By: Buckley, Bernal, Guillen, et al.	H.B. No. 2

	A BILL TO BE ENTITLED
	AN ACT
	relating to public education and public school finance.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. CHANGES RELATED TO PUBLIC EDUCATION AND PUBLIC SCHOOL
	FINANCE
	SECTION 1.01.  Section 12.1058(d), Education Code, is
	amended to read as follows:
	(d)  A political subdivision shall consider an
	open-enrollment charter school a school district for purposes of
	zoning, project permitting, platting and replatting processes,
	business licensing, franchises, utility services, signage,
	subdivision regulation, property development projects, the
	requirements for posting bonds or securities, contract
	requirements, land development standards as provided by Section
	212.902, Local Government Code, tree and vegetation regulations,
	regulations of architectural features of a structure, construction
	of fences, landscaping, garbage disposal, noise levels, fees or
	other assessments, and construction or site development work [if
	the charter school provides to the political subdivision the
	certification described by Subsection (e)].
	SECTION 1.02.  Section 12.106, Education Code, is amended by
	amending Subsections (a), (a-2), (d), (e), and (f) and adding
	Subsections (d-1), (d-2), (d-3), (e-1), and (e-2) to read as
	follows:
	(a)  A charter holder is entitled to receive for the
	open-enrollment charter school funding under Chapter 48 equal to
	the amount of funding per student in weighted average daily
	attendance to which the charter holder would be entitled for the
	school under that chapter if the school were a school district
	without a tier one local share for purposes of Section 48.266,
	excluding:
	(1)  the adjustment under Section 48.052;
	(2)  [,] the funding under Sections 48.101 and [,
	48.110,] 48.111; [, and 48.112,] and
	(3)  enrichment funding under Section 48.202(a) [, to
	which the charter holder would be entitled for the school under
	Chapter 48 if the school were a school district without a tier one
	local share for purposes of Section 48.266].
	(a-2)  In addition to the funding provided by Subsection (a),
	a charter holder is entitled to receive for the open-enrollment
	charter school an allotment per student in average daily attendance
	in an amount equal to the difference between:
	(1)  the product of:
	(A)  the quotient of:
	(i)  the total amount of funding provided to
	eligible school districts under Section 48.101(b) or (c); and
	(ii)  the total number of students in
	average daily attendance in school districts that receive an
	allotment under Section 48.101(b) or (c); and
	(B)  the sum of one and the quotient of:
	(i)  the total number of students in average
	daily attendance in school districts that receive an allotment
	under Section 48.101(b) or (c); and
	(ii)  the total number of students in
	average daily attendance in school districts statewide; and
	(2)  $700 [$125].
	(d)  Subject to Subsections [Subsection] (e) and (e-1), in
	addition to other amounts provided by this section, a charter
	holder is entitled to receive, for the open-enrollment charter
	school, an annual allotment [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 multiplied by
	the guaranteed level of state and local funds per student per cent
	of tax effort under Section 46.032(a); or
	(2)  the maximum amount of the basic allotment provided
	under Section 48.051 for the applicable school year multiplied by
	0.07 [a rate that would result in a total amount to which charter
	schools are entitled under this subsection for the current year
	equal to $60 million].
	(d-1)  Notwithstanding Subsection (d), the total amount that
	may be used to provide allotments under Subsection (d) may not
	exceed:
	(1)  for the 2025-2026 school year, $100 million; and
	(2)  for the 2026-2027 school year, $160 million.
	(d-2)  If the total amount of allotments to which charter
	holders are entitled for open-enrollment charter schools under
	Subsection (d) for a school year exceeds the amount permitted under
	Subsection (d-1), the commissioner shall proportionately reduce
	the amount of each charter holder's allotment until the total
	amount for the allotments is equal to the amount permitted under
	that subsection.
	(d-3)  Subsections (d-1) and (d-2) and this subsection
	expire September 1, 2027.
	(e)  Subject to Subsection (e-1), a [A] charter holder is not
	entitled to receive funding under Subsection (d) for an
	open-enrollment charter school [only] if the school has been
	assigned:
	(1)  an unacceptable [most recent overall] performance
	rating [assigned to the open-enrollment charter school] under
	Subchapter C, Chapter 39, for the two preceding school years;
	(2)  a financial accountability performance rating
	under Subchapter D, Chapter 39, indicating a financial performance
	lower than satisfactory for the two preceding school years; or
	(3)  any combination of the ratings described by
	Subdivisions (1) and (2) for the two preceding school years
	[reflects at least acceptable performance].
	(e-1)  Subsection (e) [This subsection] does not apply to a
	charter holder:
	(1)  during the first two years of the applicable
	open-enrollment charter school's operation; or
	(2)  that operates a school program located at a day
	treatment facility, residential treatment facility, psychiatric
	hospital, or medical hospital.
	(e-2)  A charter holder is entitled to receive funding under
	Subsection (d) for an open-enrollment charter school only if the
	governing body of the school annually certifies in writing to the
	agency that no administrator, officer, or employee of the school
	and no member of the governing body of the school or its charter
	holder derives any personal financial benefit from a real estate
	transaction with the school.
	(f)  Funds received by a charter holder under Subsection (d):
	(1)  notwithstanding any other law, may not be used to
	pay a salary, bonus, stipend, or any other form of compensation to a
	school superintendent or administrator serving as educational
	leader and chief executive officer of the school; and
	(2)  may only be used:
	(A) [(1)]  to lease an instructional facility;
	(B) [(2)]  to pay property taxes imposed on an
	instructional facility;
	(C) [(3)]  to pay debt service on bonds issued for
	a purpose for which a school district is authorized to issue bonds
	under Section 45.001(a)(1) or to pay for a purchase for which a
	school district is authorized to issue bonds under that section [to
	finance an instructional facility]; or
	(D) [(4)]  for any other purpose related to the
	purchase, lease, sale, acquisition, or maintenance of an
	instructional facility.
	SECTION 1.03.  Section 12.156(a), Education Code, is amended
	to read as follows:
	(a)  Except as otherwise provided by this subchapter,
	Subchapter D, including Section 12.106(d), applies to a college or
	university charter school or junior college charter school as
	though the college or university charter school or junior college
	charter school, as applicable, were granted a charter under that
	subchapter.
	SECTION 1.04.  Section 12.263, Education Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1)  An eligible entity granted a charter under this
	subchapter is not entitled to receive an allotment under Section
	12.106(d) for the adult education program if the program has been
	assigned under the applicable accountability framework adopted
	under Section 12.262:
	(1)  an overall performance rating that reflects
	unacceptable performance for the two preceding school years;
	(2)  a financial accountability performance rating
	that indicates a financial performance lower than satisfactory for
	the two preceding school years; or
	(3)  any combination of the ratings described by
	Subdivisions (1) and (2) for the two preceding school years.
	SECTION 1.05.  Section 21.3521, Education Code, is amended
	by amending Subsections (a), (c), and (e) and adding Subsections
	(d-1), (d-2), and (d-3) 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].
	(d-1)  Each school year, the commissioner shall, using
	criteria developed by the commissioner, designate as enhanced
	teacher incentive allotment public schools school districts and
	open-enrollment charter schools that implement comprehensive
	school evaluation and support systems.  The criteria developed by
	the commissioner must require a district or school to:
	(1)  for principals and assistant principals,
	implement:
	(A)  a strategic evaluations system aligned with
	the district's or school's teacher designation system; and
	(B)  a compensation system based on performance;
	(2)  ensure that under the school district's or
	open-enrollment charter school's teacher designation system
	substantially all classroom teachers, regardless of the grade level
	or subject area to which the teacher is assigned, are eligible to
	earn a designation under Subsection (a);
	(3)  implement for all classroom teachers a
	compensation plan based on performance that:
	(A)  uses a salary schedule that is based on
	differentiation among classroom teacher appraisals as permitted
	under this section; and
	(B)  does not include across-the-board salary
	increases for classroom teachers except for periodic changes to the
	district's or school's salary schedule to adjust for significant
	inflation; and
	(4)  implement a locally designed plan to place highly
	effective teachers at high needs campuses and in accordance with
	Section 28.0062(a)(3).
	(d-2)  The commissioner may remove a school district's or
	open-enrollment charter school's designation under Subsection
	(d-1) if the commissioner determines the district or school no
	longer meets the criteria for the designation.
	(d-3)  Not later than September 1 of each year, the
	commissioner shall post on the agency's Internet website a list of
	the school districts and open-enrollment charter schools
	designated as enhanced teacher incentive allotment public schools
	under Subsection (d-1).
	(e)  The agency shall use contracted services to develop and
	provide technical assistance for school districts and
	open-enrollment charter schools that request assistance in:
	(1)  earning a designation under Subsection (d-1); or
	(2)  implementing a local optional teacher designation
	system, including:
	(A)  providing assistance in prioritizing high
	needs campuses;
	(B)  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;
	(C)  establishing partnerships between districts
	and schools that request assistance and districts and schools that
	have implemented a teacher designation system;
	(D)  applying the performance and validity
	standards established by the commissioner under Subsection (b);
	(E)  providing centralized support for the
	analysis of the results of assessment instruments administered to
	district or school students; and
	(F)  facilitating effective communication on and
	promotion of local optional teacher designation systems.
	SECTION 1.06.  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 money 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 and support ongoing implementation of local
	optional teacher designation systems under Section 21.3521;
	(2)  increase the number of classroom teachers eligible
	for a designation under that section; and
	(3)  increase the salaries paid to classroom teachers
	employed by school districts or open-enrollment charter schools
	that have established or are seeking to establish a designation
	system under that section.
	(b)  A grant awarded under this section must:
	(1)  meet the needs of individual school districts or
	open-enrollment charter schools; and
	(2)  enable regional leadership capacity.
	(c)  The commissioner may adopt rules as necessary to
	implement this section.
	SECTION 1.07.  Subchapter C, Chapter 25, Education Code, is
	amended by adding Section 25.0816 to read as follows:
	Sec. 25.0816.  ADDITIONAL DAYS SCHOOL YEAR PLANNING GRANT
	PROGRAM. (a) From money appropriated or otherwise available for
	the purpose, the agency shall establish and administer a grant
	program to provide funding and technical assistance to school
	districts and open-enrollment charter schools to plan the school
	year and adjust operations as necessary to qualify for the
	incentive funding under Section 48.0051.
	(b)  In awarding grants under the program, the agency shall
	prioritize school districts and open-enrollment charter schools
	that seek to maximize incentive funding under Section 48.0051.
	(c)  The agency may solicit and accept gifts, grants, and
	donations for purposes of this section.
	SECTION 1.08.  Section 28.0211(a-1), Education Code, is
	amended to read as follows:
	(a-1)  Each time a student fails to perform satisfactorily on
	an assessment instrument administered under Section 39.023(a) or
	(l) in the third, fourth, fifth, sixth, seventh, or eighth grade or
	an end-of-course assessment instrument administered under Section
	39.023(c), other than an assessment instrument developed or adopted
	based on alternative academic achievement standards, the school
	district in which the student attends school shall provide to the
	student accelerated instruction in the applicable subject area
	during the subsequent summer or school year and, subject to
	Subsections (a-7) and (a-8), either:
	(1)  allow the student to be assigned a classroom
	teacher who has earned a designation [is certified as a master,
	exemplary, or recognized teacher] under Section 21.3521 for the
	subsequent school year in the applicable subject area; or
	(2)  provide the student supplemental instruction
	under Subsection (a-4).
	SECTION 1.09.  Section 29.153, Education Code, is amended by
	adding Subsections (b-1) and (h) to read as follows:
	(b-1)  Notwithstanding Subsection (b), any child who is at
	least three years of age is eligible for enrollment in a
	prekindergarten class under this section if:
	(1)  the class is provided through a partnership
	between a school district or open-enrollment charter school and a
	community-based child-care provider described by Subsection (g);
	and
	(2)  the child receives subsidized child-care services
	provided through the child-care services program administered by
	the Texas Workforce Commission.
	(h)  Notwithstanding any other law, a facility or location at
	which prekindergarten classes are provided by a school district or
	open-enrollment charter school in partnership with a private entity
	under this section:
	(1)  must comply with any municipal ordinance
	applicable to the operation of a private prekindergarten program;
	and
	(2)  may not be required to comply with any municipal
	ordinance applicable to the operation of a prekindergarten program
	by a school district or open-enrollment charter school.
	SECTION 1.10.  Section 29.934, Education Code, is amended by
	amending Subsections (b) and (d) and adding Subsection (d-1) to
	read as follows:
	(b)  To apply to be designated as a resource campus under
	this section, the campus must have received an overall performance
	rating under Section 39.054 of D or F, or an overall performance
	rating under Section 39.054(a-4)(1) or 39.0546 of "Not Rated," for
	three [four] years over a 10-year period of time.
	(d)  To be designated as a resource campus, the campus must:
	(1)  implement a targeted improvement plan as described
	by Chapter 39A and establish a school community partnership team;
	(2)  adopt an accelerated campus excellence turnaround
	plan as provided by Section 39A.105(b) [except that a classroom
	teacher who satisfies the requirements for demonstrated
	instructional effectiveness under Section 39A.105(b)(3) must also
	hold a current designation assigned under Section 21.3521];
	(3)  be in a school district that has adopted an
	approved local optional teacher designation system under Section
	21.3521;
	(4)  satisfy certain staff criteria by:
	(A)  requiring a principal or teacher employed at
	the campus before the designation to apply for a position to
	continue at the campus;
	(B)  for a subject in the foundation curriculum
	under Section 28.002(a)(1):
	(i)  employing only teachers who have at
	least two [three] years of teaching experience; and
	(ii)  ensuring that at least 50 percent of
	teachers hold a current designation assigned under Section 21.3521;
	(C)  employing at least one school counselor for
	every 300 students; and
	(D)  employing at least one appropriately
	licensed professional to assist with the social and emotional needs
	of students and staff, who must be a:
	(i)  family and community liaison;
	(ii)  clinical social worker;
	(iii)  specialist in school psychology; or
	(iv)  professional counselor;
	(5)  implement a positive behavior program as provided
	by Section 37.0013;
	(6)  implement a family engagement plan as described by
	Section 29.168;
	(7)  develop and implement a plan to use high quality
	instructional materials;
	(8)  if the campus is an elementary or middle school
	campus, operate the campus for a school year that qualifies for
	funding under Section 48.0051; and
	(9)  annually submit to the commissioner data and
	information required by the commissioner to assess fidelity of
	implementation.
