By: Huberty, et al.	H.B. No. 21
	(Senate Sponsor - Taylor of Galveston)
	(In the Senate - Received from the House April 24, 2017;
	May 9, 2017, read first time and referred to Committee on
	Education; May 16, 2017, reported adversely, with favorable
	Committee Substitute by the following vote:  Yeas 8, Nays 2,
	1 present not voting; May 16, 2017, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR H.B. No. 21	By:  Taylor of Galveston

	A BILL TO BE ENTITLED
	AN ACT
	relating to the funding of primary and secondary education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 7.055(b), Education Code, is amended by
	adding Subdivision (42) to read as follows:
	(42)  The commissioner may accept a gift, donation, or
	other contribution on behalf of the public school system or agency
	and, unless otherwise specified by the donor, may use the
	contribution for the benefit of the public school system or agency
	in the manner the commissioner determines appropriate.
	SECTION 2.  Section 7.062(c), Education Code, is amended to
	read as follows:
	(c)  Except as otherwise provided by this subsection, if the
	commissioner certifies that the amount appropriated for a state
	fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
	the amount to which school districts are entitled under those
	subchapters for that year, the commissioner shall use the excess
	funds, in an amount not to exceed $20 million in any state fiscal
	year, for the purpose of making grants under this section. The use
	of excess funds under this subsection has priority over any
	provision of Chapter 42 that permits or directs the use of excess
	foundation school program funds, including Sections [42.2517,]
	42.2521, 42.2522, and 42.2531. The commissioner is required to use
	excess funds as provided by this subsection only if the
	commissioner is not required to reduce the total amount of state
	funds allocated to school districts under Section 42.253(h).
	SECTION 3.  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 4.  Effective September 1, 2018, Section
	12.106(a-1), Education Code, is amended to read as follows:
	(a-1)  In determining funding for an open-enrollment charter
	school under Subsection (a):
	(1)  [,] adjustments under Sections 42.102, [42.103,]
	42.104, and 42.105 are based on the average adjustment for the
	state; and
	(2)  the adjustment under Section 42.103 is based on
	the average adjustment for the state that would have been provided
	under that section as it existed on January 1, 2018.
	SECTION 5.  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 6.  Subchapter F, Chapter 29, Education Code, is
	amended by adding Section 29.194 to read as follows:
	Sec. 29.194.  STUDY ON CAREER AND TECHNOLOGY EDUCATION
	COURSES.  (a) The commissioner shall conduct a study regarding:
	(1)  providing career and technology education courses
	during the summer, including:
	(A)  the feasibility of providing those courses;
	(B)  the potential demand for those courses;
	(C)  any funding considerations associated with
	providing those courses; and
	(D)  any other matter the commissioner determines
	appropriate; and
	(2)  the feasibility of extending career and technology
	education programs to students enrolled below the eighth grade
	level and providing funding for those programs.
	(b)  Not later than December 1, 2018, the commissioner shall
	submit to the governor and the members of the legislature a report
	on the results of the study and any recommendations for legislative
	or other action.
	(c)  The provisions of this section apply only if the
	commissioner receives sufficient money to pay for the study and
	report from gifts, donations, or other contributions that may be
	used for that purpose.
	(d)  This section expires September 1, 2019.
	SECTION 7.  Chapter 29, Education Code, is amended by adding
	Subchapter J to read as follows:
	SUBCHAPTER J.  EDUCATION SAVINGS ACCOUNT PROGRAM
	Sec. 29.351.  DEFINITIONS. In this subchapter:
	(1)  "Account" means an education savings account
	established under the program.
	(2)  "Child with a disability" means a child who is:
	(A)  eligible to participate in a school
	district's special education program under Section 29.003; or
	(B)  covered by Section 504, Rehabilitation Act of
	1973 (29 U.S.C. Section 794).
	(3)  "Curriculum" means a complete course of study for
	a particular content area or grade level.
	(4)  "Financial institution" means a bank, credit
	union, savings bank, or savings and loan association organized
	under the laws of this state, the laws of another state, or federal
	law that has its main office or a branch office in this state. The
	term does not include any institution the deposits of which are not
	insured by the Federal Deposit Insurance Corporation or the
	National Credit Union Administration.
	(5)  "Institution of higher education" and "private or
	independent institution of higher education" have the meanings
	assigned by Section 61.003.
	(6)  "Parent" means a resident of this state who is a
	natural or adoptive parent, managing or possessory conservator,
	legal guardian, custodian, or other person with legal authority to
	act on behalf of a child.
	(7)  "Program" means the education savings account
	program established under this subchapter.
	(8)  "Program participant" means a child and a parent
	of a child enrolled in the program.
	Sec. 29.352.  PURPOSES.  The purposes of the education
	savings account program are to:
	(1)  improve public schools and overall academic
	performance;
	(2)  promote efficiency;
	(3)  promote and preserve the liberties and rights of
	the people; and
	(4)  increase parental options.
