DTR X 100) - LR
  where:
         "GYA" is the guaranteed yield amount of state funds to be
  allocated to the district;
         "GL" is the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort, which is an
  amount described by Subsection (a-1) or a greater amount for any
  year provided by appropriation;
         "WADA" is the number of students in weighted average daily
  attendance, which is calculated by dividing the sum of the school
  district's allotments under Subchapters B and C[, less any
  allotment to the district for transportation, any allotment under
  Section 42.158 or 42.160, and 50 percent of the adjustment under
  Section 42.102,] by the basic allotment for the applicable year;
         "DTR" is the district enrichment tax rate of the school
  district, which is determined by subtracting the amounts specified
  by Subsection (b) from the total amount of maintenance and
  operations taxes collected by the school district for the
  applicable school year and dividing the difference by the quotient
  of the district's taxable value of property as determined under
  Subchapter M, Chapter 403, Government Code, or, if applicable,
  under Section 48.258 [42.2521], divided by 100; and
         "LR" is the local revenue, which is determined by multiplying
  "DTR" by the quotient of the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 48.258 [42.2521], divided by 100.
         (a-1)  For purposes of Subsection (a), the dollar amount
  guaranteed level of state and local funds per weighted student per
  cent of tax effort ("GL") for a school district is:
               (1)  the product of [greater of] the amount of district
  tax revenue per weighted student per cent of tax effort [that would
  be] available to a [the Austin Independent School District, as
  determined by the commissioner in cooperation with the Legislative
  Budget Board, if the reduction of the limitation on tax increases as
  provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not
  apply, or the amount of] district with maintenance and operations
  tax revenue per weighted student per cent of tax effort equal to the
  maximum amount provided per cent under Section 48.051(a) or (b)
  multiplied by 160 percent [used for purposes of this subdivision in
  the preceding school year], for the first eight [six] cents by which
  the district's maintenance and operations tax rate exceeds the
  district's tier one tax rate [equal to the sum of the product of the
  state compression percentage, as determined under Section 42.2516,
  multiplied by the maintenance and operations tax rate adopted by
  the district for the 2005 tax year and any additional tax effort
  included in calculating the district's compressed tax rate under
  Section 42.101(a-1)]; and
               (2)  subject to Subsection (f), the product of the
  amount of district tax revenue per weighted student per cent of tax
  effort available to a district with maintenance and operations tax
  revenue per weighted student per cent of tax effort equal to the
  maximum amount provided per cent under Section 48.051(a) or (b)
  multiplied by 80 percent [$31.95], for the district's maintenance
  and operations tax effort that exceeds the amount of tax effort
  described by Subdivision (1).
         (a-2)  The limitation on district enrichment tax rate
  ("DTR") under Section 48.203 [42.303] does not apply to the
  district's maintenance and operations tax effort described by
  Subsection (a-1)(1).
         (b)  In computing the district enrichment tax rate of a
  school district, the total amount of maintenance and operations
  taxes collected by the school district does not include the amount
  of:
               (1)  the district's local fund assignment under Section
  48.256 [42.252]; or
               (2)  taxes paid into a tax increment fund under Chapter
  311, Tax Code.
         (c)  For purposes of this section, school district taxes for
  which credit is granted under Section 31.035, 31.036, or 31.037,
  Tax Code, are considered taxes collected by the school district as
  if the taxes were paid when the credit for the taxes was granted.
         (d)  For purposes of this section, 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.
         (e)  For purposes of this section, school district taxes for
  which credit is granted under former 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.
         (f)  For a school year in which a school district's dollar
  amount guaranteed level of state and local funds under Subsection
  (a-1)(2) results in a greater amount of district tax revenue per
  weighted student per cent of tax effort than for the preceding
  school year, the school district shall reduce the district's tax
  rate under Section 45.0032(b)(2) for that tax year to a rate that
  results in the amount of district tax revenue per weighted student
  per cent of tax effort available to the district for the preceding
  year. A school district is not entitled to the amount equal to the
  increase of district tax revenue described under this section
  during the tax year in which the district must reduce the district's
  tax rate. This subsection does not apply if the amount of state
  funds for a school year specifically excludes the amount necessary
  to provide the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort under Subsection
  (a-1)(2) [If a school district imposes a maintenance and operations
  tax at a rate greater than the rate equal to the product of the state
  compression percentage, as determined under Section 42.2516,
  multiplied by the maintenance and operations tax rate adopted by
  the district for the 2005 tax year, the district is entitled to
  receive an allotment under this section on the basis of that greater
  tax effort].
         Sec. 48.203 [42.303].  LIMITATION ON ENRICHMENT TAX RATE.
  The district enrichment tax rate ("DTR") under Section 48.202
  [42.302] may not exceed the amount per $100 of valuation by which
  the maximum rate permitted under Section 45.003 exceeds the rate
  used to determine the district's local share under Section 48.256
  [42.252], or a greater amount for any year provided by
  appropriation.
         Sec. 48.204 [42.304].  COMPUTATION OF AID FOR DISTRICT ON
  MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
  this subchapter for a school district located on a federal military
  installation or at Moody State School is computed using the average
  tax rate and property value per student of school districts in the
  county, as determined by the commissioner.
         SECTION 1.027.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter F, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER F. FINANCING THE PROGRAM
         SECTION 1.028.  Sections 42.251, 42.2511, 42.2514, 42.2515,
  42.2516, and 42.252, Education Code, are transferred to Subchapter
  F, Chapter 48, Education Code, as added by this Act, redesignated as
  Sections 48.251, 48.252, 48.253, 48.254, 48.255, and 48.256,
  Education Code, and amended to read as follows:
         Sec. 48.251 [42.251].  FINANCING; GENERAL RULE. (a) The
  cost of the Foundation School Program for a school district is the
  total sum of:
               (1)  the sum of the tier one allotments and other
  funding as follows:
                     (A)  the basic allotment under Subchapter B;
                     (B)  [and] the student-based [special] allotments
  under Subchapter C; and
                     (C)  the additional funding under Subchapter D;
  and
               (2)  [, computed in accordance with this chapter,
  constitute the tier one allotments. The sum of the tier one
  allotments and] the tier two allotment [guaranteed yield
  allotments] under Subchapter E.
         (b)  The sum of the Foundation School Program maintenance and
  operations costs for all accredited school districts in this state
  constitutes [F, computed in accordance with this chapter,
  constitute] the total maintenance and operations cost of the
  Foundation School Program.
         (c) [(b)]  The program shall be financed by:
               (1)  state available school funds distributed in
  accordance with the law [ad valorem tax revenue generated by an
  equalized uniform school district effort];
               (2)  ad valorem tax revenue generated by local school
  district effort [in excess of the equalized uniform school district
  effort]; and
               (3)  [state available school funds distributed in
  accordance with law; and
               [(4)]  state funds appropriated for the purposes of
  public school education and allocated to each district in an amount
  sufficient to finance the cost of each district's Foundation School
  Program not covered by other funds specified in this subsection.
         Sec. 48.252 [42.2511].  SCHOOL DISTRICT ENTITLEMENT FOR
  CERTAIN STUDENTS. (a) This section applies only to:
               (1)  a school district and an open-enrollment charter
  school that enter into a contract to operate a district campus as
  provided by Section 11.174; and
               (2)  a charter granted by a school district for a
  program operated by an entity that has entered into a contract under
  Section 11.174, provided that the district does not appoint a
  majority of the governing body of the charter holder.
         (b)  Notwithstanding any other provision of this chapter or
  Chapter 49 [41], a school district subject to this section is
  entitled to receive for each student in average daily attendance at
  the campus described by Subsection (a) an amount equivalent to the
  difference, if the difference results in increased funding,
  between:
               (1)  the amount described by Section 12.106; and
               (2)  the amount to which the district would be entitled
  under this chapter.
         (c)  The commissioner shall adopt rules as necessary to
  administer this section.
         Sec. 48.253 [42.2514].  ADDITIONAL STATE AID FOR TAX
  INCREMENT FINANCING PAYMENTS. (a) 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 the district is required to pay into the
  tax increment fund for a reinvestment zone under Section
  311.013(n), Tax Code.
         (b)  A school district shall provide to the agency any
  agreements, amendments to agreements, or other information
  required by the agency to implement this section.
         (c)  This section does not apply to an amount a district is
  required to pay for an obligation refinanced or renewed after
  September 1, 2019.
         Sec. 48.254 [42.2515].  ADDITIONAL STATE AID FOR AD VALOREM
  TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. [(a)] 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
  former Subchapter D, Chapter 313, Tax Code.
         [(b)     The commissioner may adopt rules to implement and
  administer this section.]
         Sec. 48.255 [42.2516].  STATE COMPRESSION PERCENTAGE. (a)
  In this title, "state compression percentage" means the percentage
  of the rate of $1.00 per $100 valuation of taxable property at which
  a school district must levy a [district's adopted] maintenance and
  operations tax to receive the full amount of the tier one allotment
  to which the district is entitled under this chapter.
         (b)  The [tax rate for the 2005 tax year that serves as the
  basis for state funding. If the] state compression percentage is:
               (1)  96 percent; or
               (2)  a lower percentage set [not established] by
  appropriation for a school year.
         (c)  The[, the] commissioner may adopt rules as necessary to
  implement this section. [shall determine the state compression
  percentage for each school year based on the percentage by which a
  district is able to reduce the district's maintenance and
  operations tax rate for that year, as compared to the district's
  adopted maintenance and operations tax rate for the 2005 tax year,
  as a result of state funds appropriated for that year from the
  property tax relief fund established under Section 403.109,
  Government Code, or from another funding source available for
  school district property tax relief.
         [(g)     The commissioner may adopt rules necessary to
  implement this section.
         [(h)     A determination by the commissioner under this section
  is final and may not be appealed.]
         Sec. 48.256 [42.252].  LOCAL SHARE OF PROGRAM COST (TIER
  ONE). (a) Each school district's share of the Foundation School
  Program is determined by the following formula:
  LFA = TR X DPV
  where:
         "LFA" is the school district's local share;
         "TR" is the school district's adopted tier one maintenance
  and operations [a] tax rate, as described by Section 45.0032(c)
  [which] for each hundred dollars of valuation [is an effective tax
  rate of the amount equal to the product of the state compression
  percentage, as determined under Section 42.2516, multiplied by the
  lesser of:
               [(1)  $1.50; or
               [(2)     the maintenance and operations tax rate adopted
  by the district for the 2005 tax year]; 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.
         [(a-1)     Notwithstanding Subsection (a), for a school
  district that adopted a maintenance and operations tax rate for the
  2005 tax year below the maximum rate permitted by law for that year,
  the district's tax rate ("TR") includes the tax effort included in
  calculating the district's compressed tax rate under Section
  42.101(a-1).]
         (b)  The commissioner shall adjust the values reported by [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 fund assignment of any other school district.
         (c)  Appeals of district values shall be held pursuant to
  Section 403.303, Government Code.
         (d)  A school district must raise its total local share of
  the Foundation School Program to be eligible to receive foundation
  school fund payments.
         SECTION 1.029.  Subchapter F, Chapter 48, Education Code, as
  added by this Act, is amended by adding Section 48.257 to read as
  follows:
         Sec. 48.257.  LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT.
  (a) Subject to Subsection (b), if a school district's tier one
  revenue level, which is the sum of the district's tier one local
  share under Section 48.256 and distribution from the state
  available school fund, exceeds the district's entitlement under
  Section 48.266(a)(1), the district must reduce the district's tier
  one revenue level in accordance with Chapter 49 to a level not to
  exceed the district's entitlement under Section 48.266(a)(1).
         (b)  This subsection applies only to a school district to
  which Subsection (a) applies. If the sum of a district's
  maintenance and operations tax collections for the current tax year
  minus the district's tier one revenue level under Subsection (a) is
  less than the amount of the district's entitlement under Section
  48.266(a)(1), the agency shall adjust the amount of the district's
  tier one revenue level under Subsection (a) to ensure that the
  district retains the amount of local funds necessary for the
  district's entitlement under Section 48.266(a)(1).
         (c)  For purposes of Subsection (a), state aid to which a
  district is entitled under this chapter that is not described by
  Section 48.266(a)(1) or (2) may offset the amount by which a
  district must reduce the district's tier one revenue level under
  Subsection (a). Any amount of state aid used as an offset under this
  subsection shall reduce the amount of state aid to which the
  district is entitled.
         (d)  Except as provided by Subsection (e), a school district
  is entitled to retain the total amount of the district's tier two
  local share described by Section 48.266(a)(5)(A).
         (e)  In any school year for which the amount of state funds
  appropriated specifically excludes the amount necessary to provide
  the dollar amount guaranteed level of state and local funds per
  weighted student per cent of tax effort under Section
  48.202(a-1)(1), a district may only retain the amount of the
  district's tier two local share described by Section
  48.266(a)(5)(A) equal to the amount of revenue that would be
  generated based on the amount appropriated for the dollar amount
  guaranteed level of state and local funds.
         (f)  The amount of a school district's tier two local share
  described by Section 48.266(a)(5)(B) to which a district is
  entitled may not exceed the amount described by Section
  48.202(a-1)(2).
         SECTION 1.030.  Sections 41.002(e), (f), and (g), Education
  Code, are transferred to Section 48.257, Education Code, as added
  by this Act, redesignated as Sections 48.257(g), (h), and (i),
  Education Code, and amended to read as follows:
         (g) [(e)]  Notwithstanding Subsections [Subsection] (a),
  (d), and (f), and except as provided by Subsection (i) [(g)], in
  accordance with a determination of the commissioner, the local
  revenue level [wealth per student] that a school district may have
  after exercising an option under Section 49.002(2) [41.003(2)] or
  (3) may not be less than the amount needed to maintain state and
  local revenue in an amount equal to state and local revenue per
  weighted student for maintenance and operation of the district for
  the 1992-1993 school year less the district's current year
  distribution per weighted student from the available school fund,
  other than amounts distributed under Chapter 31, if the district
  imposes an effective tax rate for maintenance and operation of the
  district equal to the greater of the district's current tax rate or
  $1.50 on the $100 valuation of taxable property.
         (h) [(f)]  For purposes of Subsection (g) [(e)], a school
  district's effective tax rate is determined by dividing the total
  amount of taxes collected by the district for the applicable school
  year less any amounts paid into a tax increment fund under Chapter
  311, Tax Code, by the quotient of the district's taxable value of
  property, as determined under Subchapter M, Chapter 403, Government
  Code, divided by 100.
         (i) [(g)]  The local revenue level [wealth per student] that
  a district may have under Subsection (g) [(e)] is adjusted as
  follows:
  ALRL [AWPS] = LRL [WPS] X (((ERL [EWL]/280,000 - 1) X DTR/1.17) + 1)
  where:
               "ALRL" ["AWPS"] is the district's local revenue level
  [wealth per student];
               "LRL" ["WPS"] is the district's local revenue level
  [wealth per student] determined under Subsection (g) [(e)];
               "ERL" ["EWL"] is the local revenue level under this
  section to which a district is entitled [equalized wealth level];
  and
               "DTR" is the district's adopted maintenance and
  operations tax rate for the current school year.
         SECTION 1.031.  Section 48.257, Education Code, as added by
  this Act, is amended by adding Subsections (j) and (j-1) to read as
  follows:
         (j)  Notwithstanding any other provision of this section,
  the local revenue level that a school district may have under
  Subsections (g)-(i) is reduced by the following amounts:
               (1)  for the 2020-2021 school year, an amount equal to
  20 percent of the difference between the local revenue level for the
  district calculated under Subsections (g)-(i) and the local revenue
  level permitted under Subsections (a), (d), and (f);
               (2)  for the 2021-2022 school year, an amount equal to
  40 percent of the difference between the local revenue level for the
  district calculated under Subsections (g)-(i) and the local revenue
  level permitted under Subsections (a), (d), and (f);
               (3)  for the 2022-2023 school year, an amount equal to
  60 percent of the difference between the local revenue level for the
  district calculated under Subsections (g)-(i) and the local revenue
  level permitted under Subsections (a), (d), and (f); and
               (4)  for the 2023-2024 school year, an amount equal to
  80 percent of the difference between the local revenue level for the
  district calculated under Subsections (g)-(i) and the local revenue
  level permitted under Subsections (a), (d), and (f).
         (j-1)  Subsection (j) and this subsection expire September
  1, 2024.
         SECTION 1.032.  Sections 42.2521, 42.2522, 42.2523,
  42.2524, 42.2525, 42.2526, 42.2527, 42.2528, 42.253, 42.2531,
  42.2532, 42.254, 42.255, 42.257, 42.258, 42.259, 42.2591, 42.260,
  and 42.262, Education Code, are transferred to Subchapter F,
  Chapter 48, Education Code, as added by this Act, redesignated as
  Sections 48.258, 48.259, 48.260, 48.261, 48.262, 48.263, 48.264,
  48.265, 48.266, 48.267, 48.268, 48.269, 48.270, 48.271, 48.272,
  48.273, 48.274, 48.275, and 48.276, Education Code, and amended to
  read as follows:
         Sec. 48.258 [42.2521].  ADJUSTMENT FOR RAPID DECLINE IN
  TAXABLE VALUE OF PROPERTY. (a) For purposes of Chapters [41 and]
  46 and 49 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
  calculating 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 48.266(f) [42.253(h)] 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. 48.259 [42.2522].  ADJUSTMENT FOR OPTIONAL HOMESTEAD
  EXEMPTION. (a) In any school year, the commissioner may not
  provide funding under this chapter or Chapter 46 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 48.266
  [42.253] 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 48.266(b) [42.253(b)],
  reduce the entitlement under this chapter of a school district
  whose final taxable value of property is higher than the estimate
  under Section 48.269 [42.254] 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 48.258 [42.2521].
         (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.
  For purposes of computing a ratification [rollback] tax rate under
  Section 26.08, Tax Code, a district shall adjust the district's tax
  rate limit to reflect assistance received under this section.
         Sec. 48.260 [42.2523].  ADJUSTMENT FOR PROPERTY VALUE
  AFFECTED BY STATE OF DISASTER. (a) For purposes of Chapters [41
  and] 46 and 49 and this chapter, the commissioner shall adjust the
  taxable value of property of a school district all or part of which
  is located in an area declared a disaster area by the governor under
  Chapter 418, Government Code, as necessary to ensure that the
  district receives funding based as soon as possible on property
  values as affected by the disaster.
         (b)  The commissioner may fund adjustments under this
  section using funds specifically appropriated for the purpose or
  other funds available to the commissioner for that purpose.
         (c) [(d)]  A decision of the commissioner under this section
  is final and may not be appealed.
         Sec. 48.261 [42.2524].  REIMBURSEMENT FOR DISASTER
  REMEDIATION COSTS. (a) This section applies only to a school
  district all or part of which is located in an area declared a
