By: Taylor S.B. No. 4
 
 
 
   
 
 
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 5.001(4), Education Code, is amended
  to read as follows:
               (4)  "Educationally disadvantaged" means:
                     (A)  eligible to participate in the national free
  or reduced-price lunch program established under 42 U.S.C. Section
  1751 et seq.; or
                     (B)  economically disadvantaged in any manner
  that may reasonably impact educational achievement, as determined
  by the commissioner.
         SECTION 1.002.  Section 41.002(a), Education Code, is
  amended to read as follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101(a) or (b), for the district's maintenance and
  operations tax effort equal to or less than the 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);
               (2)  the wealth per student specified under Subdivision
  (1) multiplied by _____ [that generates the amount of maintenance
  and operations tax revenue per weighted student available to the
  Austin Independent School District, as determined by the
  commissioner in cooperation with the Legislative Budget Board], for
  the first six cents by which the district's maintenance and
  operations tax rate exceeds the 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), subject to Section 41.093(b-1); or
               (3)  the wealth per student specified under Subdivision
  (1) multiplied by _____ [$319,500], for the district's maintenance
  and operations tax effort that exceeds the amount of tax effort
  described by Subdivision (2).
         SECTION 1.003.  Section 41.004(a), Education Code, is
  amended to read as follows:
         (a)  Not later than July 15 of each year, using the estimates
  [estimate] of enrollment and taxable property value under Section
  42.254, the commissioner shall review the wealth per student of
  school districts in the state and shall notify:
               (1)  each district with 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.
         SECTION 1.004.  Section 41.093(b-1), Education Code, is
  amended to read as follows:
         (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 product of the amount of
  revenue per weighted student per cent of tax effort available to a
  school 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 42.101(a) or (b) multiplied by
  _____ [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).
         SECTION 1.005.  Section 42.101(a), Education Code, is
  amended to read as follows:
         (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 $ ______ [$4,765] or the amount
  that results from the following formula:
  A = $ ______ [$4,765] X (DCR/MCR)
  where:
         "A" is the allotment to which a district is entitled;
         "DCR" is the district's compressed tax rate, 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 42.2516, multiplied by $1.50.
         SECTION 1.006.  Section 42.152(a), Education Code, is
  amended to read as follows:
         (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], 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. 
         SECTION 1.007.  Section 42.153(a), Education Code, is
  amended to read as follows:
         (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)  0.1; or
               (2)  _____  if the student is in a bilingual education
  program using a dual language immersion/one-way or two-way program
  model.
         SECTION 1.008.  Sections 42.154(a) and (c), Education Code,
  are amended to read as follows:
         (a)  For each full-time equivalent student in average daily
  attendance in an approved career and technology education program
  in grades 8 [nine] through 12 or in career and technology education
  programs for students with disabilities in grades 7 [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.
         (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 8 [nine] through 12 or career and technology
  education programs for students with disabilities in grades 7
  [seven] through 12 under Sections 29.182, 29.183, and 29.184.
         SECTION 1.009.  Section 42.155, Education Code, is amended
  by amending Subsections (c), (g), and (i) and adding Subsection (m)
  to read as follows:
         (c)  Each district or county operating a regular
  transportation system is entitled to a transportation [an]
  allotment based on the number of daily miles of approved route
  traveled by the system in providing transportation for [cost per]
  regular eligible students of the district or county multiplied by
  _____ cents per mile of approved route or a greater amount per mile
  of approved route set by appropriation [student 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.]
         (g)  A school district or county that provides special
  transportation services for eligible special education students is
  entitled to a state allocation paid on the basis of a previous
  year's miles of approved route traveled [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.
         (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 of approved route to which the county transportation system is
  entitled.
         (m)  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. The commissioner may adopt rules
  necessary to implement this subsection.
         SECTION 1.010.  Subchapter C, Chapter 42, Education Code, is
  amended by adding Section 42.1561 to read as follows:
         Sec. 42.1561.  ALLOTMENT FOR STUDENT WITH DYSLEXIA. (a)
  Subject to Subsection (b), for each student that a school district
  serves who has been identified as having dyslexia, the district is
  entitled to an annual allotment equal to the district's basic
  allotment multiplied by _____.
         (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,
  to use modifications in the classroom and accommodations in the
  administration of assessment instruments.
         (c)  Funds allotted under this section must be used in
  providing services to students with dyslexia.
         (d)  A school district may receive funding for a student
  under this section and Section 42.151 if the student satisfies the
  requirements of both sections.
         SECTION 1.011.  Section 42.158(d), Education Code, is
  amended to read as follows:
         (d)  Subject to Subsection (d-1), the amount appropriated
  for allotments under this section may not exceed $ ______ [$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 42.253(h).
