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Texas House Journal, 86th Legislature, 74th day: SB 2 conference report, Record 1939

Texas House of Representatives · 2019-05-25

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                    HOUSE JOURNAL
           EIGHTY-SIXTH LEGISLATURE, REGULAR SESSION

                               PROCEEDINGS

          SEVENTY-FOURTH DAY — SATURDAY, MAY 25, 2019
    The house met at 9:49 a.m. and was called to order by the speaker.
    The roll of the house was called and a quorum was announced present
(Recordi1926).
     Present — Mr. Speaker(C); Allen; Allison; Anchia; Anderson; Ashby;
Bailes; Beckley; Bell, C.; Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen;
Bowers; Buckley; Bucy; Burns; Burrows; Button; Cain; Calanni; Canales;
Capriglione; Clardy; Cole; Coleman; Collier; Cortez; Craddick; Cyrier; Darby;
Davis, S.; Davis, Y.; Dean; Deshotel; Dominguez; Dutton; Farrar; Fierro; Flynn;
Frank; Frullo; Geren; Gervin-Hawkins; Goldman; González, J.; González, M.;
Goodwin; Guerra; Guillen; Gutierrez; Harless; Harris; Hefner; Hernandez;
Herrero; Hinojosa; Holland; Howard; Huberty; Hunter; Israel; Johnson, J.D.;
Johnson, J.E.; Kacal; King, K.; King, P.; King, T.; Klick; Krause; Kuempel;
Lambert; Landgraf; Lang; Larson; Leach; Leman; Longoria; Lopez; Lozano;
Lucio; Martinez; Martinez Fischer; Metcalf; Meyer; Meza; Middleton; Miller;
Minjarez; Moody; Morales; Morrison; Muñoz; Murphy; Murr; Neave; Nevárez;
Noble; Oliverson; Ortega; Pacheco; Paddie; Parker; Patterson; Paul; Perez;
Phelan; Price; Ramos; Raney; Raymond; Reynolds; Rodriguez; Romero; Rose;
Rosenthal; Sanford; Schaefer; Shaheen; Sheffield; Sherman; Shine; Smith;
Smithee; Springer; Stephenson; Stickland; Stucky; Swanson; Talarico; Thierry;
Thompson, E.; Thompson, S.; Tinderholt; Toth; Turner, C.; Turner, J.;
VanDeaver; Vo; Walle; White; Wilson; Wray; Wu; Zedler; Zerwas; Zwiener.
    Absent, Excused — Johnson, E.
    The invocation was offered by Representative Dutton as follows:
     To the God of the Panhandle, to the God of the Rio Grande Valley, to the
God of the High Plains, to the God of the Gulf Coast, to the God of the Piney
Woods, to the God of Central Texas, to the God of West Texas, to the God of
rural Texas, to the God of urban Texas, to the God of the poor, to the God of the
powerful, we thank you for being one God. And today, we pray that our
differences serve to keep Texas one under God. Amen.
     The chair recognized Representative Sherman who led the house in the
pledges of allegiance to the United States and Texas flags.
5916             86th LEGISLATURE — REGULAR SESSION

                       LEAVES OF ABSENCE GRANTED
     The following member was granted leave of absence for today because of
 important business in the district:
       E. Johnson on motion of Muñoz.
      The following member was granted leave of absence for the remainder of
 today because of illness in the family:
       S. Davis on motion of Geren.
                               RULES SUSPENDED
                               FLOOR PRIVILEGES
     Representative Geren moved to suspend Rule 5, Section 11, of the House
 Rules to entitle guests privileges of the floor of the house during the Fallen
 Heroes Memorial Ceremony.
       The motion prevailed.
                 SB 982 - REQUEST OF SENATE GRANTED
                 CONFERENCE COMMITTEE APPOINTED
      On motion of Representative Zerwas, the house granted the request of the
 senate for the appointment of a Conference Committee on SBi982.
      The chair announced the appointment of the following conference
 committee, on the part of the house, on SBi982: Zerwas, chair; Morrison, Phelan,
 Nevárez, and Geren.
                FALLEN HEROES MEMORIAL CEREMONY
      In accordance with the provisions of HCRi173, providing for a memorial
 session of the house of representatives at 10ia.m. today, to pay tribute to all
 members of the U.S. military killed in the line of duty, the Honorable Dennis
 Bonnen called the house of representatives to order.
       Speaker Bonnen addressed the house and guests, speaking as follows:
       Governor, Lieutenant Governor, members of the Texas House and the Texas
 Senate, and honored guests, on behalf of the Texas House, we welcome you to
 your great state Capitol for today ’s very important ceremony. We are eternally
 grateful for everyone here who has worn the uniform of the United States military
 and to those who are here in remembrance of the Texas soldiers and the loved
 ones who have never come home.
       Today, on the Saturday before Memorial Day, we come together to honor the
 legions of men and women who have fought, bled, and offered their lives on the
 altar of freedom for a cause far greater than themselves. It is fitting that we gather
 here in our great Texas Capitol under the banner of our nation ’s flag to
 immortalize the sacrifices of these heroes. This chamber has long served as a
 battleground for democracy and the freedoms made possible by our departed
 heroes. As Texans and Americans, we benefit greatly from the causes they died
 for. Because of their sacrifice, we ’re able to freely express ideas, engage in the
 democratic process, and enact meaningful change for our fellow Texans each day.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                          5917

 However imperfect that process can be, we know that it is only possible because
 of the patriots who over the course of history have paid the ultimate sacrifice for
 our liberty.
       Hundreds of thousands of men and women with names known only to God
 have laid down their lives for that cause. Their legacies are written larger on our
 history. And though we never met them, there is much we know to be true. We
 know they dreamed of long, full lives just as we all do. They had goals to meet,
 plans to make, and loved ones that expected to see them again. Yet despite all of
 that, despite a lifetime of ambition, exists a moment in time where each of them
 decided to put their own dreams on hold in order to serve our country. So they
 gathered up their most cherished hopes in life and tucked them away, only to part
 with them forever as God called them home. For the love of country, these heroes
 accepted death. In that heroic act, their patriotism was immortalized. The gifts of
 freedom were purchased for us, and we were asked for nothing in return.
       We can never repay the debts owed to these men and women, but it should
 never stop us from trying. When we come to this floor to do the people ’s work,
 let us never forget to earn what these great men and women lay their lives down
 for and create a state and nation worthy of their sacrifice. Today we honor those
 that fell from the line, never knowing the void that would be left behind. Our
 words are of small solace to the profound loss their families have suffered, but we
 shoulder their burden, and we work today and every day to ensure their legacies
 never perish. I want to thank all of you for being here today to honor their
 families and their memories.
     Speaker Bonnen recognized Senator Donna Campbell who offered
 welcoming remarks.
     Technical Sergeant Gina Lavender sang the national anthem as the
 assemblage rose for the presentation of the colors by Marines of Weapons
 Company, 1stiBattalion, 23rd Marine Regiment.
      Representative Tinderholt led the assemblage in the pledges of allegiance to
 the United States and Texas flags.
    Representative Flynn introduced Lieutenant Colonel Harold Bender, Texas
 Army National Guard, who offered the invocation as follows:
      Most gracious, heavenly Father, we remember with grateful hearts those
 who in the day of crisis considered the price of liberty worth paying, even at the
 cost of their very lives. If ever there was anything worthy of commemoration,
 heavenly Father, it is the courage, duty, and honor of those who gave the full
 measure of devotion to this country and the American way of life.
      For the contributions signified by the handprints that line the streets of
 Hollywood Boulevard, the busts that stand in the halls of fame, and the titles that
 hang from buildings of commerce, government, and academia pale in comparison
 to the significance of the contribution of the names etched in stone marking the
 graves of those who died in freedom ’s defense. For any accomplishment of any
 notoriety in any field of endeavor owes its achievement in some part to those who
 gave their lives defending our nation. For those accomplishments were achieved
5918            86th LEGISLATURE — REGULAR SESSION

 within the protected walls of freedom that they ’ve built and preserved. We owe
 our quality of life to the prosperity, security, and peace that is found within those
 walls standing on the foundation of the Constitution that they defended with their
 lives. No finer human souls have arisen from more hallowed battlegrounds than
 those who have laid down their lives that their brothers might live freely.
       So on this Memorial Day weekend, Father, we give you thanks for and pay
 tribute to those men and women who demonstrated the ultimate devotion to duty.
 We honor their lives, their deeds, and their deaths and resolve anew on this
 occasion, as citizens of a nation founded upon faith in God almighty, to stand
 firm in keeping the peace and preserving the freedoms that others have given
 their lives to win. May their example be what inspires us to devote ourselves to
 labor and hasten the day when all people in all stages would experience those
 ideals that made this a nation worth dying for: That all men are created equal and
 are endowed by you, their creator, with the inalienable rights of life, liberty, and
 the pursuit of happiness.
       Father, I pray that you will bless the loved ones of those whom we honor
 today. Fill them with the pride that is truly justified and a comfort that can come
 only from you. I make these petitions in the name of the one who laid down his
 life for us, the one in whom one has truly found life, liberty, and peace. In
 Jesus i’name I pray. Amen.
      Representative Flynn laid out and had read HCRi172, paying tribute to the
 U.S. military personnel from Texas who lost their lives in the line of duty.
      The Armed Forces Medley was played as members and guests rose to their
 respective branch ’s song.
      Senator Campbell introduced Lieutenant Governor Dan Patrick, who
 addressed the house and guests, speaking as follows:
       Good morning. It ’s always a great honor to be here. And for the families
 who have lost loved ones serving our country, from all of our senators, our
 sincerest condolences. So many Texans have died in the fight for freedom and
 liberty, and I was reminded of that recently when I was at Normandy at our
 national cemetery above the beaches. We were given a name of a soldier who had
 died in the battle and given a quadrant in this massive cemetery—given a
 quadrant, and a row number, and an exact location to find that gravestone. And as
 I walked my way through the cemetery and I walked by all of the tombstones, I
 saw so many soldiers from Texas. I finally came upon the gravestone of the name
 I had, and it occurred to me that that family probably never knew where their son
 was laid to rest. They never visited that gravesite because in those days after
 World WariII, the average family did not have the ability or the finances to fly
 halfway across the world to visit where their son was laid to rest. So I took a
 couple of photos, and I thought that through social media there must be a
 descendant somewhere in Texas. And we were able to actually link up during the
 session with that family who knew that name and had a chance to share with
 them where their relative had been laid to rest.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5919

       It ’s a very somber moment of knowing how many people have died for
 us––how many young people cut off those landing crafts that day were like
 Senator Hinojosa who fought in Vietnam or Senator Birdwell in Iraq, Senator
 Bob Hall who served, Senator Pat Fallon who served, and the other members of
 the Texas Senate and the Texas House who have served who are not with us here
 today––for our freedom and our liberty. Young men and young women who put
 themselves on the line not knowing what their future would hold for them. Would
 they come back home? And so many didn t’ come back home from so many wars.
 So when you grow tired and weary on the house floor or the senate floor, when
 you have a bad day and your bill didn t’ pass, or when someone debated you on
 the floor and you thought it was a tough day, remember how blessed you are to
 have the opportunity to serve this great state. Because you ’re here only
 because––as I am and all of those before us in this great legislative body––we are
 here because of the men and women who literally laid down their lives to protect
 this country and keep our country and our world free. Remember that. It makes
 you realize our job is really easy, even on the toughest of days.
       Lieutenant Governor Patrick introduced Governor Abbott, who addressed
 the house and guests, speaking as follows:
       Thank you, Governor Patrick and Speaker Bonnen. It ’s great to be back with
 you again. And Senator Campbell, I want to thank you as well as Representative
 Flynn, for your commitment to the men and women in the United States military.
 I also want to thank all the members here in the legislature and especially our
 honored guests. To elaborate a little bit on what you were talking about,
 Lieutenant Governor Patrick, one thing that gives me great pride is every time
 when we come in here and get to see the number of men and women who are part
 of this legislative body stand up and be recognized for your service to the United
 States of America. We applaud you and thank you for your service there but also
 appreciate your service here. I think you all can probably appreciate as well as
 anybody how fitting it is that we gather today in this Capitol to remember and
 honor those who gave their lives for our country. You know, for the past few
 months, this Capitol literally has been a battleground of democracy. The people
 who made that democratic process possible, the people who ensured that we
 would even be able to come in here and fight for the ideals of freedom, are the
 men and women who have worn the uniform of the United States military.
       We are so grateful for every man and women who has ever served, but as we
 commemorate Memorial Day, we particularly remember those who made the
 ultimate sacrifice for our country. Today, we especially recognize Texas military
 members killed while serving since the last legislative session. We honor their
 dedication, we remember their sacrifice, and we celebrate their lives. Today we
 remember U.S.iArmy Master Sergeant Jonathan Dunbar of Austin, Texas;
 U.S.iArmy Sergeant Cameron Meddock of Spearman, Texas; U.S.iArmy
 Specialist Alexander Missildine of Tyler, Texas; U.S.iArmy Chief Warrant
 Officeri2iLee M.iSmith of Arlington, Texas; and U.S.iArmy Specialist Allen Levi
 Stigler Jr.iof Arlington, Texas. The legacy of these extraordinary heroes lives on.
 It lives on because they served for a cause far greater then themselves. It ’s a cause
 we come in this chamber to fight for, and that is the cause of liberty. We honor
5920             86th LEGISLATURE — REGULAR SESSION

 those who gave their all to fight for that liberty, those who went into harm ’s way
 to protect the American way, and those who never came home. They stood in the
 face of dangers both known and unknown and protected us from all that
 threatened.
       And for the families of the fallen, we realize that our words are small solace
 for the loss that you have suffered. We want you to know how much we treasure
 and honor what these sons and husbands and fathers and brothers have sacrificed
 for us all. And speaking on behalf of all Texans, I want you to know that we will
 work every single day to deserve what your family has sacrificed for us. We will
 continue on the homeland to fight for the freedom that they died for on lands
 across the globe. On this day, we say thank you, and we remember those who
 served our country and who died for liberty. May God bless our military, and may
 God forever bless the United States of America.
     Governor Abbott presented a flag flown over the Capitol to family members
 of Master Sergeant Jonathan J.iDunbar, Army (Austin), as Senator Campbell and
 Representative Flynn read the names of additional fallen soldiers:
       Sergeant Cameron A.iMeddock, Army (Spearman); Specialist
       Alexander W. Missildine, Army (Tyler); Chief Warrant Officer 2 Lee
       M. Smith, Army (Arlington); Specialist Allen L. StigleriJr., Army
       (Arlington).
      The assemblage observed a moment of silence broken by "Amazing Grace"
 sung by Technical Sergeant Gina Lavender, followed by a 21-gun salute fired by
 the Texas Army National Guard Salute Battery.
     "Taps" was played in the gallery by Sergeant Christopher Washington and a
 bagpipe processional was performed by Sergeant Eric Morgan on the floor of the
 house chamber.
     Lieutenant Colonel Harold Bender, Texas Army National Guard,
 pronounced the benediction.
       Representative Flynn addressed the house and guests, speaking as follows:
      It is a great honor to pay tribute to those brave men on this day. For many of
 us who have served, it is a reminder of those people that we served with that
 didn t’ return. I want to thank all the members for being here today to memorialize
 these brave men forever in our hearts and in our state ’s memory. Without the
 sacrifices of men like the ones we honor here today, and many before them, we
 would not have the freedoms that we enjoy today. So I ask that you all remember
 the names of these men, your former constituents, in all that you do. May God
 bless each of you, the United States of America, and the great State of Texas.
      Speaker Bonnen thanked the attendees of the ceremony with the following
 closing remarks:
      Speaking on behalf of those who work and serve in our state Capitol, thank
 you to everyone who attended today s’ memorial ceremony. Memorial Day is a
 sombering reminder of the extraordinary cost of our freedom. It is our duty as a
 grateful nation to recognize those who have paid that price today and every day.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                          5921

