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  88S30762 MM-D
 
  By: Buckley H.B. No. 1
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to primary and secondary education, including the
  certification, compensation, and health coverage of certain public
  school employees, the public school finance system, special
  education in public schools, the establishment of an education
  savings account program, measures to support the education of
  public school students that include certain educational grant
  programs, reading instruction, and early childhood education, the
  provision of virtual education, and public school accountability.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. CHANGES RELATED TO PUBLIC SCHOOL EDUCATORS EFFECTIVE FOR
  2024-2025 SCHOOL YEAR
         SECTION 1.01.  Section 19.009(d-2), Education Code, is
  amended to read as follows:
         (d-2)  Beginning with the 2009-2010 school year, the
  district shall increase the [monthly] salary of each classroom
  teacher, full-time speech pathologist, full-time librarian,
  full-time school counselor certified under Subchapter B, Chapter
  21, and full-time school nurse employed by the district by the
  greater of:
               (1)  $80 per month; or
               (2)  the maximum uniform amount per month that, when
  combined with any resulting increases in the amount of
  contributions made by the district for social security coverage for
  the specified employees or by the district on behalf of the
  specified employees under Section 825.405, Government Code, may be
  provided using an amount equal to the product of $60 multiplied by
  the number of students in weighted average daily attendance in the
  district during the 2009-2010 school year.
         SECTION 1.02.  Subchapter A, Chapter 21, Education Code, is
  amended by adding Section 21.010 to read as follows:
         Sec. 21.010.  TEACHER POSITION DATA COLLECTION. The agency
  shall collect data from school districts and open-enrollment
  charter schools for the recruitment and retention of classroom
  teachers, including the classification, grade level, subject area,
  duration, and other relevant information regarding vacant teaching
  positions in a district or school. The data may be collected using
  the Public Education Information Management System (PEIMS) or
  another reporting mechanism specified by the agency.
         SECTION 1.03.  Subchapter B, Chapter 21, Education Code, is
  amended by adding Section 21.0411 to read as follows:
         Sec. 21.0411.  WAIVER OR PAYMENT OF CERTAIN EXAMINATION AND
  CERTIFICATION FEES. (a) Notwithstanding a rule adopted under
  Section 21.041(c), the board shall, for a person applying for a
  certification to teach established under this subchapter, waive:
               (1)  a certification examination fee imposed by the
  board for the first administration of the examination to the
  person; and
               (2)  a fee associated with the application for
  certification by the person.
         (b)  The board shall pay to a vendor that administers a
  certification examination required for certification to teach
  under this subchapter a fee assessed by that vendor for the
  examination of a person applying for a certification to teach
  established under this subchapter for the first administration of
  the examination to the person.
         SECTION 1.04.  Section 21.054, Education Code, is amended by
  amending Subsections (a) and (i) and adding Subsection (i-1) to
  read as follows:
         (a)  The board shall propose rules establishing a process for
  identifying continuing education courses and programs that fulfill
  educators' continuing education requirements, including
  opportunities for educators to receive micro-credentials, as
  provided by Subsection (i), in:
               (1)  fields of study related to the educator's
  certification class; or
               (2)  digital teaching [as provided by Subsection (i)].
         (i)  The board shall propose rules establishing a program to
  issue micro-credentials in fields of study related to an educator's
  certification class or in digital teaching. The agency shall
  approve continuing education providers to offer micro-credential
  courses. A micro-credential received by an educator shall be
  recorded on the agency's Educator Certification Online System
  (ECOS) and included as part of the educator's public certification
  records.
         (i-1)  In proposing rules under Subsection (i) for
  micro-credentials related to digital teaching, the board shall
  engage relevant stakeholders. 
         SECTION 1.05.  Section 21.105, Education Code, is amended by
  amending Subsection (c) and adding Subsection (g) to read as
  follows:
         (c)  Subject to Subsections (e), [and] (f), and (g), on
  written complaint by the employing district, the State Board for
  Educator Certification may impose sanctions against a teacher
  employed under a probationary contract who:
               (1)  resigns;
               (2)  fails without good cause to comply with Subsection
  (a) or (b); and
               (3)  fails to perform the contract.
         (g)  The State Board for Educator Certification may not
  impose a sanction under Subsection (c) against a teacher who
  relinquishes a position under a probationary contract and leaves
  the employment of the district after the 45th day before the first
  day of instruction for the upcoming school year in violation of
  Subsection (a) and without the consent of the board of trustees
  under Subsection (b) if the teacher's failure to comply with
  Subsection (a) was due to:
               (1)  a serious illness or health condition of the
  teacher or a close family member of the teacher;
               (2)  the teacher's relocation because the teacher's
  spouse or a partner who resides with the teacher changes employers;
               (3)  a significant change in the needs of the teacher's
  family in a manner that requires the teacher to:
                     (A)  relocate; or 
                     (B)  forgo employment during a period of required
  employment under the teacher's contract; or
               (4)  the teacher's reasonable belief that the teacher
  had written permission from the school district's administration to
  resign.
         SECTION 1.06.  Section 21.160, Education Code, is amended by
  amending Subsection (c) and adding Subsection (g) to read as
  follows:
         (c)  Subject to Subsections (e), [and] (f), and (g), on
  written complaint by the employing district, the State Board for
  Educator Certification may impose sanctions against a teacher who
  is employed under a continuing contract that obligates the district
  to employ the person for the following school year and who:
               (1)  resigns;
               (2)  fails without good cause to comply with Subsection
  (a) or (b); and
               (3)  fails to perform the contract.
         (g)  The State Board for Educator Certification may not
  impose a sanction under Subsection (c) against a teacher who
  relinquishes a position under a continuing contract and leaves the
  employment of the district after the 45th day before the first day
  of instruction of the upcoming school year in violation of
  Subsection (a) and without the consent of the board of trustees
  under Subsection (b) if the teacher's failure to comply with
  Subsection (a) was due to:
               (1)  a serious illness or health condition of the
  teacher or a close family member of the teacher;
               (2)  the teacher's relocation because the teacher's
  spouse or a partner who resides with the teacher changes employers;
               (3)  a significant change in the needs of the teacher's
  family in a manner that requires the teacher to:
                     (A)  relocate; or 
                     (B)  forgo employment during a period of required
  employment under the teacher's contract; or
               (4)  the teacher's reasonable belief that the teacher
  had written permission from the school district's administration to
  resign.
         SECTION 1.07.  Section 21.210, Education Code, is amended by
  amending Subsection (c) and adding Subsection (g) to read as
  follows:
         (c)  Subject to Subsections (e), [and] (f), and (g), on
  written complaint by the employing district, the State Board for
  Educator Certification may impose sanctions against a teacher who
  is employed under a term contract that obligates the district to
  employ the person for the following school year and who:
               (1)  resigns;
               (2)  fails without good cause to comply with Subsection
  (a) or (b); and
               (3)  fails to perform the contract.
         (g)  The State Board for Educator Certification may not
  impose a sanction under Subsection (c) against a teacher who
  relinquishes a position under a term contract and leaves the
  employment of the district after the 45th day before the first day
  of instruction of the upcoming school year in violation of
  Subsection (a) and without the consent of the board of trustees
  under Subsection (b) if the teacher's failure to comply with
  Subsection (a) was due to:
               (1)  a serious illness or health condition of the
  teacher or a close family member of the teacher;
               (2)  the teacher's relocation because the teacher's
  spouse or a partner who resides with the teacher changes employers;
               (3)  a significant change in the needs of the teacher's
  family in a manner that requires the teacher to:
                     (A)  relocate; or 
                     (B)  forgo employment during a period of required
  employment under the teacher's contract; or
               (4)  the teacher's reasonable belief that the teacher
  had written permission from the school district's administration to
  resign.
         SECTION 1.08.  Section 21.257, Education Code, is amended by
  amending Subsection (a) and adding Subsection (f) to read as
  follows:
         (a)  Except as provided by Subsection (f), not [Not] later
  than the 60th day after the date on which the commissioner receives
  a teacher's written request for a hearing, the hearing examiner
  shall complete the hearing and make a written recommendation that:
               (1)  includes proposed findings of fact and conclusions
  of law; and
               (2)  may include a proposal for granting relief.
         (f)  The hearing examiner may dismiss a hearing before
  completing the hearing or making a written recommendation if:
               (1)  the teacher requests the dismissal;
               (2)  the school district withdraws the proposed
  decision that is the basis of the hearing; or
               (3)  the teacher and school district request the
  dismissal after reaching a settlement regarding the proposed
  decision that is the basis of the hearing.
         SECTION 1.09.  Sections 21.3521(a), (c), and (e), Education
  Code, are amended to read as follows:
         (a)  Subject to Subsection (b), a school district or
  open-enrollment charter school may designate a classroom teacher as
  a master, exemplary, [or] recognized, or acknowledged teacher for a
  five-year period based on the results from single year or multiyear
  appraisals that comply with Section 21.351 or 21.352.
         (c)  Notwithstanding performance standards established
  under Subsection (b), a classroom teacher that holds a National
  Board Certification issued by the National Board for Professional
  Teaching Standards may be designated as nationally board certified
  [recognized].
         (e)  The agency shall develop and provide technical
  assistance for school districts and open-enrollment charter
  schools that request assistance in implementing a local optional
  teacher designation system, including:
               (1)  providing assistance in prioritizing high needs
  campuses;
               (2)  providing examples or models of local optional
  teacher designation systems to reduce the time required for a
  district or school to implement a teacher designation system;
               (3)  establishing partnerships between districts and
  schools that request assistance and districts and schools that have
  implemented a teacher designation system;
               (4)  applying the performance and validity standards
  established by the commissioner under Subsection (b);
               (5)  providing centralized support for the analysis of
  the results of assessment instruments administered to district
  students; and
               (6)  facilitating effective communication on and
  promotion of local optional teacher designation systems.
         SECTION 1.10.  Subchapter H, Chapter 21, Education Code, is
  amended by adding Section 21.3522 to read as follows:
         Sec. 21.3522.  LOCAL OPTIONAL TEACHER DESIGNATION SYSTEM
  GRANT PROGRAM.  (a)  From funds appropriated or otherwise
  available for the purpose, the agency shall establish and
  administer a grant program to provide money and technical
  assistance to:
               (1)  expand implementation of local optional teacher
  designation systems under Section 21.3521; and
               (2)  increase the number of classroom teachers eligible
  for a designation under that section.
         (b)  A grant awarded under this section must:
               (1)  meet the needs of individual school districts; and
               (2)  enable regional leadership capacity.
         (c)  The commissioner may adopt rules to establish and
  administer the grant program under this section.
         SECTION 1.11.  Section 21.402, Education Code, is amended by
  amending Subsections (a) and (g) and adding Subsections (a-1),
  (c-2), (i), (j), and (k) to read as follows:
         (a)  Except as provided by Subsection (c-2) [(e-1) or (f)], a
  school district must pay each employee who is employed as a
  classroom teacher, full-time librarian, full-time school counselor
  certified under Subchapter B, or full-time school nurse not less
  than the highest annual minimum [minimum monthly] salary described
  by the following schedule applicable to [, based on] the employee's
  certification, if any, and years [level] of experience:
               (1)  for an employee with less than five years of
  experience who:
                     (A)  holds no certification  $35,000;
                     (B)  holds a teacher intern, teacher trainee, or
  probationary certificate issued under Subchapter B  $37,000;
                     (C)  holds the base certificate required under
  Section 21.003(a) for employment in the employee's position other
  than a certificate described by Paragraph (B)  $40,000;
                     (D)  holds a designation under Section 21.3521  
  $43,000; or
                     (E)  holds a residency educator certificate or has
  successfully completed a residency partnership program under
  Subchapter R $43,000;
               (2)  for an employee with at least five years of
  experience who holds:
                     (A)  no certification  $45,000;
                     (B)  a teacher intern, teacher trainee, or
  probationary certificate issued under Subchapter B  $47,000;
                     (C)  the base certificate required under Section
  21.003(a) for employment in the employee's position other than a
  certificate described by Paragraph (B)  $50,000; or
                     (D)  a designation under Section 21.3521  
  $53,000; or
               (3)  for an employee with at least 10 years of
  experience who holds:
                     (A)  no certification  $55,000;
                     (B)  a teacher intern, teacher trainee, or
  probationary certificate issued under Subchapter B  $57,000;
                     (C)  the base certificate required under Section
  21.003(a) for employment in the employee's
  position . . .. $60,000; or
                     (D)  a designation under Section 21.3521
  $63,000 [in addition to other factors, as determined by
  commissioner rule, determined by the following formula:
  [MS = SF x FS
  [where:
         ["MS" is the minimum monthly salary;
         ["SF" is the applicable salary factor specified by Subsection
  (c); and
         ["FS" is the amount, as determined by the commissioner under
  Subsection (b), of the basic allotment as provided by Section
  48.051(a) or (b) for a school district with a maintenance and
  operations tax rate at least equal to the state maximum compressed
  tax rate, as defined by Section 48.051(a)].
         (a-1)  For purposes of Subsection (a), a full-time school
  nurse is considered to hold the base certificate required under
  Section 21.003(a) for employment as a school nurse, regardless of
  the other certifications held by the nurse.
         (c-2)  A school district is not required to pay an employee
  who is employed as a classroom teacher, full-time librarian,
  full-time school counselor certified under Subchapter B, or
  full-time school nurse the minimum salary required under Subsection
  (a) for the school year following a school year during which the
  district reviews the employee's performance and finds the
  employee's performance unsatisfactory.
         (g)  The commissioner may adopt rules to govern the
  application of this section, including rules that:
               (1)  require the payment of a minimum salary under this
  section to a person employed in more than one capacity for which a
  minimum salary is provided and whose combined employment in those
  capacities constitutes full-time employment; and
               (2)  specify the credentials a person must hold to be
  considered a [speech pathologist or] school nurse under this
  section.
         (i)  A school district that increases employee compensation
  in the 2024-2025 school year to comply with Subsection (a), as
  amended by _.B. ___, 88th Legislature, 3rd Called Session, 2023, is
  providing compensation for services rendered independently of an
  existing employment contract applicable to that year and is not in
  violation of Section 53, Article III, Texas Constitution. A school
  district that does not meet the requirements of Subsection (a) in
  the 2024-2025 school year may satisfy the requirements of this
  section by providing an employee a one-time bonus payment during
  the 2025-2026 school year in an amount equal to the difference
  between the compensation earned by the employee during the
  2024-2025 school year and the compensation the employee should have
  received during that school year if the district had complied with
  Subsection (a).
         (j)  Notwithstanding the minimum salary schedule under
  Subsection (a), a school district that increases the amount a
  classroom teacher, full-time librarian, full-time school counselor
  certified under Subchapter B, or full-time school nurse is
  compensated during the 2024-2025 school year by at least $8,000
  more than the amount the employee was compensated during the
  2023-2024 school year complies with the requirements of this
  section for the 2024-2025 school year.
         (k)  Subsections (i) and (j) and this subsection expire
  September 1, 2027.
         SECTION 1.12.  The heading to Section 21.403, Education
  Code, is amended to read as follows:
         Sec. 21.403.  DETERMINATION OF YEARS OF EXPERIENCE
  [PLACEMENT ON MINIMUM SALARY SCHEDULE].
         SECTION 1.13.  Sections 21.403(b) and (c), Education Code,
  are amended to read as follows:
         (b)  For each year of work experience required for
  certification in a career or technological field, up to a maximum of
  two years, a certified career or technology education teacher is
  entitled to [salary step] credit as if the work experience were
  teaching experience.
         (c)  The commissioner shall adopt rules for determining the
  experience for which a teacher, librarian, school counselor, or
  nurse is to be given credit for purposes of the minimum salary
  schedule under Section 21.402(a) [in placing the teacher,
  librarian, school counselor, or nurse on the minimum salary
  schedule].  A district shall credit the teacher, librarian, school
  counselor, or nurse for each year of experience without regard to
  whether the years are consecutive.
         SECTION 1.14.  Subchapter I, Chapter 21, Education Code, is
  amended by adding Sections 21.416 and 21.417 to read as follows:
         Sec. 21.416.  EMPLOYED RETIREE TEACHER REIMBURSEMENT GRANT
  PROGRAM. (a)  From funds appropriated or otherwise available, the
  commissioner shall establish and administer a grant program to
  award funds to reimburse a school district, an open-enrollment
  charter school, the Windham School District, the Texas School for
  the Deaf, or the Texas School for the Blind and Visually Impaired
  that hires a teacher, including an educator who provides services
  related to special education, who retired before September 1, 2022,
  for the increased contributions to the Teacher Retirement System of
  Texas associated with hiring the retired teacher.
         (b)  In appropriating money for grants awarded under this
  section, the legislature may provide for, modify, or limit amounts
  appropriated for that purpose in the General Appropriations Act,
  including by: 
               (1)  providing, notwithstanding Subsection (a), a date
  or date range other than September 1, 2022, before which a teacher
  must have retired for a school district, an open-enrollment charter
  school, the Windham School District, the Texas School for the Deaf,
  or the Texas School for the Blind and Visually Impaired that hires
  the teacher to be eligible; or
               (2)  limiting eligibility to a school district or
  open-enrollment charter school that hires a retired teacher:
                     (A)  who holds a certain certification;
                     (B)  to teach a certain subject or grade; 
                     (C)  in a certain geographical area; or
                     (D)  to provide instruction to certain students,
  including to students with disabilities.
         (c)  The commissioner shall proportionally reduce the amount
  of funds awarded to school districts, open-enrollment charter
  schools, the Windham School District, the Texas School for the
  Deaf, and the Texas School for the Blind and Visually Impaired under
  this section if the number of grant applications by eligible
  districts or schools exceeds the number of grants the commissioner
  could award with the money appropriated or otherwise available for
  the purpose.
         (d)  A school district, an open-enrollment charter school,
  the Windham School District, the Texas School for the Deaf, or the
  Texas School for the Blind and Visually Impaired may use funds
  received under this section to make required payments under Section
  825.4092, Government Code.
         Sec. 21.417.  ELECTION BY TEACHER TO USE UNPAID LEAVE. The
  board of trustees of a school district shall adopt a policy that
  provides a classroom teacher employed by the district the option to
  elect not to take the teacher's paid personal leave concurrently
  with unpaid leave the teacher is entitled to take under the Family
  and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.) for
  an absence due to pregnancy or the birth or adoption of a child.
         SECTION 1.15.  Section 21.4552(d), Education Code, is
  amended to read as follows:
         (d)  From funds appropriated for that purpose, a teacher who
  attends a literacy achievement academy is entitled to receive a
  stipend in the amount determined by the commissioner.  A stipend
  received under this subsection is not considered in determining
  whether a school district is paying the teacher the minimum
  [monthly] salary under Section 21.402.
         SECTION 1.16.  Section 21.4553(d), Education Code, is
  amended to read as follows:
         (d)  From funds appropriated for that purpose, a teacher who
  attends a mathematics achievement academy is entitled to receive a
  stipend in the amount determined by the commissioner.  A stipend
  received under this subsection is not considered in determining
  whether a district is paying the teacher the minimum [monthly]
  salary under Section 21.402.
         SECTION 1.17.  Section 21.4555(f), Education Code, is
  amended to read as follows:
         (f)  From funds available for that purpose, a teacher who
  attends a civics training program may receive a stipend in an amount
  determined by the commissioner.  A stipend received under this
  section is not included in determining whether a district is paying
  the teacher the minimum [monthly] salary under Section 21.402.
         SECTION 1.18.  Subchapter J, Chapter 21, Education Code, is
  amended by adding Sections 21.466 and 21.467 to read as follows:
         Sec. 21.466.  TEACHER QUALITY ASSISTANCE. (a) From funds
  appropriated or otherwise available for the purpose, the agency
  shall develop training for and provide technical assistance to
  school districts and open-enrollment charter schools regarding:
               (1)  strategic compensation, staffing, and scheduling
  efforts that improve professional growth, teacher leadership
  opportunities, and staff retention;
               (2)  programs that encourage high school students or
  other members of the community in the area served by the district to
  become teachers, including available teacher apprenticeship
  programs; and
               (3)  programs or strategies that school leaders may use
  to establish clear and attainable behavior expectations while
  proactively supporting students.
         (b)  From funds appropriated or otherwise available, the
  agency shall provide grants to school districts and open-enrollment
  charter schools to implement initiatives developed under this
  section.