         SECTION 1.012.  Subchapter C, Chapter 42, Education Code, is
  amended by adding Section 42.1581 to read as follows:
         Sec. 42.1581.  STUDY ON NEW INSTRUCTIONAL FACILITY
  ALLOTMENT. (a) The agency shall conduct a study on the amount of
  funding necessary to fully fund the new instructional facility
  allotment under Section 42.158, taking into account estimated
  growth in student enrollment.
         (b)  Not later than September 1, 2020, the agency shall
  submit to the legislature a report on the results of the study and
  any recommendations for legislative or other action.
         (c)  This section expires September 1, 2021.
         SECTION 1.013.  Subchapter C, Chapter 42, Education Code, is
  amended by adding Sections 42.162, 42.163, and 42.164 to read as
  follows:
         Sec. 42.162.  THIRD GRADE READING ALLOTMENT. (a) For each
  student who is educationally disadvantaged and performed
  satisfactorily during the preceding school year on a third grade
  reading multidimensional assessment on the list adopted by the
  commissioner under Subsection (b), a school district is entitled to
  an annual allotment equal to the district's basic allotment
  multiplied by ______.
         (b)  The commissioner shall:
               (1)  adopt a list of at least two third grade reading
  multidimensional assessments approved for purposes of this
  section; and
               (2)  for each assessment included on the list under
  Subdivision (1), set a score that indicates satisfactory
  performance for purposes of this section.
         (c)  Funds allocated under this section must be used to fund
  programs and services designed to improve student performance on a
  third grade reading multidimensional assessment included on the
  list adopted by the commissioner under Subsection (b).
         Sec. 42.163.  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 ______ if the student
  is:
               (1)  educationally disadvantaged; or
               (2)  in a bilingual education or special language
  program under Subchapter B, Chapter 29.
         (b)  Funds allocated under this section must be used to fund
  programs and services designed to improve student performance on a
  third grade reading multidimensional assessment included on the
  list adopted by the commissioner under Section 42.162.
         (c)  A school district is entitled to an allotment under each
  subdivision of Subsection (a) for which a student qualifies.
         (d)  A school district may receive funding for a student
  under this section and under Sections 42.152 and 42.153, as
  applicable, if the student satisfies the requirements of each
  applicable section.
         Sec. 42.164.  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 42.101; and
               (3)  "BA" is the basic allotment determined under
  Section 42.101.
         (b)  A school district that contains at least 300 square
  miles and has 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 contains less than 300 square
  miles and has 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 formulas:
               (1)  for the fiscal year beginning September 1, 2019:
  AA = ((1,600 - ADA) X .00030) X BA;
               (2)  for the fiscal year beginning September 1, 2020:
  AA = ((1,600 - ADA) X .000325) X BA;
               (3)  for the fiscal year beginning September 1, 2021:
  AA = ((1,600 - ADA) X .00035) X BA; and
               (4)  for the fiscal year beginning September 1, 2022:
  AA = ((1,600 - ADA) X .000375) X BA.
         (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 1.014.  Effective September 1, 2023, Sections
  42.164(b) and (d), Education Code, as added by this Act, are amended
  to read as follows:
         (b)  A school district that [contains at least 300 square
  miles and] has 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
         (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), if [or (c) for
  which] the district is eligible for that formula; or
               (2)  AA = ((5,000 - ADA) X .000025) X BA.
         SECTION 1.015.  Subchapter C, Chapter 42, Education Code, is
  amended by adding Sections 42.165 and 42.169 to read as follows:
         Sec. 42.165.  FAST GROWTH ALLOTMENT. (a) A school district
  in which the growth in student enrollment in the district over the
  preceding three school years is in the top quartile of student
  enrollment growth in school districts in the state for that period,
  as determined by the commissioner, is entitled to an annual
  allotment of $_______ for each student in average daily attendance.
         (b)  An open-enrollment charter school is not entitled to an
  allotment under this section.
         Sec. 42.169.  ALLOTMENT FOR STUDENT ACHIEVEMENTS IN COLLEGE,
  CAREER, OR MILITARY READINESS. (a) For each student who is
  educationally disadvantaged and graduated high school in the
  preceding school year demonstrating college, career, or military
  readiness as described by Subsection (b), a school district is
  entitled to an annual allotment equal to the basic allotment
  multiplied by _____.
         (b)  For purposes of this section, a student demonstrates
  college, career, or military readiness if the student achieves
  minimum scores set by commissioner rule on the ACT, the SAT, an
  assessment instrument designated by the Texas Higher Education
  Coordinating Board under Section 51.334, or the Armed Services
  Vocational Aptitude Battery and graduates from high school having:
               (1)  enrolled at a postsecondary educational
  institution;
               (2)  earned an industry-accepted certificate; or
               (3)  enlisted in the armed forces of the United States.
         SECTION 1.016.  Section 42.252(a), Education Code, is
  amended to read as follows:
         (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 a tax rate 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 current [preceding] tax year determined under Subchapter M,
  Chapter 403, Government Code.