                                HOUSE AT EASE
     At 10:50 a.m., the chair announced that the house would stand at ease
 pending the departure of guests.
      The chair called the house to order at 11:06 a.m.
                                     RECESS
      Representative Krause moved that the house recess until 4:30 p.m. today.
      The motion prevailed.
      The house accordingly, at 11:07 a.m., recessed until 4:30 p.m. today.
                              AFTERNOON SESSION
      The house met at 4:31ip.m. and was called to order by the speaker.
                   HR 2184 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2184, suspending the limitations on the conferees for
 SBi2.
                   HR 2186 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2186, suspending the limitations on the conferees for
 HBi3.
                   HR 2179 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2179, suspending the limitations on the conferees for
 SBi500.
                   HR 2180 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2180, suspending the limitations on the conferees for
 HBi1.
                       MESSAGES FROM THE SENATE
      Messages from the senate were received at this time (see the addendum to
 the daily journal, Messages from the Senate, Message No. 1).
                       LEAVE OF ABSENCE GRANTED
      The following member was granted leave of absence for the remainder of
 today because of important business:
      J.D. Johnson on motion of C. Bell.
                              HCR 186 - ADOPTED
                                  (by Darby)
      The following privileged resolution was laid before the house:
5922             86th LEGISLATURE — REGULAR SESSION

       HCR 186
      WHEREAS, HBi3371 has been adopted by the senate and the house of
 representatives and is being prepared for enrollment; and
      WHEREAS, The bill contains a technical error that should be corrected;
 now, therefore, be it
      RESOLVED by the 86th Legislature of the State of Texas, That the enrolling
 clerk of the house of representatives be instructed to make the following
 correction to the enrolled version of HBi3371:
      In SECTION 1 of the bill, strike added Section 250.009(c)(2), Local
 Government Code, and substitute the following:
          (2)iiimposes installation or operational requirements for:
                (A)iithe battery-charged fence that are inconsistent with the
 standards set by the International Electrotechnical Commission as published on
 June 29, 2018; or
                (B)iian alarm system described by Subsection (b); or
      HCR 186 was adopted by (Record 1927): 146 Yeas, 0 Nays, 1 Present, not
 voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione; Clardy; Cole;
 Coleman; Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel;
 Dominguez; Dutton; Farrar; Fierro; Flynn; Frank; Frullo; Geren;
 Gervin-Hawkins; Goldman; González, J.; González, M.; Goodwin; Guerra;
 Guillen; Gutierrez; Harless; Harris; Hefner; Hernandez; Herrero; Hinojosa;
 Holland; Howard; Huberty; Hunter; Israel; Johnson, J.E.; Kacal; King, K.; King,
 P.; King, T.; Klick; Krause; Kuempel; Lambert; Landgraf; Lang; Larson; Leach;
 Leman; Longoria; Lopez; Lozano; Lucio; Martinez; Martinez Fischer; Metcalf;
 Meyer; Meza; Middleton; Miller; Minjarez; Moody; Morales; Morrison; Muñoz;
 Murphy; Murr; Neave; Nevárez; Noble; Oliverson; Ortega; Pacheco; Paddie;
 Parker; Patterson; Paul; Perez; Phelan; Price; Ramos; Raney; Raymond;
 Reynolds; Rodriguez; Romero; Rose; Rosenthal; Sanford; Schaefer; Shaheen;
 Sheffield; Sherman; Shine; Smith; Smithee; Springer; Stephenson; Stickland;
 Stucky; Swanson; Talarico; Thierry; Thompson, E.; Thompson, S.; Tinderholt;
 Toth; Turner, C.; Turner, J.; VanDeaver; Vo; Walle; White; Wilson; Wray; Wu;
 Zedler; Zerwas; Zwiener.
       Present, not voting — Mr. Speaker(C).
       Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
                              HCR 187 - ADOPTED
                                  (by Miller)
       The following privileged resolution was laid before the house:
       HCR 187
      WHEREAS, HBi4712 has been adopted by the house of representatives and
 the senate and is being prepared for enrollment; and
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                        5923

      WHEREAS, The bill contains a technical error that should be corrected;
 now, therefore, be it
      RESOLVED by the 86th Legislature of the State of Texas, That the enrolling
 clerk of the house of representatives be instructed to make the following
 correction:
      Strike the SECTION of the bill adding Section 8334.003, Special District
 Local Laws Code, as added by Floor Amendment No.i1 by Creighton.
      HCR 187 was adopted by (Record 1928): 146 Yeas, 0 Nays, 1 Present, not
 voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione; Clardy; Cole;
 Coleman; Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel;
 Dominguez; Dutton; Farrar; Fierro; Flynn; Frank; Frullo; Geren;
 Gervin-Hawkins; Goldman; González, J.; González, M.; Goodwin; Guerra;
 Guillen; Gutierrez; Harless; Harris; Hefner; Hernandez; Herrero; Hinojosa;
 Holland; Howard; Huberty; Hunter; Israel; Johnson, J.E.; Kacal; King, K.; King,
 P.; King, T.; Klick; Krause; Kuempel; Lambert; Landgraf; Lang; Larson; Leach;
 Leman; Longoria; Lopez; Lozano; Lucio; Martinez; Martinez Fischer; Metcalf;
 Meyer; Meza; Middleton; Miller; Minjarez; Moody; Morales; Morrison; Muñoz;
 Murphy; Murr; Neave; Nevárez; Noble; Oliverson; Ortega; Pacheco; Paddie;
 Parker; Patterson; Paul; Perez; Phelan; Price; Ramos; Raney; Raymond;
 Reynolds; Rodriguez; Romero; Rose; Rosenthal; Sanford; Schaefer; Shaheen;
 Sheffield; Sherman; Shine; Smith; Smithee; Springer; Stephenson; Stickland;
 Stucky; Swanson; Talarico; Thierry; Thompson, E.; Thompson, S.; Tinderholt;
 Toth; Turner, C.; Turner, J.; VanDeaver; Vo; Walle; White; Wilson; Wray; Wu;
 Zedler; Zerwas; Zwiener.
      Present, not voting — Mr. Speaker(C).
      Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
       HB 2402 - CONFERENCE COMMITTEE REPORT ADOPTED
     Representative Geren submitted the following conference committee report
 on HBi2402:
                                                    Austin, Texas, Mayi23, 2019
 The Honorable Dan Patrick
 President of the Senate
 The Honorable Dennis Bonnen
 Speaker of the House of Representatives
       Sirs: We, your conference committee, appointed to adjust the differences
 between the senate and the house of representatives on HBi2402 have had the
 same under consideration, and beg to report it back with the recommendation that
 it do pass in the form and text hereto attached.
 Fallon                                      Geren
5924            86th LEGISLATURE — REGULAR SESSION

 Alvarado                                   Kuempel
 Flores                                     Goldman
 Hancock                                    T. King
 Paxton
 On the part of the senate                  On the part of the house
      HBi2402, A bill to be entitled An Act relating to the eligibility of certain
 events to receive funding through the Major Events Reimbursement Program.
      BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
      SECTIONi1.iiSections 5A(a)(4) and (5), Chapter 1507 (SBi456), Acts of the
 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon ’s Texas Civil
 Statutes), are amended to read as follows:
            (4)ii"Event" means a Super Bowl, a National Collegiate Athletic
 Association Final Four tournament game, the National Basketball Association
 All-Star Game, the X Games, the National Hockey League All-Star Game, the
 Major League Baseball All-Star Game, a game of the National Collegiate
 Athletic Association Bowl Championship Series or its successor or a National
 Collegiate Athletic Association Division I Football Bowl Subdivision postseason
 playoff or championship game, a Big 12 Football Conference Championship
 game, the National Collegiate Athletic Association men ’s or women ’s lacrosse
 championships, a World Cup Soccer game, the World Cup soccer tournament, the
 Major League Soccer All-Star Game, the Major League Soccer Cup, the
 Professional Rodeo Cowboys Association National Finals Rodeo, an Elite Rodeo
 Association World Championship, the United States Open Championship, the
 World Games, a national collegiate championship of an amateur sport sanctioned
 by the national governing body of the sport that is recognized by the United
 States Olympic Committee, an Olympic activity, including a Junior or Senior
 activity, training program, or feeder program sanctioned by the United States
 Olympic Committee ’s Community Olympic Development Program, the Amateur
 Athletic Union Junior Olympic Games, a mixed martial arts championship, a
 World Wrestling Entertainment WrestleMania event, the Breeders ’ Cup World
 Championships, a Formula One automobile race, the Moto Grand Prix of the
 United States, the National Association for Stock Car Auto Racing (NASCAR)
 All-Star Race, the season-ending Championship Race for the National
 Association for Stock Car Auto Racing (NASCAR), the Academy of Country
 Music Awards, the National Cutting Horse Association Triple Crown, a
 championship event in the National Reined Cow Horse Association (NRCHA)
 Championship Series, a CONVRG conference, a national political convention of
 the Republican National Committee or the Democratic National Committee, a
 presidential general election debate, or the largest event held each year at a sports
 entertainment venue in this state with a permanent seating capacity, including
 grandstand and premium seating, of not less than 125,000. The term includes any
 activities related to or associated with an event.
            (5)ii"Site selection organization" means:
                 (A)iithe National Football League, the National Collegiate Athletic
 Association, the Big 12 Conference, the National Basketball Association, ESPN
 or an affiliate, the National Hockey League, Major League Baseball, the
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                           5925

 Federation Internationale de Football Association (FIFA), the International World
 Games Association, the National Association for Stock Car Auto Racing
 (NASCAR), Dorna Sports, the Amateur Athletic Union, the Professional Rodeo
 Cowboys Association, the Elite Rodeo Association, Major League Soccer, the
 United States Golf Association, or the United States Olympic Committee;
                (B)iithe national governing body of a sport that is recognized by the
 United States Olympic Committee, the National Thoroughbred Racing
 Association, Formula One Management Limited, or the Federation Internationale
 de l ’Automobile;
                (C)iithe Academy of Country Music;
                (D)iithe National Cutting Horse Association;
                (E)iithe National Reined Cow Horse Association (NRCHA);
                (F)iiEncore Live;
                (G)iithe Republican National Committee or the Democratic
 National Committee;
                (H)i[(F)]iithe Ultimate Fighting Championship;
                (I)iiWorld Wrestling Entertainment; or
                (J)i[(G)]iithe Commission on Presidential Debates.
       SECTIONi2.iiThis Act takes effect immediately if it receives a vote of
 two-thirds of all the members elected to each house, as provided by Section 39,
 Article III, Texas Constitution. If this Act does not receive the vote necessary for
 immediate effect, this Act takes effect September 1, 2019.
     Representative Geren moved to adopt the conference committee report on
 HBi2402.
      The motion to adopt the conference committee report on HBi2402 prevailed
 by (Record 1929): 122 Yeas, 18 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bonnen; Bowers; Buckley; Bucy;
 Burrows; Button; Calanni; Canales; Capriglione; Clardy; Cole; Coleman; Collier;
 Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel; Dominguez; Dutton;
 Farrar; Fierro; Flynn; Frank; Frullo; Geren; Gervin-Hawkins; Goldman;
 González, J.; González, M.; Goodwin; Guerra; Guillen; Gutierrez; Harless;
 Harris; Hefner; Hernandez; Herrero; Hinojosa; Holland; Howard; Huberty;
 Hunter; Israel; Johnson, J.E.; Kacal; King, K.; King, P.; King, T.; Klick; Krause;
 Kuempel; Lambert; Larson; Leach; Leman; Longoria; Lopez; Lozano; Lucio;
 Martinez; Martinez Fischer; Metcalf; Meyer; Meza; Minjarez; Moody; Morales;
 Morrison; Murphy; Nevárez; Noble; Ortega; Pacheco; Paddie; Parker; Perez;
 Phelan; Price; Ramos; Raney; Raymond; Rodriguez; Rose; Rosenthal; Sanford;
 Sheffield; Sherman; Shine; Smith; Smithee; Springer; Stephenson; Stucky;
 Talarico; Thierry; Thompson, S.; Toth; Turner, C.; Turner, J.; VanDeaver; Vo;
 Walle; White; Wray; Wu; Zerwas.
     Nays — Bohac; Burns; Cain; Landgraf; Lang; Middleton; Miller; Muñoz;
 Murr; Oliverson; Patterson; Paul; Shaheen; Stickland; Swanson; Thompson, E.;
 Tinderholt; Wilson.
5926            86th LEGISLATURE — REGULAR SESSION