  disaster area by the governor under Chapter 418, Government Code,
  and that incurs disaster remediation costs as a result of the
  disaster.
         (b)  During the two-year period following the date of the
  governor's initial proclamation or executive order declaring a
  state of disaster, a district may apply to the commissioner for
  reimbursement of disaster remediation costs that the district pays
  during that period and does not anticipate recovering through
  insurance proceeds, federal disaster relief payments, or another
  similar source of reimbursement.
         (c)  The commissioner may provide reimbursement under this
  section only if funds are available for that purpose from [as
  follows]:
               (1)  [reimbursement for a school district not required
  to take action under Chapter 41 may be provided from:
                     [(A)]  amounts appropriated for that purpose,
  including amounts appropriated for school [those] districts for
  that purpose to the disaster contingency fund established under
  Section 418.073, Government Code; or
               (2) [(B)]  Foundation School Program funds available
  for that purpose, based on a determination by the commissioner that
  the amount appropriated for the Foundation School Program,
  including the facilities component as provided by Chapter 46,
  exceeds the amount to which districts are entitled under this
  chapter and Chapter 46[; and
               [(2)     reimbursement for a school district required to
  take action under Chapter 41 may be provided from funds described by
  Subdivision (1)(B) if funds remain available after fully
  reimbursing each school district described by Subdivision (1) for
  its disaster remediation costs].
         (d)  [If the amount of money available for purposes of
  reimbursing school districts not required to take action under
  Chapter 41 is not sufficient to fully reimburse each district's
  disaster remediation costs, the commissioner shall reduce the
  amount of assistance provided to each of those districts
  proportionately. If the amount of money available for purposes of
  reimbursing school districts required to take action under Chapter
  41 is not sufficient to fully reimburse each district's disaster
  remediation costs, the commissioner shall reduce the amount of
  assistance provided to each of those districts proportionately.
         [(e)]  A district seeking reimbursement under this section
  must provide the commissioner with adequate documentation of the
  costs for which the district seeks reimbursement.
         (e)  [(f)     A district required to take action under Chapter
  41:
               [(1)     may, at its discretion, receive assistance
  provided under this section either as a payment of state aid under
  this chapter or as a reduction in the total amount required to be
  paid by the district for attendance credits under Section 41.093;
  and
               [(2)     may not obtain reimbursement under this section
  for the payment of any disaster remediation costs that resulted in a
  reduction under Section 41.0931 of the district's cost of
  attendance credits.
         [(h)]  The commissioner shall adopt rules necessary to
  implement this section, including rules defining "disaster
  remediation costs" for purposes of this section and specifying the
  type of documentation required under Subsection (d) [(e)].
         (f) [(i)]  Notwithstanding any other provision of this
  section, the commissioner may permit a district to use amounts
  provided to a district under this section to pay the costs of
  replacing a facility instead of repairing the facility. The
  commissioner shall ensure that a district that elects to replace a
  facility does not receive an amount under this section that exceeds
  the lesser of:
               (1)  the amount that would be provided to the district
  if the facility were repaired; or
               (2)  the amount necessary to replace the facility.
         (g) [(j)]  This section does not require the commissioner to
  provide any requested reimbursement. A decision of the
  commissioner regarding reimbursement is final and may not be
  appealed.
         Sec. 48.262 [42.2525].  ADJUSTMENTS FOR CERTAIN DISTRICTS
  RECEIVING FEDERAL IMPACT AID. The commissioner is granted the
  authority to ensure that school districts receiving federal impact
  aid due to the presence of a military installation or significant
  concentrations of military students do not receive more than an
  eight percent reduction should the federal government reduce
  appropriations to those schools.
         Sec. 48.263 [42.2526].  ADJUSTMENT FOR DISTRICT OPERATING
  PILOT PROGRAM. (a) This section applies only to a school district
  operating a pilot program authorized by Section 28.0255.
         (b)  Beginning with the first school year that follows the
  first school year in which students receive high school diplomas
  under the pilot program authorized by Section 28.0255 and
  continuing for every subsequent school year that the district
  operates the pilot program, the commissioner shall provide funding
  for the district's prekindergarten program under Section 29.153 on
  a full-day basis for a number of prekindergarten students equal to
  twice the number of students who received a high school diploma
  under the pilot program authorized by Section 28.0255 during the
  preceding school year.
         (c)  This section expires September 1, 2023.
         Sec. 48.264 [42.2527].  ADJUSTMENT FOR CERTAIN DISTRICTS
  WITH EARLY HIGH SCHOOL GRADUATION PROGRAMS. (a) As a pilot program
  to enable the state to evaluate the benefit of providing additional
  funding at the prekindergarten level for low-income students, the
  commissioner shall provide prekindergarten funding in accordance
  with this section to a school district located in a county that
  borders the United Mexican States and the Gulf of Mexico.
         (b)  The commissioner shall provide funding for a school
  district's prekindergarten program on a half-day basis for a number
  of low-income prekindergarten students equal to twice the number of
  students who received, as a result of participation in an early high
  school graduation program operated by the district, a high school
  diploma from the district during the preceding school year after
  three years of secondary school attendance.
         (c)  The commissioner may adopt rules necessary to implement
  this section.
         (d)  This section expires September 1, 2023.
         Sec. 48.265 [42.2528].  EXCESS FUNDS FOR VIDEO SURVEILLANCE
  OF SPECIAL EDUCATION SETTINGS. (a) Notwithstanding any other
  provision of law, if the commissioner determines that the amount
  appropriated for the purposes of the Foundation School Program
  exceeds the amount to which school districts are entitled under
  this chapter, the commissioner by rule shall establish a grant
  program through which excess funds are awarded as grants for the
  purchase of video equipment, or for the reimbursement of costs for
  previously purchased video equipment, used for monitoring special
  education classrooms or other special education settings required
  under Section 29.022.
         (b)  In awarding grants under this section, the commissioner
  shall give highest priority to districts with maintenance and
  operations tax rates at the greatest rates permitted by law. The
  commissioner shall also give priority to:
               (1)  districts with maintenance and operations tax
  rates at least equal to the state maximum compressed tax rate, as
  defined by Section 48.051(a) [42.101(a)], and lowest amounts of
  maintenance and operations tax revenue per weighted student; and
               (2)  districts with debt service tax rates near or
  equal to the greatest rates permitted by law.
         (c)  The commissioner may adopt rules to implement and
  administer this section.
         Sec. 48.266 [42.253].  DISTRIBUTION OF FOUNDATION SCHOOL
  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, [and] C, and D;
               (2)  the amount of money to which a school district is
  entitled under Subchapter E [F];
               (3)  the amount of money allocated to the district from
  the available school fund;
               (4)  the amount of each district's tier one local share
  under Section 48.256 [42.252]; and
               (5)  the amount of each district's tier two local share
  under Section 48.202 for:
                     (A)  the district's maintenance and operations
  tax effort described by Section 48.202(a-1)(1); and
                     (B)  the district's maintenance and operations
  tax effort described by Section 48.202(a-1)(2) [42.302].
         (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 48.269 [42.254], or, if
  the General Appropriations Act provides estimates for that purpose,
  on the estimates provided under that Act, for each school district
  for each school year. The commissioner shall reduce the
  entitlement of each district that has a final taxable value of
  property for the second year of a state fiscal biennium that is
  higher than the estimate under Section 48.269 [42.254] or the
  General Appropriations Act, as applicable. A reduction under this
  subsection may not reduce the district's entitlement below the
  amount to which it is entitled at its actual taxable value of
  property.
         (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 that warrants
  for state 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) [(g)]  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) [(h)]  If the amount appropriated for the Foundation
  School Program for the second year of a state fiscal biennium is
  less than the amount to which school districts and open-enrollment
  charter schools are entitled for that year, the commissioner shall
  certify the amount of the difference to the Legislative Budget
  Board not later than January 1 of the second year of the state
  fiscal biennium.  The Legislative Budget Board shall propose to the
  legislature that the certified amount be transferred to the
  foundation school fund from the economic stabilization fund and
  appropriated for the purpose of increases in allocations under this
  subsection.  If the legislature fails during the regular session to
  enact the proposed transfer and appropriation and there are not
  funds available under Subsection (h) [(j)], the commissioner shall
  adjust the total amounts due to each school district and
  open-enrollment charter school under this chapter and the total
  amounts necessary for each school district to comply with the
  requirements of Chapter 49 [41] by an amount determined by applying
  to each district and school the same percentage adjustment to the
  total amount of state and local revenue due to the district or
  school under this chapter and Chapter 49 [41] so that the total
  amount of the adjustment to all districts and schools results in an
  amount equal to the total adjustment necessary.  The following
  fiscal year:
               (1)  a district's or school's entitlement under this
  section is increased by an amount equal to the adjustment  made
  under this subsection; and
               (2)  the amount necessary for a district to comply with
  the requirements of Chapter 49 [41] is reduced by an amount
  necessary to ensure a district's full recovery of the adjustment
  made under this subsection.
         (g) [(i)]  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 the allocation formulas in 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) [(j)]  The legislature may appropriate funds necessary
  for increases under Subsection (g) [(i)] from funds that the
  comptroller, at any time during the fiscal year, finds are
  available.
         (i) [(k)]  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) [(i)] and
  shall certify that amount to the district.
         Sec. 48.267  [42.2531].  ADJUSTMENT BY COMMISSIONER. (a)
  The commissioner may make adjustments to amounts due to a school
  district under this chapter or Chapter 46, or to amounts necessary
  for a district to comply with the requirements of Chapter 49 [41],
  as provided by this section.
         (b)  A school district that has a major taxpayer, as
  determined by the commissioner, that because of a protest of the
  valuation of the taxpayer's property fails to pay all or a portion
  of the ad valorem taxes due to the district may apply to the
  commissioner to have the district's taxable value of property or ad
  valorem tax collections adjusted for purposes of this chapter or
  Chapter [41 or] 46 or 49. The commissioner may make the adjustment
  only to the extent the commissioner determines that making the
  adjustment will not:
               (1)  in the fiscal year in which the adjustment is made,
  cause the amount to which school districts are entitled under this
  chapter to exceed the amount appropriated for purposes of the
  Foundation School Program for that year; and
               (2)  if the adjustment is made in the first year of a
  state fiscal biennium, cause the amount to which school districts
  are entitled under this chapter for the second year of the biennium
  to exceed the amount appropriated for purposes of the Foundation
  School Program for that year.
         (c)  The commissioner shall recover the benefit of any
  adjustment made under this section by making offsetting adjustments
  in the school district's taxable value of property or ad valorem tax
  collections for purposes of this chapter or Chapter [41 or] 46 or 49
  on a final determination of the taxable value of property that was
  the basis of the original adjustment, or in the second school year
  following the year in which the adjustment is made, whichever is
  earlier.
         (d)  This section does not require the commissioner to make
  any requested adjustment. A determination by the commissioner
  under this section is final and may not be appealed.
         Sec. 48.268  [42.2532].  ADJUSTMENT FOR RESOLUTION OF
  DISPUTE OR ERROR RESULTING IN TAXATION OF SAME PROPERTY BY MULTIPLE
  SCHOOL DISTRICTS.  The commissioner shall adjust the amounts due to
  a school district under this chapter and Chapter 46 as necessary to
  account for the resolution of a dispute or error involving the
  district and another district by an agreement between the districts
  entered into under Section 31.112(c), Tax Code, or by a final order
  of the supreme court entered under Section 72.010, Local Government
  Code.
         Sec. 48.269  [42.254].  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. 48.270  [42.255].  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. 48.271  [42.257].  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 foundation school fund for the applicable school year
  using the adjusted value, the commissioner shall add the difference
  to subsequent distributions to the district from the foundation
  school fund. An adjustment does not affect the local fund
  assignment of any other district.
         Sec. 48.272  [42.258].  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 for the current or subsequent school year or by
  requesting and obtaining a refund, recover from the district an
  amount equal to the overallocation.
         (b) [(a-1)]  Notwithstanding Subsection (a), the agency may
  recover an overallocation of state funds over a period not to exceed
  the subsequent five school years if the commissioner determines
  that the overallocation was the result of exceptional circumstances
  reasonably caused by statutory changes to Chapter [41 or] 46 or 49
  or this chapter and related reporting requirements.
         (c) [(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.
         (d) [(c)]  Any amounts recovered under this section shall be
  deposited in the foundation school fund.
         Sec. 48.273  [42.259].  FOUNDATION SCHOOL FUND TRANSFERS.
  (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 48.256 [42.252] divided by the number of students in
  average daily attendance.
         (b)  Payments from the foundation school 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 foundation school 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 on or before the
  25th day of August.
         (d)  Payments from the foundation school 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 on or before the
  25th day of August.
         (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. A payment under this section is not invalid because it is
  not equal to other installments.
         (f)  Previously unpaid additional funds from prior fiscal
  years owed to a district shall be paid to the district together with
  the September payment of the current fiscal year entitlement.
         (g)  The commissioner shall make all annual Foundation
  School Program payments under this section for purposes described
  by Sections 45.252(a)(1) and (2) before the deadline established
  under Section 45.263(b) for payment of debt service on
  bonds.  Notwithstanding any other provision of this section, the
  commissioner may make Foundation School Program payments under this
  section after the deadline established under Section 45.263(b) only
  if the commissioner has not received notice under Section 45.258
  concerning a district's failure or inability to pay matured
  principal or interest on bonds.
         Sec. 48.274  [42.2591].  FOUNDATION SCHOOL FUND TRANSFERS
  TO CERTAIN CHARTER SCHOOLS. (a)  On the request of an
  open-enrollment charter school, the commissioner shall compare the
  student enrollment of the open-enrollment charter school for the
  current school year to the student enrollment of the school during
  the preceding school year.  If the number of students enrolled at
  the open-enrollment charter school for the current school year has
  increased by 10 percent or more from the number of students enrolled
  during the preceding school year, the open-enrollment charter
  school may request that payments from the foundation school fund to
  the school for the following school year and each subsequent school
  year, subject to Subsection (b), be made according to the schedule
  provided under Subsection (c).
         (b)  An open-enrollment charter school that qualifies to
  receive funding as provided by this section is entitled to receive
  funding in that manner for three school years.  On the expiration
  of that period, the commissioner shall determine the eligibility of
  the open-enrollment charter school to continue receiving payments
  from the foundation school fund under this section for an
  additional three school years.  Subsequently, the open-enrollment
  charter school must reestablish eligibility in the manner provided
  by this subsection every three school years.
         (c)  Payments from the foundation school fund to an
  open-enrollment charter school under this section shall be made as
  follows:
               (1)  22 percent of the yearly entitlement of the school
  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 school
  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
  school shall be paid in an installment to be made on or before the
  25th day of November;
               (4)  four percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of December;
               (5)  four percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of January;
               (6)  four percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of February;
               (7)  four percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of March;
               (8)  7.5 percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of April;
               (9)  five percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of May;
               (10)  seven percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of June;
               (11)  seven percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of July; and
               (12)  eight percent of the yearly entitlement of the
  school shall be paid in an installment to be made on or before the
  25th day of August.
         (d)  The amount of any installment required by this section
  may be modified to provide an open-enrollment charter school with
  the proper amount to which the school may be entitled by law and to
  correct errors in the allocation or distribution of funds.
         (e)  Previously unpaid additional funds from prior fiscal
  years owed to an open-enrollment charter school shall be paid to the
  school together with the September payment of the current fiscal
  year entitlement.
         Sec. 48.275  [42.260].  USE OF CERTAIN FUNDS. (a) In this
  section, "participating charter school" means an open-enrollment
  charter school that participates in the uniform group coverage
  program established under Chapter 1579, Insurance Code.
         (b)  The amount of additional funds to which each school
  district or participating charter school is entitled due to the
  increases in formula funding made by H.B. No. 3343, Acts of the 77th
  Legislature, Regular Session, 2001, and any subsequent legislation
  amending the provisions amended by that Act that increase formula
  funding under Chapter 49 [41] and this chapter to school districts
  and charter schools is available for purposes of Subsection (c).
         (c)  Notwithstanding any other provision of this code, a
  school district or participating charter school may use the sum of
  the following amounts of funds only to pay contributions under a
  group health coverage plan for district or school employees:
               (1)  the amount determined by multiplying the amount of
  $900 or the amount specified in the General Appropriations Act for
  that year for purposes of the state contribution under Section
  1579.251, Insurance Code, by the number of district or school
  employees who participate in a group health coverage plan provided
  by or through the district or school; and
               (2)  the difference between the amount necessary for
  the district or school to comply with Section 1581.052, Insurance
  Code, for the school year and the amount the district or school is
  required to use to provide health coverage under Section 1581.051,
  Insurance Code, for that year.
         (d)  A determination by the commissioner under this section
  is final and may not be appealed.
         [(e)     The commissioner may adopt rules to implement this
  section.]
         Sec. 48.276  [42.262].  TAX RATE CONVERSION FUND. (a) Each
  fiscal year, the commissioner shall identify amounts appropriated
  in the General Appropriations Act from the Foundation School
  Fund[,] to be deposited in the tax rate conversion fund in the
  general revenue fund. [The amount identified by the commissioner
  shall be sufficient to provide additional state aid to school
  districts to which the compressed tax rate modified under Section
  42.101(a-1) applies, in excess of the level of state aid to which
