87R12935 MEW/KJE/BDP-F
 
  By: Taylor S.B. No. 1536
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the public school finance system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.106, Education Code, is amended by
  adding Subsections (a-5) and (a-6) to read as follows:
         (a-5)  To ensure compliance with the requirements for the
  maintenance of state financial support for special education under
  20 U.S.C. Section 1412(a)(18), in determining the funding for an
  open-enrollment charter school under Subsection (a) for the Section
  48.102 allotment, the commissioner shall:
               (1)  if necessary, increase the amount of that
  allotment to an amount equal to the amount the charter holder was
  entitled to receive for the charter school under the allotment
  under former Section 42.151, Education Code, for the 2018-2019
  school year; and
               (2)  reduce the amount of the allotment the charter
  holder is entitled to receive for the charter school under
  Subsection (a-2) by the amount of any increase provided for the
  charter school under Subdivision (1).
         (a-6)  Subsection (a-5) and this subsection expire September
  1, 2025.
         SECTION 2.  Sections 12.133(b), (b-1), and (c), Education
  Code, are amended to read as follows:
         (b)  Each school year, [using state funds received by the
  charter holder for that purpose under Subsection (d),] a charter
  holder that participated in the program under Chapter 1579,
  Insurance Code, for the 2005-2006 school year shall provide
  employees of the charter holder, other than administrators,
  compensation in the form of annual salaries, incentives, or other
  compensation determined appropriate by the charter holder that
  results in an average compensation increase for classroom teachers,
  full-time librarians, full-time school counselors, and full-time
  school nurses who are employed by the charter holder and who would
  be entitled to a minimum salary under Section 21.402 if employed by
  a school district, in an amount at least equal to $2,500.
         (b-1)  A [Using state funds received by the charter holder
  for that purpose under Subsection (d-1), a] charter holder that
  participated in the program under Chapter 1579, Insurance Code, for
  the 2005-2006 school year shall provide employees of the charter
  holder, other than administrators, compensation in the form of
  annual salaries, incentives, or other compensation determined
  appropriate by the charter holder that results in average
  compensation increases as follows:
               (1)  for full-time employees other than employees who
  would be entitled to a minimum salary under Section 21.402 if
  employed by a school district, an average increase at least equal to
  $500; and
               (2)  for part-time employees, an average increase at
  least equal to $250.
         (c)  Each school year, [using state funds received by the
  charter holder for that purpose under Subsection (e),] a charter
  holder that did not participate in the program under Chapter 1579,
  Insurance Code, for the 2005-2006 school year shall provide
  employees of the charter holder, other than administrators,
  compensation in the form of annual salaries, incentives, or other
  compensation determined appropriate by the charter holder that
  results in an average compensation increase for classroom teachers,
  full-time librarians, full-time school counselors, and full-time
  school nurses who are employed by the charter holder and who would
  be entitled to a minimum salary under Section 21.402 if employed by
  a school district, in an amount at least equal to $2,000.
         SECTION 3.  Section 25.001(h), Education Code, is amended to
  read as follows:
         (h)  In addition to the penalty provided by Section 37.10,
  Penal Code, a person who knowingly falsifies information on a form
  required for enrollment of a student in a school district is liable
  to the district if the student is not eligible for enrollment in the
  district but is enrolled on the basis of the false information. The
  person is liable, for the period during which the ineligible
  student is enrolled, for [the greater of:
               [(1)  the maximum tuition fee the district may charge
  under Section 25.038; or
               [(2)]  the amount the district has budgeted for each
  student as maintenance and operating expenses.
         SECTION 4.  Section 37.108(b-1), Education Code, is amended
  to read as follows:
         (b-1)  In a school district's safety and security audit
  required under Subsection (b), the district must certify that the
  district used the funds provided to the district through the school
  safety allotment under Section 48.115 [42.168] only for the
  purposes provided by that section.