       Present, not voting — Mr. Speaker(C).
       Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
       Absent — Neave; Reynolds; Romero; Schaefer; Zedler; Zwiener.
                           STATEMENTS OF VOTE
      When Record No. 1929 was taken, I was shown voting yes. I intended to
 vote no.
                                                                          Ashby
      When Record No. 1929 was taken, I was shown voting yes. I intended to
 vote no.
                                                                         Hefner
      When Record No. 1929 was taken, I was shown voting yes. I intended to
 vote no.
                                                                        Holland
      When Record No. 1929 was taken, I was shown voting yes. I intended to
 vote no.
                                                                         Leman
      When Record No. 1929 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                          Neave
      When Record No. 1929 was taken, I was in the house but away from my
 desk. I would have voted no.
                                                                        Romero
      When Record No. 1929 was taken, I was in the house but away from my
 desk. I would have voted no.
                                                                       Schaefer
      When Record No. 1929 was taken, I was shown voting yes. I intended to
 vote no.
                                                                          White
      When Record No. 1929 was taken, my vote failed to register. I would have
 voted no.
                                                                          Zedler
      When Record No. 1929 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                        Zwiener
         SB 18 - CONFERENCE COMMITTEE REPORT ADOPTED
       Representative Geren submitted the conference committee report on SBi18.
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                         5927

     Representative Geren moved to adopt the conference committee report on
 SBi18.
     The motion to adopt the conference committee report on SBi18 prevailed by
 (Record 1930): 106 Yeas, 37 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anderson; Ashby; Bailes; Bell, C.; Bell, K.;
 Biedermann; Bohac; Bonnen; Buckley; Burns; Burrows; Button; Cain; Calanni;
 Capriglione; Clardy; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel; Dutton;
 Farrar; Fierro; Flynn; Frank; Frullo; Geren; Goldman; Guerra; Guillen; Gutierrez;
 Harless; Harris; Hefner; Hernandez; Holland; Huberty; Hunter; Kacal; King, K.;
 King, P.; King, T.; Klick; Krause; Kuempel; Lambert; Landgraf; Lang; Larson;
 Leach; Leman; Longoria; Lozano; Lucio; Martinez; Metcalf; Meza; Middleton;
 Miller; Moody; Morrison; Murphy; Murr; Neave; Nevárez; Noble; Oliverson;
 Pacheco; Paddie; Parker; Patterson; Paul; Phelan; Price; Raney; Raymond;
 Reynolds; Romero; Sanford; Schaefer; Shaheen; Sheffield; Shine; Smith;
 Smithee; Springer; Stephenson; Stickland; Stucky; Swanson; Thompson, E.;
 Tinderholt; Toth; Turner, C.; Turner, J.; VanDeaver; White; Wilson; Wray; Wu;
 Zedler; Zerwas.
     Nays — Anchia; Beckley; Bernal; Blanco; Bowers; Canales; Cole;
 Coleman; Collier; Cortez; Dominguez; Gervin-Hawkins; González, J.; González,
 M.; Goodwin; Herrero; Hinojosa; Howard; Israel; Lopez; Martinez Fischer;
 Minjarez; Morales; Muñoz; Ortega; Perez; Ramos; Rodriguez; Rose; Rosenthal;
 Sherman; Talarico; Thierry; Thompson, S.; Vo; Walle; Zwiener.
      Present, not voting — Mr. Speaker(C).
      Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
      Absent — Bucy; Johnson, J.E.; Meyer.
                           STATEMENTS OF VOTE
      When Record No. 1930 was taken, my vote failed to register. I would have
 voted no.
                                                                     J.E. Johnson
      When Record No. 1930 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                           Meyer
      When Record No. 1930 was taken, I was shown voting yes. I intended to
 vote no.
                                                                          Romero
       SB 1511 - CONFERENCE COMMITTEE REPORT ADOPTED
     Representative Cyrier submitted the conference committee report on
 SBi1511.
     Representative Cyrier moved to adopt the conference committee report on
 SBi1511.
5928            86th LEGISLATURE — REGULAR SESSION

      The motion to adopt the conference committee report on SBi1511 prevailed
 by (Record 1931): 144 Yeas, 0 Nays, 2 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione; Clardy; Cole;
 Coleman; Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Dominguez;
 Dutton; Farrar; Fierro; Flynn; Frank; Frullo; Geren; Gervin-Hawkins; Goldman;
 González, J.; González, M.; Goodwin; Guerra; Guillen; Gutierrez; Harless;
 Harris; Hefner; Hernandez; Herrero; Hinojosa; Holland; Howard; Huberty;
 Hunter; Israel; Johnson, J.E.; King, K.; King, P.; King, T.; Klick; Krause;
 Kuempel; Lambert; Landgraf; Lang; Larson; Leach; Leman; Longoria; Lopez;
 Lozano; Lucio; Martinez; Martinez Fischer; Metcalf; Meyer; Meza; Middleton;
 Miller; Minjarez; Moody; Morales; Morrison; Muñoz; Murphy; Murr; Neave;
 Nevárez; Noble; Oliverson; Ortega; Pacheco; Paddie; Parker; Patterson; Paul;
 Perez; Phelan; Price; Ramos; Raney; Raymond; Reynolds; Rodriguez; Romero;
 Rose; Rosenthal; Sanford; Schaefer; Shaheen; Sheffield; Sherman; Shine; Smith;
 Smithee; Springer; Stephenson; Stickland; Stucky; Swanson; Talarico; Thierry;
 Thompson, E.; Thompson, S.; Tinderholt; Toth; Turner, C.; Turner, J.;
 VanDeaver; Vo; Walle; White; Wilson; Wray; Wu; Zedler; Zerwas; Zwiener.
       Present, not voting — Mr. Speaker(C); Deshotel.
       Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
       Absent — Kacal.
        HB 812 - CONFERENCE COMMITTEE REPORT ADOPTED
     Representative White submitted the following conference committee report
 on HBi812:
                                                      Austin, Texas, May 21, 2019
 The Honorable Dan Patrick
 President of the Senate
 The Honorable Dennis Bonnen
 Speaker of the House of Representatives
       Sirs: We, your conference committee, appointed to adjust the differences
 between the senate and the house of representatives on HBi812 have had the
 same under consideration, and beg to report it back with the recommendation that
 it do pass in the form and text hereto attached.
 Whitmire                                    White
 Buckingham                                  Allen
 Huffman                                     Bailes
 Miles                                       Neave
 Perry                                       Stephenson
 On the part of the senate                   On the part of the house
      HBi812, A bill to be entitled An act relating to the amount of the health care
 services fee paid by certain inmates.
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                          5929

      BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
      SECTIONi1.iiSection 501.063(a)(1), Government Code, is amended to read
 as follows:
          (1)iiAn inmate confined in a facility operated by or under contract with
 the department, other than a halfway house, who initiates a visit to a health care
 provider shall pay a health care services fee to the department in the amount of
 $13.55iper visit, except that an inmate may not be required to pay more than
 $100iduring a state fiscal year [$100].
      SECTIONi2.iiSection 501.063(a)(2), Government Code, is repealed.
      SECTIONi3.iiThis Act takes effect September 1, 2019.
     Representative White moved to adopt the conference committee report on
 HBi812.
      The motion to adopt the conference committee report on HBi812 prevailed
 by (Record 1932): 144 Yeas, 0 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione; Clardy; Cole;
 Coleman; Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel;
 Dominguez; Dutton; Farrar; Fierro; Flynn; Frank; Frullo; Geren;
 Gervin-Hawkins; Goldman; González, J.; González, M.; Goodwin; Guerra;
 Guillen; Gutierrez; Harless; Harris; Hefner; Hernandez; Herrero; Hinojosa;
 Holland; Howard; Huberty; Hunter; Israel; Johnson, J.E.; Kacal; King, K.; King,
 P.; King, T.; Klick; Krause; Kuempel; Lambert; Landgraf; Lang; Larson; Leach;
 Leman; Longoria; Lopez; Lozano; Lucio; Martinez; Martinez Fischer; Metcalf;
 Meyer; Meza; Middleton; Miller; Minjarez; Morales; Morrison; Muñoz; Murphy;
 Murr; Neave; Nevárez; Noble; Oliverson; Ortega; Pacheco; Paddie; Parker;
 Patterson; Paul; Perez; Phelan; Price; Ramos; Raney; Raymond; Reynolds;
 Rodriguez; Romero; Rose; Rosenthal; Sanford; Shaheen; Sheffield; Sherman;
 Shine; Smith; Smithee; Springer; Stephenson; Stickland; Stucky; Swanson;
 Talarico; Thierry; Thompson, E.; Thompson, S.; Tinderholt; Toth; Turner, C.;
 Turner, J.; VanDeaver; Vo; Walle; White; Wilson; Wray; Wu; Zedler; Zerwas;
 Zwiener.
      Present, not voting — Mr. Speaker(C).
      Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
      Absent — Moody; Schaefer.
                            STATEMENT OF VOTE
      When Record No. 1932 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                          Schaefer
        SB 568 - CONFERENCE COMMITTEE REPORT ADOPTED
     Representative G. Bonnen submitted the conference committee report on
 SBi568.
5930            86th LEGISLATURE — REGULAR SESSION

     Representative G. Bonnen moved to adopt the conference committee report
 on SBi568.
      The motion to adopt the conference committee report on SBi568 prevailed
 by (Record 1933): 131 Yeas, 10 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Calanni; Canales; Capriglione; Clardy; Cole; Coleman;
 Collier; Cortez; Craddick; Cyrier; Darby; Dean; Deshotel; Dominguez; Dutton;
 Farrar; Fierro; Flynn; Frullo; Geren; Gervin-Hawkins; Goldman; González, J.;
 González, M.; Goodwin; Guerra; Guillen; Gutierrez; Harris; Hernandez; Herrero;
 Hinojosa; Holland; Howard; Huberty; Hunter; Israel; Johnson, J.E.; Kacal; King,
 K.; King, P.; King, T.; Klick; Kuempel; Lambert; Landgraf; Larson; Leach;
 Leman; Longoria; Lopez; Lozano; Lucio; Martinez; Martinez Fischer; Metcalf;
 Meyer; Meza; Miller; Minjarez; Moody; Morales; Morrison; Muñoz; Murphy;
 Nevárez; Oliverson; Ortega; Pacheco; Paddie; Parker; Paul; Perez; Phelan; Price;
 Ramos; Raney; Raymond; Reynolds; Rodriguez; Rose; Rosenthal; Sanford;
 Shaheen; Sheffield; Sherman; Shine; Smith; Smithee; Springer; Stephenson;
 Stickland; Stucky; Swanson; Talarico; Thierry; Thompson, E.; Thompson, S.;
 Tinderholt; Toth; Turner, C.; Turner, J.; VanDeaver; Vo; Walle; White; Wray; Wu;
 Zedler; Zerwas; Zwiener.
      Nays — Cain; Frank; Harless; Hefner; Krause; Lang; Murr; Noble;
 Patterson; Wilson.
       Present, not voting — Mr. Speaker(C).
       Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
       Absent — Davis, Y.; Middleton; Neave; Romero; Schaefer.
                           STATEMENTS OF VOTE
      When Record No. 1933 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                         Y. Davis
      When Record No. 1933 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                       Middleton
      When Record No. 1933 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                           Neave
      When Record No. 1933 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                          Romero
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                        5931

      When Record No. 1933 was taken, I was in the house but away from my
 desk. I would have voted no.
                                                                        Schaefer
      When Record No. 1933 was taken, I was shown voting yes. I intended to
 vote no.
                                                                          Zedler
       HB 4749 - CONFERENCE COMMITTEE REPORT ADOPTED
      Representative Schaefer submitted the following conference committee
 report on HBi4749:
                                                    Austin, Texas, May 24, 2019
 The Honorable Dan Patrick
 President of the Senate
 The Honorable Dennis Bonnen
 Speaker of the House of Representatives
       Sirs: We, your conference committee, appointed to adjust the differences
 between the senate and the house of representatives on HBi4749 have had the
 same under consideration, and beg to report it back with the recommendation that
 it do pass in the form and text hereto attached.
 Hughes                                      Schaefer
 Nichols                                     Hefner
 Rodriguez                                   Shaheen
 Schwertner                                  Lang
 Fallon
 On the part of the senate                   On the part of the house
      HBi4749, A bill to be entitled An Act relating to the creation of the Rose
 City Municipal Utility District; granting a limited power of eminent domain;
 providing authority to issue bonds; providing authority to impose assessments
 and fees.
      BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
      SECTIONi1.iiSubtitle F, Title 6, Special District Local Laws Code, is
 amended by adding Chapter 7958 to read as follows:
        CHAPTER 7958. ROSE CITY MUNICIPAL UTILITY DISTRICT
                    SUBCHAPTER A. GENERAL PROVISIONS
      Sec.i7958.0101.iiDEFINITIONS. In this chapter:
           (1)ii"Board" means the district ’s board of directors.
           (2)ii"City" means the City of Tyler.
           (3)ii"Commission" means the Texas Commission on Environmental
 Quality.
           (4)ii"Director" means a board member.
           (5)ii"District" means the Rose City Municipal Utility District.
           (6)ii"Utility commission" means the Public Utility Commission of
 Texas.
5932               86th LEGISLATURE — REGULAR SESSION