  the district would have been entitled had Section 42.101(a-1) not
  taken effect.]
         (b)  For the purposes of state aid payments to school
  districts under this chapter, the tax rate conversion fund shall be
  considered to be used in the same manner as the foundation school
  fund.
         SECTION 1.033.  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) Subject to
  Subsection (b), a school district is entitled to receive an annual
  allotment in the amount equal to the difference, if the difference
  is greater than zero, that results from subtracting the total
  maintenance and operations tax revenue per student in weighted
  average daily attendance for the school year for the current school
  year from the lesser of:
               (1)  the district's total maintenance and operations
  tax revenue per student in weighted average daily attendance for
  the 2018-2019 school year; or
               (2)  125 percent of the statewide average amount of
  maintenance and operations funding per student in weighted average
  daily attendance for the 2018-2019 school year.
         (b)  For purposes of calculating maintenance and operations
  funding under Subsection (a), the commissioner shall:
               (1)  include all state and federal funding, except for
  any funding provided under this section or former Subchapter H,
  Chapter 42;
               (2)  reduce the amounts calculated under Subsections
  (a)(1) and (2) by:
                     (A)  for the 2020-2021 school year, 10 percent;
  and
                     (B)  for the 2021-2022 school year, 20 percent;
               (3)  adjust the calculation to reflect a reduction in
  tax effort by a school district; and
               (4)  if a school district 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
  entitlement to compensatory education funds was based for the
  school year before the school year in which the district received
  the waiver, adjusted for estimated enrollment growth.
         (c)  A decision by the commissioner under this section is
  final and may not be appealed.
         (d)  A school district is not entitled to an allotment under
  this section beginning with the 2022-2023 school year.
         (e)  This section expires September 1, 2024.
         SECTION 1.034.  Chapter 48, Education Code, as added by this
  Act, is amended by adding Subchapter G, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER G. SCHOOL FACILITIES INVENTORY AND STANDARDS
         SECTION 1.035.  Sections 42.352 and 42.4101, Education Code,
  are transferred to Subchapter G, Chapter 48, Education Code, as
  added by this Act, redesignated as Sections 48.301 and 48.302,
  Education Code, and amended to read as follows:
         Sec. 48.301  [42.352]. FACILITIES STANDARDS. The State
  Board of Education shall establish standards for adequacy of school
  facilities. The standards shall include requirements related to
  space, educational adequacy, and construction quality. All
  facilities constructed after September 1, 1992, must meet the
  standards in order to be financed with state or local tax funds.
         Sec. 48.302  [42.4101].  ADDITIONAL ASSISTANCE FOR
  DISTRICTS WITH STUDENTS USING PUBLIC EDUCATION GRANTS. (a) A
  district is entitled to additional assistance under this section as
  provided by Section 29.203(c).
         (b)  The amount of additional assistance under this section
  is computed by subtracting the number of students residing in the
  district and using public education grants to attend school in
  another district for the year in which the assistance is granted
  from the number of students using public education grants to attend
  school in the district for that year and multiplying the difference
  by $266.
         [(c)     If a district to which this section applies is entitled
  to the maximum amount of assistance under Section 42.406, the
  maximum is increased by the amount of additional assistance to
  which the district is entitled under this section.]
         SECTION 1.036.  Subtitle I, Title 2, Education Code, is
  amended by adding Chapter 49, and a heading is added to that chapter
  to read as follows:
  CHAPTER 49. OPTIONS FOR LOCAL REVENUE LEVELS IN EXCESS OF
  ENTITLEMENT
         SECTION 1.037.  Chapter 49, Education Code, as added by this
  Act, is amended by adding Subchapter A, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER A. GENERAL PROVISIONS
         SECTION 1.038.  Sections 41.001, 41.003, 41.0031, 41.004,
  41.005, 41.006, 41.007, 41.008, 41.009, 41.010, 41.011, 41.012, and
  41.013, Education Code, are transferred to Subchapter A, Chapter
  49, Education Code, as added by this Act, redesignated as Sections
  49.001, 49.002, 49.003, 49.004, 49.005, 49.006, 49.007, 49.008,
  49.009, 49.010, 49.011, 49.012, and 49.013, Education Code, and
  amended to read as follows:
         Sec. 49.001  [41.001].  DEFINITIONS. In this chapter:
               (1)  "Local revenue [Equalized wealth] level in excess
  of entitlement" means local revenue levels that exceed the levels
  [the wealth per student] provided by Section 48.257 [41.002].
               (2)  ["Wealth per student" means the taxable value of
  property, as determined under Subchapter M, Chapter 403, Government
  Code, divided by the number of students in weighted average daily
  attendance.
               [(3)]  "Weighted average daily attendance" has the
  meaning assigned by Section 48.202 [42.302].
         Sec. 49.002  [41.003].  OPTIONS TO REDUCE LOCAL REVENUE
  [ACHIEVE EQUALIZED WEALTH] LEVEL. A district with a local revenue
  level in excess of entitlement [wealth per student that exceeds the
  equalized wealth level] may take any combination of the following
  actions to reduce the district's revenue level [achieve the
  equalized wealth level]:
               (1)  consolidation with another district as provided by
  Subchapter B;
               (2)  detachment of territory as provided by Subchapter
  C;
               (3)  purchase of average daily attendance credit as
  provided by Subchapter D;
               (4)  education of nonresident students as provided by
  Subchapter E; or
               (5)  tax base consolidation with another district as
  provided by Subchapter F.
         Sec. 49.003  [41.0031].  INCLUSION OF ATTENDANCE CREDIT
  [CREDITS] AND NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.
  In determining whether a school district has a local revenue
  [wealth per student less than or equal to the equalized wealth]
  level in excess of entitlement, the commissioner shall use:
               (1)  the district's final weighted average daily
  attendance; and
               (2)  the amount [number] of attendance credit [credits]
  a district purchases under Subchapter D or the number of
  nonresident students a district educates under Subchapter E for a
  school year.
         Sec. 49.004  [41.004].  ANNUAL REVIEW OF LOCAL REVENUES
  [PROPERTY WEALTH]. (a) Not later than July 15 of each year, using
  the estimate of enrollment under Section 48.269 [42.254], the
  commissioner shall review the local revenue level [wealth per
  student] of school districts in the state and shall notify:
               (1)  each district with a local revenue level in excess
  of entitlement [wealth per student exceeding the equalized wealth
  level];
               (2)  each district to which the commissioner proposes
  to annex property detached from a district notified under
  Subdivision (1), if necessary, under Subchapter G; and
               (3)  each district to which the commissioner proposes
  to consolidate a district notified under Subdivision (1), if
  necessary, under Subchapter H.
         (b)  If, before the dates provided by this subsection, a
  district notified under Subsection (a)(1) has not successfully
  exercised one or more options under Section 49.002 [41.003] that
  reduce the district's local revenue level [wealth per student] to a
  level equal to or less than the [equalized wealth] level
  established under Section 48.257, the commissioner shall order the
  detachment of property from that district as provided by Subchapter
  G. If that detachment will not reduce the district's local revenue
  level [wealth per student] to a level equal to or less than the
  [equalized wealth] level established under Section 48.257, the
  commissioner may not detach property under Subchapter G but shall
  order the consolidation of the district with one or more other
  districts as provided by Subchapter H. An agreement under Section
  49.002(1) [41.003(1)] or (2) must be executed not later than
  September 1 immediately following the notice under Subsection (a).
  An election for an option under Section 49.002(3) [41.003(3)], (4),
  or (5) must be ordered before September 1 immediately following the
  notice under Subsection (a).
         (c)  A district notified under Subsection (a) may not adopt a
  tax rate for the tax year in which the district receives the notice
  until the commissioner certifies that the district has reduced the
  district's local revenue level in excess of entitlement to the
  [achieved the equalized wealth] level established under Section
  48.257.
         (d)  A detachment and annexation or consolidation under this
  chapter:
               (1)  is effective for Foundation School Program funding
  purposes for the school year that begins in the calendar year in
  which the detachment and annexation or consolidation is agreed to
  or ordered; and
               (2)  applies to the ad valorem taxation of property
  beginning with the tax year in which the agreement or order is
  effective.
         Sec. 49.005  [41.005].  COMPTROLLER AND APPRAISAL DISTRICT
  COOPERATION. The chief appraiser of each appraisal district and
  the comptroller shall cooperate with the commissioner and school
  districts in implementing this chapter.
         Sec. 49.006  [41.006].  RULES. (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 48 [42], including
  providing for the commissioner to make an adjustment in the funding
  element established by Section 48.202 [42.302], at the earliest
  date practicable, to the amount the commissioner believes, taking
  into consideration options exercised by school districts under this
  chapter and estimates of student enrollments, will match
  appropriation levels.
         (b)  As necessary for the effective and efficient
  administration of this chapter, the commissioner may modify
  effective dates and time periods for actions described by this
  chapter.
         Sec. 49.007  [41.007].  COMMISSIONER TO APPROVE SUBSEQUENT
  BOUNDARY CHANGES. A school district that is involved in an action
  under this chapter that results in boundary changes to the district
  or in the consolidation of tax bases is subject to consolidation,
  detachment, or annexation under Chapter 13 only if the commissioner
  certifies that the change under Chapter 13 will not result in a
  district with a local revenue [wealth per student that exceeds the
  equalized wealth] level in excess of entitlement.
         Sec. 49.008  [41.008].  HOMESTEAD EXEMPTIONS. (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.
         (b)  This section prevails over any inconsistent provision
  of Section 11.13, Tax Code, or other law.
         Sec. 49.009 [41.009].  TAX ABATEMENTS. (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.
         (b)  The commissioner shall determine the local revenue
  [wealth per student] of a school district under this chapter as if
  any tax abatement agreement executed by a school district on or
  after May 31, 1993, had not been executed.
         Sec. 49.010 [41.010].  TAX INCREMENT OBLIGATIONS. (a) 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.
         (b)  This section does not apply to the payment of tax
  increments for an obligation refinanced or renewed after September
  1, 2019.
         Sec. 49.011 [41.011].  CONTINGENCY. (a) If any of the
  options described by Section 49.002 [41.003] as applied to a school
  district are held invalid by a final decision of a court of
  competent jurisdiction, a school district is entitled to exercise
  any of the remaining valid options in accordance with a schedule
  approved by the commissioner.
         (b)  If a final order of a court of competent jurisdiction
  should hold each of the options provided by Section 49.002 [41.003]
  invalid, the commissioner shall act under Subchapter G or H to
  reduce the local revenue [achieve the equalized wealth] level in
  excess of entitlement only after notice and hearing is afforded to
  each school district affected by the order. The commissioner shall
  adopt a plan that least disrupts the affected school districts. If
  because the exigency to adopt a plan prevents the commissioner from
  giving a reasonable time for notice and hearing, the commissioner
  shall timely give notice to and hold a hearing for the affected
  school districts, but in no event less than 30 days from time of
  notice to the date of hearing.
         (c)  If a final order of a court of competent jurisdiction
  should hold an option provided by Section 49.002 [41.003] invalid
  and order a refund to a district of any amounts paid by a district
  choosing that option, the amount shall be refunded but held in
  reserve and not expended by the district until released by order of
  the commissioner. The commissioner shall order the release
  immediately on the commissioner's determination that, through one
  of the means provided by law, the district has reduced the
  district's local revenue level in excess of entitlement to the 
  [achieved the equalized wealth] level established under Section
  48.257. The amount released shall be deducted from any state aid
  payable to the district according to a schedule adopted by the
  commissioner.
         Sec. 49.012 [41.012].  DATE OF ELECTIONS. An election under
  this chapter for voter approval of an agreement entered by the board
  of trustees shall be held on a Tuesday or Saturday not more than 45
  days after the date of the agreement. Section 41.001, Election
  Code, does not apply to the election.
         Sec. 49.013 [41.013].  PROCEDURE. (a) Except as provided
  by Subchapter G, a decision of the commissioner under this chapter
  is appealable under Section 7.057.
         (b)  Any order of the commissioner issued under this chapter
  shall be given immediate effect and may not be stayed or enjoined
  pending any appeal.
         (c)  Chapter 2001, Government Code, does not apply to a
  decision of the commissioner under this chapter.
         (d)  On the request of the commissioner, the secretary of
  state shall publish any rules adopted under this chapter in the
  Texas Register and the Texas Administrative Code.
         SECTION 1.039.  Subchapter B, Chapter 41, Education Code, is
  transferred to Chapter 49, Education Code, as added by this Act,
  redesignated as Subchapter B, Chapter 49, Education Code, and
  amended to read as follows:
  SUBCHAPTER B. CONSOLIDATION BY AGREEMENT
         Sec. 49.051 [41.031].  AGREEMENT. The governing boards of
  any two or more school districts may consolidate the districts by
  agreement in accordance with this subchapter to establish a
  consolidated district with a local revenue level [wealth per
  student] equal to or less than the [equalized wealth] level
  established under Section 48.257. The agreement is not effective
  unless the commissioner certifies that the consolidated district,
  as a result of actions taken under this chapter, will have a local
  revenue level [wealth per student] equal to or less than the
  [equalized wealth] level established under Section 48.257.
         Sec. 49.052 [41.032].  GOVERNING LAW. Except to the extent
  modified by the terms of the agreement, the consolidated district
  is governed by the applicable provisions of Subchapter D, Chapter
  13, other than a provision requiring consolidating districts to be
  contiguous. The agreement may not be inconsistent with the
  requirements of this subchapter.
         Sec. 49.053 [41.033].  GOVERNANCE PLAN. (a) The agreement
  among the consolidating districts may include a governance plan
  designed to preserve community-based and site-based decision
  making within the consolidated district, including the delegation
  of specific powers of the governing board of the district other than
  the power to levy taxes, including a provision authorized by
  Section 13.158(b).
         (b)  The governance plan may provide for a transitional board
  of trustees during the first year after consolidation, but
  beginning with the next year the board of trustees must be elected
  from within the boundaries of the consolidated district. If the
  consolidating districts elect trustees from single-member
  districts, the consolidated district must adopt a plan to elect its
  board of trustees from single-member districts.
         Sec. 49.054 [41.034].  INCENTIVE AID. (a) For the first and
  second school years after creation of a consolidated district under
  this subchapter, the commissioner shall adjust allotments to the
  consolidated district to the extent necessary to preserve the
  effects of an adjustment under Section 48.052 [42.102, 42.103, or
  42.105] to which either of the consolidating districts would have
  been entitled but for the consolidation.
         (b)  Except as provided by Subsection (c), a district
  receiving incentive aid payments under this section is not entitled
  to incentive aid under Subchapter G, Chapter 13.
         (c)  Four or more districts that consolidate into one
  district under this subchapter within a period of one year may elect
  to receive incentive aid under this section or to receive incentive
  aid for not more than five years under Subchapter G, Chapter 13.
  Incentive aid under this subsection may not provide the
  consolidated district with more revenue in state and local funds
  than the district would receive at the [equalized wealth] level
  established under Section 48.257.
         SECTION 1.040.  Subchapter C, Chapter 41, Education Code, is
  transferred to Chapter 49, Education Code, redesignated as
  Subchapter C, Chapter 49, Education Code, and amended to read as
  follows:
  SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT
         Sec. 49.101 [41.061].  AGREEMENT. (a) By agreement of the
  governing boards of two school districts, territory may be detached
  from one of the districts and annexed to the other district if,
  after the action:
               (1)  the local revenue level [wealth per student] of
  the district from which territory is detached is equal to or less
  than the [equalized wealth] level established under Section 48.257;
  and
               (2)  the local revenue level [wealth per student] of
  the district to which territory is annexed is not greater than the
  greatest level for which funds are provided under Subchapter E [F],
  Chapter 48 [42].
         (b)  The agreement is not effective unless the commissioner
  certifies that, after all actions taken under this chapter, the
  local revenue level [wealth per student] of each district involved
  will be equal to or less than the applicable level permitted by
  Subsection (a).
         Sec. 49.102 [41.062].  GOVERNING LAW. Except to the extent
  of any conflict with this chapter and except for any requirement
  that detached property must be annexed to a school district that is
  contiguous to the detached territory, the annexation and detachment
  is governed by Chapter 13.
         Sec. 49.103 [41.063].  ALLOCATION OF APPRAISED VALUE OF
  DIVIDED UNIT. If portions of a parcel or other item of property are
  located in different school districts as a result of a detachment
  and annexation under this subchapter, the parcel or other item of
  property shall be appraised for taxation as a unit, and the
  agreement shall allocate the taxable value of the property between
  the districts.
         Sec. 49.104 [41.064].  ALLOCATION OF INDEBTEDNESS. The
  annexation agreement may allocate to the receiving district any
  portion of the indebtedness of the district from which the
  territory is detached, and the receiving district assumes and is
  liable for the allocated indebtedness.
         Sec. 49.105 [41.065].  NOTICE. As soon as practicable after
  the agreement is executed, the districts involved shall notify each
  affected property owner and the appraisal district in which the
  affected property is located.
         SECTION 1.041.  Chapter 49, Education Code, as added by this
  Act, is amended by adding Subchapter D, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT
         SECTION 1.042.  Sections 41.091, 41.092, 41.093, 41.094,
  41.095, 41.096, 41.097, and 41.099, Education Code, are transferred
  to Subchapter D, Chapter 49, Education Code, as added by this Act,
  redesignated as Sections 49.151, 49.152, 49.153, 49.154, 49.155,
  49.156, 49.157, and 49.158, Education Code, and amended to read as
  follows:
         Sec. 49.151 [41.091].  AGREEMENT. A school district with a
  local revenue [wealth per student that exceeds the equalized
  wealth] level in excess of entitlement may execute an agreement
  with the commissioner to purchase attendance credit [credits] in an
  amount sufficient, in combination with any other actions taken
  under this chapter, to reduce the district's local revenue level
  [wealth per student] to a level that is equal to or less than the
  [equalized wealth] level established under Section 48.257.
         Sec. 49.152 [41.092].  CREDIT. The amount of [(a) For each]
  credit purchased decreases the dollar amount of a district's local
  revenue level[, the weighted average daily attendance of the
  purchasing school district is increased by one student in weighted
  average daily attendance] for purposes of determining whether the
  district exceeds the [equalized wealth] level established under
  Section 48.257.
         [(b)     A credit is not used in determining a school district's
  scholastic population, average daily attendance, or weighted
  average daily attendance for purposes of Chapter 42 or 43.]
         Sec. 49.153 [41.093].  COST. (a) The total [Subject to
  Subsection (b-1), the] cost of [each] credit is the [an] amount
  [equal to the greater of:
               [(1)  the amount] of the district's maintenance and
  operations tax revenue that exceeds the level established under
  Section 48.257 [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].
         (b)  For purposes of this section, a school district's
  maintenance and operations tax revenue does not include any amounts
  paid into a tax increment fund under Chapter 311, Tax Code. This
  subsection does not apply to any amounts paid into a tax increment
  fund for an obligation refinanced or renewed after September 1,
  2019.
         [(b-1)     If the guaranteed level of state and local funds per
  weighted student per cent of tax effort under Section