         SECTION 5.  Section 39.0261, Education Code, is amended by
  adding Subsection (a-1) and amending Subsection (b) to read as
  follows:
         (a-1)  Notwithstanding Subsection (a)(3), the commissioner
  by rule may allow a student to take at state cost an assessment
  instrument described by that subsection if circumstances existed
  that prevented the student from taking the assessment instrument
  before the student graduated from high school.
         (b)  The agency shall:
               (1)  select and approve vendors of the specific
  assessment instruments administered under this section and
  negotiate with each approved vendor a price for each assessment
  instrument; and
               (2)  provide reimbursement to a school district in the
  amount negotiated under Subdivision (1) for [all fees associated
  with] the administration of the assessment instrument from funds
  appropriated for that purpose.
         SECTION 6.  Section 39.053(g-4), Education Code, is amended
  to read as follows:
         (g-4)  For purposes of the computation of dropout and
  completion rates such as high school graduation rates under
  Subsection (c)(1)(B)(ix), the commissioner shall exclude a student
  who was reported as having dropped out of school under Section
  48.009(b-4) [42.006(a-9)], and the student may not be considered to
  have dropped out from the school district or campus in which the
  student was last enrolled.
         SECTION 7.  Section 45.0021, Education Code, is amended by
  amending Subsection (a) and adding Subsections (c), (d), and (e) to
  read as follows:
         (a)  A school district may not impose [increase the rate of]
  the district's maintenance taxes described by Section 45.002 at a
  rate intended to create a surplus in maintenance tax revenue for the
  purpose of paying the district's debt service.
         (c)  The agency shall:
               (1)  develop a method to identify school districts that
  may have adopted a maintenance tax rate in violation of Subsection
  (a), which must include a review of data over multiple years;
               (2)  for each school district identified under the
  method developed under Subdivision (1), investigate as necessary to
  determine whether the district has adopted a maintenance tax rate
  in violation of Subsection (a); and
               (3)  if the agency determines that a school district
  has adopted a maintenance tax rate in violation of Subsection (a):
                     (A)  order the district to comply with Subsection
  (a) not later than three years after the date of the order; and
                     (B)  assist the district in developing a
  corrective action plan that, to the extent feasible, does not
  result in a net increase in the district's total tax rate.
         (d)  The implementation of a corrective action plan under
  Subsection (c)(3)(B) does not prohibit a school district from
  increasing the district's total tax rate as necessary to achieve
  other legal purposes.
         (e)  If a school district fails to take action under a
  corrective action plan developed under Subsection (c)(3)(B), the
  commissioner may impose on the district any interventions or
  sanctions under Chapter 39A the commissioner deems appropriate.
  Section 39A.003(c)(5) does not apply to a conservator or management
  team appointed for a school district under this subsection.
         SECTION 8.  Section 48.009, Education Code, is amended by
  amending Subsection (b) and adding Subsection (b-4) to read as
  follows:
         (b)  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 availability of school counselors, including
  the number of full-time equivalent school counselors, at each
  campus;
               (3)  the availability of expanded learning
  opportunities as described by Section 33.252 at each campus;
               (4)  the total number of students, other than students
  described by Subdivision (5), 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]
               (5)  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;
               (6)  disaggregated by campus and grade, the number of:
                     (A)  children who are required to attend school
  under Section 25.085, are not exempted under Section 25.086, and
  fail to attend school without excuse for 10 or more days or parts of
  days within a six-month period in the same school year;
                     (B)  students for whom the district initiates a
  truancy prevention measure under Section 25.0915(a-4); and
                     (C)  parents of students against whom an
  attendance officer or other appropriate school official has filed a
  complaint under Section 25.093; and
               (7)  the number of students who are enrolled in a high
  school equivalency program, a dropout recovery school, or an adult
  education program provided under a high school diploma and industry
  certification charter school program provided by the district or
  school and who:
                     (A)  are at least 18 years of age and under 26
  years of age;
                     (B)  have not previously been reported to the
  agency as dropouts; and
                     (C)  enroll in the program at the district or
  school after not attending school for a period of at least nine
  months.