       Sec.i7958.0102.iiNATURE OF DISTRICT. The district is a municipal utility
 district created under Section 59, Article XVI, Texas Constitution.
       Sec.i7958.0103.iiCONFIRMATION ELECTION REQUIRED. The initial
 directors appointed under Section 7958.0201 shall hold an election to confirm the
 creation of the district as provided by Section 49.102, Water Code.
       Sec.i7958.0104.iiCONSENT OF MUNICIPALITY REQUIRED. The
 temporary directors may not hold an election under Section 7958.0103 until each
 municipality in whose corporate limits or extraterritorial jurisdiction the district is
 located has consented by ordinance or resolution to the creation of the district and
 to the inclusion of land in the district.
       Sec.i7958.0105.iiFINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
 The district is created to serve a public purpose and benefit.
       (b)iiThe district is created to accomplish the purposes of a municipal utility
 district as provided by general law and Section 59, Article XVI, Texas
 Constitution.
       Sec.i7958.0106.iiINITIAL DISTRICT TERRITORY. (a) The district is
 initially composed of the territory described by Section 2 of the Act enacting this
 chapter.
       (b)iiThe boundaries and field notes contained in Section 2 of the Act
 enacting this chapter form a closure. A mistake made in the field notes or in
 copying the field notes in the legislative process does not affect the district ’s:
            (1)iiorganization, existence, or validity;
            (2)iiright to issue any type of bond for the purposes for which the
 district is created or to pay the principal of and interest on a bond; or
            (3)iilegality or operation.
                        SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.i7958.0201.iiGOVERNING BODY; TERMS. (a) The district is
 governed by a board of five directors appointed as follows:
            (1)iithree directors appointed by the city; and
            (2)iitwo directors appointed by the Smith County Commissioners Court.
       (b)iiDirectors serve staggered four-year terms.
       (c)iiThe appointing entities shall appoint the initial directors not later than
 September 1, 2020. The initial directors appointed under Subsection (a)(1) serve
 a four-year term, and the directors appointed under Subsection (a)(2) serve a
 two-year term. This subsection expires September 1, 2023.
       S e c . i 7 9 5 8 . 0 2 0 2 . i i Q U A L I F I C AT I O N S O F D I R E C T O R S . ( a )
 Notwithstanding any other law:
            (1)iian officer or employee of the city may serve as a director of the
 district; and
            (2)iia member of the governing body of the city may serve as a director
 of the district.
       (b)iiA person who qualifies to serve as a director is qualified to participate in
 all votes pertaining to the business of the district, subject to Section 49.058,
 Water Code.
       (c)iiSection 49.052, Water Code, does not apply to the district.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5933

       Sec.i7958.0203.iiCOMPENSATION; REIMBURSEMENT. A director
 serves without compensation but may receive reimbursement for actual expenses
 reasonably and necessarily incurred while engaging in activities on behalf of the
 district.
                     SUBCHAPTER C. POWERS AND DUTIES
       Sec.i7958.0301.iiGENERAL POWERS AND DUTIES. The district has the
 powers and duties necessary to accomplish the purposes for which the district is
 created.
       Sec.i7958.0302.iiMUNICIPAL UTILITY DISTRICT POWERS AND
 DUTIES. (a) Subject to Subsection (b), the district has the powers and duties
 provided by the general law of this state, including Chapters 49 and 54, Water
 Code, applicable to municipal utility districts created under Section 59, Article
 XVI, Texas Constitution.
       (b)iiThe district may provide only sewer and wastewater services, including
 the acquisition, construction, contracting, financing, maintenance, operation, and
 planning of sewer and wastewater facilities or systems.
       Sec.i7958.0303.iiCOMPLIANCE WITH MUNICIPAL CONSENT
 ORDINANCE OR RESOLUTION. The district shall comply with all applicable
 requirements of any ordinance or resolution that is adopted under Section
 54.016ior 54.0165, Water Code, and that consents to the creation of the district or
 to the inclusion of land in the district.
       Sec.i7958.0304.iiLIMITED POWER OF EMINENT DOMAIN. The district
 may exercise the power of eminent domain only for the limited purpose of
 acquiring or constructing sewer and wastewater facilities.
       Sec.i7958.0305.iiCONTRACTING. The district may contract with a
 political subdivision or private operator to operate and maintain the district ’s
 sewer and wastewater facilities.
       Sec.i7958.0306.iiCERTIFICATE OF PUBLIC CONVENIENCE AND
 NECESSITY. (a) Notwithstanding Chapter 13, Water Code, the district may
 provide sewer and wastewater service without a certificate of convenience and
 necessity.
       (b)iiNot later than the 30th day before the date the district intends to provide
 sewer and wastewater service, the district must notify the utility commission and
 each retail public utility that provides sewer and wastewater services in the
 district.
       (c)iiIf the district does not acquire a retail public utility that holds a
 certificate of public convenience and necessity for providing sewer and
 wastewater service in the district territory, the district shall:
            (1)iinot later than the 30th day after the date the district begins
 providing sewer and wastewater service, petition the utility commission to
 decertify the territory inside the district of the existing certificate holder; and
            (2)iicompensate the existing certificate holder in an amount determined
 by the utility commission.
       Sec.i7958.0307.iiPROFESSIONAL SERVICES. The district may contract
 with a political subdivision to provide professional services for the district,
 including legal services related to the exercise of eminent domain.
5934             86th LEGISLATURE — REGULAR SESSION

       Sec.i7958.0308.iiSUPERMAJORITY VOTE REQUIRED FOR CERTAIN
 ACTIONS. At least four board members must vote in favor of a resolution before
 the board may:
            (1)iiincrease rates or assessments by more than five percent;
            (2)iiincur debt or increase the amount of debt that the district has
 outstanding; or
            (3)iiorder a dissolution election under Section 7958.0601.
             SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.i7958.0401.iiELECTIONS REGARDING BONDS. The district may
 issue, without an election, bonds and other obligations secured by revenue other
 than ad valorem taxes.
       Sec.i7958.0402.iiPROHIBITION ON IMPOSITION OF TAXES. (a) The
 district may not impose an ad valorem tax for any purpose.
       (b)iiSection 49.107, Water Code, does not apply to the district.
              SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
       Sec.i7958.0501.iiAUTHORITY TO ISSUE BONDS AND OTHER
 OBLIGATIONS. The district may issue bonds or other obligations payable
 wholly or partly from impact fees, revenue, contract payments, grants, or other
 district money, or any combination of those sources, to pay for any authorized
 district purpose.
                  SUBCHAPTER F. DISSOLUTION BY ELECTION
       Sec.i7958.0601.iiDISSOLUTION ELECTION CALLED BY BOARD. The
 board may order an election on the question of dissolving the district and
 transferring the district ’s assets and obligations to another political subdivision of
 the state, if the board concludes after a public hearing held on the issue that it is in
 the best interest of the district ’s residents and of the persons served by the district
 for the district to dissolve.
       Sec.i7958.0602.iiDISSOLUTION ELECTION CALLED BY PETITION.
 The board shall order an election on the question of dissolving the district and
 transferring the district s’ assets and obligations to another political subdivision of
 the state if the board receives a petition requesting an election on that question.
 The petition must be signed by at least 15 percent of the district ’s registered
 voters.
       Sec.i7958.0603.iiELECTION ORDER. An order calling an election held
 under this subchapter must state:
            (1)iithe nature of the election, including the proposition that is to appear
 on the ballot;
            (2)iithe date of the election;
            (3)iithe hours during which the polls will be open; and
            (4)iithe location of the polling places.
       Sec.i7958.0604.iiNOTICE OF DISSOLUTION ELECTION. (a) The board
 shall give notice of an election ordered under this subchapter by publishing a
 substantial copy of the election order in a newspaper with general circulation in
 the district once a week for two consecutive weeks.
       (b)iiThe first publication must appear not later than the 30th day before the
 date set for the election.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5935

       Sec.i7958.0605.iiAPPLICABILITY OF UNIFORM ELECTION DATES.
 Section 41.001, Election Code, does not apply to an election held under this
 subchapter.
       Sec.i7958.0606.iiELECTION RESULTS. (a) If a majority of the votes in an
 election held under this subchapter favor dissolution, the board shall order that
 the district be dissolved.
       (b)iiIf a majority of the votes in an election held under this subchapter do not
 favor dissolution, the board shall continue to administer the district, and another
 election on the question of dissolution may not be held before the first
 anniversary of the date of the most recent election held on the question of
 dissolving the district.
       Sec.i7958.0607.iiTRANSFER OF ASSETS, OBLIGATIONS, AND
 PROVISION OF SERVICES. (a) As soon as practicable following the issuance
 of an order under Section 7958.0606(a), the board shall:
            (1)iibegin the process of transferring the district ’s assets and obligations
 to one or more political subdivisions in a fair and equitable manner; and
            (2)iiadminister the property, assets, and debts of the district until all
 money has been disposed of and all district debts have been paid or settled.
       (b)iiIf the district provides services, the board or a receiver appointed under
 Section 7958.0608 shall make arrangements for the uninterrupted provision of
 services.
       Sec.i7958.0608.iiRECEIVER. If the executive director of the commission
 determines that the board has failed to make substantial progress in transferring
 the district ’s assets and obligations to one or more political subdivisions in a fair
 and equitable manner, the executive director shall appoint a receiver for the
 district.
       Sec.i7958.0609.iiREPORT; DISSOLUTION ORDER. (a) After the district
 has transferred all of the district ’s assets and obligations and has arranged for the
 continued provision of services provided by the district, if applicable, the board
 shall file a written report with the commission summarizing the board ’s actions in
 dissolving the district.
       (b)iiNot later than the 10th day after the date the commission receives the
 report and determines that the requirements of this subchapter have been fulfilled,
 the commission shall enter an order dissolving the district.
                     SUBCHAPTER G. ANNEXATION OF LAND
       Sec.i7958.0701.iiGENERAL ANNEXATION PROVISIONS. (a) Except as
 provided by this section, Subchapter J, Chapter 49, Water Code, applies to the
 district.
       (b)iiIn addition to the requirements of Section 49.302(b), Water Code, the
 petition must also be signed by a majority of registered voters in the defined area
 to be annexed.
       Sec.i7958.0702.iiRETALIATION FOR ANNEXATION DISAPPROVAL
 PROHIBITED. (a) The disapproval of the proposed annexation of an area by the
 district does not affect any existing legal obligation of the district to continue to
 provide services in the area, including wastewater services.
5936            86th LEGISLATURE — REGULAR SESSION

       (b)iiThe district may not initiate a rate proceeding solely because of the
 disapproval of a proposed annexation of an area.
       SECTIONi2.iiThe Rose City Municipal Utility District initially includes all
 the territory contained in the following area:
 BEING a 21,118 acre tract of land situated in Smith County, Texas, said
 21,118iacre tract being more completely described by metes and bounds as
 follows:
 BEGINNING at the intersection of the centerline of State Highway No.i155 with
 State Highway 57 (West Grande Boulevard);
 THENCE Easterly with the centerline of West Grande Boulevard to its
 intersection with F.M. 2493 (Old Jacksonville Highway);
 THENCE Southwesterly with the centerline of F.M. 2493 (Old Jacksonville
 Highway) to its intersection with Three Lakes Parkway;
 THENCE Southeasterly with the centerline of Three Lakes Parkway to its
 intersection with Dueling Oaks;
 THENCE Easterly with the centerline of Dueling Oaks to its intersection with
 Hollytree Drive;
 THENCE Southwesterly with the centerline of Hollytree Drive to its intersection
 with Maple Lane;
 THENCE Southerly with the centerline of Maple Lane to its intersection with
 West Cumberland Road;
 THENCE Easterly with the centerline of West Cumberland Road to its
 intersection with U.S. Highway 69 (South Broadway Ave.);
 THENCE Southerly with the centerline of U.S. Highway 69 (South Broadway
 Ave.) to its intersection with Loop 49;
 THENCE Northeasterly with the centerline of Loop 49 to its intersection with
 F.M. 756 (South Paluxy Drive);
 THENCE Southeasterly with the centerline of F.M. 756 (South Paluxy Drive) to
 its intersection with F.M. 346;
 THENCE Southwesterly with the centerline of F.M. 346 to its intersection with
 County Road 15;
 THENCE Southerly with the centerline of County Road 15 to its intersection
 with County Road 129;
 THENCE Northeasterly with the centerline of County Road 129 to its
 intersection with County Road 112;
 THENCE with the centerline of County Road 112 to its intersection with County
 Road 113;
 THENCE with the centerline of County Road 113 to its intersection with County
 Road 152;
 THENCE Southwesterly with the centerline of County Road 152 to its
 intersection with U.S.iHighway No.i69;
 THENCE Southeasterly with the centerline of U.S. Highway No.i69 to its
 intersection with the South boundary line of Liberty Utilities (Woodmark) CCN
 20679 as shown by digital map on 3-08-2019iper the Public Utility Commission
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                          5937

 of Texas website, same being on the East boundary line of the City of Bullard,
 Texas, Sewer CCN 20903 as shown by digital map on 3-08-2019iper the Public
 Utility Commission of Texas website;
 THENCE Southwesterly with said East boundary line of Bullard, Texas CCN
 20903 and South boundary line of Liberty Utilities (Woodmark) CCN 20679 to
 its intersection with Tyler and Bullard ETJ Agreement Boundary;
 THENCE South 878 24 min 9 sec West with a distance of 228.46 ft;
 THENCE South 878 15 min 49 sec West with a distance of 1,411.05 ft;
 THENCE North 38 23 min 18 sec West with a distance of 116.67 ft;
 THENCE South 578 12 min 37 sec West with a distance of 519.18 ft to its
 intersection with F. M. 2493;
 THENCE Northwesterly with the centerline of F.M. 2493 to an ell corner in the
 West line of said CCN 20679;
 THENCE West continuing with the West boundary line of said CCN 20679 to its
 intersection with the centerline of County Road 173 and being the Westerly
 Southwest corner of said CCN 20679;
 THENCE Northerly with the centerline of County Road 173 to its intersection
 with the centerline of County Road 175;
 THENCE Westerly with the centerline of County Road 175 to its intersection
 with the centerline of F.M. 346;
 THENCE Westerly with the centerline of F.M. 346 to its intersection with the
 centerline of County Road 185 (Oak Hollow Road);
 THENCE Westerly with the centerline of County Road 185 to its intersection
 with the centerline of County Road 178 (Old Palestine Highway);
 THENCE Northeasterly with the centerline of County Road 178 (Old Palestine
 Highway) to its intersection with the centerline of County Road 168 (Saline
 Creek Road);
 THENCE Northeasterly with the centerline of County Road 168 to its
 intersection with the centerline of County Road 178 (Jonestown Road);
 THENCE North with the centerline of County Road 178 to its intersection with
 the centerline of County Road 192 (Old Noonday Road);
 THENCE Northeasterly with the centerline of County Road 192 to its
 intersection with the centerline of County Road 193 (Taylor Road);
 THENCE Northwesterly with the centerline of County Road 193 to its
 intersection with the centerline of State Highway No.i155;
 THENCE Northeasterly with the centerline of State Highway No.i155 to the
 place of beginning containing 21,118 acres of land, plus or minus.
 "This document was prepared under 22 TAC §663.21, does not reflect the results
 of an on the ground survey, and is not to be used to convey or establish interests
 in real property except those rights and interests implied or established by the
 creation or reconfiguration of the boundary of the political subdivision for which
 it was prepared."
 The acreage shown were calculated from aerial photography and are an
 approximation only.
5938             86th LEGISLATURE — REGULAR SESSION