  42.302(a-1)(1) for which state funds are appropriated for a school
  year is an amount at least equal to the amount of revenue per
  weighted student per cent of tax effort available to the Austin
  Independent School District, as determined by the commissioner in
  cooperation with the Legislative Budget Board, the commissioner, in
  computing the amounts described by Subsections (a)(1) and (2) and
  determining the cost of an attendance credit, shall exclude
  maintenance and operations tax revenue resulting from the tax rate
  described by Section 41.002(a)(2).]
         (c)  The cost of [an] attendance credit for a school district
  is computed using the final tax collections of the district.
         Sec. 49.154 [41.094].  PAYMENT. (a) A school district
  shall pay for credit [credits] purchased in equal monthly payments
  as determined by the commissioner beginning February 15 and ending
  August 15 of the school year for which the agreement is in effect.
         (b)  Receipts shall be deposited in the state treasury and
  may be used only for foundation school program purposes.
         Sec. 49.155 [41.095].  DURATION. An agreement under this
  section is valid for one school year and, subject to Section 49.156
  [41.096], may be renewed annually.
         Sec. 49.156 [41.096].  VOTER APPROVAL. (a) After first
  executing an agreement under this section, the board of trustees
  shall order and conduct an election, in the manner provided by
  Sections 13.003(d)-(g), to obtain voter approval of the agreement.
         (b)  The ballot shall be printed to permit voting for or
  against the proposition: "Authorizing the board of trustees of
  ________ School District to purchase attendance credit [credits]
  from the state with local tax revenues."
         (c)  The proposition is approved if the proposition receives
  a favorable vote of a majority of the votes cast. If the
  proposition is approved, the agreement executed by the board is
  ratified, and the board has continuing authority to execute
  agreements under this subchapter on behalf of the district without
  further voter approval.
         Sec. 49.157 [41.097].  CREDIT FOR APPRAISAL COSTS. (a) The
  total amount required under Section 49.153 [41.093] for a district
  to purchase attendance credit [credits] under this subchapter for
  any school year is reduced by an amount equal to the product of the
  district's total costs under Section 6.06, Tax Code, for the
  appraisal district or districts in which it participates multiplied
  by a percentage that is computed by dividing the total amount
  required under Section 49.153 [41.093] by the total amount of taxes
  imposed in the district for that year less any amounts paid into a
  tax increment fund under Chapter 311, Tax Code, subject to
  Subsection (b).
         (b)  Amounts paid for an obligation refinanced or renewed
  after September 1, 2019, are not included for purposes of
  calculating amounts paid into a tax increment fund under Chapter
  311, Tax Code, under Subsection (a) [A school district is entitled
  to a reduction under Subsection (a) beginning with the 1996-1997
  school year. For that school year, the reduction to which a
  district is entitled is the sum of the amounts computed under
  Subsection (a) for the 1993-1994, 1994-1995, 1995-1996, and
  1996-1997 school years. If that amount exceeds the total amount
  required under Section 41.093 for the 1996-1997 school year, the
  difference is carried forward and the total amount required under
  Section 41.093 is reduced each subsequent school year until the
  total amount of the credit has been applied to such reductions].
         Sec. 49.158 [41.099].  LIMITATION. (a) Sections 48.257(g),
  49.154, and 49.157 [41.002(e), 41.094, 41.097, and 41.098] apply
  only to a district that:
               (1)  executes an agreement to purchase [all] attendance
  credit [credits] necessary to reduce the district's local revenue 
  [wealth per student to the equalized wealth] level to the level
  established under Section 48.257;
               (2)  executes an agreement to purchase attendance
  credit [credits] and an agreement under Subchapter E to contract
  for the education of nonresident students who transfer to and are
  educated in the district but who are not charged tuition; or
               (3)  executes an agreement under Subchapter E to
  contract for the education of nonresident students:
                     (A)  to an extent that does not provide more than
  10 percent of the reduction in local revenue [wealth per student]
  required for the district to achieve a local revenue level [wealth
  per student] that is equal to or less than the [equalized wealth]
  level established under Section 48.257; and
                     (B)  under which all revenue paid by the district
  to other districts, in excess of the reduction in state aid that
  results from counting the weighted average daily attendance of the
  students served in the contracting district, is required to be used
  for funding a consortium of at least three districts in a county
  with a population of less than 40,000 that is formed to support a
  technology initiative.
         (b)  A district that executes an agreement under Subsection
  (a)(3) must pay full market value for any good or service the
  district obtains through the consortium.
         SECTION 1.043.  Effective September 1, 2024, Section
  49.158(a), Education Code, as redesignated by this Act, is amended
  to read as follows:
         (a)  Sections 49.154 and 49.157 [41.002(e), 41.094, 41.097,
  and 41.098] apply only to a district that:
               (1)  executes an agreement to purchase [all] attendance
  credit [credits] necessary to reduce the district's local revenue 
  [wealth per student to the equalized wealth] level to the level
  established under Section 48.257;
               (2)  executes an agreement to purchase attendance
  credit [credits] and an agreement under Subchapter E to contract
  for the education of nonresident students who transfer to and are
  educated in the district but who are not charged tuition; or
               (3)  executes an agreement under Subchapter E to
  contract for the education of nonresident students:
                     (A)  to an extent that does not provide more than
  10 percent of the reduction in local revenue [wealth per student]
  required for the district to achieve a local revenue level [wealth
  per student] that is equal to or less than the [equalized wealth]
  level established under Section 48.257; and
                     (B)  under which all revenue paid by the district
  to other districts, in excess of the reduction in state aid that
  results from counting the weighted average daily attendance of the
  students served in the contracting district, is required to be used
  for funding a consortium of at least three districts in a county
  with a population of less than 40,000 that is formed to support a
  technology initiative.
         SECTION 1.044.  Chapter 49, Education Code, as added by this
  Act, is amended by adding Subchapter E, and a heading is added to
  that subchapter to read as follows:
  SUBCHAPTER E. EDUCATION OF NONRESIDENT STUDENTS
         SECTION 1.045.  Sections 41.121, 41.122, and 41.123,
  Education Code, are transferred to Subchapter E, Chapter 49,
  Education Code, as added by this Act, redesignated as Sections
  49.201, 49.202, and 49.203, Education Code, and amended to read as
  follows:
         Sec. 49.201 [41.121].  AGREEMENT. [(a)] The board of
  trustees of a district with a local revenue [wealth per student that
  exceeds the equalized wealth] level in excess of entitlement may
  execute an agreement to educate the students of another district in
  a number that, when the weighted average daily attendance of the
  students served is added to the weighted average daily attendance
  of the contracting district, is sufficient, in combination with any
  other actions taken under this chapter, to reduce the district's
  local revenue level [wealth per student] to a level that is equal to
  or less than the [equalized wealth] level established under Section
  48.257.  The agreement is not effective unless the commissioner
  certifies that the transfer of weighted average daily attendance
  will not result in any of the contracting districts' local revenue
  level [wealth per student] being greater than the [equalized
  wealth] level established under Section 48.257 and that the
  agreement requires an expenditure per student in weighted average
  daily attendance that is at least equal to the amount per student in
  weighted average daily attendance required under Section 49.153
  [41.093].
         Sec. 49.202 [41.122].  VOTER APPROVAL. (a) After first
  executing an agreement under this subchapter other than an
  agreement under Section 49.205 [41.125], the board of trustees of
  the district that will be educating nonresident students shall
  order and conduct an election, in the manner provided by Sections
  13.003(d)-(g), to obtain voter approval of the agreement.
         (b)  The ballot shall be printed to permit voting for or
  against the proposition: "Authorizing the board of trustees of
  ________ School District to educate students of other school
  districts with local tax revenues."
         (c)  The proposition is approved if the proposition receives
  a favorable vote of a majority of the votes cast. If the
  proposition is approved, the agreement executed by the board is
  ratified, and the board has continuing authority to execute
  agreements under this subchapter on behalf of the district without
  further voter approval.
         Sec. 49.203 [41.123].  WADA COUNT. For purposes of Chapter
  48 [42], students served under an agreement under this subchapter
  are counted only in the weighted average daily attendance of the
  district providing the services, except that students served under
  an agreement authorized by Section 49.205 [41.125] are counted in a
  manner determined by the commissioner.
         SECTION 1.046.  Section 41.124, Education Code, as amended
  by Chapters 581 (S.B. 810) and 705 (H.B. 3526), Acts of the 85th
  Legislature, Regular Session, 2017, is transferred to Subchapter E,
  Chapter 49, Education Code, as added by this Act, redesignated as
  Section 49.204, Education Code, and reenacted and amended to read
  as follows:
         Sec. 49.204 [41.124].  TRANSFERS. (a) The board of
  trustees of a school district with a local revenue [wealth per
  student that exceeds the equalized wealth] level in excess of
  entitlement may reduce the district's local revenue level [wealth
  per student] by serving nonresident students who transfer to the
  district and are educated by the district but who are not charged
  tuition. A district that exercises the option under this
  subsection is not required to execute an agreement with the school
  district in which a transferring student resides and must certify
  to the commissioner that the district has not charged or received
  tuition for the transferring students.
         (b)  A school district with a local revenue [wealth per
  student that exceeds the equalized wealth] level in excess of
  entitlement that pays tuition to another school district for the
  education of students that reside in the district may apply the
  amount of tuition paid toward the cost of the option chosen by the
  district to reduce its local revenue level [wealth per student].
  The amount applied under this subsection may not exceed the amount
  of maintenance and operations tax revenue for one student in
  weighted average daily attendance in [determined under Section
  41.093 as the cost of an attendance credit for] the district. The
  commissioner may require any reports necessary to document the
  tuition payments.
         (c)  A school district that receives tuition for a student
  from a school district with a local revenue [wealth per student that
  exceeds the equalized wealth] level in excess of entitlement may
  not claim attendance for that student for purposes of Chapters [42
  and] 46 and 48 and the instructional materials and technology
  allotment under Section 31.0211.
         SECTION 1.047.  Section 41.125, Education Code, is
  transferred to Subchapter E, Chapter 49, Education Code, as added
  by this Act, redesignated as Section 49.205, Education Code, and
  amended to read as follows:
         Sec. 49.205 [41.125].  CAREER AND TECHNOLOGY EDUCATION
  PROGRAMS. (a) The board of trustees of a school district with a
  local revenue [wealth per student that exceeds the equalized
  wealth] level in excess of entitlement may reduce the district's
  local revenue level [wealth per student] by executing an agreement
  to provide students of one or more other districts with career and
  technology education through a program designated as an area
  program for career and technology education.
         (b)  The agreement is not effective unless the commissioner
  certifies that:
               (1)  implementation of the agreement will not result in
  any of the affected districts' local revenue level [wealth per
  student] being greater than the [equalized wealth] level
  established under Section 48.257; and
               (2)  the agreement requires the district with a local
  revenue [wealth per student that exceeds the equalized wealth]
  level in excess of entitlement to make expenditures benefiting
  students from other districts in an amount at least equal to the
  amount that would be required for the district to purchase [the
  number of] attendance credit [credits] under Subchapter D
  necessary, in combination with any other actions taken under this
  chapter other than an action under this section, to reduce the
  district's local revenue level [wealth per student] to a level that
  is equal to or less than the [equalized wealth] level established
  under Section 48.257.
         SECTION 1.048.  Subchapter F, Chapter 41, Education Code, is
  transferred to Chapter 49, Education Code, as added by this Act,
  redesignated as Subchapter F, Chapter 49, Education Code, and
  amended to read as follows:
  SUBCHAPTER F. TAX BASE CONSOLIDATION
         Sec. 49.251 [41.151].  AGREEMENT. The board of trustees of
  two or more school districts may execute an agreement to conduct an
  election on the creation of a consolidated taxing district for the
  maintenance and operation of the component school districts. The
  agreement is subject to approval by the commissioner. The
  agreement is not effective unless the commissioner certifies that
  the consolidated taxing district will have a local revenue level
  [wealth per student] equal to or less than the [equalized wealth]
  level established under Section 48.257 after all actions taken
  under this chapter.
         Sec. 49.252 [41.152].  DATE OF ELECTION. Any agreement
  under this subchapter must provide for the ordering of an election
  to be held on the same date in each district.
         Sec. 49.253 [41.153].  PROPOSITION. (a) The ballot shall
  be printed to permit voting for or against the proposition:
  "Creation of a consolidated taxing district composed of the
  territory of _________________________ school districts, and
  authorizing the levy, assessment, and collection of annual ad
  valorem taxes for the maintenance of the public free schools within
  that taxing district at a rate not to exceed $_________ on the $100
  valuation of taxable property."
         (b)  The rate to be included in the proposition shall be
  provided by the agreement among the districts but may not exceed the
  maximum rate provided by law for independent school districts.
         Sec. 49.254 [41.154].  APPROVAL. The proposition is
  approved only if the proposition receives a favorable vote of the
  majority of the votes cast within each participating school
  district.
         Sec. 49.255 [41.155].  CONSOLIDATED TAXING DISTRICT. A
  consolidated taxing district is a school district established for
  the limited purpose of exercising the taxing power authorized by
  Section 3, Article VII, Texas Constitution, and distributing the
  revenue to its component school districts.
         Sec. 49.256 [41.156].  GOVERNANCE. (a) The consolidated
  taxing district is governed by the boards of the component school
  districts acting jointly.
         (b)  Any action taken by the joint board must receive a
  favorable vote of a majority of each component district's board of
  trustees.
         Sec. 49.257 [41.157].  MAINTENANCE TAX. (a) The joint
  board shall levy a maintenance tax for the benefit of the component
  school districts not later than September 1 of each year or as soon
  thereafter as practicable.
         (b)  Each component district shall bear a share of the costs
  of assessing and collecting taxes in proportion to the component
  district's share of weighted average daily attendance in the
  consolidated taxing district.
         (c)  A component district may not levy an ad valorem tax for
  the maintenance and operation of the schools.
         (d)  Notwithstanding Section 45.003, the consolidated taxing
  district may levy, assess, and collect a maintenance tax for the
  benefit of the component districts at a rate that exceeds $1.50 per
  $100 valuation of taxable property to the extent necessary to pay
  contracted obligations on the lease purchase of permanent
  improvements to real property entered into on or before May 12,
  1993. The proposition to impose taxes at the necessary rate must be
  submitted to the voters in the manner provided by Section 45.003.
         Sec. 49.258 [41.158].  REVENUE DISTRIBUTION. The
  consolidated taxing district shall distribute maintenance tax
  revenue to the component districts on the basis of the number of
  students in weighted average daily attendance in the component
  districts.
         Sec. 49.259 [41.159].  TAXES OF COMPONENT DISTRICTS. (a)
  The governing board of a component school district of a
  consolidated taxing district that has consolidated for maintenance
  and operation purposes only may issue bonds and levy, pledge, and
  collect ad valorem taxes within that component district sufficient
  to pay the principal of and interest on those bonds as provided by
  Chapter 45.
         (b)  A component district levying an ad valorem tax under
  this section or Section 49.260(b)(1) [41.160(b)(1)] is entitled to
  the guaranteed yield provided by Subchapter E [F], Chapter 48 [42],
  for that portion of its tax rate that, when added to the maintenance
  tax levied by the consolidated taxing unit, does not exceed the
  limitation provided by Section 48.203 [42.303].
         Sec. 49.260 [41.160].  OPTIONAL TOTAL TAX BASE
  CONSOLIDATION. (a) An agreement executed under Section 49.251
  [41.151] may provide for total tax base consolidation instead of
  consolidation for maintenance and operation purposes only.
         (b)  Under an agreement providing for total tax base
  consolidation:
               (1)  the component districts may not levy maintenance
  or bond taxes, except to the extent necessary to retire bonds and
  other obligations issued before the effective date of the
  consolidation;
               (2)  the joint board may issue bonds and levy, pledge,
  and collect ad valorem taxes sufficient to pay the principal of and
  interest on those bonds, and issue refunding bonds, as provided by
  Chapter 45 for independent school districts; and
               (3)  to the end of the ballot proposition required
  under Section 49.253(a) [41.153(a)] shall be added ", and further
  to create a consolidated tax base for the repayment of all bonded
  indebtedness issued by the joint board of the taxing district after
  the effective date of the consolidation and to authorize the joint
  board to levy, pledge, and collect ad valorem taxes at a rate
  sufficient to pay the principal of and interest on those bonds."
         (c)  Under an agreement providing for total tax base
  consolidation:
               (1)  the component districts may provide for the
  consolidated taxing district to assume all of the indebtedness of
  all component districts; and
               (2)  to the end of the ballot proposition required by
  Section 49.253(a) [41.153(a)] shall be added ", and further to
  create a consolidated tax base for the repayment of all bonded
  indebtedness issued by the joint board of the taxing district or
  previously issued by the component school districts and to
  authorize the joint board to levy, pledge, and collect ad valorem
  taxes at a rate sufficient to pay the principal of and interest on
  those bonds."
         SECTION 1.049.  Subchapter G, Chapter 41, Education Code, is
  transferred to Chapter 49, Education Code, as added by this Act,
  redesignated as Subchapter G, Chapter 49, Education Code, and
  amended to read as follows:
  SUBCHAPTER G. DETACHMENT AND ANNEXATION BY COMMISSIONER
         Sec. 49.301  [41.201].  DEFINITION. In this subchapter,
  "mineral property" means a real property mineral interest that has
  been severed from the surface estate by a mineral lease creating a
  determinable fee or by a conveyance that creates an interest
  taxable separately from the surface estate. A mineral property
  includes each royalty interest, working interest, or other
  undivided interest in the mineral property.
         Sec. 49.302  [41.202].  DETERMINATION OF TAXABLE VALUE. (a)
  For purposes of this subchapter, the taxable value of an individual
  parcel or other item of property and the total taxable value of
  property in a school district resulting from the detachment of
  property from or annexation of property to that district is
  determined by applying the appraisal ratio for the appropriate
  category of property determined under Subchapter M, Chapter 403,
  Government Code, for the preceding tax year to the taxable value of
  the detached or annexed property determined under Title 1, Tax
  Code, for the preceding tax year.
         (b)  For purposes of this subchapter, the taxable value of
  all or a portion of a parcel or item of real property includes the
  taxable value of personal property having taxable situs at the same
  location as the real property.
         Sec. 49.303  [41.203].  PROPERTY SUBJECT TO DETACHMENT AND
  ANNEXATION. (a) Only the following property may be detached and
  annexed under this subchapter:
               (1)  a mineral property;
               (2)  real property used in the operation of a public
  utility, including a pipeline, pipeline gathering system, or
  railroad or other rail system; and
               (3)  real property used primarily for industrial or
  other commercial purposes, other than property used primarily for
  agriculture or for residential purposes.
         (b)  If a final judgment of a court determines that a mineral
  interest may not be annexed and detached as provided by this
  subchapter without an attendant annexation and detachment of the