         SECTION 1.017.  Section 42.302(a-1), Education Code, is
  amended to read as follows:
         (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 42.101(a) or (b)
  multiplied by ______ [used for purposes of this subdivision in the
  preceding school year], for the first six cents by which the
  district's maintenance and operations tax rate exceeds the 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)  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 cent of tax effort
  equal to the maximum amount provided per cent under Section
  42.101(a) or (b), multiplied by ______ [$31.95], for the district's
  maintenance and operations tax effort that exceeds the amount of
  tax effort described by Subdivision (1).
  ARTICLE 2. PUBLIC EDUCATION
         SECTION 2.001.  Chapter 4, Education Code, is amended by
  adding Section 4.003 to read as follows:
         Sec. 4.003.  60x30TX GOALS. To further the state's master
  plan developed under Section 61.051 for at least 60 percent of all
  adults aged 25 to 34 in this state to achieve a postsecondary degree
  or workforce credential by 2030, the following goals are
  established:
               (1)  at least 60 percent of all public school students
  shall perform satisfactorily on a third grade reading
  multidimensional assessment included on the list adopted by the
  commissioner under Section 42.162 by 2030; and
               (2)  at least 60 percent of all public school students
  graduating high school shall meet college, career, and military
  readiness standards by 2030.
         SECTION 2.002.  Subchapter B, Chapter 7, Education Code, is
  amended by adding Section 7.038 to read as follows:
         Sec. 7.038.  60x30TX PROGRESS REPORT. (a) Not later than
  December 1 of each even-numbered year, the agency and the Texas
  Higher Education Coordinating Board jointly shall prepare and
  submit to the governor, the lieutenant governor, the speaker of the
  house of representatives, and the standing legislative committees
  with primary jurisdiction over public education a report assessing
  the state's progress toward achieving the 60x30TX goals established
  under Section 4.003.
         (b)  The report must:
               (1)  be combined with the Texas Higher Education
  Coordinating Board's report on the state's master plan for higher
  education required under Section 61.051(a-3);
               (2)  analyze progress made toward the 60x30TX goals
  disaggregated by:
                     (A)  household income;
                     (B)  native language;
                     (C)  ethnicity;
                     (D)  gender; and
                     (E)  any other demographic category identified by
  the commissioner and the commissioner of higher education; and
               (3)  include recommendations for legislative or other
  action, including statutory or funding changes, to assist the state
  in meeting those goals.
         SECTION 2.003.  Section 11.252(a), Education Code, is
  amended to read as follows:
         (a)  Each school district shall have a district improvement
  plan that is developed, evaluated, and revised annually, in
  accordance with district policy, by the superintendent with the
  assistance of the district-level committee established under
  Section 11.251. The purpose of the district improvement plan is to
  guide district and campus staff in the improvement of student
  performance for all student groups in order to attain state
  standards in respect to the achievement indicators adopted under
  Section 39.053(c). The district improvement plan must be aligned
  with the 60x30TX district plans developed under Section 11.2522 and
  include provisions for:
               (1)  a comprehensive needs assessment addressing
  district student performance on the achievement indicators, and
  other appropriate measures of performance, that are disaggregated
  by all student groups served by the district, including categories
  of ethnicity, socioeconomic status, sex, and populations served by
  special programs, including students in special education programs
  under Subchapter A, Chapter 29;
               (2)  measurable district performance objectives for
  all appropriate achievement indicators for all student
  populations, including students in special education programs
  under Subchapter A, Chapter 29, and other measures of student
  performance that may be identified through the comprehensive needs
  assessment;
               (3)  strategies for improvement of student performance
  that include:
                     (A)  instructional methods for addressing the
  needs of student groups not achieving their full potential;
                     (B)  methods for addressing the needs of students
  for special programs, including:
                           (i)  suicide prevention programs, in
  accordance with Subchapter O-1, Chapter 161, Health and Safety
  Code, which includes a parental or guardian notification procedure;
                           (ii)  conflict resolution programs;
                           (iii)  violence prevention programs; and
                           (iv)  dyslexia treatment programs;
                     (C)  dropout reduction;
                     (D)  integration of technology in instructional
  and administrative programs;
                     (E)  discipline management;
                     (F)  staff development for professional staff of
  the district;
                     (G)  career education to assist students in
  developing the knowledge, skills, and competencies necessary for a
  broad range of career opportunities; and
                     (H)  accelerated education;
               (4)  strategies for providing to middle school, junior
  high school, and high school students, those students' teachers and
  school counselors, and those students' parents information about:
                     (A)  higher education admissions and financial
  aid opportunities;
                     (B)  the TEXAS grant program and the Teach for
  Texas grant program established under Chapter 56;
                     (C)  the need for students to make informed
  curriculum choices to be prepared for success beyond high school;
  and
                     (D)  sources of information on higher education
  admissions and financial aid;
               (5)  resources needed to implement identified
  strategies;
               (6)  staff responsible for ensuring the accomplishment
  of each strategy;
               (7)  timelines for ongoing monitoring of the
  implementation of each improvement strategy;
               (8)  formative evaluation criteria for determining
  periodically whether strategies are resulting in intended
  improvement of student performance; and
               (9)  the policy under Section 38.0041 addressing sexual
  abuse and other maltreatment of children.