         Sec. 21.467.  TEACHER TIME STUDY. (a) From funds
  appropriated or otherwise available for the purpose, the agency
  shall develop and maintain a technical assistance program to
  support school districts and open-enrollment charter schools in:
               (1)  studying how the district's or school's staff and
  student schedules, required noninstructional duties for classroom
  teachers, and professional development requirements for educators
  are affecting the amount of time classroom teachers work each week;
  and
               (2)  refining the schedules for students or staff as
  necessary to ensure teachers have sufficient time during normal
  work hours to fulfill all job duties, including addressing the
  needs of students.
         (b)  The agency shall periodically make findings and
  recommendations for best practices publicly available using
  information from participating school districts and
  open-enrollment charter schools.
         SECTION 1.19.  Chapter 21, Education Code, is amended by
  adding Subchapter R to read as follows:
  SUBCHAPTER R. TEXAS TEACHER RESIDENCY PARTNERSHIP PROGRAM
         Sec. 21.901.  DEFINITIONS. In this subchapter:
               (1)  "Board" means the State Board for Educator
  Certification.
               (2)  "Cooperating teacher" means a classroom teacher
  who:
                     (A)  has at least three full school years of
  teaching experience with a superior record of assisting students in
  achieving improvement in student performance;
                     (B)  is employed by a school district or
  open-enrollment charter school participating in a partnership
  program under this subchapter and paired with a partnership
  resident at the district or school; and
                     (C)  provides coaching to a partnership resident
  in the teacher's classroom.
               (3)  "Partnership program" means a Texas Teacher
  Residency Partnership Program established at a school district or
  open-enrollment charter school in accordance with this subchapter.
               (4)  "Partnership resident" means a person enrolled in
  a qualified educator preparation program participating in a
  partnership program as a candidate for educator certification.
               (5)  "Qualified educator preparation program" means an
  educator preparation program approved in accordance with rules
  proposed under Section 21.903.
         Sec. 21.902.  ESTABLISHMENT OF PARTNERSHIP PROGRAM. (a)
  The commissioner shall establish the Texas Teacher Residency
  Partnership Program to enable qualified educator preparation
  programs to form partnerships with school districts or
  open-enrollment charter schools to provide residency positions to
  partnership residents at the district or school.
         (b)  The partnership program must be designed to:
               (1)  allow partnership residents to receive
  field-based experience working with cooperating teachers in
  prekindergarten through grade 12 classrooms; and
               (2)  gradually increase the amount of time a
  partnership resident spends engaging in instructional
  responsibilities, including observation, co-teaching, and
  lead-teaching responsibilities.
         Sec. 21.903.  QUALIFIED EDUCATOR PREPARATION PROGRAMS. The
  board shall propose rules specifying the requirements for board
  approval of an educator preparation program as a qualified educator
  preparation program for purposes of this subchapter.  The rules
  must require an educator preparation program to:
               (1)  use research-based best practices for recruiting
  and admitting candidates into the educator preparation program to
  participate in the partnership program;
               (2)  integrate curriculum, classroom practice, and
  formal observation and feedback;
               (3)  use multiple assessments to measure a partnership
  resident's progress in the partnership program; and
               (4)  partner with a school district or open-enrollment
  charter school.
         Sec. 21.904.  REQUIREMENTS FOR PARTICIPATING DISTRICTS AND
  SCHOOLS. (a)  A school district or open-enrollment charter school
  participating in the partnership program shall:
               (1)  enter into a written agreement with a qualified
  educator preparation program to:
                     (A)  provide a partnership resident with at least
  one school year of clinical teaching in a residency position at the
  district or school in the subject area and grade level for which the
  resident seeks certification; and
                     (B)  pair the partnership resident with a
  cooperating teacher;
               (2)  specify the amount of money the district receives
  under Section 48.157 that the district will provide to the program;
               (3)  only use money received under Section 48.157 to:
                     (A)  implement the partnership program;
                     (B)  provide compensation to:
                           (i)  partnership residents in residency
  positions at the district or school; and
                           (ii)  cooperating teachers who are paired
  with partnership residents at the district or school; and
                     (C)  provide an amount equal to at least 10
  percent of the funding received by the district or school to the
  qualified educator preparation program with which the district or
  school partners;
               (4)  pay at least 50 percent of the compensation paid to
  partnership residents using money other than money received under
  Section 48.157; and
               (5)  provide any information required by the agency
  regarding the district's or school's implementation of the program.
         (b)  A school district or open-enrollment charter school may
  only pair a partnership resident with a cooperating teacher who
  agrees to participate in that role in a partnership program at the
  district or school partnership program.
         (c)  A partnership resident may not serve as a teacher of
  record, as that term is defined by Section 21.051.
         Sec. 21.905.  RESIDENCY EDUCATOR CERTIFICATE. The board
  shall propose rules specifying the requirements for the issuance of
  a residency educator certificate to a candidate who has
  successfully completed a qualified educator preparation program
  under Section 21.903.  The rules may not require the resident to
  pass a pedagogy examination unless the examination tests
  subject-specific content appropriate for the grade and subject area
  for which the candidate seeks certification.
         Sec. 21.906.  AGENCY SUPPORT. The agency shall provide
  technical assistance, planning, and support to school districts,
  open-enrollment charter schools, and qualified educator
  preparation programs, which must include:
               (1)  providing model forms and agreements a district,
  school, or educator preparation program may use to comply with the
  requirements of this subchapter; and
               (2)  support for district and school strategic staffing
  and compensation models to incentivize participation in a
  partnership program.
         Sec. 21.907.  AUTHORITY TO ACCEPT CERTAIN FUNDS. The
  commissioner may solicit and accept gifts, grants, and donations
  from public and private entities to use for the purposes of this
  subchapter.
         Sec. 21.908.  RULES; NEGOTIATED RULEMAKING COMMITTEE. (a)
  The board shall propose rules necessary to implement this
  subchapter, including, subject to Subsection (b), rules under
  Sections 21.903 and 21.905.
         (b)  In using negotiated rulemaking procedures under Chapter
  2008, Government Code, for any proposed rule related to the
  implementation of Section 21.903 or 21.905, the board must appoint
  to the negotiated rulemaking committee persons representing
  institutions of higher education, as defined by Section 61.003.
         (c)  The commissioner shall adopt rules as necessary to
  implement this subchapter after considering the recommendations of
  the negotiated rulemaking committee appointed under Subsection
  (b).
         SECTION 1.20.  Section 29.153(b), Education Code, is amended
  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 homeless, 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:
                     (A)  the conservatorship of the Department of
  Family and Protective Services following an adversary hearing held
  as provided by Section 262.201, Family Code; or
                     (B)  foster care in another state or territory, if
  the child resides in this state; [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 a person employed as a classroom
  teacher at a public primary or secondary school in the school
  district that offers a prekindergarten class under this section.
         SECTION 1.21.  Section 30.102(b), Education Code, is amended
  to read as follows:
         (b)  A classroom teacher, full-time librarian, full-time
  school counselor certified under Subchapter B, Chapter 21, or
  full-time school nurse employed by the department is entitled to
  receive as a minimum salary the [monthly] salary specified by
  Section 21.402. A classroom teacher, full-time librarian,
  full-time school counselor, or full-time school nurse may be paid,
  from funds appropriated to the department, a salary in excess of the
  minimum specified by that section, but the salary may not exceed the
  rate of pay for a similar position in the public schools of an
  adjacent school district.
         SECTION 1.22.  Section 33.009(h), Education Code, is amended
  to read as follows:
         (h)  From funds appropriated for that purpose, a school
  counselor who attends the academy under this section is entitled to
  receive a stipend in the amount determined by the coordinating
  board. If funds are available after all eligible school counselors
  have received a stipend under this subsection, the coordinating
  board shall pay a stipend in the amount determined by the
  coordinating board to a teacher who attends the academy under this
  section. A stipend received under this subsection is not
  considered in determining whether a district is paying the school
  counselor or teacher the minimum [monthly] salary under Section
  21.402.
         SECTION 1.23.  Sections 48.112(c) and (d), Education Code,
  are amended to read as follows:
         (c)  For each classroom teacher with a teacher designation
  under Section 21.3521 employed by a school district, the school
  district is entitled to an allotment equal to the following
  applicable base amount increased by the high needs and rural factor
  as determined under Subsection (d):
               (1)  $12,000, or an increased amount not to exceed
  $36,000 [$32,000] as determined under Subsection (d), for each
  master teacher;
               (2)  $9,000 [$6,000], or an increased amount not to
  exceed $25,000 [$18,000] as determined under Subsection (d), for
  each exemplary teacher; [and]
               (3)  $5,000 [$3,000], or an increased amount not to
  exceed $15,000 [$9,000] as determined under Subsection (d), for
  each recognized teacher; and
               (4)  $3,000, or an increased amount not to exceed
  $9,000 as determined under Subsection (d), for each:
                     (A)  acknowledged teacher; or
                     (B)  teacher designated as nationally board
  certified.
         (d)  The high needs and rural factor is determined by
  multiplying the following applicable amounts by the average of the
  point value assigned to each student at a district campus under
  Subsection (e):
               (1)  $6,000 [$5,000] for each master teacher;
               (2)  $4,000 [$3,000] for each exemplary teacher; [and]
               (3)  $2,500 [$1,500] for each recognized teacher; and
               (4)  $1,500 for each:
                     (A)  acknowledged teacher; or
                     (B)  teacher designated as nationally board
  certified.
         SECTION 1.24.  Subchapter D, Chapter 48, Education Code, is
  amended by adding Section 48.157 to read as follows:
         Sec. 48.157.  RESIDENCY PARTNERSHIP ALLOTMENT. (a)  In this
  section, "partnership program" and "partnership resident" have the
  meanings assigned by Section 21.901.
         (b)  For each partnership resident employed at a school
  district in a residency position under Subchapter R, Chapter 21,
  the district is entitled to an allotment equal to a base amount of
  $22,000 increased by the high needs and rural factor, as determined
  under Subsection (c), to an amount not to exceed $42,000.
         (c)  The high needs and rural factor is determined by
  multiplying $5,000 by the lesser of:
               (1)  the average of the point value assigned to each
  student at a district campus under Sections 48.112(e) and (f); or
               (2)  4.0.
         (d)  In addition to the funding under Subsection (b), a
  district that qualifies for an allotment under this section is
  entitled to an additional $2,000 for each partnership resident
  employed in a residency position at the district who is a candidate
  for special education or bilingual education certification.
         (e)  The Texas School for the Deaf and the Texas School for
  the Blind and Visually Impaired are entitled to an allotment under
  this section.  If the commissioner determines that assigning point
  values under Subsection (c) to students enrolled in the Texas
  School for the Deaf or the Texas School for the Blind and Visually
  Impaired is impractical, the commissioner may use the average point
  value assigned for those students' home districts for purposes of
  calculating the high needs and rural factor.
         SECTION 1.25.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.280 to read as follows:
         Sec. 48.280.  SALARY TRANSITION ALLOTMENT. (a) A school
  district is entitled to receive an annual salary transition
  allotment equal to the number of employees on the minimum salary
  schedule under Section 21.402 for the applicable school year
  multiplied by the difference, if that amount is greater than zero,
  between:
               (1)  the amount calculated under Subsection (b); and 
               (2)  the amount calculated under Subsection (c).
         (b)  The agency shall calculate a school district's value for
  Subsection (a)(1) by determining the difference between:
               (1)  the amount the district must pay in compensation
  for the current school year for employees on the minimum salary
  schedule under Section 21.402, as amended by _.B. ___, 88th
  Legislature, 3rd Called Session, 2023, divided by the total number
  of employees on the minimum salary schedule under that section for
  that school year; and
               (2)  the amount paid in compensation for the 2023-2024
  school year for employees on the minimum salary schedule under
  Section 21.402 divided by the total number of employees on the
  minimum salary schedule under that section for that school year.
         (c)  The agency shall calculate a school district's value for
  Subsection (a)(2) by determining the difference between:
               (1)  the total maintenance and operations revenue for
  the current school year divided by the total number of employees on
  the minimum salary schedule under Section 21.402 for that school
  year; and
               (2)  the total maintenance and operations revenue that
  would have been available to the district for the current school
  year using the basic allotment formula provided by Section 48.051
  and the small and mid-sized allotment formulas provided by Section
  48.101 as those sections existed on January 1, 2023, divided by the
  total number of employees on the minimum salary schedule under
  Section 21.402 for that school year.
         (d)  In calculating the values under this section for a
  school district or open-enrollment charter school to which Section
  21.402 does not apply, the agency shall include as employees on the
  minimum salary schedule under that section employees of the
  district or school who would have been on the minimum salary
  schedule under that section if the district or school were a school
  district to which that section applies.
         (e)  Before making a final determination of the amount of an
  allotment to which a school district is entitled under this
  section, the agency shall ensure each school district has an
  opportunity to review and submit revised information to the agency
  for purposes of calculating the values under Subsection (a).
         (f)  For purposes of this section, "compensation" includes
  contributions made to the Teacher Retirement System of Texas under
  Sections 825.4035 and 825.405, Government Code.
         SECTION 1.26.  The following provisions are repealed:
               (1)  Sections 21.402(b), (c), (c-1), (f), and (h),
  Education Code;
               (2)  Sections 21.403(a) and (d), Education Code;
               (3)  Subchapter Q, Chapter 21, Education Code;
               (4)  Section 48.114(b), Education Code; and
               (5)  Section 825.4092(f), Government Code.
         SECTION 1.27.  Not later than September 1, 2026, the
  commissioner of education, with the assistance of the executive
  director of the Teacher Retirement System of Texas and the
  comptroller of public accounts, shall make recommendations to the
  legislature to improve and coordinate pension contribution
  appropriations for public school employees.
         SECTION 1.28.  Section 21.257(f), Education Code, as added
  by this article, applies only to a hearing before a hearing examiner
  commenced on or after the effective date of this article.
         SECTION 1.29.  Immediately following the effective date of
  this article, a school district or open-enrollment charter school
  shall redesignate a teacher who holds a designation made under
  Section 21.3521, Education Code, before the effective date of this
  article, to reflect the teacher's designation under Section
  21.3521, Education Code, as amended by this article.  Funding
  provided to a school district under Section 48.112, Education Code,
  for a teacher who held a designation made under Section 21.3521,
  Education Code, as that section existed immediately before the
  effective date of this article, shall be increased to reflect the
  teacher's redesignation under Section 21.3521, Education Code, as
  amended by this article.
         SECTION 1.30.  Notwithstanding Section 21.903, Education
  Code, as added by this article, until the State Board for Educator
  Certification adopts rules specifying the requirements for
  approval of an educator preparation program as a qualified educator
  preparation program as required by that section, the commissioner
  of education may approve a program as a qualified educator
  preparation program for purposes of Subchapter R, Chapter 21,
  Education Code, as added by this article, if the commissioner
  determines that the program meets the requirements under Section
  21.903, Education Code, as added by this article.  An educator
  preparation program's designation as a qualified educator
  preparation program by the commissioner under this section remains
  effective until the first anniversary of the earliest effective
  date of a rule adopted by the State Board for Educator Certification
  under Section 21.903, Education Code, as added by this article.
         SECTION 1.31.  This article takes effect September 1, 2024.
  ARTICLE 2. CHANGES RELATED TO PUBLIC SCHOOL FINANCE EFFECTIVE FOR
  2023-2024 SCHOOL YEAR
         SECTION 2.01.  Section 12.106, Education Code, is amended by
  amending Subsection (d) and adding Subsections (d-1) and (d-2) to
  read as follows:
         (d)  Subject to Subsection (e), in addition to other amounts
  provided by this section, a charter holder is entitled to receive,
  for the open-enrollment charter school, funding per student in
  average daily attendance in an amount equal to the guaranteed level
  of state and local funds per student per cent of tax effort under
  Section 46.032(a) multiplied by the lesser of:
               (1)  the state average interest and sinking fund tax
  rate imposed by school districts for the current year; or
               (2)  a rate that would result in a total amount to which
  charter schools are entitled under this subsection for the current
  year equal to $300 [$60] million or a greater amount provided by
  appropriation.
         (d-1)  Notwithstanding Subsection (d)(2), the total amount
  that may be used to provide allotments under Subsection (d) may not
  exceed:
               (1)  for the 2023-2024 school year, $108 million;
               (2)  for the 2024-2025 school year, $156 million;
               (3)  for the 2025-2026 school year, $204 million; and
               (4)  for the 2026-2027 school year, $252 million.
         (d-2)  Subsection (d-1) and this subsection expire September
  1, 2028. 
         SECTION 2.02.  Subchapter Z, Chapter 29, Education Code, is
  amended by adding Section 29.935 to read as follows:
         Sec. 29.935.  UNIVERSITY OF TEXAS MCDONALD OBSERVATORY
  EDUCATION AND OUTREACH GRANT. (a)  From money appropriated for the
  Foundation School Program or otherwise made available for purposes
  of this section, the commissioner shall transfer the amount of $10
  million to The University of Texas at Austin to enhance education
  outreach and visitor experiences and engagement, particularly for
  students and educators, at The University of Texas McDonald
  Observatory at Mount Locke.
         (b)  Funds transferred under this section may only be used by
  The University of Texas McDonald Observatory at Mount Locke to:
               (1)  install new exhibits and renovate existing
  exhibits;
               (2)  modernize self-guided tours with the integration
  of technology;
               (3)  renovate and upgrade the observatory's theater and
  facilities;
               (4)  leverage technology to create first-class virtual
  experiences; and
               (5)  design in-person and virtual engagements for all
  ages with special consideration given to students and educators.
         (c)  The commissioner shall adopt rules as necessary to
  implement this section.
         (d)  This section expires September 1, 2025.
         SECTION 2.03.  Section 30.003, Education Code, is amended by
  amending Subsections (b) and (f-1) and adding Subsection (b-1) to
  read as follows:
         (b)  If the student is admitted to the school for a full-time
  program for the equivalent of two long semesters, the district's
  share of the cost is an amount equal to the dollar amount of
  maintenance and debt service taxes imposed by the district for that
  year, subject to Subsection (b-1), divided by the district's
  average daily attendance for the preceding year.
         (b-1)  For purposes of Subsection (b), the commissioner
  shall reduce the dollar amount of maintenance and debt service
  taxes imposed by the district for a year by the amount, if any, by
  which the district is required to reduce the district's local
  revenue level under Section 48.257 for that year.
         (f-1)  The commissioner shall determine the total amount
  that the Texas School for the Blind and Visually Impaired and the
  Texas School for the Deaf would have received from school districts
  in accordance with this section if the following provisions had not
  reduced the districts' share of the cost of providing education
  services:
               (1)  H.B. No. 1, Acts of the 79th Legislature, 3rd
  Called Session, 2006;
               (2)  Subsection (b-1) of this section;
               (3)  Section 45.0032;
               (4) [(3)]  Section 48.255; and
               (5) [(4)]  Section 48.2551.
         SECTION 2.04.  Subchapter B, Chapter 38, Education Code, is
  amended by adding Section 38.0631 to read as follows:
         Sec. 38.0631.  TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER
  TEXAS SCHOOL-BASED HEALTH CENTERS GRANT. (a)  From money
  appropriated for the Foundation School Program or otherwise made
  available for purposes of this section and in addition to other
  grants available under this subchapter, the commissioner shall
  transfer the amount of $20 million to the Texas Tech University
  Health Sciences Center to enhance the provision of telehealth
  services to public school students who receive services from
  school-based health centers located in partner schools that
  participate in the Texas Child Health Access through Telemedicine
  program operated by the Texas Child Mental Health Care Consortium
  established under Chapter 113, Health and Safety Code.
         (b)  Funds transferred under this section may only be used by
  the Texas Tech University Health Sciences Center to:
               (1)  establish health care delivery infrastructure to
  provide public school students the option of virtual health care
  clinic visits during school hours;
               (2)  develop a network of health care providers to
  facilitate direct access for public school students to health care
  providers through telehealth platforms; and
               (3)  establish partnerships with school districts.
         (c)  The commissioner shall adopt rules as necessary to
  implement this section.
         (d)  This section expires September 1, 2025.