  surface estate or any other interest in the same land, the
  detachment and annexation of a mineral interest under this
  subchapter includes the surface estate and each other interest in
  the land covered by the mineral interest.
         Sec. 49.304  [41.204].  TAXATION OF PERSONAL PROPERTY.
  Personal property having a taxable situs at the same location as
  real property detached and annexed under this subchapter is taxable
  by the school district to which the real property is annexed.
         Sec. 49.305  [41.205].  DETACHMENT OF PROPERTY. (a) The
  commissioner shall detach property under this section from each
  school district from which the commissioner is required under
  Section 49.004 [41.004] to detach property under this subchapter.
         (b)  The commissioner shall detach from each school district
  covered by Subsection (a) one or more whole parcels or items of
  property in descending order of the taxable value of each parcel or
  item, beginning with the parcel or item having the greatest taxable
  value, until the school district's local revenue level [wealth per
  student] is equal to or less than the [equalized wealth] level
  established under Section 48.257, except as otherwise provided by
  Subsection (c).
         (c)  If the detachment of whole parcels or items of property
  [,] as provided by Subsection (a) would result in a district's local
  revenue level [wealth per student] that is less than the [equalized
  wealth] level established under Section 48.257 by more than the
  product of $10,000 multiplied by weighted average daily attendance,
  the commissioner may not detach the last parcel or item of property
  and shall detach the next one or more parcels or items of property
  in descending order of taxable value that would result in the school
  district having a local revenue level [wealth per student] that is
  equal to or less than the [equalized wealth] level established
  under Section 48.257 by not more than the product of $10,000
  multiplied by weighted average daily attendance.
         (d)  Notwithstanding Subsections (a), (b), and (c), the
  commissioner may detach only a portion of a parcel or item of
  property if:
               (1)  it is not possible under this subchapter to reduce
  the district's local revenue level [wealth per student] to a level
  that is equal to or less than the [equalized wealth] level
  established under Section 48.257 [this subchapter] unless some or
  all of the parcel or item of property is detached and the detachment
  of the whole parcel or item would result in the district from which
  it is detached having a local revenue level [wealth per student]
  that is less than the [equalized wealth] level established under
  Section 48.257 by more than the product of $10,000 multiplied by
  weighted average daily attendance; or
               (2)  the commissioner determines that a partial
  detachment of that parcel or item of property is preferable to the
  detachment of one or more other parcels or items having a lower
  taxable value in order to minimize the number of parcels or items of
  property to be detached consistent with the purposes of this
  chapter.
         Sec. 49.306  [41.206].  ANNEXATION OF PROPERTY. (a) The
  commissioner shall annex property detached under Section 49.305
  [41.205] to school districts eligible for annexation in accordance
  with this section. A school district is eligible for annexation of
  property to it under this subchapter only if, before any
  detachments or annexations are made in a year, the district's
  taxable value of property does not exceed the value necessary to
  generate maintenance and operations tax revenue in the amount equal
  to the district's entitlement under Section 48.202(a-1)(2) [wealth
  per student is less than the greatest level for which funds are
  provided under Subchapter F, Chapter 42].
         (b)  Property may be annexed to a school district without
  regard to whether the property is contiguous to other property in
  that district.
         (c)  The commissioner shall annex property detached from
  school districts beginning with the property detached from the
  school district with the greatest local revenue level in excess of
  entitlement [wealth per student] before detachment, and continuing
  with the property detached from each other school district in
  descending order of the district's local revenue level in excess of
  entitlement [wealth per student] before detachment.
         (d)  The commissioner shall annex the parcels or items of
  property detached from a school district to other school districts
  that are eligible for annexation of property in descending order of
  the taxable value of each parcel or item according to the following
  priorities:
               (1)  first, to the eligible school districts assigned
  to the same county as the school district from which the property is
  detached whose total adopted tax rate for the preceding tax year
  does not exceed by more than $0.15 the total tax rate adopted for
  that year by the school district from which the property is
  detached;
               (2)  second, to the eligible school districts served by
  the same regional education service center as the district from
  which the property is detached whose total adopted tax rate for the
  preceding tax year does not exceed by more than $0.10 the total tax
  rate adopted for that year by the school district from which the
  property is detached; and
               (3)  third, to other eligible school districts whose
  total adopted tax rate for the preceding tax year does not exceed by
  more than $0.05 the total tax rate adopted for that year by the
  school district from which the property is detached.
         (e)  If the districts identified by Subsection (d) for a
  school district are insufficient to annex all the property detached
  from the school district, the commissioner shall increase, for
  purposes of this section, all the maximum difference in tax rates
  allowed under Subsection (d) in increments of $0.01 until the
  districts are identified that are sufficient to annex all the
  property detached from the district.
         (f)  If only one school district is eligible to annex
  property detached from a school district within a priority group
  established by Subsections (d) and (e), the commissioner shall
  annex property to that district until it reaches the taxable value
  of property necessary to generate maintenance and operations tax
  revenue in the amount equal to the district's entitlement under
  Section 48.202(a-1)(2) [a wealth per student equal as nearly as
  possible to the greatest level for which funds are provided under
  Subchapter F, Chapter 42], by annexing whole parcels or items of
  property. Any remaining detached property shall be annexed to
  eligible school districts in the next priority group as provided by
  this section.
         (g)  If more than one school district is eligible to annex
  property detached from a school district within a priority group
  established by Subsections (d) and (e), the commissioner shall
  first annex property to the district within the priority group to
  which could be annexed the most taxable value of property without
  increasing the district's taxable value of property to an amount
  that exceeds the amount necessary to generate maintenance and
  operations tax revenue in the amount equal to the district's
  entitlement under Section 48.202(a-1)(2) [its wealth per student
  above the greatest level for which funds are provided under
  Subchapter F, Chapter 42], until that district reaches a taxable
  value of property necessary to generate maintenance and operations
  tax revenue in the amount equal to the district's entitlement under
  Section 48.202(a-1)(2) [wealth per student equal as nearly as
  possible to the greatest level for which funds are provided under
  Subchapter F, Chapter 42], by annexing whole parcels or items of
  property. Then any additional detached property shall be annexed
  in the same manner to other eligible school districts in the same
  priority group in descending order of capacity to receive taxable
  value of annexed property without increasing the district's taxable
  value of property to an amount that exceeds the amount necessary to
  generate maintenance and operations tax revenue in the amount equal
  to the district's entitlement under Section 48.202(a-1)(2) [wealth
  per student above the greatest level for which funds are provided
  under Subchapter F, Chapter 42]. If every school district in a
  priority group reaches a taxable value of property necessary to
  generate maintenance and operations tax revenue in the amount equal
  to the district's entitlement under Section 48.202(a-1)(2) [wealth
  per student equal to the greatest level for which funds are provided
  under Subchapter F, Chapter 42], as nearly as possible, the
  remaining detached property shall be annexed to school districts in
  the next priority group in the manner provided by this section.
         (h)  For purposes of this section, a portion of a parcel or
  item of property detached in that subdivided form from a school
  district is treated as a whole parcel or item of property.
         (i)  The commissioner may order the annexation of a portion
  of a parcel or item of property, including a portion of property
  treated as a whole parcel or item under Subsection (h), if:
               (1)  the annexation of the whole parcel or item would
  result in the district eligible to receive it in the appropriate
  priority order provided by this section having a local revenue
  level [wealth per student] greater than the amount by which the
  product of $10,000 multiplied by weighted average daily attendance
  exceeds the taxable value of property necessary to generate
  maintenance and operations tax revenue in the amount equal to the
  district's entitlement under Section 48.202(a-1)(2) [more than the
  greatest level for which funds are provided under Subchapter F,
  Chapter 42]; or
               (2)  the commissioner determines that annexation of
  portions of the parcel or item would reduce disparities in district
  taxable values of property necessary to generate maintenance and
  operations tax revenue in the amount equal to a district's
  entitlement under Section 48.202(a-1)(2) [wealth per student] more
  efficiently than would be possible if the parcel or item were
  annexed as a whole.
         (j)  The commissioner may modify the priorities established
  by this section as the commissioner considers reasonable to
  minimize or reduce the number of school districts to which the
  property detached from a school district is annexed, to minimize or
  reduce the geographic dispersal of property in a school district,
  to minimize or reduce disparities in school district taxable values
  of property necessary to generate maintenance and operations tax
  revenue in the amount equal to a district's entitlement under
  Section 48.202(a-1)(2) [wealth per student] that would otherwise
  result, or to minimize or reduce any administrative burden or
  expense.
         (k)  For purposes of this section, a school district is
  assigned to a county if the school district is assigned to that
  county in the 1992-1993 Texas School Directory published by the
  Central Education Agency.
         Sec. 49.307  [41.207].  LIMITATIONS ON DETACHMENT AND
  ANNEXATION. The commissioner may detach and annex property under
  this subchapter only if:
               (1)  the property is not exempt from ad valorem
  taxation under Section 11.20 or 11.21, Tax Code; and
               (2)  the property does not contain a building or
  structure owned by the United States, this state, or a political
  subdivision of this state that is exempt from ad valorem taxation
  under law.
         Sec. 49.308  [41.208].  ORDERS AND NOTICE. (a) The
  commissioner shall order any detachments and annexations of
  property under this subchapter not later than November 8 of each
  year.
         (b)  As soon as practicable after issuing the order under
  Subsection (a), the commissioner shall notify each affected school
  district and the appraisal district in which the affected property
  is located of the determination.
         Sec. 49.309  [41.209].  TREATMENT OF SUBDIVIDED PROPERTY.
  (a) If the commissioner orders the detachment or annexation of a
  portion of a parcel or item of property under this subchapter, the
  order shall specify the portion of the taxable value of the property
  to be detached or annexed and may, but need not, describe the
  specific area of the parcel or item to be detached or annexed.
         (b)  If an order for the detachment or annexation of a
  portion of a parcel or item of property does not describe the
  specific area of the parcel or item to be detached or annexed, the
  commissioner, as soon as practicable after issuing the order, shall
  determine the specific area to be detached or annexed and shall
  certify that determination to the appraisal district for the county
  in which the property is located.
         (c)  If portions of a parcel or item of property are located
  in two or more school districts as the result of a detachment or
  annexation, the parcel or item shall be appraised for taxation as a
  unit, and the commissioner shall determine the portion of the
  taxable value of the property that is located in each of those
  school districts based on the square footage of the property, or any
  other reasonable method adopted by the commissioner.
         Sec. 49.310  [41.210].  DUTIES OF CHIEF APPRAISER. (a) The
  chief appraiser of each appraisal district shall cooperate with the
  commissioner in administering this subchapter. The commissioner
  may require the chief appraiser to submit any reports or provide any
  information available to the chief appraiser in the form and at the
  times required by the commissioner.
         (b)  As soon as practicable after the detachment and
  annexation of property, the chief appraiser of the appraisal
  district in which the property is located shall send a written
  notice of the detachment and annexation to the owner of any property
  taxable in a different school district as a result of the detachment
  and annexation.  The notice must include the name of the school
  district by which the property is taxable after the detachment and
  annexation.
         (c)  The commissioner may reimburse an appraisal district
  for any costs incurred in administering this subchapter and may
  condition the reimbursement or the amount of the reimbursement on
  the timely submission of reports or information required by the
  commissioner or the satisfactory performance of any other action
  required or requested by the commissioner.
         Sec. 49.311  [41.211].  STUDENT ATTENDANCE. A student who
  is a resident of real property detached from a school district may
  choose to attend school in that district or in the district to which
  the property is annexed. For purposes of determining average daily
  attendance under Section 48.005 [42.005], the student shall be
  counted in the district to which the property is annexed. If the
  student chooses to attend school in the district from which the
  property is detached, the state shall withhold any foundation
  school funds from the district to which the property is annexed and
  shall allocate to the district in which the student is attending
  school those funds and the amount of funds equal to the difference
  between the state funds the district is receiving for the student
  and the district's cost in educating the student.
         Sec. 49.312  [41.212].  BOND TAXES. Property detached from
  a school district is released from the obligation for any tax to pay
  principal and interest on bonds authorized by the district before
  detachment. The property is subject to any tax to pay principal or
  interest on bonds authorized by the district to which the property
  is annexed whether authorized before or after annexation.
         Sec. 49.313  [41.213].  DETERMINATION BY COMMISSIONER
  FINAL. A decision or determination of the commissioner under this
  subchapter is final and not appealable.
         SECTION 1.050.  Subchapter H, Chapter 41, Education Code, is
  transferred to Chapter 49, Education Code, as added by this Act,
  redesignated as Subchapter H, Chapter 49, Education Code, and
  amended to read as follows:
  SUBCHAPTER H. CONSOLIDATION BY COMMISSIONER
         Sec. 49.351  [41.251].  COMMISSIONER ORDER. If the
  commissioner is required under Section 49.004 [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.
         Sec. 49.352  [41.252].  SELECTION CRITERIA. (a) In
  selecting the districts to be consolidated with a district that has
  taxable values of property in an amount that exceeds the local
  revenue level established under Section 48.257 [a property wealth
  greater than the equalized wealth level], the commissioner shall
  select one or more districts [with a wealth per student] that, when
  consolidated, will result in a consolidated district with a local
  revenue level [wealth per student] equal to or less than the
  [equalized wealth] level established under Section 48.257. 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 revenue level [wealth per student] and is located in
  the same county;
               (2)  second, to the district that has the lowest local
  revenue level [wealth per student] and is located in the same
  county;
               (3)  third, to a contiguous district with a local
  revenue level [property wealth] below the [equalized wealth] level
  established under Section 48.257 that has requested the
  commissioner that it be considered in a consolidation plan;
               (4)  fourth, to include as few districts as possible
  that have the lowest local revenue levels below the [fall below the
  equalized wealth] level established under Section 48.257 within the
  consolidation order that have not requested the commissioner to be
  included;
               (5)  fifth, to the district that has the lowest local
  revenue level [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 that has a local revenue level [property
  wealth] greater than the [equalized wealth] level established under
  Section 48.257.
         (b)  The commissioner may not select a district that has been
  created as a result of consolidation by agreement under Subchapter
  B to be consolidated under this subchapter with a district that has
  a local revenue level [property wealth] greater than the [equalized
  wealth] level established under Section 48.257.
         (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 that has a
  local revenue level [property wealth] greater than the [equalized
  wealth] level established under Section 48.257 and the district or
  districts previously selected for consolidation as one district.
         Sec. 49.353  [41.253].  GOVERNANCE. (a) Until the initial
  trustees elected as provided by Subsection (b) have qualified and
  taken office, a district consolidated under this subchapter is
  governed by a transitional board of trustees consisting of the
  board of trustees of the district having the greatest student
  membership on the last day of the school year preceding the
  consolidation plus one member of the board of trustees of each other
  consolidating district selected by that board.
         (b)  The transitional board of trustees shall divide the
  consolidated district into nine single-member trustee districts in
  accordance with the procedures provided by Section 11.052.  The
  transitional board shall order an election for the initial board of
  trustees to be held on the first May uniform election date after the
  effective date of a consolidation order.
         (c)  Members of the board of trustees of a consolidated
  district serve staggered terms of office for four years.
         (d)  Section 13.156 applies to districts consolidated under
  this subchapter.
         Sec. 49.354  [41.254].  DISSOLUTION OF CONSOLIDATED
  DISTRICT. (a) If the legislature abolishes ad valorem taxes for
  public school maintenance and operations and adopts another method
  of funding public education, the board of trustees of a
  consolidated district created under this subchapter may dissolve
  the consolidated district, provided that the dissolution is
  approved by a majority of those voters residing within the district
  participating in an election called for the purpose of approving
  the dissolution of the consolidated school district.
         (b)  If a consolidated district is dissolved, each of the
  former districts is restored as a separate district and is
  classified as an independent district.
         (c)  Title to real property of the consolidated district is
  allocated to the restored district in which the property is
  located. Title to proportionate shares of the fund balances and
  personal property of the consolidated district, as determined by
  Subsection (e), are allocated to each restored district.
         (d)  Each of the restored districts assumes and is liable
  for:
               (1)  indebtedness of the consolidated district that
  relates to real property allocated to the district; and
               (2)  a proportionate share, as determined by Subsection
  (e), of indebtedness of the consolidated district that does not
  relate to real property.
         (e)  A restored district's proportionate share of fund
  balances, personal property, or indebtedness is equal to the
  proportion that the number of students in average daily attendance
  in the restored district bears to the number of students in average
  daily attendance in the consolidated district.
         Sec. 49.355  [41.255].  FUND BALANCES. Fund balances of a
  school district consolidated under this subchapter may be used only
  for the benefit of the schools within the district that generated
  the funds.
         Sec. 49.356  [41.256].  EMPLOYMENT CONTRACTS. A
  consolidated district created under this subchapter shall honor an
  employment contract entered into by a consolidating district.
         Sec. 49.357  [41.257].  APPLICATION OF [SMALL AND] SPARSE
  ADJUSTMENT [ADJUSTMENTS] AND SMALL AND TRANSPORTATION ALLOTMENTS
  [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 48.052 [42.103], 48.101 
  [42.105], or 48.151 [42.155] would have applied in the event that
  the consolidated district still qualifies as a small or sparse
  district.
         SECTION 1.051.  The heading to Subchapter A, Chapter 316,
  Government Code, is amended to read as follows:
  SUBCHAPTER A. LIMIT ON GROWTH OF APPROPRIATIONS; DETERMINATIONS
  REGARDING PUBLIC SCHOOL FINANCE
         SECTION 1.052.  Section 316.002(a), Government Code, is
  amended to read as follows:
         (a)  Before the Legislative Budget Board submits the budget
  as prescribed by Section 322.008(c), the board shall:
