HB 1257

relating to the compensation of public school educators, the public
school finance system, public school prekindergarten and
kindergarten programs, and the school health and related services
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. COMPENSATION OF PUBLIC SCHOOL EDUCATORS
SECTION 1.01.  Section 21.402, Education Code, is amended by
amending Subsections (a) and (g) and adding Subsections (a-1) and
(a)  A [Except as provided by Subsection (e-1) or (f), a]
school district must pay each employee who is employed as a
classroom teacher, full-time librarian, full-time school counselor
certified under Subchapter B, or full-time school nurse not less
than the highest annual minimum [minimum monthly] salary described
by the following schedule applicable to [, based on] the employee's
certification, if any, and years [level] of experience:
(1)  for an employee with less than five years of
(A)  no certification  $40,000;
(B)  a teacher intern, teacher trainee, or
probationary certificate issued under Subchapter B  $42,000;
(C)  the base certificate required under Section
21.003(a) for employment in the employee's position other than a
certificate described by Paragraph (B)  $45,000; or
(D)  a designation under Section 21.3521 . .
(2)  for an employee with at least five years of
(A)  no certification  $50,000;
(B)  a teacher intern, teacher trainee, or
probationary certificate issued under Subchapter B  $52,000;
(C)  the base certificate required under Section
21.003(a) for employment in the employee's position other than a
certificate described by Paragraph (B)  $55,000; or
(D)  a designation under Section 21.3521 . . .
(3)  for an employee with at least 10 years of
(A)  no certification  $60,000;
(B)  a teacher intern, teacher trainee, or
probationary certificate issued under Subchapter B  $62,000;
(C)  the base certificate required under Section
21.003(a) for employment in the employee's
(D)  a designation under Section 21.3521 . . .
(4)  for an employee with at least 15 years of
experience, an additional five percent of the applicable amount
described by Subdivision (3) for every five years of experience
over 10 years [in addition to other factors, as determined by
commissioner rule, determined by the following formula:
["MS" is the minimum monthly salary;
["SF" is the applicable salary factor specified by Subsection
["FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
48.051(a) or (b) for a school district with a maintenance and
operations tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 48.051(a)].
(a-1)  For purposes of Subsection (a), a full-time school
nurse is considered to hold the base certificate required under
Section 21.003(a) for employment as a school nurse, regardless of
the other certifications held by the nurse.
(g)  The commissioner may adopt rules to govern the
application of this section, including rules that:
(1)  require the payment of a minimum salary under this
section to a person employed in more than one capacity for which a
minimum salary is provided and whose combined employment in those
capacities constitutes full-time employment; and
(2)  specify the credentials a person must hold to be
considered a [speech pathologist or] school nurse under this
(i)  A school district must use at least 50 percent of the
difference between what the district would have paid under Section
825.405, Government Code, based on the salaries paid under this
section as it existed on September 1, 2024, and what the district
pays under Section 825.405, Government Code, based on the salaries
paid under this section as it exists after September 1, 2025, to
increase the average total compensation per district employee
employed as a classroom teacher, full-time librarian, full-time
school counselor certified under Subchapter B, or full-time school
nurse. In calculating average total compensation per district
employee under this subsection, a district may not include
compensation paid to a classroom teacher, full-time librarian,
full-time school counselor certified under Subchapter B, or
full-time school nurse in a position added by the school district
for the current school year that increases the ratio of those
employees to enrolled students over the ratio of those employees to
enrolled students for the preceding year.  This subsection expires
SECTION 1.02.  The heading to Section 21.403, Education
Code, is amended to read as follows:
Sec. 21.403.  DETERMINATION OF YEARS OF EXPERIENCE
[PLACEMENT ON MINIMUM SALARY SCHEDULE].
SECTION 1.03.  Sections 21.403(b) and (c), Education Code,
are amended to read as follows:
(b)  For each year of work experience required for
certification in a career or technological field, up to a maximum of
two years, a certified career or technology education teacher is
entitled to [salary step] credit as if the work experience were
(c)  The commissioner shall adopt rules for determining the
experience for which a teacher, librarian, school counselor, or
nurse is to be given credit for purposes of the minimum salary
schedule under Section 21.402(a) [in placing the teacher,
librarian, school counselor, or nurse on the minimum salary
schedule].  A district shall credit the teacher, librarian, school
counselor, or nurse for each year of experience without regard to
whether the years are consecutive.
SECTION 1.04.  Section 21.4552(d), Education Code, is
(d)  From funds appropriated for that purpose, a teacher who
attends a literacy achievement academy is entitled to receive a
stipend in the amount determined by the commissioner.  A stipend
received under this subsection is not considered in determining
whether a school district is paying the teacher the minimum
[monthly] salary under Section 21.402.