         SECTION 2.05.  Sections 48.005(b), (e), and (f), Education
  Code, are amended to read as follows:
         (b)  A school district that experiences a decline of more
  than five [two] percent [or more] in average daily attendance shall
  be funded on the basis of[:
               [(1)  the actual average daily attendance of the
  preceding school year, if the decline is the result of the closing
  or reduction in personnel of a military base; or
               [(2)  subject to Subsection (e),] an average daily
  attendance of 95 [not to exceed 98] percent of the actual average
  daily attendance of the preceding school year[, if the decline is
  not the result of the closing or reduction in personnel of a
  military base].
         (e)  For each school year, the commissioner shall adjust the
  average daily attendance of school districts that are entitled to
  funding on the basis of an adjusted average daily attendance under
  Subsection (b) [(b)(2)] so that:
               (1)  all districts are funded on the basis of the same
  percentage of the preceding year's actual average daily attendance;
  and
               (2)  the total cost to the state does not exceed $50
  million [the amount specifically appropriated for that year for
  purposes of Subsection (b)(2)].
         (f)  An open-enrollment charter school is not entitled to
  funding based on an adjustment under Subsection (b) [(b)(2)].
         SECTION 2.06.  Sections 48.011(a-1), (d), and (e), Education
  Code, are amended to read as follows:
         (a-1)  The commissioner may modify dates relating to the
  adoption of a school district's maintenance and operations tax rate
  and, if applicable, an election required for the district to adopt
  that rate as necessary to implement the changes to the Foundation
  School Program and requirements relating to school district tax
  rates made by the 88th [H.B. 3, 86th] Legislature, 3rd Called 
  [Regular] Session, 2023 [2019].
         (d)  Beginning with the 2027-2028 [2021-2022] school year,
  the commissioner may not make an adjustment under Subsection (a) or
  (a-1).
         (e)  This section expires September 1, 2028 [2023].
         SECTION 2.07.  Section 48.051, Education Code, is amended by
  amending Subsections (a), (c), and (d) and adding Subsections
  (c-3), (c-4), (c-5), and (c-6) 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 $6,160 or] the amount that results
  from the following formula:
  A = B [$6,160] X TR/MCR
  where:
         "A" is the allotment to which a district is entitled;
         "B" is the base amount, which equals the greater of:
               (1)  $6,190;
               (2)  an amount equal to the district's base amount under
  this section for the preceding school year; or
               (3)  the amount appropriated under Subsection (b);
         "TR" is the district's tier one maintenance and operations
  tax rate, as provided by Section 45.0032; and
         "MCR" is the district's maximum compressed tax rate, as
  determined under Section 48.2551.
         (c)  During any school year for which the value of "A"
  determined [maximum amount of the basic allotment provided] under
  Subsection (a) or, if applicable, the sum of the value of "A" and
  the allotment under Section 48.101 to which the district is
  entitled, [or (b)] is greater than the value of "A" or, if
  applicable, the sum of the value of "A" and the allotment under
  Section 48.101 to which the district is entitled, [maximum amount
  provided] for the preceding school year, a school district must use
  at least 50 [30] percent of the amount[, if the amount is greater
  than zero,] that equals the product of the average daily attendance
  of the district multiplied by the amount of the difference between
  the district's funding under this chapter per student in average
  daily attendance, excluding the amounts described by Subsection
  (c-6), for the current school year and the preceding school year to
  increase the average total compensation per [provide compensation
  increases to] full-time district employee [employees] other than an
  administrator [administrators] as follows:
               (1)  75 percent must be used to increase the average
  total compensation per full-time district employee employed as
  [paid to] classroom teachers, full-time librarians, full-time
  school counselors certified under Subchapter B, Chapter 21, and
  full-time school nurses[, prioritizing differentiated compensation
  for classroom teachers with more than five years of experience];
  and
               (2)  25 percent may be used as determined by the
  district to increase the average total compensation per [paid to]
  full-time district employee who is not described by Subdivision (1)
  [employees].
         (c-3)  In calculating the average total compensation per
  full-time district employee under Subsection (c), a school district
  may not consider compensation paid to a district employee employed
  in a position described by that subsection who is added by the
  district for the current school year and that increases the ratio of
  those employees to students enrolled in the district compared to
  the preceding school year.
         (c-4)  If a school district increases employee compensation
  in a school year to comply with Subsection (c), as amended by
  _.B. ___, 88th Legislature, 3rd Called Session, 2023, the district
  is providing compensation for services rendered independently of an
  existing employment contract applicable to that year and is not a
  violation of Section 53, Article III, Texas Constitution.
         (c-5)  A school district that does not meet the requirements
  of Subsection (c) during a school year may satisfy the requirements
  of this section by providing a full-time district employee
  described by that subsection a one-time bonus payment during the
  following school year in an amount equal to the difference between
  the compensation earned by the employee and the compensation the
  employee should have received during the school year if the
  district had complied with Subsection (c).
         (c-6)  For purposes of determining the amount of a school
  district's funding under this chapter under Subsection (c), the
  commissioner shall exclude:
               (1)  money received from the state instructional
  materials and technology fund under Section 31.021;
               (2)  the special education full individual and initial
  evaluation allotment under Section 48.1022;
               (3)  the college, career, and military readiness
  outcomes bonuses under Section 48.110;
               (4)  the school safety allotment under Section 48.115;
  and
               (5)  the allotments under Subchapter D, other than the
  allotments under Sections 48.153 and 48.154.
         (d)  In this section, "compensation" includes:
               (1)  benefits such as insurance premiums; and
               (2)  contributions to the Teacher Retirement System of
  Texas under Section 825.4035, Government Code.
         SECTION 2.08.  Subchapter C, Chapter 48, Education Code, is
  amended by adding Section 48.1022 to read as follows:
         Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
  EVALUATION. For each student for whom a school district conducts a
  full individual and initial evaluation under Section 29.004 or 20
  U.S.C. Section 1414(a)(1), the district is entitled to an allotment
  of $500 or a greater amount provided by appropriation.
         SECTION 2.09.  Section 48.106(a-1), Education Code, is
  amended to read as follows:
         (a-1)  In addition to the amounts under Subsection (a), for
  each student in average daily attendance, a district is entitled to
  $150 [$50] for each of the following in which the student is
  enrolled:
               (1)  a campus designated as a P-TECH school under
  Section 29.556; or
               (2)  a campus that is a member of the New Tech Network
  and that focuses on project-based learning and work-based
  education.
         SECTION 2.10.  Section 48.108(a), Education Code, is amended
  to read as follows:
         (a)  For each student in average daily attendance in
  prekindergarten [kindergarten] through third grade, a school
  district is entitled to an annual allotment equal to the basic
  allotment multiplied by 0.1 if the student is:
               (1)  educationally disadvantaged; or
               (2)  an emergent bilingual student, as defined by
  Section 29.052, and is in a bilingual education or special language
  program under Subchapter B, Chapter 29.
         SECTION 2.11.  Section 48.110(d), Education Code, is amended
  to read as follows:
         (d)  For each annual graduate in a cohort described by
  Subsection (b) who demonstrates college, career, or military
  readiness as described by Subsection (f) in excess of the minimum
  number of students determined for the applicable district cohort
  under Subsection (c), a school district is entitled to an annual
  outcomes bonus of:
               (1)  if the annual graduate is educationally
  disadvantaged, $5,000;
               (2)  if the annual graduate is not educationally
  disadvantaged, $3,000; and
               (3)  if the annual graduate is enrolled in a special
  education program under Subchapter A, Chapter 29, $4,000 [$2,000],
  regardless of whether the annual graduate is educationally
  disadvantaged.
         SECTION 2.12.  Section 48.111(a), Education Code, is amended
  to read as follows:
         (a)  A [Except as provided by Subsection (c), a] school
  district is entitled to an annual allotment equal to the basic
  allotment multiplied by the applicable weight under Subsection
  (a-1) for each enrolled student equal to the difference, if the
  difference is greater than zero, that results from subtracting 250
  from the difference between the number of students enrolled in the
  district during the school year immediately preceding the current
  school year and the number of students enrolled in the district
  during the school year six years preceding the current school year.
         SECTION 2.13.  Section 48.115(a), Education Code, is amended
  to read as follows:
         (a)  Except as provided by Subsection (a-1), a school
  district is entitled to an annual allotment equal to the greater of 
  [sum of the following amounts or a greater amount provided by
  appropriation]:
               (1)  [$10 for each student in average daily attendance,
  plus $1 for each student in average daily attendance per every $50
  by which] the [district's maximum] basic allotment multiplied by
  0.005 for each student in average daily attendance [under Section
  48.051 exceeds $6,160, prorated as necessary]; and
               (2)  the following amount, as applicable, [$15,000] per
  campus:
                     (A)  $30,000 for each campus with 500 or fewer
  enrolled students;
                     (B)  $50,000 for each campus with 501 to 1,000
  enrolled students;
                     (C)  $75,000 for each campus with 1,001 to 1,500
  enrolled students;
                     (D)  $87,500 for each campus with 1,501 to 2,000
  enrolled students; and
                     (E)  $100,000 for each campus with more than 2,000
  enrolled students.
         SECTION 2.14.  Subchapter C, Chapter 48, Education Code, is
  amended by adding Sections 48.116 and 48.119 to read as follows:
         Sec. 48.116.  FINE ARTS ALLOTMENT. (a)  For each student in
  average daily attendance enrolled in a fine arts education course
  approved by the agency under Subsection (b) in grades 6 through 12,
  a school district is entitled to an annual allotment equal to:
               (1)  if the student is not educationally disadvantaged,
  the basic allotment, or, if applicable, the sum of the basic
  allotment and the allotment under Section 48.101 to which the
  district is entitled, multiplied by .008; or
               (2) if the student is educationally disadvantaged, the
  amount determined under Subdivision (1) multiplied by two.
         (b)  The agency shall approve fine arts education courses
  that qualify for the allotment provided under this section.  The
  approved courses must include fine arts education courses that:
               (1)  are authorized by the State Board of Education,
  including music, art, theater, and dance;
               (2)  provide students with the knowledge and skills
  necessary for success in the fine arts; and
               (3)  require a student in full-time attendance to
  receive not less than 225 minutes of fine arts instruction per week.
         (c)  The agency shall annually publish a list of fine arts
  courses approved under Subsection (b).
         Sec. 48.119.  BOOK SAFETY ALLOTMENT. (a)  For each student
  in average daily attendance, a school district is entitled to an
  annual allotment of $3 or a greater amount provided by
  appropriation.
         (b)  Funds allocated under this section may be used only to
  ensure that school library books and related materials meet the
  standards adopted under Section 33.021.
         (c)  The agency shall adopt a list of approved vendors at
  which a school district may spend funds allocated under this
  section for the purpose described by Subsection (b).
         SECTION 2.15.  Section 48.118(f), Education Code, is amended
  to read as follows:
         (f)  The total amount of state funding for allotments and
  outcomes bonuses under this section may not exceed $5 million per
  year unless money is specifically appropriated for the purpose of
  this section and designated as money in excess of the $5 million
  permitted under this subsection.  If the total amount of allotments
  and outcomes bonuses to which school districts are entitled under
  this section exceeds the amount permitted under this subsection,
  the agency shall allocate state funding to districts under this
  section in the following order:
               (1)  allotments under Subsection (a) for which school
  districts participating in partnerships prioritized under Section
  29.912(h) are eligible;
               (2)  allotments under Subsection (a) for which school
  districts that entered into a memorandum of understanding or letter
  of commitment regarding a multidistrict pathway partnership, as
  defined by commissioner rule, before May 1, 2023, are eligible;
               (3)  allotments under Subsection (a) for which school
  districts that have entered into a performance agreement under
  Section 29.912 with a coordinating entity that is an institution of
  higher education, as defined by Section 61.003, are eligible;
               (4)  allotments under Subsection (a) for which school
  districts with the highest percentage of students who are
  educationally disadvantaged, in descending order, are eligible;
  and
               (5)  outcomes bonuses under Subsection (c) for which
  school districts with the highest percentage of students who are
  educationally disadvantaged, in descending order, are eligible.
         SECTION 2.16.  Section 48.151(g), Education Code, is amended
  to read as follows:
         (g)  A school district or county that provides special
  transportation services for eligible special education students is
  entitled to a state allocation at a [paid on a previous year's
  cost-per-mile basis. The] rate of $1.75 per mile or a greater
  amount provided [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 of transportation shall be
  determined on an individual basis and shall be approved only in
  extreme hardship cases.
         SECTION 2.17.  Subchapter D, Chapter 48, Education Code, is
  amended by adding Sections 48.160  and 48.161 to read as follows:
         Sec. 48.160.  ALLOTMENT FOR ADVANCED MATHEMATICS PATHWAYS
  AND CERTAIN PROGRAMS OF STUDY. (a)  A school district is eligible
  to receive an allotment under this section if the district offers
  through in-person instruction, remote instruction, or a hybrid of
  in-person and remote instruction:
               (1)  an advanced mathematics pathway that begins with
  Algebra I in grade eight and continues through progressively more
  advanced mathematics courses in each grade from grade 9 through 12;
               (2)  a program of study in:
                     (A)  computer programming and software
  development; or
                     (B)  cybersecurity; and
               (3)  a program of study in a specialized skilled trade,
  such as:
                     (A)  plumbing and pipefitting;
                     (B)  electrical;
                     (C)  welding;
                     (D)  diesel and heavy equipment;
                     (E)  aviation maintenance; or
                     (F)  applied agricultural engineering.
         (b)  Notwithstanding Subsection (a), a school district is
  eligible for the allotment under this section for students in
  average daily attendance in a high school in the district that does
  not offer a program of study described by Subsection (a)(2) or (3)
  if:
               (1)  high school students who reside in the attendance
  zone of the high school may participate in the program of study by
  enrolling in another high school:
                     (A)  that:
                           (i)  is in the same district or a neighboring
  school district;
                           (ii)  was assigned the same or a better
  campus overall performance rating under Section 39.054 as the high
  school in whose attendance zone the students reside; and
                           (iii)  offers the program of study; and
                     (B)  to and from which transportation is provided
  for those students; or
               (2)  students in average daily attendance in the high
  school:
                     (A)  are offered instruction for the program of
  study at another location, such as another high school in the same
  district or a neighboring school district; and
                     (B)  receive transportation to and from the
  location described by Paragraph (A).
         (c)  An eligible school district is entitled to an annual
  allotment of $10 for each student in average daily attendance at a
  high school in the district that offers a pathway or program of
  study from each subdivision described by Subsection (a) if:
               (1)  each student in average daily attendance at the
  high school takes a progressively more advanced mathematics course
  each year of enrollment; and
               (2)  for each of those pathways or programs of study, at
  least one student in average daily attendance at the high school
  completes a course in the pathway or program of study.
         (d)  A school district that receives an allotment under
  Subsection (c) and Section 48.101 is entitled to receive an
  additional allotment in an amount equal to the product of 0.1 and
  the allotment to which the district is entitled under Section
  48.101 for each student for which the district receives an
  allotment under Subsection (c).  An open-enrollment charter school
  is not eligible for an allotment under this subsection.
         (e)  The commissioner by rule may establish requirements to
  ensure students in average daily attendance in a high school to
  which Subsection (b) applies have meaningful access to the programs
  of study described by Subsections (a)(2) and (3).
         (f)  The agency may reduce the amount of a school district's
  allotment under this section if the agency determines that the
  district has not complied with any provision of this section.
         Sec. 48.161.  COMMUNITIES IN SCHOOLS EXPANSION
  ALLOTMENT.  (a)  A school district is eligible to receive an
  annual allotment of $50,000 for each campus in the district that
  participates in the Communities In Schools program under Subchapter
  E, Chapter 33.
         (b)  The commissioner by rule may establish requirements for
  the use of an allotment under this section by a school district to
  ensure that the allotment is used to establish or expand a
  Communities In Schools program on a district campus.
         (c)  The amount appropriated for allotments under this
  section may not exceed $50 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 proportionately reduce
  each district's allotment under this section.
         (d)  The commissioner may reduce the amount of a school
  district's allotment under this section if the commissioner
  determines that the district has not complied with any provision of
  this section.
         SECTION 2.18.  Section 48.202, Education Code, is amended by
  amending Subsection (a-1) and adding Subsections (f-1) and (f-2) 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 greater of the amount of district tax revenue
  per weighted student per cent of tax effort available to a school
  district at the 96th percentile of wealth per weighted student or
  the amount that results from multiplying the maximum amount of the
  basic allotment provided under Section 48.051 for the applicable
  school year [6,160, or the greater amount provided under Section
  48.051(b), if applicable,] by 0.016, for the first eight cents by
  which the district's maintenance and operations tax rate exceeds
  the district's tier one tax rate; and
               (2)  subject to Subsection (f), the amount that results
  from multiplying the maximum amount of the basic allotment provided
  under Section 48.051 for the applicable school year [$6,160, or the
  greater amount provided under Section 48.051(b), if applicable,] by
  0.008, for the district's maintenance and operations tax effort
  that exceeds the amount of tax effort described by Subdivision (1).
         (f-1)  Notwithstanding any other provision of this chapter,
  Subsection (f) does not apply for the 2023-2024 school year.
         (f-2)  Subsection (f-1) and this subsection expire September
  1, 2025.
         SECTION 2.19.  Section 48.277(b), Education Code, is amended
  to read as follows:
         (b)  For purposes of calculating maintenance and operations
  revenue under Subsection (a), the commissioner shall:
               (1)  for purposes of Subsections (a)(1) and (2), use
  the following applicable school year:
                     (A)  in a school year ending in an even-numbered
  year, the 2019-2020 school year; and
                     (B)  in a school year ending in an odd-numbered
  year, the 2019-2020 or 2020-2021 school year, whichever is greater;
               (2)  include all state and local funding, except for
  any funding resulting from:
                     (A)  reimbursement for disaster remediation costs
  under former Sections 41.0931 and 42.2524;
                     (B)  an adjustment for rapid decline in taxable
  value of property under former Section 42.2521;
                     (C)  an adjustment for property value affected by
  a state of disaster under former Section 42.2523; [and]
                     (D)  additional state aid under Section 48.307 or
  48.308; and
                     (E)  additional state aid for retention stipends
  under Section 48.285;
               (3)  adjust the calculation to reflect a reduction in
  tax effort by a school district; and
               (4)  if a school district or open-enrollment charter
  school receives a waiver relating to eligibility requirements for
  the national free or reduced-price lunch program under 42 U.S.C.
  Section 1751 et seq., use the numbers of educationally
  disadvantaged students on which the district's or school's
  entitlement to compensatory education funds was based for the
  school year before the school year in which the district or school
  received the waiver, adjusted for estimated enrollment growth.
         SECTION 2.20.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Sections 48.284 and 48.285 to read as follows:
         Sec. 48.284.  PROPERTY VALUE STUDY HARDSHIP GRANTS. (a) For
  the 2023-2024 and 2024-2025 school years, from money appropriated
  for purposes of this section, the commissioner may administer a
  grant program to provide grants to eligible school districts to
  offset a reduction in the district's funding under the Foundation
  School Program resulting from the use of the state value for the
  district's taxable value of property as provided by Section
  403.302(c), Government Code, for the 2022 and 2023 tax years.
         (b)  The amount of a grant awarded under this section is the
  difference, if that difference is greater than zero, between:
               (1)  the funding the school district would have
  received under Chapter 46, this chapter, and Chapter 49 for the
  applicable school year if the local value for the district's
  taxable value of property was used for the applicable tax year; and
               (2)  the funding to which the district is entitled
  under Chapter 46, this chapter, and Chapter 49 for the applicable
  school year.
         (c)  An open-enrollment charter school is not eligible to
  receive a grant under this section.
         (d)  Funding provided to a school district under this section
  is in addition to all other funding provided under Chapter 46, this
  chapter, and Chapter 49.
         (e)  The commissioner may require a school district to
  submit, or request from a state agency or a political subdivision of
  this state, additional information as needed to make a
  determination under this section.
         (f)  The total amount of grants awarded under this section
  for a school year may not exceed $60 million.
         (g)  In awarding grants under this section, the commissioner
  shall prioritize school districts experiencing the greatest
  percentage reduction in funding described by Subsection (a).
         (h)  The commissioner may not adjust the amount of a grant
  awarded under this section based on data revisions received after
  the grant has been awarded.
         (i)  A determination by the commissioner under this section
  is final and may not be appealed.
         (j)  This section expires September 1, 2025.
         Sec. 48.285.  ADDITIONAL STATE AID FOR RETENTION STIPENDS.