         (b-4)  A student reported under Subsection (b)(7) as having
  enrolled in a high school equivalency program, a dropout recovery
  school, or an adult education program provided under a high school
  diploma and industry certification charter school program must be
  reported through the Public Education Information Management
  System as having previously dropped out of school.
         SECTION 9.  Section 48.101(a), Education Code, is amended to
  read as follows:
         (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 in average daily attendance;
               (2)  "ADA" is the number of students in average daily
  attendance determined [for which the district is entitled to an
  allotment] under Section 48.005 [48.051]; and
               (3)  "BA" is the basic allotment determined under
  Section 48.051.
         SECTION 10.  Section 48.104, Education Code, is amended by
  adding Subsection (e-1) to read as follows:
         (e-1)  For each student who is a homeless child or youth as
  defined by 42 U.S.C. Section 11434a, a school district is entitled
  to an annual allotment equal to the basic allotment multiplied by
  the highest weight provided under Subsection (d).
         SECTION 11.  Section 48.106, Education Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) 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 7 through 12, a district is entitled to:
               (1)  an annual allotment equal to the basic allotment
  multiplied by a weight of 1.35; and
               (2)  $50 if [for each of the following in which] the
  student is enrolled in[:
                     [(A)] two or more advanced career and technology
  education classes for a total of three or more credits.
         (a-1)  In addition to the amounts under Subsection (a), a
  district is entitled to $50 for each student in average daily
  attendance enrolled at:
               (1)  [;
                     [(B)] a campus designated as a P-TECH school under
  Section 29.556; or
               (2) [(C)]  a campus that is a member of the New Tech
  Network and that focuses on project-based learning and work-based
  education.
         SECTION 12.  Section 48.106(b)(1), Education Code, is
  amended to read as follows:
               (1)  "Career and technology education class" and
  "career and technology education program" include:
                     (A)  technology applications courses; and
                     (B)  only courses or programs designed for the
  high school level.
         SECTION 13.  Section 48.110(f), Education Code, is amended
  to read as follows:
         (f)  For purposes of this section, an annual graduate
  demonstrates:
               (1)  college readiness if the annual graduate:
                     (A)  both:
                           (i)  achieves college readiness standards
  used for accountability purposes under Chapter 39 on the ACT, the
  SAT, or an assessment instrument designated by the Texas Higher
  Education Coordinating Board under Section 51.334; and
                           (ii) [(B)]  during a time period established
  by commissioner rule, enrolls at a postsecondary educational
  institution; or
                     (B)  earns an associate degree while attending
  high school or during a time period established by commissioner
  rule;
               (2)  career readiness if the annual graduate:
                     (A)  achieves college readiness standards used
  for accountability purposes under Chapter 39 on the ACT, the SAT, or
  an assessment instrument designated by the Texas Higher Education
  Coordinating Board under Section 51.334; and
                     (B)  during a time period established by
  commissioner rule, earns an industry-accepted certificate; and
               (3)  military readiness if the annual graduate:
                     (A)  achieves a passing score set by the
  applicable military branch on the Armed Services Vocational
  Aptitude Battery; and
                     (B)  during a time period established by
  commissioner rule, enlists in the armed forces of the United
  States.
         SECTION 14.  Section 48.111, Education Code, is amended to
  read as follows:
         Sec. 48.111.  FAST GROWTH ALLOTMENT.  (a) A school district
  in which the growth in student enrollment in the district over the
  [preceding] three school years preceding the current school year 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 equal to the basic
  allotment multiplied by the weight assigned to the district's
  growth category under Subsection (b) [0.04] for each student in
  average daily attendance.
         (b)  The agency shall identify each school district that
  qualifies for an allotment under this section and rank those
  districts, from fastest to least fastest growth, based on student
  enrollment growth, during the period described by Subsection (a).