SECTION 1.05.  Section 21.4553(d), Education Code, is
(d)  From funds appropriated for that purpose, a teacher who
attends a mathematics achievement academy is entitled to receive a
stipend in the amount determined by the commissioner.  A stipend
received under this subsection is not considered in determining
whether a district is paying the teacher the minimum [monthly]
SECTION 1.06.  Section 21.4555(f), Education Code, is
(f)  From funds available for that purpose, a teacher who
attends a civics training program may receive a stipend in an amount
determined by the commissioner.  A stipend received under this
section is not included in determining whether a district is paying
the teacher the minimum [monthly] salary under Section 21.402.
SECTION 1.07.  Section 30.102(b), Education Code, is amended
(b)  A classroom teacher, full-time librarian, full-time
school counselor certified under Subchapter B, Chapter 21, or
full-time school nurse employed by the department is entitled to
receive as a minimum salary the [monthly] salary specified by
Section 21.402.  A classroom teacher, full-time librarian,
full-time school counselor, or full-time school nurse may be paid,
from funds appropriated to the department, a salary in excess of the
minimum specified by that section, but the salary may not exceed the
rate of pay for a similar position in the public schools of an
SECTION 1.08.  Section 33.009(h), Education Code, is amended
(h)  From funds appropriated for that purpose, a school
counselor who attends the academy under this section is entitled to
receive a stipend in the amount determined by the coordinating
board.  If funds are available after all eligible school counselors
have received a stipend under this subsection, the coordinating
board shall pay a stipend in the amount determined by the
coordinating board to a teacher who attends the academy under this
section.  A stipend received under this subsection is not
considered in determining whether a district is paying the school
counselor or teacher the minimum [monthly] salary under Section
SECTION 1.09.  Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.280 to read as follows:
Sec. 48.280.  SALARY TRANSITION ALLOTMENT.  (a)  In the
2025-2026 and 2026-2027 school years, a school district is entitled
to receive an annual salary transition allotment equal to the
difference, if that amount is greater than zero, between:
(1)  the amount calculated under Subsection (b); and
(2)  the amount calculated under Subsection (c).
(b)  The agency shall calculate a school district's value for
Subsection (a)(1) by determining the difference in the amount the
district must pay in compensation to employees on the minimum
salary schedule under Section 21.402, as amended by H.B. ____, 89th
Legislature, Regular Session, 2025, from the amount paid in
compensation to employees on the minimum salary schedule under that
section as effective in the 2024-2025 school year, less the
(1)  the amount of employer contributions under Section
825.4035, Government Code, and Section 1575.203, Insurance Code,
the district paid in the 2024-2025 school year for employees on the
minimum salary schedule under Section 21.402; and
(2)  the amount the district would have paid in
employer contributions under Section 825.4035, Government Code,
and Section 1575.203, Insurance Code, in the 2024-2025 school year
for employees on the minimum salary schedule if the changes made to
Section 21.402 by H.B. ____, 89th Legislature, Regular Session,
(c)  The agency shall calculate a school district's value for
Subsection (a)(2) by determining the total maintenance and
operations revenue for the current school year less the total
maintenance and operations revenue that would have been available
to the district using the basic allotment formula provided by
Section 48.051 and the small and mid-sized district allotment
formulas provided by Section 48.101 as those sections existed on
(d)  Before making a final determination of the amount of an
allotment to which a school district is entitled under this
section, the agency shall ensure each school district has an
opportunity to review and submit revised information to the agency
for purposes of calculating the values under Subsection (a).
(e)  A school district is entitled to an allotment in an
(1)  for the 2027-2028 school year, two-thirds of the
value determined under Subsection (a); and
(2)  for the 2028-2029 school year, one-third of the
value determined under Subsection (a).
(f)  A school district is not entitled to an allotment under
this section in the 2029-2030 school year or a later school year.
(g)  This section expires September 1, 2031.
SECTION 1.10.  The following provisions of the Education
(1)  Sections 21.402(b), (c), (c-1), (f), and (h); and
(2)  Sections 21.403(a) and (d).
ARTICLE 2.  PUBLIC SCHOOL FINANCE SYSTEM
SECTION 2.01.  Section 48.005, Education Code, is amended to
Sec. 48.005.  AVERAGE ENROLLMENT [DAILY ATTENDANCE].  (a)
In this chapter, average enrollment [daily attendance] is[:
[(1)]  the average number of students enrolled in the
school district during a school year [quotient of the sum of
attendance for each day of the minimum number of days of instruction
as described under Section 25.081(a) divided by the minimum number
[(2)  for a district that operates under a flexible
year program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1);
[(3)  for a district that operates under a flexible
school day program under Section 29.0822, the average daily
attendance as calculated by the commissioner in accordance with
Sections 29.0822(d) and (d-1); or
[(4)  for a district that operates a half-day program
or a full-day program under Section 29.153(c), one-half of the
average daily attendance calculated under Subdivision (1)].