  (a)  For the 2023-2024 school year, a school district, including a
  school district that is otherwise ineligible for state aid under
  this chapter, is entitled to state aid in an amount equal to the sum
  of:
               (1)  the product of $4,000 multiplied by the number of
  full-time employees subject to the minimum salary schedule under
  Section 21.402 employed by the district; and
               (2)  the product of $2,000 multiplied by the number of
  part-time classroom teachers, part-time librarians, part-time
  school counselors certified under Subchapter B, Chapter 21, and
  part-time school nurses employed by the district.
         (b)  A school district shall use state aid received under
  Subsection (a) to provide a one-time stipend to each employee for
  whom the district received state aid in the amount of the state aid
  provided under that subsection for that employee.
         (c)  An open-enrollment charter school is entitled to state
  aid under this section in the same manner as a school district and
  is required to provide a one-time stipend to each employee in a
  comparable role as a school district employee described by
  Subsection (a) as if those employees were subject to the minimum
  salary schedule under Section 21.402.
         (d)  A one-time stipend provided to an eligible employee
  under this section satisfies the compensation increase required by
  Section 48.051.
         (e)  A determination by the commissioner under this section
  is final and may not be appealed.
         (f)  A school district or an open-enrollment charter school
  is not entitled to funding under this section beginning with the
  2024-2025 school year.
         (g)  This section expires September 1, 2025.
         SECTION 2.21.  Sections 48.111(c), (c-1), and (c-2),
  Education Code, are repealed.
         SECTION 2.22.  Except as otherwise provided by this article,
  this article takes effect immediately if this Act receives a vote of
  two-thirds of all the members elected to each house, as provided by
  Section 39, Article III, Texas Constitution.  If this Act does not
  receive the vote necessary for immediate effect, the entirety of
  this article takes effect on the 91st day after the last day of the
  legislative session.
  ARTICLE 3. CHANGES RELATED TO PUBLIC SCHOOL FINANCE EFFECTIVE FOR
  2024-2025 SCHOOL YEAR
         SECTION 3.01.  Section 12.263(b), Education Code, is amended
  to read as follows:
         (b)  For purposes of determining the average daily
  attendance of an adult education program operated under a charter
  granted under this subchapter, a student is considered to be in
  average daily attendance, with a 100 percent attendance rate, for:
               (1)  all of the instructional days of the school year,
  if the student is enrolled for at least 75 percent of the school
  year;
               (2)  three-quarters [half] of the instructional days of
  the school year, if the student is enrolled for at least 50 percent
  but less than 75 percent of the school year;
               (3)  half [a quarter] of the instructional days of the
  school year, if the student is enrolled for at least 25 percent but
  less than 50 percent of the school year; or
               (4)  a quarter [one-tenth] of the instructional days of
  the school year, if the student is enrolled for at least 10 percent
  but less than 25 percent of the school year.
         SECTION 3.02.  Sections 48.0051(a), (b), and (d), Education
  Code, are amended to read as follows:
         (a)  The [Subject to Subsection (a-1), the] commissioner
  shall adjust the average daily attendance of a school district or
  open-enrollment charter school under Section 48.005 in the manner
  provided by Subsection (b) if the district or school:
               (1)  provides the minimum number of minutes of
  operational and instructional time required under Section 25.081
  and commissioner rules adopted under that section over at least 175
  [180] days of instruction; and
               (2)  offers an additional 30 days of half-day
  instruction for students enrolled in prekindergarten through fifth
  grade.
         (b)  For a school district or open-enrollment charter school
  described by Subsection (a), the commissioner shall increase the
  average daily attendance of the district or school under Section
  48.005 by the amount that results from the quotient of the sum of
  attendance by students described by Subsection (a)(2) for each of
  the 30 additional instructional days of half-day instruction that
  are provided divided by 175 [180].
         (d)  This section does not prohibit a school district from
  providing the minimum number of minutes of operational and
  instructional time required under Section 25.081 and commissioner
  rules adopted under that section over fewer than 175 [180] days of
  instruction.
         SECTION 3.03.  Section 48.051(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 a setting [an instructional arrangement] other than a
  general education setting [mainstream] or career and technology
  education programs, for which an additional allotment is made under
  Subchapter C, a district is entitled to an allotment equal to [the
  lesser of $6,160 or] the amount that results from the following
  formula:
  A = B [$6,160] X TR/MCR
  where:
         "A" is the allotment to which a district is entitled;
         "B" is the base amount, which equals the greater of:
               (1)  $6,500;
               (2)  an amount equal to the district's base amount under
  this section for the preceding school year; or
               (3)  the amount appropriated under Subsection (b);
         "TR" is the district's tier one maintenance and operations
  tax rate, as provided by Section 45.0032; and
         "MCR" is the district's maximum compressed tax rate, as
  determined under Section 48.2551.
         SECTION 3.04.  Effective September 1, 2026, Section 48.051,
  Education Code, is amended by adding Subsection (a-1) to read as
  follows:
         (a-1)  Notwithstanding Subsection (a), for the second year
  of each state fiscal biennium, the commissioner shall adjust the
  value of "B" under that subsection for the preceding state fiscal
  year by a factor equal to the average annual percentage increase, if
  any, in the Texas Consumer Price Index for the preceding 10 years.
         SECTION 3.05.  Section 48.101, Education Code, is amended to
  read as follows:
         Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT.  (a)  
  Small and mid-sized districts are entitled to an annual allotment
  in accordance with this section.  In this section:
               (1)  "AA" is the district's annual allotment per
  student in average daily attendance;
               (2)  "ADA" is the number of students in average daily
  attendance for which the district is entitled to an allotment under
  Section 48.051, other than students in average daily attendance who
  do not reside in the district and are enrolled in a full-time
  virtual program; and
               (3)  "BA" is the basic allotment determined under
  Section 48.051.
         (b)  A school district that has fewer 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 .00044 [.0004]) X BA
         (c)  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 the district is
  eligible for that formula; or
               (2)  AA = ((5,000 - ADA) X .000034 [.000025]) X BA.
         (d)  Instead of the allotment under Subsection (b) or (c)(1),
  a school district that has fewer than 300 students in average daily
  attendance and is the only school district located in and operating
  in a county is entitled to an annual allotment for each student in
  average daily attendance based on the following formula:
  AA = ((1,600 - ADA) X .00054 [.00047]) X BA
         SECTION 3.06.  Section 48.102, Education Code, is amended to
  read as follows:
         Sec. 48.102.  SPECIAL EDUCATION. (a) For each enrolled 
  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 basic allotment, or, if applicable,
  the sum of the basic allotment and the allotment under Section
  48.101 to which the district is entitled, multiplied by a weight in
  an amount set by the legislature in the General Appropriations Act
  for the highest tier of intensity of service for which the student
  qualifies [1.15]. [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 basic allotment, or, if
  applicable, the sum of the basic allotment and the allotment under
  Section 48.101 to which the district is entitled, multiplied by a
  weight determined according to instructional arrangement as
  follows:
               [Homebound             5.0
               [Hospital class             3.0
               [Speech therapy             5.0
               [Resource room             3.0
               [Self-contained, mild and moderate,
               regular campus             3.0
               [Self-contained, severe, regular campus           3.0
               [Off home campus             2.7
               [Nonpublic day school             1.7
               [Vocational adjustment class             2.3]
         (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and
  2025-2026 school years, the amount of an allotment under this
  section shall be determined in accordance with Section 48.1023.
  This subsection expires September 1, 2026.
         (b)  The commissioner by rule shall define seven tiers of
  intensity of service for use in determining funding under this
  section. The commissioner must include one tier specifically
  addressing students receiving special education services in
  residential placement [A special instructional arrangement for
  students with disabilities residing in care and treatment
  facilities, other than state schools, whose parents or guardians do
  not reside in the district providing education services shall be
  established by commissioner rule.  The funding weight for this
  arrangement shall be 4.0 for those students who receive their
  education service on a local school district campus.  A special
  instructional arrangement for students with disabilities residing
  in state schools shall be established by commissioner rule with a
  funding weight of 2.8].
         (c)  [For funding purposes, the number of contact hours
  credited per day for each student in the off home campus
  instructional arrangement may not exceed the contact hours credited
  per day for the multidistrict class instructional arrangement in
  the 1992-1993 school year.
         [(d)  For funding purposes the contact hours credited per day
  for each student in the resource room;  self-contained, mild and
  moderate; and self-contained, severe, instructional arrangements
  may not exceed the average of the statewide total contact hours
  credited per day for those three instructional arrangements in the
  1992-1993 school year.
         [(e)  The commissioner by rule shall prescribe the
  qualifications an instructional arrangement must meet in order to
  be funded as a particular instructional arrangement under this
  section.  In prescribing the qualifications that a mainstream
  instructional arrangement must meet, the commissioner shall
  establish requirements that students with disabilities and their
  teachers receive the direct, indirect, and support services that
  are necessary to enrich the regular classroom and enable student
  success.
         [(f)  In this section, "full-time equivalent student" means
  30 hours of contact a week between a special education student and
  special education program personnel.
         [(g)]  The commissioner shall adopt rules and procedures
  governing contracts for residential and day program placement of
  [special education] students receiving special education services.
         (d)  [The legislature shall provide by appropriation for the
  state's share of the costs of those placements.
         [(h)]  At least 55 percent of the funds allocated under this
  section must be used in the special education program under
  Subchapter A, Chapter 29.
         (e) [(i)]  The agency shall ensure [encourage] the placement
  of students in special education programs, including students in
  residential placement [instructional arrangements], in the least
  restrictive environment appropriate for their educational needs.
         (f) [(j)]  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 basic allotment, or, if applicable, the sum of the basic
  allotment and the allotment under Section 48.101 to which the
  district is entitled for each [full-time equivalent] student in
  average enrollment [daily attendance], multiplied by the amount
  designated for the highest tier of intensity of service for which
  the student qualifies [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.
         (g) [(k)]  From the total amount of funds appropriated for
  special education under this section, the commissioner shall
  withhold an amount specified in the General Appropriations Act, and
  distribute that amount to school districts for programs under
  Section 29.014.  The program established under that section is
  required only in school districts in which the program is financed
  by funds distributed under this subsection and any other funds
  available for the program.  After deducting the amount withheld
  under this subsection from the total amount appropriated for
  special education, the commissioner shall reduce each district's
  allotment proportionately and shall allocate funds to each district
  accordingly.
         (h)  Not later than December 1 of each even-numbered year,
  the commissioner shall submit to the Legislative Budget Board, for
  purposes of the allotment under this section, proposed weights for
  the tiers of intensity of service for the next state fiscal
  biennium.
         SECTION 3.07.  Subchapter C, Chapter 48, Education Code, is
  amended by adding Sections 48.1021 and 48.1023 to read as follows:
         Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
  (a)  For each six-week period in which a student in a special
  education program under Subchapter A, Chapter 29, receives eligible
  special education services, a school district is entitled to an
  allotment in an amount set by the legislature in the General
  Appropriations Act for the service group for which the student is
  eligible.
         (a-1)  Notwithstanding Subsection (a), for the 2024-2025 and
  2025-2026 school years, the amount of an allotment under this
  section shall be determined in accordance with Section 48.1023.
  This subsection expires September 1, 2026.
         (b)  The commissioner by rule shall establish four service
  groups for use in determining funding under this section. In
  establishing the groups, the commissioner must consider the level
  of services, equipment, and technology required to meet the needs
  of students receiving special education services.
         (c)  A school district is entitled to receive an allotment
  under this section for each service group for which a student is
  eligible.
         (d)  A school district is entitled to the full amount of an
  allotment under this section for a student receiving eligible
  special education services during any part of a six-week period.
         (e)  At least 55 percent of the funds allocated under this
  section must be used for a special education program under
  Subchapter A, Chapter 29.
         (f)  Not later than December 1 of each even-numbered year,
  the commissioner shall submit to the Legislative Budget Board, for
  purposes of the allotment under this section, proposed amounts of
  funding for the service groups for the next state fiscal biennium.
         Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING. (a)  
  For the 2024-2025 and 2025-2026 school years, the commissioner may
  adjust weights or amounts provided under Section 48.102 or 48.1021
  as necessary to ensure compliance with requirements regarding
  maintenance of state financial support under 20 U.S.C. Section
  1412(a)(18) and maintenance of local financial support under
  applicable federal law.
         (b)  For the 2024-2025 and 2025-2026 school years, the
  commissioner shall determine the formulas through which school
  districts receive funding under Sections 48.102 and 48.1021. In
  determining the formulas, the commissioner may combine the methods
  of funding under those sections with the method of funding provided
  by Section 48.102, as it existed on September 1, 2023.
         (c)  For the 2026-2027 school year, the commissioner may
  adjust the weights or amounts set by the legislature in the General
  Appropriations Act for purposes of Section 48.102 or 48.1021.
  Before making an adjustment under this subsection, the commissioner
  shall notify and must receive approval from the Legislative Budget
  Board.
         (d)  Notwithstanding any other provision of this section,
  the sum of funding provided under Sections 48.102 and 48.1021 for
  the 2024-2025 or for the 2025-2026 school year as adjusted under
  this section may not exceed the sum of:
               (1)  funding that would have been provided under
  Section 48.102, as it existed on September 1, 2023; and
               (2)  the amount set by the legislature in the General
  Appropriations Act.
         (e)  Each school district and open-enrollment charter school
  shall report to the agency information necessary to implement this
  section.
         (f)  The agency shall provide technical assistance to school
  districts and open-enrollment charter schools to ensure a
  successful transition in funding formulas for special education.
         (g)  This section expires September 1, 2028.
         SECTION 3.08.  Section 48.103(c), Education Code, is amended
  to read as follows:
         (c)  A school district may receive funding for a student
  under each provision of this section, [and] Section 48.102, and
  Section 48.1021 for which [if] the student qualifies [satisfies the
  requirements of both sections].
         SECTION 3.09.  Sections 48.104(a), (d), and (e), Education
  Code, are amended to read as follows:
         (a)  For each 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 basic allotment
  multiplied by 0.2 or, if the student is educationally
  disadvantaged, 0.28 [0.275]. For each full-time equivalent student
  who is in a remedial and support program under Section 29.081
  because the student is pregnant, a district is entitled to an annual
  allotment equal to the basic allotment multiplied by 2.41.
         (d)  The weights assigned to the five tiers of the index
  established under Subsection (c) are, from least to most severe
  economic disadvantage, 0.23 [0.225], 0.2425 [0.2375], 0.255
  [0.25], 0.2675 [0.2625], and 0.28 [0.275].
         (e)  If insufficient data is available for any school year to
  evaluate the level of economic disadvantage in a census block
  group, a school district is entitled to an annual allotment equal to
  the basic allotment multiplied by 0.23 [0.225] for each student who
  is educationally disadvantaged and resides in that census block
  group.
         SECTION 3.10.  Section 48.108, Education Code, is amended by
  adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
  follows:
         (a-1)  In addition to the allotment under Subsection (a) and
  subject to Subsection (a-2), a school district is entitled to an
  annual allotment equal to the basic allotment multiplied by 0.2 for
  each student in average daily attendance enrolled in a
  prekindergarten class provided through a contract with a
  community-based child-care provider under Section 29.153.
         (a-2)  The total number of students in average daily
  attendance statewide for whom an allotment may be provided under
  Subsection (a-1) for a school year may not exceed 10,000 students in
  average daily attendance. If the number of students in average
  daily attendance for whom a school district is entitled to an
  allotment under this section exceeds the maximum number provided by
  this subsection, the commissioner shall allocate the allotments to
  school districts under this section in accordance with commissioner
  rule.
         (a-3)  Notwithstanding Subsection (a-2), the maximum number
  of students in average daily attendance statewide for whom an
  allotment may be provided under Subsection (a-1) for a school year
  is:
               (1)  for the 2024-2025 school year, 2,000 students;
               (2)  for the 2025-2026 school year, 4,500 students; and
               (3)  for the 2026-2027 school year, 7,000 students.
         (a-4)  Subsection (a-3) and this subsection expire September
  1, 2027.
         SECTION 3.11.  Section 48.114, Education Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         (a)  A school district [that has implemented a mentoring
  program for classroom teachers who have less than two years of
  teaching experience under Section 21.458] is entitled to an
  allotment [as determined under Subsection (b)] to fund a [the]
  mentoring program and to provide stipends for mentor teachers if:
               (1)  the district has implemented a mentoring program
  for classroom teachers under Section 21.458; and
               (2)  the mentor teachers assigned under that program
  complete a training program that is required or developed by the
  agency for mentor teachers.
         (d)  A school district is entitled to an allotment of $2,000
  for each classroom teacher with less than two years of experience
  who participates in a mentoring program described by Subsection
  (a).  A district may receive an allotment under this section for no
  more than 40 teachers during a school year unless an appropriation
  is made for the purposes of providing a greater number of allotments
  per district.
         SECTION 3.12.  Section 48.115(a), Education Code, is amended
  to read as follows:
         (a)  Except as provided by Subsection (a-1), a school
  district is entitled to an annual allotment equal to the greater of 
  [sum of the following amounts or a greater amount provided by
  appropriation]:
               (1)  [$10 for each student in average daily attendance,
  plus $1 for each student in average daily attendance per every $50
  by which] the [district's maximum] basic allotment multiplied by
  0.01 for each student in average daily attendance [under Section
  48.051 exceeds $6,160, prorated as necessary]; and
               (2)  the following amount, as applicable, [$15,000] per
  campus:
                     (A)  $50,000 for each campus with 500 or fewer
  enrolled students;
                     (B)  $100,000 for each campus with 501 to 1,000
  enrolled students;
                     (C)  $150,000 for each campus with 1,001 to 1,500
  enrolled students;
                     (D)  $175,000 for each campus with 1,501 to 2,000
  enrolled students; and
                     (E)  $200,000 for each campus with more than 2,000
  enrolled students.
         SECTION `1.  Subchapter C, Chapter 48, Education Code, is
  amended by adding Section 48.120 to read as follows:
         Sec. 48.120.  MILITARY TRANSITION AID. (a)  A school
  district is entitled to an annual allotment equal to the basic
  allotment multiplied by 0.08 for each eligible student in average
  daily attendance.
         (b)  A student is eligible for purposes of Subsection (a) if
  the student:
               (1)  is a military-connected student, as defined by
  Section 25.006; and
               (2)  is in the student's first year of enrollment in the
  school district.
         (c)  Funds allocated under this section may be used only to
  maintain a transition program that assists military families with
  relocation, enrollment, registration, records transfer, academic
  planning, counseling, and other support services available at a
  Purple Star Campus, as described by Section 33.909.
         SECTION 3.14.  Section 48.257, Education Code, is amended by
  amending Subsection (a) and adding Subsection (b-1) to read as
  follows:
         (a)  Subject to Subsection (b) and except as provided by
  Subsection (b-1), if a school district's tier one local share under
  Section 48.256 exceeds the district's entitlement under Section
  48.266(a)(1) less the district's distribution from the state
  available school fund, the district must reduce the district's tier
  one revenue level in accordance with Chapter 49 to a level not to
  exceed the district's entitlement under Section 48.266(a)(1) less
  the district's distribution from the state available school fund.
         (b-1)  This subsection applies only to a school district to
  which Subsection (a) applies, that received an allotment under
  Section 48.277 for the 2023-2024 school year, and that adopts a
  maintenance and operations tax rate for the current school year
  equal to or greater than the sum of the district's maximum
  compressed tax rate, as determined under Section 48.2551, and four
  cents.  Notwithstanding Subsection (a), if, after reducing the tier
  one revenue level of a school district to which this subsection
  applies as required under Subsection (a), the maintenance and
  operations revenue per student in average daily attendance of the
  district for a school year would be less than the maintenance and
  operations revenue per student in average daily attendance
  available to the district for the 2023-2024 school year, excluding
  any funding provided to the district under Sections 48.279 and
  48.281, the agency shall adjust the amount of the reduction
  required in the district's tier one revenue level under Subsection
  (a) up to the amount of local funds necessary to provide the
  district with the amount of maintenance and operations revenue per
  student in average daily attendance available to the district for
  the 2023-2024 school year.
         SECTION 3.15.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.286 to read as follows:
         Sec. 48.286.  REGIONAL DISASTER INSURANCE VARIATION
  ALLOTMENT. (a) A school district is entitled to an annual
  allotment for each student in average daily attendance equal to the
  basic allotment, or, if applicable, the sum of the basic allotment
  and the allotment under Section 48.101 to which the district is
  entitled, multiplied by the product, if the product is greater  than
  zero, of the district's variation factor as determined under
  Subsection (b) and .012.