	Sec. 29.353.  ESTABLISHMENT OF PROGRAM. (a)  The
	comptroller shall establish and administer an education savings
	account program to provide funding for certain education-related
	expenses of eligible children.
	(b)  The comptroller, with cooperation from the agency,
	shall ensure that information about the program is readily
	available to the public through various sources, including the
	comptroller's and the agency's respective Internet websites. The
	information made available through the comptroller's Internet
	website must include a notice that:
	(1)  states that a private school is not subject to laws
	regarding the provision of educational services in the same manner
	as a public school, and a child with a disability attending a
	private school may not receive the services a child with a
	disability attending a public school is entitled to receive under
	federal and state law; and
	(2)  provides information regarding rights to which a
	child with a disability is entitled under federal and state law if
	the child attends a public school, including:
	(A)  rights provided under the Individuals with
	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
	including:
	(i)  an individualized education program;
	(ii)  educational services provided in the
	least restrictive environment;
	(iii)  instruction from certified teachers;
	(iv)  due process hearings to ensure proper
	and full implementation of an individualized education program;
	(v)  transition and planning services; and
	(vi)  supplementary aids and services;
	(B)  rights provided under Subchapter A; and
	(C)  other rights provided under federal or state
	law.
	Sec. 29.3531.  EDUCATION SAVINGS ACCOUNT PROGRAM FUND.
	(a)  The education savings account program fund is an account in
	the general revenue fund to be administered by the comptroller.
	(b)  The fund is composed of:
	(1)  general revenue transferred to the fund;
	(2)  money appropriated to the fund;
	(3)  gifts, grants, and donations received under
	Section 29.371; and
	(4)  any other money available for purposes of the
	program.
	(c)  Money in the fund may be appropriated only to the
	comptroller for purposes of making payments to program participants
	and administering the program under this subchapter.
	Sec. 29.354.  ELIGIBLE CHILD. (a)  A child is eligible to
	participate in the program if the child:
	(1)  is a child with a disability;
	(2)  is eligible to attend a public school under
	Section 25.001; and
	(3)  was enrolled in a public school in this state
	during the entire preceding academic year.
	(b)  A child who establishes eligibility under this section
	may participate in the program until the earliest of the following
	dates:
	(1)  the date that is three months after the date on
	which the child graduates from high school;
	(2)  the date on which the child is no longer eligible
	to attend a public school under Section 25.001;
	(3)  the date on which the child enrolls in a public
	school, including an open-enrollment charter school; or
	(4)  the date on which the child is declared ineligible
	for the program by the comptroller under this subchapter.
	(c)  Notwithstanding Subsection (b), the comptroller shall
	establish guidelines for, in the least disruptive manner possible:
	(1)  a child participating in the program to cease
	participation and enroll in a public school, including an
	open-enrollment charter school; and
	(2)  a child who previously participated in the program
	and subsequently enrolled in a public school, including an
	open-enrollment charter school, to resume participation in the
	program.
	Sec. 29.355.  ENROLLMENT IN PROGRAM. (a)  A parent of an
	eligible child may enroll the child in the program for the following
	school year.
	(b)  The comptroller shall by rule create an enrollment form
	for the program and make the enrollment form readily available to
	interested parents through various sources, including the
	comptroller's Internet website. An enrollment form for the program
	must be submitted to the comptroller electronically.
	(c)  The comptroller shall post on the comptroller's
	Internet website and provide to each parent who submits an
	enrollment form a publication that describes the operation of the
	program, including:
	(1)  expenses allowed under the program under Section
	29.357;
	(2)  expense reporting requirements; and
	(3)  a description of the responsibilities of program
	participants and the duties of the comptroller under this
	subchapter.
	(d)  The comptroller shall provide to each parent who submits
	an enrollment form a written copy of the notice described by Section
	29.353(b).  Before the parent may receive funding under the
	program, the parent must sign and return the notice to the
	comptroller.
	Sec. 29.356.  PARTICIPATION IN PROGRAM. (a)  To receive
	funding under the program, a parent of an eligible child must agree
	to:
	(1)  spend funds received through the program only for
	expenses allowed under Section 29.357;
	(2)  notify the comptroller if the child enrolls in a
	public school, including an open-enrollment charter school, not
	later than the 30th day after the date of enrollment; and
	(3)  inform the comptroller if the child graduates from
	high school.
	(b)  The parent of a child participating in the program is
	the trustee of the child's account.
	(c)  The comptroller shall provide annually to each program
	participant the publication provided under Section 29.355(c).
	Sec. 29.357.  APPROVED EDUCATION-RELATED EXPENSES.