(b)  A school district that experiences a decline of two
percent or more in average enrollment [daily attendance] shall be
(1)  the actual average enrollment [daily attendance]
of the preceding school year, if the decline is the result of the
closing or reduction in personnel of a military base; or
(2)  subject to Subsection (e), an average enrollment
[daily attendance] not to exceed 98 percent of the actual average
enrollment [daily attendance] of the preceding school year, if the
decline is not the result of the closing or reduction in personnel
(c)  The commissioner shall adjust the average enrollment
[daily attendance] of a school district that has a significant
percentage of students who are migratory children as defined by 20
(d)  The commissioner may adjust the average enrollment
[daily attendance] of a school district in which a disaster, flood,
extreme weather condition, fuel curtailment, or other calamity has
a significant effect on the district's enrollment [attendance]. In
addition to providing the adjustment for the amount of
instructional days during the semester in which the calamity first
occurred, an adjustment under this section may only be provided
based on a particular calamity for an additional amount of
instructional days equivalent to one school year.  The commissioner
may divide the adjustment between two consecutive school years.
(e)  For each school year, the commissioner shall adjust the
average enrollment [daily attendance] of school districts that are
entitled to funding on the basis of an adjusted average enrollment
[daily attendance] under Subsection (b)(2) so that:
(1)  all districts are funded on the basis of the same
percentage of the preceding year's actual average enrollment [daily
(2)  the total cost to the state does not exceed the
amount specifically appropriated for that year for purposes of
(f)  An open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b)(2).
(g)  If a student may receive course credit toward the
student's high school academic requirements and toward the
student's higher education academic requirements for a single
course, including a course provided under Section 28.009 by a
public institution of higher education, the time during which the
student attends the course shall be counted as part of the minimum
number of instructional hours required for a student to be
considered a full-time student in average enrollment [daily
attendance] for purposes of this section.
[(g-1)  The commissioner shall adopt rules to calculate
average daily attendance for students participating in a blended
learning program in which classroom instruction is supplemented
with applied workforce learning opportunities, including
participation of students in internships, externships, and
(h)  Time [Subject to rules adopted by the commissioner under
Section 48.007(b), time] that a student participates in an
off-campus instructional program provided by an entity other than a
school district or open-enrollment charter school and approved by
the commissioner in accordance with commissioner rule [under
Section 48.007(a)] shall be counted as part of the minimum number of
instructional hours required for a student to be considered a
full-time student in average enrollment [daily attendance] for
[(i)  A district or a charter school operating under Chapter
12 that operates a prekindergarten program is eligible to receive
one-half of average daily attendance under Subsection (a) if the
district's or charter school's prekindergarten program provides at
least 32,400 minutes of instructional time to students.]
(j)  A district or charter school is eligible to earn full
average enrollment [daily attendance] under Subsection (a) if the
district or school provides at least 43,200 minutes of
instructional time to students enrolled in:
(1)  a dropout recovery school or program operating
under Section 12.1141(c) or Section 39.0548;
(2)  an alternative education program operating under
(3)  a school program located at a day treatment
facility, residential treatment facility, psychiatric hospital, or
(4)  a school program offered at a correctional
(5)  a school operating under Subchapter G, Chapter 12.
(k)  A charter school operating under a charter granted under
Chapter 12 before January 1, 2015, is eligible to earn full average
enrollment [daily attendance] under Subsection (a)[, as that
subsection existed immediately before January 1, 2015,] for:
(1)  all campuses of the charter school operating
(2)  any campus or site expansion approved on or after
January 1, 2015, provided that the charter school received an
academic accountability performance rating of C or higher, and the
campus or site expansion is approved by the commissioner.
(l)  A school district campus or charter school described by
Subsection (j) may operate more than one program and be eligible for
full average enrollment [daily attendance] for each program if the
programs operated by the district campus or charter school satisfy
all applicable state and federal requirements.
(m)  The commissioner shall adopt rules necessary to
implement this section, including rules that:
(1)  determine the method to calculate the average
number of students enrolled in a school district during a school
(2)  establish the minimum amount of instructional time
per day that allows a school district or charter school to be
eligible for full average enrollment [daily attendance], which may
differ based on the instructional program offered by the district
(3) [(2)]  establish the requirements necessary for a
school district or charter school to be eligible for one-half of
average enrollment [daily attendance], which may differ based on
the instructional program offered by the district or charter
(4) [(3)]  proportionally reduce the average
enrollment [daily attendance] for a school district if any campus
or instructional program in the district provides fewer than the
required minimum minutes of instruction to students; and
(5) [(4)]  allow a grade or course repeated under
Section 28.02124 to qualify for average enrollment [daily
attendance] even if the student previously passed or earned credit
for the grade or course, if the grade or course would otherwise be
(n)  To assist school districts in implementing this section
as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
Session, 2017, the commissioner may waive a requirement of this
section or adopt rules to implement this section.