       SECTIONi3.ii(a) The legal notice of the intention to introduce this Act,
 setting forth the general substance of this Act, has been published as provided by
 law, and the notice and a copy of this Act have been furnished to all persons,
 agencies, officials, or entities to which they are required to be furnished under
 Section 59, Article XVI, Texas Constitution, and Chapter 313, Government
 Code.
       (b)iiThe governor, one of the required recipients, has submitted the notice
 and Act to the Texas Commission on Environmental Quality.
       (c)iiThe Texas Commission on Environmental Quality has filed its
 recommendations relating to this Act with the governor, the lieutenant governor,
 and the speaker of the house of representatives within the required time.
       (d)iiAll requirements of the constitution and laws of this state and the rules
 and procedures of the legislature with respect to the notice, introduction, and
 passage of this Act are fulfilled and accomplished.
       SECTIONi4.ii(a) Section 7958.0304, Special District Local Laws Code, as
 added by Section 1 of this Act, takes effect only if this Act receives a two-thirds
 vote of all the members elected to each house.
       (b)iiIf this Act does not receive a two-thirds vote of all the members elected
 to each house, Subchapter C, Chapter 7958, Special District Local Laws Code, as
 added by Section 1 of this Act, is amended by adding Section 7958.0304 to read
 as follows:
       Sec.i7958.0304.iiNO EMINENT DOMAIN POWER. The district may not
 exercise the power of eminent domain.
       (c)iiThis section is not intended to be an expression of a legislative
 interpretation of the requirements of Section 17(c), Article I, Texas Constitution.
       SECTIONi5.iiThis Act takes effect September 1, 2019.
     Representative Schaefer moved to adopt the conference committee report on
 HBi4749.
    The vote of the house was taken on the motion to adopt the conference
 committee report on HBi4749 and the vote was announced yeas 69, nays 70.
       A verification of the vote was requested and was granted.
      The roll of those voting yea and nay was again called and the verified vote
 resulted, as follows (Record 1934): 75 Yeas, 62 Nays, 2 Present, not voting.
      Yeas — Allison; Anderson; Ashby; Bailes; Beckley; Bell, K.; Biedermann;
 Blanco; Bohac; Bonnen; Buckley; Bucy; Burns; Burrows; Cain; Canales; Cyrier;
 Darby; Dean; Deshotel; Flynn; Frank; Geren; Guillen; Harless; Harris; Hefner;
 Holland; Howard; Huberty; Israel; King, P.; Klick; Krause; Lang; Leach; Leman;
 Longoria; Lozano; Metcalf; Meyer; Middleton; Miller; Moody; Morrison;
 Murphy; Murr; Nevárez; Noble; Paddie; Patterson; Phelan; Ramos; Raney;
 Raymond; Rodriguez; Sanford; Schaefer; Shaheen; Sheffield; Shine; Smith;
 Smithee; Stephenson; Swanson; Talarico; Thierry; Tinderholt; Toth; VanDeaver;
 Walle; White; Wilson; Wray; Zedler.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                      5939

      Nays — Allen; Anchia; Bell, C.; Bernal; Bowers; Button; Calanni;
 Capriglione; Cole; Coleman; Collier; Cortez; Craddick; Davis, Y.; Dominguez;
 Fierro; Frullo; Gervin-Hawkins; Goldman; González, J.; González, M.; Goodwin;
 Guerra; Gutierrez; Hernandez; Hinojosa; Johnson, J.E.; Kacal; King, K.; King,
 T.; Kuempel; Lambert; Landgraf; Larson; Lopez; Martinez; Martinez Fischer;
 Meza; Minjarez; Morales; Muñoz; Neave; Oliverson; Ortega; Pacheco; Parker;
 Paul; Perez; Price; Rose; Rosenthal; Sherman; Springer; Stickland; Stucky;
 Thompson, E.; Thompson, S.; Turner, C.; Turner, J.; Wu; Zerwas; Zwiener.
      Present, not voting — Mr. Speaker(C); Hunter.
      Absent, Excused — Davis, S.; Johnson, E.; Johnson, J.D.
      Absent — Clardy; Dutton; Farrar; Herrero; Lucio; Reynolds; Romero; Vo.
     The chair stated that the motion to adopt the conference committee report on
 HBi4749 prevailed by the above vote.
                     LEAVES OF ABSENCE GRANTED
      The following members were granted leaves of absence for the remainder of
 today because of important business:
      Lucio on motion of Longoria.
      Vo on motion of Bernal.
      The following members were granted leaves of absence for the remainder of
 today because of family business:
      Herrero on motion of Rodriguez.
      Romero on motion of Neave.
        SB 583 - CONFERENCE COMMITTEE REPORT ADOPTED
      Representative Rose submitted the conference committee report on SBi583.
     Representative Rose moved to adopt the conference committee report on
 SBi583.
      The motion to adopt the conference committee report on SBi583 prevailed
 by (Record 1935): 118 Yeas, 17 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Blanco; Bohac; Bonnen; Buckley; Bucy; Burns; Burrows;
 Button; Calanni; Canales; Capriglione; Cole; Coleman; Collier; Cortez;
 Craddick; Cyrier; Darby; Davis, Y.; Dominguez; Dutton; Fierro; Flynn; Frank;
 Frullo; Geren; Gervin-Hawkins; Goldman; González, J.; González, M.; Goodwin;
 Guerra; Guillen; Gutierrez; Harless; Harris; Hernandez; Hinojosa; Holland;
 Howard; Huberty; Israel; Johnson, J.E.; Kacal; King, K.; King, P.; King, T.;
 Klick; Kuempel; Lambert; Landgraf; Larson; Leach; Leman; Longoria; Lopez;
 Lozano; Martinez Fischer; Meyer; Meza; Miller; Minjarez; Moody; Morales;
 Morrison; Muñoz; Murphy; Murr; Neave; Nevárez; Noble; Ortega; Pacheco;
 Paddie; Parker; Paul; Perez; Phelan; Price; Ramos; Raney; Raymond; Rodriguez;
5940            86th LEGISLATURE — REGULAR SESSION

 Rose; Rosenthal; Sanford; Sheffield; Sherman; Shine; Smith; Smithee; Springer;
 Stephenson; Stucky; Talarico; Thierry; Thompson, E.; Thompson, S.; Turner, C.;
 Turner, J.; VanDeaver; Walle; White; Wray; Wu; Zedler; Zerwas; Zwiener.
     Nays — Biedermann; Cain; Dean; Hefner; Krause; Lang; Metcalf;
 Middleton; Oliverson; Patterson; Schaefer; Shaheen; Stickland; Swanson;
 Tinderholt; Toth; Wilson.
       Present, not voting — Mr. Speaker(C).
    Absent, Excused — Davis, S.; Herrero; Johnson, E.; Johnson, J.D.; Lucio;
 Romero; Vo.
       Absent — Bowers; Clardy; Deshotel; Farrar; Hunter; Martinez; Reynolds.
                           STATEMENTS OF VOTE
      When Record No. 1935 was taken, I was shown voting yes. I intended to
 vote no.
                                                                          Harris
      When Record No. 1935 was taken, I was in the house but away from my
 desk. I would have voted no.
                                                                          Hunter
      When Record No. 1935 was taken, I was shown voting yes. I intended to
 vote no.
                                                                          Leman
      When Record No. 1935 was taken, my vote failed to register. I would have
 voted yes.
                                                                        Martinez
      When Record No. 1935 was taken, I was shown voting yes. I intended to
 vote no.
                                                                            Paul
        HB 1504 - CONFERENCE COMMITTEE REPORT ADOPTED
     Representative Paddie submitted the following conference committee report
 on HBi1504:
                                                    Austin, Texas, May 23, 2019
 The Honorable Dan Patrick
 President of the Senate
 The Honorable Dennis Bonnen
 Speaker of the House of Representatives
       Sirs: We, your conference committee, appointed to adjust the differences
 between the senate and the house of representatives on HBi1504 have had the
 same under consideration, and beg to report it back with the recommendation that
 it do pass in the form and text hereto attached.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            5941

 Nichols                                    Paddie
 Birdwell                                   Lambert
 Buckingham                                 Nevárez
 Hall                                       Schaefer
                                            Toth
 On the part of the senate                  On the part of the house
       HBi1504, A bill to be entitled An Act relating to the continuation and
 functions of the Texas Medical Board; authorizing a fee.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTIONi1.iiSection 151.004, Occupations Code, is amended to read as
 follows:
       Sec.i151.004.iiAPPLICATION OF SUNSET ACT. The Texas Medical
 Board is subject to Chapter 325, Government Code (Texas Sunset Act). Unless
 continued in existence as provided by that chapter, the board is abolished and this
 subtitle and Chapters 204, 205, 206, 601, 602, 603, and 604 expire September 1,
 2031 [2019].
       SECTIONi2.iiSection 152.010, Occupations Code, is amended by amending
 Subsection (b) and adding Subsection (d) to read as follows:
       (b)iiThe training program must provide the person with information
 regarding:
            (1)iithe law governing board operations [this subtitle];
            (2)iithe programs, functions, rules, and budget of [operated by] the
 board;
            (3)iithe scope of and limitations on the rulemaking authority [role and
 functions] of the board;
            (4)iithe types of board rules, interpretations, and enforcement actions
 that may implicate federal antitrust law by limiting competition or impacting
 prices charged by persons engaged in a profession or business the board
 regulates, including any rule, interpretation, or enforcement action that:
                 (A)iiregulates the scope of practice of persons in a profession or
 business the board regulates;
                 (B)iirestricts advertising by persons in a profession or business the
 board regulates;
                 (C)iiaffects the price of goods or services provided by persons in a
 profession or business the board regulates; or
                 (D)iirestricts participation in a profession or business the board
 regulates [the rules of the board, with an emphasis on the rules that relate to
 disciplinary and investigatory authority];
            (5)ii[the current budget for the board;
            [(6)]iithe results of the most recent formal audit of the board;
            (6)i[(7)]iithe requirements of:
                 (A)iilaws relating to open meetings, public information,
 administrative procedure, and disclosure of conflicts of interest; and
                 (B)iiother laws applicable to members of the board in performing
 their duties; and
5942             86th LEGISLATURE — REGULAR SESSION

            (7)i[(8)]iiany applicable ethics policies adopted by the board or the
 Texas Ethics Commission.
       (d)iiThe executive director of the board shall create a training manual that
 includes the information required by Subsection (b). The executive director shall
 distribute a copy of the training manual annually to each board member. Each
 board member shall sign and submit to the executive director a statement
 acknowledging that the member received and has reviewed the training manual.
       SECTIONi3.iiSection 153.058(a), Occupations Code, is amended to read as
 follows:
       (a)iiThe board shall develop and implement a policy to encourage the use of:
            (1)iinegotiated rulemaking procedures under Chapter 2008, Government
 Code, for the adoption of any rules by the board [rules]; and
            (2)iiappropriate alternative dispute resolution procedures under Chapter
 2009, Government Code, to assist in the resolution of internal and external
 disputes under the board ’s jurisdiction.
       SECTIONi4.iiSection 154.006, Occupations Code, is amended by amending
 Subsections (b), (g), (i), (j), and (k) and adding Subsections (b-1), (i-1), and (l) to
 read as follows:
       (b)iiExcept as otherwise provided by this section, a [A] profile must contain
 the following information on each physician:
            (1)iithe name of each medical school attended and the dates of:
                 (A)iigraduation; or
                 (B)iiFifth Pathway designation and completion of the Fifth Pathway
 Program;
            (2)iia description of all graduate medical education in the United States
 or Canada;
            (3)iiany specialty certification held by the physician and issued by a
 medical licensing board that is a member of the American Board of Medical
 Specialties or the Bureau of Osteopathic Specialists;
            (4)iithe number of years the physician has actively practiced medicine
 in:
                 (A)iithe United States or Canada; and
                 (B)iithis state;
            (5)iithe name of each hospital in this state in which the physician has
 privileges;
            (6)iithe physician ’s primary practice location;
            (7)iithe type of language translating services, including translating
 services for a person with impairment of hearing, that the physician provides at
 the physician ’s primary practice location;
            (8)iiwhether the physician participates in the Medicaid program;
            (9)iia description of any conviction for a felony, a Class A or Class
 Bimisdemeanor, or a Class C misdemeanor involving moral turpitude;
            (10)iia description of any charges reported to the board to which the
 physician has pleaded no contest, for which the physician is the subject of
 deferred adjudication or pretrial diversion, or in which sufficient facts of guilt
 were found and the matter was continued by a court;
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            5943

             (11)iia description of any disciplinary action against the physician by
 the board;
             (12)iia description of any disciplinary action against the physician by a
 medical licensing board of another state;
             (13)iia description of the final resolution taken by the board on medical
 malpractice claims or complaints required to be opened by the board under
 Section 164.201;
             (14)iiwhether the physician ’s patient service areas are accessible to
 disabled persons, as defined by federal law;
             (15)iia description of any formal complaint against the physician
 initiated and filed under Section 164.005 and the status of the complaint; and
             (16)iia description of any medical malpractice claim against the
 physician, not including a description of any offers by the physician to settle the
 claim, for which the physician was found liable, a jury awarded monetary
 damages to the claimant, and the award has been determined to be final and not
 subject to further appeal.
       (b-1)iiOn or after the fifth anniversary of the date a remedial plan is issued
 under Section 164.0015, the board may remove from the profile of the physician
 subject to the plan any information regarding the plan and the complaint resolved
 by the plan unless:
             (1)iithe complaint was related to the delivery of health care; or
             (2)iimore than one remedial plan has been issued to resolve complaints
 alleging the same violation by the physician, including a complaint not related to
 the delivery of health care.
       (g)iiExcept as otherwise provided by this section, the [The] board shall
 update the information contained in a physician ’s profile annually[, except that
 information provided under Subsection (i) shall be updated not later than the 10th
 working day after the date the formal complaint is filed or the board ’s order is
 issued]. The board shall adopt a form that allows a physician to update
 information contained in a physician s’ profile. The form shall be made available
 on the Internet and in other formats as prescribed by board rule. The board may
 adopt rules concerning the type and content of additional information that may be
 included in a physician ’s profile.
       (i)iiIn addition to the information required by Subsection (b) and except as
 otherwise provided by this section, a profile must be updated to contain the text
 of a formal complaint filed under Section 164.005 against the physician or of a
 board order related to the formal complaint not later than the 10th working day
 after the date the complaint is filed.
       (i-1)iiNot later than the 10th working day after the date the board issues a
 final order related to a formal complaint filed under Section 164.005 against a
 physician, the board shall:
             (1)iiremove from the physician ’s profile any record of the formal
 complaint or any prior disciplinary action related to the formal complaint; and
             (2)iiupdate the physician s’ profile to contain the board s’ final order.
       (j)iiInformation included in a physician ’s profile under Subsections (b),
 [and] (i), and (i-1) may not include any patient identifying information.
5944             86th LEGISLATURE — REGULAR SESSION

