Bill Text: TX HB21 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the funding of primary and secondary education.

Spectrum: Slight Partisan Bill (Republican 16-8)

Status: (Engrossed - Dead) 2017-05-27 - Senate appoints conferees-reported [HB21 Detail]

Download: Texas-2017-HB21-Comm_Sub.html

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85R19558 MEW-F
By: Huberty, Zerwas, Turner, H.B. No. 21
King of Hemphill, Dutton, et al.
Substitute the following for H.B. No. 21:
By: Huberty C.S.H.B. No. 21

A BILL TO BE ENTITLED
AN ACT
relating to the public school finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.158(a), Education Code, is amended to
read as follows:
(a) The board of trustees of an independent school district
may require payment of:
(1) a fee for materials used in any program in which
the resultant product in excess of minimum requirements becomes, at
the student's option, the personal property of the student, if the
fee does not exceed the cost of materials;
(2) membership dues in student organizations or clubs
and admission fees or charges for attending extracurricular
activities, if membership or attendance is voluntary;
(3) a security deposit for the return of materials,
supplies, or equipment;
(4) a fee for personal physical education and athletic
equipment and apparel, although any student may provide the
student's own equipment or apparel if it meets reasonable
requirements and standards relating to health and safety
established by the board;
(5) a fee for items of personal use or products that a
student may purchase at the student's option, such as student
publications, class rings, annuals, and graduation announcements;
(6) a fee specifically permitted by any other statute;
(7) a fee for an authorized voluntary student health
and accident benefit plan;
(8) a reasonable fee, not to exceed the actual annual
maintenance cost, for the use of musical instruments and uniforms
owned or rented by the district;
(9) a fee for items of personal apparel that become the
property of the student and that are used in extracurricular
activities;
(10) a parking fee or a fee for an identification card;
(11) a fee for a driver training course, not to exceed
the actual district cost per student in the program for the current
school year;
(12) a fee for a course offered for credit that
requires the use of facilities not available on the school premises
or the employment of an educator who is not part of the school's
regular staff, if participation in the course is at the student's
option;
(13) a fee for a course offered during summer school,
except that the board may charge a fee for a course required for
graduation only if the course is also offered without a fee during
the regular school year;
(14) a reasonable fee for transportation of a student
who lives within two miles of the school the student attends to and
from that school[, except that the board may not charge a fee for
transportation for which the school district receives funds under
Section 42.155(d)]; or
(15) a reasonable fee, not to exceed $50, for costs
associated with an educational program offered outside of regular
school hours through which a student who was absent from class
receives instruction voluntarily for the purpose of making up the
missed instruction and meeting the level of attendance required
under Section 25.092[; or
[(16) if the district does not receive any funds under
Section 42.155 and does not participate in a county transportation
system for which an allotment is provided under Section 42.155(i),
a reasonable fee for the transportation of a student to and from the
school the student attends].
SECTION 2. Section 29.153(c), Education Code, is amended to
read as follows:
(c) A prekindergarten class under this section shall be
operated on a half-day basis. A district is not required to provide
transportation for a prekindergarten class[, but transportation,
if provided, is included for funding purposes as part of the regular
transportation system].
SECTION 3. Sections 29.918(a) and (b), Education Code, are
amended to read as follows:
(a) Notwithstanding Section [39.234 or] 42.152, a school
district or open-enrollment charter school with a high dropout
rate, as determined by the commissioner, must submit a plan to the
commissioner describing the manner in which the district or charter
school intends to use the compensatory education allotment under
Section 42.152 [and the high school allotment under Section 42.160]
for developing and implementing research-based strategies for
dropout prevention. The district or charter school shall submit
the plan not later than December 1 of each school year preceding the
school year in which the district or charter school will receive the
compensatory education allotment [or high school allotment] to
which the plan applies.
(b) A school district or open-enrollment charter school to
which this section applies may not spend or obligate more than 25
percent of the district's or charter school's compensatory
education allotment [or high school allotment] unless the
commissioner approves the plan submitted under Subsection
(a). The commissioner shall complete an initial review of the
district's or charter school's plan not later than March 1 of the
school year preceding the school year in which the district or
charter school will receive the compensatory education allotment
[or high school allotment] to which the plan applies.
SECTION 4. Subchapter C, Chapter 30, Education Code, is
amended by adding Section 30.0561 to read as follows:
Sec. 30.0561. TRANSPORTATION ALLOTMENT. The Texas School
for the Deaf is entitled to a transportation allotment paid from the
foundation school fund. The commissioner shall determine the
appropriate allotment.
SECTION 5. Section 30.087(c), Education Code, is amended to
read as follows:
(c) A school district may receive an allotment paid from the
foundation school fund for transportation of students
participating in a regional day school program, as determined by
the commissioner [in the same manner as an allotment for the
transportation of other special education students].