SECTION 2.02.  Section 48.051, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsections (c-3),
(c-4), and (c-5) to read as follows:
(a)  For each student in average enrollment [daily
attendance], not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C, a
district is entitled to an allotment equal to [the lesser of $6,160
or] the amount that results from the following formula:
"A" is the allotment to which a district is entitled;
"B" is the base amount, which equals the greatest of:
(2)  an amount equal to the district's base amount under
this section for the preceding school year; or
(3)  the amount appropriated under Subsection (b);
"TR" is the district's tier one maintenance and operations
tax rate, as provided by Section 45.0032; and
"MCR" is the district's maximum compressed tax rate, as
determined under Section 48.2551.
(c)  During any school year for which the value of "A"
determined [maximum amount of the basic allotment provided] under
Subsection (a) [or (b)] is greater than the value of "A" [maximum
amount provided] for the preceding school year, a school district
must use at least 40 [30] percent of the amount[, if the amount is
greater than zero,] that equals the product of the average
enrollment [daily attendance] of the district multiplied by the
difference in the value of "A" [amount of the difference between the
district's funding under this chapter per student in average daily
attendance] for the current school year and the value of "A" for the
preceding school year to provide compensation increases to
full-time district employees other than administrators as follows:
(1)  75 percent must be used to increase the
compensation paid to classroom teachers, full-time librarians,
full-time school counselors certified under Subchapter B, Chapter
21, and full-time school nurses[, prioritizing differentiated
compensation for classroom teachers with more than five years of
(2)  25 percent must [may] be used as determined by the
district to increase compensation paid to full-time district
employees, prioritizing differentiated compensation for employees
other than administrators or those receiving more than $100,000 per
(c-3)  In calculating the compensation increases under
Subsection (c), a school district may not consider compensation
paid to a district employee employed in a position described by that
subsection added by the district for the current school year that
increases the ratio of those employees to students enrolled in the
district compared to the preceding school year.
(c-4)  If a school district increases employee compensation
in a school year to comply with Subsection (c), as amended by
H.B. ____, 89th Legislature, Regular Session, 2025, the district is
providing compensation for services rendered independently of an
existing employment contract applicable to that year and is not a
violation of Section 53, Article III, Texas Constitution.
(c-5)  A school district that does not meet the requirements
of Subsection (c) during a school year may satisfy the requirements
of this section by providing an employee a one-time bonus payment
during the following school year in an amount necessary to comply
with Subsection (c) for that school year.
SECTION 2.03.  Effective September 1, 2026, Section 48.051,
Education Code, is amended by adding Subsection (a-1) to read as
(a-1)  Notwithstanding Subsection (a), for each state fiscal
year, the commissioner shall adjust the value of "B" under that
subsection for the preceding state fiscal year by a factor equal to
the average annual inflation rate, if the rate is greater than zero,
for the preceding five years, as determined by the comptroller on
the basis of changes in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the United
SECTION 2.04.  Section 48.102, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1)  To address the extraordinary gap between the amount of
the allotment under this section and actual school district
expenses for special education, a school district that for the
preceding state fiscal biennium spent a greater amount for students
in a special education program under Subchapter A, Chapter 29, than
the amount the district received in that biennium from the
allotment under this section is entitled to additional funding for
the current state fiscal biennium in an amount equal to the
difference between the total of those amounts.
SECTION 2.05.  Section 48.108(a), Education Code, is amended
(a)  For each student in average enrollment [daily
attendance] in prekindergarten [kindergarten] through third grade,
a school district is entitled to an annual allotment equal to the
basic allotment multiplied by 0.1 if the student is:
(1)  educationally disadvantaged; [or]
(2)  an emergent bilingual student, as defined by
Section 29.052, and is in a bilingual education or special language
program under Subchapter B, Chapter 29;
(3)  a homeless child or youth, as defined by 42 U.S.C.
(4)  in the conservatorship of the Department of Family
(5)  a dependent of an active duty member of the United
(6)  a child of a member of the United States armed
forces who was injured or killed while serving on active duty.
SECTION 2.06.  Section 48.115, Education Code, is amended by
amending Subsection (a) and adding Subsections (a-2) and (a-3) to
(a)  Except as provided by Subsection (a-1), a school
district is entitled to an annual allotment equal to the sum of the
following amounts or a greater amount provided by appropriation:
(A)  $10 for each student in average enrollment
[daily attendance], plus $1 for each student in average enrollment
[daily attendance] per every $50 by which the district's maximum
basic allotment under Section 48.051 exceeds $8,947 [$6,160],
(B)  the amount per student provided to the
district under Paragraph (A) for the preceding school year; and
(2)  $85,000 [$15,000] per campus.
(a-2)  Notwithstanding any other provision of this section,
funds allocated to a district under Subsection (a)(2) may be used
only for the purpose of hiring armed security officers in
accordance with Section 37.0814.