       (k)iiNot later than the 10th working day after the date the board dismisses
 [In the annual update of a physician s’ profile under Subsection (g), the board
 shall remove any record of] a formal complaint against a physician required to be
 included in the physician ’s profile under Subsection (b)(15) or (i) [if the
 complaint was dismissed more than five years before the date of the update and
 the complaint was dismissed] as baseless, unfounded, or not supported by
 sufficient evidence that a violation occurred, or resolves the complaint and takes
 no action [was taken] against the physician ’s license as a result of the complaint,
 the board shall:
             (1)iiremove from the physician ’s profile any record of the formal
 complaint or any prior disciplinary action related to the formal complaint; and
             (2)iiupdate the physician ’s profile to contain the board ’s final order
 dismissing or resolving the complaint.ii
       (l)iiIf no action is taken against a physician ’s license as a result of an [The
 board shall also remove any record of the] investigation of medical malpractice
 claims or complaints required to be investigated by the board under Section
 164.201, the board shall, not later than the 10th working day after the date the
 board resolves the investigation, remove any record of the investigation from the
 physician ’s profile [if the investigation was resolved more than five years before
 the date of the update and no action was taken against the physician ’s license as a
 result of the investigation].
       SECTIONi5.iiSection 154.057, Occupations Code, is amended by amending
 Subsection (b) and adding Subsection (b-1) to read as follows:
       (b)iiExcept as provided by Subsection (b-1), the [The] board shall complete
 a preliminary investigation of the complaint not later than the 45th day after the
 date of receiving the complaint. The board shall first determine whether the
 physician constitutes a continuing threat to the public welfare. On completion of
 the preliminary investigation, the board shall determine whether to officially
 proceed on the complaint. If the board fails to complete the preliminary
 investigation in the time required by this subsection, the board s’ official
 investigation of the complaint is considered to commence on that date.
       (b-1)iiThe board, for good cause, may extend a preliminary investigation
 under Subsection (b) for not more than 15 days after the date required for
 completion under that subsection.
       SECTIONi6.iiSubchapter A, Chapter 155, Occupations Code, is amended
 by adding Section 155.011 to read as follows:
       Sec.i155.011.iiEXPEDITED LICENSING PROCESS FOR CERTAIN
 OUT-OF-STATE APPLICANTS. The board by rule shall develop and implement
 an expedited licensing process for an applicant who is considered to have
 satisfied the examination requirements of this chapter under Section 155.0561(d).
       SECTIONi7.iiSection 155.056(a), Occupations Code, is amended to read as
 follows:
       (a)iiExcept as otherwise provided by Subsection (a-1) and Section 155.0561,
 an applicant must pass each part of an examination within three attempts.
       SECTIONi8.iiSubchapter B, Chapter 155, Occupations Code, is amended
 by adding Section 155.0561 to read as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5945

       Sec.i155.0561.iiEXCEPTIONS TO EXAMINATION ATTEMPT LIMITS
 FOR CERTAIN OUT-OF-STATE APPLICANTS. (a) In this section:
            (1)ii"Active practice" means the practice of medicine by a person after
 successful completion of a residency, fellowship, or other supervised training
 program.
            (2)ii"Full license" means a license to practice medicine that is not a
 training license, a permit, or any other form of authority to practice medicine
 issued to a person while the person is completing or enrolled in a residency,
 fellowship, or other supervised training program.
       (b)iiThis section applies only to an applicant who:
            (1)iihas successfully completed a graduate medical education program
 approved by the board;
            (2)iiholds a full license and is in good standing as a physician in another
 state or Canada;
            (3)iidoes not hold and has never held a medical license subject to any
 restriction, disciplinary order, or probation;
            (4)iiis not and has never been the subject of a peer review that has
 resulted or may result in limitation, restriction, suspension, or other adverse
 impact on the applicant ’s hospital or other medical facility privileges; and
            (5)iiis not under investigation by any licensing or law enforcement
 agency.
       (c)iiAn applicant described by Subsection (b) who has held a full license and
 been in active practice for at least one year but less than five years and has passed
 within three attempts all but one part of the examination approved by the board is
 considered to have satisfied the examination requirements of this chapter if the
 applicant passed the remaining part of the examination within:
            (1)iione additional attempt; or
            (2)iithree additional attempts, if the applicant is specialty board certified
 by a specialty board that is:
                 (A)iia member of the American Board of Medical Specialties; or
                 (B)iiapproved by the American Osteopathic Association.
       (d)iiAn applicant described by Subsection (b) who has held a full license
 and been in active practice for at least five years is considered to have satisfied
 the examination requirements of this chapter regardless of the type of
 examination the applicant passed or the number of attempts within which the
 applicant passed the examination or any part of the examination.
       SECTIONi9.iiSection 162.106, Occupations Code, is amended to read as
 follows:
       Sec.i162.106.iiINSPECTIONS. (a) The board may conduct inspections [to
 enforce this subchapter, including inspections of an office site and of documents]
 of a physician ’s equipment and office procedures [practice] that relate to the
 provision of anesthesia in an outpatient setting as necessary to enforce this
 subchapter.
       (b)iiThe board may establish a risk-based inspection process in which the
 board conducts inspections based on the length of time since:
            (1)iithe equipment and outpatient setting were last inspected; and
5946            86th LEGISLATURE — REGULAR SESSION

           (2)iithe physician submitted to inspection.
      (c)iiThe board may contract with another state agency or qualified person to
 conduct the inspections.
      (d)i[(b)]iiUnless it would jeopardize an ongoing investigation, the board
 shall provide at least five business days ’ notice before conducting an on-site
 inspection under this section.
      (e)iiThe board shall maintain a record of the outpatient settings in which
 physicians provide anesthesia.
      (f)iiA physician who provides anesthesia in an outpatient setting shall
 inform the board of any other physician with whom the physician shares
 equipment used to administer anesthesia.
      (g)i[(c)]iiThis section does not require the board to make an on-site
 inspection of a physician ’s office.
      SECTIONi10.iiSection 164.0015(d), Occupations Code, is amended to read
 as follows:
      (d)iiThe board may not issue a remedial plan to resolve a complaint against a
 license holder if the license holder has [previously] entered into a remedial plan
 with the board in the preceding five years [for the resolution of a different
 complaint relating to this subtitle].
       SECTIONi11.iiSection 164.003, Occupations Code, is amended by
 amending Subsections (b) and (f) and adding Subsection (f-1) to read as follows:
      (b)iiRules adopted under this section must require that:
           (1)iian informal meeting in compliance with Section 2001.054,
 Government Code, be scheduled not later than the 180th day after the date the
 board ’s official investigation of the complaint is commenced as provided by
 Section 154.057(b), unless good cause is shown by the board for scheduling the
 informal meeting after that date;
           (2)iithe board give notice to the license holder of the time and place of
 the meeting not later than the 45th day before the date the meeting is held;
           (3)iithe complainant and the license holder be provided an opportunity
 to be heard;
           (4)iiat least one of the board members or district review committee
 members participating in the informal meeting as a panelist be a member who
 represents the public;
           (5)iithe board ’s legal counsel or a representative of the attorney general
 be present to advise the board or the board ’s staff; [and]
           (6)iia member of the board ’s staff be at the meeting to present to the
 board ’s representative the facts the staff reasonably believes it could prove by
 competent evidence or qualified witnesses at a hearing; and
           (7)iiif the complaint includes an allegation that the license holder has
 violated the standard of care, the panel conducting the informal proceeding
 consider whether the physician was practicing complementary and alternative
 medicine.
      (f)iiThe notice required by Subsection (b)(2) must be accompanied by a
 written statement of the nature of the allegations and the information the board
 intends to use at the meeting. If the board does not provide the statement or
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5947

 information at that time, the license holder may use that failure as grounds for
 rescheduling the informal meeting. If the complaint includes an allegation that the
 license holder has violated the standard of care, the notice must include a copy of
 each [the] report prepared by an [the] expert physician reviewer under Section
 154.0561. The license holder must provide to the board the license holder ’s
 rebuttal at least 15ibusiness days before the date of the meeting in order for the
 information to be considered at the meeting.
      (f-1)iiBefore providing a report to a license holder under Subsection (f), the
 board must redact any identifying information of an expert physician reviewer
 other than the specialty of the expert physician reviewer.
       SECTIONi12.iiSections 164.005(a) and (c), Occupations Code, are
 amended to read as follows:
      (a)iiIn this section, "formal complaint" means a written statement made by a
 credible person [under oath] that is filed and presented by a board representative
 charging a person with having committed an act that, if proven, could affect the
 legal rights or privileges of a license holder or other person under the board s’
 jurisdiction.
      (c)iiA charge must [be in the form of a written affidavit that]:
           (1)iibe [is] filed with the board ’s records custodian or assistant records
 custodian; and
           (2)iidetail [details] the nature of the charge as required by this subtitle or
 other applicable law.
       SECTIONi13.iiSections 164.006(a) and (b), Occupations Code, are
 amended to read as follows:
      (a)iiNotice [Service of process] to [notify] the respondent of a hearing about
 the charges against the person must be served:
           (1)iiin accordance with Chapter 2001, Government Code; and
           (2)iiby certified mail.
      (b)iiIf notice [service] described by Subsection (a) is impossible or cannot be
 effected, the board shall publish once a week for two successive weeks a notice of
 the hearing in a newspaper published in the county of the last known place of
 practice in this state of the person, if known.
       SECTIONi14.iiSections 164.007(a) and (a-1), Occupations Code, are
 amended to read as follows:
      (a)iiThe board by rule shall adopt procedures governing formal disposition
 of a contested case under Chapter 2001, Government Code. A formal hearing
 shall be conducted by an administrative law judge employed by the State Office
 of Administrative Hearings. After receiving the administrative law judge ’s
 findings of fact and conclusions of law, the board shall:
           (1)iidispose of the contested case by issuing a final order based on the
 administrative law judge ’s findings of fact and conclusions of law; or
           (2)iiappeal the administrative law judge ’s findings of fact and
 conclusions of law in the manner provided by Section 164.0072.
      (a-1)iiNotwithstanding Section 2001.058(e), Government Code, the board
 may not change a finding of fact or conclusion of law or vacate or modify an
 order of the administrative law judge. [The board may obtain judicial review of
5948             86th LEGISLATURE — REGULAR SESSION

 any finding of fact or conclusion of law issued by the administrative law judge as
 provided by Section 2001.058(f)(5), Government Code.] For each case, the
 board has the sole authority and discretion to determine the appropriate action or
 sanction. The [, and the] administrative law judge may not make any
 recommendation regarding the appropriate action or sanction.
       SECTIONi15.iiSubchapter A, Chapter 164, Occupations Code, is amended
 by adding Section 164.0072 to read as follows:
       Sec.i164.0072.iiBOARD APPEAL OF FINDINGS OF FACT AND
 CONCLUSIONS OF LAW. (a) The board may, before disposing of a contested
 case by issuing a final order, obtain judicial review of any finding of fact or
 conclusion of law issued by the administrative law judge by filing suit in a Travis
 County district court not later than the 30th day after the date the findings of fact
 and conclusions of law are issued.
       (b)iiThe board shall join in a suit filed under this section the respondent in
 the contested case for which the board seeks to obtain judicial review.
       (c)iiThe scope of judicial review under this section is the same as the scope
 of judicial review provided for an appeal under Section 164.009.
       (d)iiAfter the court issues a final order in a suit filed under this section, the
 board shall dispose of the contested case by issuing a final order based on the
 court ’s final order. The respondent may not appeal a sanction ordered by the
 board unless the sanction exceeds the board ’s published sanctions guidelines.
       SECTIONi16.iiSection 164.052(a), Occupations Code, is amended to read
 as follows:
       (a)iiA physician or an applicant for a license to practice medicine commits a
 prohibited practice if that person:
            (1)iisubmits to the board a false or misleading statement, document, or
 certificate in an application for a license;
            (2)iipresents to the board a license, certificate, or diploma that was
 illegally or fraudulently obtained;
            (3)iicommits fraud or deception in taking or passing an examination;
            (4)iiuses alcohol or drugs in an intemperate manner that, in the board ’s
 opinion, could endanger a patient ’s life;
            (5)iicommits unprofessional or dishonorable conduct that is likely to
 deceive or defraud the public, as provided by Section 164.053, or injure the
 public;
            (6)iiuses an advertising statement that is false, misleading, or deceptive;
            (7)iiadvertises professional superiority or the performance of
 professional service in a superior manner if that advertising is not readily subject
 to verification;
            (8)iipurchases, sells, barters, or uses, or offers to purchase, sell, barter,
 or use, a medical degree, license, certificate, or diploma, or a transcript of a
 license, certificate, or diploma in or incident to an application to the board for a
 license to practice medicine;
            (9)iialters, with fraudulent intent, a medical license, certificate, or
 diploma, or a transcript of a medical license, certificate, or diploma;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5949