	(a)  Funds received under the program may be used only for the
	following expenses incurred by a program participant:
	(1)  tuition and fees:
	(A)  at a private school accredited by an
	organization that is recognized by the Texas Private School
	Accreditation Commission;
	(B)  at an institution of higher education or a
	private or independent institution of higher education; or
	(C)  for an online educational course or program;
	(2)  the purchase of textbooks or other instructional
	materials required by a school, institution, course, or program
	described by Subdivision (1) in which the child is enrolled;
	(3)  fees for classes or other educational services
	provided by a public school, if the classes or services do not
	qualify the child to be included in the school's average daily
	attendance;
	(4)  fees for services provided by a private tutor or
	teaching service;
	(5)  costs of transportation to and from school, not to
	exceed $500 per year;
	(6)  fees for educational therapies or services
	provided by a practitioner or provider;
	(7)  costs of computer hardware and software and other
	technological devices prescribed by a physician to facilitate a
	child's education, not to exceed in any year 10 percent of the total
	amount paid to the program participant's account that year;
	(8)  fees for a nationally norm-referenced achievement
	test or examination, an assessment instrument adopted by the agency
	under Section 39.023, an advanced placement test or similar
	examination, or any examination related to college or university
	admission;
	(9)  fees for the management of the participant's
	account charged by a financial institution; and
	(10)  costs of breakfast or lunch provided to a child
	during the school day by a private school.
	(b)  Expenses allowed under Subsection (a) do not include
	expenses for:
	(1)  consumable supplies, including paper, pens,
	pencils, folders, and notebooks;
	(2)  food, other than breakfast or lunch as authorized
	under Subsection (a)(10); or
	(3)  before-school or after-school child care and child
	care during school holidays and vacations.
	(c)  An education service provider or vendor of educational
	products must provide a program participant with a receipt for each
	expense allowed under Subsection (a) charged by the provider or
	vendor to the participant.
	(d)  The content, subject to Section 29.364(c), or religious
	nature of a product or service may not be considered in determining
	whether a payment for the product or service is an expense allowed
	under Subsection (a).
	(e)  A finding that a program participant used funds
	distributed under the program to pay for an expense not allowed
	under Subsection (a) does not affect the validity of any payment
	made by the participant for an expense that is allowed under that
	subsection.
	Sec. 29.358.  AMOUNT OF PAYMENT; FINANCING. (a)  A parent
	of an eligible child shall receive each year that the child
	participates in the program a payment from the state to the child's
	account in an amount that is equal to 90 percent of the state
	average maintenance and operations expenditures per student for the
	preceding state fiscal year.
	(b)  In addition to any funding the district receives under
	Chapter 42, for each child participating in the program, the school
	district the child would otherwise attend is entitled to receive
	for the first year in which the child participates in the program an
	amount equal to five percent of the state average maintenance and
	operations expenditures per student for the preceding state fiscal
	year.
	(c)  For the first year a child participates in the program,
	the child is included in the weighted average daily attendance of
	the school district the child would otherwise attend for purposes
	of determining the district's equalized wealth level under Chapter
	41.
	(d)  Any funds remaining in a child's account at the end of a
	fiscal year are carried forward to the next fiscal year unless
	another provision of this subchapter mandates the closure of the
	account.
	(e)  The parent of a child participating in the program may
	make payments for the expenses of educational programs, services,
	and products not covered by funds in the child's account.
	(f)  A payment under Subsection (a) may not be financed using
	federal funds or money appropriated from the permanent school fund
	or the available school fund.
	Sec. 29.359.  ADMINISTRATION OF ACCOUNTS. (a)  The
	comptroller may contract with one or more financial institutions to
	establish and manage an account for each child participating in the
	program. A program participant must be able to access the
	participant's account by using an online or electronic transfer
	payment service.
	(b)  The comptroller shall make quarterly payments to each
	program participant's account in equal amounts, with the first
	payment for each school year made on September 1 and the remaining
	payments made on or before the 15th day of November, February, and
	May.
	(c)  The comptroller may deduct an amount from each quarterly
	payment to a program participant's account to cover the
	comptroller's cost of administering the program. The amount
	deducted may not exceed five percent of the payment.
	(d)  Not later than 30 days after the end of each fiscal year,
	the comptroller shall reconcile payments made to and from all
	accounts under the program.
	(e)  On the date on which a child who participated in the
	program is no longer eligible to participate in the program under
	Section 29.354(b), the child's account is closed and any remaining
	funds are returned to the state for deposit in the education savings
	account program fund.
	(f)  The comptroller may contract with a private entity to
	administer all or any part of the program.
	Sec. 29.360.  RANDOM AUDITING OF ACCOUNTS. (a)  The
	comptroller shall contract with a private entity to randomly audit
	accounts as necessary to ensure compliance with applicable law and
	the requirements of the program.
	(b)  In auditing an account, the comptroller or private
	entity may require that a program participant provide further
	information and documentation regarding any payment from the
	participant's account.
	(c)  The private entity shall report to the comptroller any
	violation of this subchapter or other relevant law found by the
	entity during an audit conducted under this section.