         SECTION 2.004.  Subchapter F, Chapter 11, Education Code, is
  amended by adding Section 11.2522 to read as follows:
         Sec. 11.2522.  60x30TX DISTRICT PLANS. (a) In addition to
  the district improvement plan developed under Section 11.252, each
  school district shall develop three-year and five-year district
  plans for achieving the 60x30TX goals established under Section
  4.003.
         (b)  Each plan developed under Subsection (a) must identify
  student achievement goals for each of the following demographic
  categories:
               (1)  household income;
               (2)  native language;
               (3)  ethnicity;
               (4)  gender; and
               (5)  any other demographic category identified by the
  commissioner.
         (c)  Not later than September 1 of each year, each school
  district shall submit to the agency and post on the district's
  Internet website a report assessing the progress of the district
  and each campus in the district toward achieving the goals
  identified in the district's plans developed under Subsection (a).
         (d)  The commissioner may adopt rules as necessary to
  implement this section.
         SECTION 2.005.  Section 11.253(d), Education Code, is
  amended to read as follows:
         (d)  Each campus improvement plan must be aligned with the
  60x30TX district plans developed under Section 11.2522 and:
               (1)  assess the academic achievement for each student
  in the school using the achievement indicator system as described
  by Section 39.053;
               (2)  set the campus performance objectives based on the
  achievement indicator system, including objectives for special
  needs populations, including students in special education
  programs under Subchapter A, Chapter 29;
               (3)  identify how the campus goals will be met for each
  student;
               (4)  determine the resources needed to implement the
  plan;
               (5)  identify staff needed to implement the plan;
               (6)  set timelines for reaching the goals;
               (7)  measure progress toward the performance
  objectives periodically to ensure that the plan is resulting in
  academic improvement;
               (8)  include goals and methods for violence prevention
  and intervention on campus;
               (9)  provide for a program to encourage parental
  involvement at the campus; and
               (10)  if the campus is an elementary, middle, or junior
  high school, set goals and objectives for the coordinated health
  program at the campus based on:
                     (A)  student fitness assessment data, including
  any data from research-based assessments such as the school health
  index assessment and planning tool created by the federal Centers
  for Disease Control and Prevention;
                     (B)  student academic performance data;
                     (C)  student attendance rates;
                     (D)  the percentage of students who are
  educationally disadvantaged;
                     (E)  the use and success of any method to ensure
  that students participate in moderate to vigorous physical activity
  as required by Section 28.002(l); and
                     (F)  any other indicator recommended by the local
  school health advisory council.
         SECTION 2.006.  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 60x30TX plans under Section 11.2522.
         SECTION 2.007.  Subchapter H, Chapter 21, Education Code, is
  amended by adding Section 21.360 to read as follows:
         Sec. 21.360.  EDUCATOR EFFECTIVENESS PROGRAM. (a) A school
  district may submit a request to the commissioner for state funding
  under this section to assist the district in providing merit salary
  increases under an educator effectiveness program approved by the
  agency and implemented by the district.
         (b)  An educator effectiveness program must provide merit
  salary increases to educators based on an evaluation of the
  effectiveness of the educator under a multi-measure system
  developed by the district in partnership with stakeholders and the
  district's educators that includes measures that account for:
               (1)  campus leader observations;
               (2)  teacher peer review;
               (3)  student surveys; and
               (4)  student academic growth.
         (c)  A school district must award higher merit salary
  increases under the district's educator effectiveness program to
  highly effective educators who are assigned to campuses with poor
  overall or domain performance ratings under Section 39.054.
         (d)  To be eligible to receive funding for an educator
  effectiveness program under this section, a school district may:
               (1)  implement a program developed by the agency;
               (2)  collaborate with other school districts to develop
  a program to be approved by the agency; or
               (3)  develop a program to be approved by the agency.
         (e)  From funds appropriated for that purpose, the
  commissioner shall provide funding under this section in accordance
  with rules adopted by the commissioner. If funds are not available
  to provide funding to each school district that submits a request
  under Subsection (b), the commissioner shall give priority to:
               (1)  school districts with the highest proportion of
  economically disadvantaged students; and
               (2)  school districts with the highest number of
  campuses assigned an overall performance rating of F under Section
  39.054.
         (f)  From funds provided to a school district under this
  section, the district shall use:
               (1)  a small percentage of the funds to:
                     (A)  provide signing bonuses to new classroom
  teachers who attend educator preparation programs;
                     (B)  implement a mentoring program in which
  classroom teachers receiving merit salary increases under the
  district's educator effectiveness program mentor students and new
  classroom teachers; and
                     (C)  pay for costs associated with the development
  and implementation of the district's educator effectiveness
  program; and
               (2)  a small percentage of the funds, which may not be
  more than three percent, to provide merit salary increases to
  outstanding principals as determined under the educator
  effectiveness program.