(a-3)  To address the gap between the amount of the allotment
under this section and school district expenses for school safety
and security improvements, a school district that for the 2024-2025
school year spent a greater amount to improve school safety and
security than the amount the district received for that school year
from the allotment under this section is entitled to additional
funding for the 2025-2026 school year in an amount equal to the
difference between those amounts. This subsection expires
SECTION 2.07.  Subchapter C, Chapter 48, Education Code, is
amended by adding Section 48.117 to read as follows:
Sec. 48.117.  MENTAL HEALTH ALLOTMENT.  (a)  In this section,
"mental health services" means assessment, diagnosis, treatment,
or counseling by a mental health professional to assist a student
(1)  alleviating mental or emotional illness,
symptoms, conditions, or disorders, including alcohol or drug
(2)  understanding conscious or subconscious
(3)  resolving emotional, attitudinal, or relationship
(4)  modifying feelings, attitudes, or behaviors that
interfere with effective emotional, social, or intellectual
(b)  This section applies only to a school district in which
not less than 60 percent of the campuses in the district offer
students access to mental health services.
(c)  From funds appropriated or otherwise available for the
purpose, the commissioner shall provide to a school district to
which this section applies an annual allotment for each student who
accesses mental health services through the district in an amount
equal to the district's basic allotment or, if applicable, the sum
of the basic allotment and the allotment under Section 48.101 to
which the district is entitled, multiplied by a weight in an amount
determined by the commissioner based on criteria related to the
cost of providing those services.
(d)  A school district may use money received under this
section to employ a mental health professional or contract with a
mental health services provider to provide mental health services
to students enrolled in the district.
SECTION 2.08.  Section 48.151(b)(1), Education Code, is
(1)  "Regular eligible student" means a student who:
(A)  resides at least one mile [two or more miles]
from the student's campus of regular attendance, measured along the
shortest route that may be traveled on public roads, and who is not
classified as a student eligible for special education services; or
(B)  is a homeless child or youth, as defined by 42
SECTION 2.09.  Sections 48.151(c) and (g), Education Code,
are amended to read as follows:
(c)  Each district or county operating a regular
transportation system is entitled to an allotment based on a rate of
$1.50 per mile per regular eligible student or a greater rate set by
the legislature in the General Appropriations Act.
(g)  A school district or county that provides special
transportation services for eligible special education students is
entitled to a state allocation at a [paid on a previous year's
cost-per-mile basis.  The] rate of $1.25 per mile or a greater rate
provided [allowable shall be set] by appropriation [based on data
gathered from the first year of each preceding biennium].
Districts may use a portion of their support allocation to pay
transportation costs, if necessary.  The commissioner may grant an
amount set by appropriation for private transportation to reimburse
parents or their agents for transporting eligible special education
students.  The mileage allowed shall be computed along the shortest
public road from the student's home to school and back, morning and
afternoon.  The need for this type of transportation shall be
determined on an individual basis and shall be approved only in
SECTION 2.10.  Section 48.202(a-1), Education Code, is
(a-1)  For purposes of Subsection (a), the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort ("GL") for a school district is:
(1)  the greater of the amount of district tax revenue
per weighted student per cent of tax effort available to a school
district at the 96th percentile of wealth per weighted student or
the amount that results from multiplying the maximum amount of the
basic allotment provided under Section 48.051 for the applicable
school year [6,160, or the greater amount provided under Section
48.051(b), if applicable,] by 0.016, for the first eight cents by
which the district's maintenance and operations tax rate exceeds
the district's tier one tax rate; and
(2)  subject to Subsection (f), the amount that results
from multiplying the maximum amount of the basic allotment provided
under Section 48.051 for the applicable school year [$6,160, or the
greater amount provided under Section 48.051(b), if applicable,] by
0.008, for the district's maintenance and operations tax effort
that exceeds the amount of tax effort described by Subdivision (1).
ARTICLE 3. PUBLIC SCHOOL PREKINDERGARTEN AND KINDERGARTEN PROGRAMS
SECTION 3.01.  Section 28.02124(a), Education Code, is
(a)  Subject to Subsection (c), a parent or guardian may
(2)  enroll in prekindergarten, if the student would
have been eligible to enroll in prekindergarten during the previous
school year under Section 29.153 [29.153(b)] and the student has
not yet enrolled in kindergarten;
(4)  enroll in kindergarten, if the student would have
been eligible to enroll in kindergarten in the previous school year
and has not yet enrolled in first grade; or
(5)  for grades one through eight, repeat the grade in
which the student was enrolled during the previous school year.
SECTION 3.02.  Section 29.152, Education Code, is amended to
Sec. 29.152.  OPERATION OF KINDERGARTENS ON [HALF-DAY OR]
FULL-DAY BASIS.  A public school kindergarten shall [may] be
operated on a [half-day or a] full-day basis [at the option of the
board of trustees of the school district].