	Sec. 29.361.  SUSPENSION OF ACCOUNT. (a)  The comptroller
	shall suspend the account of a program participant who fails to
	comply with applicable law or a requirement of the program,
	including a requirement under Section 29.356(a), or who
	substantially misuses funds received under the program.
	(b)  On suspension of an account under Subsection (a), the
	comptroller shall notify the program participant in writing that
	the account has been suspended and that no further payments may be
	made from the account. The notification must specify the grounds
	for the suspension and state that the participant has 10 business
	days to respond and take any corrective action required by the
	comptroller.
	(c)  On the expiration of the 10-day period under Subsection
	(b), the comptroller shall:
	(1)  order permanent closure of the suspended account
	and declare the program participant ineligible for the program;
	(2)  order temporary reinstatement of the account,
	conditioned on the performance of a specified action by the
	participant; or
	(3)  order full reinstatement of the account.
	(d)  The comptroller may recover funds distributed under the
	program that were used for expenses not allowed under Section
	29.357(a) from the program participant or the entity that received
	the funds if the participant's account is suspended or closed under
	this section.
	Sec. 29.362.  TUITION AND FEES; REFUND PROHIBITED. (a)  An
	education service provider may not charge a child participating in
	the program an amount greater than the standard amount charged for
	that service by the provider.
	(b)  An education service provider or a vendor of educational
	products receiving funds distributed under the program may not in
	any manner rebate, refund, or credit to or share with a program
	participant, or any person on behalf of a participant, any program
	funds paid or owed by the participant to the provider or vendor.
	Sec. 29.363.  REFERRAL TO ATTORNEY GENERAL. (a)  If the
	comptroller obtains evidence of fraudulent use of an account, the
	comptroller may refer the case to the attorney general for
	investigation.
	(b)  With the consent of the appropriate local county or
	district attorney, the attorney general has concurrent
	jurisdiction with the consenting local prosecutor to prosecute an
	offense referred to the attorney general under Subsection (a).
	Sec. 29.364.  PROVIDER ACCOUNTABILITY. (a)  To receive
	funds distributed under the program, a private school must be
	accredited by an organization that is recognized by the Texas
	Private School Accreditation Commission.
	(b)  A practitioner or provider who provides educational
	therapies or services must be licensed or accredited by a regional
	or national accrediting organization to receive funds distributed
	under the program.
	(c)  A private tutor, teaching service, or online
	educational course or program provider must apply to and be
	approved by the commissioner to receive funds distributed under the
	program.
	(d)  To be eligible for approval under Subsection (c), a
	private tutor or each employee of a teaching service who intends to
	provide educational services to a program participant must:
	(1)  be a teacher who:
	(A)  is certified under Subchapter B, Chapter 21;
	(B)  holds a National Board Certification issued
	by the National Board for Professional Teaching Standards; or
	(C)  has experience teaching at an institution of
	higher education or private or independent institution of higher
	education; and
	(2)  either:
	(A)  complete a national criminal history record
	information review; or
	(B)  provide to the commissioner documentation
	indicating that the tutor or employee, as applicable, has completed
	a national criminal history record information review within a
	period established by commissioner rule.
	(e)  The commissioner shall review the national criminal
	history record information or documentation for each private tutor
	or teaching service who submits an application under Subsection
	(c).  The tutor or teaching service must provide the commissioner
	with any information requested by the commissioner to enable the
	commissioner to complete the review.
	(f)  The commissioner shall maintain and provide to the
	comptroller a list of private tutors, teaching services, and online
	educational courses or program providers approved to receive funds
	distributed under the program.  The comptroller shall post the list
	on the comptroller's Internet website.
	(g)  A private tutor, teaching service, or online
	educational course or program provider may appeal to the
	comptroller the commissioner's rejection of an application
	submitted under Subsection (c).
	(h)  The commissioner may adopt rules necessary to exercise
	the commissioner's powers and duties under this section.
	Sec. 29.365.  PROGRAM PARTICIPANT, PROVIDER, AND VENDOR
	AUTONOMY. (a)  An education service provider or vendor of
	educational products that receives funds distributed under the
	program is not an agent of the state or federal government.
	(b)  Except as provided by this subchapter, the comptroller,
	the commissioner, the agency, the State Board of Education, any
	other state agency, or any school district may not:
	(1)  regulate the educational program of an education
	service provider or vendor of educational products that receives
	funds distributed under the program; or
	(2)  exercise control or supervision over a program
	participant or an education service provider or vendor of
	educational products that receives funds distributed under the
	program.
	(c)  The program does not expand the regulatory authority of
	the state or any school district to impose any additional
	regulation on an education service provider or vendor of
	educational products except those reasonably necessary to enforce
	the program as provided by this subchapter.
	(d)  A private school may not be required to modify the
	school's creed, practices, admissions policies, curriculum,
	performance standards, or assessments to receive funds distributed
	under the program.