	(d-1)  The commissioner may grant to a campus requesting to
	be designated as a resource campus under this section a one-year
	waiver from the requirement under Subsection (d)(4)(B)(ii) if the
	campus provides substantial evidence that the campus is working
	toward meeting the requirement.
	SECTION 1.11.  Effective September 1, 2028, Section 29.934,
	Education Code, is amended by amending Subsection (b) and adding
	Subsection (b-1) to read as follows:
	(b)  To apply to be designated as a resource campus under
	this section, the campus must have received an overall performance
	rating under Section 39.054 of D or F, or an overall performance
	rating under Section 39.054(a-4)(1) of "Not Rated," for three
	[four] years over a 10-year period of time.
	(b-1)  Notwithstanding Subsection (b), a campus may apply to
	be designated as a resource campus under this section if the campus
	received an overall performance rating under Section 39.054 of D or
	F, or an overall performance rating under Section 39.054(a-4)(1) or
	former Section 39.0546 of "Not Rated," for three years over a
	10-year period of time.  This subsection expires September 1, 2033.
	SECTION 1.12.  Subchapter Z, Chapter 29, Education Code, is
	amended by adding Sections 29.940 and 29.941 to read as follows:
	Sec. 29.940.  FEDERAL GRANT ADMINISTRATION. For a federal
	grant program under which the agency oversees and administers
	services to nonpublic schools, the agency shall follow federal
	disposition rules and procedures to dispose of equipment or
	supplies that are unused or no longer needed and were previously
	allocated to nonpublic schools participating in the grant program.
	Sec. 29.941.  GRANT PROGRAM TO PROMOTE PARENTAL ENGAGEMENT.
	(a) From money appropriated or otherwise available for the
	purpose, the commissioner shall establish a grant program to
	provide grants to school districts and open-enrollment charter
	schools to assist with costs associated with operating programs or
	projects to encourage parental engagement in the educational
	success of students in the district or school, including:
	(1)  educational programming for parents on how to
	teach the parent's child how to read, including how to read with the
	parent's child outside of school in a manner that complements
	instruction;
	(2)  for a parent of a child identified as academically
	behind, educational programming on identifying and addressing the
	child's academic struggles;
	(3)  for a parent of a child enrolled in a special
	education program under Subchapter A, educational programming on
	how to prepare the child for educational success; and
	(4)  for a parent of a child who exhibits behavioral
	issues or has been subject to disciplinary measures, programs or
	policies to engage the parent in efforts to discipline and improve
	the behavior of the child.
	(b)  A school district or open-enrollment charter school may
	use money awarded under Subsection (a) to:
	(1)  pay staff working additional hours to operate a
	program or project described by Subsection (a);
	(2)  pay for food offered at training meetings for a
	program or project described by Subsection (a); and
	(3)  pay for educational materials provided to parents
	related to a program or project described by Subsection (a).
	(c)  The commissioner may adopt rules as necessary to
	implement this section.
	SECTION 1.13.  Section 38.312, Education Code, is amended to
	read as follows:
	Sec. 38.312.  EXPIRATION.  The task force is abolished and
	this subchapter expires December 1, 2031 [2025].
	SECTION 1.14.  Section 39.082(c), Education Code, is amended
	to read as follows:
	(c)  The system may not include an indicator under Subsection
	(b) or any other performance measure that:
	(1)  requires a school district to spend at least 65
	percent or any other specified percentage of district operating
	funds for instructional purposes; [or]
	(2)  lowers the financial management performance
	rating of a school district for failure to spend at least 65 percent
	or any other specified percentage of district operating funds for
	instructional purposes; or
	(3)  for a school district required to reduce its local
	revenue level under Section 48.257, includes in determining the
	district's ratio of assets to liabilities any amount required to be
	expended by the district to comply with Chapter 49.
	SECTION 1.15.  Section 46.071, Education Code, is amended by
	adding Subsections (d-1) and (d-2) to read as follows:
	(d-1)  If the amount required to pay debt service on bonds
	issued under Subchapter A, Chapter 45, is less than the sum of state
	assistance provided under this chapter, including the amount of
	additional state aid provided under this section, and the revenue
	from the district's interest and sinking tax for a school year, the
	commissioner shall, except as provided by Subsection (d-2), reduce
	the amount of additional state aid provided under this section by
	the difference between:
	(1)  the sum of state assistance provided under this
	chapter, including the amount of additional state aid provided
	under this section, and the revenue from the district's interest
	and sinking tax for the school year; and
	(2)  the amount required to pay debt service on bonds
	described by this subsection for the school year.
	(d-2)  The amount of additional state aid provided under this
	section may not be reduced under Subsection (d-1) to an amount below
	zero.
	SECTION 1.16.  Section 48.005, Education Code, is amended by
	amending Subsections (a) and (e) and adding Subsection (a-1) to
	read as follows:
	(a)  In this chapter, average daily attendance is:
	(1)  the quotient of the sum of attendance for each day
	of the minimum number of days of instruction as described under
	Section 25.081(a) divided by the minimum number of days of
	instruction;
	(2)  for a district that operates under a flexible year
	program under Section 29.0821, the quotient of the sum of
	attendance for each actual day of instruction as permitted by
	Section 29.0821(b)(1) divided by the number of actual days of
	instruction as permitted by Section 29.0821(b)(1);
	(3)  for a district that operates under a flexible
	school day program under Section 29.0822, the average daily
	attendance as calculated by the commissioner in accordance with
	Sections 29.0822(d) and (d-1); or
	(4)  except as provided by Subsection (a-1), for a
	district that operates a half-day program or a full-day program
	under Section 29.153(c), one-half of the average daily attendance
	calculated under Subdivision (1).
	(a-1)  Average daily attendance is calculated under
	Subsection (a)(1) for students:
	(1)  enrolled in a half-day program or full-day program
	under Section 29.153(c) provided by an eligible private provider
	under Section 29.171; and
	(2)  assigned to a campus:
	(A)  that is operated under a contract entered
	into by the district with an entity under Section 11.174 or an
	eligible private provider under Section 29.171; or
	(B)  of an open-enrollment charter school that is
	operated by an entity governed by a management contract approved by
	the agency.
	(e)  For each school year, the commissioner shall adjust the
	average daily attendance of school districts that are entitled to
	funding on the basis of an adjusted average daily attendance under
	Subsection (b)(2) so that:
	(1)  all districts are funded on the basis of the same
	percentage of the preceding year's actual average daily attendance;
	and
	(2)  the total cost to the state does not exceed $300
	million, or a greater amount provided by appropriation [the amount
	specifically appropriated for that year for purposes of Subsection
	(b)(2)].
	SECTION 1.17.  Section 48.0051, Education Code, is amended
	by amending Subsections (a), (b), and (d) and adding Subsection
	(b-1) 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
	eighth [fifth] grade.
	(b)  Subject to Subsection (b-1), for [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].
	(b-1)  For a school district or open-enrollment charter
	school described by Subsection (a) that provides at least 200 full
	days of instruction to students described by Subsection (a)(2), the
	commissioner shall increase the amount computed for the district or
	school under Subsection (b) by 50 percent.
	(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 1.18.  Subchapter A, Chapter 48, Education Code, is
	amended by adding Section 48.014 to read as follows:
	Sec. 48.014.  NOTICE FOR SCHOOL DISTRICTS REGARDING RECOURSE
	FOR INVALID PROPERTY VALUES. (a)  This section applies only to a
	school district located in an appraisal district in which the
	comptroller has certified the preliminary findings of the school
	district property value study under Section 403.302(g), Government
	Code, and determined that a school district located in the
	appraisal district has an invalid local value, regardless of
	whether the district meets the definition of an eligible school
	district under Section 403.3011, Government Code.
	(b)  For each school district to which this section applies
	and as soon as practicable after the comptroller has certified the
	preliminary findings of the school district property value study
	under Section 403.302(g), Government Code, the commissioner shall
	provide notice to the board of trustees of the district that
	includes information regarding the impact or possible impact of a
	final certification of an invalid local value on the district's
	finances, including:
	(1)  an estimate of the effect on the district's
	finances; and
	(2)  any right of recourse available to the district.
	(c)  Each school district shall annually report to the agency
	contact information for the members of the district's board of
	trustees for purposes of receiving the notice under this section.
	(d)  The commissioner shall coordinate with the comptroller
	to provide copies of the notice under this section to the board of
	directors of each applicable appraisal district.
	SECTION 1.19.  Section 48.051, Education Code, is amended by
	amending Subsections (a), (c), and (c-1) 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 career and technology
	education programs or 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
	school district is entitled to an allotment equal to the lesser of
	the amounts that result from the following formulas:
	(1)  A = $6,500 + GYIA; [$6,160] or [the amount that
	results from the following formula:]
	(2)  A = ($6,500 + GYIA) [$6,160] X TR/MCR
	where:
	"A" is the allotment to which a district is entitled;
	"GYIA" is the guaranteed yield increment adjustment
	determined under Section 48.2561;
	"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 maximum amount of
	the basic allotment provided under Subsection (a) or (b) is greater
	than the maximum amount provided for the preceding school year, a
	school district must use at least 40 [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 for the current school year
	and the preceding school year to provide compensation increases to
	full-time district employees other than administrators as follows:
	(1)  75 percent must be used to increase the salary
	[compensation] paid to classroom teachers, full-time librarians,
	full-time school counselors certified under Subchapter B, Chapter
	21, and full-time school nurses, prioritizing higher salary
	increases [differentiated compensation] for classroom teachers in
	the following order:
	(A)  classroom teachers with 10 or more years of
	experience; and
	(B)  classroom teachers with [more than] five or
	more years of experience; and
	(2)  25 percent may be used as determined by the
	district to increase compensation paid to full-time district
	employees.
	(c-1)  A school district employee who received a salary
	increase under Subsection (c) [from a school district for the
	2019-2020 school year] is, as long as the employee remains employed
	by the same district and the district is receiving at least the same
	amount of funding as the amount of funding the district received for
	the [2019-2020] school year in which the requirement under
	Subsection (c) applied, entitled to salary that is at least equal to
	the salary the employee received for the preceding [2019-2020]
	school year.  This subsection does not apply if:
	(1)  the board of trustees of the school district at
	which the employee is employed:
	(A) [(1)]  complies with Sections 21.4021,
	21.4022, and 21.4032 in reducing the employee's salary; and
	(B) [(2)]  has adopted a resolution declaring a
	financial exigency for the district under Section 44.011; or
	(2)  the school district evaluates the employee's
	performance and the employee's performance rating is lower than the
	employee's performance rating during the school year in which the
	requirement under Subsection (c) applied.
	(c-3)  A school district must ensure that the salary
	increases provided under Subsection (c)(1) provide for:
	(1)  a difference of at least 40 percent between the
	average salary schedule increase provided to a classroom teacher
	described by Subsection (c)(1)(A) and a classroom teacher described
	by Subsection (c)(1)(B); or
	(2)  an increase based on performance in accordance
	with the district's compensation plan implemented under Section
	21.3521(d-1)(3).
	(c-4)  Notwithstanding Subsection (c-3), a school district
	is not required to provide a salary increase to an employee under
	Subsection (c) in an amount that exceeds $15,000 per year. A
	district may spend excess money available as a result of this
	subsection for any purpose for which money provided under this
	section may be spent.
	(c-5)  A school district that increases employee
	compensation in the 2025-2026 school year to comply with Subsection
	(c), as amended by H.B. 2, Acts of the 89th Legislature, Regular
	Session, 2025, 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 (c) in the 2025-2026 school year may
	satisfy the requirements of this section by providing an employee a
	one-time bonus payment during the 2026-2027 school year in an
	amount equal to the difference between the compensation earned by
	the employee during the 2025-2026 school year and the compensation
	the employee should have received during that school year if the
	district had complied with Subsection (c).
	(c-6)  In calculating the difference between a school
	district's funding under this chapter per student in average daily
	attendance for the current school year and the preceding school
	year for purposes of Subsection (c), the agency may not include the
	amounts to which the district is entitled under Section 48.115 or
	48.284.
	SECTION 1.20.  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 .00057 [.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 .00003 [.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 .0006 [.00047]) X BA
	SECTION 1.21.  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 1.22.  Subchapter C, Chapter 48, Education Code, is
	amended by adding Section 48.1042 to read as follows:
	Sec. 48.1042.  DISTRIBUTION OF CERTAIN COMPENSATORY
	EDUCATION ALLOTMENT AND EARLY EDUCATION ALLOTMENT MONEY. (a)  This
	section applies only to money to which a school district is entitled
	under:
	(1)  Section 48.104; or
	(2)  Section 48.108 for students in prekindergarten.
	(b)  Notwithstanding any other provision of this chapter,
	instead of providing money to which this section applies to school
	districts in accordance with Sections 48.104 and 48.108, the
	commissioner shall distribute that money as follows:
	(1)  provide to each school district that operates a
	full-day program under Section 29.153(c), funding under this
	chapter based on one-half of the average daily attendance
	calculated under Section 48.005 for each student in that program;
	and
	(2)  if any amount remains after distributing money
	under Subdivision (1), provide to each school district an amount
	that is proportional to the district's entitlement under Section
	48.104.
	SECTION 1.23.  Sections 48.105(a) and (b), Education Code,
	are amended to read as follows:
	(a)  For each student in average daily attendance in a
	bilingual education or special language program under Subchapter B,
	Chapter 29, a district is entitled to an annual allotment equal to
	the basic allotment multiplied by:
	(1)  for an emergent bilingual student, as defined by
	Section 29.052:
	(A)  0.12 [0.1]; or
	(B)  0.17 [0.15] if the student is in a bilingual
	education program using a dual language immersion/one-way or
	two-way program model; and
	(2)  for a student not described by Subdivision (1),
	0.07 [0.05] if the student is in a bilingual education program using
	a dual language immersion/two-way program model.
	(b)  At least 55 percent of the funds allocated under this
	section must be used in providing bilingual education or special
	language programs under Subchapter B, Chapter 29. A district's
	bilingual education or special language allocation may be used only
	for program and student evaluation, instructional materials and
	equipment, staff development, supplemental staff expenses,
	salaries [salary supplements] for teachers, incremental costs
	associated with providing smaller class sizes, and other supplies
	required for quality instruction.