         (g)  The percentage of classroom teachers in this state
  receiving a merit salary increase under this section may not
  exceed:
               (1)  for the 2019-2020 school year, 10 percent;
               (2)  for the 2020-2021 school year, 20 percent;
               (3)  for the 2021-2022 school year, 30 percent;
               (4)  for the 2022-2023 school year, 40 percent;
               (5)  for the 2023-2024 school year, 50 percent;
               (6)  for the 2024-2025 school year, 60 percent;
               (7)  for the 2025-2026 school year, 70 percent;
               (8)  for the 2026-2027 school year, 80 percent;
               (9)  for the 2027-2028 school year, 90 percent; and
               (10)  for the 2028-2029 school year and each subsequent
  school year, 100 percent.
         (h)  A school district that receives funding for the
  district's educator effectiveness program under this section must
  annually submit to the agency a report providing the number,
  percentage, and retention rate of educators employed by the
  district under the educator effectiveness program.
         SECTION 2.008.  Section 28.006(d), Education Code, is
  amended to read as follows:
         (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 60th 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.
         SECTION 2.009.  Section 28.025(c), Education Code, is
  amended to read as follows:
         (c)  A person may receive a diploma if the person is eligible
  for a diploma under Section 28.0251. In other cases, a student may
  graduate and receive a diploma only if:
               (1)  the student successfully completes the curriculum
  requirements identified by the State Board of Education under
  Subsection (a) and complies with Sections 28.0256 and [Section]
  39.025; or
               (2)  the student successfully completes an
  individualized education program developed under Section 29.005.
         SECTION 2.010.  Subchapter B, Chapter 28, Education Code, is
  amended by adding Section 28.0256 to read as follows:
         Sec. 28.0256.  FINANCIAL AID APPLICATION REQUIREMENT FOR
  HIGH SCHOOL GRADUATION. (a) Before graduating from high school,
  each student must complete and submit a free application for
  federal student aid (FAFSA) or, if applicable, a Texas application
  for state financial aid (TASFA).
         (b)  A student is not required to comply with Subsection (a)
  if:
               (1)  the student's parent or other person standing in
  parental relation submits a signed form indicating that the parent
  or other person authorizes the student to decline to complete and
  submit the financial aid application; or
               (2)  the student signs and submits the form described
  by Subdivision (1) on the student's own behalf if the student is 18
  years of age or older or the student's disabilities of minority have
  been removed for general purposes under Chapter 31, Family Code.
         (c)  A school district or open-enrollment charter school
  shall adopt a form to be used for purposes of Subsection (b).
         SECTION 2.011.  Subchapter D, Chapter 29, Education Code, is
  amended by adding Section 29.124 to read as follows:
         Sec. 29.124.  REPORT. (a) Not later than December 1 of each
  year, the agency shall submit to the legislature a report comparing
  the number of students identified as gifted and talented students
  during each of the two preceding school years.
         (b)  The report must include any recommendations for
  legislative or other action necessary to ensure that the number of
  students identified as gifted and talented students does not
  decline for any school year.
         SECTION 2.012.  Section 29.153, Education Code, is amended
  by amending Subsections (b), (c), (d), and (f) and adding
  Subsections (c-1) and (d-1) to read as follows:
         (b)  A child is eligible for enrollment in a prekindergarten
  class under this section if the child is at least three years of age
  and:
               (1)  is unable to speak and comprehend the English
  language;
               (2)  is educationally disadvantaged;
               (3)  is a homeless child, as defined by 42 U.S.C.
  Section 11434a, regardless of the residence of the child, of either
  parent of the child, or of the child's guardian or other person
  having lawful control of the child;
               (4)  is the child of an active duty member of the armed
  forces of the United States, including the state military forces or
  a reserve component of the armed forces, who is ordered to active
  duty by proper authority;
               (5)  is the child of a member of the armed forces of the
  United States, including the state military forces or a reserve
  component of the armed forces, who was injured or killed while
  serving on active duty;
               (6)  is or ever has been in the conservatorship of the
  Department of Family and Protective Services following an adversary
  hearing held as provided by Section 262.201, Family Code; [or]
               (7)  is the child of a person eligible for the Star of
  Texas Award as:
                     (A)  a peace officer under Section 3106.002,
  Government Code;
                     (B)  a firefighter under Section 3106.003,
  Government Code; or
                     (C)  an emergency medical first responder under
  Section 3106.004, Government Code; or
               (8)  is the child of an educator employed by a school
  district in this state.
         (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)  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)  If the number of children who are eligible for
  enrollment in a prekindergarten class offered by a school district
  under this section exceeds the total number of open seats available
  in prekindergarten classes in the district, the district shall give
  enrollment preference to children who are eligible for enrollment
  under Subsection (b)(1), (2), (3), (4), (5), (6), or (7).