            (10)iiuses a medical license, certificate, or diploma, or a transcript of a
 medical license, certificate, or diploma that has been:
                 (A)iifraudulently purchased or issued;
                 (B)iicounterfeited; or
                 (C)iimaterially altered;
            (11)iiimpersonates or acts as proxy for another person in an examination
 required by this subtitle for a medical license;
            (12)iiengages in conduct that subverts or attempts to subvert an
 examination process required by this subtitle for a medical license;
            (13)iiimpersonates a physician or permits another to use the person ’s
 license or certificate to practice medicine in this state;
            (14)iidirectly or indirectly employs a person whose license to practice
 medicine has been suspended, canceled, or revoked;
            (15)iiassociates in the practice of medicine with a person:
                 (A)iiwhose license to practice medicine has been suspended,
 canceled, or revoked; or
                 (B)iiwho has been convicted of the unlawful practice of medicine in
 this state or elsewhere;
            (16)iiperforms or procures a criminal abortion, aids or abets in the
 procuring of a criminal abortion, attempts to perform or procure a criminal
 abortion, or attempts to aid or abet the performance or procurement of a criminal
 abortion;
            (17)iidirectly or indirectly aids or abets the practice of medicine by a
 person, partnership, association, or corporation that is not licensed to practice
 medicine by the board;
            (18)iiperforms an abortion on a woman who is pregnant with a viable
 unborn child during the third trimester of the pregnancy unless:
                 (A)iithe abortion is necessary to prevent the death of the woman;
                 (B)iithe viable unborn child has a severe, irreversible brain
 impairment; or
                 (C)iithe woman is diagnosed with a significant likelihood of
 suffering imminent severe, irreversible brain damage or imminent severe,
 irreversible paralysis;
            (19)iiperforms an abortion on an unemancipated minor without the
 written consent of the child ’s parent, managing conservator, or legal guardian or
 without a court order, as provided by Section 33.003 or 33.004, Family Code,
 unless the abortion is necessary due to a medical emergency, as defined by
 Section 171.002, Health and Safety Code;
            (20)iiotherwise performs an abortion on an unemancipated minor in
 violation of Chapter 33, Family Code; [or]
            (21)iiperforms or induces or attempts to perform or induce an abortion
 in violation of Subchapter C, F, or G, Chapter 171, Health and Safety Code; or
            (22)iiin complying with the procedures outlined in Sections
 166.045iand 166.046, Health and Safety Code, wilfully fails to make a
 reasonable effort to transfer a patient to a physician who is willing to comply with
 a directive.
5950             86th LEGISLATURE — REGULAR SESSION

      SECTIONi17.iiChapter 167, Occupations Code, is amended by adding
 Sections 167.012 and 167.013 to read as follows:
       Sec.i167.012.iiMEMORANDUM OF UNDERSTANDING WITH
 BOARD. The governing board and the board shall enter into a memorandum of
 understanding to better coordinate services and operations of the program. The
 memorandum of understanding must be adopted by rule and:
            (1)iiestablish performance measures for the program, including the
 number of participants who successfully complete the program;
            (2)iiinclude a list of services the board will provide for the program; and
            (3)iirequire that an internal audit of the program be conducted at least
 once every three years to ensure the program is properly documenting and
 referring all noncompliance to the board.
      Sec.i167.013.iiGIFTS, GRANTS, AND DONATIONS. In addition to any
 fees paid to the board or money appropriated to the board for the program, the
 governing board may receive and accept a gift, grant, donation, or other thing of
 value from any source, including the United States or a private source, for the
 program.
       SECTIONi18.iiSection 205.057, Occupations Code, is amended by
 amending Subsection (b) and adding Subsection (d) to read as follows:
       (b)iiThe training program must provide the person with information
 regarding:
            (1)iithe law governing acupuncture board operations [this chapter];
            (2)iithe programs, [operated by the acupuncture board;
            [(3)iithe role and] functions, rules, and budget of the acupuncture board;
            (3)i[(4)]iithe scope of and limitations on the rulemaking authority [rules]
 of the acupuncture board;
            (4)iithe types of acupuncture board rules, interpretations, and
 enforcement actions that may implicate federal antitrust law by limiting
 competition or impacting prices charged by persons engaged in a profession or
 business the acupuncture board regulates, including any rule, interpretation, or
 enforcement action that:
                 (A)iiregulates the scope of practice of persons in a profession or
 business the acupuncture board regulates;
                 (B)iirestricts advertising by persons in a profession or business the
 acupuncture board regulates;
                 (C)iiaffects the price of goods or services provided by persons in a
 profession or business the acupuncture board regulates; or
                 (D)iirestricts participation in a profession or business the
 acupuncture board regulates;
            (5)ii[the current budget for the acupuncture board;
            [(6)]iithe results of the most recent formal audit of the acupuncture
 board;
            (6)i[(7)]iithe requirements of:
                 (A)iilaws relating to open meetings, public information,
 administrative procedure, and disclosure of conflicts of interest; and
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            5951

                 (B)iiother laws applicable to members of the acupuncture board in
 performing their duties; and
            (7)i[(8)]iiany applicable ethics policies adopted by the acupuncture
 board or the Texas Ethics Commission.
       (d)iiThe executive director shall create a training manual that includes the
 information required by Subsection (b). The executive director shall distribute a
 copy of the training manual annually to each acupuncture board member. Each
 board member shall sign and submit to the executive director a statement
 acknowledging that the member received and has reviewed the training manual.
       SECTIONi19.iiSubchapter E, Chapter 205, Occupations Code, is amended
 by adding Section 205.2025 to read as follows:
       Sec.i205.2025.iiCRIMINAL HISTORY RECORD INFORMATION
 REQUIREMENT FOR LICENSE ISSUANCE. (a) The acupuncture board shall
 require that an applicant for a license submit a complete and legible set of
 fingerprints, on a form prescribed by the board, to the board or to the Department
 of Public Safety for the purpose of obtaining criminal history record information
 from the Department of Public Safety and the Federal Bureau of Investigation.
       (b)iiThe acupuncture board may not issue a license to a person who does not
 comply with the requirement of Subsection (a).
       (c)iiThe acupuncture board shall conduct a criminal history record
 information check of each applicant for a license using information:
            (1)iiprovided by the individual under this section; and
            (2)iimade available to the board by the Department of Public Safety, the
 Federal Bureau of Investigation, and any other criminal justice agency under
 Chapter 411, Government Code.
       (d)iiThe acupuncture board may:
            (1)iienter into an agreement with the Department of Public Safety to
 administer a criminal history record information check required under this
 section; and
            (2)iiauthorize the Department of Public Safety to collect from each
 applicant the costs incurred by the Department of Public Safety in conducting the
 criminal history record information check.
       SECTIONi20.iiSubchapter F, Chapter 205, Occupations Code, is amended
 by adding Section 205.2515 to read as follows:
       Sec.i205.2515.iiCRIMINAL HISTORY RECORD INFORMATION
 REQUIREMENT FOR RENEWAL. (a) An applicant for renewal of a license
 issued under this chapter shall submit a complete and legible set of fingerprints
 for purposes of performing a criminal history record information check of the
 applicant as provided by Section 205.2025.
       (b)iiThe acupuncture board may administratively suspend or refuse to renew
 the license of a person who does not comply with the requirement of Subsection
 (a).
       (c)iiA license holder is not required to submit fingerprints under this section
 for the renewal of the license if the holder has previously submitted fingerprints
 under:
            (1)iiSection 205.2025 for the initial issuance of the license; or
5952             86th LEGISLATURE — REGULAR SESSION

           (2)iithis section as part of a prior renewal of a license.
      SECTIONi21.iiSubchapter E, Chapter 206, Occupations Code, is amended
 by adding Section 206.2025 to read as follows:
       Sec.i206.2025.iiCRIMINAL HISTORY RECORD INFORMATION
 REQUIREMENT FOR LICENSE ISSUANCE. (a) The medical board shall
 require that an applicant for a license submit a complete and legible set of
 fingerprints, on a form prescribed by the board, to the board or to the Department
 of Public Safety for the purpose of obtaining criminal history record information
 from the Department of Public Safety and the Federal Bureau of Investigation.
      (b)iiThe medical board may not issue a license to a person who does not
 comply with the requirement of Subsection (a).
      (c)iiThe medical board shall conduct a criminal history record information
 check of each applicant for a license using information:
           (1)iiprovided by the individual under this section; and
           (2)iimade available to the board by the Department of Public Safety, the
 Federal Bureau of Investigation, and any other criminal justice agency under
 Chapter 411, Government Code.
      (d)iiThe medical board may:
           (1)iienter into an agreement with the Department of Public Safety to
 administer a criminal history record information check required under this
 section; and
           (2)iiauthorize the Department of Public Safety to collect from each
 applicant the costs incurred by the Department of Public Safety in conducting the
 criminal history record information check.
      SECTIONi22.iiSection 206.203(a), Occupations Code, is amended to read
 as follows:
      (a)iiExcept as provided by Section 206.206, to be eligible for a license, a
 person must:
           (1)ii[be of good moral character;
           [(2)]iihave not been convicted of a felony or a crime involving moral
 turpitude;
           (2)i[(3)]iinot use drugs or alcohol to an extent that affects the applicant ’s
 professional competency;
           (3)i[(4)]iinot have had a license or certification revoked by a licensing
 agency or by a certifying professional organization; and
           (4)i[(5)]iinot have engaged in fraud or deceit in applying for a license
 under this chapter.
      SECTIONi23.iiSubchapter E, Chapter 206, Occupations Code, is amended
 by adding Section 206.2105 to read as follows:
       Sec.i206.2105.iiCRIMINAL HISTORY RECORD INFORMATION
 REQUIREMENT FOR RENEWAL. (a) An applicant for renewal of a license
 issued under this chapter shall submit a complete and legible set of fingerprints
 for purposes of performing a criminal history record information check of the
 applicant as provided by Section 206.2025.
      (b)iiThe medical board may administratively suspend or refuse to renew the
 license of a person who does not comply with the requirement of Subsection (a).
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5953

       (c)iiA license holder is not required to submit fingerprints under this section
 for the renewal of the license if the holder has previously submitted fingerprints
 under:
            (1)iiSection 206.2025 for the initial issuance of the license; or
            (2)iithis section as part of a prior renewal of a license.
       SECTIONi24.iiSection 601.002, Occupations Code, is amended by adding
 Subdivisions (10-a) and (10-b) to read as follows:
            (10-a)ii"Radiologist" means a physician specializing in radiology
 certified by or board-eligible for the American Board of Radiology, the American
 Osteopathic Board of Radiology, the Royal College of Radiologists, or the Royal
 College of Physicians and Surgeons of Canada.
            (10-b)ii"Radiologist assistant" means an advanced-level medical
 radiologic technologist who is certified as:
                 (A)iia registered radiologist assistant by the American Registry of
 Radiologic Technologists; or
                 (B)iia radiology practitioner assistant by the Certification Board for
 Radiology Practitioner Assistants.
       SECTIONi25.iiSection 601.030, Occupations Code, is amended by
 amending Subsection (b) and adding Subsection (d) to read as follows:
       (b)iiThe training program must provide the person with information
 regarding:
            (1)iithe law governing advisory board operations;
            (2)ii[this chapter and] the [advisory board ’s] programs, functions, rules,
 and budget of the advisory board;
            (3)iithe scope of and limitations on the rulemaking authority of the
 advisory board;
            (4)iithe types of advisory board rules, interpretations, and enforcement
 actions that may implicate federal antitrust law by limiting competition or
 impacting prices charged by persons engaged in a profession or business the
 advisory board regulates, including any rule, interpretation, or enforcement action
 that:
                 (A)iiregulates the scope of practice of persons in a profession or
 business the advisory board regulates;
                 (B)iirestricts advertising by persons in a profession or business the
 advisory board regulates;
                 (C)iiaffects the price of goods or services provided by persons in a
 profession or business the advisory board regulates; or
                 (D)iirestricts participation in a profession or business the advisory
 board regulates;
            (5)i[(2)]iithe results of the most recent formal audit of the advisory
 board;
            (6)i[(3)]iithe requirements of:
                 (A)iilaws relating to open meetings, public information,
 administrative procedure, and disclosure of conflicts of interest; and
                 (B)iiother laws applicable to members of the advisory board in
 performing their duties; and
5954             86th LEGISLATURE — REGULAR SESSION

            (7)i[(4)]iiany applicable ethics policies adopted by the advisory board or
 the Texas Ethics Commission.
       (d)iiThe executive director of the medical board shall create a training
 manual that includes the information required by Subsection (b). The executive
 director shall distribute a copy of the training manual annually to each advisory
 board member. Each board member shall sign and submit to the executive
 director a statement acknowledging that the member received and has reviewed
 the training manual.
       SECTIONi26.iiSections 601.102(b) and (c), Occupations Code, are
 amended to read as follows:
       (b)iiThe advisory board may issue to a person:
            (1)iia general certificate to perform radiologic procedures; [or]
            (2)iia limited certificate that authorizes the person to perform radiologic
 procedures only on specific parts of the human body; or
            (3)iia radiologist assistant certificate to a person who meets the
 requirements established under Section 601.1021.
       (c)iiThe advisory board may issue to a person a temporary general
 certificate, [or] a temporary limited certificate, or a temporary radiologist assistant
 certificate that authorizes the person to perform radiologic procedures for a period
 not to exceed one year.
       SECTIONi27.iiSubchapter C, Chapter 601, Occupations Code, is amended
 by adding Section 601.1021 to read as follows:
       Sec.i601.1021.iiRADIOLOGIST ASSISTANT CERTIFICATE. (a) The
 advisory board by rule shall establish the education and training required for a
 person to obtain a radiologist assistant certificate.
       (b)iiA radiologist assistant certificate holder:
            (1)iimay perform radiologic procedures only under the supervision of a
 radiologist; and
            (2)iimay not interpret images, make diagnoses, or prescribe any
 medication or therapy.
       SECTIONi28.iiSection 604.030, Occupations Code, is amended by
 amending Subsection (b) and adding Subsection (d) to read as follows:
       (b)iiThe training program must provide the person with information
 regarding:
            (1)iithe law governing advisory board operations;
            (2)iithe [this chapter and the advisory board ’s] programs, functions,
 rules, and budget of the advisory board;
            (3)iithe scope of and limitations on the rulemaking authority of the
 advisory board;
            (4)iithe types of advisory board rules, interpretations, and enforcement
 actions that may implicate federal antitrust law by limiting competition or
 impacting prices charged by persons engaged in a profession or business the
 advisory board regulates, including any rule, interpretation, or enforcement action
 that:
                 (A)iiregulates the scope of practice of persons in a profession or
 business the advisory board regulates;
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            5955