	SECTION 1.24.  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 1.25.  Section 48.112, Education Code, is amended by
	amending Subsections (c), (d), and (i) and adding Subsection (g-1)
	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)  nationally board certified teacher.
	(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)  nationally board certified teacher.
	(g-1)  For a district that is designated as an enhanced
	teacher incentive allotment public school under Section
	21.3521(d-1), the commissioner shall increase the amount to which
	the district is entitled under this section by multiplying that
	amount by 1.1.
	(i)  A district shall annually certify that:
	(1)  funds received under this section were used as
	follows:
	(A)  at least 90 percent of each allotment
	received under Subsection (c) was used for the compensation of
	teachers employed at the campus at which the teacher for whom the
	district received the allotment is employed; [and]
	(B)  for a district whose allotment was increased
	under Subsection (g-1), the amount by which the allotment was
	increased under that subsection was used to meet the criteria to
	maintain a designation as an enhanced teacher incentive allotment
	public school under Section 21.3521(d-1); and
	(C)  any other funds received under this section
	were used for costs associated with implementing Section 21.3521,
	including efforts to support teachers in obtaining designations;
	and
	(2)  the district prioritized high needs campuses in
	the district in using funds received under this section.
	SECTION 1.26.  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 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 under Section
	48.051 exceeds $6,555 [$6,160], prorated as necessary; and
	(2)  $15,000 per campus.
	SECTION 1.27.  Subchapter C, Chapter 48, Education Code, is
	amended by adding Section 48.116 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 0.008; 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
	education courses approved under Subsection (b).
	(d)  The total amount of allotments provided under this
	section for a school year may not exceed $15 million.
	(e)  The agency may proportionally reduce each school
	district's allotment under this section if the amount appropriated
	for purposes of this section is insufficient to pay for all
	allotments to which districts are entitled under this section.
	SECTION 1.28.  Section 48.202, Education Code, is amended by
	amending Subsection (a-1) and adding Subsection (e-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 $129.52 or an amount set by
	appropriation [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 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).
	(e-2)  For purposes of this section, the total amount of
	maintenance and operations taxes collected by a school district not
	required to reduce its local revenue level under Section 48.257
	includes the amount of tax revenue received from a county-wide
	equalization tax.
	SECTION 1.29.  Subchapter F, Chapter 48, Education Code, is
	amended by adding Section 48.2561 to read as follows:
	Sec. 48.2561.  GUARANTEED YIELD INCREMENT ADJUSTMENT. (a)
	Not later than October 1 of each even-numbered year, for the
	subsequent state fiscal biennium, the agency shall determine the
	amount of the guaranteed yield increment adjustment for each state
	fiscal year of the biennium. The amount of the guaranteed yield
	increment adjustment is the difference between:
	(1)  the estimated cost to the state of maintaining the
	guaranteed level of state and local funds per weighted student per
	cent of tax effort under Section 48.202(a-1)(1) at the 96th
	percentile of wealth per weighted student for each year of the
	biennium; and
	(2)  the state cost of maintaining the guaranteed level
	of state and local funds per weighted student per cent of tax effort
	at the amount provided by Section 48.202(a-1)(1).
	(b)  Notwithstanding Subsection (a), the amount of the
	guaranteed yield increment adjustment for each state fiscal year of
	the state fiscal biennium beginning September 1, 2025, is $55.  This
	subsection expires September 1, 2027.
	SECTION 1.30.  Section 48.266, Education Code, is amended by
	amending Subsection (b) and adding Subsection (b-1) to read as
	follows:
	(b)  Except as provided by this subsection and subject to
	Subsection (b-1), the commissioner shall base the determinations
	under Subsection (a) on the estimates provided to the legislature
	under Section 48.269, or, if the General Appropriations Act
	provides estimates for that purpose, on the estimates provided
	under that Act, for each school district for each school year.  The
	commissioner shall reduce the entitlement of each district that has
	a final taxable value of property for the second year of a state
	fiscal biennium that is higher than the estimate under Section
	48.269 or the General Appropriations Act, as applicable.  A
	reduction under this subsection may not reduce the district's
	entitlement below the amount to which it is entitled at its actual
	taxable value of property.
	(b-1)  Periodically throughout the school year, the
	commissioner shall adjust the determinations made under Subsection
	(a) to reflect current school year estimates of a district's
	enrollment and average daily attendance, based on attendance
	reporting for each six-week interval.
	SECTION 1.31.  Section 48.283, Education Code, is amended to
	read as follows:
	Sec. 48.283.  ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
	IMPACTED BY COMPRESSION.  (a)  For the 2023-2024 and 2024-2025
	school years, a [A] school district that received an adjustment
	under Section 48.257(b) for the 2022-2023 school year is entitled
	to additional state aid [for each school year] in an amount equal to
	[the amount of that adjustment for the 2022-2023 school year less]
	the difference, if the difference is greater than zero, between:
	(1)  [the amount to which the district is entitled
	under this chapter for the current school year; and
	[(2)]  the amount of state and local revenue that would
	have been available to [which] the district [would be entitled]
	under this chapter and Chapter 49 for the 2023-2024 or 2024-2025
	[current] school year, as applicable, if the district's maximum
	compressed tax rate had not been reduced under Section 48.2555, as
	added by S.B. 2, Acts of the 88th Legislature, 2nd Called Session,
	2023; and
	(2)  the amount of state and local revenue available to
	the district under this chapter and Chapter 49 for the 2023-2024 or
	2024-2025 school year, as applicable.
	(b)  This section expires January 1, 2026.
	SECTION 1.32.  Subchapter F, Chapter 48, Education Code, is
	amended by adding Sections 48.2711, 48.2831, and 48.284 to read as
	follows:
	Sec. 48.2711.  ADJUSTMENT FOR LOSS OF REVENUE DUE TO USE OF
	STATE VALUE. (a) This section applies only to a school district:
	(1)  for which the state value for the district's
	taxable value of property is used under Section 403.302(c),
	Government Code; and
	(2)  in which the district's board of trustees adopts a
	resolution during the school year recognizing the need for an
	adjustment under this section.
	(b)  For each school district to which this section applies,
	the agency shall determine whether the district's entitlement under
	this chapter for a school year is greater if the district's taxable
	value of property is:
	(1)  the local value; or
	(2)  the state value as determined by the comptroller
	under Sections 403.302(a) and (b), Government Code.
	(c)  If the agency determines under Subsection (b) that the
	school district's entitlement is greater for the applicable school
	year using the local value for the district's taxable value of
	property, the commissioner shall increase state aid or adjust the
	limit on local revenue under Section 48.257 for the district for
	that school year in an amount equal to:
	(1)  for the first school year in which this subsection
	applies to the district, the difference between the amounts
	determined under Subsection (b);
	(2)  for the second consecutive school year in which
	this subsection applies to the district, 70 percent of the
	difference between the amounts determined under Subsection (b); and
	(3)  for the third consecutive school year in which
	this subsection applies to the district, 40 percent of the
	difference between the amounts determined under Subsection (b).
	(d)  A school district may not receive an adjustment under
	this section for more than three consecutive school years unless
	the legislature specifically appropriates money for the purpose of
	making adjustments under this section for the fourth or a
	subsequent consecutive school year.
	(e)  For purposes of determining the number of consecutive
	school years for which this section applies to a school district,
	the commissioner may not consider a school year before the
	2025-2026 school year.
	(f)  A school year in which the comptroller determines a
	school district's local value to be valid under Section 403.302(c),
	Government Code, that occurs after the district receives an
	adjustment under this section is not included in calculating
	consecutive school years under Subsection (c) or (d) and is not
	considered a break in consecutive school years, except as provided
	by Subsection (h).
	(g)  A school district may not receive an adjustment under
	this section for a school year in which the district is determined
	to be an eligible school district, as defined by Section 403.3011,
	Government Code. A school year in which the district is not
	eligible for an adjustment under this subsection is included in
	calculating consecutive school years under Subsections (c) and (d).
	(h)  Except as provided by Subsection (d), a school district
	that receives an adjustment under this section for three
	consecutive school years is not eligible to receive an adjustment
	under this section in the subsequent school year but may be again
	eligible for the adjustment following two consecutive school years
	for which the local value is used for the district's taxable value
	of property under Section 403.302(c), Government Code.
	(i)  The total amount of adjustments made under this section
	for a school year may not exceed $60 million.
	(j)  If the total amount of adjustments for which school
	districts are eligible under this section for a school year exceeds
	the limit under Subsection (i), the commissioner shall prioritize
	school districts experiencing the greatest percentage reduction in
	funding, as determined based on the difference between the amounts
	determined under Subsection (b).
	(k)  A determination made by the commissioner under this
	section is final and may not be appealed.
	Sec. 48.2831.  ADDITIONAL STATE AID TO ENSURE MINIMUM
	FUNDING LEVEL. (a) Beginning with the 2025-2026 school year, a
	school district is entitled to additional state aid in an amount
	necessary to ensure the district receives state and local revenue
	per student in weighted average daily attendance under this chapter
	and Chapter 49 in an amount at least equal to the sum of:
	(1)  state and local revenue per student in weighted
	average daily attendance that would have been available to the
	district for the 2025-2026 school year under this chapter and
	Chapter 49, as those chapters existed on September 1, 2024; and
	(2)  $200.
	(b)  The amount of additional state aid to which a district
	is entitled under this section shall be calculated only after all
	other funding to which the district is entitled under this chapter
	and Chapter 49 has been calculated.
	(c)  For purposes of calculating the amount of additional
	state aid to which a district is entitled under this section, the
	agency shall:
	(1)  for the 2025-2026 school year, use the same values
	for formula funding adjustments under this chapter and Chapter 49,
	as those chapters existed on September 1, 2024, that the agency used
	during that school year; and
	(2)  for a school year after the 2025-2026 school year,
	exclude any formula funding adjustments under this chapter and
	Chapter 49, as those chapters existed on September 1, 2024, that are
	expired or do not apply to the district for a school year following
	the 2025-2026 school year as provided by this chapter and Chapter
	49, as those chapters existed on September 1, 2024.
	(d)  The agency shall notify the Legislative Budget Board as
	soon as practicable after the agency determines that no school
	districts qualify for additional state aid under this section.
	Sec. 48.284.  ADDITIONAL STATE AID FOR REGIONAL INSURANCE
	COST DIFFERENTIALS. (a) In this section, "catastrophe area" and
	"first tier coastal county" have the meanings assigned by Section
	2210.003, Insurance Code.
	(b)  This section applies to a school district or
	open-enrollment charter school that has the following property
	located in a first tier coastal county or an area designated in 2024
	as a catastrophe area:
	(1)  the central administrative office of the district
	or school; and
	(2)  a majority of campuses of the district or school.
	(c)  A school district or open-enrollment charter school to
	which this section applies is entitled to additional state aid for
	each student in adjusted average daily attendance in an amount
	equal to the difference between, for the 2023-2024 school year, or a
	different school year specified by appropriation:
	(1)  the total amount paid for property and casualty
	insurance by districts and schools in the county or catastrophe
	area described by Subsection (b) in which the district's or school's
	property is located divided by the total number of students in
	average daily attendance for all districts and schools in the
	county or catastrophe area; and
	(2)  the total amount paid for property and casualty
	insurance by districts and schools in the state divided by the total
	number of students in average daily attendance in the state.
	(d)  For purposes of Subsection (c), the average daily
	attendance of a school district that qualifies for, or an
	open-enrollment charter school that if the school were a school
	district would qualify for, an allotment under Section 48.101 is
	the district's or school's average daily attendance multiplied by
	the sum of one and:
	(1)  for a school district, the district's annual
	allotment per student in average daily attendance under that
	section divided by the basic allotment; or
	(2)  for an open-enrollment charter school, the
	school's allotment determined per student in average daily
	attendance under Section 12.106(a-2) divided by the basic
	allotment.
	SECTION 1.33.  Sections 12.1058(e) and 12.106(a-4),
	Education Code, are repealed.
	SECTION 1.34.  Immediately following the effective date of
	this Act, 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 Act, 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, as amended by this
	article, 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 Act, shall be increased to reflect the
	teacher's redesignation under Section 21.3521, Education Code, as
	amended by this article.
	SECTION 1.35.  Not later than September 1, 2027, the
	commissioner of education shall post on the Texas Education
	Agency's Internet website the initial list of enhanced teacher
	incentive allotment public schools required by Section
	21.3521(d-3), Education Code, as added by this article.
	SECTION 1.36.  As soon as practicable after the effective
	date of this Act, the commissioner of education shall establish the
	grant program required under Section 29.941, Education Code, as
	added by this article.
	ARTICLE 2.  TEACHER PREPARATION AND CHANGES RELATED TO EMPLOYEES
	SECTION 2.01.  Section 12A.004(a), Education Code, is
	amended to read as follows:
	(a)  A local innovation plan may not provide for the
	exemption of a district designated as a district of innovation from
	the following provisions of this title:
	(1)  a state or federal requirement applicable to an
	open-enrollment charter school operating under Subchapter D,
	Chapter 12;
	(2)  Subchapters A, C, D, and E, Chapter 11, except that
	a district may be exempt from Sections 11.1511(b)(5) and (14) and
	Section 11.162;
	(3)  the employment of uncertified classroom teachers
	under Section 21.0032;
	(4)  parental notification requirements under Section
	21.057;
	(5)  state curriculum and graduation requirements
	adopted under Chapter 28; and
	(6) [(4)]  academic and financial accountability and
	sanctions under Chapters 39 and 39A.
	SECTION 2.02.  Section 21.001, Education Code, is amended by
	adding Subdivision (3-b) to read as follows:
	(3-b)  "Teacher of record" means a person employed by a
	school district who teaches the majority of the instructional day
	in an academic instructional setting and is responsible for
	evaluating student achievement and assigning grades.
	SECTION 2.03.  Subchapter A, Chapter 21, Education Code, is
	amended by adding Sections 21.0032 and 21.0033 to read as follows:
	Sec. 21.0032.  EMPLOYMENT OF UNCERTIFIED CLASSROOM
	TEACHERS. (a)  A school district may not employ as a teacher of
	record for a course in the foundation curriculum under Section
	28.002 a person who does not hold an appropriate certificate or
	permit required by the State Board for Educator Certification under
	Subchapter B.