               (1)  establish for purposes of Section 316.001:
                     (A) [(1)]  the estimated rate of growth of the
  state's economy from the current biennium to the next biennium;
                     (B) [(2)]  the level of appropriations for the
  current biennium from state tax revenues not dedicated by the
  constitution; and
                     (C) [(3)]  the amount of state tax revenues not
  dedicated by the constitution that could be appropriated for the
  next biennium within the limit established by the estimated rate of
  growth of the state's economy; and
               (2)  determine for purposes of the Foundation School
  Program under Chapter 48, Education Code:
                     (A)  the estimated state share of the program for
  the next biennium, including the instructional materials and
  technology allotment under Section 31.0211, Education Code, and
  excluding any anticipated federal funding;
                     (B)  the estimated reduction in the state share of
  the program from the current biennium to the next biennium
  attributable to the rate of growth of the taxable value of property
  in the state for the next biennium, based on the estimates submitted
  under Section 48.269, Education Code;
                     (C)  the cost per cent of reducing the state
  compression percentage under Section 48.255, Education Code, for
  the next biennium; and
                     (D)  a recommended state compression percentage
  under Section 48.255, Education Code, for the next biennium, based
  on the determinations made under Subdivision (1) and Paragraphs
  (A), (B), and (C).
         SECTION  1.053.  Section 316.007(a), Government Code, is
  amended to read as follows:
         (a)  The Legislative Budget Board shall include in its budget
  recommendations:
               (1)  the proposed limit of appropriations from state
  tax revenues not dedicated by the constitution; and
               (2)  the recommended state compression percentage
  under Section 48.255, Education Code.
         SECTION 1.054.  Section 322.008(b), Government Code, is
  amended to read as follows:
         (b)  The general appropriations bill may include for
  purposes of information the funding elements computed by the
  Legislative Budget Board under Section 316.002(a)(2) [42.007,
  Education Code, excluding the values for each school district
  calculated under Section 42.007(c)(2), Education Code. If the
  funding elements are included, the funding elements under Section
  42.007(c)(3), Education Code, shall be reported in dollar amounts
  per pupil].
         SECTION 1.055.  Sections 825.405(a), (b), (e), and (f),
  Government Code, are amended to read as follows:
         (a)  An employing school district or an open-enrollment
  charter school, as applicable, shall pay the state's contribution
  on the portion of a member's salary that exceeds the statutory
  minimum salary for [For] members:
               (1)  entitled to the minimum salary for certain school
  personnel under Section 21.402, Education Code;
               (2)  [, and for members] who would have been entitled to
  the minimum salary for certain school personnel under former
  Section 16.056, Education Code, as that section existed on January
  1, 1995; and
               (3)  who would be entitled to the minimum salary for
  certain school personnel under Section 21.402, Education Code, if
  the member was employed by a school district subject to that section
  instead of being employed by:
                     (A)  an open-enrollment charter school; or
                     (B)  a school district that has adopted a local
  innovation plan under Chapter 12A, Education Code, that exempts the
  district's employees from the minimum salary schedule under that
  section[, the employing district shall pay the state's contribution
  on the portion of the member's salary that exceeds the statutory
  minimum salary].
         (b)  For purposes of this section,[:
               [(1)]  the statutory minimum salary for a member
  described by:
               (1)  Subsection (a)(1) [certain school personnel under
  Section 21.402, Education Code,] is the salary provided by Section
  21.402, Education Code [that section multiplied by the cost of
  education adjustment applicable under Section 42.102, Education
  Code, to the district in which the member is employed]; [and]
               (2)  Subsection (a)(2) [the statutory minimum salary
  for members who would have been entitled to the minimum salary for
  certain school personnel under former Section 16.056, Education
  Code, as that section existed on January 1, 1995,] is a minimum
  salary computed in the same manner as the minimum salary for certain
  school personnel under Section 21.402, Education Code; and
               (3)  Subsection (a)(3) is the minimum salary the member
  would have been entitled to if the member was subject to Section
  21.402, Education Code[, multiplied by the cost of education
  adjustment applicable under Section 42.102, Education Code, to the
  district in which the member is employed].
         (e)  After the end of each school year, the retirement system
  shall certify to the commissioner of education:
               (1)  the names of any employers [employing districts]
  that have failed to remit, within the period required by Section
  825.408, all contributions required under this section for the
  school year; and
               (2)  the amounts of the unpaid contributions.
         (f)  If the commissioner of education receives a
  certification under Subsection (e), the commissioner shall direct
  the comptroller of public accounts to withhold the amount
  certified, plus interest computed at the rate and in the manner
  provided by Section 825.408, from the first state money payable to
  the employer [school district].  The amount withheld shall be
  deposited to the credit of the appropriate accounts of the
  retirement system.
         SECTION 1.056.  Section 26.08, Tax Code, is amended by
  amending Subsections (a), (b), (d), (g), (i), and (n) and adding
  Subsections (a-1) and (n-1) to read as follows:
         (a)  If the governing body of a school district adopts a tax
  rate that exceeds the district's ratification [rollback] tax rate,
  the registered voters of the district at an election held for that
  purpose must determine whether to approve the adopted tax rate.
         (a-1)  When increased expenditure of money by a school
  district is necessary to respond to a disaster, including a
  tornado, hurricane, flood, or other calamity, but not including a
  drought, that has impacted a school district and the governor has
  requested federal disaster assistance for the area in which the
  school district is located, an election is not required under this
  section to approve the tax rate adopted by the governing body for
  the year following the year in which the disaster occurs. A tax
  rate adopted under this subsection applies only in the year for
  which the rate is adopted. If a district adopts a tax rate under
  this subsection, the amount by which that rate exceeds the
  district's ratification tax rate for that tax year may not be
  considered when calculating the district's ratification tax rate
  for the tax year following the year in which the district adopts the
  rate.
         (b)  The governing body shall order that the election be held
  in the school district on the next uniform election [a] date
  prescribed by [not less than 30 or more than 90 days after the day on
  which it adopted the tax rate.] Section 41.001, Election Code, that
  occurs after the date of the election order and that allows
  sufficient time to comply with the requirements of other law [does
  not apply to the election unless a date specified by that section
  falls within the time permitted by this section].  At the election,
  the ballots shall be prepared to permit voting for or against the
  proposition:  "Ratifying [Approving] the ad valorem tax rate of ___
  (insert adopted tax rate) [$_____ per $100 valuation] in (name of
  school district) for the current year, a rate that will result in an
  increase of _____ (insert percentage increase in maintenance and
  operations tax revenue under the adopted tax rate as compared to
  maintenance and operations tax revenue in the preceding tax year)
  percent in maintenance and operations tax revenue for the district
  for the current year as compared to the preceding year, which is an
  additional $____ (insert dollar amount of increase in maintenance
  and operations tax revenue under the adopted tax rate as compared to
  maintenance and operations tax revenue in the preceding tax year)
  [is $_____ higher per $100 valuation than the school district
  rollback tax rate, for the purpose of (description of purpose of
  increase)]."  [The ballot proposition must include the adopted tax
  rate and the difference between that rate and the rollback tax rate
  in the appropriate places.]
         (d)  If the proposition is not approved as provided by
  Subsection (c), the governing body may not adopt a tax rate for the
  school district for the current year that exceeds the school
  district's ratification [rollback] tax rate.
         (g)  In a school district that received distributions from an
  equalization tax imposed under former Chapter 18, Education Code,
  the effective rate of that tax as of the date of the county unit
  system's abolition is added to the district's ratification
  [rollback] tax rate.
         (i)  For purposes of this section, "tier one maintenance and
  operations tax rate" and "enrichment tax rate" have the meanings
  assigned by Section 45.0032, Education Code [the effective
  maintenance and operations tax rate of a school district is the tax
  rate that, applied to the current total value for the district,
  would impose taxes in an amount that, when added to state funds that
  would be distributed to the district under Chapter 42, Education
  Code, for the school year beginning in the current tax year using
  that tax rate, would provide the same amount of state funds
  distributed under Chapter 42, Education Code, and maintenance and
  operations taxes of the district per student in weighted average
  daily attendance for that school year that would have been
  available to the district in the preceding year if the funding
  elements for Chapters 41 and 42, Education Code, for the current
  year had been in effect for the preceding year].
         (n)  For purposes of this section, the ratification
  [rollback] tax rate of a school district [whose maintenance and
  operations tax rate for the 2005 tax year was $1.50 or less per $100
  of taxable value] is:
               (1)  for the 2019 [2006] tax year, the sum of the
  following:
                     (A)  the rate that is equal to 96 [88.67] percent
  of the district's tier one maintenance and operations tax rate
  [adopted by the district] for the 2018 [2005] tax year;
                     (B)  [,] the district's enrichment tax rate for
  the 2018 tax year, less the amount by which the district is required
  to reduce the district's enrichment tax rate under Section
  48.202(f), Education Code, in the 2019 tax year; [of $0.04 per $100
  of taxable value,] and
                     (C)  the district's current debt rate; and
               (2)  for the 2020 [2007] and subsequent tax years, the
  sum [lesser] of the following:
                     (A)  [the sum of the following:
                           [(i)]  the rate per $100 of taxable value
  that is equal to the product of the state compression percentage, as
  determined under Section 48.255 [42.2516], Education Code, for the
  current year and $1.00 [$1.50];
                     (B)  the district's enrichment tax rate for the
  2018 tax year, less the rate by which the district is required to
  reduce the district's enrichment tax rate under Section 48.202(f),
  Education Code, in the current tax year [(ii)     the rate of $0.04 per
  $100 of taxable value];
                     (C)  the greater of:
                           (i)  the rate of $0.05 per $100 of taxable
  value, less the district's enrichment tax rate for the preceding
  tax year; or
                           (ii)  zero;
                     (D) [(iii)]  the rate that is equal to the sum of
  the differences for the 2019 [2006] and each subsequent tax year
  between the adopted tax rate of the district for that year if the
  rate was approved at an election under this section and the
  ratification [rollback] tax rate of the district for that year; and
                     (E) [(iv)]  the district's current debt rate[; or
                     [(B)  the sum of the following:
                           [(i)     the effective maintenance and
  operations tax rate of the district as computed under Subsection
  (i) or (k), as applicable;
                           [(ii)     the rate per $100 of taxable value
  that is equal to the product of the state compression percentage, as
  determined under Section 42.2516, Education Code, for the current
  year and $0.06; and
                     [(iii)  the district's current debt rate].
         (n-1)  This section applies only to a school district that,
  for the 2018 tax year, adopted a maintenance and operations tax rate
  equal to the sum of the district's tier one maintenance and
  operations tax rate and the rate of $0.04 per $100 of taxable value.
  For the 2020 tax year, the district shall substitute "$0.04" for
  "$0.05" in Subsection (n)(2)(C)(i) if the governing body of the
  district does not adopt by unanimous vote for that tax year a
  maintenance and operations tax rate at least equal to the sum of the
  district's tier one maintenance and operations tax rate and the
  rate of $0.05 per $100 of taxable value.
  ARTICLE 2.  PUBLIC EDUCATION
         SECTION 2.001.  Subchapter C, Chapter 7, Education Code, is
  amended by adding Section 7.070 to read as follows:
         Sec. 7.070.  COORDINATION OF DATA COLLECTION. The
  commissioner may enter into agreements with appropriate entities as
  necessary to provide for the collection of data regarding college,
  career, and military readiness of public school students, including
  data maintained by:
               (1)  governmental agencies of the United States, this
  state, or another state;
               (2)  political subdivisions of this state or another
  state;
               (3)  public or private institutions of higher
  education; and
               (4)  relevant private organizations.
         SECTION 2.002.  Subchapter D, Chapter 11, Education Code, is
  amended by adding Section 11.185 to read as follows:
         Sec. 11.185.  EARLY CHILDHOOD LITERACY PLAN. (a)  The board
  of trustees of each school district shall adopt an early childhood
  literacy plan that sets specific annual goals for the following
  five school years to reach quantifiable goals for performance on
  the third grade reading assessment instrument administered under
  Section 39.023.
         (b)  The plan adopted under Subsection (a) must:
               (1)  identify annual goals for students in each group
  evaluated under the closing the gaps domain under Section
  39.053(c)(3);
               (2)  include annual goals for aggregate student growth
  on an assessment determined by the board of trustees;
               (3)  provide for targeted professional development for
  classroom teachers in kindergarten or first, second, or third grade
  who are assigned to campuses that the board of trustees identifies
  as not meeting the plan's goals;
               (4)  assign at least one district-level administrator
  or employee of the regional education service center for the
  district's region to:
                     (A)  coordinate implementation of the plan; and
                     (B)  submit an annual report to the board of
  trustees on the district's progress toward the goals set under the
  plan; and
               (5)  be reviewed annually by the board of trustees at a
  public meeting.
         (c)  The plan adopted under Subsection (a) may set separate
  goals for students in a bilingual education or special language
  program under Subchapter B, Chapter 29.
         (d)  The professional development provided to classroom
  teachers under Subsection (b)(3) must, as appropriate, consider the
  unique needs of students in a bilingual education or special
  language program under Subchapter B, Chapter 29.
         (e)  The commissioner may adopt rules as necessary to
  implement this section.
         SECTION 2.003.  Section 12.104(b), Education Code, as
  amended by Chapters 324 (S.B. 1488), 522 (S.B. 179), and 735 (S.B.
  1153), Acts of the 85th Legislature, Regular Session, 2017, is
  reenacted and amended to read as follows:
         (b)  An open-enrollment charter school is subject to:
               (1)  a provision of this title establishing a criminal
  offense; and
               (2)  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)  criminal history records under Subchapter C,
  Chapter 22;
                     (C)  reading instruments and accelerated reading
  instruction programs under Section 28.006;
                     (D)  accelerated instruction under Section
  28.0211;
                     (E)  high school graduation requirements under
  Section 28.025;
                     (F)  special education programs under Subchapter
  A, Chapter 29;
                     (G)  bilingual education under Subchapter B,
  Chapter 29;
                     (H)  prekindergarten programs under Subchapter E
  or E-1, Chapter 29;
                     (I)  extracurricular activities under Section
  33.081;
                     (J)  discipline management practices or behavior
  management techniques under Section 37.0021;
                     (K)  health and safety under Chapter 38;
                     (L)  public school accountability under
  Subchapters B, C, D, F, G, and J, Chapter 39, and Chapter 39A;
                     (M)  the requirement under Section 21.006 to
  report an educator's misconduct;
                     (N)  intensive programs of instruction under
  Section 28.0213;
                     (O)  the right of a school employee to report a
  crime, as provided by Section 37.148; [and]
                     (P)  bullying prevention policies and procedures
  under Section 37.0832;
                     (Q)  the right of a school under Section 37.0052
  to place a student who has engaged in certain bullying behavior in a
  disciplinary alternative education program or to expel the student;
  [and]
                     (R)  the right under Section 37.0151 to report to
  local law enforcement certain conduct constituting assault or
  harassment;
                     (S) [(P)]  a parent's right to information
  regarding the provision of assistance for learning difficulties to
  the parent's child as provided by Sections 26.004(b)(11) and
  26.0081(c) and (d); and
                     (T)  the early childhood literacy plan under
  Section 11.185.
         SECTION 2.004.  Subchapter B, Chapter 21, Education Code, is
  amended by adding Sections 21.063 and 21.064 to read as follows:
         Sec. 21.063.  TEACHER DESIGNATIONS ON CERTIFICATE. (a)  The
  board shall place the appropriate designation issued to a teacher
  under Subchapter P on the teacher's certificate as soon as
  practicable after being notified by the agency of the issuance of
  the designation. 
         (b)  The board shall remove a designation under Subchapter P
  from a teacher's certificate on:
               (1)  expiration of the designation, unless the agency
  notifies the board that the designation has been renewed; or
               (2)  revocation of the designation under Section
  21.755(d).
         Sec. 21.064.  LEGACY MASTER TEACHER CERTIFICATIONS. (a)  
  The board shall recognize a master teacher certificate issued under
  former Section 21.0481, 21.0482, 21.0483, or 21.0484 until the
  certificate expires. The board shall note a designation of
  "legacy" on the certificate.
         (b)  A master teacher certificate described by Subsection
  (a) is not eligible for funding under the educator effectiveness
  allotment under Section 48.154.
         SECTION 2.005.  Sections 21.351(a) and (c), Education Code,
  are amended to read as follows:
         (a)  The commissioner shall adopt a recommended appraisal
  process and criteria on which to appraise the performance of
  teachers. The criteria must be based on observable, job-related
  behavior, including:
               (1)  a teacher's [teachers'] implementation of
  discipline management procedures; and
               (2)  the performance of a teacher's [teachers']
  students.
         (c)  Under the recommended appraisal process, an appraiser
  must be the teacher's supervisor or a person approved by the board
  of trustees. An appraiser who is a classroom teacher may not
  appraise the performance of another classroom teacher who teaches
  at the same school campus at which the appraiser teaches, unless it
  is impractical because of the number of campuses or unless the
  appraiser is in a supervisory role or is the chair of a department
  or grade level whose job description includes classroom observation
  responsibilities.
         SECTION 2.006.  Section 21.355(d), Education Code, is
  amended to read as follows:
         (d)  A school district or open-enrollment charter school
  shall [may] give the agency information regarding the performance
  of a teacher or administrator, including a document evaluating the
  performance of a teacher or administrator currently or previously
  employed by the district or school for purposes of an investigation
  conducted by the agency.
         SECTION 2.007.  Section 21.402, Education Code, is amended
  by amending Subsections (a) and (c-1) and adding Subsections (c-2),
  (c-3), and (c-4) to read as follows:
         (a)  Except as provided by Subsection (e-1) [or (f)], a
  school district must pay each [classroom teacher,] full-time
  librarian, full-time school 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 in addition to
  other factors, as determined by commissioner rule, 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 the basic allotment as provided by Section
  48.051(a) or (b) [42.101(a) or (b)] for a school district with a
  maintenance and operations tax rate at least equal to the state
  maximum compressed tax rate, as defined by Section 48.051 
  [42.101(a)].
         (c-1)  Notwithstanding Subsections (a) and (b), each school
  district shall pay a monthly salary to each [classroom teacher,
  full-time speech pathologist,] full-time librarian, full-time
  school counselor certified under Subchapter B, and full-time school
  nurse that is at least equal to the following monthly salary or the
  monthly salary determined by the commissioner under Subsections (a)
  and (b), whichever is greater:
 