         (b)  The commissioner shall determine a school district's
  variation factor by:
               (1)  assigning each school district to the county in
  which the district's central administrative office is located;
               (2)  determining the percentage spent on expenses
  related to property and casualty insurance by calculating the
  average of the quotient of property and casualty insurance expenses
  incurred by all districts assigned to a county under Subdivision
  (1) divided by total expenditures made by those districts for each
  of the three most recent school years; and
               (3)  subtracting one percentage point from the
  percentage determined under Subdivision (2).
         (c)  The commissioner shall use the variation factor
  determined under Subsection (b) for the 2023-2024 school year for a
  school district for purposes of determining a school district's
  allotment under Subsection (a) for any subsequent school year.
         SECTION 3.16.  Subchapter G, Chapter 48, Education Code, is
  amended by adding Sections 48.304 and 48.306 to read as follows:
         Sec. 48.304.  DAY PLACEMENT PROGRAM FUNDING. (a) For each
  qualifying day placement program that a regional education service
  center makes available in partnership with a school district,
  open-enrollment charter school, or shared services arrangement,
  the center is entitled to an allotment of:
               (1)  $250,000 for the first year of the program's
  operation; and
               (2)  $150,000 for each year of the program's operation
  after the first year.
         (b)  A day placement program qualifies for purposes of
  Subsection (a) if:
               (1)  the program complies with commissioner rules
  adopted under Section 48.102(c);
               (2)  the program offers services to students who are
  enrolled at any school district or open-enrollment charter school
  in the county in which the program is offered, unless the
  commissioner by rule waives or modifies the requirement under this
  subdivision for the program to serve all students in a county; and
               (3)  the agency has designated the program for service
  in the county in which the program is offered and determined that,
  at the time of designation, the program increases the availability
  of day placement services in the county.
         Sec. 48.306.  PARENT-DIRECTED SERVICES FOR STUDENTS
  RECEIVING SPECIAL EDUCATION SERVICES GRANT. (a) A student to whom
  the agency awards a grant under Subchapter A-1, Chapter 29, is
  entitled to receive an amount of $1,500 or a greater amount provided
  by appropriation.
         (b)  The legislature shall include in the appropriations for
  the Foundation School Program state aid sufficient for the agency
  to award grants under Subchapter A-1, Chapter 29, in the amount
  provided by this section.
         (c)  A student may receive one grant under Subchapter A-1,
  Chapter 29, unless the legislature appropriates money for an
  additional grant in the General Appropriations Act.
         (d)  A determination of the commissioner under this section
  is final and may not be appealed.
         SECTION 3.17.  Effective January 1, 2024, Section 26.08(n),
  Tax Code, is amended to read as follows:
         (n)  For purposes of this section, the voter-approval tax
  rate of a school district is the sum of the following:
               (1)  the rate per $100 of taxable value that is equal to
  the district's maximum compressed tax rate, as determined under
  Section 48.2551, Education Code, for the current year;
               (2)  the greater of:
                     (A)  the district's enrichment tax rate for the
  preceding tax year, less any amount by which the district is
  required to reduce the district's enrichment tax rate under Section
  48.202(f), Education Code, in the current tax year; or
                     (B)  the rate of $0.06 [$0.05] per $100 of taxable
  value; and
               (3)  the district's current debt rate.
         SECTION 3.18.  Except as otherwise provided by this article,
  this article takes effect September 1, 2024.
  ARTICLE 4.  CHANGES RELATED TO SPECIAL EDUCATION EFFECTIVE FOR
  2024-2025 SCHOOL YEAR
         SECTION 4.01.  Section 29.001, Education Code, is amended to
  read as follows:
         Sec. 29.001.  IMPLEMENTATION OF SPECIAL EDUCATION
  LAW [STATEWIDE PLAN].  (a)  As the state education agency
  responsible for carrying out the purposes of Part B, Individuals
  with Disabilities Education Act (IDEA) (20 U.S.C. Section 1411 et
  seq.), the [The] agency shall develop, and revise [modify] as
  necessary, a comprehensive system to ensure statewide and local
  compliance [design, consistent] with federal and state law related
  to special education[, for the delivery of services to children
  with disabilities in this state that includes rules for the
  administration and funding of the special education program so that
  a free appropriate public education is available to all of those
  children between the ages of three and 21].
         (b)  The comprehensive system [statewide design] shall
  include the provision of services primarily through school
  districts and shared services arrangements, supplemented by
  regional education service centers.
         (c)  The comprehensive system [agency] shall focus on
  maximizing student outcomes and include [also develop and implement
  a statewide plan with programmatic content that includes procedures
  designed to]:
               (1)  rulemaking, technical assistance, guidance
  documents, monitoring protocols, and other resources as necessary
  to implement and ensure compliance with federal and state law
  related to special education [ensure state compliance with
  requirements for supplemental federal funding for all
  state-administered programs involving the delivery of
  instructional or related services to students with disabilities];
               (2)  the facilitation of [facilitate] interagency
  coordination when other state agencies are involved in the delivery
  of instructional or related services to students with disabilities;
               (3)  the pursuit of [periodically assess statewide
  personnel needs in all areas of specialization related to special
  education and pursue] strategies to meet statewide special
  education and related services personnel [those] needs [through a
  consortium of representatives from regional education service
  centers, local education agencies, and institutions of higher
  education and through other available alternatives];
               (4)  ensuring [ensure] that regional education service
  centers throughout the state maintain a regional support function,
  which may include direct service delivery and a component designed
  to facilitate the placement of students with disabilities who
  cannot be appropriately served in their resident districts;
               (5)  [allow the agency to] effectively monitoring
  [monitor] and periodically conducting [conduct] site visits of all
  school districts to ensure that rules adopted under this subchapter
  [section] are applied in a consistent and uniform manner, to ensure
  that districts are complying with those rules, and to ensure that
  annual statistical reports filed by the districts and not otherwise
  available through the Public Education Information Management
  System under Sections 48.008 and 48.009 are accurate and complete;
  and
               (6)  the provision of training and technical assistance
  to ensure that:
                     (A)  appropriately trained personnel are involved
  in the diagnostic and evaluative procedures operating in all
  districts and that those personnel routinely serve on district
  admissions, review, and dismissal committees;
                     (B)  [(7)  ensure that] an individualized
  education program for each student with a disability is properly
  developed, implemented, and maintained in the least restrictive
  environment that is appropriate to meet the student's educational
  needs;
                     (C)  [(8)  ensure that,] when appropriate, each
  student with a disability is provided an opportunity to participate
  in career and technology and physical education classes[, in
  addition to participating in regular or special classes];
                     (D)  [(9)  ensure that] each student with a
  disability is provided necessary related services;
                     (E)  [(10)  ensure that] an individual assigned
  to act as a surrogate parent for a child with a disability, as
  provided by 20 U.S.C. Section 1415(b), is required to:
                           (i) [(A)]  complete a training program that
  complies with minimum standards established by agency rule;
                           (ii) [(B)]  visit the child and the child's
  school;
                           (iii) [(C)]  consult with persons involved
  in the child's education, including teachers, caseworkers,
  court-appointed volunteers, guardians ad litem, attorneys ad
  litem, foster parents, and caretakers;
                           (iv) [(D)]  review the child's educational
  records;
                           (v) [(E)]  attend meetings of the child's
  admission, review, and dismissal committee;
                           (vi) [(F)]  exercise independent judgment
  in pursuing the child's interests; and
                           (vii) [(G)]  exercise the child's due
  process rights under applicable state and federal law; and
                     (F)  [(11)  ensure that] each district develops a
  process to be used by a teacher who instructs a student with a
  disability in a regular classroom setting:
                           (i) [(A)]  to request a review of the
  student's individualized education program;
                           (ii) [(B)]  to provide input in the
  development of the student's individualized education program;
                           (iii) [(C)]  that provides for a timely
  district response to the teacher's request; and
                           (iv) [(D)]  that provides for notification
  to the student's parent or legal guardian of that response.
         SECTION 4.02.  Subchapter A, Chapter 29, Education Code, is
  amended by adding Section 29.0012 to read as follows:
         Sec. 29.0012.  ANNUAL MEETING ON SPECIAL EDUCATION. (a)  At
  least once each year, the board of trustees of a school district or
  the governing body of an open-enrollment charter school shall
  include during a public meeting a discussion of the performance of
  students receiving special education services at the district or
  school.
         (b)  The agency by rule shall adopt a set of performance
  indicators for measuring and evaluating the quality of learning and
  achievement for students receiving special education services at
  the school district or open-enrollment charter school to be
  considered at a meeting held under this section.  The indicators
  must include performance on the college, career, or military
  readiness outcomes described by Section 48.110.
         SECTION 4.03.  Section 29.003, Education Code, is amended to
  read as follows:
         Sec. 29.003.  ELIGIBILITY CRITERIA.  (a)  The agency shall
  develop specific eligibility criteria based on the general
  classifications established by this section and in accordance with
  federal law [with reference to contemporary diagnostic or
  evaluative terminologies and techniques].  Eligible students with
  disabilities shall enjoy the right to a free appropriate public
  education, which may include instruction in the regular classroom,
  instruction through special teaching, or instruction through
  contracts approved under this subchapter.  Instruction shall be
  supplemented by the provision of related services when appropriate.
         (b)  A student is eligible to participate in a school
  district's special education program [if the student]:
               (1)  from birth through [is not more than] 21 years of
  age if the student [and] has a visual [or auditory] impairment or is
  deaf or hard of hearing and that disability prevents the student
  from being adequately or safely educated in public school without
  the provision of special education services; [or]
               (2)  from three years of age through five years of age
  if the student is experiencing developmental delays as described by
  20 U.S.C. Section 1401(3)(B) and defined by commissioner rule; or
               (3)  from 3 years of age through [is at least three but
  not more than] 21 years of age if the student [and] has one or more
  of the [following] disabilities described by 20 U.S.C. Section
  1401(3)(A) and that disability prevents the student from being
  adequately or safely educated in public school without the
  provision of special education services[:
                     [(A)  physical disability;
                     [(B)  intellectual or developmental disability;
                     [(C)  emotional disturbance;
                     [(D)  learning disability;
                     [(E)  autism;
                     [(F)  speech disability; or
                     [(G)  traumatic brain injury].
         SECTION 4.04.  Subchapter A, Chapter 29, Education Code, is
  amended by adding Section 29.0056 to read as follows:
         Sec. 29.0056.  INFORMATION REGARDING STATE SUPPORTED LIVING
  CENTERS. (a)  In this section, "state supported living center" has
  the meaning assigned by Section 531.002, Health and Safety Code.
         (b)  The Health and Human Services Commission, in
  collaboration with the agency and stakeholders who represent the
  full continuum of educational residential placement options, shall
  develop and provide to the agency materials regarding educational
  residential placement options for children who may qualify for
  placement in a state supported living center. The agency shall make
  the materials developed under this subsection available to school
  districts.
         (c)  At a meeting of a child's admission, review, and
  dismissal committee at which residential placement is discussed,
  the school district shall provide to the child's parent the
  materials developed under Subsection (b).
         SECTION 4.05.  Section 29.008, Education Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (a-1) to
  read as follows:
         (a)  The commissioner shall establish a list of approved
  public or private facilities, institutions, or agencies inside or
  outside of this state that a [A] school district, shared services
  arrangement unit, or regional education service center may contract
  with [a public or private facility, institution, or agency inside
  or outside of this state] for the provision of services to students
  with disabilities in a residential placement.  The commissioner may
  approve either the whole or a part of a facility or program.
         (a-1)  Each contract described by this section [for
  residential placement] must be approved by the commissioner.  The
  commissioner may approve a [residential placement] contract under
  this section only after at least a programmatic evaluation of
  personnel qualifications, costs, adequacy of physical plant and
  equipment, and curriculum content.  [The commissioner may approve
  either the whole or a part of a facility or program.]
         (b)  Except as provided by Subsection (c), costs of an
  approved contract for residential placement may be paid from a
  combination of federal, state, and local funds.  The local share of
  the total contract cost for each student is that portion of the
  local tax effort that exceeds the district's local fund assignment
  under Section 48.256, divided by the average daily attendance in
  the district.  If the contract involves a private facility, the
  state share of the total contract cost is that amount remaining
  after subtracting the local share.  If the contract involves a
  public facility, the state share is that amount remaining after
  subtracting the local share from the portion of the contract that
  involves the costs of instructional and related services.  For
  purposes of this subsection, "local tax effort" means the total
  amount of money generated by taxes imposed for debt service and
  maintenance and operation less any amounts paid into a tax
  increment fund under Chapter 311, Tax Code.  This subsection
  expires September 1, 2027.
         SECTION 4.06.  The heading to Section 29.009, Education
  Code, is amended to read as follows:
         Sec. 29.009.  PUBLIC NOTICE CONCERNING EARLY CHILDHOOD
  SPECIAL EDUCATION [PRESCHOOL] PROGRAMS [FOR STUDENTS WITH
  DISABILITIES].
         SECTION 4.07.  Section 29.010, Education Code, is amended to
  read as follows:
         Sec. 29.010.  GENERAL SUPERVISION AND COMPLIANCE.  (a)  The
  agency shall develop [adopt] and implement a comprehensive system
  for monitoring school district compliance with federal and state
  laws relating to special education.  The monitoring system must
  include a comprehensive cyclical process and a targeted risk-based
  process [provide for ongoing analysis of district special education
  data and of complaints filed with the agency concerning special
  education services and for inspections of school districts at
  district facilities].  The agency shall establish criteria and
  instruments for use in determining district compliance under this
  section [use the information obtained through analysis of district
  data and from the complaints management system to determine the
  appropriate schedule for and extent of the inspection].
         (b)  As part of the monitoring process [To complete the
  inspection], the agency must obtain information from parents and
  teachers of students in special education programs in the district.
         (c)  The agency shall develop and implement a system of
  interventions and sanctions for school districts the agency
  identifies as being in noncompliance with [whose most recent
  monitoring visit shows a failure to comply with major requirements
  of] the Individuals with Disabilities Education Act (20 U.S.C.
  Section 1400 et seq.), federal regulations, state statutes, or
  agency requirements necessary to carry out federal law or
  regulations or state law relating to special education.
         (d)  The agency shall establish a graduated process of
  sanctions to apply to [For] districts that remain in noncompliance
  for more than one year[, the first stage of sanctions shall begin
  with annual or more frequent monitoring visits]. The [Subsequent]
  sanctions shall [may] range in severity and may include [up to] the
  withholding of funds.  If funds are withheld, the agency may use the
  funds to provide, through alternative arrangements, services to
  students and staff members in the district from which the funds are
  withheld.
         (e)  The agency's complaint management division shall
  develop a system for expedited investigation and resolution of
  complaints concerning a district's failure to provide special
  education or related services to a student eligible to participate
  in the district's special education program.
         [(f)  This section does not create an obligation for or
  impose a requirement on a school district or open-enrollment
  charter school that is not also created or imposed under another
  state law or a federal law.]
         SECTION 4.08.  Section 29.018, Education Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  This section expires September 1, 2026.
         SECTION 4.09.  Subchapter A, Chapter 29, Education Code, is
  amended by adding Sections 29.026, 29.027, and 29.029 to read as
  follows:
         Sec. 29.026.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
  WITH AUTISM. (a)  The commissioner shall establish a program to
  award grants to school districts and open-enrollment charter
  schools that provide innovative services to students with autism.
         (b)  A school district, including a school district acting
  through a district charter issued under Subchapter C, Chapter 12,
  and an open-enrollment charter school, including a charter school
  that primarily serves students with disabilities, as provided under
  Section 12.1014, may apply for a grant under this section.
         (c)  A program is eligible for a grant under this section if
  the program:
               (1)  incorporates:
                     (A)  evidence-based and research-based design;
                     (B)  the use of empirical data on student
  achievement and improvement;
                     (C)  parental support and collaboration;
                     (D)  the use of technology;
                     (E)  meaningful inclusion; and
                     (F)  the ability to replicate the program for
  students statewide; and
               (2)  gives priority for enrollment to students with
  autism.
         (d)  A school district or open-enrollment charter school may
  not:
               (1)  charge a fee for the program, other than those
  authorized by law for students in public schools;
               (2)  require a parent to enroll a child in the program;
               (3)  allow an admission, review, and dismissal
  committee to place a student in the program without the written
  consent of the student's parent or guardian; or
               (4)  continue the placement of a student in the program
  after the student's parent or guardian revokes consent, in writing,
  to the student's placement in the program.
         (e)  A program under this section may:
               (1)  alter the length of the school day or school year
  or the number of minutes of instruction received by students;
               (2)  coordinate services with private or
  community-based providers;
               (3)  allow the enrollment of students without
  disabilities or with other disabilities, if approved by the
  commissioner; and
               (4)  adopt staff qualifications and staff to student
  ratios that differ from the applicable requirements of this title.
         (f)  The commissioner shall create an external panel of
  stakeholders, including parents of students with disabilities, to
  provide assistance in the selection of applications for the award
  of grants under this section.
         (g)  In selecting programs to receive a grant under this
  section, the commissioner shall prioritize programs that are
  collaborations between multiple school districts, multiple charter
  schools, or school districts and charter schools.  The selected
  programs must reflect the diversity of this state.
         (h)  A program selected to receive a grant under this section
  is to be funded for two years.
         (i)  A grant awarded to a school district or open-enrollment
  charter school under this section is in addition to the Foundation
  School Program funds that the district or charter school is
  otherwise entitled to receive.  A grant awarded under this section
  may not come out of Foundation School Program funds.
         (j)  The commissioner shall use funds appropriated or
  otherwise available to fund grants under this section.
         (k)  The commissioner and any program selected under this
  section may accept gifts, grants, and donations from any public or
  private source, person, or group to implement and administer the
  program.  The commissioner and any program selected under this
  section may not require any financial contribution from parents to
  implement and administer the program.
         (l)  A regional education service center may administer
  grants awarded under this section.
         Sec. 29.027.  GRANT PROGRAM PROVIDING TRAINING IN DYSLEXIA
  FOR TEACHERS AND STAFF. (a)  The commissioner shall establish a
  program to award grants to school districts and open-enrollment
  charter schools to increase local capacity to appropriately serve
  students with dyslexia.
         (b)  A school district, including a school district acting
  through a district charter issued under Subchapter C, Chapter 12,
  or an open-enrollment charter school, including a charter school
  that primarily serves students with disabilities, as provided under
  Section 12.1014, is eligible to apply for a grant under this section
  if the district or school submits to the commissioner a proposal on
  the use of grant funds that:
               (1)  incorporates  evidence-based and research-based
  design; and
               (2)  increases local capacity to appropriately serve
  students with dyslexia by providing:
                     (A)  high-quality training to classroom teachers
  and administrators in meeting the needs of students with dyslexia;
  or
                     (B)  training to intervention staff resulting in
  appropriate credentialing related to dyslexia.
         (c)   The commissioner shall create an external panel of
  stakeholders, including parents of students with disabilities, to
  provide assistance in the selection of applications for the award
  of grants under this section.
         (d)  A grant under this section is to be awarded for two
  years.
         (e)  A grant awarded to a school district or open-enrollment
  charter school under this section is in addition to the Foundation
  School Program funds that the district or charter school is
  otherwise entitled to receive. A grant awarded under this section
  may not come out of Foundation School Program funds.
         (f)  The commissioner shall use funds appropriated or
  otherwise available to fund grants under this section.
         (g)  The commissioner and any grant recipient selected under
  this section may accept gifts, grants, and donations from any
  public or private source, person, or group to implement and
  administer the grant.  The commissioner and any grant recipient
  selected under this section may not require any financial
  contribution from parents to implement and administer the grant.
         (h)  A regional education service center may administer
  grants awarded under this section.
         Sec. 29.029.  SUPPORTS FOR RECRUITING SPECIAL EDUCATION
  STAFF. (a) From funds appropriated or otherwise available for the
  purpose, the agency shall provide grants to school districts and
  open-enrollment charter schools to increase the number of qualified
  and appropriately credentialed special education staff, including
  special education teachers, special education paraprofessionals,
  evaluation personnel, ancillary instruction personnel, and related
  service personnel.