SECTION 3.03.  Sections 29.153(a-1), (c), (c-1), (d-2), and
(e), Education Code, are amended to read as follows:
(a-1)  A district shall offer prekindergarten classes to any
child [if the district identifies 15 or more children] who is [are
eligible under Subsection (b) and are] at least three [four] years
of age.  [A school district may offer prekindergarten classes if the
district identifies 15 or more eligible children who are at least
three years of age.]  A district may not charge tuition for a
prekindergarten class offered under this section.
(c)  A prekindergarten class under this section [may be
operated on a half-day basis for children under four years of age
and] shall be operated on a full-day basis [for children who are at
least four years of age].  [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
(c-1)  A prekindergarten class under this section [for
children who are least four years of age] must comply with the
program standards required for high quality prekindergarten
(d-2)  An exemption under Subsection (d) may not be granted
for a period longer than two [three] school years and may be renewed
(e)  Each school district shall develop a system to notify
the population in the district with children who are eligible for
enrollment in a prekindergarten class under this section of the
availability of the class.  The system must include public notices
issued in English, [and] Spanish, and the most common language
other than English or Spanish spoken by people residing in the
SECTION 3.04.  Section 29.1531(a), Education Code, is
(a)  A school district may offer on a tuition basis or use
[(1)  an additional half-day of prekindergarten
classes to children who are eligible for classes under Section
29.153 and are under four years of age; and
[(2)]  half-day and full-day prekindergarten classes
to children not eligible for classes under Section 29.153.
SECTION 3.05.  Sections 29.153(b), (e-1), and (f), Education
ARTICLE 4. SCHOOL HEALTH AND RELATED SERVICES PROGRAM
SECTION 4.01.  Subchapter B, Chapter 32, Human Resources
Code, is amended by adding Sections 32.0271 and 32.04245 to read as
Sec. 32.0271.  REIMBURSEMENT FOR CERTAIN SERVICES PROVIDED
TO MEDICAID-ENROLLED STUDENTS BY LOCAL EDUCATION AGENCIES.  (a)  In
this section, "local education agency" includes a school district
or open-enrollment charter school.
(b)  This section applies only with respect to a child who is
enrolled in Medicaid and is eligible to receive services under the
school health and related services program, regardless of whether
the child has an individualized education program.
(c)  The commission shall ensure that reimbursement under
the school health and related services program is provided to a
local education agency for all mental and behavioral health
services covered under the program that are provided to a child
(d)  The parent or legal guardian of a child to whom this
section applies must provide written consent for any services
provided to the child under this section.  The parent or legal
guardian may revoke that consent at any time.
(e)  A local education agency that provides mental or
behavioral health services to a child under this section shall
provide a written summary of each of the child's service visits to:
(1)  if the child is younger than 18 years of age, the
child's parent or legal guardian; and
(2)  if the child's parent or legal guardian provides
consent, the child's primary care provider.
(f)  This section does not require a local education agency
to enroll as a Medicaid provider.
Sec. 32.04245.  SCHOOL HEALTH AND RELATED SERVICES PROGRAM:
THIRD-PARTY INSURERS.  The commission may not provide reimbursement
under the school health and related services program to a
third-party health insurer for any service provided in order to
facilitate the coordination of benefits.
SECTION 4.02.  As soon as practicable after the effective
date of this Act, the Health and Human Services Commission shall
seek any necessary amendment to the state Medicaid plan or other
appropriate authorization from the Centers for Medicare and
Medicaid Services or other appropriate federal agency to implement
Section 32.0271, Human Resources Code, as added by this Act, and may
delay implementing that section until the amendment or other
SECTION 5.01.  Section 7.062(a), Education Code, is amended
(a)  In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
divided by the district's average enrollment [daily attendance] as
determined under Section 48.005.