	(a-1)  Notwithstanding Subsection (a), a school district may
	employ as a classroom teacher for a course in the foundation
	curriculum under Section 28.002 not more than the following
	applicable percentage of classroom teachers who do not hold an
	appropriate certificate or permit required by the State Board for
	Educator Certification under Subchapter B:
	(1)  for the 2026-2027 school year, 20 percent;
	(2)  for the 2027-2028 school year, 15 percent;
	(3)  for the 2028-2029 school year, 10 percent; and
	(4)  for the 2029-2030 school year, 5 percent.
	(a-2)  This subsection and Subsection (a-1) expire September
	1, 2031.
	(b)  This section does not preclude a school district from:
	(1)  receiving a waiver under Section 7.056; or
	(2)  issuing a school district teaching permit under
	Section 21.055.
	Sec. 21.0033.  TEACHER CERTIFICATION INCENTIVE.  (a)  From
	money appropriated or otherwise available for the purpose, the
	agency shall provide to each school district a one-time payment of
	$1,000 for each classroom teacher employed by the district who:
	(1)  was hired for the 2022-2023 or 2023-2024 school
	year as a first-year teacher;
	(2)  was uncertified on January 1, 2025;
	(3)  earned a standard certificate under Subchapter B
	by the end of the 2025-2026 school year; and
	(4)  was continuously employed by the district since
	the school year described by Subdivision (1).
	(b)  This section expires September 1, 2027.
	SECTION 2.04.  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 in special education, bilingual education, or
	another area specified by the General Appropriations Act, 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 described by Subsection (a) a fee
	assessed by that vendor for the examination of a person applying for
	a certification described by Subsection (a) for the first
	administration of the examination to the person.
	SECTION 2.05.  Subchapter I, Chapter 21, Education Code, is
	amended by adding Section 21.416 to read as follows:
	Sec. 21.416.  EMPLOYED RETIREE EDUCATOR REIMBURSEMENT GRANT
	PROGRAM. (a)  From money appropriated or otherwise available, the
	commissioner shall establish and administer a grant program 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 for the increased
	contributions to the Teacher Retirement System of Texas associated
	with hiring a teacher, or an educator providing special education
	services, who retired before September 1, 2024.
	(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, 2024, before which a teacher
	or educator 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 to be eligible; or
	(2)  limiting eligibility to a district or school
	described by Subdivision (1) that hires a retired teacher or
	educator, as applicable:
	(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 money 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 money
	received under this section to make required payments under Section
	825.4092, Government Code.
	SECTION 2.06.  Chapter 21, Education Code, is amended by
	adding Subchapter R to read as follows:
	SUBCHAPTER R. GROW YOUR OWN PARTNERSHIP PROGRAM
	Sec. 21.901.  DEFINITIONS. In this subchapter:
	(1)  "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 the program under
	this subchapter and paired with a student or employee participating
	in the program at the district or school; and
	(C)  provides coaching to a student or employee
	participating in the program in the teacher's classroom.
	(2)  "Program" means the Grow Your Own Partnership
	Program established under Section 21.902.
	Sec. 21.902.  GROW YOUR OWN PARTNERSHIP PROGRAM. (a) The
	commissioner shall establish the Grow Your Own Partnership Program
	to enable qualified institutions of higher education and educator
	preparation programs, as determined by the commissioner, to form
	partnerships with school districts or open-enrollment charter
	schools to establish innovative staffing pipelines to ensure the
	availability of high-quality classroom teachers to benefit future
	district or school students.
	(b)  The program must be designed to form partnerships that
	support:
	(1)  high school students in completing career and
	technical education courses that help prepare the students to
	become classroom teachers; or
	(2)  district or school employees who do not hold a
	teaching certificate in completing an associate degree or the first
	60 hours of a bachelor's degree to enable the person to become a
	classroom teacher while employed by the district or school.
	(c)  A school district or open-enrollment charter school may
	participate in the program on the approval of an application
	submitted to the commissioner by the district or school.
	(d)  A school district or open-enrollment charter school
	participating in the program shall:
	(1)  for a partnership described by Subsection (b)(1),
	provide:
	(A)  authentic opportunities, which may be paid or
	unpaid, for students to practice teaching under the supervision of
	a cooperating teacher; and
	(B)  guidance and other transition supports as a
	student begins an undergraduate degree program that offers a route
	to teacher preparation;
	(2)  for a partnership described by Subsection (b)(2),
	provide for a district or school employee:
	(A)  scheduled release time to support the
	completion of an associate degree or the first 60 hours of a
	bachelor's degree;
	(B)  authentic opportunities to practice teaching
	under the supervision of a cooperating teacher;
	(C)  on-the-job training aligned with the
	standards for educator certification established by the board;
	(D)  a job assignment that includes instructional
	support for students enrolled in the district or school; and
	(E)  guidance and other transition supports as the
	employee begins a program to satisfy the teacher preparation
	requirements under Subchapter B;
	(3)  enter into a written agreement with an institution
	of higher education;
	(4)  require an employee participating in a partnership
	described by Subsection (b)(2) to, as a condition for
	participation, earn a bachelor's degree and enroll in an educator
	preparation program within three years of completion of an
	associate degree or the first 60 hours of a bachelor's degree; and
	(5)  provide any information required by the agency
	regarding the district's or school's implementation of the program.
	(e)  A school district or open-enrollment charter school may
	use money received under Section 48.157 to implement the program
	and pay tuition and fees, including certification fees, for
	students or employees participating in the program.
	(f)  A school district or open-enrollment charter school may
	only pair a student or employee participating in the program with a
	cooperating teacher who agrees to participate in that role in the
	program at the district or school.
	(g)  A student or employee participating in the program may
	not serve:
	(1)  as a teacher of record; or
	(2)  except as provided by Subsection (h), in a
	position in which the student or employee has the primary or sole
	responsibility of providing instruction or supervision to
	students.
	(h)  A student or employee participating in the program may
	serve in a position described by Subsection (g)(2) for the limited
	purpose of gaining experience in the position.  The student's or
	employee's amount of time serving in that position may not exceed
	the amount of time during which the teacher of record for the
	students has the primary or sole responsibility of providing
	instruction or supervision to those students.
	Sec. 21.903.  RULES. The commissioner shall adopt rules as
	necessary to implement this subchapter.
	SECTION 2.07.  Subchapter D, Chapter 48, Education Code, is
	amended by adding Section 48.157 to read as follows:
	Sec. 48.157.  GROW YOUR OWN PARTNERSHIP PROGRAM ALLOTMENT.
	(a) Subject to Subsection (d), for each district employee
	participating in a partnership described by Section 21.902(b)(2), a
	school district is entitled to an annual allotment equal to the sum
	of:
	(1)  $8,000; and
	(2)  the high needs and rural factor, as determined
	under Subsection (b), multiplied by $1,000.
	(b)  The high needs and rural factor is 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.
	(c)  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 (b) 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.
	(d)  Unless a greater number of individuals is provided for
	by appropriation for that school year, a school district may
	receive an allotment under this section for a school year for not
	more than 40 district employees.
	(e)  The agency shall provide 50 percent of the money the
	school district is entitled to receive under this section for a
	district employee only on the employee's successful completion of a
	bachelor's degree by the deadline established by the agency.
	SECTION 2.08.  Section 12A.004(a), Education Code, as
	amended by this article, applies to each local innovation plan
	adopted under Chapter 12A, Education Code, regardless of whether
	the plan was adopted before, on, or after the effective date of this
	article. A local innovation plan adopted or renewed before the
	effective date of this article must comply with Section 12A.004(a),
	Education Code, as amended by this article, not later than
	September 1, 2025.
	ARTICLE 3.  SPECIAL EDUCATION
	SECTION 3.01.  Section 7.021(b)(10), Education Code, is
	amended to read as follows:
	(10)  The agency shall carry out duties assigned under
	Section 30.002 concerning children who have visual impairments, are
	deaf or hard of hearing, or are deaf-blind [with visual
	impairments].
	SECTION 3.02.  Section 7.055(b)(25), Education Code, is
	amended to read as follows:
	(25)  The commissioner shall develop a system to
	distribute to school districts or regional education service
	centers a special supplemental allowance for students with visual
	impairments as required under Section 30.0021 [30.002].
	SECTION 3.03.  Section 8.051(d), Education Code, is amended
	to read as follows:
	(d)  Each regional education service center shall maintain
	core services for purchase by school districts and campuses.  The
	core services are:
	(1)  training and assistance in:
	(A)  teaching each subject area assessed under
	Section 39.023; and
	(B)  providing instruction in personal financial
	literacy as required under Section 28.0021;
	(2)  training and assistance in providing each program
	that qualifies for a funding allotment under Section 48.102,
	48.1021, 48.103, 48.104, 48.105, or 48.109;
	(3)  assistance specifically designed for a school
	district or campus assigned an unacceptable performance rating
	under Section 39.054;
	(4)  training and assistance to teachers,
	administrators, members of district boards of trustees, and members
	of site-based decision-making committees;
	(5)  assistance specifically designed for a school
	district that is considered out of compliance with state or federal
	special education requirements, based on the agency's most recent
	compliance review of the district's special education programs; and
	(6)  assistance in complying with state laws and rules.
	SECTION 3.04.  Sections 28.025(c-7) and (c-8), Education
	Code, are amended to read as follows:
	(c-7)  Subject to Subsection (c-8), a student who is enrolled
	in a special education program under Subchapter A, Chapter 29, may
	earn the distinguished level of achievement under Subsection (b-15)
	or an endorsement on the student's transcript under Subsection
	(c-1) by:
	(1)  successfully completing, with or without
	modification of the curriculum:
	(A)  the curriculum requirements identified by
	the State Board of Education under Subsection (a); [and]
	(B)  for the distinguished level of achievement,
	the additional curriculum requirements prescribed under Subsection
	(b-15); and
	(C)  for an endorsement, the additional
	[endorsement] curriculum requirements prescribed by the State
	Board of Education under Subsection (c-2); and
	(2)  successfully completing all curriculum
	requirements for the distinguished level of achievement or that
	endorsement adopted by the State Board of Education:
	(A)  without modification of the curriculum; or
	(B)  with modification of the curriculum,
	provided that the curriculum, as modified, is sufficiently rigorous
	as determined by the student's admission, review, and dismissal
	committee and documented in the student's individualized education
	program.
	(c-8)  For purposes of Subsection (c-7), the admission,
	review, and dismissal committee of a student in a special education
	program under Subchapter A, Chapter 29, shall determine whether the
	student is required to achieve satisfactory performance on an
	end-of-course assessment instrument to earn the distinguished
	level of achievement or an endorsement on the student's transcript.
	SECTION 3.05.  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 (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 must [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 must focus on providing a free
	appropriate public education and maximizing student outcomes and
	include [agency shall also develop and implement a statewide plan
	with programmatic content that includes procedures designed to]:
	(1)  rulemaking, technical assistance, guidance
	documents, monitoring protocols, data elements necessary for
	statewide reporting, 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 procedures for service centers to assist school
	districts in identifying existing public or private educational or
	related services in each region, cooperatively developing programs
	for students with disabilities, providing to or obtaining for
	school districts special equipment, delivering services, and
	facilitating [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
	multidisciplinary evaluation teams and 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)  appropriately trained personnel are
	available to students with disabilities who have significant
	behavioral support needs, including by providing behavioral
	support training for a paraprofessional or teacher placed in a
	classroom or other setting that is intended to provide specialized
	behavioral supports to a student with a disability, as needed or at
	regular intervals as provided in the student's individualized
	education program;
	(D)  [(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];
	(E)  [(9)  ensure that] each student with a
	disability is provided necessary related services;
	(F)  school districts have an opportunity to
	request technical assistance from the agency or a regional
	education service center in establishing classroom environments
	conducive to learning for students with disabilities, including
	environments for students whose data indicate behavior that
	significantly impedes the student's own learning and the learning
	of other students;
	(G)  [(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
	(H)  [(11)  ensure that] each district develops a
	process to be used by a teacher who instructs a student with a
	disability in a general education [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 3.06.  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 3.07.  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 general education
	[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, is
	deaf or hard of hearing, or is deaf-blind 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 nine 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 3.08.  Sections 29.005(a), (d), and (e), Education
	Code, are amended to read as follows:
	(a)  Before a child is enrolled in a special education
	program of a school district, the district shall establish a
	committee composed of the persons required under 20 U.S.C. Section
	1414(d) to develop the child's individualized education program.
	If a committee is required to include a general [regular] education
	teacher, the [regular education] teacher included must, to the
	extent practicable, be a teacher who is responsible for
	implementing a portion of the child's individualized education
	program.
	(d)  If the primary language of the child's parent is a
	language other than [is unable to speak] English, the district
	shall:
	(1)  provide the parent with a written or audiotaped
	copy of the child's individualized education program translated
	into Spanish if Spanish is the parent's primary [native] language;
	or
	(2)  if the parent's primary [native] language is a
	language other than Spanish, make a good faith effort to provide the
	parent with a written or audiotaped copy of the child's
	individualized education program translated into the parent's
	primary [native] language.
	(e)  The commissioner by rule may require a school district
	to include in the individualized education program of a student
	with autism [or another pervasive developmental disorder] any
	information or requirement determined necessary to ensure the
	student receives a free appropriate public education as required
	under the Individuals with Disabilities Education Act (20 U.S.C.
	Section 1400 et seq.).
	SECTION 3.09.  Section 29.0051, Education Code, is amended
	by adding Subsection (d) to read as follows:
	(d)  From federal money available for the purpose, the
	commissioner may develop or procure the model form developed under
	Subsection (a) in a digital format.  If the commissioner develops or
	procures the model form in a digital format, the commissioner shall
	adopt rules regarding school district use of the form in that
	format.
	SECTION 3.10.  Subchapter A, Chapter 29, Education Code, is
	amended by adding Section 29.0056 to read as follows:
	Sec. 29.0056.  INFORMATION ON COMMUNITY-BASED SUPPORTS AND
	RESIDENTIAL OPTIONS. (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, shall develop and
	provide to the agency materials regarding residential options and
	supports for children who may qualify for home and community-based
	supports or a residential placement. The agency shall make the
	materials developed under this subsection available to school
	districts.