Years of Monthly
 
Experience Salary
 
0 2,732
 
1 2,791
 
2 2,849
 
3 2,908
 
4 3,032
 
5 3,156
 
6 3,280
 
7 3,395
 
8 3,504
 
9 3,607
 
10 3,704
 
11 3,796
 
12 3,884
 
13 3,965
 
14 4,043
 
15 4,116
 
16 4,186
 
17 4,251
 
18 4,313
 
19 4,372
 
20 & Over 4,427
         (c-2)  Except as provided by Subsection (c-4), a school
  district must pay each fully certified classroom teacher not less
  than the following monthly salary, based on the teacher's level of
  experience in addition to other factors, as determined by
  commissioner rule:
 
Years of Monthly
 
Experience Salary
 
0 3,300
 
1 3,700
 
2 4,050
 
3 4,350
 
4 4,600
 
5 4,800
 
6 4,950
 
7 5,050
 
8 5,125
 
9 5,175
 
10 5,200
 
11 5,226
 
12 5,250
 
13 5,275
 
14 5,300
 
15 5,310
 
16 5,320
 
17 5,330
 
18 5,340
 
19 5,350
 
20 & Over 5,360
         (c-3)  For purposes of Subsection (c-2), a "fully certified
  classroom teacher" means a classroom teacher who holds a
  certificate issued under Subchapter B but does not include:
               (1)  a person who holds an emergency certificate issued
  under Section 21.041(b)(2);
               (2)  a person who holds a certificate issued pursuant
  to enrollment in an approved alternative certification program
  under Section 21.049 but who has not completed all program and other
  certification requirements;
               (3)  a person who holds a school district teaching
  permit issued under Section 21.055; or
               (4)  a person employed under a waiver granted by the
  commissioner under Section 7.056.
         (c-4)  The board of trustees of a school district may adopt a
  minimum salary schedule based on performance tiers, as determined
  by teacher appraisal and performance criteria under Sections 21.351
  and 21.352, instead of years of experience.  A minimum salary
  schedule adopted under this subsection:
               (1)  is not required to have a salary factor based on
  minimum years of experience for a performance tier;
               (2)  must include:
                     (A)  a minimum salary for each performance tier;
  and
                     (B)  at least one performance tier with a minimum
  salary of not less than the minimum salary under the salary schedule
  specified by Subsection (c-2) for a classroom teacher with 20 or
  more years of experience; and
               (3)  may not set a minimum salary at an amount that is
  less than the minimum salary under the salary schedule specified by
  Subsection (c-2) for a classroom teacher with zero years of
  experience.
         SECTION 2.008.  Chapter 21, Education Code, is amended by
  adding Subchapter P to read as follows:
  SUBCHAPTER P.  RECOGNIZED, EXEMPLARY, AND MASTER TEACHER
  DESIGNATIONS
         Sec. 21.751.  DEFINITION. In this subchapter, "classroom
  teacher" includes an individual who:
               (1)  is a teacher of record who teaches at least half
  the average number of students for a teaching assignment at the
  school campus at which the teacher is employed; and
               (2)  satisfies the amount of teaching time requirement
  in the definition of a classroom teacher under Section 5.001 by
  providing educator leadership, including collaborating with,
  mentoring, or supporting other teachers.
         Sec. 21.752.  RECOGNIZED, EXEMPLARY, AND MASTER TEACHER
  DESIGNATIONS.  (a)  To recognize the performance of teachers in this
  state, the commissioner shall:
               (1)  establish an approval process for school districts
  and open-enrollment charter schools to designate a teacher as a
  recognized, exemplary, or master teacher and include the
  designation on the teacher's teaching certificate;
               (2)  develop and provide technical assistance for
  school districts and open-enrollment charter schools in making
  teacher designations, including:
                     (A)  methods to involve staff in locally
  developing the process for designating teachers under this
  subchapter; and
                     (B)  assistance focusing on problems faced by
  rural school districts; and
               (3)  subject to Subsection (b), authorize school
  districts and open-enrollment charter schools to make teacher
  designations for a five-year period, provided that the district's
  teacher designation system meets the requirements under Section
  21.754.
         (b)  The commissioner shall use an institution of higher
  education to verify that the appraisals of a representative sample
  of classroom teachers meet the requirements for teacher
  designations under this subchapter. Verification may include
  on-site classroom observations or observations by video or audio
  recording of classroom sessions. 
         Sec. 21.753.  ELIGIBILITY CRITERIA FOR TEACHER DESIGNATION.
  (a)  To be eligible for a teacher designation under this subchapter,
  a classroom teacher must:
               (1)  hold an eligible teaching certificate issued under
  Subchapter B; and
               (2)  satisfy any additional requirements adopted by the
  school district or open-enrollment charter school at which the
  teacher is employed.
         (b)  A school district or open-enrollment charter school may
  designate a classroom teacher as recognized if the classroom
  teacher:
               (1)  holds a National Board Certification issued by the
  National Board for Professional Teaching Standards; and
               (2)  meets the other requirements of this section.
         (c)  Except as provided by Subsection (d), the commissioner
  may approve a school district or open-enrollment charter school to
  designate a teacher under this subchapter if the district's or
  school's designation system under Section 21.754 determines that
  among teachers in the state in similar teaching assignments, the
  teacher is:
               (1)  for a recognized teacher, in the top 33 percent in
  teaching performance;
               (2)  for an exemplary teacher, in the top 20 percent in
  teaching performance; or
               (3)  for a master teacher, in the top 5 percent of
  teaching performance.
         (d)  The commissioner may raise the percentages required
  under Subsection (c) to ensure consistency of teacher performance
  standards over multiple school years as statewide performance
  improves, including for the purpose of teacher designation
  renewals.
         Sec. 21.754.  DISTRICT TEACHER DESIGNATION SYSTEMS. (a)  A
  district's teacher designation system must incorporate:  
               (1)  an educator appraisal system that complies with
  Section 21.351 or 21.352, including incorporating student
  performance, which may be measured by student performance over
  multiple school years;
               (2)  student perception surveys for the third grade
  level and higher;
               (3)  educator leadership, including collaborating
  with, mentoring, or supporting other teachers;
               (4)  reliable observation-based appraisal components,
  including the use of independent observers and processes to ensure
  inter-rater reliability of observers; and
               (5)  reliable underlying student assessments used to
  evaluate student performance, including test security protocols
  and defined testing windows.
         (a-1)  A school district's or open-enrollment charter
  school's teacher designation system is not required to incorporate
  the surveys required under Subsection (a)(2) until the 2022-2023
  school year. This subsection expires September 1, 2023.
         (b)  The commissioner may not authorize a school district or
  open-enrollment charter school to make teacher designations under
  this subchapter until the district's teacher designation system has
  evaluated classroom teachers in compliance with Subsection (a)(4).
         (c)  The commissioner may develop an auditing process for
  district teacher designation systems to maintain quality and ensure
  compliance. The commissioner may, as necessary:
               (1)  revoke the commissioner's approval of a district's
  designation system;
               (2)  require modifications to a district's designation
  system to retain the commissioner's approval;
               (3)  suspend eligibility for funding for a district's
  noncompliance with an audit; or
               (4)  recover funds under Section 48.272 from a district
  that has a designation system that is out of compliance or for which
  the commissioner's approval has been revoked.
         (d)  The commissioner may adopt necessary reporting
  processes and timelines for the auditing process under Subsection
  (c). 
         Sec. 21.755.  VALIDITY AND EXPIRATION OF TEACHER
  DESIGNATION. (a)  A teacher designation under this subchapter:
               (1)  is valid until the teacher designation expires
  regardless of whether the teacher:
                     (A)  changes teaching assignment;
                     (B)  transfers school campuses; or
                     (C)  is employed by another school district or
  open-enrollment charter school; and
               (2)  expires at the end of the school year during which
  the fifth anniversary of the date on which the teacher receives the
  designation occurs.
         (b)  A teacher has no vested property right in a teacher
  designation assigned to the teacher under this subchapter.
         (c)  A teacher designation issued under this subchapter is
  void on the determination that the designation was issued
  improperly.  Subchapters C through H, Chapter 2001, Government
  Code, do not apply to the voiding of a teacher designation under
  this subsection.
         (d)  The State Board for Educator Certification may revoke or
  suspend a certificate holder's teacher designation issued under
  this subchapter.
         Sec. 21.756.  MULTIPLE DESIGNATIONS PROHIBITED. A teacher
  may receive only one teacher designation under this subchapter at
  any time. If a teacher qualifies for:
               (1)  both a recognized and exemplary teacher
  designation, the teacher receives the exemplary designation; and
               (2)  either a recognized or exemplary designation and a
  master designation, the teacher receives a master designation.
         Sec. 21.757.  INFORMATION RELATING TO TEACHER AND STUDENT
  PERFORMANCE. (a) The agency, or an entity the agency contracts
  with to implement this subchapter, may access information required
  to verify an eligibility determination under this subchapter,
  including information from the school district or open-enrollment
  charter school at which the teacher is or was employed relating to
  the performance of the teacher's current or previous students. 
         (b)  The agency shall collect information necessary to
  implement this subchapter, which may include student performance
  information for a sample of students across the state and
  information regarding educator appraisals.
         (c)  A school district or open-enrollment charter school
  shall provide any information required under this subchapter.
         (d)  Information otherwise confidential remains
  confidential and is not subject to Chapter 552, Government Code.
         Sec. 21.758.  FEES. (a) The commissioner may adopt fees for
  the authorization of school districts and open-enrollment charter
  schools to make teacher designations under this subchapter.
         (b)  A fee adopted by the agency under this subchapter is not
  subject to Sections 2001.0045 and 2001.0221, Government Code.
         Sec. 21.759.  STUDENT PERFORMANCE STUDY. (a) The
  commissioner shall periodically conduct a study using an external
  organization to determine the impact of the teacher designations
  issued under this subchapter on student performance.
         (b)  The commissioner shall make recommendations as
  necessary to the governor and the legislature to improve the
  quality of and impact on student performance of teacher
  designations issued under this subchapter.
         Sec. 21.760.  ADVISORY COMMITTEE OR PANEL. (a)  The
  commissioner may appoint a committee or panel to advise, make
  recommendations, or make determinations relating to any duties
  assigned to the commissioner under this subchapter.
         (b)  A committee or panel appointed under this section is not
  subject to Chapter 2110, Government Code.
         Sec. 21.761.  RULES; FINALITY OF DECISIONS. (a) The
  commissioner may adopt rules to implement this subchapter.
         (b)  A decision made by the commissioner under this
  subchapter is final and may not be appealed.
         SECTION 2.009.  Section 25.085, Education Code, is amended
  by adding Subsection (i) to read as follows:
         (i)  Notwithstanding any other provision of this section, a
  student enrolled in a school district is not required to attend
  school for any additional instructional days described by Section
  25.0841.
         SECTION 2.010.  Section 25.112, Education Code, is amended
  by adding Subsection (g) to read as follows:
         (g)  The limit in Subsection (a) does not apply to a class
  taught by a teacher who has been issued a recognized, exemplary, or
  master teacher designation under Subchapter P, Chapter 21.
         SECTION 2.011.  Section 28.006, Education Code, is amended
  by amending Subsections (b), (c), (d), (f), and (i) and adding
  Subsections (b-1), (c-2), (c-3), and (l) to read as follows:
         (b)  The commissioner shall adopt a list of reading
  instruments that a school district may use to diagnose student
  reading development and comprehension.  For use in diagnosing the
  reading development and comprehension of kindergarten students,
  the commissioner shall adopt a [include on the commissioner's list
  at least two] multidimensional assessment tool that includes
  [tools.   A multidimensional assessment tool on the commissioner's
  list must either include] a reading instrument and tests [test] at
  least three developmental skills, including literacy[, or test at
  least two developmental skills, other than literacy, and be
  administered in conjunction with a separate reading instrument that
  is on a list adopted under this subsection].  A multidimensional
  assessment tool administered as provided by this subsection is
  considered to be a reading instrument for purposes of this section.  
  A district-level committee established under Subchapter F, Chapter
  11, may adopt a list of reading instruments for use in the district
  in a grade level other than kindergarten in addition to the reading
  instruments on the commissioner's list.  Each reading instrument
  adopted by the commissioner or a district-level committee must be
  based on scientific research concerning reading skills development
  and reading comprehension.  A list of reading instruments adopted
  under this subsection must provide for diagnosing the reading
  development and comprehension of students participating in a
  program under Subchapter B, Chapter 29.
         (b-1)  The commissioner may approve an alternative reading
  instrument for use in diagnosing the reading development and
  comprehension of kindergarten students that complies with the
  requirements under Subsection (b).
         (c)  Each school district shall administer, at the
  [kindergarten and] first and second grade levels, a reading
  instrument on the list adopted by the commissioner or by the
  district-level committee.  The district shall administer the
  reading instrument in accordance with the commissioner's
  recommendations under Subsection (a)(1).
         (c-2)  Each school district shall administer at the
  kindergarten level a reading instrument adopted by the commissioner
  under Subsection (b) or approved by the commissioner under
  Subsection (b-1).  The district shall administer the reading
  instrument in accordance with the commissioner's recommendations
  under Subsection (a)(1).
         (c-3)  The commissioner by rule shall determine the
  performance on the reading instrument adopted under Subsection (b)
  that indicates kindergarten readiness.
         (d)  The superintendent of each school district shall:
               (1)  report to the commissioner and the board of
  trustees of the district the results of the reading instruments;
               (2)  not later than the 30th day after the date on which
  a reading instrument was administered report, in writing, to a
  student's parent or guardian the student's results on the [reading]
  instrument; and
               (3)  using the school readiness certification system
  provided to the school district in accordance with Section
  29.161(e), report electronically each student's raw score on the
  reading instrument to the agency for use in the school readiness
  certification system.
         (f)  This section may be implemented only if funds are
  appropriated for administering the reading instruments or if the
  reading instrument to be administered is provided to school
  districts at no cost to the districts.  Funds, other than local
  funds, may be used to pay the cost of administering a reading
  instrument only if the instrument is on the list adopted by the
  commissioner.
         (i)  The commissioner shall certify, not later than July 1 of
  each school year or as soon as practicable thereafter, whether
  sufficient funds have been appropriated statewide for the purposes
  of this section or whether the applicable reading instruments have
  been provided to school districts at no cost to the districts.  A
  determination by the commissioner is final and may not be appealed.
  For purposes of certification, the commissioner may not consider
  Foundation School Program funds.
         (l)  The commissioner may adopt rules as necessary to
  implement this section. Section 2001.0045, Government Code, does
  not apply to rules adopted under this subsection.
         SECTION 2.012.  Subchapter D, Chapter 29, Education Code, is
  amended by adding Section 29.124 to read as follows:
         Sec. 29.124.  CERTIFICATION REQUIRED. (a)  Each school
  district shall annually certify to the commissioner that the
  district has established a program for gifted and talented students
  as required by this subchapter.
         (b)  If the commissioner determines that a school district
  has failed to comply with Subsection (a) for a school year, the
  commissioner shall reduce the total amount of funding to which the
  district is entitled under Chapter 48 for that school year by an
  amount equal to the basic allotment multiplied by the product of:
               (1)  0.12; and
               (2)  an amount equal to five percent of the students in
  average daily attendance in the district.
         (c)  The commissioner may restore to a school district all or
  part of the funding withheld from the district's entitlement under
  Subsection (b) if during the school year the district complies with
  Subsection (a).
         SECTION 2.013.  Section 29.153, Education Code, is amended
  by amending Subsections (c) and (d) and adding Subsections (c-1),
  (d-1), and (d-2) to read as follows:
         (c)  A prekindergarten class under this section may [shall]
  be operated on a half-day basis for children under four years of age
  and shall be operated on a full-day basis for children who are at
  least four years of age.  A district is not required to provide
  transportation for a prekindergarten class, but transportation, if
  provided, is included for funding purposes as part of the regular
  transportation system.
         (c-1)  A prekindergarten class under this section for
  children who are least four years of age must comply with the
  program standards required for high quality prekindergarten
  programs under Subchapter E-1.
         (d)  Subject to Subsections (d-1) and (d-2), on [On]
  application of a district, the commissioner may exempt a district
  from the application of all or any part of this section, including
  all or any part of Subchapter E-1 for a prekindergarten class
  described by Subsection (c-1), if the commissioner determines that:
               (1)  the district would be required to construct
  classroom facilities in order to provide prekindergarten classes;
  or
               (2)  implementing any part of this section would result
  in fewer eligible children being enrolled in a prekindergarten
  class under this section.
         (d-1)  A district may not receive an exemption under
  Subsection (d) unless the district has solicited and considered at
  a public meeting proposals for partnerships with public or private
  entities regarding prekindergarten classes required under this
  section. A decision of the board of trustees regarding a
  partnership described by this subsection is final.
         (d-2)  An exemption under Subsection (d) may not be granted
  for a period longer than three school years and may be renewed only
  once.
         SECTION 2.014.  Section 29.1531(a), Education Code, is
  amended to read as follows:
         (a)  A school district may offer on a tuition basis or use
  district funds to provide:
               (1)  an additional half-day of prekindergarten classes
  to children who are eligible for classes under Section 29.153 and
  are under four years of age; and
               (2)  half-day and full-day prekindergarten classes to
  children not eligible for classes under Section 29.153.
         SECTION 2.015.  Section 29.1532(c), Education Code, is
  amended to read as follows:
         (c)  A school district that offers prekindergarten classes,
  including a high quality prekindergarten program class under
  Subchapter E-1, shall include the following information in the
  district's Public Education Information Management System (PEIMS)
  report:
               (1)  demographic information, as determined by the
  commissioner, on students enrolled in district and campus
  prekindergarten classes, including the number of students who are
  eligible for classes under Section 29.153;
               (2)  the numbers of half-day and full-day
  prekindergarten classes offered by the district and campus;
               (3)  the number of half-day prekindergarten classes for
  which the district has received an exemption from full-day
  operation under Section 29.153(d);
               (4)  the sources of funding for the prekindergarten
  classes;
               (5)  [(4)]  the class size and ratio of instructional
  staff to students for each prekindergarten program class offered by
  the district and campus;
               (6)  [(5)]  if the district elects to administer an
  assessment instrument under Section 29.169 to students enrolled in
  district and campus prekindergarten program classes, a description