SECTION 6. Section 34.007, Education Code, is amended by
adding Subsection (c) to read as follows:
(c) A county transportation system is not entitled to
receive funding for transportation costs directly from the state.
Funding for a county transportation system is provided by each
school district participating in the county transportation system
in accordance with the terms of the interlocal contract under
Chapter 791, Government Code, under which the county provides
transportation services for the participating districts.
SECTION 7. Section 39.0233(a), Education Code, is amended
to read as follows:
(a) The agency, in coordination with the Texas Higher
Education Coordinating Board, shall adopt a series of questions to
be included in an end-of-course assessment instrument administered
under Section 39.023(c) to be used for purposes of Section 51.3062.
The questions adopted under this subsection must be developed in a
manner consistent with any college readiness standards adopted
under Section [Sections 39.233 and] 51.3062.
SECTION 8. Section 41.099(a), Education Code, is amended to
read as follows:
(a) Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
only to a district that:
(1) executes an agreement to purchase all attendance
credits necessary to reduce the district's wealth per student to
the equalized wealth level;
(2) executes an agreement to purchase attendance
credits and an agreement under Subchapter E to contract for the
education of nonresident students who transfer to and are educated
in the district but who are not charged tuition; or
(3) executes an agreement under Subchapter E to
contract for the education of nonresident students:
(A) to an extent that does not provide more than
10 percent of the reduction in wealth per student required for the
district to achieve a wealth per student that is equal to or less
than the equalized wealth level; and
(B) under which all revenue paid by the district
to other districts, in excess of the reduction in state aid that
results from counting the weighted average daily attendance of the
students served in the contracting district, is required to be used
for funding a consortium of at least three districts in a county
with a population of less than 40,000 that is formed to support a
technology initiative.
SECTION 9. Section 41.257, Education Code, is amended to
read as follows:
Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
[AND TRANSPORTATION ALLOTMENT]. The budget of the consolidated
district must apply the benefit of the adjustment or allotment to
the schools of the consolidating district to which Section 42.103
or[,] 42.105[, or 42.155] would have applied in the event that the
consolidated district still qualifies as a small or sparse
district.
SECTION 10. Section 42.006(a-1), Education Code, is amended
to read as follows:
(a-1) The commissioner by rule shall require each school
district and open-enrollment charter school to report through the
Public Education Information Management System information
regarding the number of students enrolled in the district or school
who are identified as having dyslexia or related disorders. The
agency shall maintain the information provided in accordance with
this subsection.
SECTION 11. Section 42.101(a), Education Code, is amended
to read as follows:
(a) For each student in average daily attendance, not
including the time students spend each day in special education
programs in an instructional arrangement other than mainstream
settings, [or] career and technology education programs, or
technology applications courses approved for high school credit,
for which an additional allotment is made under Subchapter C, a
district is entitled to an allotment equal to the lesser of $4,765
or the amount that results from the following formula:
A = $4,765 X (DCR/MCR)
where:
"A" is the allotment to which a district is entitled;
"DCR" is the district's compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
"MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
SECTION 12. Section 42.151(h), Education Code, is amended
to read as follows:
(h) Funds allocated under this section, other than an
indirect cost allotment established under State Board of Education
rule or amounts made available for the transportation of special
education students, must be used in the special education program
under Subchapter A, Chapter 29.
SECTION 13. Section 42.153(a), Education Code, is amended
to read as follows:
(a) For each student in average daily attendance in a
bilingual education or special language program under Subchapter B,
Chapter 29, a district is entitled to an annual allotment equal to
the adjusted basic allotment multiplied by 0.11 [0.1].
SECTION 14. The heading to Section 42.154, Education Code,
is amended to read as follows:
Sec. 42.154. CAREER AND TECHNOLOGY EDUCATION AND TECHNOLOGY
APPLICATIONS ALLOTMENT.
SECTION 15. Sections 42.154(a), (b), (c), and (e),
Education Code, are amended to read as follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades eight [nine] through 12, in a technology applications
course approved for high school credit, or in career and technology
education programs for students with disabilities in grades seven
through 12, a district is entitled to:
(1) an annual allotment equal to the adjusted basic
allotment multiplied by a weight of 1.35; and
(2) $50, if the student is enrolled in:
(A) two or more advanced career and technology
education classes for a total of three or more credits; or
(B) an advanced course as part of a tech-prep
program under Subchapter T, Chapter 61.
(b) In this section, "full-time equivalent student" means
30 hours of contact a week between a student and career and
technology education program or technology applications personnel.
(c) Funds allocated under this section, other than an
indirect cost allotment established under State Board of Education
rule or amounts made available for the transportation of career and
technology education students, must be used in providing career and
technology education programs in grades eight [nine] through 12,
technology applications courses approved for high school credit, or
career and technology education programs for students with
disabilities in grades seven through 12 under Sections 29.182,
29.183, and 29.184.