  Based on the rankings determined under this section, the agency
  shall divide the districts into four growth categories according to
  relative student enrollment growth. Each growth category must be of
  approximately equal student enrollments. If, based on student
  enrollment, a district is between two growth categories, the agency
  shall assign the district to the faster growth category. The weight
  for each growth category is assigned as follows:
               (1)  0.064 for the fastest growth category;
               (2)  0.048 for the second fastest growth category;
               (3)  0.032 for the third fastest growth category; and
               (4)  0.016 for the least fastest growth category.
  SECTION 15.  Section 42.168, Education Code, as added by
  Chapter 464 (S.B. 11), Acts of the 86th Legislature, Regular
  Session, 2019, is transferred to Subchapter C, Chapter 48,
  Education Code, redesignated as Section 48.115, Education Code, and
  amended to read as follows:
         Sec. 48.115 [42.168].  SCHOOL SAFETY ALLOTMENT. (a)  From
  funds appropriated for that purpose, the commissioner shall provide
  to a school district an annual allotment in the amount provided by
  appropriation for each student in average daily attendance.
         (b)  Funds allocated under this section must be used to
  improve school safety and security, including costs associated
  with:
               (1)  securing school facilities, including:
                     (A)  improvements to school infrastructure;
                     (B)  the use or installation of physical barriers;
  and
                     (C)  the purchase and maintenance of:
                           (i)  security cameras or other security
  equipment; and
                           (ii)  technology, including communications
  systems or devices, that facilitates communication and information
  sharing between students, school personnel, and first responders in
  an emergency;
               (2)  providing security for the district, including:
                     (A)  employing school district peace officers,
  private security officers, and school marshals; and
                     (B)  collaborating with local law enforcement
  agencies, such as entering into a memorandum of understanding for
  the assignment of school resource officers to schools in the
  district;
               (3)  school safety and security training and planning,
  including:
                     (A)  active shooter and emergency response
  training;
                     (B)  prevention and treatment programs relating
  to addressing adverse childhood experiences; and
                     (C)  the prevention, identification, and
  management of emergencies and threats, including:
                           (i)  providing mental health personnel and
  support;
                           (ii)  providing behavioral health services;
  and
                           (iii)  establishing threat reporting
  systems; and
               (4)  providing programs related to suicide prevention,
  intervention, and postvention.
         (c)  A school district may use funds allocated under this
  section for equipment or software that is used for a school safety
  and security purpose and an instructional purpose, provided that
  the instructional use does not compromise the safety and security
  purpose of the equipment or software.
         [(d)  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 to receive as provided by appropriation,
  against the total amount required under Section 41.093 for the
  district to purchase attendance credits.
         [(e)  The commissioner may adopt rules to implement this
  section.]
         SECTION 16.  Section 48.2551, Education Code, is amended by
  amending Subsections (a) and (c) and adding Subsections (d-1) and
  (d-2) to read as follows:
         (a)  In this section:
               (1)  "DPV" is the taxable value of property in the
  school district, as determined by the agency by rule, using locally
  determined property values adjusted in accordance with Section
  403.302(d), Government Code [has the meaning assigned by Section
  48.256];
               (2)  "E" is the expiration of the exclusion of
  appraised property value for the preceding tax year that is
  recognized as taxable property value for the current tax year,
  which is the sum of the following:
                     (A)  property value that is no longer subject to a
  limitation on appraised value under Chapter 313, Tax Code; and
                     (B)  property value under Section 311.013(n), Tax
  Code, that is no longer excluded from the calculation of "DPV" from
  the preceding year because of refinancing or renewal after
  September 1, 2019;
               (3)  "MCR" is the district's maximum compressed rate,
  which is the tax rate for the current tax year per $100 of valuation
  of taxable property at which the district must levy a maintenance
  and operations tax to receive the full amount of the tier one
  allotment to which the district is entitled under this chapter;
               (4)  "PYDPV" is the district's value of "DPV" for the
  preceding tax year; and
               (5)  "PYMCR" is the district's value of "MCR" for the
  preceding tax year.