	(c)  The materials must include information regarding:
	(1)  the local intellectual and developmental
	disability authority; and
	(2)  community-based supports and residential options,
	including:
	(A)  the following waiver programs established
	under Section 1915(c), Social Security Act (42 U.S.C. Section
	1396n(c)):
	(i)  the youth empowerment services program;
	(ii)  the home and community-based services
	program;
	(iii)  the Texas home living program;
	(iv)  the community living assistance and
	support services program; and
	(v)  the deaf-blind with multiple
	disabilities program;
	(B)  the Medicaid program serving individuals
	with an intellectual or developmental disability who receive care
	in intermediate care facilities other than a state supported living
	center; and
	(C)  state supported living centers.
	(d)  A school district shall include the materials developed
	under Subsection (b) in the notice of procedural safeguards under
	20 U.S.C. Section 1415(b).
	SECTION 3.11.  Sections 29.006(a) and (c), Education Code,
	are amended to read as follows:
	(a)  The governor shall appoint a continuing advisory
	committee consistent with [, composed of 17 members, under] 20
	U.S.C. Section 1412(a)(21).  At least one member appointed under
	this subsection must be a director of special education programs
	for a school district.
	(c)  Members of the committee are appointed for staggered
	terms of four years with the terms of half of the [eight or nine]
	members or, for an odd number of members, half of the members
	rounded down or half of the members rounded up expiring on February
	1 of each odd-numbered year.
	SECTION 3.12.  Section 29.008, Education Code, is amended to
	read as follows:
	Sec. 29.008.  CONTRACTS FOR SERVICES; RESIDENTIAL AND DAY
	PLACEMENT PROGRAMS.  (a)  The commissioner shall set minimum
	standards for and develop and update as necessary a list of approved
	public or private facilities, institutions, agencies, or
	businesses 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 or day placement program.
	(a-1)  [Each contract for residential placement must be
	approved by the commissioner.]  The commissioner may approve a
	facility, institution, agency, or business under Subsection (a)
	[residential placement contract] 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.]
	(a-2)  Each contract described by this section must be
	approved by the commissioner.  A school district, shared services
	arrangement unit, or regional education service center seeking to
	place a student in a residential or day placement program that is
	not on the list developed under Subsection (a) must submit to the
	commissioner an application for approval in accordance with
	Subsections (a) and (a-1).
	(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.
	(c)  When a student, including one for whom the state is
	managing conservator, is placed primarily for care or treatment
	reasons in a private [residential] facility that operates its own
	private education program, none of the costs may be paid from public
	education funds.  If a [residential] placement primarily for care
	or treatment reasons involves a private [residential] facility in
	which the education program is provided by the school district, the
	portion of the costs that includes appropriate education services,
	as determined by the school district's admission, review, and
	dismissal committee, shall be paid from state and federal education
	funds.
	(d)  A district that contracts for the provision of education
	services rather than providing the services itself shall oversee
	the implementation of the student's individualized education
	program and shall annually reevaluate the appropriateness of the
	arrangement.  The reevaluation must include standards and
	expectations that the student would need to meet to be reintegrated
	to a regular school setting.  An approved facility, institution,
	[or] agency, or business with whom the district contracts shall
	periodically report to the district and the agency on the services
	the student has received or will receive in accordance with the
	contract as well as diagnostic or other evaluative information that
	the district or agency requires in order to fulfill its obligations
	under this subchapter.
	(e)  The commissioner shall adopt rules for residential and
	day placement of students receiving special education services.
	SECTION 3.13.  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 3.14.  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].
	(a-1)  As part of the monitoring system, the agency may
	require a school district to obtain specialized technical
	assistance for a documented noncompliance issue or if data
	indicates that technical assistance is needed, such as an incident
	involving injury to staff or students by a student receiving
	special education services or data indicating an excessive number
	of restraints are used on students receiving special education
	services.
	(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 system of progressive
	sanctions and enforcement provisions 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 must [may] range in
	severity and may include [up to] the withholding of funds.  If funds
	are withheld, the agency may use the funds, or direct the funds to
	be used, 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 3.15.  Section 29.012(d), Education Code, is amended
	to read as follows:
	(d)  The Texas Education Agency, the Health and Human
	Services Commission, the Department of Family and Protective
	Services, and the Texas Juvenile Justice Department by a
	cooperative effort shall develop and [by rule] adopt a memorandum
	of understanding.  The memorandum must:
	(1)  establish the respective responsibilities of
	school districts and of residential facilities for the provision of
	a free, appropriate public education, as required by the
	Individuals with Disabilities Education Act (20 U.S.C. Section 1400
	et seq.) and its subsequent amendments, including each requirement
	for children with disabilities who reside in those facilities;
	(2)  coordinate regulatory and planning functions of
	the parties to the memorandum;
	(3)  establish criteria for determining when a public
	school will provide educational services;
	(4)  provide for appropriate educational space when
	education services will be provided at the residential facility;
	(5)  establish measures designed to ensure the safety
	of students and teachers; and
	(6)  provide for binding arbitration consistent with
	Chapter 2009, Government Code, and Section 154.027, Civil Practice
	and Remedies Code.
	SECTION 3.16.  Section 29.013, Education Code, is amended to
	read as follows:
	Sec. 29.013.  NONEDUCATIONAL COMMUNITY-BASED SUPPORT
	SERVICES GRANTS FOR CERTAIN STUDENTS WITH DISABILITIES.  (a)  The
	commissioner [agency] shall adopt rules establishing [establish]
	procedures and criteria for the allocation of grants [funds
	appropriated] under this section, using money appropriated or
	otherwise available for the purpose, to students who are eligible
	under Subsection (b) and the students' families [school districts]
	for the provision of noneducational community-based support
	services [to certain students with disabilities and their families
	so that those students may receive an appropriate free public
	education in the least restrictive environment].
	(b)  A grant [The funds] may be awarded under this section
	[used] only to a student with a disability [for eligible students
	with disabilities] who is [would remain or would have to be] placed
	by the student's admission, review, and dismissal committee in:
	(1)  a residential program approved under Section
	29.008; or
	(2)  a day placement program and is at risk of being
	placed in a residential program approved under Section 29.008
	[facilities primarily for educational reasons without the
	provision of noneducational community-based support services].
	(c)  The support services may not be related to the provision
	of a free appropriate public education to the student and may
	include in-home family support, behavioral and other
	disability-related supports for the student's family, respite
	care, and case management for the student's family [families with a
	student who otherwise would have been placed by a district in a
	private residential facility].
	(d)  A school district shall:
	(1)  notify the parent of a student described by
	Subsection (b) of the availability of grants under this section;
	and
	(2)  designate a campus or district staff member to
	assist families of students described by Subsection (b) in
	accessing grants under this section.
	(e)  On request by the parent of a student described by
	Subsection (b), the commissioner shall create an account for the
	student to access a grant under this section through which the
	parent may request payment for approved support services.
	(f)  In adopting rules under this section, the commissioner
	shall adopt rules and guidelines detailing the process to access
	grant money and the amount of each grant, including a process for a
	parent to apply for an increase in the grant amount.
	(g)  The provision of services under this section does not
	supersede or limit the responsibility of a school district or other
	agencies to provide or pay for costs [of noneducational
	community-based support services] to enable any student with
	disabilities to receive a free appropriate public education in the
	least restrictive environment.  [Specifically, services provided
	under this section may not be used for a student with disabilities
	who is currently placed or who needs to be placed in a residential
	facility primarily for noneducational reasons.]
	(h)  The commissioner may designate a regional education
	service center to administer grants under this section.
	SECTION 3.17.  Sections 29.014(c) and (d), Education Code,
	are amended to read as follows:
	(c)  Notwithstanding any other provision of this code, a
	student whose appropriate education program is a general [regular]
	education program may receive services and be counted for
	attendance purposes for the number of hours per week appropriate
	for the student's condition if the student:
	(1)  is temporarily classified as eligible for
	participation in a special education program because of the
	student's confinement in a hospital; and
	(2)  the student's education is provided by a district
	to which this section applies.
	(d)  The basic allotment for a student enrolled in a district
	to which this section applies is adjusted by the tier of intensity
	of service defined in accordance with [weight for a homebound
	student under] Section 48.102 and designated by commissioner rule
	for use under this section [48.102(a)].
	SECTION 3.18.  Section 29.0162(b), Education Code, is
	amended to read as follows:
	(b)  The commissioner by rule shall adopt additional
	qualifications and requirements for a representative for purposes
	of Subsection (a)(2).  The rules must:
	(1)  prohibit an individual from being a representative
	under Subsection (a)(2) opposing a school district if:
	(A)  the individual has prior employment
	experience with the district; and
	(B)  the district raises an objection to the
	individual serving as a representative;
	(2)  include requirements that the representative have
	knowledge of:
	(A)  all special education dispute resolution
	options available to parents, including due process and due process
	rules, hearings, and procedure; and
	(B)  federal and state special education laws;
	(3)  require, if the representative receives monetary
	compensation from a person for representation in an impartial due
	process hearing, that the representative agree to abide by a
	voluntary code of ethics and professional conduct during the period
	of representation; and
	(4)  require, if the representative receives monetary
	compensation from a person for representation in an impartial due
	process hearing, that the representative enter into a written
	agreement for representation with the person who is the subject of
	the special education due process hearing that includes a process
	for resolving any disputes between the representative and the
	person.
	SECTION 3.19.  Section 29.018(b), Education Code, is amended
	to read as follows:
	(b)  A school district is eligible to apply for a grant under
	this section if:
	(1)  the district does not receive sufficient funds,
	including state funds provided under Sections [Section] 48.102 and
	48.1021 and federal funds, for a student with disabilities to pay
	for the special education services provided to the student; or
	(2)  the district does not receive sufficient funds,
	including state funds provided under Sections [Section] 48.102 and
	48.1021 and federal funds, for all students with disabilities in
	the district to pay for the special education services provided to
	the students.
	SECTION 3.20.  The heading to Section 29.020, Education
	Code, is amended to read as follows:
	Sec. 29.020.  STATE-ADMINISTERED INDIVIDUALIZED EDUCATION
	PROGRAM FACILITATION [PROJECT].
	SECTION 3.21.  Sections 29.020(a) and (c), Education Code,
	are amended to read as follows:
	(a)  The agency shall develop rules in accordance with this
	section applicable to state-administered [the administration of a
	state] individualized education program facilitation [project].
	The program shall include the provision of an independent
	individualized education program facilitator as a dispute
	resolution method that may be used to avoid a potential dispute
	between a school district and a parent of a student with a
	disability or to facilitate an admission, review, and dismissal
	committee meeting with parties who are in a dispute about decisions
	relating to the provision of a free appropriate public education to
	a student with a disability.  Facilitation [implemented under the
	project] must comply with rules developed under this subsection.
	(c)  If the commissioner determines that adequate funding is
	available, the commissioner may authorize the use of federal funds
	to implement [the] individualized education program facilitation
	[project] in accordance with this section.
	SECTION 3.22.  Sections 29.022(a), (a-1), (b), (c), (c-1),
	(d), (f), (h), (k), (l), (q), (s), and (t), Education Code, are
	amended to read as follows:
	(a)  In order to promote student safety, on receipt of a
	written request authorized under Subsection (a-1), a school
	district or open-enrollment charter school shall provide
	equipment, including a video camera, to the school or schools in the
	district or the charter school campus or campuses specified in the
	request.  A school or campus that receives equipment as provided by
	this subsection shall place, operate, and maintain one or more
	video cameras in special education [self-contained] classrooms and
	other special education settings [in which a majority of the
	students in regular attendance are provided special education and
	related services and are assigned to one or more self-contained
	classrooms or other special education settings for at least 50
	percent of the instructional day], provided that:
	(1)  a school or campus that receives equipment as a
	result of the request by a parent or staff member is required to
	place equipment only in classrooms or settings in which the
	parent's child is in regular attendance or to which the staff member
	is assigned, as applicable; and
	(2)  a school or campus that receives equipment as a
	result of the request by a board of trustees, governing body,
	principal, or assistant principal is required to place equipment
	only in classrooms or settings identified by the requestor, if the
	requestor limits the request to specific classrooms or settings
	subject to this subsection.
	(a-1)  For purposes of Subsection (a):
	(1)  a parent of a child who receives special education
	services in one or more special education [self-contained]
	classrooms or other special education settings may request in
	writing that equipment be provided to the school or campus at which
	the child receives those services;
	(2)  a board of trustees or governing body may request
	in writing that equipment be provided to one or more specified
	schools or campuses at which one or more children receive special
	education services in special education [self-contained]
	classrooms or other special education settings;
	(3)  the principal or assistant principal of a school
	or campus at which one or more children receive special education
	services in special education [self-contained] classrooms or other
	special education settings may request in writing that equipment be
	provided to the principal's or assistant principal's school or
	campus; and
	(4)  a staff member assigned to work with one or more
	children receiving special education services in special education
	[self-contained] classrooms or other special education settings
	may request in writing that equipment be provided to the school or
	campus at which the staff member works.
	(b)  A school or campus that places a video camera in a
	special education classroom or other special education setting in
	accordance with Subsection (a) shall operate and maintain the video
	camera in the classroom or setting, as long as the classroom or
	setting continues to satisfy the requirements under Subsection (a),
	for the remainder of the school year in which the school or campus
	received the request, unless the requestor withdraws the request in
	writing.  If for any reason a school or campus will discontinue
	operation of a video camera during a school year, not later than the
	fifth school day before the date the operation of the video camera
	will be discontinued, the school or campus must notify the parents
	of each student in regular attendance in the classroom or setting
	that operation of the video camera will not continue unless
	requested by a person eligible to make a request under Subsection
	(a-1).  Not later than the 10th school day before the end of each
	school year, the school or campus must notify the parents of each
	student in regular attendance in the classroom or setting that
	operation of the video camera will not continue during the
	following school year unless a person eligible to make a request for
	the next school year under Subsection (a-1) submits a new request.
	(c)  Except as provided by Subsection (c-1), video cameras
	placed under this section must be capable of:
	(1)  covering all areas of the special education
	classroom or other special education setting, including a room
	attached to the classroom or setting used for time-out; and
	(2)  recording audio from all areas of the special
	education classroom or other special education setting, including a
	room attached to the classroom or setting used for time-out.