(e) Out of the total statewide allotment [for career and
technology education] under this section, the commissioner shall
set aside an amount specified in the General Appropriations Act,
which may not exceed an amount equal to one percent of the total
amount appropriated, to support regional career and technology
education planning. After deducting the amount set aside under
this subsection from the total amount appropriated for career and
technology education and technology applications under this
section, the commissioner shall reduce each district's tier one
allotments in the same manner described for a reduction in
allotments under Section 42.253.
SECTION 16. Section 42.1541(a), Education Code, is amended
to read as follows:
(a) For the 2017-2018 and subsequent school years, the [The]
State Board of Education shall by rule revise [increase] the
indirect cost allotments established under Sections 42.151(h),
42.152(c), 42.153(b), and 42.154(c) [42.154(a-1) and (c)] and in
effect for the 2016-2017 [2010-2011] school year to reflect any
increase in the percentage of total maintenance and operations
funding represented by the basic allotment [in proportion to the
average percentage reduction in total state and local maintenance
and operations revenue provided under this chapter for the
2011-2012 school year] as a result of [S.B. Nos. 1 and 2,] Acts of
the 85th [82nd] Legislature, Regular [1st Called] Session, 2017
[2011].
SECTION 17. Subchapter C, Chapter 42, Education Code, is
amended by adding Section 42.1561 to read as follows:
Sec. 42.1561. ALLOTMENT FOR STUDENT WITH DYSLEXIA OR
RELATED DISORDER. (a) Subject to Subsection (b), for each student
that a school district serves who has been identified as having
dyslexia or a related disorder, the district is entitled to an
annual allotment equal to the district's adjusted basic allotment
as determined under Section 42.102 or Section 42.103, as
applicable, multiplied by 0.1 for each school year or a greater
amount provided by appropriation.
(b) A school district is entitled to the allotment under
Subsection (a) only for a student who:
(1) is receiving instruction that:
(A) meets applicable dyslexia program criteria
established by the agency; and
(B) is provided by a person with specific
training in providing that instruction; or
(2) has received the instruction described by
Subdivision (1) and is permitted, on the basis of having dyslexia or
a related disorder, to use modifications in the classroom and
accommodations in the administration of assessment instruments
under Section 39.023.
(c) Funds allotted under this section must be used in
providing services to students with dyslexia or related disorders.
(d) A school district may receive funding for a student
under this section and Section 42.151 if the student satisfies the
requirements of both sections.
(e) Not more than five percent of a district's students in
average daily attendance are eligible for funding under this
section.
SECTION 18. Section 42.2518(a), Education Code, as
effective September 1, 2017, is amended to read as follows:
(a) Beginning with the 2017-2018 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 41 is less
than the state and local revenue that would have been available to
the district under Chapter 41 and this chapter as those chapters
existed on September 1, 2015, excluding any state aid or adjustment
in wealth per student that would have been provided under former
Section 41.002(e)-(g), 42.155, 42.160, 42.2513, or 42.2516, if the
increase in the residence homestead exemption under Section 1-b(c),
Article VIII, Texas Constitution, and the additional limitation on
tax increases under Section 1-b(d) of that article as proposed by
S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
occurred.
SECTION 19. Sections 42.259(c), (d), and (f), Education
Code, are amended to read as follows:
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(f) Except as provided by Subsection (c)(8) or (d)(3),
previously [Previously] unpaid additional funds from prior fiscal
years owed to a district shall be paid to the district together with
the September payment of the current fiscal year entitlement.
SECTION 20. Sections 42.2591(c) and (e), Education Code,
are amended to read as follows:
(c) Payments from the foundation school fund to an
open-enrollment charter school under this section shall be made as
follows:
(1) 22 percent of the yearly entitlement of the school
shall be paid in an installment to be made on or before the 25th day
of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the school
shall be paid in an installment to be made on or before the 25th day
of October;
(3) 9.5 percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of November;
(4) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of December;
(5) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of January;
(6) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of February;
(7) four percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of March;
(8) 7.5 percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of April;
(9) five percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of May;
(10) seven percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of June;
(11) seven percent of the yearly entitlement of the
school shall be paid in an installment to be made on or before the
25th day of July; and
(12) eight percent of the yearly entitlement of the
school shall be paid in an installment to be made after the 5th day
of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(e) Except as provided by Subsection (c)(12), previously
[Previously] unpaid additional funds from prior fiscal years owed
to an open-enrollment charter school shall be paid to the school
together with the September payment of the current fiscal year
entitlement.