         (b)  A school district or open-enrollment charter school
  that receives a grant under this section shall require each person
  the district or school uses the grant money to assist in becoming
  licensed, certified, or otherwise credentialed as described by
  Subsection (a) to work at the district or school for a period
  established by commissioner rule.
         (c)  The commissioner shall adopt rules establishing the
  period of required employment described by Subsection (b) and any
  other rules necessary to implement this section.
         SECTION 4.10.  The heading to Subchapter A-1, Chapter 29,
  Education Code, is amended to read as follows:
  SUBCHAPTER A-1. PARENT-DIRECTED [SUPPLEMENTAL SPECIAL EDUCATION]
  SERVICES FOR STUDENTS RECEIVING SPECIAL EDUCATION SERVICES
  [PROGRAM]
         SECTION 4.11.  Sections 29.041(2) and (3), Education Code,
  are amended to read as follows:
               (2)  "Supplemental [special education] instructional
  materials" includes textbooks, computer hardware or software,
  other technological devices, and other materials suitable for
  addressing an educational need of a student receiving special
  education services under Subchapter A.
               (3)  "Supplemental [special education] services" means
  an additive service that provides an educational benefit to a
  student receiving special education services under Subchapter A,
  including:
                     (A)  occupational therapy, physical therapy, and
  speech therapy; and
                     (B)  private tutoring and other supplemental
  private instruction or programs.
         SECTION 4.12.  Section 29.042(a), Education Code, is amended
  to read as follows:
         (a)  The agency by rule shall establish and administer a
  parent-directed [supplemental special education services and
  instructional materials] program for students receiving special
  education services through which a parent may direct supplemental
  services and supplemental instructional materials for the parent's
  student [students] who meets [meet] the eligibility requirements
  for participation in the program. Subject to Subsection (c), the
  agency shall provide each student approved as provided by this
  subchapter a grant in the amount provided under Section 48.306 [of
  not more than $1,500] to purchase supplemental [special education]
  services and supplemental [special education] instructional
  materials.  A student may receive one grant under this subchapter
  unless the legislature appropriates money for an additional grant
  in the General Appropriations Act.
         SECTION 4.13.  Section 29.045, Education Code, is amended to
  read as follows:
         Sec. 29.045.  APPROVAL OF APPLICATION; ASSIGNMENT OF
  ACCOUNT. The [Subject to available funding the] agency shall
  approve each student who meets the program eligibility criteria
  established under Section 29.044 and assign to the student an
  account maintained under Section 29.042(b). The account may only
  be used by the student's parent to purchase supplemental [special
  education] services or supplemental [special education]
  instructional materials for the student, subject to Sections 29.046
  and 29.047.
         SECTION 4.14.  Sections 29.046(a) and (b), Education Code,
  are amended to read as follows:
         (a)  Money in an account assigned to a student under Section
  29.045 may be used only for supplemental [special education]
  services and supplemental [special education] instructional
  materials.
         (b)  Supplemental [special education] services must be
  provided by an agency-approved provider.
         SECTION 4.15.  Sections 29.047(a), (c), (d), and (e),
  Education Code, are amended to read as follows:
         (a)  The agency shall establish criteria necessary for
  agency approval for each category of provider of a professional
  service that is a supplemental [special education] service, as
  identified by the agency.
         (c)  The agency shall provide a procedure for providers of
  supplemental [special education] services to apply to the agency to
  become an agency-approved provider.
         (d)  The agency may establish criteria for agency approval of
  vendors for each category of supplemental [special education]
  instructional materials identified by the agency.
         (e)  If the agency establishes criteria for agency approval
  for a vendor of a category of supplemental [special education]
  instructional materials, the agency shall provide a procedure for
  vendors of that category to apply to the agency to become an
  agency-approved vendor.
         SECTION 4.16.  Subchapter A-1, Chapter 29, Education Code,
  is amended by adding Section 29.0475 to read as follows:
         Sec. 29.0475.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
  AUTONOMY. (a) A provider of supplemental services or vendor of
  supplemental instructional materials that receives money
  distributed under the program is not a recipient of federal
  financial assistance on the basis of receiving that money.
         (b)  A rule adopted or action taken related to the program by
  an individual, governmental entity, court of law, or program
  administrator may not:
               (1)  consider the actions of a provider of supplemental
  services, vendor of supplemental instructional materials, or
  program participant to be the actions of an agent of state
  government;
               (2)  limit:
                     (A)  a provider of supplemental services' ability
  to determine the methods used to educate the provider's students or
  to exercise the provider's religious or institutional values; or
                     (B)  a program participant's ability to determine
  the participant's educational content or to exercise the
  participant's religious values;
               (3)  obligate a provider of supplemental services or
  program participant to act contrary to the provider's or
  participant's religious or institutional values, as applicable;
               (4)  impose any regulation on a provider of
  supplemental services, vendor of supplemental instructional
  materials, or program participant beyond those regulations
  necessary to enforce the requirements of the program; or
               (5)  require as a condition of receiving money
  distributed under the program:
                     (A)  a provider of supplemental services to modify
  the provider's creed, practices, admissions policies, curriculum,
  performance standards, employment policies, or assessments; or
                     (B)  a program participant to modify the
  participant's creed, practices, curriculum, performance standards,
  or assessments.
         (c)  In a proceeding challenging a rule adopted by a state
  agency or officer under this subchapter, the agency or officer has
  the burden of proof to establish by clear and convincing evidence
  that the rule:
               (1)  is necessary to implement or enforce the program
  as provided by this subchapter;
               (2)  does not violate this section;
               (3)  does not impose an undue burden on a program
  participant or a provider of supplemental services or vendor of
  supplemental instructional materials that participates or applies
  to participate in the program; and
               (4)  is the least restrictive means of accomplishing
  the purpose of the program while recognizing the independence of a
  provider of supplemental services to meet the educational needs of
  students in accordance with the provider's religious or
  institutional values.
         SECTION 4.17.  Section 29.048, Education Code, is amended to
  read as follows:
         Sec. 29.048.  ADMISSION, REVIEW, AND DISMISSAL COMMITTEE
  DUTIES. (a) A student's admission, review, and dismissal
  committee shall develop a student's individualized education
  program under Section 29.005, in compliance with the Individuals
  with Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
  without consideration of any supplemental [special education]
  services or supplemental instructional materials that may be
  provided under the program under this subchapter.
         (b)  Unless the district first verifies that an account has
  been assigned to the student under Section 29.045, the [The]
  admission, review, and dismissal committee of a student approved
  for participation in the program shall provide to the student's
  parent at an admission, review, and dismissal committee meeting for
  the student:
               (1)  information regarding the types of supplemental
  [special education] services or supplemental instructional
  materials available under the program and provided by
  agency-approved providers for which an account maintained under
  Section 29.042(b) for the student may be used; and
               (2)  instructions regarding accessing an account
  described by Subdivision (1).
         SECTION 4.18.  Subchapter A-1, Chapter 29, Education Code,
  is amended by adding Section 29.0485 to read as follows:
         Sec. 29.0485.  DETERMINATION OF COMMISSIONER FINAL.
  Notwithstanding Section 7.057, a determination of the commissioner
  under this subchapter is final and may not be appealed.
         SECTION 4.19.  Section 29.049, Education Code, is amended to
  read as follows:
         Sec. 29.049.  RULES. The commissioner shall adopt rules as
  necessary to administer the supplemental [special education]
  services and supplemental instructional materials program under
  this subchapter.
         SECTION 4.20.  Section 29.315, Education Code, is amended to
  read as follows:
         Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF
  UNDERSTANDING. The Texas Education Agency and the Texas School for
  the Deaf shall develop[, agree to, and by commissioner rule adopt no
  later than September 1, 1998,] a memorandum of understanding to
  establish:
               (1)  the method for developing and reevaluating a set
  of indicators of the quality of learning at the Texas School for the
  Deaf;
               (2)  the process for the agency to conduct and report on
  an annual evaluation of the school's performance on the indicators;
               (3)  the requirements for the school's board to
  publish, discuss, and disseminate an annual report describing the
  educational performance of the school;
               (4)  the process for the agency to assign an
  accreditation status to the school, to reevaluate the status on an
  annual basis, and, if necessary, to conduct monitoring reviews; and
               (5)  the type of information the school shall be
  required to provide through the Public Education Information
  Management System (PEIMS).
         SECTION 4.21.  Section 30.001(b), Education Code, is amended
  to read as follows:
         (b)  The commissioner, with the approval of the State Board
  of Education, shall develop and implement a plan for the
  coordination of services to children with disabilities in each
  region served by a regional education service center.  The plan
  must include procedures for:
               (1)  identifying existing public or private
  educational and related services for children with disabilities in
  each region;
               (2)  identifying and referring children with
  disabilities who cannot be appropriately served by the school
  district in which they reside to other appropriate programs;
               (3)  assisting school districts to individually or
  cooperatively develop programs to identify and provide appropriate
  services for children with disabilities;
               (4)  expanding and coordinating services provided by
  regional education service centers for children with disabilities;
  and
               (5)  providing for special education supports
  [services], including special seats, books, instructional media,
  and other supplemental supplies and services required for proper
  instruction.
         SECTION 4.22.  Section 30.002(g), Education Code, is amended
  to read as follows:
         (g)  To facilitate implementation of this section, the
  commissioner shall develop a system to distribute from the
  foundation school fund to school districts or regional education
  service centers a special supplemental allowance for each student
  with a visual impairment and for each student with a serious visual
  disability and another medically diagnosed disability of a
  significantly limiting nature who is receiving special education
  services through any approved program.  The supplemental allowance
  may be spent only for special education services uniquely required
  by the nature of the student's disabilities and may not be used in
  lieu of educational funds otherwise available under this code or
  through state or local appropriations.
         SECTION 4.23.  Section 30.005, Education Code, is amended to
  read as follows:
         Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY
  IMPAIRED MEMORANDUM OF UNDERSTANDING.  The Texas Education Agency
  and the Texas School for the Blind and Visually Impaired shall
  develop[, agree to, and by commissioner rule adopt] a memorandum of
  understanding to establish:
               (1)  the method for developing and reevaluating a set
  of indicators of the quality of learning at the Texas School for the
  Blind and Visually Impaired;
               (2)  the process for the agency to conduct and report on
  an annual evaluation of the school's performance on the indicators;
               (3)  the requirements for the school's board to
  publish, discuss, and disseminate an annual report describing the
  educational performance of the school;
               (4)  the process for the agency to:
                     (A)  assign an accreditation status to the school;
                     (B)  reevaluate the status on an annual basis; and
                     (C)  if necessary, conduct monitoring reviews;
  and
               (5)  the type of information the school shall be
  required to provide through the Public Education Information
  Management System (PEIMS).
         SECTION 4.24.  Section 37.146(a), Education Code, as
  effective until January 1, 2025, is amended to read as follows:
         (a)  A complaint alleging the commission of a school offense
  must, in addition to the requirements imposed by Article 45.019,
  Code of Criminal Procedure:
               (1)  be sworn to by a person who has personal knowledge
  of the underlying facts giving rise to probable cause to believe
  that an offense has been committed; and
               (2)  be accompanied by a statement from a school
  employee stating:
                     (A)  whether the child is eligible for or receives
  special education services under Subchapter A, Chapter 29; and
                     (B)  the graduated sanctions, if required under
  Section 37.144, that were imposed on the child before the complaint
  was filed.
         SECTION 4.25.  Section 37.146(a), Education Code, as
  effective January 1, 2025, is amended to read as follows:
         (a)  A complaint alleging the commission of a school offense
  must, in addition to the requirements imposed by Article 45A.101,
  Code of Criminal Procedure:
               (1)  be sworn to by a person who has personal knowledge
  of the underlying facts giving rise to probable cause to believe
  that an offense has been committed; and
               (2)  be accompanied by a statement from a school
  employee stating:
                     (A)  whether the child is eligible for or receives
  special education services under Subchapter A, Chapter 29; and
                     (B)  the graduated sanctions, if required under
  Section 37.144, that were imposed on the child before the complaint
  was filed.
         SECTION 4.26.  Section 48.265(a), Education Code, is amended
  to read as follows:
         (a)  If [Notwithstanding any other provision of law, if] the
  commissioner determines that the amount appropriated for the
  purposes of the Foundation School Program exceeds the amount to
  which school districts are entitled under this chapter, the
  commissioner may provide [by rule shall establish a grant program
  through which excess funds are awarded as] grants using the excess
  money for the purchase of video equipment, or for the reimbursement
  of costs for previously purchased video equipment, used for
  monitoring special education classrooms or other special education
  settings required under Section 29.022.
         SECTION 4.27.  Section 29.002, Education Code, is repealed.
         SECTION 4.28.  This article takes effect immediately if this
  Act receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this article takes effect on the 91st day after the last day
  of the legislative session.
  ARTICLE 5. EDUCATION SAVINGS ACCOUNT PROGRAM
         SECTION 5.01.  Chapter 29, Education Code, is amended by
  adding Subchapter J to read as follows:
  SUBCHAPTER J. EDUCATION SAVINGS ACCOUNT PROGRAM
         Sec. 29.351.  DEFINITIONS. In this subchapter:
               (1)  "Account" means an education savings account
  established under the program.
               (2)  "Certified educational assistance organization"
  means an organization certified under Section 29.354 to support the
  administration of the program.
               (3)  "Child with a disability" means a child who is
  eligible to participate in a school district's special education
  program under Section 29.003.
               (4)  "Higher education provider" means an institution
  of higher education or a private or independent institution of
  higher education, as those terms are defined by Section 61.003.
               (5)  "Parent" means a resident of this state who is a
  natural or adoptive parent, managing or possessory conservator,
  legal guardian, custodian, or other person with legal authority to
  act on behalf of a child.
               (6)  "Participating child" means a child enrolled in
  the program.
               (7)  "Participating parent" means a parent of a
  participating child who submitted an application under Section
  29.356 on behalf of the child.
               (8)  "Program" means the program established under this
  subchapter.
               (9)  "Program participant" means a participating child
  or a participating parent.
         Sec. 29.352.  ESTABLISHMENT OF PROGRAM. The comptroller
  shall establish a program to provide funding for approved
  education-related expenses of participating children.
         Sec. 29.353.  PROGRAM FUND. (a) The program fund is an
  account in the general revenue fund to be administered by the
  comptroller.
         (b)  The fund is composed of:
               (1)  money appropriated to the fund;
               (2)  gifts, grants, and donations received under
  Section 29.370; and
               (3)  any other money available for purposes of the
  program.
         (c)  Money in the fund may be appropriated only for the uses
  specified by this subchapter.
         (d)  The governor and the Legislative Budget Board may not
  transfer or repurpose money under a proposal under Chapter 317,
  Government Code, to provide funding to administer the program.
         Sec. 29.3535.  PROMOTION OF PROGRAM.  Notwithstanding
  Chapter 2113, Government Code, the comptroller or the comptroller's
  designee may enter into contracts or agreements and engage in
  marketing, advertising, and other activities to promote, market,
  and advertise the development and use of the program. The
  comptroller may use money from the program fund to pay for
  activities authorized under this section.
         Sec. 29.354.  SELECTION OF CERTIFIED EDUCATIONAL ASSISTANCE
  ORGANIZATIONS. (a) An organization may apply to the comptroller
  for certification as a certified educational assistance
  organization during an application period established by the
  comptroller.
         (b)  To be eligible for certification, an organization must:
               (1)  have the ability to perform one or more of the
  duties and functions required of a certified educational assistance
  organization under this subchapter;
               (2)  be in good standing with the state; and
               (3)  be able to assist the comptroller in administering
  the program in whole or in part, such as the ability to:
                     (A)  accept, process, and track applications for
  the program;
                     (B)  assist prospective applicants, applicants,
  and program participants with finding preapproved education
  service providers and vendors of educational products;
                     (C)  accept and process payments for approved
  education-related expenses; and
                     (D)  verify that program funding is used only for
  approved education-related expenses.
         (c)  The comptroller may certify one or more educational
  assistance organizations to support the administration of the
  program, including by:
               (1)  administering in whole or in part:
                     (A)  the application process under Section
  29.356; and
                     (B)  the program expenditures process under
  Section 29.360; and
               (2)  assisting prospective applicants, applicants, and
  program participants with understanding approved education-related
  expenses and finding preapproved education service providers and
  vendors of educational products.
         (d)  A certified educational assistance organization is not
  considered to be a provider of professional or consulting services
  under Chapter 2254, Government Code.
         Sec. 29.355.  ELIGIBLE CHILD. (a) A child is eligible to
  participate in the program and may, subject to available funding
  and the requirements of this subchapter, initially enroll in the
  program for the following school year if the child is eligible to
  attend a public school under Section 25.001 and:
               (1)  either:
                     (A)  was enrolled in a public school in this state
  for at least 90 percent of the school year preceding the school year
  for which the child applies to enroll in the program;
                     (B)  is enrolling in kindergarten or first grade
  for the first time; or
                     (C)  attended a private school on a full-time
  basis or was home-schooled for the preceding school year; or
               (2)  is a sibling of a child who is eligible to
  participate in the program and:
                     (A)  applies to enroll in the program for the same
  school year in which the sibling applies to enroll in the program;
  or
                     (B)  is participating in the program.
         (b)  A child who establishes eligibility under this section
  may, subject to available funding and the requirements of this
  subchapter, participate in the program until the earliest of the
  following dates:
               (1)  the date on which the child graduates from high
  school;
               (2)  the date on which the child is no longer eligible
  to attend a public school under Section 25.001;
               (3)  the date on which the child enrolls in a public
  school, including an open-enrollment charter school, in a manner in
  which the child will be counted toward the school's average daily
  attendance for purposes of the allocation of funding under the
  foundation school program;
               (4)  for a child who performed satisfactorily on an
  assessment instrument administered under Subchapter B, Chapter 39,
  in the school year preceding the child's enrollment in the program,
  the date of the first day of the school year following the school
  year in which the child fails to perform satisfactorily for the
  second consecutive year in the same subject area on an assessment
  instrument required under Section 29.371; or
               (5)  the date on which the child is declared ineligible
  for the program by the comptroller under this subchapter.
         (c)  Notwithstanding Subsection (a) or (b), a child is not
  eligible to participate in the program during the period in which
  the child's parent or legal guardian is a state representative or
  state senator.
         Sec. 29.3551.  PROGRAM ENROLLMENT. (a) For the 2024-2025
  school year, the total amount of children participating in the
  program may not exceed 25,000. 
         (b)  For the 2025-2026 and 2026-2027 school years, the total
  amount of children participating in the program may not exceed the
  sum of: 
               (1)  the number of children who participated in the
  program during the preceding school year; and
               (2)  25,000.
         (c)  This section expires September 1, 2027.
         Sec. 29.356.  APPLICATION TO PROGRAM. (a) A parent of an
  eligible child may apply to a certified educational assistance
  organization designated by the comptroller to enroll the child in
  the program for the following school year. The comptroller shall
  establish deadlines by which an applicant must complete and submit
  an application form to participate in the program.
         (b)  On receipt of more acceptable applications during an
  application period for admission under this section than available
  positions in the program due to insufficient funding, a certified
  educational assistance organization shall, at the direction of the
  comptroller, prioritize applicants:
               (1)  in the following order:
                     (A)  children to whom Paragraph (B) does not
  apply; and
                     (B)  children who previously ceased participation
  in the program due to enrollment in a public school; and
               (2)  within each of the groups described by Subdivision
  (1), as follows, as applicable:
                     (A)  children with a disability who are members of
  a household with a total annual income that is at or below 400
  percent of the federal poverty guidelines;
                     (B)  children who are members of a household with
  a total annual income that is at or below 185 percent of the federal
  poverty guidelines;
                     (C)  children who are members of a household with
  a total annual income that is above 185 percent of the federal
  poverty guidelines and below 400 percent of the federal poverty
  guidelines; and
                     (D)  children who are members of a household with
  a total annual income that is at or above 400 percent of the federal
  poverty guidelines.
         (b-1)  For purposes of Subsection (b), a certified
  educational assistance organization shall prioritize a
  participating child's sibling who is initially eligible to
  participate in the program under Section 29.355(a)(2) in the same
  manner as the participating child.
         (b-2)  The agency shall provide to the comptroller the
  information necessary to make the determinations required under
  Subsection (b).