	(c-1)  The inside of a bathroom or any area in the special
	education classroom or other special education setting in which a
	student's clothes are changed may not be visually monitored, except
	for incidental coverage of a minor portion of a bathroom or changing
	area because of the layout of the classroom or setting.
	(d)  Before a school or campus activates a video camera in a
	special education classroom or other special education setting
	under this section, the school or campus shall provide written
	notice of the placement to all school or campus staff and to the
	parents of each student attending class or engaging in school
	activities in the classroom or setting.
	(f)  A school district or open-enrollment charter school may
	solicit and accept gifts, grants, and donations from any person for
	use in placing video cameras in special education classrooms or
	other special education settings under this section.
	(h)  A school district or open-enrollment charter school may
	not:
	(1)  allow regular or continual monitoring of video
	recorded under this section; or
	(2)  use video recorded under this section for teacher
	evaluation or for any other purpose other than the promotion of
	safety of students receiving special education services in a
	special education [self-contained] classroom or other special
	education setting.
	(k)  The commissioner may adopt rules to implement and
	administer this section, including rules regarding the special
	education classrooms and other special education settings to which
	this section applies.
	(l)  A school district or open-enrollment charter school
	policy relating to the placement, operation, or maintenance of
	video cameras under this section must:
	(1)  include information on how a person may appeal an
	action by the district or school that the person believes to be in
	violation of this section or a policy adopted in accordance with
	this section, including the appeals process under Section 7.057;
	(2)  require that the district or school provide a
	response to a request made under this section not later than the
	seventh school business day after receipt of the request by the
	person to whom it must be submitted under Subsection (a-3) that
	authorizes the request or states the reason for denying the
	request;
	(3)  except as provided by Subdivision (5), require
	that a school or a campus begin operation of a video camera in
	compliance with this section not later than the 45th school
	business day, or the first school day after the 45th school business
	day if that day is not a school day, after the request is authorized
	unless the agency grants an extension of time;
	(4)  permit the parent of a student whose admission,
	review, and dismissal committee has determined that the student's
	placement for the following school year will be in a special
	education classroom or other special education setting in which a
	video camera may be placed under this section to make a request for
	the video camera by the later of:
	(A)  the date on which the current school year
	ends; or
	(B)  the 10th school business day after the date
	of the placement determination by the admission, review, and
	dismissal committee; and
	(5)  if a request is made by a parent in compliance with
	Subdivision (4), unless the agency grants an extension of time,
	require that a school or campus begin operation of a video camera in
	compliance with this section not later than the later of:
	(A)  the 10th school day of the fall semester; or
	(B)  the 45th school business day, or the first
	school day after the 45th school business day if that day is not a
	school day, after the date the request is made.
	(q)  The agency shall collect through the Public Education
	Information Management System (PEIMS) data relating to requests
	made under this section and actions taken by a school district or
	open-enrollment charter school in response to a request, including
	the number of requests made, authorized, and denied.
	(s)  This section applies to the placement, operation, and
	maintenance of a video camera in a special education
	[self-contained] classroom or other special education setting
	during the regular school year and extended school year services.
	(t)  A video camera placed under this section is not required
	to be in operation for the time during which students are not
	present in the special education classroom or other special
	education setting.
	SECTION 3.23.  Sections 29.022(u)(3) and (4), Education
	Code, are amended to read as follows:
	(3)  "Special education classroom or other special
	education setting" means a classroom or setting primarily used for
	delivering special education services to students who spend on
	average less than 50 percent of an instructional day in a general
	education classroom or setting ["Self-contained classroom" does
	not include a classroom that is a resource room instructional
	arrangement under Section 48.102].
	(4)  "Staff member" means a teacher, related service
	provider, paraprofessional, counselor, or educational aide
	assigned to work in a special education [self-contained] classroom
	or other special education setting.
	SECTION 3.24.  Subchapter A, Chapter 29, Education Code, is
	amended by adding Sections 29.023, 29.024, 29.025, and 29.026 to
	read as follows:
	Sec. 29.023.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
	WITH AUTISM. (a) From money appropriated or otherwise available
	for the purpose, 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 money 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 money.
	(j)  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.
	(k)  A regional education service center may administer
	grants awarded under this section.
	Sec. 29.024.  GRANT PROGRAM PROVIDING TRAINING IN DYSLEXIA
	FOR TEACHERS, STAFF, AND OTHER PERSONNEL. (a) From money
	appropriated or otherwise available for the purpose, the
	commissioner shall establish a program to award grants each school
	year to school districts, open-enrollment charter schools, the
	Texas Juvenile Justice Department, juvenile boards, and juvenile
	probation departments 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,
	an open-enrollment charter school, including a charter school that
	primarily serves students with disabilities, as provided under
	Section 12.1014, the Texas Juvenile Justice Department, a juvenile
	board, or a juvenile probation department is eligible to apply for a
	grant under this section if the district, school, department, or
	board 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,
	administrators, and other relevant personnel in meeting the needs
	of students with dyslexia; or
	(B)  training to intervention staff resulting in
	appropriate credentialing related to dyslexia, with priority for
	training staff to earn the credentials necessary to become a
	licensed dyslexia therapist or certified academic language
	therapist.
	(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 awarded under this section is in addition to the
	Foundation School Program money that the grant recipient is
	otherwise entitled to receive. A grant awarded under this section
	may not come out of Foundation School Program money.
	(e)  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.
	(f)  A regional education service center may administer
	grants awarded under this section.
	Sec. 29.025.  SUPPORTS FOR RECRUITING AND RETAINING SPECIAL
	EDUCATION STAFF. (a) From money appropriated or otherwise
	available for the purpose, the agency shall provide grants each
	school year 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, certified interpreters,
	board-certified behavior analysts, registered behavior
	technicians, 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)  A regional education service center may administer
	grants awarded under this section.
	(d)  The commissioner shall adopt rules establishing the
	period of required employment described by Subsection (b) and any
	other rules necessary to implement this section.
	Sec. 29.026.  RULES.  The commissioner may adopt rules as
	necessary to implement this subchapter.
	SECTION 3.25.  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 3.26.  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 3.27.  Section 29.042, Education Code, is amended by
	amending Subsections (a) and (c) and adding Subsection (e) 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.
	(c)  A student may receive one grant under this subchapter
	unless the legislature appropriates money for an additional grant
	in the General Appropriations Act [The commissioner shall set aside
	an amount set by appropriation for each state fiscal year to fund
	the program under this section. For each state fiscal year, the
	total amount provided for student grants under Subsection (a) may
	not exceed the amount set aside by the commissioner under this
	subsection].
	(e)  The agency shall maintain an online user-friendly
	application system for parents to apply for a grant described by
	Subsection (a).
	SECTION 3.28.  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 3.29.  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 3.30.  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 3.31.  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 3.32.  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 3.33.  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 3.34.  Section 29.153, Education Code, is amended by
	amending Subsection (b) and adding Subsection (b-2) 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 a child eligible for special education services
	under Subchapter A and the child's admission, review, and dismissal
	committee determines the prekindergarten class to be the most
	appropriate placement for the child under the child's
	individualized education program.
	(b-2)  A child described by Subsection (b)(8) who is at least
	three years of age but younger than four years of age may be
	enrolled in a prekindergarten class offered to children who are at
	least four years of age if:
	(1)  the school district does not offer a
	prekindergarten program for children who are at least three years
	of age; and
	(2)  the child's admission, review, and dismissal
	committee determines the prekindergarten class to be the most
	appropriate placement for the child under the child's
	individualized education program.
	SECTION 3.35.  Section 29.301(1), Education Code, is amended
	to read as follows:
	(1)  "Admission, review, and dismissal committee"
	means the committee required by [State Board of Education rules to
	develop the individualized education program required by] the
	Individuals with Disabilities Education Act (20 U.S.C. Section 1400
	et seq.) for any student needing special education.
	SECTION 3.36.  Sections 29.304(a) and (c), Education Code,
	are amended to read as follows:
	(a)  A student who is deaf or hard of hearing must have an
	education in which teachers, psychologists, speech language
	pathologists [therapists], progress assessors, administrators, and
	others involved in education understand the unique nature of
	deafness and the hard-of-hearing condition.  A teacher of students
	who are deaf or hard of hearing either must be proficient in
	appropriate language modes or use an interpreter certified in
	appropriate language modes if certification is available.
	(c)  General [Regular] and special education personnel who
	work with students who are deaf or hard of hearing must be
	adequately prepared to provide educational instruction and
	services to those students.
	SECTION 3.37.  Section 29.310, Education Code, is amended by
	amending Subsection (c) and adding Subsection (d) to read as
	follows:
	(c)  The procedures and materials for the assessment and
	placement of a student who is deaf or hard of hearing shall be in the
	student's preferred mode of communication.  All other procedures
	and materials used with any student who is deaf or hard of hearing
	and who is an emergent bilingual student as defined by Section
	29.052 [has limited English proficiency] shall be in the student's
	preferred mode of communication.
	(d)  In recognizing the need for development of language and
	communication abilities in students who are deaf or hard of hearing
	but also calling for the use of methods of communication that will
	meet the needs of each individual student, each student who is deaf
	or hard of hearing must be thoroughly assessed to ascertain the
	student's potential for communicating through a variety of means.
	SECTION 3.38.  Section 29.313, Education Code, is amended to
	read as follows:
	Sec. 29.313.  EVALUATION OF DEAF AND HARD OF HEARING
	SERVICES [PROGRAMS].  (a)  Each school district must provide
	continuous evaluation of the effectiveness of the district's
	services [programs of the district] for students who are deaf or
	hard of hearing.  The [If practicable,] evaluations shall follow
	program excellence indicators established by the agency.
	(b)  Each school district shall submit the evaluations under
	this section to the agency on a schedule set by the agency.
	SECTION 3.39.  Section 29.314, Education Code, is amended to
	read as follows:
	Sec. 29.314.  TRANSITION INTO GENERAL EDUCATION [REGULAR]
	CLASS.  In addition to satisfying requirements of the admission,
	review, and dismissal committee and to satisfying requirements
	under state and federal law for vocational training, each school
	district shall develop and implement a transition plan for the
	transition of a student who is deaf or hard of hearing into a
	general education [regular] class [program] if the student is to be
	transferred from a special class or center or nonpublic,
	nonsectarian school into a general education [regular] class in a
	public school for any part of the school day.  The transition plan
	must provide for activities:
	(1)  to integrate the student into the general
	[regular] education program and specify the nature of each activity
	and the time spent on the activity each day; and
	(2)  to support the transition of the student from the
	special education program into the general [regular] education
	program.
	SECTION 3.40.  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; and
	(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 3.41.  Section 29.316, Education Code, is amended to
	read as follows:
	Sec. 29.316.  LANGUAGE ACQUISITION.  (a)  In this section,
	"language [:
	[(1)  "Center" means the Educational Resource Center on
	Deafness at the Texas School for the Deaf.
	[(2)  "Division" means the Division for Early Childhood
	Intervention Services of the Health and Human Services Commission.
	[(3)  "Language] acquisition" includes expressive and
	receptive language acquisition and literacy development in
	English, American Sign Language, or both, or, if applicable, in
	another language primarily used by a child's parent or guardian,
	and is separate from any modality used to communicate in the
	applicable language or languages.
	(b)  Each school district [The commissioner and the
	executive commissioner of the Health and Human Services Commission
	jointly] shall ensure that the language acquisition of each child
	eight years of age or younger who is deaf or hard of hearing is
	regularly assessed using a tool or assessment approved by the
	commissioner [determined to be valid and reliable as provided by
	Subsection (d)].
	(c)  On a schedule determined by the commissioner, each
	school district shall report to the commissioner through the Public
	Education Information Management System (PEIMS) or another method
	set by commissioner rule the assessment data collected under
	Subsection (b) [Not later than August 31 of each year, the agency,
	the division, and the center jointly shall prepare and post on the
	agency's, the division's, and the center's respective Internet
	websites a report on the language acquisition of children eight
	years of age or younger who are deaf or hard of hearing. The report
	must:
	[(1)  include:
	[(A)  existing data reported in compliance with
	federal law regarding children with disabilities; and
	[(B)  information relating to the language
	acquisition of children who are deaf or hard of hearing and also
	have other disabilities;
	[(2)  state for each child:
	[(A)  the instructional arrangement used with the
	child, as described by Section 48.102, including the time the child
	spends in a mainstream instructional arrangement;
	[(B)  the specific language acquisition services
	provided to the child, including:
	[(i)  the time spent providing those
	services; and
	[(ii)  a description of any hearing
	amplification used in the delivery of those services, including:
	[(a)  the type of hearing
	amplification used;
	[(b)  the period of time in which the
	child has had access to the hearing amplification; and
	[(c)  the average amount of time the
	child uses the hearing amplification each day;
	[(C)  the tools or assessments used to assess the
	child's language acquisition and the results obtained;
	[(D)  the preferred unique communication mode
	used by the child at home; and
	[(E)  the child's age, race, and gender, the age
	at which the child was identified as being deaf or hard of hearing,
	and any other relevant demographic information the commissioner
	determines to likely be correlated with or have an impact on the
	child's language acquisition;
	[(3)  compare progress in English literacy made by
	children who are deaf or hard of hearing to progress in that subject
	made by children of the same age who are not deaf or hard of hearing,
	by appropriate age range; and
	[(4)  be redacted as necessary to comply with state and
	federal law regarding the confidentiality of student medical or
	educational information].
	(d)  The commissioner[, the executive commissioner of the
	Health and Human Services Commission, and the center] shall adopt
	rules establishing the assessment data required to be reported
	under Subsection (c) [enter into a memorandum of understanding
	regarding:
	[(1)  the identification of experts in deaf education;
	and
	[(2)  the determination, in consultation with those
	experts, of the tools and assessments that are valid and reliable,
	in both content and administration, for use in assessing the
	language acquisition of children eight years of age or younger who
	are deaf or hard of hearing].
	(e)  The commissioner shall annually post on the agency's
	Internet website a report on the language acquisition of children
	eight years of age or younger who are deaf or hard of hearing using
	the assessment data reported under Subsection (c) [agency shall use
	existing collected data and data collected and transferred from the
	Department of State Health Services and the Health and Human
	Services Commission, as agreed upon in the memorandum of
	understanding, for the report under this section].