SECTION 5.02.  Section 11.052(f), Education Code, is amended
(f)  If single-member trustee districts are adopted or
approved as provided by this section, the board shall divide the
school district into the appropriate number of trustee districts,
based on the number of members of the board that are to be elected
from single-member trustee districts, and shall number each trustee
district.  The trustee districts must be compact and contiguous and
must be as nearly as practicable of equal population.  In a district
with 150,000 or more students in average enrollment [daily
attendance], the boundary of a trustee district may not cross a
county election precinct boundary except at a point at which the
boundary of the school district crosses the county election
precinct boundary.  Trustee districts must be drawn not later than
the 90th day before the date of the first election of trustees from
SECTION 5.03.  Sections 12.106(a), (a-2), and (d), Education
Code, are amended to read as follows:
(a)  A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 48 equal to
the amount of funding per student in weighted average enrollment
[daily attendance], excluding the adjustment under Section 48.052,
the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
enrichment funding under Section 48.202(a), to which the charter
holder would be entitled for the school under Chapter 48 if the
school were a school district without a tier one local share for
(a-2)  In addition to the funding provided by Subsection (a),
a charter holder is entitled to receive for the open-enrollment
charter school an allotment per student in average enrollment
[daily attendance] in an amount equal to the difference between:
(i)  the total amount of funding provided to
eligible school districts under Section 48.101(b) or (c); and
(ii)  the total number of students in
average enrollment [daily attendance] in school districts that
receive an allotment under Section 48.101(b) or (c); and
(B)  the sum of one and the quotient of:
(i)  the total number of students in average
enrollment [daily attendance] in school districts that receive an
allotment under Section 48.101(b) or (c); and
(ii)  the total number of students in
average enrollment [daily attendance] in school districts
(d)  Subject to Subsection (e), in addition to other amounts
provided by this section, a charter holder is entitled to receive,
for the open-enrollment charter school, funding per student in
average enrollment [daily attendance] in an amount equal to the
guaranteed level of state and local funds per student per cent of
tax effort under Section 46.032(a) multiplied by the lesser of:
(1)  the state average interest and sinking fund tax
rate imposed by school districts for the current year; or
(2)  a rate that would result in a total amount to which
charter schools are entitled under this subsection for the current
SECTION 5.04.  Sections 12.263(a), (b), and (c), Education
Code, are amended to read as follows:
(a)  Except as otherwise provided by this section, funding
for an adult education program operated under a charter granted
under this subchapter is an amount per participant through the
Foundation School Program equal to the amount of state funding per
student in weighted average enrollment [daily attendance] that
would be allocated under the Foundation School Program for the
student's enrollment [attendance] at an open-enrollment charter
school in accordance with Section 12.106.
(b)  For purposes of determining the average enrollment
[daily attendance] of an adult education program operated under a
charter granted under this subchapter, a student is considered to
be in average enrollment [daily attendance, with a 100 percent
(1)  all of the instructional days of the school year,
if the student is enrolled for at least 75 percent of the school
(2)  half of the instructional days of the school year,
if the student is enrolled for at least 50 percent but less than 75
(3)  a quarter of the instructional days of the school
year, if the student is enrolled for at least 25 percent but less
than 50 percent of the school year; or
(4)  one-tenth of the instructional days of the school
year, if the student is enrolled for at least 10 percent but less
than 25 percent of the school year.
(c)  A student enrolled in an adult education program
operated under a charter granted under this subchapter for less
than 10 percent of a school year may not be counted toward the adult
education program's average enrollment [daily attendance] for that
SECTION 5.05.  Section 13.051(c), Education Code, is amended
(c)  Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1)  the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A)  five percent of the district's taxable value
of all property in that district as determined under Subchapter M,
Chapter 403, Government Code; and
(B)  $5,000 property value per student in average
enrollment [daily attendance] as determined under Section 48.005;
(2)  the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 5.06.  Section 13.102, Education Code, is amended to
Sec. 13.102.  MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
REQUIREMENTS.  A new district may not be created with an area of
less than nine square miles or fewer than 8,000 students in average
enrollment [daily attendance], and a district may not be reduced to
an area of less than nine square miles or fewer than 8,000 students
in average enrollment [daily attendance].
SECTION 5.07.  Section 13.283, Education Code, is amended to
Sec. 13.283.  PAYMENTS REDUCED.  The incentive aid payments
shall be reduced in direct proportion to any reduction in the
average enrollment [daily attendance] as determined under Section
48.005 of the reorganized school district for the preceding year.
SECTION 5.08.  Section 19.009(d-2), Education Code, is
(d-2)  Beginning with the 2009-2010 school year, the
district shall increase the [monthly] salary of each classroom
teacher, full-time speech pathologist, full-time librarian,
full-time school counselor certified under Subchapter B, Chapter
21, and full-time school nurse employed by the district by the
(2)  the maximum uniform amount per month that, when
combined with any resulting increases in the amount of
contributions made by the district for social security coverage for
the specified employees or by the district on behalf of the
specified employees under Section 825.405, Government Code, may be
provided using an amount equal to the product of $60 multiplied by
the number of students in weighted average enrollment [daily
attendance] in the district during the 2009-2010 school year.
SECTION 5.09.  Section 25.038, Education Code, is amended to
Sec. 25.038.  TUITION FEE FOR TRANSFER STUDENTS.  The
receiving school district may charge a tuition fee to the extent
that the district's actual expenditure per student in average
enrollment [daily attendance], as determined by its board of
trustees, exceeds the sum the district benefits from state aid
sources as provided by Section 25.037.  However, unless a tuition
fee is prescribed and set out in a transfer agreement before its
execution by the parties, an increase in tuition charge may not be
made for the year of that transfer that exceeds the tuition charge,
if any, of the preceding school year.
SECTION 5.10.  Section 25.045(c), Education Code, is amended
(c)  A student who transfers to another school district under
this section may not be charged tuition.  The student is included in
the average enrollment [daily attendance] of the district in which
SECTION 5.11.  Sections 25.081(e) and (f), Education Code,
are amended to read as follows:
(e)  A school district or education program is exempt from
the minimum minutes of operation requirement if the district's or
program's average enrollment [daily attendance] is calculated
(f)  The commissioner may proportionally reduce the amount
of funding a district receives under Chapter 46, 48, or 49 and the
average enrollment [daily attendance] calculation for the district
if the district operates on a calendar that provides fewer minutes
of operation than required under Subsection (a).