         (f)  A child who is eligible for enrollment in a
  prekindergarten class under Subsection (b)(4), [or] (5), or (8)
  remains eligible for enrollment after the child begins a
  prekindergarten class if, as applicable, the child's parent:
               (1)  leaves the armed forces;
               (2)  [, or] is no longer on active duty; or
               (3)  is no longer employed as an educator by a school
  district in this state[, after the child begins a prekindergarten
  class].
         SECTION 2.013.  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 2.014.  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);
               (3)  the number of students who were administered a
  diagnostic reading instrument administered in accordance with
  Section 28.006(c);
               (4)  the number of students whose scores from a
  diagnostic reading instrument administered in accordance with
  Section 28.006(c) 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; and
               (6)  the number and percentage of students who perform
  satisfactorily on a third grade reading multidimensional
  assessment included on the list adopted by the commissioner under
  Section 42.162, disaggregated by whether the student was eligible
  for free prekindergarten under Section 29.153 and whether the
  student attended kindergarten in the district.
         SECTION 2.015.  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 2.016.  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 2.017.  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 2.018.  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 2.019.  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 2.020.  Subchapter Z, Chapter 29, Education Code, is
  amended by adding Section 29.924 to read as follows:
         Sec. 29.924.  BLENDED LEARNING MATERIALS. (a) In this
  section, "blended learning" means an instructional delivery method
  that combines classroom and online instruction.
         (b)  The commissioner shall develop a list of professional
  development materials for use by school districts that assist
  educators in implementing blended learning. The materials must be
  based on best practices for blended learning.
         SECTION 2.021.  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 2.022.  Section 39A.105, Education Code, is amended
  to read as follows:
         Sec. 39A.105.  CONTENTS OF CAMPUS TURNAROUND PLAN. (a) A
  campus turnaround plan must include:
               (1)  details on the method for restructuring,
  reforming, or reconstituting the campus;
               (2)  a detailed description of the academic programs to
  be offered at the campus, including:
                     (A)  instructional methods;
                     (B)  length of school day and school year;
                     (C)  academic credit and promotion criteria; and
                     (D)  programs to serve special student
  populations;
               (3)  if a district charter is to be granted for the
  campus under Section 12.0522:
                     (A)  the term of the charter; and
                     (B)  information on the implementation of the
  charter;
               (4)  written comments from:
                     (A)  the campus-level committee established under
  Section 11.251, if applicable;
                     (B)  parents; and
                     (C)  teachers at the campus; and
               (5)  a detailed description of the budget, staffing,
  and financial resources required to implement the plan, including
  any supplemental resources to be provided by the school district or
  other identified sources.
         (b)  If the campus is an elementary or middle school campus,
  the campus may submit a campus turnaround plan that provides for
  staffing of the campus with highly effective educators if the
  campus has implemented an educator effectiveness program under
  Section 21.360. From funds appropriated for that purpose, the
  commissioner shall provide matching funds to the school district at
  which the campus is located for a campus that submits a campus
  turnaround plan that includes the provisions of this subsection.
  ARTICLE 3. CONFORMING CHANGES
         SECTION 3.001.  Section 7.062(c), Education Code, is amended
  to read as follows:
         (c)  Except as otherwise provided by this subsection, if the
  commissioner certifies that the amount appropriated for a state
  fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
  the amount to which school districts are entitled under those
  subchapters for that year, the commissioner shall use the excess
  funds, in an amount not to exceed $20 million in any state fiscal
  year, for the purpose of making grants under this section. The use
  of excess funds under this subsection has priority over any
  provision of Chapter 42 that permits or directs the use of excess
  foundation school program funds, including Sections [42.2517,]
  42.2521, 42.2522, and 42.2531. The commissioner is required to use
  excess funds as provided by this subsection only if the
  commissioner is not required to reduce the total amount of state
  funds allocated to school districts under Section 42.253(h).
         SECTION 3.002.  Section 8.051(d), Education Code, is amended
  to read as follows:
         (d)  Each regional education service center shall maintain
  core services for purchase by school districts and campuses. The
  core services are:
               (1)  training and assistance in:
                     (A)  teaching each subject area assessed under
  Section 39.023; and
                     (B)  providing instruction in personal financial
  literacy as required under Section 28.0021;
               (2)  training and assistance in providing a gifted and
  talented program and each program that qualifies for a funding
  allotment under Section 42.151, 42.152, or 42.153[, or 42.156];
               (3)  assistance specifically designed for a school
  district or campus assigned an unacceptable performance rating
  under Section 39.054;
               (4)  training and assistance to teachers,
  administrators, members of district boards of trustees, and members
  of site-based decision-making committees;
               (5)  assistance specifically designed for a school
  district that is considered out of compliance with state or federal
  special education requirements, based on the agency's most recent
  compliance review of the district's special education programs; and
               (6)  assistance in complying with state laws and rules.