  and the results of each type of assessment instrument; and
               (7)  [(6)]  curricula used in the district's
  prekindergarten program classes.
         SECTION 2.016.  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 reading 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
                     (C)  the type of prekindergarten the student
  attended, if applicable; and
               (8)  the information described by Subdivisions (6) and
  (7) disaggregated by whether the student is educationally
  disadvantaged.
         SECTION 2.017.  Section 29.162, Education Code, is amended
  to read as follows:
         Sec. 29.162.  RULES [DETERMINATION OF FULL-DAY AND
  HALF-DAY]. (a) The commissioner may adopt rules for this
  subchapter, including rules establishing full-day and half-day
  minutes of operation requirements as provided by Section 25.081.
         (b)  Section 2001.0045, Government Code, does not apply to
  rules adopted under this section.
         SECTION 2.018.  The heading to Subchapter E-1, Chapter 29,
  Education Code, is amended to read as follows:
  SUBCHAPTER E-1. HIGH QUALITY PREKINDERGARTEN [GRANT] PROGRAM
  REQUIREMENTS
         SECTION 2.019.  Section 29.164, Education Code, is amended
  to read as follows:
         Sec. 29.164.  DEFINITION. In this subchapter, "program"
  means a high quality prekindergarten [grant] program required under
  Section 29.153(c-1) to be provided free of tuition or fees in
  accordance with this subchapter.
         SECTION 2.020.  Section 29.167(a), Education Code, is
  amended to read as follows:
         (a)  A school district shall select and implement a
  curriculum for a prekindergarten [grant] program [under this
  subchapter] that:
               (1)  includes the prekindergarten guidelines
  established by the agency;
               (2)  measures the progress of students in meeting the
  recommended learning outcomes; and
               (3)  does not use national curriculum standards
  developed by the Common Core State Standards Initiative.
         SECTION 2.021.  Section 29.170(a), Education Code, is
  amended to read as follows:
         (a)  The commissioner shall evaluate the use and
  effectiveness of prekindergarten funding [provided under this
  subchapter] in improving student learning. The commissioner shall
  identify effective instruction strategies implemented by school
  districts under this subchapter.
         SECTION 2.022.  Section 29.171(a), Education Code, is
  amended to read as follows:
         (a)  A school district that offers a prekindergarten
  [participating in the grant] program under this subchapter may
  enter into a contract with an eligible private provider to provide
  services or equipment for the program.
         SECTION 2.023.  Section 29.172, Education Code, is amended
  to read as follows:
         Sec. 29.172.  RULES. (a) The commissioner may adopt rules
  necessary to implement this subchapter.
         (b)  Section 2001.0045, Government Code, does not apply to
  rules adopted under this section.
         SECTION 2.024.  Section 29.190(a), Education Code, is
  amended to read as follows:
         (a)  A student is entitled to a subsidy under this section
  if:
               (1)  the student:
                     (A)  successfully completes the career and
  technology program of a school district in which the student
  receives training and instruction for employment; or
                     (B)  is enrolled in a special education program
  under Subchapter A; and
               (2)  the student passes a certification examination to
  qualify for a license or certificate that is an industry
  certification for purposes of Section 39.053(c)(1)(B)(v).
         SECTION 2.025.  Subchapter Z, Chapter 29, Education Code, is
  amended by adding Sections 29.924 and 29.925 to read as follows:
         Sec. 29.924.  BLENDED LEARNING GRANT PROGRAM. (a) In this
  section, "blended learning" means an instructional delivery method
  that combines classroom and online instruction.
         (b)  From funds appropriated or available for purposes of
  this section, the commissioner shall establish a grant program to
  assist school districts in developing and implementing effective
  blended learning models. In awarding grants under the program, the
  commissioner shall give priority to school districts that have the
  highest enrollment of students who are educationally
  disadvantaged.
         (c)  A school district that receives a grant under this
  section must:
               (1)  develop a plan to implement a blended learning
  model that meets the requirements under Subsection (d);
               (2)  provide training to educators on effective blended
  learning practices using a program approved by the commissioner for
  that purpose; 
               (3)  after completion of the training under Subdivision
  (2):
                     (A)  certify to the agency that the blended
  learning model has been implemented; and
                     (B)  immediately following the fourth school year
  of implementation, submit to the agency a report on student
  outcomes under the blended learning model; and
               (4)  provide any other information to the agency as
  necessary for the implementation of this section.
         (d)  A plan to implement a blended learning model developed
  under Subsection (c) must:
               (1)  during the first year require implementation of
  the model across an entire grade level at a campus and permit
  subsequent expansion of the model to additional grade levels at the
  campus or, if the campus has achieved full implementation of the
  model across all grade levels, to additional campuses in a manner
  that provides students a consistent learning experience;
               (2)  require classroom teachers to personalize
  instruction for all students in a grade level using the blended
  learning model, including by:
                     (A)  using curricula and assessments that allow
  each student to progress at the student's pace based on
  demonstrated proficiency;
                     (B)  providing learning opportunities that give
  students, in collaboration with the teacher, control over the time,
  place, path, and pace of the student's learning; and
                     (C)  allocating a certain amount of instructional
  preparation time to collaborating with students and developing
  blended learning lesson plans and activities driven by individual
  student needs;
               (3)  provide educators with professional development
  opportunities regarding blended learning; and
               (4)  require the use of a proficiency-based assessment
  to inform instruction and provide classroom teachers with relevant
  information regarding strengths and gaps in a student's learning
  and proficiency in the essential knowledge and skills.
         (e)  Funds awarded under the grant program may be used only
  to implement a program under this section and satisfy the
  requirements under Subsection (c).
         (f)  A school district may receive a grant under this section
  for not more than four consecutive school years.
         (g)  The commissioner shall adopt rules as necessary to
  implement this section, including rules establishing an
  application and selection process for awarding grants under this
  section and a list of programs that may be used for training under
  Subsection (c)(2). In adopting rules under this subsection, the
  commissioner may not impose any requirements on a school district's
  plan to implement a blended learning model not listed under
  Subsection (d).
         (h)  A decision of the commissioner under this section is
  final and may not be appealed.
         Sec. 29.925.  ENHANCEMENT SERVICES GRANT PROGRAM. (a)  In
  this section:
               (1)  "Committee" means an admission, review, and
  dismissal committee or a team established for a student under
  Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794).
               (2)  "Parent" means a resident of this state who is a
  natural or adoptive parent, managing or possessory conservator,
  legal guardian, custodian, or other person with legal authority to
  act on behalf of a child.
               (3)  "Program" means the grant program established
  under this section.
               (4)  "Program participant" means a student and a parent
  of a student who has been accepted into the program.
         (b)  From funds appropriated or available for the purpose,
  including federal funding, the commissioner shall establish and
  administer a grant program to provide funding to school districts
  for eligible students to obtain enhancement services that:
               (1)  supplement the student's public education;
               (2)  promote and improve the student's overall academic
  performance; and
               (3)  exceed the level of services that the student's
  committee has determined to be necessary for the student to receive
  a free appropriate public education.
         (c)  A student is eligible to participate in the program if:
               (1)  the student is enrolled in a school district and
  was enrolled in that district during the entire preceding school
  year;
               (2)  the student has one or more of the following
  disabilities:
                     (A)  dyslexia;
                     (B)  autism;
                     (C)  speech disability; or
                     (D)  learning disability; and
               (3)  for one or more disabilities listed in Subdivision
  (2):
                     (A)  an individualized education program has been
  developed for the student under Section 29.005; or
                     (B)  the student is covered by Section 504,
  Rehabilitation Act of 1973 (29 U.S.C. Section 794).
         (d)  On or before the date established by commissioner rule,
  each school district annually shall provide information regarding
  the program to a parent of each student enrolled in the district who
  may be eligible to participate in the program.
         (e)  On or before the date established by commissioner rule,
  a parent of an eligible student may apply on behalf of the student
  to the agency for participation in the program for the school year
  for which the application is made. The school district in which the
  student is enrolled shall assist the parent in making the
  application.
         (f)  In accepting students into the program, the
  commissioner shall:
               (1)  give priority to students who are educationally
  disadvantaged; and
               (2)  to the greatest extent possible, ensure that the
  accepted students reflect the diversity of the state.
         (g)  Funds received under the program may be used only for
  the following services or goods provided to a program participant
  by an education service provider or vendor of educational products
  approved by the commissioner under Subsection (j):
               (1)  costs of transportation for the student to receive
  educational support services;
               (2)  the cost of instructional materials, as that term
  is defined by Section 31.002;
               (3)  fees for educational therapies or support services
  provided by a practitioner or provider; and
               (4)  costs of assistive technology.
         (h)  The parent of a student participating in the program, in
  consultation with the student's committee, shall select the
  services or goods allowed under Subsection (g) to be provided to the
  student under the program and the appropriate education service
  provider or vendor of educational products to provide those
  services or goods.  On the parent's selection, the school district
  at which the parent's student is enrolled shall contract with the
  selected education service provider or vendor of educational
  products to provide the selected services or goods to the student. 
         (i)  An education service provider or vendor of educational
  products may not solicit or provide incentives to any program
  participant to select the provider or vendor to provide services or
  goods using money distributed under the program.
         (j)  An education service provider or vendor of educational
  products must apply to and be approved by the commissioner to
  receive money distributed under the program.  To be eligible for
  approval, an education service provider or vendor of educational
  products must:
               (1)  have operated for at least three consecutive
  years, including at least one year in this state;
               (2)  provide to the commissioner:
                     (A)  a current financial audit from a certified
  public accountant;
                     (B)  documentation indicating that the provider
  or vendor has completed a national criminal history record
  information review within a period established by commissioner
  rule; and
                     (C)  a list of any national or state licenses,
  certifications, or credentials possessed by the provider or vendor;
  and
               (3)  agree not to use the national curriculum standards
  developed by the Common Core State Standards Initiative.
         (k)  A parent of a student participating in the program, a
  member of the student's committee, or an education service provider
  or vendor of educational products may appeal the commissioner's
  rejection of an application submitted under Subsection (j) in
  accordance with rules established by the commissioner.
         (l)  At least once each semester, an education service
  provider or vendor of educational products selected to provide
  services or goods to a student participating in the program shall
  meet with the student's parent and the members of the student's
  committee at a time and place determined by the school district to
  discuss the student's progress and to evaluate the continued use of
  the provider or vendor.
         (m)  The commissioner annually shall review each approved
  education service provider or vendor of educational products and,
  as appropriate, renew or revoke that approval.
         (n)  A student's participation in the program does not affect
  the student's rights or a school district's obligations with
  respect to the student under the Individuals with Disabilities
  Education Act (20 U.S.C. Section 1400 et seq.); Section 504,
  Rehabilitation Act of 1973 (29 U.S.C. Section 794); or the
  Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et
  seq.).
         (o)  Each school district in which a participating student is
  enrolled shall submit an annual report to the agency on the use of
  grant funds awarded under this section.
         (o-1)  Not later than December 30, 2020, the agency shall
  review the performance of the program and submit to the legislature
  a report on the agency's conclusions.  In conducting the review, the
  agency shall solicit input from program participants and
  participating school districts.  This subsection expires September
  1, 2021.
         (p)  The commissioner shall adopt rules as necessary to
  implement this section.
         SECTION 2.026.  Sections 39.0261(a), (e), and (f), Education
  Code, are amended to read as follows:
         (a)  In addition to the assessment instruments otherwise
  authorized or required by this subchapter:
               (1)  each school year and at state cost, a school
  district may administer to students in the spring of the eighth
  grade an established, valid, reliable, and nationally
  norm-referenced preliminary college preparation assessment
  instrument for the purpose of diagnosing the academic strengths and
  deficiencies of students before entrance into high school;
               (2)  each school year and at state cost, a school
  district may administer to students in the 10th grade an
  established, valid, reliable, and nationally norm-referenced
  preliminary college preparation assessment instrument for the
  purpose of measuring a student's progress toward readiness for
  college and the workplace; and
               (3)  high school students in the spring of the 11th
  grade or during the 12th grade may select and take once, at state
  cost:
                     (A)  [,] one of the valid, reliable, and
  nationally norm-referenced assessment instruments used by colleges
  and universities as part of their undergraduate admissions
  processes; or
                     (B)  the assessment instrument designated by the
  Texas Higher Education Coordinating Board under Section 51.334.
         (e)  Subsection (a)(3) does not prohibit a high school
  student [in the spring of the 11th grade or during the 12th grade]
  from selecting and taking, at the student's own expense, an
  assessment instrument described by that subdivision [one of the
  valid, reliable, and nationally norm-referenced assessment
  instruments used by colleges and universities as part of their
  undergraduate admissions processes more than once].
         (f)  The provisions of this section regarding assessment
  instruments administered under Subsection (a)(1) or (2) apply only
  if the legislature appropriates funds for those purposes [of this
  section].
         SECTION 2.027.  Section 39.306(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)  information indicating the district's
  accreditation status and identifying each district campus awarded a
  distinction designation under Subchapter G or considered an
  unacceptable campus under Chapter 39A;
               (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;
               (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]
               (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)  the progress of the district and each campus in the
  district toward meeting three- and five-year goals developed by the
  district to achieve the state's public education goals under
  Section 39.335(a)(1).
         SECTION 2.028.  Subchapter K, Chapter 39, Education Code, is
  amended by adding Section 39.335 to read as follows:
         Sec. 39.335.  EDUCATIONAL PROGRESS REPORT. (a) Not later
  than December 1 of each year, the agency shall produce a report on
  progress in the preceding school year toward meeting the state's
  public education goals. The report must:
               (1)  include:
                     (A)  the percentage of students who performed
  satisfactorily on an assessment instrument administered under
  Section 39.023; 
                     (B)  the percentage of students who graduated high
  school without the need for remediation, based on meeting college,
  career, or military readiness standards under Section
  39.053(c)(1)(B); and
                     (C)  any other information indicating progress
  toward increasing the percentage of students described by
  Paragraphs (A) and (B); and
               (2)  be disaggregated by:
                     (A)  each student group evaluated under the
  closing the gaps domain under Section 39.053(c)(3);
                     (B)  school district or open-enrollment charter
  school; and 
                     (C)  high school campus.
         (b)  The agency may provide the report under Subsection (a)
  in writing or post the report on the agency's Internet website. The
  report may be combined with any other report produced by the agency.
  ARTICLE 3. REPEALER
         SECTION 3.001.  (a) The following provisions of the
  Education Code are repealed:
               (1)  Section 21.0481;
               (2)  Section 21.0482;
               (3)  Section 21.0483;
               (4)  Section 21.0484;
               (5)  Section 21.357;
               (6)  Sections 21.402(f) and (h);
               (7)  Section 21.410;
               (8)  Section 21.411;
               (9)  Section 21.412;
               (10)  Section 21.413;
               (11)  Sections 28.006(d-1) and (e);
               (12)  Section 29.097;
               (13)  Section 29.098;
               (14)  Section 29.165;
               (15)  Section 29.166;
               (16)  Section 39.233;
               (17)  Section 39.234;
               (18)  the headings to Chapters 41 and 42;
               (19)  the heading to Subchapter A, Chapter 41;
               (20)  the heading to Section 41.002;
               (21)  Sections 41.002(a) and (b);
               (22)  Section 41.0041;
               (23)  the heading to Subchapter D, Chapter 41;
               (24)  Section 41.0931;
               (25)  Section 41.098;
               (26)  the heading to Subchapter E, Chapter 41;
               (27)  the heading to Subchapter A, Chapter 42;
               (28)  the heading to Section 42.006;
               (29)  Section 42.007;
               (30)  the heading to Subchapter B, Chapter 42;
               (31)  Section 42.102;
               (32)  Section 42.103;
               (33)  Section 42.104;
               (34)  the heading to Subchapter C, Chapter 42;
               (35)  Section 42.1541;
               (36)  Section 42.156;
               (37)  Section 42.160;
               (38)  the heading to Subchapter E, Chapter 42;
               (39)  Section 42.2513;
               (40)  Section 42.2517;
               (41)  Section 42.2518; and
               (42)  the headings to Subchapters F and G, Chapter 42.
         (b)  Effective September 1, 2024, Sections 48.257(g), (h),
  and (i), Education Code, as transferred, redesignated, and amended
  by this Act, are repealed.
         (c)  Sections 26.08(o) and (p), Tax Code, are repealed.
  ARTICLE 4. TRANSITION
         SECTION 4.001.  The State Board for Educator Certification
  may not issue a new or renew a master teacher certificate issued
  under Section 21.0481, 21.0482, 21.0483, or 21.0484, Education
  Code, on or after the effective date of this Act.
         SECTION 4.002.  (a) Except as provided by Subsection (b) of
  this section, Article 2 of this Act applies beginning with the
  2019-2020 school year.
         (b)  Section 28.006, Education Code, as amended by this Act,
  applies beginning with the 2020-2021 school year.
         SECTION 4.003.  Section 26.08, Tax Code, as amended by this
  Act, applies beginning with the 2019 tax year.
         SECTION 4.004.  To the extent of any conflict, this Act
  prevails over another Act of the 86th Legislature, Regular Session,
  2019, relating to nonsubstantive additions to and corrections in
  enacted codes.
  ARTICLE 5. EFFECTIVE DATE
         SECTION 5.001.  (a) Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2019.
         (b)  Section 48.106(b), Education Code, as transferred,
  redesignated, and amended by this Act, takes effect September 1,
  2020.