         (c)  Notwithstanding Subsection (b), for a district to which
  Section 48.2552(b) applies, the district's maximum compressed rate
  is the value calculated in accordance with Section 48.2552(b) [for
  "MCR" under Subsection (b)(1)(B)].
         (d-1)  Local appraisal districts, school districts, and the
  comptroller shall provide any information necessary to the agency
  to implement this section. 
         (d-2)  A school district may appeal to the commissioner the
  district's taxable property value as determined by the agency under
  this section. A decision by the commissioner is final and may not be
  appealed. 
         SECTION 17.  Section 48.2552(b), Education Code, is amended
  to read as follows:
         (b)  If a school district's [district has a] maximum
  compressed rate as calculated under Section 48.2551(b) would be
  [that is] less than 90 percent of another school district's maximum
  compressed rate, the district's maximum compressed rate is the
  value at which the district's maximum compressed rate would be
  equal to 90 percent of the other district's maximum compressed rate
  [calculated under Section 48.2551(c) until the agency determines
  that the difference between the district's and another district's
  maximum compressed rates is not more than 10 percent].
         SECTION 18.  Section 48.257(c), Education Code, is amended
  to read as follows:
         (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), (2), or (3)] may offset the amount by which a
  district must reduce the district's [tier one] revenue level under
  this section [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.
         SECTION 19.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.2721 to read as follows:
         Sec. 48.2721.  RECOVERY OF FUNDS FROM EXCESSIVE TAXATION.
  The commissioner shall reduce state aid or adjust the limit on local
  revenue under Section 48.257 in an amount equal to the amount of
  revenue generated by a school district's tax effort that is not in
  compliance with Section 45.003 or this chapter.
         SECTION 20.  Subchapter G, Chapter 48, Education Code, is
  amended by adding Section 48.303 to read as follows:
         Sec. 48.303.  ADDITIONAL STATE AID FOR REGIONAL EDUCATION
  SERVICE CENTER STAFF SALARY INCREASES. (a)  A regional education
  service center is entitled to state aid in an amount equal to the
  sum of: 
               (1)  the product of $500 multiplied by the number of
  full-time center employees, other than administrators or classroom
  teachers, full-time librarians, full-time school counselors
  certified under Subchapter B, Chapter 21, or full-time school
  nurses; and
               (2)  the product of $250 multiplied by the number of
  part-time center employees, other than administrators or teachers,
  librarians, school counselors certified under Subchapter B,
  Chapter 21, or school nurses. 
         (b)  A determination by the commissioner under Subsection
  (a) is final and may not be appealed.
         SECTION 21.  Subchapter A, Chapter 49, Education Code, is
  amended by adding Section 49.0041 to read as follows:
         Sec. 49.0041.  LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT
  AFTER REVIEW NOTIFICATION. If the commissioner determines that a
  school district has a local revenue level in excess of entitlement
  after the date the commissioner sends notification for the school
  year under Section 49.004(a), the commissioner shall include the
  amount of the district's local revenue level that exceeded the
  level established under Section 48.257 for that school year in the
  annual review for the following school year of the district's local
  revenue levels under Section 49.004(a).
         SECTION 22.  Section 49.054(b), Education Code, is amended
  to read as follows:
         (b)  A consolidated [Except as provided by Subsection (c), a]
  district under this subchapter [receiving incentive aid payments
  under this section] is [not] entitled to incentive aid under
  Subchapter G, Chapter 13.
         SECTION 23.  Section 48.302, Education Code, is transferred
  to Subchapter J, Chapter 301, Labor Code, redesignated as Section
  301.172, Labor Code, and amended to read as follows:
         Sec. 301.172  [48.302].  SUBSIDY FOR HIGH SCHOOL EQUIVALENCY
  EXAMINATION FOR CERTAIN INDIVIDUALS.  (a)  From funds appropriated
  for this purpose, the commission [In this section, "commission"
  means the Texas Workforce Commission.