	(f)  The commissioner shall use the assessment data reported
	under Subsection (c) in determining whether to award a grant under
	Section 29.018 or in seeking federal money available for projects
	aimed at improving outcomes for students with disabilities [and the
	executive commissioner of the Health and Human Services Commission
	jointly shall adopt rules as necessary to implement this section,
	including rules for:
	[(1)  assigning each child eight years of age or
	younger who is deaf or hard of hearing a unique identification
	number for purposes of the report required under Subsection (c) and
	to enable the tracking of the child's language acquisition, and
	factors affecting the child's language acquisition, over time; and
	[(2)  implementing this section in a manner that
	complies with federal law regarding confidentiality of student
	medical or educational information, including the Health Insurance
	Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
	et seq.) and the Family Educational Rights and Privacy Act of 1974
	(20 U.S.C. Section 1232g), and any state law relating to the privacy
	of student information].
	SECTION 3.42.  The heading to Section 30.002, Education
	Code, is amended to read as follows:
	Sec. 30.002.  STATE PLAN [EDUCATION] FOR CHILDREN WITH
	VISUAL IMPAIRMENTS, WHO ARE DEAF OR HARD OF HEARING, OR WHO ARE
	DEAF-BLIND.
	SECTION 3.43.  Sections 30.002(a), (b), (c), and (e),
	Education Code, are amended to read as follows:
	(a)  The agency shall develop and administer a comprehensive
	statewide plan for the education of children [with visual
	impairments] who are under 22 [21] years of age and who have visual
	impairments, are deaf or hard of hearing, or are deaf-blind that
	will ensure that the children have an opportunity for achievement
	equal to the opportunities afforded their peers who do not have
	visual impairments, are not deaf or hard of hearing, or are not
	deaf-blind [with normal vision].
	(b)  The agency shall:
	(1)  develop standards and guidelines for all special
	education and related services for children who have visual
	impairments, are deaf or hard of hearing, or are deaf-blind [with
	visual impairments] that it is authorized to provide or support
	under this code and federal law;
	(2)  supervise regional education service centers and
	other entities in assisting school districts in serving children
	who have visual impairments, are deaf or hard of hearing, or are
	deaf-blind [with visual impairments] more effectively; and
	(3)  [develop and administer special education
	services for students with both serious visual and auditory
	impairments;
	[(4)  evaluate special education services provided for
	children with visual impairments by school districts and approve or
	disapprove state funding of those services; and
	[(5)]  maintain an effective liaison between special
	education programs provided for children who have visual
	impairments, are deaf or hard of hearing, or are deaf-blind [with
	visual impairments] by school districts and related initiatives of
	the Health and Human Services Commission, [the Department of State
	Health Services Mental Health and Substance Abuse Division,] the
	Texas Workforce Commission, and other related programs, agencies,
	or facilities as appropriate.
	(c)  The comprehensive statewide plan for the education of
	children who have visual impairments, are deaf or hard of hearing,
	or are deaf-blind [with visual impairments] must:
	(1)  adequately provide for comprehensive diagnosis
	and evaluation of each school-age child who has a visual
	impairment, is deaf or hard of hearing, or is deaf-blind and
	adequately outline the expectations of a school district for such a
	child under three years of age [with a serious visual impairment];
	(2)  include the procedures, format, and content of the
	individualized education program for each child who has a visual
	impairment, is deaf or hard of hearing, or is deaf-blind [with a
	visual impairment];
	(3)  emphasize providing educational services to
	children who have visual impairments, are deaf or hard of hearing,
	or are deaf-blind [with visual impairments] in their home
	communities whenever possible;
	(4)  include information regarding the establishment
	of regional day school programs for the deaf under Subchapter D and
	the parameters of those programs [methods to ensure that children
	with visual impairments receiving special education services in
	school districts receive, before being placed in a classroom
	setting or within a reasonable time after placement:
	[(A)  evaluation of the impairment; and
	[(B)  instruction in an expanded core curriculum,
	which is required for students with visual impairments to succeed
	in classroom settings and to derive lasting, practical benefits
	from the education provided by school districts, including
	instruction in:
	[(i)  compensatory skills, such as braille
	and concept development, and other skills needed to access the rest
	of the curriculum;
	[(ii)  orientation and mobility;
	[(iii)  social interaction skills;
	[(iv)  career planning;
	[(v)  assistive technology, including
	optical devices;
	[(vi)  independent living skills;
	[(vii)  recreation and leisure enjoyment;
	[(viii)  self-determination; and
	[(ix)  sensory efficiency];
	(5)  provide for flexibility on the part of school
	districts to meet the unique [special] needs of children who have
	visual impairments, are deaf or hard of hearing, or are deaf-blind
	[with visual impairments] through:
	(A)  specialty staff and resources provided by the
	district;
	(B)  contractual arrangements with other
	qualified public or private agencies;
	(C)  supportive assistance from regional
	education service centers or adjacent school districts;
	(D)  short-term or long-term services through the
	Texas School for the Blind and Visually Impaired, the Texas School
	for the Deaf, regional day school programs for the deaf, or related
	facilities or programs; or
	(E)  other instructional and service arrangements
	approved by the agency;
	(6)  [include a statewide admission, review, and
	dismissal process;
	[(7)]  provide for effective interaction between the
	[visually impaired child's] classroom setting of the child who has
	a visual impairment, is deaf or hard of hearing, or is deaf-blind
	and the child's home environment, including providing for parental
	training and counseling either by school district staff or by
	representatives of other organizations directly involved in the
	development and implementation of the individualized education
	program for the child;
	(7)  describe recommended and required professional
	development activities based on the special education and related
	services provided by school district staff to children who have
	visual impairments, are deaf or hard of hearing, or are deaf-blind
	[(8)  require the continuing education and professional
	development of school district staff providing special education
	services to children with visual impairments];
	(8) [(9)]  provide for adequate monitoring and precise
	evaluation of special education services provided to children who
	have visual impairments, are deaf or hard of hearing, or are
	deaf-blind [with visual impairments] through school districts;
	[and]
	(9) [(10)]  require that school districts providing
	special education services to children who have visual impairments,
	are deaf or hard of hearing, or are deaf-blind [with visual
	impairments] develop procedures for assuring that staff assigned to
	work with the children have prompt and effective access directly to
	resources available through:
	(A)  cooperating agencies in the area;
	(B)  the Texas School for the Blind and Visually
	Impaired;
	(C)  the Texas School for the Deaf;
	(D)  the statewide outreach center at the Texas
	School for the Deaf;
	(E)  the Central Media Depository for specialized
	instructional materials and aids made specifically for use by
	students with visual impairments;
	(F) [(D)]  sheltered workshops participating in
	the state program of purchases of blind-made goods and services;
	and
	(G) [(E)]  related sources; and
	(10)  assist in the coordination of educational
	programs with other public and private agencies, including:
	(A)  agencies operating early childhood
	intervention programs;
	(B)  preschools;
	(C)  agencies operating child development
	programs;
	(D)  private nonsectarian schools;
	(E)  agencies operating regional occupational
	centers and programs; and
	(F)  as appropriate, postsecondary and adult
	programs for persons who are deaf or hard of hearing.
	(e)  Each eligible [blind or visually impaired] student who
	has a visual impairment, is deaf or hard of hearing, or is
	deaf-blind is entitled to receive educational programs according to
	an individualized education program that:
	(1)  is developed in accordance with federal and state
	requirements for providing special education services;
	(2)  is developed by a committee composed as required
	by federal law;
	(3)  reflects that the student has been provided a
	detailed explanation of the various service resources available to
	the student in the community and throughout the state;
	(4)  provides a detailed description of the
	arrangements made to provide the student with the evaluation and
	instruction required under this subchapter and Subchapter A,
	Chapter 29 [Subsection (c)(4)]; and
	(5)  sets forth the plans and arrangements made for
	contacts with and continuing services to the student beyond regular
	school hours to ensure the student learns the skills and receives
	the instruction required under this subchapter and Subchapter A,
	Chapter 29 [Subsection (c)(4)(B)].
	SECTION 3.44.  Subchapter A, Chapter 30, Education Code, is
	amended by adding Section 30.0021 to read as follows:
	Sec. 30.0021.  REQUIREMENTS FOR CHILDREN WITH VISUAL
	IMPAIRMENTS. (a) Each child with a visual impairment must receive
	instruction in an expanded core curriculum required for children
	with visual impairments to succeed in classroom settings and to
	derive lasting, practical benefits from education in a school
	district, including instruction in:
	(1)  compensatory skills, such as braille and concept
	development, and other skills necessary to access the rest of the
	curriculum;
	(2)  orientation and mobility;
	(3)  social interaction skills;
	(4)  career education;
	(5)  assistive technology, including optical devices;
	(6)  independent living skills;
	(7)  recreation and leisure enjoyment;
	(8)  self-determination; and
	(9)  sensory efficiency.
	(b)  To determine a child's eligibility for a school
	district's special education program under Subchapter A, Chapter
	29, on the basis of a visual impairment, the full individual and
	initial evaluation of the child under Section 29.004 and any
	reevaluation of the child must, in accordance with commissioner
	rule:
	(1)  include an orientation and mobility evaluation
	conducted:
	(A)  by a person who is appropriately certified as
	an orientation and mobility specialist, as determined by
	commissioner rule; and
	(B)  in a variety of lighting conditions and
	settings, including in the child's home, school, and community and
	in settings unfamiliar to the child; and
	(2)  provide for a person who is appropriately
	certified as an orientation and mobility specialist, as determined
	by commissioner rule, to participate, as part of a
	multidisciplinary team, in evaluating the data on which the
	determination of the child's eligibility is based.
	(c)  In developing an individualized education program under
	Section 29.005 for a child with a visual impairment, proficiency in
	reading and writing must be a significant indicator of the child's
	satisfactory educational progress.  The individualized education
	program must include instruction in braille and the use of braille
	unless the child's admission, review, and dismissal committee
	documents a determination, based on an evaluation of the child's
	appropriate literacy media and literacy skills and the child's
	current and future instructional needs, that braille is not an
	appropriate literacy medium for the child.
	(d)  Braille instruction:
	(1)  may be used in combination with other special
	education services appropriate to the educational needs of a child
	with a visual impairment; and
	(2)  must be provided by a teacher certified to teach
	children with visual impairments under Subchapter B, Chapter 21.
	(e)  A school district shall provide to each person assisting
	in the development of an individualized education program for a
	child with a visual impairment information describing the benefits
	of braille instruction.
	(f)  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.  The supplemental allowance may be spent
	only for special education services uniquely required by the nature
	of the child's disabilities and may not be used in lieu of
	educational funds otherwise available under this code or through
	state or local appropriations.
	SECTION 3.45.  Section 30.003, Education Code, is amended by
	amending Subsections (b), (d), (f-1), and (g) 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)  The commissioner shall reduce the amount of
	maintenance taxes imposed by the district that are obligated to be
	paid under Subsection (b) 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.
	(d)  Each school district and state institution shall
	provide to the commissioner the necessary information to determine
	the district's share under this section.  The information must be
	reported to the commissioner on or before a date set by commissioner
	rule [of the State Board of Education].  After determining the
	amount of a district's share for all students for which the district
	is responsible, the commissioner shall deduct that amount from the
	payments of foundation school funds payable to the district.  Each
	deduction shall be in the same percentage of the total amount of the
	district's share as the percentage of the total foundation school
	fund entitlement being paid to the district at the time of the
	deduction, except that the amount of any deduction may be modified
	to make necessary adjustments or to correct errors.  The
	commissioner shall provide for remitting the amount deducted to the
	appropriate school at the same time at which the remaining funds are
	distributed to the district.  If a district does not receive
	foundation school funds or if a district's foundation school
	entitlement is less than the amount of the district's share under
	this section, the commissioner shall direct the district to remit
	payment to the commissioner, and the commissioner shall remit the
	district's share to the appropriate school.
	(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.
	(g)  The commissioner [State Board of Education] may adopt
	rules as necessary to implement this section.
	SECTION 3.46.  Section 30.004(b), Education Code, is amended
	to read as follows:
	(b)  The commissioner [State Board of Education] shall adopt
	rules prescribing the form and content of information required by
	Subsection (a).
	SECTION 3.47.  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; and
	(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 3.48.  Section 30.021(e), Education Code, is amended
	to read as follows:
	(e)  The school shall cooperate with public and private
	agencies and organizations serving students and other persons with
	visual impairments in the planning, development, and
	implementation of effective educational and rehabilitative service
	delivery systems associated with educating students with visual
	impairments.  To maximize and make efficient use of state
	facilities, funding, and resources, the services provided in this
	area may include conducting a cooperative program with other
	agencies to serve students who have graduated from high school by
	completing all academic requirements applicable to students in
	general [regular] education, excluding satisfactory performance
	under Section 39.025, who are younger than 22 years of age on
	September 1 of the school year and who have identified needs related
	to vocational training, independent living skills, orientation and
	mobility, social and leisure skills, compensatory skills, or
	remedial academic skills.
	SECTION 3.49.  Section 30.081, Education Code, is amended to
	read as follows:
	Sec. 30.081.  LEGISLATIVE INTENT CONCERNING REGIONAL DAY
	SCHOOLS FOR THE DEAF.  The legislature, by this subchapter, intends
	to continue a process of providing on a statewide basis a suitable
	education to deaf or hard of hearing students who are under 22 [21]
	years of age and assuring that those students have the opportunity
	to become independent citizens.