         (c)  The comptroller shall create an application form for the
  program and ensure the application form is made readily available
  through various sources, including a certified educational
  assistance organization's Internet website. The application form
  must state the application deadlines established by the comptroller
  under Subsection (a). Each certified educational assistance
  organization designated under Subsection (a) shall ensure that the
  application form, including any required supporting document, is
  capable of being submitted to the organization electronically.
         (d)  The comptroller shall create and maintain a waiting list
  based on the priority categories described by Subsection (b) for
  applicants if, during an application period, there are more
  acceptable applications for admission than there are available
  positions.
         (e)  Each certified educational assistance organization
  designated under Subsection (a) shall post on the organization's
  Internet website program information for prospective applicants,
  including:
               (1)  a description of the program;
               (2)  expenses allowed under the program under Section
  29.359;
               (3)  a link to a list of preapproved education service
  providers and vendors of educational products under Section 29.358;
               (4)  a description of the application process;
               (5)  a description of the applicant selection process;
               (6)  a description of the program expenditures process
  under Section 29.360; and
               (7)  a description of the responsibilities of program
  participants.
         (f)  A certified educational assistance organization shall
  produce and provide to each participating parent a
  comptroller-approved program participant handbook that includes:
               (1)  information regarding expenses allowed under the
  program under Section 29.359;
               (2)  if the handbook is provided electronically, a link
  to  a list of preapproved education service providers and vendors of
  educational products under Section 29.358;
               (3)  a description of the program expenditures process
  under Section 29.360; and
               (4)  a description of the responsibilities of program
  participants.
         (g)  Each certified educational assistance organization
  designated under Subsection (a) shall on enrollment and annually
  provide to each participating parent the information described by
  Subsections (e) and (f). The organization may provide the
  information electronically.
         (h)  The comptroller or a certified educational assistance
  organization designated under Subsection (a):
               (1)  may require a participating parent to submit
  annual notice regarding the parent's intent for the child to
  continue participating in the program for the next school year; and
               (2)  may not require a program participant in good
  standing to annually resubmit an application for continued
  participation in the program.
         Sec. 29.357.  PARTICIPATION IN PROGRAM. To receive funding
  under the program, a participating parent must agree to:
               (1)  spend money received through the program only for
  expenses allowed under Section 29.359;
               (2)  ensure the administration of assessment
  instruments to the participating child in accordance with Section
  29.371 and share or authorize administrators of assessment
  instruments to share with the child's certified educational
  assistance organization the results of those assessment
  instruments;
               (3)  refrain from selling an item purchased with
  program money while the child is participating in the program; and
               (4)  notify the applicable certified educational
  assistance organization not later than 30 days after the date on
  which the child:
                     (A)  enrolls in a public school, including an
  open-enrollment charter school in a manner in which the child will
  be counted toward the school's average daily attendance for
  purposes of the allocation of funding under the foundation school
  program;
                     (B)  graduates from high school; or
                     (C)  is no longer eligible to enroll in a public
  school under Section 25.001.
         Sec. 29.358.  PREAPPROVED PROVIDERS AND VENDORS. (a) The
  comptroller shall by rule establish a process for the preapproval
  of education service providers and vendors of educational products
  for participation in the program. The comptroller shall allow for
  the submission of applications on a rolling basis.
         (b)  The comptroller shall approve an education service
  provider or vendor of educational products for participation in the
  program if the provider or vendor:
               (1)  has previously been approved by the agency to
  provide supplemental special education services under Subchapter
  A-1 and remains in good standing with the agency;
               (2)  for a private school, demonstrates accreditation
  by an organization recognized by:
                     (A)  the Texas Private School Accreditation
  Commission; or
                     (B)  the agency;
               (3)  for a public school, demonstrates:
                     (A)  accreditation by the agency; and
                     (B)  the ability to provide services or products
  to participating children in a manner in which the children are not
  counted toward the school's average daily attendance;
               (4)  for a private tutor, therapist, or teaching
  service, demonstrates that:
                     (A)  the tutor or therapist or each employee of
  the teaching service who intends to provide educational services to
  a participating child:
                           (i)  is an educator employed by or a retired
  educator formerly employed by a school accredited by the agency, an
  organization recognized by the agency, or an organization
  recognized by the Texas Private School Accreditation Commission;
                           (ii)  holds a relevant license or
  accreditation issued by a state, regional, or national
  certification or accreditation organization; or
                           (iii)  is employed in or retired from a
  teaching or tutoring capacity at a higher education provider;
                     (B)  the tutor or therapist or each employee of
  the teaching service who intends to provide educational services to
  a participating child provided to the comptroller a national
  criminal history record information review completed by the tutor,
  therapist, or employee, as applicable, within a period established
  by comptroller rule; and
                     (C)  the tutor or therapist or each employee of
  the teaching service who intends to provide educational services to
  a participating child is not:
                           (i)  required to be discharged or refused to
  be hired by a school district under Section 22.085; or
                           (ii)  included in the registry under Section
  22.092; or
               (5)  for a higher education provider, demonstrates
  nationally recognized postsecondary accreditation.
         (c)  The comptroller shall review the national criminal
  history record information or documentation for each private tutor,
  therapist, or teaching service employee who submits information or
  documentation under this section. The tutor, therapist, or service
  must provide the comptroller with any information requested by the
  comptroller to enable the comptroller to complete the review.
         (d)  An education service provider or vendor of educational
  products shall provide information requested by the comptroller to
  verify the provider's or vendor's eligibility for preapproval under
  Subsection (b). The comptroller may not approve a provider or
  vendor if the comptroller cannot verify the provider's or vendor's
  eligibility for preapproval.
         (e)  An education service provider or vendor of educational
  products must agree to:
               (1)  abide by the disbursement schedule under Section
  29.360(c) and all other requirements of this subchapter;
               (2)  accept money from the program only for
  education-related expenses approved under Section 29.359;
               (3)  notify the comptroller not later than the 30th day
  after the date that the provider or vendor no longer meets the
  requirements of this section; and
               (4)  return any money received in violation of this
  subchapter or other relevant law to the comptroller for deposit
  into the program fund.
         (f)  An education service provider or vendor of educational
  products that receives approval under this section may participate
  in the program until the earliest of the date on which the provider
  or vendor:
               (1)  no longer meets the requirements under this
  section; or
               (2)  violates this subchapter or other relevant law.
         (g)  This section may not be construed to allow a learning
  pod, as defined by Section 27.001, or a home school to qualify as an
  approved education service provider or vendor of educational
  products.
         Sec. 29.359.  APPROVED EDUCATION-RELATED EXPENSES. (a)
  Subject to Subsection (b), money received under the program may be
  used only for the following education-related expenses incurred by
  a participating child at a preapproved education service provider
  or vendor of educational products:
               (1)  tuition and fees for:
                     (A)  a private school;
                     (B)  a higher education provider;
                     (C)  an online educational course or program; or
                     (D)  a program that provides training for an
  industry-based credential;
               (2)  the purchase of textbooks or other instructional
  materials or uniforms required by a private school, higher
  education provider, or course in which the child is enrolled,
  including purchases made through a third-party vendor of
  educational products;
               (3)  fees for classes or other educational services
  provided by a public school, including an open-enrollment charter
  school, if the classes or services do not qualify the child to be
  included in the school's average daily attendance;
               (4)  costs related to academic assessments;
               (5)  fees for services provided by a private tutor or
  teaching service;
               (6)  fees for transportation provided by a
  fee-for-service transportation provider for the child to travel to
  and from a preapproved education service provider or vendor of
  educational products;
               (7)  fees for educational therapies or services
  provided by a practitioner or provider, only for fees that are not
  covered by any federal, state, or local government benefits such as
  Medicaid or the Children's Health Insurance Program (CHIP) or by
  any private insurance that the child is enrolled in at the time of
  receiving the therapies or services;
               (8)  costs of computer hardware and software and other
  technological devices prescribed by a physician to facilitate a
  child's education, not to exceed in any year 10 percent of the total
  amount paid to the participating child's account that year;
               (9)  costs of breakfast or lunch provided to a child
  during the school day by a private school; and
               (10)  before- and after-school academic child care.
         (b)  Money received under the program may not be used to pay
  any person who is related to the program participant within the
  third degree by consanguinity or affinity, as determined under
  Chapter 573, Government Code.
         (c)  A finding that a program participant used money
  distributed under the program to pay for an expense not allowed
  under Subsection (a) does not affect the validity of any payment
  made by the participant for an approved education-related expense
  that is allowed under that subsection.
         Sec. 29.360.  PROGRAM EXPENDITURES. (a) The comptroller
  shall disburse from the program fund to each certified educational
  assistance organization the amount specified under Section
  29.361(a) for each participating child for which the organization
  is responsible.
         (b)  To initiate payment to an education service provider or
  vendor of educational products for an education-related expense
  approved under Section 29.359, the participating parent must submit
  a request in a form prescribed by comptroller rule to the applicable
  certified educational assistance organization.
         (c)  Subject to Subsection (d) and Sections 29.362(g) and
  29.364, on receiving a request under Subsection (b), a certified
  educational assistance organization shall verify that the request
  is for an expense approved under Section 29.359 and, not later than
  the 15th business day after the date the organization verifies the
  request, send payment to the education service provider or vendor
  of educational products.
         (d)  A disbursement under this section may not exceed the
  applicable participating child's account balance.
         (e)  A certified educational assistance organization shall
  provide the participating parent for which the organization is
  responsible with electronic access to:
               (1)  view the current balance of the participating
  child's account;
               (2)  initiate the payment process under Subsection (b);
  and
               (3)  view a summary of the past activity on the
  participating child's account, including payments from the account
  to education service providers and vendors of educational products.
         Sec. 29.361.  AMOUNT OF PAYMENT; FINANCING. (a) Regardless
  of the deadline by which the participating parent applies for
  enrollment in the program under Section 29.356(a) and except as
  provided by Subsections (a-1) and (a-3), a participating parent
  shall receive each school year that the parent's child participates
  in the program payments from the state to be held in trust for the
  benefit of the child from funds available under Section 29.353 to
  the child's account equal to 75 percent of the estimated statewide
  average amount of funding per student in average daily attendance
  for the applicable school year, as determined by the commissioner
  not later than January 15 preceding the applicable school year.  For
  purposes of determining the estimated statewide average amount of
  funding per student under this subsection, the commissioner shall
  include state and local funding under Chapters 46, 48, and 49 and
  the amount the state is required to contribute under Section
  825.404, Government Code.
         (a-1)  If a child enrolls in the program after the beginning
  of a school year, the comptroller shall prorate the amount the
  participating parent of the child receives under Subsection (a)
  based on the date the child enrolls in the program.
         (a-2)  A participating parent must submit all requests for
  payment from the account of the parent's child for expenses
  incurred during a fiscal year to the comptroller not less than 90
  days after the end of that fiscal year.
         (a-3)  Notwithstanding Subsection (a), a participating child
  who is a home-schooled student, as defined by Section 29.916(a)(1),
  may not receive payments to the child's account under Subsection
  (a) in an amount that exceeds $1,000 for a school year.
         (b)  Any money remaining in a participating child's account
  at the end of a fiscal year that is not obligated for expenses
  incurred during that fiscal year shall be returned to the
  comptroller for deposit to the program fund. The comptroller shall
  provide to a participating parent adequate notice of the return of
  money in the account under this subsection.
         (c)  A participating parent may make payments for the
  expenses of educational programs, services, and products not
  covered by money in the account of the parent's child.
         (d)  A payment under Subsection (a) may not be financed using
  federal money or money from the available school fund or
  instructional materials fund.
         (e)  Payments received under this subchapter do not
  constitute taxable income to a participating parent, unless
  otherwise provided by federal or another state's law.
         (f)  On dates consistent with satisfying the application
  deadlines established under Section 29.356(a), the agency shall
  calculate and report to the comptroller the amount specified under
  Subsection (a) for each participating child.
         Sec. 29.3615.  ENROLLMENT IN PUBLIC SCHOOL. Notwithstanding
  any other provision of this subchapter or other law, if a child
  ceases participation in the program due to the child's enrollment
  in a public school, including an open-enrollment charter school:
               (1)  the public school is entitled to receive an amount
  equal to the amount in the child's account returned to the
  comptroller under Section 29.362(f); and
               (2)  the child may not be considered in evaluating the
  performance of a public school under the public school
  accountability system as prescribed by Chapters 39 and 39A for the
  first school year after the child ceases participation in the
  program.
         Sec. 29.362.  ADMINISTRATION OF ACCOUNTS. (a)  On receipt of
  money distributed by the comptroller for purposes of making
  payments to accounts, a certified educational assistance
  organization shall hold the money in trust for the benefit of
  participating children and make quarterly payments to the account
  of each participating child for which the organization is
  responsible in equal amounts on or before the first day of July,
  October, January, and April.
         (b)  Each year, the comptroller may deduct from the total
  amount of money appropriated for purposes of this subchapter an
  amount, not to exceed three percent of that total amount, to cover
  the comptroller's cost of administering the program.
         (c)  Each quarter, each certified educational assistance
  organization shall submit to the comptroller a breakdown of the
  organization's actual costs of administering the program for the
  previous quarter and the comptroller shall disburse from money
  appropriated for the program to each certified educational
  assistance organization the amount necessary to cover the
  organization's actual costs of administering the program for that
  quarter. The total amount disbursed to all certified educational
  assistance organizations under this subsection for a state fiscal
  year may not exceed five percent of the amount appropriated for the
  purposes of the program for that fiscal year.
         (d)  On or before the first day of October and February or
  another date determined by comptroller rule, each certified
  educational assistance organization shall:
               (1)  verify with the agency that each participating
  child for which the organization is responsible is not enrolled in a
  public school, including an open-enrollment charter school, in a
  manner in which the child is counted toward the school's average
  daily attendance for purposes of the allocation of state funding
  under the foundation school program; and
               (2)  notify the comptroller if the organization
  determines that a participating child for which the organization is
  responsible is enrolled in a public school, including an
  open-enrollment charter school, in a manner in which the child is
  counted toward the school's average daily attendance for purposes
  of the allocation of state funding under the foundation school
  program.
         (e)  The comptroller by rule shall establish a process by
  which a participating parent may authorize the comptroller or the
  certified educational assistance organization to make a payment
  directly from the account of the parent's child to a preapproved
  education service provider or vendor of educational products for an
  expense allowed under Section 29.359.
         (f)  On the date on which a child who participated in the
  program is no longer eligible to participate in the program under
  Section 29.355 and payments for any education-related expenses
  allowed under Section 29.359 from the child's account have been
  completed, the child's account shall be closed and any remaining
  money returned to the comptroller for deposit in the program fund.
         (g)  Each quarter, any interest or other earnings
  attributable to money held by a certified educational assistance
  organization for purposes of the program shall be remitted to the
  comptroller for deposit in the program fund.
         Sec. 29.363.  AUDITING. (a) The comptroller shall contract
  with a private entity to audit accounts and program participant
  eligibility data not less than once per year to ensure compliance
  with applicable law and program requirements.  The audit must
  include a review of:
               (1)  each certified educational assistance
  organization's internal controls over program transactions; and
               (2)  compliance by:
                     (A)  certified educational assistance
  organizations with Section 29.354 and other program requirements;
                     (B)  program participants with Section 29.357 and
  other program requirements; and
                     (C)  education service providers and vendors of
  educational products with Section 29.358 and other program
  requirements.
         (b)  In conducting an audit, the private entity may require a
  certified educational assistance organization, program
  participant, or education service provider or vendor of educational
  products to provide information and documentation regarding any
  transaction occurring under the program.
         (c)  The private entity shall report to the comptroller any
  violation of this subchapter or other relevant law and any
  transactions the entity determines to be unusual or suspicious
  found by the entity during an audit conducted under this section.  
  The comptroller shall report the violation or transaction to:
               (1)  the applicable certified educational assistance
  organization;
               (2)  the education service provider or vendor of
  educational products, as applicable; and
               (3)  the participating parent of each participating
  child who is affected by the violation or transaction.
         Sec. 29.364.  SUSPENSION OF ACCOUNT. (a) The comptroller
  shall suspend the account of a program participant who fails to
  remain in good standing by complying with applicable law or a
  requirement of the program.
         (b)  On suspension of an account under Subsection (a), the
  comptroller shall notify the participating parent in writing that
  the account of the parent's child has been suspended and that no
  additional payments may be made from the account. The notification
  must specify the grounds for the suspension and state that the
  participating parent has 30 days to respond and take any corrective
  action required by the comptroller.
         (c)  On the expiration of the 30-day period under Subsection
  (b), the comptroller shall:
               (1)  order closure of the suspended account;
               (2)  order temporary reinstatement of the account,
  conditioned on the performance of a specified action by the program
  participant; or
               (3)  order full reinstatement of the account.
         (d)  The comptroller may recover money distributed under the
  program that was used for expenses not allowed under Section
  29.359, for a child who was not eligible to participate in the
  program at the time of the expenditure, or from an education service
  provider or vendor of educational products that was not approved at
  the time of the expenditure. The money may be recovered from the
  program participant or the education service provider or vendor of
  educational products that received the money if the participating
  child's account is suspended or closed under this section. Failure
  to reimburse the state on demand by the comptroller constitutes a
  debt to the state for purposes of Section 403.055, Government Code.
  The comptroller shall deposit money recovered under this subsection
  into the program fund.
         Sec. 29.365.  TUITION AND FEES; REFUND PROHIBITED. (a) An
  education service provider or vendor of educational products may
  not charge a participating child an amount greater than the
  standard amount charged for that service or product by the provider
  or vendor.
         (b)  An education service provider or vendor of educational
  products receiving money distributed under the program may not in
  any manner rebate, refund, or credit to or share with a program
  participant, or any person on behalf of a participant, any program
  money paid or owed by the participant to the provider or vendor.
         Sec. 29.366.  REFERRAL TO DISTRICT ATTORNEY. If the
  comptroller obtains evidence of fraudulent use of an account or
  money distributed under the program or any other violation of law by
  a certified educational assistance organization, program
  participant, or education service provider or vendor of educational
  products, the comptroller shall notify the appropriate local county
  or district attorney with jurisdiction over, as applicable:
               (1)  the principal place of business of the
  organization or provider or vendor; or
               (2)  the residence of the program participant.
         Sec. 29.367.  SPECIAL EDUCATION NOTICE. (a) Each certified
  educational assistance organization designated under Section
  29.356(a) shall post on the organization's Internet website and
  provide to each parent who submits an application for the program a
  notice that:
               (1)  states that a private school is not subject to
  federal and state laws regarding the provision of educational
  services to a child with a disability in the same manner as a public
  school; and
               (2)  provides information regarding rights to which a
  child with a disability is entitled under federal and state law if
  the child attends a public school, including:
                     (A)  rights provided under the Individuals with
  Disabilities Education Act (20 U.S.C. Section 1400 et seq.); and
                     (B)  rights provided under Subchapter A.
         (b)  A private school in which a participating child with a
  disability enrolls shall provide to the participating parent a copy
  of the notice required under Subsection (a).
         Sec. 29.368.  CHARACTER OF DISTRIBUTION. An education
  service provider or vendor of educational products that receives
  money distributed under the program is not a recipient of federal
  financial assistance and may not be considered to be an agent of
  state government on the basis of receiving that money.
         Sec. 29.369.  STUDENT RECORDS AND INFORMATION. (a) On
  request by the parent of a child participating or seeking to
  participate in the program, the school district or open-enrollment
  charter school that the child would otherwise attend shall provide
  a copy of the child's school records possessed by the district or
  school, if any, to the child's parent or, if applicable, the private
  school the child attends.
         (b)  As necessary to verify a child's eligibility for the
  program, the agency, a school district, or an open-enrollment
  charter school shall provide to the applicable certified
  educational assistance organization any information available to
  the agency, district, or school requested by the organization
  regarding a child who participates or seeks to participate in the
  program, including information regarding:
               (1)  the child's public school enrollment status; and
               (2)  whether the child:
                     (A)  is a child with a disability; or
                     (B)  can be counted toward a public school's
  average daily attendance for purposes of the allocation of funding
  under the foundation school program.
         (c)  A certified educational assistance organization may not
  retain information provided under Subsection (b) beyond the period
  necessary to determine a child's eligibility to participate in the
  program.
         (d)  A certified educational assistance organization or an
  education service provider or vendor of educational products that
  obtains information regarding a participating child:
               (1)  shall comply with state and federal law regarding
  the confidentiality of student educational information; and
               (2)  may not sell or otherwise distribute information
  regarding a child participating in the program.