	(e)  A private school voluntarily selected by a parent for
	the parent's child to attend, with or without governmental
	assistance, may not be required to comply with any state law or rule
	governing the applicable educational program that was not in effect
	on January 1, 2017.
	(f)  In any proceeding challenging a rule adopted by a state
	agency or officer under this subchapter, the agency or officer has
	the burden of proof to establish that the rule:
	(1)  is necessary to implement or enforce the program
	as provided by this subchapter; and
	(2)  does not impose an undue burden on a program
	participant or an education service provider or vendor of
	educational products that receives or seeks to receive funds
	distributed under the program.
	Sec. 29.366.  STUDENT RECORDS AND INFORMATION. (a)  On
	request by the parent of a child participating in the program, the
	school district or open-enrollment charter school that the child
	would otherwise attend shall provide a copy of the child's school
	records possessed by the district or school, if any, to the child's
	parent or, if applicable, the private school the child attends.
	(b)  The agency shall provide to the comptroller any
	information available to the agency requested by the comptroller
	regarding a child who participates or seeks to participate in the
	program. The comptroller may not retain information provided under
	this subsection beyond the period necessary to determine:
	(1)  a child's eligibility to participate in the
	program; or
	(2)  the amount of a payment to a program participant's
	account under Section 29.358.
	Sec. 29.367.  REPORTING NUMBER OF PARTICIPANTS. (a)  Not
	later than October 1 of each year, the comptroller shall notify the
	commissioner and the Legislative Budget Board of the number of
	eligible children likely to participate in the program,
	disaggregated by the school district or open-enrollment charter
	school the eligible children would otherwise attend.
	(b)  Not later than March 1 of each year, the comptroller
	shall provide final information to the commissioner and the
	Legislative Budget Board regarding the number of children
	participating in the program, disaggregated in the same manner as
	the initial information under Subsection (a).
	Sec. 29.368.  ANNUAL SURVEY. The comptroller may conduct an
	annual parental satisfaction survey that asks each parent of a
	child participating in the program to express:
	(1)  the parent's overall level of satisfaction with
	the program; and
	(2)  the parent's opinion on specified topics and
	issues relevant to the effectiveness of the program.
	Sec. 29.369.  PARENT REVIEW COMMITTEE. (a)  A parent review
	committee is established to assist the comptroller, at the
	comptroller's request, in:
	(1)  determining whether certain expenses are allowed
	under Section 29.357; and
	(2)  reviewing an appeal of the commissioner's decision
	to reject an application of a private tutor, teaching service, or
	online educational course or program provider for approval under
	Section 29.364 to receive funds distributed under the program.
	(b)  The committee consists of the comptroller, or a
	representative designated by the comptroller, and eight members
	appointed by the comptroller.  Each appointed member must be a
	parent of a child participating in the program.  In making
	appointments to the committee, the comptroller shall ensure that
	parents from at least four counties are included.
	(c)  An appointed member of the committee serves a one-year
	term at the pleasure of the comptroller and may be reappointed.
	(d)  The comptroller or the representative designated by the
	comptroller, as applicable, is the chair of the committee and may
	vote on a matter before the committee only if there is a tie.
	Sec. 29.370.  RULES. The comptroller shall:
	(1)  adopt rules as necessary to implement this
	subchapter, including:
	(A)  rules regarding expense reporting
	requirements for program participants; and
	(B)  rules for implementing this subchapter in a
	manner that ensures compliance with federal law regarding
	confidentiality of student educational information, including the
	Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
	Section 1232g); and
	(2)  coordinate as necessary to:
	(A)  calculate annually the savings to the state
	from the implementation of the program; and
	(B)  prevent fraud in financial transactions
	under the program, including by adopting measures to permit
	anonymous fraud reporting by telephone hotline or online
	communication.
	Sec. 29.371.  GIFTS, GRANTS, AND DONATIONS. The comptroller
	may solicit and accept gifts, grants, and donations from any public
	or private source for any expenses related to the administration of
	the program, including the initial implementation of the program.
	Sec. 29.372.  DYSLEXIA ALLOTMENT SET-ASIDE. (a) Each year,
	for each child participating in the program, the agency shall set
	aside a percentage of the state average maintenance and operations
	expenditures per student for the preceding state fiscal year in an
	amount equal to:
	(1)  for the first year the child participates in the
	program, five percent; and
	(2)  in each subsequent year the child participates in
	the program, 10 percent.
	(b)  The amounts set aside under Subsection (a) may be used
	only for purposes of funding the special allotment for students
	with dyslexia or a related disorder under Section 42.1561.
	SECTION 8.  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 9.  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 10.  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 11.  Section 34.002(c), Education Code, is amended
	to read as follows:
	(c)  The commissioner shall reduce the basic allotment
	provided under Section 42.101 for each student in average daily
	attendance by $125 for a [A] school district that fails or refuses
	to meet the safety standards for school buses established under
	this section [is ineligible to share in the transportation
	allotment under Section 42.155] until the first anniversary of the
	date the district begins complying with the safety standards.