	SECTION 3.50.  Section 30.083, Education Code, is amended to
	read as follows:
	Sec. 30.083.  STATEWIDE PLAN.  [(a)]  The director of
	services shall develop and administer a comprehensive statewide
	plan for educational services for students who are deaf or hard of
	hearing and receive special education and related services through
	a regional day school program for the deaf[, including continuing
	diagnosis and evaluation, counseling, and teaching].  The plan
	shall be included as part of the comprehensive state plan under
	Section 30.002 [designed to accomplish the following objectives:
	[(1)  providing assistance and counseling to parents of
	students who are deaf or hard of hearing in regional day school
	programs for the deaf and admitting to the programs students who
	have a hearing loss that interferes with the processing of
	linguistic information;
	[(2)  enabling students who are deaf or hard of hearing
	to reside with their parents or guardians and be provided an
	appropriate education in their home school districts or in regional
	day school programs for the deaf;
	[(3)  enabling students who are deaf or hard of hearing
	who are unable to attend schools at their place of residence and
	whose parents or guardians live too far from facilities of regional
	day school programs for the deaf for daily commuting to be
	accommodated in foster homes or other residential school facilities
	provided for by the agency so that those children may attend a
	regional day school program for the deaf;
	[(4)  enrolling in the Texas School for the Deaf those
	students who are deaf or hard of hearing whose needs can best be met
	in that school and designating the Texas School for the Deaf as the
	statewide educational resource for students who are deaf or hard of
	hearing;
	[(5)  encouraging students in regional day school
	programs for the deaf to attend general education classes on a
	part-time, full-time, or trial basis; and
	[(6)  recognizing the need for development of language
	and communications abilities in students who are deaf or hard of
	hearing, but also calling for the use of methods of communication
	that will meet the needs of each individual student, with each
	student assessed thoroughly so as to ascertain the student's
	potential for communications through a variety of means, including
	through oral or aural means, fingerspelling, or sign language].
	[(b)  The director of services may establish separate
	programs to accommodate diverse communication methodologies.]
	SECTION 3.51.  Section 37.146(a), Education Code, 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 3.52.  Section 38.003(c-1), Education Code, is
	amended to read as follows:
	(c-1)  The agency by rule shall develop procedures designed
	to allow the agency to:
	(1)  effectively audit and monitor and periodically
	conduct site visits of all school districts to ensure that
	districts are complying with this section, including the program
	approved by the State Board of Education under this section;
	(2)  identify any problems school districts experience
	in complying with this section, including the program approved by
	the State Board of Education under this section;
	(3)  develop reasonable and appropriate remedial
	strategies to address school district noncompliance and ensure the
	purposes of this section are accomplished, which may include the
	publication of a recommended evidence-based dyslexia program list;
	[and]
	(4)  solicit input from parents of students enrolled in
	a school district during the auditing and monitoring of the
	district under Subdivision (1) regarding the district's
	implementation of the program approved by the State Board of
	Education under this section; and
	(5)  engage in general supervision activities,
	including activities under the comprehensive system for monitoring
	described by Section 29.010, to ensure school district compliance
	with the program approved by the State Board of Education under this
	section and Part B, Individuals with Disabilities Education Act (20
	U.S.C. Section 1411 et seq.).
	SECTION 3.53.  Section 48.009(b), Education Code, is amended
	to read as follows:
	(b)  The commissioner by rule shall require each school
	district and open-enrollment charter school to report through the
	Public Education Information Management System information
	regarding:
	(1)  the number of students enrolled in the district or
	school who are identified as having dyslexia;
	(2)  the availability of school counselors, including
	the number of full-time equivalent school counselors, at each
	campus;
	(3)  the availability of expanded learning
	opportunities as described by Section 33.252 at each campus;
	(4)  the total number of students, other than students
	described by Subdivision (5), enrolled in the district or school
	with whom the district or school, as applicable, used intervention
	strategies, as that term is defined by Section 26.004, at any time
	during the year for which the report is made;
	(5)  the total number of students enrolled in the
	district or school to whom the district or school provided aids,
	accommodations, or services under Section 504, Rehabilitation Act
	of 1973 (29 U.S.C. Section 794), at any time during the year for
	which the report is made;
	(6)  disaggregated by campus and grade, the number of:
	(A)  children who are required to attend school
	under Section 25.085, are not exempted under Section 25.086, and
	fail to attend school without excuse for 10 or more days or parts of
	days within a six-month period in the same school year;
	(B)  students for whom the district initiates a
	truancy prevention measure under Section 25.0915(a-4); and
	(C)  parents of students against whom an
	attendance officer or other appropriate school official has filed a
	complaint under Section 25.093; [and]
	(7)  the number of students who are enrolled in a high
	school equivalency program, a dropout recovery school, or an adult
	education program provided under a high school diploma and industry
	certification charter school program provided by the district or
	school and who:
	(A)  are at least 18 years of age and under 26
	years of age;
	(B)  have not previously been reported to the
	agency as dropouts; and
	(C)  enroll in the program at the district or
	school after not attending school for a period of at least nine
	months; and
	(8)  students enrolled in a special education program
	under Subchapter A, Chapter 29, as necessary for the agency to
	adequately perform general supervision activities and determine
	funding under Sections 48.102 and 48.1021.
	SECTION 3.54.  Subchapter A, Chapter 48, Education Code, is
	amended by adding Section 48.011 to read as follows:
	Sec. 48.011.  COMMISSIONER AUTHORITY TO RESOLVE UNINTENDED
	CONSEQUENCES. (a)  Subject to Subsection (b), the commissioner
	may, as necessary to implement changes made by the legislature to
	public school finance and school district maintenance and
	operations tax rates during the preceding four state fiscal years:
	(1)  adjust a school district's entitlement under this
	chapter if the funding formulas used to determine the district's
	entitlement result in an unanticipated loss, gain, or other result
	for a school district; and
	(2)  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 tax rate.
	(b)  Before making an adjustment under Subsection (a), the
	commissioner shall notify and must receive approval from the
	Legislative Budget Board and the office of the governor.
	(c)  If the commissioner makes an adjustment under
	Subsection (a), the commissioner must provide to the legislature an
	explanation regarding the changes necessary to resolve the
	unintended consequences.
	SECTION 3.55.  Section 48.102, Education Code, is amended to
	read as follows:
	Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in
	average daily attendance in a special education program under
	Subchapter A, Chapter 29, [in a mainstream instructional
	arrangement,] a school district is entitled to an annual allotment
	equal to the 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].
	(a-1)  Notwithstanding Subsection (a), for the 2025-2026 and
	2026-2027 school years, the amount of an allotment under this
	section shall be determined in accordance with Section 48.1022.
	This subsection expires September 1, 2027.  [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]
	(b)  The commissioner by rule shall define eight 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 and one tier for students receiving only
	speech therapy  [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)  In defining the tiers of intensity of service under
	Subsection (b), the commissioner shall consider:
	(1)  the type, frequency, and nature of services
	provided to a student;
	(2)  the required certifications, licensures, or other
	qualifications for personnel serving the student;
	(3)  any identified or curriculum-required
	provider-to-student ratios for the student to receive the
	appropriate services; and
	(4)  any equipment or technology required for the
	services [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 placement of special education
	students.  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 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 3.56.  Subchapter C, Chapter 48, Education Code, is
	amended by adding Sections 48.1021 and 48.1022 to read as follows:
	Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
	(a)  For each student in a special education program under
	Subchapter A, Chapter 29, 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
	receives services.
	(a-1)  Notwithstanding Subsection (a), for the 2025-2026 and
	2026-2027 school years, the amount of an allotment under this
	section shall be determined in accordance with Section 48.1022.
	This subsection expires September 1, 2027.
	(b)  The commissioner by rule shall establish at least four
	service groups for use in determining funding under this section.
	In establishing the groups, the commissioner must consider:
	(1)  the type, frequency, and nature of services
	provided to a student;
	(2)  the required certifications, licensures, or other
	qualifications for personnel serving the student;
	(3)  any identified or curriculum-required
	provider-to-student ratios for the student to receive the
	appropriate services; and
	(4)  any equipment or technology required for the
	services.
	(c)  At least 55 percent of the funds allocated under this
	section must be used for a special education program under
	Subchapter A, Chapter 29.
	(d)  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. 48.1022.  SPECIAL EDUCATION TRANSITION FUNDING.
	(a)  For the 2025-2026 and 2026-2027 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 2025-2026 and 2026-2027 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 shall ensure the
	estimated statewide increase from the allotment under Section
	48.102 for the 2024-2025 school year to the sum of the allotments
	under Sections 48.102 and 48.1021 for the 2025-2026 school year is
	approximately $800 million.
	(c)  Each school district and open-enrollment charter school
	shall report to the agency information necessary to implement this
	section.
	(d)  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.
	(e)  This section expires September 1, 2028.
	SECTION 3.57.  Sections 48.103(b), (c), and (d), Education
	Code, are amended to read as follows:
	(b)  A school district is entitled to an allotment under
	Subsection (a) only for a student who:
	(1)  is receiving:
	(A)  instruction, services, or accommodations for
	dyslexia or a related disorder in accordance with[:
	[(A)]  an individualized education program
	developed for the student under Section 29.005; or
	(B)  accommodations for dyslexia or a related
	disorder in accordance with a plan developed for the student under
	Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794); or
	(2)  [is receiving instruction that:
	[(A)  meets applicable dyslexia program criteria
	established by the State Board of Education; and
	[(B)  is provided by a person with specific
	training in providing that instruction; or
	[(3)]  is permitted, on the basis of having dyslexia or
	a related disorder, to use modifications in the classroom or
	accommodations in the administration of assessment instruments
	under Section 39.023 without a program or plan described by
	Subdivision (1).
	(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].
	(d)  A school district may use [an amount not to exceed 20
	percent of] the allotment provided for a qualifying student under
	this section to contract with a private provider to provide
	supplemental academic services to the student that are recommended
	under the student's program or plan described by Subsection (b).  A
	student may not be excused from school to receive supplemental
	academic services provided under this subsection.
	SECTION 3.58.  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 3.59.  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 per mile equal to the sum of the
	rate per mile set under Subsection (c) and $0.13, 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 3.60.  Subchapter D, Chapter 48, Education Code, is
	amended by adding Section 48.158 to read as follows:
	Sec. 48.158.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
	EVALUATION. For each child 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 $1,000 or a greater amount provided by appropriation.
	SECTION 3.61.  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 3.62.  Section 48.279(e), Education Code, is amended
	to read as follows:
	(e)  After the commissioner has replaced any withheld
	federal funds as provided by Subsection (d), the commissioner shall
	distribute the remaining amount, if any, of funds described by
	Subsection (a) to proportionately increase funding for the special
	education allotment under Section 48.102 and the special education
	service group allotment under Section 48.1021.
	SECTION 3.63.  Subchapter G, Chapter 48, Education Code, is
	amended by adding Sections 48.304, 48.306, and 48.315 to read as
	follows:
	Sec. 48.304.  DAY PLACEMENT PROGRAM OR COOPERATIVE FUNDING.
	(a) For each qualifying day placement program or cooperative that a
	regional education service center, school district, or
	open-enrollment charter school establishes, the program or
	cooperative is entitled to an allotment of:
	(1)  $250,000 for the first year of the program's or
	cooperative's operation; and
	(2)  the sum of:
	(A)  $100,000 for each year of the program's or
	cooperative's operation after the first year; and
	(B)  $150,000 if at least three students are
	enrolled in the program or cooperative for a year described by
	Paragraph (A).
	(b)  A day placement program or cooperative qualifies for
	purposes of Subsection (a) if:
	(1)  the program or cooperative complies with
	commissioner rules adopted for purposes of this section under
	Section 48.004;
	(2)  the program or cooperative offers services to
	students who are enrolled at any school district or open-enrollment
	charter school in the county in which the program or cooperative is
	offered, unless the commissioner by rule waives or modifies the
	requirement under this subdivision for the program or cooperative
	to serve all students in a county; and
	(3)  the agency has designated the program or
	cooperative for service in the county in which the program or
	cooperative is offered and determined that, at the time of
	designation, the program or cooperative increases the availability
	of day placement services in the county.
	(c)  The agency may not designate more than one day placement
	program or cooperative for service per county each year.
	(d)  The agency may designate a regional education service
	center to implement and administer this section.
	(e)  Notwithstanding any other provision of this section,
	the agency may not provide an allotment under this section to more
	than 20 day placement programs or cooperatives for a year.
	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 regional education service center designated to
	administer the program under Subchapter A-1, Chapter 29, for a
	school year is entitled to an amount equal to four percent of each
	grant awarded under that subchapter for that school year.
	(e)  Notwithstanding Section 7.057, a determination of the
	commissioner under this section is final and may not be appealed.
	Sec. 48.315.  FUNDING FOR REGIONAL DAY SCHOOL PROGRAMS FOR
	THE DEAF. (a)  The program administrator or fiscal agent of a
	regional day school program for the deaf is entitled to receive for
	each school year an allotment of $6,925, or a greater amount
	provided by appropriation, for each student receiving services from
	the program.
	(b)  Notwithstanding Subsection (a), the agency shall adjust
	the amount of an allotment under that subsection for a school year
	to ensure the total amount of allotments provided under that
	subsection is at least $35 million for that school year.
	SECTION 3.64.  The following provisions of the Education
	Code are repealed:
	(1)  Section 7.055(b)(24);
	(2)  Sections 7.102(c)(18), (19), (20), (21), and (22);
	(3)  Section 29.002;
	(4)  Section 29.0041(c);
	(5)  Section 29.005(f);
	(6)  Section 29.0161;
	(7)  Section 29.018(c);
	(8)  Sections 29.308, 29.309, 29.311, 30.001, and
	30.0015;
	(9)  Sections 30.002(c-1), (c-2), (f), (f-1), and (g);
	(10)  Section 30.084;
	(11)  Section 30.087(b); and
	(12)  Section 38.003(d).
	SECTION 3.65.  The commissioner of education shall award a
	grant under Subchapter A-1, Chapter 29, Education Code, as amended
	by this Act, for the 2025-2026 school year to each eligible
	applicant who applied but was not accepted for the 2024-2025 school
	year.
	ARTICLE 4. TRANSITION AND EFFECTIVE DATE
	SECTION 4.01.  (a)  Except as otherwise provided by this Act
	and by Subsection (b) of this section, the changes made by this Act
	to Chapters 7, 8, 12A, 21, 25, 28, 29, 30, 37, and 38, Education
	Code, apply beginning with the 2025-2026 school year.
	(b)  Section 21.0032, Education Code, as added by this Act,
	and Sections 21.3521 and 29.008, Education Code, as amended by this
	Act, apply beginning with the 2026-2027 school year.
	SECTION 4.02.  (a)  Except as otherwise provided by this Act
	and as provided by Subsections (b) and (c) of this section, this Act
	takes effect September 1, 2025.
	(b)  The changes made by this Act to Chapters 7, 8, 12A, 21,
	25, 28, 29, 30, 37, and 38, Education Code, and Section 48.283,
	Education Code, take 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, those changes
	take effect September 1, 2025.
	(c)  The changes made by this Act to Sections 48.104, 48.105,
	and 48.112, Education Code, take effect September 1, 2026.