SECTION 5.12.  Section 25.087(d), Education Code, is amended
(d)  A student whose absence is excused under Subsection (b),
(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
penalized for that absence and shall be counted as if the student
attended school for purposes of funding under Chapter 48
[calculating the average daily attendance of students in the school
district]. A student whose absence is excused under Subsection (b),
(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
reasonable time to make up school work missed on those days. If the
student satisfactorily completes the school work, the day of
absence shall be counted as a day of compulsory attendance.
SECTION 5.13.  Section 25.111, Education Code, is amended to
Sec. 25.111.  STUDENT/TEACHER RATIOS.  Except as provided by
Section 25.112, each school district must employ a sufficient
number of teachers certified under Subchapter B, Chapter 21, to
maintain an average ratio of not less than one teacher for each 20
students in average enrollment [daily attendance].
SECTION 5.14.  Sections 25.112(a) and (b), Education Code,
are amended to read as follows:
(a)  Except as otherwise authorized by this section, a school
district may not enroll more than 22 students in a prekindergarten,
kindergarten, first, second, third, or fourth grade class.  That
limitation does not apply during:
(1)  any 12-week period of the school year selected by
the district, in the case of a district whose average enrollment
[daily attendance] is adjusted under Section 48.005(c); or
(2)  the last 12 weeks of any school year in the case of
(b)  Not later than the 30th day after the first day of the
12-week period for which a district whose average enrollment [daily
attendance] is adjusted under Section 48.005(c) is claiming an
exemption under Subsection (a), the district shall notify the
commissioner in writing that the district is claiming an exemption
for the period stated in the notice.
SECTION 5.15.  Section 29.008(b), Education Code, is amended
(b)  Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds.  The local share of
the total contract cost for each student is that portion of the
local tax effort that exceeds the district's local fund assignment
under Section 48.256, divided by the average enrollment [daily
attendance] in the district.  If the contract involves a private
facility, the state share of the total contract cost is that amount
remaining after subtracting the local share.  If the contract
involves a public facility, the state share is that amount
remaining after subtracting the local share from the portion of the
contract that involves the costs of instructional and related
services.  For purposes of this subsection, "local tax effort"
means the total amount of money generated by taxes imposed for debt
service and maintenance and operation less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.
SECTION 5.16.  Section 29.014(b), Education Code, is amended
(b)  A school district to which this section applies may
operate an extended year program for a period not to exceed 45 days.
[The district's average daily attendance shall be computed for the
regular school year plus the extended year.]
SECTION 5.17.  Section 29.081(f), Education Code, is amended
(f)  The commissioner shall include a student who
successfully completes a course offered through a program under
Subsection (e) in the computation of the district's or school's
average enrollment [daily attendance] for funding purposes.  [For a
student who successfully completes a remote course offered through
the program, the commissioner shall include the student in the
computation of the district's or school's average daily attendance
with an attendance rate equal to:
[(1)  the district's or school's average attendance
rate for students successfully completing a course offered in
[(2)  if the district or school does not offer courses
in person under the program, the statewide average attendance rate
for students successfully completing a course offered in person
under a program under Subsection (e).]
SECTION 5.18.  Section 29.0822(d), Education Code, is
(d)  The commissioner may adopt rules for the administration
of this section, including rules establishing application
requirements.  [Subject to Subsection (d-1), the commissioner shall
calculate average daily attendance for students served under this
section.  The commissioner shall allow accumulations of hours of
instruction for students whose schedule would not otherwise allow
full state funding.  Funding under this subsection shall be
determined based on the number of instructional days in the school
district calendar and a seven-hour school day, but attendance may
be cumulated over a school year, including any summer or vacation
session.  The attendance of students who accumulate less than the
number of attendance hours required under this subsection shall be
proportionately reduced for funding purposes.  The commissioner
[(1)  set maximum funding amounts for an individual
[(2)  limit funding for the attendance of a student
described by Subsection (a)(3) in a course under this section to
funding only for the attendance necessary for the student to earn
class credit that, as a result of attendance requirements under
Section 25.092, the student would not otherwise be able to receive
SECTION 5.19.  Section 29.184(b), Education Code, is amended
(b)  A student who attends career and technology classes at
another school under a contract authorized by Subsection (a) is
included in the average enrollment [daily attendance] of the
district in which the student is regularly enrolled.
SECTION 5.20.  Sections 29.203(a) and (c), Education Code,
are amended to read as follows:
(a)  A student who under this subchapter uses a public
education grant to attend a public school in a school district other
than the district in which the student resides is included in the
average enrollment [daily attendance] of the district in which the
(c)  A school district is entitled to additional facilitie