	SECTION 12.  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 13.  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 14.  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 15.  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 16.  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 17.  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 $5,140
	[$4,765] or the amount that results from the following formula:
	A = $5,140 [$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 18.  Section 42.102, Education Code, is amended by
	adding Subsection (c) to read as follows:
	(c)  Based on a statistical analysis conducted by the
	Legislative Budget Board to determine for each school district the
	current geographic variation in known resource costs and costs of
	education due to factors beyond the control of the district, the
	commissioner shall update the cost of education index used for
	purposes of this section during the 2016-2017 school year.  The
	commissioner periodically may request more current statistical
	analysis from the Legislative Budget Board and further update as
	needed the cost of education index.
	SECTION 19.  Effective September 1, 2023, Sections 42.103(b)
	and (d), Education Code, are amended to read as follows:
	(b)  The basic allotment of a school district that [contains
	at least 300 square miles and] has not more than 1,600 students in
	average daily attendance is adjusted by applying the formula:
	AA = (1 + ((1,600 - ADA) X .0004)) X ABA
	(d)  The basic allotment of a school district that offers a
	kindergarten through grade 12 program and has less than 5,000
	students in average daily attendance is adjusted by applying the
	formula, of the following formulas, that results in the greatest
	adjusted allotment:
	(1)  the formula in Subsection (b), if [or (c) for
	which] the district is eligible for that formula; or
	(2)  AA = (1 + ((5,000 - ADA) X .000025)) X ABA.
	SECTION 20.  Effective September 1, 2018, Section 42.103(c),
	Education Code, is amended to read as follows:
	(c)  The basic allotment of a school district that contains
	less than 300 square miles and has not more than 1,600 students in
	average daily attendance is adjusted by applying the following
	formulas [formula]:
	(1)  for the fiscal year beginning September 1, 2018:
	AA = (1 + ((1,600 - ADA) X .000275 [.00025])) X ABA
	;
	(2)  for the fiscal year beginning September 1, 2019:
	AA = (1 + ((1,600 - ADA) X .00030)) X ABA
	;
	(3)  for the fiscal year beginning September 1, 2020:
	AA = (1 + ((1,600 - ADA) X .000325)) X ABA
	;
	(4)  for the fiscal year beginning September 1, 2021:
	AA = (1 + ((1,600 - ADA) X .00035)) X ABA
	; and
	(5)  for the fiscal year beginning September 1, 2022:
	AA = (1 + ((1,600 - ADA) X .000375)) X ABA
	SECTION 21.  Subchapter B, Chapter 42, Education Code, is
	amended by adding Section 42.1041 to read as follows:
	Sec. 42.1041.  INELIGIBILITY FOR SMALL OR MID-SIZED DISTRICT
	ADJUSTMENT OR SPARSITY ADJUSTMENT.  (a)  This section applies only
	to a school district that:
	(1)  borders the Red River; and
	(2)  has a student enrollment of less than 90, with more
	than 50 percent of the enrollment consisting of students who have
	transferred from another school district.
	(b)  Notwithstanding Section 42.103, 42.104, or 42.105, a
	school district to which this section applies is ineligible for an
	adjustment under Section 42.103 or 42.105 for any school year
	during which the district:
	(1)  issues bonds for the construction of a new
	instructional facility on property more than five miles from a
	property that before the issuance of the bonds was owned by the
	district and was the location of an instructional facility for the
	previous five years; or
	(2)  makes payments on bonds described by Subdivision
	(1).
	SECTION 22.  Subchapter B, Chapter 42, Education Code, is
	amended by adding Section 42.107 to read as follows:
	Sec. 42.107.  SPECIAL-PURPOSE SCHOOL DISTRICTS OPERATED BY
	GENERAL ACADEMIC TEACHING INSTITUTIONS.  (a)  In each fiscal year of
	the biennium, the commissioner shall allocate funding from the
	foundation school program to each special-purpose school district
	established under Section 11.351 that is operated by a general
	academic teaching institution as defined by Section 61.003, in an
	amount equivalent to the basic allotment in Section 42.101(a)
	multiplied by the number of full-time equivalent students who are
	enrolled in the school district and who reside in this state.
	(b)  In allocating funding to special-purpose school
	districts under this section, the commissioner shall use a payment
	schedule consistent with the payment schedule adopted for
	open-enrollment charter schools.
	(c)  A special-purpose school district that receives state
	funding for a resident student under this section may not charge
	tuition or fees to that student for the academic term for which
	state funding is received, other than fees permitted under Section
	11.158.
	(d)  A special-purpose school district may elect not to
	receive state funding under this section.