         SECTION 3.003.  Section 12.106(a-1), Education Code, is
  amended to read as follows:
         (a-1)  In determining funding for an open-enrollment charter
  school under Subsection (a):
               (1)  the adjustment [adjustments] under Section
  [Sections 42.102, 42.104, and] 42.105 is [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.
         SECTION 3.004.  Section 29.014(d), Education Code, is
  amended to read as follows:
         (d)  The basic allotment for a student enrolled in a district
  to which this section applies is adjusted by[:
               [(1)     the cost of education adjustment under Section
  42.102 for the school district in which the district is
  geographically located; and
               [(2)]  the weight for a homebound student under Section
  42.151(a).
         SECTION 3.005.  Sections 29.918(a) and (b), Education Code,
  are amended to read as follows:
         (a)  Notwithstanding Section [39.234 or] 42.152, a school
  district or open-enrollment charter school with a high dropout
  rate, as determined by the commissioner, must submit a plan to the
  commissioner describing the manner in which the district or charter
  school intends to use the compensatory education allotment under
  Section 42.152 [and the high school allotment under Section 42.160]
  for developing and implementing research-based strategies for
  dropout prevention.  The district or charter school shall submit
  the plan not later than December 1 of each school year preceding the
  school year in which the district or charter school will receive the
  compensatory education allotment [or high school allotment] to
  which the plan applies.
         (b)  A school district or open-enrollment charter school to
  which this section applies may not spend or obligate more than 25
  percent of the district's or charter school's compensatory
  education allotment [or high school allotment] unless the
  commissioner approves the plan submitted under Subsection
  (a).  The commissioner shall complete an initial review of the
  district's or charter school's plan not later than March 1 of the
  school year preceding the school year in which the district or
  charter school will receive the compensatory education allotment
  [or high school allotment] to which the plan applies.
         SECTION 3.006.  Section 39.0233(a), Education Code, is
  amended to read as follows:
         (a)  The agency, in coordination with the Texas Higher
  Education Coordinating Board, shall adopt a series of questions to
  be included in an end-of-course assessment instrument administered
  under Section 39.023(c) to be used for purposes of Subchapter F-1,
  Chapter 51. The questions adopted under this subsection must be
  developed in a manner consistent with any college readiness
  standards adopted under [Section 39.233 and] Subchapter F-1,
  Chapter 51.
         SECTION 3.007.  Section 41.034(a), Education Code, is
  amended to read as follows:
         (a)  For the first and second school years after creation of
  a consolidated district under this subchapter, the commissioner
  shall:
               (1)  adjust allotments to the consolidated district to
  the extent necessary to preserve the effects of an adjustment under
  Section [42.102, 42.103, or] 42.105 to which either of the
  consolidating districts would have been entitled but for the
  consolidation; and
               (2)  if either of the consolidating districts would
  have been entitled to an allotment under Section 42.164 but for the
  consolidation, adjust allotments to the consolidated district in
  the amount of the allotment to which the district would have been
  entitled under that section.
         SECTION 3.008.  Section 41.099(a), Education Code, is
  amended to read as follows:
         (a)  Sections [41.002(e),] 41.094 and[,] 41.097[, and
  41.098] apply only to a district that:
               (1)  executes an agreement to purchase all attendance
  credits necessary to reduce the district's wealth per student to
  the equalized wealth level;
               (2)  executes an agreement to purchase attendance
  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 wealth per student required for the
  district to achieve a wealth per student that is equal to or less
  than the equalized wealth level; 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 3.009.  Section 41.257, Education Code, is amended
  to read as follows:
         Sec. 41.257.  APPLICATION OF SPARSITY ADJUSTMENT [SMALL AND
  SPARSE ADJUSTMENTS] AND TRANSPORTATION AND SMALL DISTRICT
  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 [42.103,] 42.105,
  [or] 42.155, or 42.164 would have applied in the event that the
  consolidated district still qualifies as a small or sparse
  district.
         SECTION 3.010.  Section 42.007(c), Education Code, is
  amended to read as follows:
         (c)  The funding elements must include:
               (1)  a basic allotment for the purposes of Section
  42.101 that, when combined with the guaranteed yield component
  provided by Subchapter F, represents the cost per student of a
  regular education program that meets all mandates of law and
  regulation;
               (2)  [adjustments designed to reflect the variation in
  known resource costs and costs of education beyond the control of
  school districts;
               [(3)]  appropriate program cost differentials and
  other funding elements for the programs authorized under Subchapter
  C, with the program funding level expressed as dollar amounts and as
  weights applied to the [adjusted] basic allotment for the
  appropriate year;
               (3) [(4)]  the maximum guaranteed level of qualified
  state and local funds per student for the purposes of Subchapter F;
               (4) [(5)]  the enrichment [and facilities] tax rate
  under Subchapter F;
               (5) [(6)]  the computation of students in weighted
  average daily attendance under Section 42.302; and
               (6) [(7)]  the amount to be appropriated for the school
  facilities assistance program under Chapter 46.