         Sec. 29.370.  GIFTS, GRANTS, AND DONATIONS. The comptroller
  and a certified educational assistance organization may solicit and
  accept gifts, grants, and donations from any public or private
  source for any expenses related to the administration of the
  program, including establishing the program and contracting for the
  report required under Section 29.372.
         Sec. 29.371.  ADMINISTRATION OF STATE ASSESSMENT
  INSTRUMENTS. (a)  The agency shall ensure that each child
  participating in the program is annually administered each
  assessment instrument required to be administered to a public
  school student at the child's grade and course level under Section
  39.023(a) or (c), subject to any applicable exemptions or
  accommodations provided under Subchapter B, Chapter 39.
         (b)  For purposes of the annual report required under Section
  29.372, the agency shall provide to the comptroller the results of
  the assessment instruments administered under this section, in
  aggregate and disaggregated by race, ethnicity, socioeconomic
  status, and status as a child with a disability.  A child's results
  on an assessment instrument administered under this section are
  confidential, are not subject to disclosure under Chapter 552,
  Government Code, and may only be shared as necessary to develop the
  annual report required under Section 29.372 of this subchapter.  In
  providing the results of the assessment instruments, the agency
  shall ensure compliance with state and federal law regarding the
  confidentiality of student educational information, including the
  Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
  Section 1232g).
         (c)  The agency shall require a regional education service
  center to administer assessment instruments under this section.
         (d)  A school district may administer assessment instruments
  under this section.
         (e)  If authorized by the agency, a private school may, but
  is not required to, administer assessment instruments under this
  section in accordance with agency rule.
         Sec. 29.372.  ANNUAL REPORT. (a)  The comptroller shall
  require that the certified educational assistance organizations
  collaborate to compile program data and produce an annual
  longitudinal report regarding:
               (1)  the number of program applications received,
  accepted, and wait-listed, disaggregated by age;
               (2)  program participant satisfaction;
               (3)  the results of assessment instruments provided in
  accordance with Section 29.371;
               (4)  the effect of the program on public and private
  school capacity and availability;
               (5)  the amount of cost savings accruing to the state as
  a result of the program;
               (6)  in a report submitted in an even-numbered year
  only, an estimate of the total amount of funding required for the
  program for the next state fiscal biennium;
               (7)  the amount of gifts, grants, and donations
  received under Section 29.370; and
               (8)  based on surveys of former program participants or
  other sources available to the organizations, the number and
  percentage of participating children who, within one year after
  graduating from high school, are:
                     (A)  college ready, as indicated by earning a
  minimum of 12 non-remedial semester credit hours or the equivalent
  or an associate degree from a postsecondary educational
  institution;
                     (B)  career ready, as indicated by:
                           (i)  earning a credential of value included
  in a library of credentials established under Section 2308A.007,
  Government Code; or
                           (ii)  employment at or above the median wage
  in the child's region; or
                     (C)  military ready, as indicated by achieving a
  passing score set by the applicable military branch on the Armed
  Services Vocational Aptitude Battery and enlisting in the armed
  forces of the United States or the Texas National Guard.
         (b)  In producing the report, the certified educational
  assistance organizations shall:
               (1)  use appropriate analytical and behavioral science
  methodologies to ensure public confidence in the report; and
               (2)  comply with the requirements regarding the
  confidentiality of student educational information under the
  Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
  Section 1232g).
         (c)  The report must cover a period of not less than five
  years and include, subject to Subsection (b)(2), the data analyzed
  and methodology used.
         (d)  The comptroller and the applicable certified
  educational assistance organizations shall post the report on the
  comptroller's and organization's respective Internet websites.
         Sec. 29.373.  RULES; PROCEDURES. The comptroller shall
  adopt rules and procedures as necessary to implement, administer,
  and enforce this subchapter.
         Sec. 29.374.  APPEAL; FINALITY OF DECISIONS. (a) A program
  participant may appeal to the comptroller an administrative
  decision made by a certified educational assistance organization
  under this subchapter, including a decision regarding eligibility,
  allowable expenses, or the participant's removal from the program.
         (b)  This subchapter may not be construed to confer a
  property right on a certified educational assistance organization,
  education service provider, vendor of educational products, or
  program participant.
         (c)  A decision of the comptroller made under this subchapter
  is final and not subject to appeal.
         Sec. 29.375.  TERM OF AUTHORIZATION. (a) The program is
  subject to appropriations from the legislature and continues in
  existence until September 1, 2027, unless reauthorized by the
  legislature.
         (b)  Notwithstanding Subsection (a), a program participant
  who is participating in the program on or before September 1, 2027,
  shall continue to receive payments from the state under Section
  29.361 until the date on which the child who participated in the
  program would no longer be eligible to participate in the program
  under Section 29.355(b).
         (c)  This subchapter expires September 1, 2027.
         SECTION 5.02.  Section 22.092(d), Education Code, is amended
  to read as follows:
         (d)  The agency shall provide equivalent access to the
  registry maintained under this section to:
               (1)  private schools;
               (2)  public schools; [and]
               (3)  nonprofit teacher organizations approved by the
  commissioner for the purpose of participating in the tutoring
  program established under Section 33.913; and
               (4)  the comptroller for the purpose of preapproving
  education service providers and vendors of educational products
  under Section 29.358 for participation in the program established
  under Subchapter J, Chapter 29.
         SECTION 5.03.  Section 411.109, Government Code, is amended
  by adding Subsection (b-1) and amending Subsection (c) to read as
  follows:
         (b-1)  The comptroller is entitled to obtain criminal
  history record information as provided by Subsection (c) about a
  person who is a private tutor, a therapist, or an employee of a
  teaching service or school who intends to provide educational
  services to a child participating in the program established under
  Subchapter J, Chapter 29, Education Code, and is seeking approval
  to receive money distributed under that program.
         (c)  Subject to Section 411.087 and consistent with the
  public policy of this state, the comptroller is entitled to:
               (1)  obtain through the Federal Bureau of Investigation
  criminal history record information maintained or indexed by that
  bureau that pertains to a person described by Subsection (a), [or]
  (b), or (b-1); and
               (2)  obtain from the department or any other criminal
  justice agency in this state criminal history record information
  maintained by the department or that criminal justice agency that
  relates to a person described by Subsection (a), [or] (b), or (b-1).
         SECTION 5.04.  Subchapter J, Chapter 29, Education Code, as
  added by this article, applies beginning with the 2024-2025 school
  year.
         SECTION 5.05.  Not later than May 15, 2024, the comptroller
  of public accounts shall adopt rules as provided by Section 29.373,
  Education Code, as added by this article.
         SECTION 5.06.  (a) The constitutionality and other validity
  under the state or federal constitution of all or any part of
  Subchapter J, Chapter 29, Education Code, as added by this article,
  may be determined in an action for declaratory judgment under
  Chapter 37, Civil Practice and Remedies Code, in a district court in
  Travis County.
         (b)  An order, however characterized, of a trial court
  granting or denying a temporary or otherwise interlocutory
  injunction or a permanent injunction on the grounds of the
  constitutionality or unconstitutionality, or other validity or
  invalidity, under the state or federal constitution of all or any
  part of Subchapter J, Chapter 29, Education Code, as added by this
  article, may be reviewed only by direct appeal to the Texas Supreme
  Court filed not later than the 15th day after the date on which the
  order was entered. The Texas Supreme Court shall give precedence to
  appeals under this section over other matters.
         (c)  The direct appeal is an accelerated appeal.
         (d)  This section exercises the authority granted by Section
  3-b, Article V, Texas Constitution.
         (e)  The filing of a direct appeal under this section will
  automatically stay any temporary or otherwise interlocutory
  injunction or permanent injunction granted in accordance with this
  section pending final determination by the Texas Supreme Court,
  unless the supreme court makes specific findings that the applicant
  seeking such injunctive relief has pleaded and proved that:
               (1)  the applicant has a probable right to the relief it
  seeks on final hearing;
               (2)  the applicant will suffer a probable injury that
  is imminent and irreparable, and that the applicant has no other
  adequate legal remedy; and
               (3)  maintaining the injunction is in the public
  interest.
         (f)  An appeal under this section, including an
  interlocutory, accelerated, or direct appeal, is governed, as
  applicable, by the Texas Rules of Appellate Procedure, including
  Rules 25.1(d)(6), 28.1, 32.1(g), 37.3(a)(1), 38.6(a) and (b),
  40.1(b), and 49.4.
         (g)  This section does not authorize an award of attorney's
  fees against this state, and Section 37.009, Civil Practice and
  Remedies Code, does not apply to an action filed under this section.
         SECTION 5.07.  It is the intent of the legislature that every
  provision, section, subsection, sentence, clause, phrase, or word
  in this article, and every application of the provisions in this
  article to each person or entity, is severable from each other. If
  any application of any provision in this article to any person,
  group of persons, or circumstances is found by a court to be invalid
  for any reason, the remaining applications of that provision to all
  other persons and circumstances shall be severed and may not be
  affected.
         SECTION 5.08.  This article takes effect immediately if this
  Act receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this article takes effect on the 91st day after the last day
  of the legislative session.
  ARTICLE 6. CHANGES RELATED TO PUBLIC SCHOOLS GENERALLY
         SECTION 6.01.  Subchapter Z, Chapter 25, Education Code, is
  amended by adding Section 25.906 to read as follows:
         Sec. 25.906.  PROTECTIONS FOR CERTAIN MILITARY DEPENDENTS.
  (a) In this section:
               (1)  "Compact" means the Interstate Compact on
  Educational Opportunity for Military Children executed under
  Section 162.002.
               (2)  "Uniformed services" means:
                     (A)  the United States Army, Navy, Air Force,
  Space Force, Marine Corps, or Coast Guard;
                     (B)  the Commissioned Officer Corps of the
  National Oceanic and Atmospheric Administration; or
                     (C)  the Commissioned Corps of the United States
  Public Health Service.
         (b)  The provisions of Articles IV, V, VI, and VII of the
  compact apply to the following children as if those children were
  children described by Article III of the compact:
               (1)  a child of a veteran of the uniformed services who
  was discharged or released through retirement, for a period of four
  years after the date of the veteran's retirement, if the veteran
  returns to the veteran's home of record on military orders; and
               (2)  a child of a member of the uniformed services who
  dies on active duty or as a result of injuries sustained on active
  duty, for a period of four years after the member's death.
         (c)  Each school district and open-enrollment charter school
  that maintains an Internet website shall post on the district's or
  school's Internet website an easily accessible link to information
  regarding the compact and the additional protections provided by
  this section.
         SECTION 6.02.  Section 26.002, Education Code, is amended to
  read as follows:
         Sec. 26.002.  DEFINITIONS [DEFINITION].  In this chapter:
               (1)  "Benchmark assessment" includes a benchmark
  assessment instrument as defined by Section 39.0263(a) and a
  district-required assessment designed to evaluate students against
  a set of national or state comparison points.
               (2)  "Parent" [, "parent"] includes a person standing
  in parental relation.  The term does not include a person as to whom
  the parent-child relationship has been terminated or a person not
  entitled to possession of or access to a child under a court order.  
  Except as provided by federal law, all rights of a parent under
  Title 2 of this code and all educational rights under Section
  151.001(a)(10), Family Code, shall be exercised by a student who is
  18 years of age or older or whose disabilities of minority have been
  removed for general purposes under Chapter 31, Family Code, unless
  the student has been determined to be incompetent or the student's
  rights have been otherwise restricted by a court order.
               (3)  "Test" includes a benchmark assessment.
         SECTION 6.03.  Chapter 26, Education Code, is amended by
  adding Section 26.0062 to read as follows:
         Sec. 26.0062.  NOTICE REGARDING BENCHMARK ASSESSMENT
  RESULTS. A school district shall report in writing to each
  student's parent the results of a benchmark assessment administered
  to the student not later than the 30th calendar day after the date
  on which the results of the assessment are available.  The results
  may be made available to the parent through a parent portal.
         SECTION 6.04.  Section 28.006, Education Code, is amended by
  amending Subsections (a), (b), (c), (c-1), (c-2), (c-3), and (j)
  and adding Subsections (a-1), (b-2), (b-3), (b-4), (d-1), (g-3),
  (g-4), (g-5), (g-6), (n), and (o) to read as follows:
         (a)  The commissioner shall adopt procedures [develop
  recommendations] for school districts and open-enrollment charter
  schools for:
               (1)  administering reading instruments to:
                     (A)  ensure the results of the reading instruments
  are valid, reliable, and equated;
                     (B)  diagnose student reading development and
  comprehension; and
                     (C)  identify students at risk for dyslexia or
  other reading difficulties;
               (2)  training educators in administering the reading
  instruments; and
               (3)  applying the results of the reading instruments to
  the instructional program and intervention practices.
         (a-1)  A school district or open-enrollment charter school
  may not administer a reading instrument to a student more than three
  times during a school year.
         (b)  The commissioner shall adopt a comprehensive list of
  reading instruments that a school district or open-enrollment
  charter school shall select from for [may] use in diagnosing [to
  diagnose student] reading development and comprehension for
  students who are enrolled in kindergarten through third gradeA
  reading instrument included on the commissioner's list must include
  the foundational literacy components of phonemic and phonological
  awareness, phonics, vocabulary, fluency, and comprehension. For
  use in diagnosing the reading development and comprehension of
  kindergarten students, the commissioner shall adopt [a]
  multidimensional assessment tools [tool] that include [includes a]
  reading instruments that test [instrument and tests] at least three
  developmental skills, including the foundational literacy
  components. A multidimensional assessment tool administered as
  provided by this subsection is considered to be a reading
  instrument for purposes of this section.  A school district or
  open-enrollment charter school [district-level committee
  established under Subchapter F, Chapter 11,] may use other [adopt a
  list of] reading instruments, subject to Subsection (b-4), [for use
  in the district in a grade level other than kindergarten] in
  addition to the reading instruments included on the commissioner's
  list.  Each reading instrument included on the list adopted by the
  commissioner or administered by a school district or
  open-enrollment charter school [or a district-level committee]
  must:
               (1)  be based on scientific research concerning reading
  skills development and reading comprehension;
               (2)  [.  A list of reading instruments adopted under
  this subsection must] provide for diagnosing the reading
  development and comprehension of students participating in a
  program under Subchapter B, Chapter 29;
               (3)  provide progress monitoring capabilities;
               (4)  provide a diagnostic tool to assist teachers in
  developing research-based targeted instruction;
               (5)  allow screening of students three times each
  school year;
               (6)  assess only foundational literacy components not
  already mastered by the student; and
               (7)  assess whether a student needs reading instruction
  intervention.
         (b-2)  The commissioner shall include on the commissioner's
  list any reading instrument that is:
               (1)  based on scientific research concerning reading
  skills development and reading comprehension; and
               (2)  submitted for inclusion on the list under
  Subsection (b-4).
         (b-3)  The commissioner shall update the list of reading
  instruments at least once every four years, including
  multidimensional assessment tools authorized under this section.
         (b-4)  A school district or open-enrollment charter school
  that uses one or more reading instruments not included on the
  commissioner's list in accordance with Subsection (b) must submit
  the instrument to the commissioner to verify the instrument
  satisfies the requirements of this section. The commissioner shall
  place on the commissioner's list a reading instrument that
  satisfies the requirements of this section.
         (c)  Each school district and open-enrollment charter school
  shall administer, at the first and second grade levels, a reading
  instrument that is based on scientific research concerning reading
  skills development and reading comprehension included on the list
  adopted by the commissioner [or by the district-level
  committee].  The district or school shall administer the reading
  instrument in accordance with the commissioner's recommendations
  under Subsection (a)(1).
         (c-1)  Each school district and open-enrollment charter
  school shall administer at the beginning of the seventh grade a
  reading instrument included on the list adopted by the commissioner
  to each student whose performance on the assessment instrument in
  reading administered under Section 39.023(a) to the student in
  grade six did not demonstrate reading proficiency, as determined by
  the commissioner.  The district or school shall administer the
  reading instrument in accordance with the commissioner's policies
  adopted [recommendations] under Subsection (a)(1).
         (c-2)  Each school district and open-enrollment charter
  school shall administer at the kindergarten level a reading
  instrument included on the list adopted by the commissioner [under
  Subsection (b) or approved by the commissioner under Subsection
  (b-1)].  The district or school shall administer the reading
  instrument in accordance with the commissioner's policies adopted
  [recommendations] under Subsection (a)(1).
         (c-3)  The commissioner by rule shall determine the
  performance on a [the] reading instrument adopted under Subsection
  (b) that indicates kindergarten readiness.
         (d-1)  The commissioner shall prominently display on the
  agency's Internet website information regarding the commissioner's
  list of reading instruments maintained under this section and the
  process for applying for inclusion on the list, as provided by
  agency rule adopted under Subsection (n).
         (g-3)  A school district or open-enrollment charter school
  shall provide reading intervention to each student in kindergarten
  through grade three who is determined to need reading intervention
  using an assessment administered in accordance with Subsection (b).  
  The school district shall continue to offer a student reading
  intervention until the student achieves satisfactory performance
  on a reading instrument.  A reading intervention program offered
  under this subsection must:
               (1)  include targeted instruction to improve the
  student's reading skills in the relevant areas identified through
  the assessment instrument;
               (2)  monitor the progress of the student's reading
  skills throughout the school year;
               (3)  be implemented during regular school hours and in
  addition to core instruction;
               (4)  use high-quality instructional materials,
  curricula, and curricular tools that are research based and
  effective for early childhood literacy intervention; and
               (5)  be provided by a teacher who has attended a
  literacy achievement academy provided under Section 21.4552.
         (g-4)  In providing reading intervention under Subsection
  (g-3), a school district or open-enrollment charter school may not
  remove a student, except under circumstances for which a student
  enrolled in the same grade level who is not receiving reading
  intervention would be removed, from:
               (1)  instruction in the foundation curriculum and
  enrichment curriculum adopted under Section 28.002 for the grade
  level in which the student is enrolled; or
               (2)  recess or other physical activity that is
  available to other students enrolled in the same grade level.
         (g-5)  In addition to the report required under Subsection
  (d)(2), a school district or open-enrollment charter school shall
  notify the parent or guardian of each student in kindergarten
  through grade three who is determined to need reading intervention.  
  The notification must:
               (1)  be distributed not later than the 30th day after
  the date the result of the reading instrument indicating that the
  student needs intervention is available;
               (2)  describe the current reading services the district
  or school provides to the student;
               (3)  describe the reading interventions that will be
  provided to the student to ensure the student will meet or exceed
  grade-level reading standards; and
               (4)  include high-quality resources for the parent or
  guardian of the student to use at home to help the student succeed
  at reading.
         (g-6)  From funds appropriated for teacher literacy
  achievement academies developed under Section 21.4552, the
  commissioner may, in collaboration with regional education service
  centers, provide assistance to school districts and
  open-enrollment charter schools in complying with the requirements
  of Section 28.0062. The commissioner shall prioritize providing
  assistance under this subsection in school districts with the
  highest rate of students performing below satisfactory levels on
  reading instruments administered under Subsection (b).
         (j)  [No more than 15 percent of the funds certified by the
  commissioner under Subsection (i) may be spent on indirect costs.]  
  The commissioner shall evaluate the programs that fail to meet the
  standard of performance under Section 39.301(c)(5) and may
  implement interventions or sanctions under Chapter 39A.  [The
  commissioner may audit the expenditures of funds appropriated for
  purposes of this section.  The use of the funds appropriated for
  purposes of this section shall be verified as part of the district
  audit under Section 44.008.]
         (n)  The agency by rule shall provide a process under which a
  school district or open-enrollment charter school may submit an
  application for inclusion of a reading instrument on the
  commissioner's list of reading instruments maintained under this
  section.
         (o)  The agency may not use data collected from a reading
  instrument administered under this section in evaluating the
  performance of a school district or campus under Section 39.054.
         SECTION 6.05.  Subchapter A, Chapter 28, Education Code, is
  amended by adding Section 28.0063 to read as follows:
         Sec. 28.0063.  SUPPLEMENTAL READING INSTRUCTION FOR CERTAIN
  STUDENTS. (a) A school district or open-enrollment charter school
  shall make available supplemental instruction described by Section
  28.0211(a-4) to address a student's reading deficiency if the
  student's results on both of the reading assessments administered
  under Section 28.006 in two consecutive school years indicat