	SECTION 23.  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 24.  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 25.  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 26.  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 27.  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 28.  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 29.  Sections 42.158(b), (d-1), and (g), Education
	Code, are amended to read as follows:
	(b)  For the first school year in which students attend a new
	instructional facility, a school district is entitled to an
	allotment of $1,000 [$250] for each student in average daily
	attendance at the facility. For the second school year in which
	students attend that instructional facility, a school district is
	entitled to an allotment of $1,000 [$250] for each additional
	student in average daily attendance at the facility.
	(d-1)  In addition to the appropriation amount described by
	Subsection (d), the amount of $1 million may be appropriated each
	school year to supplement the allotment to which a school district
	is entitled under this section that may be provided using the
	appropriation amount described by Subsection (d). The commissioner
	shall first apply the funds appropriated under this subsection to
	prevent any reduction under Subsection (d) in the allotment for
	attendance at an eligible high school instructional facility,
	subject to the maximum amount of $1,000 [$250] for each student in
	average daily attendance. Any funds remaining after preventing all
	reductions in amounts due for high school instructional facilities
	may be applied proportionally to all other eligible instructional
	facilities, subject to the maximum amount of $1,000 [$250] for each
	student in average daily attendance.
	(g)  In this section:
	(1)  "Instructional[, "instructional] facility" has
	the meaning assigned by Section 46.001.
	(2)  "New instructional facility" includes:
	(A)  a newly constructed instructional facility;
	(B)  a repurposed instructional facility; and
	(C)  a leased facility operating for the first
	time as an instructional facility with a minimum lease term of not
	less than 10 years.
	SECTION 30.  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 31.  Section 42.253, Education Code, is amended by
	adding Subsection (b-1) to read as follows:
	(b-1)  Notwithstanding Subsection (b), the commissioner
	shall adjust enrollment estimates and entitlement for each school
	district for each school year based on information provided by the
	comptroller under Section 29.367. This subsection expires
	September 1, 2021.
	SECTION 32.  Subchapter E, Chapter 42, Education Code, is
	amended by adding Section 42.2541 to read as follows:
	Sec. 42.2541.  ESTIMATED PROJECTIONS. (a)  In this section,
	"equivalent equalized wealth level" means an equalized wealth level
	for a state fiscal biennium that results in approximately the same
	number of school districts that are required to take action under
	Chapter 41 to reduce wealth as the number of school districts that
	were required to take that action during the preceding state fiscal
	biennium.
	(b)  Not later than November 1 of each even-numbered year,
	the agency shall:
	(1)  submit to the legislature a projection for an
	equivalent equalized wealth level for the following biennium based
	on the agency's estimate of:
	(A)  student enrollment under Section
	42.254(a)(1);
	(B)  the comptroller's estimate of any increase in
	total taxable value of all property in the state under Section
	42.254(a)(2);
	(C)  the number of school districts offering a
	local optional residence homestead exemption under Section
	11.13(n), Tax Code;
	(D)  the number of school districts adopting a tax
	rate below the maximum tier one tax rate determined under Section
	42.252;
	(E)  the projected amount of maintenance and
	operations tax revenue per student in weighted average daily
	attendance of the Austin Independent School District; and
	(F)  the number of school districts adopting a
	maintenance and operations tax rate of $1.17; and
	(2)  provide projections for the equalized funding
	elements under Section 42.007 for the following biennium as
	necessary to achieve the equivalent equalized wealth level
	projected under Subdivision (1).
	SECTION 33.  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 34.  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)  Except as provided by Subsection (d), funding provided
	to a district under this subchapter is in addition to all other
	funding provided under Chapter 41 and this chapter.
	(d)  A district is not eligible for funding under this
	subchapter for a school year if the district receives for that
	school year an adjustment of the district's taxable value of
	property under Section 42.2521. A district may decline an
	adjustment under Section 42.2521 to maintain eligibility for
	funding under this subchapter.
	(e)  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 42.456 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)  if a school district's maintenance and operations
	tax rate ("TR") is greater than $1, use $1 for the value of "TR";
	(3)  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
	(4)  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.  CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. A
	school district is not eligible for a grant under this subchapter if
	for the 2015-2016 school year the district's expenditures per
	student in average daily attendance, excluding bond debt service
	payments, capital outlays, and facilities acquisition and
	construction costs, exceeded an amount that is equal to 110 percent
	of the state average amount for that school year of expenditures per
	student in average daily attendance, excluding bond debt service
	payments, capital outlays, and facilities acquisition and
	construction costs, as those amounts are determined by the
	commissioner.
	Sec. 42.456.  FUNDING LIMIT. The amount of grants awarded by
	the commissioner under this subchapter may not exceed $125 million
	for the 2017-2018 school year or $34 million for the 2018-2019
	school year.
	Sec. 42.457.  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. 42.458.  RULES. The commissioner may adopt rules as
	necessary to administer this subchapter.
	Sec. 42.459.  DETERMINATION FINAL. A determination by the
	commissioner under this subchapter is final and may not be
	appealed.