SECTION 21. Section 42.302(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount
of state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
[to the district for transportation, any allotment] under Section
42.158 [or 42.160,] and 50 percent of the adjustment under Section
42.102, by the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
SECTION 22. Chapter 42, Education Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts
appropriated for this subchapter, the commissioner may administer a
grant program that provides grants to school districts to defray
financial hardships resulting from changes made to Chapter 41 and
this chapter that apply after the 2016-2017 school year.
(b) The commissioner shall award grants under this
subchapter to districts as provided by Section 42.452.
(c) Funding provided to a district under this subchapter is
in addition to all other funding provided under Chapter 41 and this
chapter.
(d) The commissioner may obtain additional information as
needed from a district or other state or local agency to make
determinations in awarding grants under this subchapter.
Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The commissioner
shall award grants to school districts based on the following
formula:
HG = (PL-CL) X (TR) X (TAHG/TEHG)
where:
"HG" is the amount of a district's hardship grant;
"PL" is the amount of funding under previous law to which a
district would be entitled under Chapter 41 and this chapter as
those chapters existed on January 1, 2017, determined using current
school year data for the district;
"CL" is the amount of current law funding under Chapter 41 and
this chapter to which a district is entitled;
"TR" is a district's maintenance and operations tax rate, as
specified by the comptroller's most recent certified report;
"TAHG" is the total funding available for grants under
Section 42.455 for a school year; and
"TEHG" is the sum of the combined amounts for all districts
calculated by applying the formula (PL-CL) X (TR) for each
district.
(b) A school district's hardship grant awarded under this
subchapter for a school year may not exceed the lesser of:
(1) the amount equal to 10 percent of the total amount
of funds available for grants under this subchapter for that school
year; or
(2) the amount by which "PL" exceeds "CL" for that
district for that school year.
(c) For purposes of calculating the formula under
Subsection (a), the commissioner shall:
(1) if the value of (PL-CL) for a school district
results in a negative number, use zero for the value of (PL-CL);
(2) use a maintenance and operations tax rate ("TR")
of $1 for each open-enrollment charter school, each special-purpose
school district established under Subchapter H, Chapter 11, and the
South Texas Independent School District; and
(3) if (TAHG/TEHG) equals a value greater than one,
use a value of one for (TAHG/TEHG).
(d) If funds remain available under this subchapter for a
school year after determining initial grant amounts under
Subsection (a), as adjusted to reflect the limits imposed by
Subsection (b), the commissioner shall reapply the formula as
necessary to award all available funds.
Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
SCHOOL. An open-enrollment charter school is eligible for a grant
under this subchapter in the same manner as a school district.
Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
service center or a county department of education is not eligible
for a grant under this subchapter.
Sec. 42.455. FUNDING LIMIT. The amount of grants awarded by
the commissioner under this subchapter may not exceed $125 million,
or a greater amount provided by appropriation, for the 2017-2018
school year or $75 million, or a greater amount provided by
appropriation, for the 2018-2019 school year.
Sec. 42.456. NO ADJUSTMENT BASED ON REVISED DATA. The
commissioner may not adjust the amount of a school district's grant
under this subchapter based on revisions to the district's data
received after a grant has been awarded.
Sec. 42.457. RULES. The commissioner may adopt rules as
necessary to administer this subchapter.
Sec. 42.458. DETERMINATION FINAL. A determination by the
commissioner under this subchapter is final and may not be
appealed.
Sec. 42.459. EXPIRATION. This subchapter expires September
1, 2019.
SECTION 23. Section 466.355(c), Government Code, as
repealed by Chapter 431 (S.B. 559), Acts of the 83rd Legislature,
Regular Session, 2013, and amended by Chapter 1410 (S.B. 758), Acts
of the 83rd Legislature, Regular Session, 2013, is reenacted and
amended to read as follows:
(c) The [Each August the] comptroller shall:
(1) estimate the amount to be transferred to the
foundation school fund on or before September 15; and
(2) notwithstanding Subsection (b)(4), transfer the
amount estimated in Subdivision (1) to the foundation school fund
before [August] installment payments are made under Section
42.259(c)(8) or (d)(3) [42.259], Education Code.
SECTION 24. The following provisions of the Education Code
are repealed:
(1) Section 29.097(g);
(2) Section 29.098(e);
(3) Section 34.002(c);
(4) Section 39.233;
(5) Section 39.234;
(6) Sections 41.002(e), (f), and (g);
(7) Section 42.1541(c);
(8) Section 42.155;
(9) Section 42.160; and
(10) Section 42.2513.
SECTION 25. The changes made by this Act to Sections 42.259
and 42.2591, Education Code, apply only to a payment from the
foundation school fund that is made on or after September 1, 2018.
A payment to a school district from the foundation school fund that
is made before that date is governed by Sections 42.259 and 42.2591,
Education Code, as those sections existed before amendment by this
Act, and the former law is continued in effect for that purpose.
SECTION 26. This Act takes effect September 1, 2017.