         SECTION 3.011.  Sections 42.105(a) and (c), Education Code,
  are amended to read as follows:
         (a)  Notwithstanding Section [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.
         (c)  Notwithstanding Subsection (a) or Section [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.
         SECTION 3.012.  Sections 42.151(a) and (k), Education Code,
  are amended to read as follows:
         (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
         (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.
         SECTION 3.013.  Section 42.152(a), Education Code, is
  amended to read as follows:
         (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, 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.
         SECTION 3.014.  Section 42.157(a), Education Code, is
  amended to read as follows:
         (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.
         SECTION 3.015.  Section 42.2518(a), Education Code, is
  amended to read as follows:
         (a)  Beginning with the 2017-2018 school year, a school
  district is entitled to additional state aid to the extent that
  state and local revenue under this chapter and Chapter 41 is less
  than the state and local revenue that would have been available to
  the district under Chapter 41 and this chapter as those chapters
  existed on September 1, 2015, excluding any state aid or adjustment
  in wealth per student that would have been provided under former
  Sections 41.002(e)-(g) or former Section 42.2516, if the increase
  in the residence homestead exemption under Section 1-b(c), Article
  VIII, Texas Constitution, and the additional limitation on tax
  increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
  occurred.
         SECTION 3.016.  Section 42.302(a), Education Code, is
  amended to read as follows:
         (a)  Each school district is guaranteed a specified amount
  per weighted student in state and local funds for each cent of tax
  effort over that required for the district's local fund assignment
  up to the maximum level specified in this subchapter.  The amount
  of state support, subject only to the maximum amount under Section
  42.303, is determined by the formula:
  GYA = (GL X WADA X DTR X 100) - LR
  where:
         "GYA" is the guaranteed yield amount of state funds to be
  allocated to the district;
         "GL" is the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort, which is 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 and[,] 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 42.2521, divided by 100; and
         "LR" is the local revenue, which is determined by multiplying
  "DTR" by the quotient of the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 42.2521, divided by 100.
         SECTION 3.017.  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 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)(2)
  [42.007(c)(3)], Education Code, shall be reported in dollar amounts
  per pupil.
         SECTION 3.018.  Section 825.405(b), Government Code, is
  amended to read as follows:
         (b)  For purposes of this section:
               (1)  the statutory minimum salary for certain school
  personnel under Section 21.402, Education Code, is the salary
  provided by that section multiplied by the cost of education index
  adjustment adopted by the foundation school fund budget committee
  and contained in Chapter 203, Title 19, Texas Administrative Code,
  as that chapter existed on March 26, 1997, applicable [under
  Section 42.102, Education Code,] to the district in which the
  member is employed; and
               (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, multiplied by the cost of
  education index adjustment adopted by the foundation school fund
  budget committee and contained in Chapter 203, Title 19, Texas
  Administrative Code, as that chapter existed on March 26, 1997,
  applicable [under Section 42.102, Education Code,] to the district
  in which the member is employed.
  ARTICLE 4. REPEALER
         SECTION 4.001.  (a) The following provisions of the
  Education Code are repealed:
               (1)  Section 29.097(g);
               (2)  Section 29.098(e);
               (3)  Section 29.165;
               (4)  Section 29.166;
               (5)  Section 39.233;
               (6)  Section 39.234;
               (7)  Sections 41.002(e), (f), and (g);
               (8)  Section 41.098;
               (9)  Section 42.102;
               (10)  Section 42.103;
               (11)  Section 42.104;
               (12)  Section 42.155(b)(3);
               (13)  Section 42.156;
               (14)  Section 42.160;
               (15)  Section 42.2513; and
               (16)  Section 42.2517.
         (b)  Effective September 1, 2023, Section 42.164(c),
  Education Code, as added by this Act, is repealed.
  ARTICLE 5. TRANSITION
         SECTION 5.001.  (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 28.025, Education Code, as amended by this Act,
  and Section 28.0256, Education Code, as added by this Act, apply
  beginning with students enrolled at the 12th grade level during the
  2020-2021 school year.
         SECTION 5.002.  Not later than September 1, 2019, the
  commissioner of education shall adopt the list of approved third
  grade reading multidimensional assessments as required under
  Section 42.162, Education Code, as added by this Act.
         SECTION 5.003.  Not later than September 1, 2020, each
  school district shall submit and post on the district's Internet
  website the initial report required under Section 11.2522,
  Education Code, as added by this Act.
         SECTION 5.004.  Not later than December 1, 2020, the Texas
  Education Agency and the Texas Higher Education Coordinating Board
  jointly shall prepare and submit the initial report required under
  Section 7.038, Education Code, as added by this Act.
         SECTION 5.005.  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 6. EFFECTIVE DATE
         SECTION 6.001.  Except as otherwise provided by this Act,
  this Act takes effect September 1, 2019.