	Sec. 42.460.  EXPIRATION. This subchapter expires September
	1, 2019.
	SECTION 35.  Section 411.0901, Government Code, is amended
	by adding Subsection (a-1) to read as follows:
	(a-1)  The Texas Education Agency is entitled to obtain
	criminal history record information maintained by the department
	about a person who is a private tutor or an employee of a teaching
	service who intends to provide educational services to a child
	participating in the program established under Subchapter J,
	Chapter 29, Education Code, and is seeking approval to receive
	funds distributed under that program.
	SECTION 36.  (a)  Effective September 1, 2017, the following
	provisions of the Education Code are repealed:
	(1)  Section 29.097(g);
	(2)  Section 29.098(e);
	(3)  Section 39.233;
	(4)  Section 39.234;
	(5)  Sections 41.002(e), (f), and (g);
	(6)  Section 42.1541(c);
	(7)  Section 42.155;
	(8)  Section 42.160;
	(9)  Section 42.2513; and
	(10)  Section 42.2517.
	(b)  Effective September 1, 2023, Section 42.103(c),
	Education Code, is repealed.
	SECTION 37.  (a)  The constitutionality and other validity
	under the state or federal constitution of all or any part of
	Subchapter J, Chapter 29, Education Code, as added by this Act, may
	be determined in an action for declaratory judgment in a district
	court in Travis County under Chapter 37, Civil Practice and
	Remedies Code, except that this section does not authorize an award
	of attorney's fees against this state and Section 37.009, Civil
	Practice and Remedies Code, does not apply to an action filed under
	this section.
	(b)  An appeal of a declaratory judgment or order, however
	characterized, of a district court, including an appeal of the
	judgment of an appellate court, holding or otherwise determining
	that all or any part of Subchapter J, Chapter 29, Education Code, as
	added by this Act, is constitutional or unconstitutional, or
	otherwise valid or invalid, under the state or federal constitution
	is an accelerated appeal.
	(c)  If the judgment or order is interlocutory, an
	interlocutory appeal may be taken from the judgment or order and is
	an accelerated appeal.
	(d)  A district court in Travis County may grant or deny a
	temporary or otherwise interlocutory injunction or a permanent
	injunction on the grounds of the constitutionality or
	unconstitutionality, or other validity or invalidity, under the
	state or federal constitution of all or any part of Subchapter J,
	Chapter 29, Education Code, as added by this Act.
	(e)  There is a direct appeal to the Texas Supreme Court from
	an order, however characterized, of a trial court granting or
	denying a temporary or otherwise interlocutory injunction or a
	permanent injunction on the grounds of the constitutionality or
	unconstitutionality, or other validity or invalidity, under the
	state or federal constitution of all or any part of Subchapter J,
	Chapter 29, Education Code, as added by this Act.
	(f)  The direct appeal is an accelerated appeal.
	(g)  This section exercises the authority granted by Section
	3-b, Article V, Texas Constitution.
	(h)  The filing of a direct appeal under this section will
	automatically stay any temporary or otherwise interlocutory
	injunction or permanent injunction granted in accordance with this
	section pending final determination by the Texas Supreme Court,
	unless the supreme court makes specific findings that the applicant
	seeking such injunctive relief has pleaded and proved that:
	(1)  the applicant has a probable right to the relief it
	seeks on final hearing; and
	(2)  the applicant will suffer a probable injury that
	is imminent and irreparable, and that the applicant has no other
	adequate legal remedy.
	(i)  An appeal under this section, including an
	interlocutory, accelerated, or direct appeal, is governed, as
	applicable, by the Texas Rules of Appellate Procedure, including
	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
	38.6(a) and (b), 40.1(b), and 49.4.
	SECTION 38.  A school district that is entitled under
	Section 42.158, Education Code, to receive funding in the 2017-2018
	school year for the second year of student attendance at a new
	instructional facility is entitled for that year to the amount
	provided for the second year of student attendance as a result of
	the changes in law made by this Act.
	SECTION 39.  Not later than March 1, 2019, the Texas
	Education Agency shall conduct a review of technology applications
	and career and technology courses for grades 9 through 12 and
	provide recommendations to the State Board of Education for
	eliminating duplicative courses while ensuring certifications are
	aligned with the rigor of each individual course.
	SECTION 40.  Subchapter J, Chapter 29, and Section
	42.253(b-1), Education Code, as added by this Act, and Section
	411.0901(a-1), Government Code, as added by this Act, apply
	beginning with the 2018-2019 school year.
	SECTION 41.  The commissioner of education is required to
	implement this Act only if the legislature appropriates money
	specifically for that purpose. If the legislature does not
	appropriate money specifically for that purpose, the commissioner
	of education may, but is not required to, implement this Act using
	other appropriations available for the purpose.
	SECTION 42.  Except as otherwise provided by this Act, this
	Act takes effect September 1, 2017.
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