         [(b)  The agency] shall [enter into a memorandum of
  understanding with the commission for the agency to transfer to the
  commission funds specifically appropriated to the agency for the
  commission to] provide to an individual who is 21 years of age or
  older a subsidy in an amount equal to the cost of taking one high
  school equivalency examination administered under Section 7.111,
  Education Code.
         (b) [(c)]  The commission shall adopt rules to implement the
  subsidy program described by Subsection (a) [(b)], including rules
  regarding eligibility requirements.
         SECTION 24.  Section 822.201(b), Government Code, is amended
  to read as follows:
         (b)  "Salary and wages" as used in Subsection (a) means:
               (1)  normal periodic payments of money for service the
  right to which accrues on a regular basis in proportion to the
  service performed;
               (2)  amounts by which the member's salary is reduced
  under a salary reduction agreement authorized by Chapter 610;
               (3)  amounts that would otherwise qualify as salary and
  wages under Subdivision (1) but are not received directly by the
  member pursuant to a good faith, voluntary written salary reduction
  agreement in order to finance payments to a deferred compensation
  or tax sheltered annuity program specifically authorized by state
  law or to finance benefit options under a cafeteria plan qualifying
  under Section 125 of the Internal Revenue Code of 1986, if:
                     (A)  the program or benefit options are made
  available to all employees of the employer; and
                     (B)  the benefit options in the cafeteria plan are
  limited to one or more options that provide deferred compensation,
  group health and disability insurance, group term life insurance,
  dependent care assistance programs, or group legal services plans;
               (4)  performance pay awarded to an employee by a school
  district as part of a total compensation plan approved by the board
  of trustees of the district and meeting the requirements of
  Subsection (e);
               (5)  the benefit replacement pay a person earns under
  Subchapter H, Chapter 659, except as provided by Subsection (c);
               (6)  stipends paid to teachers in accordance with
  former Section 21.410, 21.411, 21.412, or 21.413, Education Code;
               (7)  amounts by which the member's salary is reduced or
  that are deducted from the member's salary as authorized by
  Subchapter J, Chapter 659;
               (8)  a merit salary increase made under Section 51.962,
  Education Code;
               (9)  amounts received under the relevant parts of the
  educator excellence awards program under Subchapter O, Chapter 21,
  Education Code, or a mentoring program under Section 21.458,
  Education Code, that authorize compensation for service;
               (10)  salary amounts designated as health care
  supplementation by an employee under Subchapter D, Chapter 22,
  Education Code; [and]
               (11)  to the extent required by Sections 3401(h) and
  414(u)(12), Internal Revenue Code of 1986, differential wage
  payments received by an individual from an employer on or after
  January 1, 2009, while the individual is performing qualified
  military service as defined by Section 414(u), Internal Revenue
  Code of 1986; and 
               (12)  increased compensation paid to a teacher by a
  school district using funds received by the district under the
  teacher incentive allotment under Section 48.112, Education Code.
         SECTION 25.  (a) The following provisions of the Education
  Code are repealed:
               (1)  Sections 12.133(d), (d-1), and (e);
               (2)  Section 25.038;
               (3)  Sections 25.039(b) and (c);
               (4)  Section 48.154; and
               (5)  Sections 49.054(a) and (c).
         (b)  The following provisions, which amended Section 42.006,
  Education Code, are repealed:
               (1)  Section 2, Chapter 1036 (H.B. 548), Acts of the
  86th Legislature, Regular Session, 2019; and
               (2)  Section 8, Chapter 1060 (H.B. 1051), Acts of the
  86th Legislature, Regular Session, 2019.
         SECTION 26.  To the extent of any conflict, this Act prevails
  over another Act of the 87th Legislature, Regular Session, 2021,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 27.  This Act takes effect September 1, 2021.