                 (B)iirestricts advertising by persons in a profession or business the
 advisory board regulates;
                 (C)iiaffects the price of goods or services provided by persons in a
 profession or business the advisory board regulates; or
                 (D)iirestricts participation in a profession or business the advisory
 board regulates;
            (5)i[(2)]iithe results of the most recent formal audit of the advisory
 board;
            (6)i[(3)]iithe requirements of:
                 (A)iilaws relating to open meetings, public information,
 administrative procedure, and disclosure of conflicts of interest; and
                 (B)iiother laws applicable to members of the advisory board in
 performing their duties; and
            (7)i[(4)]iiany applicable ethics policies adopted by the advisory board or
 the Texas Ethics Commission.
       (d)iiThe executive director of the medical board shall create a training
 manual that includes the information required by Subsection (b). The executive
 director shall distribute a copy of the training manual annually to each advisory
 board member. Each board member shall sign and submit to the executive
 director a statement acknowledging that the member received and has reviewed
 the training manual.
       SECTIONi29.iiSections 155.056(c) and (d), Occupations Code, are
 repealed.
       SECTIONi30.ii(a) Except as provided by Subsection (b) of this section,
 Sections 152.010, 205.057, 601.030, and 604.030, Occupations Code, as
 amended by this Act, apply to a member of the applicable board appointed
 before, on, or after the effective date of this Act.
       (b)iiA member of a board who, before the effective date of this Act,
 completed the training program required by Section 152.010, 205.057, 601.030,
 or 604.030, Occupations Code, as the applicable law existed before the effective
 date of this Act, is only required to complete additional training on subjects added
 by this Act to the training program required by, as applicable, Section 152.010,
 205.057, 601.030, or 604.030, Occupations Code, as amended by this Act. A
 board member described by this subsection may not vote, deliberate, or be
 counted as a member in attendance at a meeting of the applicable board held on
 or after December 1, 2019, until the member completes the additional training.
       SECTIONi31.iiNot later than March 1, 2020, the Texas Medical Board shall
 adopt rules necessary to implement Section 164.003(b), Occupations Code, as
 amended by this Act.
       SECTIONi32.iiNot later than January 1, 2020, the Texas Medical Board and
 the governing board of the Texas Physician Health Program by rule shall adopt
 the memorandum of understanding required by Section 167.012, Occupations
 Code, as added by this Act.
       SECTIONi33.iiNot later than September 1, 2021, the Texas State Board of
 Acupuncture Examiners and the Texas Medical Board shall obtain criminal
 history record information on each person who, on the effective date of this Act,
5956             86th LEGISLATURE — REGULAR SESSION

 holds a license issued under Chapter 205 or 206, Occupations Code, as
 applicable, and did not undergo a criminal history record information check based
 on the license holder ’s fingerprints on the initial application for the license. A
 board may suspend the license of a license holder who does not provide the
 criminal history record information as required by the board and this section.
      SECTIONi34.iiNot later than January 1, 2020, the Texas Medical Board
 shall approve the rules required by Section 601.1021, Occupations Code, as
 added by this Act.
      SECTIONi35.iiThis Act takes effect September 1, 2019.
             HB 1504 - STATEMENT OF LEGISLATIVE INTENT
 REPRESENTATIVE ZEDLER: Mr. Paddie, thank you very much for your time.
 Is it the intent of HBi1504ito require the removal of a complaint from a
 physician ’s profile if the complaint was found to be baseless, unfounded, or not
 supported by sufficient evidence that a violation occurred or resolves the
 complaint and takes no action?
 REPRESENTATIVE PADDIE: Mr. Zedler, that is correct. That is the intent of
 HBi1504. The Medical Board, within 10idays of such a determination, no matter
 at what point in the investigation process that determination is made, should
 remove that complaint from the physician ’s profile as maintained by the Texas
 Medical Board.
 ZEDLER: And if that occurs, that they should also remove or send a void order
 to the national practitioner database?
 PADDIE: It ’s my understanding, Mr. Zedler, that currently when that happens,
 current statute says that they will give that notification or, as it is properly termed,
 a void order. So they should absolutely continue to do what the statute requires
 them to do today.
                        REMARKS ORDERED PRINTED
     Representative Zedler moved to print remarks between Representative
 Paddie and Representative Zedler on HBi1504.
       The motion prevailed.
     Representative Paddie moved to adopt the conference committee report on
 HBi1504.
      The motion to adopt the conference committee report on HBi1504 prevailed
 by (Record 1936): 137 Yeas, 0 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Buckley; Bucy; Burns;
 Burrows; Button; Cain; Calanni; Canales; Capriglione; Cole; Coleman; Collier;
 Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Dominguez; Dutton; Fierro;
 Flynn; Frank; Frullo; Geren; Gervin-Hawkins; Goldman; González, J.; González,
 M.; Goodwin; Guerra; Guillen; Gutierrez; Harless; Harris; Hefner; Hernandez;
 Hinojosa; Holland; Howard; Huberty; Hunter; Israel; Johnson, J.E.; Kacal; King,
 K.; King, P.; King, T.; Klick; Krause; Kuempel; Lambert; Landgraf; Lang;
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                          5957

 Larson; Leach; Leman; Longoria; Lopez; Lozano; Martinez; Martinez Fischer;
 Metcalf; Meyer; Meza; Middleton; Miller; Minjarez; Moody; Morales; Morrison;
 Muñoz; Murphy; Murr; Neave; Nevárez; Noble; Oliverson; Ortega; Pacheco;
 Paddie; Parker; Patterson; Paul; Perez; Phelan; Price; Ramos; Raney; Raymond;
 Rodriguez; Rose; Rosenthal; Sanford; Schaefer; Shaheen; Sheffield; Sherman;
 Shine; Smith; Smithee; Springer; Stephenson; Stickland; Stucky; Swanson;
 Talarico; Thierry; Thompson, E.; Thompson, S.; Tinderholt; Toth; Turner, C.;
 Turner, J.; VanDeaver; Walle; White; Wilson; Wray; Wu; Zedler; Zerwas;
 Zwiener.
      Present, not voting — Mr. Speaker(C).
    Absent, Excused — Davis, S.; Herrero; Johnson, E.; Johnson, J.D.; Lucio;
 Romero; Vo.
      Absent — Bowers; Clardy; Deshotel; Farrar; Reynolds.
                       LEAVE OF ABSENCE GRANTED
      The following member was granted leave of absence for the remainder of
 today because of important family business:
      Clardy on motion of Ashby.
        SB 355 - CONFERENCE COMMITTEE REPORT ADOPTED
      Representative Klick submitted the conference committee report on SBi355.
     Representative Klick moved to adopt the conference committee report on
 SBi355.
      The motion to adopt the conference committee report on SBi355 prevailed
 by (Record 1937): 139 Yeas, 0 Nays, 1 Present, not voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione; Cole; Coleman;
 Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel; Dominguez;
 Dutton; Fierro; Flynn; Frank; Frullo; Geren; Gervin-Hawkins; Goldman;
 González, J.; González, M.; Goodwin; Guerra; Guillen; Gutierrez; Harless;
 Harris; Hefner; Hernandez; Hinojosa; Holland; Howard; Huberty; Hunter; Israel;
 Johnson, J.E.; Kacal; King, K.; King, P.; King, T.; Klick; Krause; Kuempel;
 Lambert; Landgraf; Lang; Larson; Leach; Leman; Longoria; Lopez; Lozano;
 Martinez; Martinez Fischer; Metcalf; Meyer; Meza; Middleton; Miller; Minjarez;
 Moody; Morales; Morrison; Muñoz; Murphy; Murr; Neave; Nevárez; Noble;
 Oliverson; Ortega; Pacheco; Paddie; Parker; Patterson; Paul; Perez; Phelan; Price;
 Ramos; Raney; Raymond; Rodriguez; Rose; Rosenthal; Sanford; Schaefer;
 Shaheen; Sheffield; Sherman; Shine; Smith; Smithee; Springer; Stephenson;
 Stickland; Stucky; Swanson; Talarico; Thierry; Thompson, E.; Thompson, S.;
 Tinderholt; Toth; Turner, C.; Turner, J.; VanDeaver; Walle; White; Wilson; Wray;
 Wu; Zedler; Zerwas; Zwiener.
      Present, not voting — Mr. Speaker(C).
5958             86th LEGISLATURE — REGULAR SESSION

     Absent, Excused — Clardy; Davis, S.; Herrero; Johnson, E.; Johnson, J.D.;
 Lucio; Romero; Vo.
       Absent — Farrar; Reynolds.
                        REMARKS ORDERED PRINTED
     Representative Tinderholt moved to print all remarks on CSSBi29 on
 Mayi20.
       The motion prevailed. [Please refer to the supplement to the Day 69 journal
 for the text of the debate on CSSBi29.]
                        REMARKS ORDERED PRINTED
     Representative Stickland moved to print remarks between Representative
 Cain and Representative C. Turner on CSSBi719 on Mayi20.
       The motion prevailed.
                        REMARKS ORDERED PRINTED
      Representative Stickland moved to print all remarks on CSHBi2100 on
 Aprili29.
       The motion prevailed. [Please refer to the supplement to the Day 54 journal
 for the text of the debate on CSHBi2100.]
                        REMARKS ORDERED PRINTED
      Representative Harris moved to print the remarks on the parliamentary
 inquiry between Representative Tinderholt and the chair on Mayi24.
       The motion prevailed.
          BILLS AND RESOLUTIONS SIGNED BY THE SPEAKER
      Notice was given at this time that the speaker had signed bills and
 resolutions in the presence of the house (see the addendum to the daily journal,
 Signed by the Speaker, Senate List Nos. 28, 29, 30, 31, and 32).
                                 HOUSE AT EASE
       At 5:45 p.m., the chair announced that the house would stand at ease.
       The chair called the house to order at 7:30 p.m.
       (Reynolds now present)
                    HR 2181 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2181, suspending the limitations on the conferees for
 HBi700.
                    HR 2185 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2185, suspending the limitations on the conferees for
 HBi4542.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                          5959

                   HR 2187 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2187, suspending the limitations on the conferees for
 SBi2342.
                   HR 2188 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2188, suspending the limitations on the conferees for
 SBi891.
                   HR 2189 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2189, suspending the limitations on the conferees for
 SBi1207.
                   HR 2190 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2190, suspending the limitations on the conferees for
 SBi12.
                   HR 2191 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2191, suspending the limitations on the conferees for
 HBi2327.
                   HR 2193 - NOTICE OF INTRODUCTION
      Pursuant to Rule 13, Section 9(f), of the House Rules, the chair announced
 the introduction of HRi2193, suspending the limitations on the conferees for
 HBi3745.
                              HR 2184 - ADOPTED
                                 (by Burrows)
      The following privileged resolution was laid before the house:
      HRi2184
      BE IT RESOLVED by the House of Representatives of the State of Texas,
 86th Legislature, Regular Session, 2019, That House Rule 13, Section 9(a), be
 suspended in part as provided by House Rule 13, Section 9(f), to enable the
 conference committee appointed to resolve the differences on SBi2 (ad valorem
 taxation; authorizing fees) to consider and take action on the following matters:
      (1)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee to
 add text on a matter not included in either the house or senate version of the bill
 by adding the following new SECTION to the bill:
      SECTIONi2.iiChapter 1, Tax Code, is amended by adding Section 1.045 to
 read as follows:
      Sec.i1.045.iiREFERENCE TO CERTAIN TERMS IN LAW. Unless the
 context indicates otherwise:
5960             86th LEGISLATURE — REGULAR SESSION

            (1)iia reference in law to a taxing unit ’s effective maintenance and
 operations rate is a reference to the taxing unit ’s no-new-revenue maintenance
 and operations rate, as defined by Chapter 26;
            (2)iia reference in law to a taxing unit ’s effective tax rate is a reference
 to the taxing unit ’s no-new-revenue tax rate, as defined by Chapter 26; and
            (3)iia reference in law to a taxing unit ’s rollback tax rate is a reference to
 the taxing unit ’s voter-approval tax rate, as defined by Chapter 26.
       Explanation: The addition is necessary to ensure that references in other law
 to terms in Title 1 of the Tax Code that are changed in the bill are construed in
 accordance with the way those terms are used in the bill.
       (2)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 36 of the bill, in added
 Section 26.04(c-1)(2), Tax Code, to read as follows:
            (2)iithe third tax year after the tax year in which the disaster occurred.
       Explanation: The change is necessary to limit the period of time during
 which certain taxing units may calculate the voter-approval tax rate of the taxing
 unit at a higher rate following certain disasters.
       (3)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 36 of the bill, in amended
 Section 26.04(e), Tax Code, to read as follows:
       (e)iiBy August 7 or as soon thereafter as practicable, the designated officer
 or employee shall submit the rates to the governing body. The designated officer
 or employee [He] shall post prominently on the home page of the taxing unit ’s
 Internet website [deliver by mail to each property owner in the unit or publish in a
 newspaper] in the form prescribed by the comptroller:
            (1)iithe no-new-revenue [effective] tax rate, the voter-approval
 [rollback] tax rate, and an explanation of how they were calculated;
            (2)iithe estimated amount of interest and sinking fund balances and the
 estimated amount of maintenance and operation or general fund balances
 remaining at the end of the current fiscal year that are not encumbered with or by
 corresponding existing debt obligation; and
            (3)iia schedule of the taxing unit ’s debt obligations showing:
                 (A)iithe amount of principal and interest that will be paid to service
 the taxing unit ’s debts in the next year from property tax revenue, including
 payments of lawfully incurred contractual obligations providing security for the
 payment of the principal of and interest on bonds and other evidences of
 indebtedness issued on behalf of the taxing unit by another political subdivision
 and, if the taxing unit is created under Section 52, Article III, or Section 59,
 Article XVI, Texas Constitution, payments on debts that the taxing unit
 anticipates to incur in the next calendar year;
                 (B)iithe amount by which taxes imposed for debt are to be increased
 because of the taxing unit s’ anticipated collection rate; and
                 (C)iithe total of the amounts listed in Paragraphs (A)-(B), less any
 amount collected in excess of the previous year ’s anticipated collections certified
 as provided in Subsection (b)[;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5961

            [(4)iithe amount of additional sales and use tax revenue anticipated in
 calculations under Section 26.041;
            [(5)iia statement that the adoption of a tax rate equal to the effective tax
 rate would result in an increase or decrease, as applicable, in the amount of taxes
 imposed by the unit as compared to last year ’s levy, and the amount of the
 increase or decrease;
            [(6)iiin the year that a taxing unit calculates an adjustment under
 Subsection (i) or (j), a schedule that includes the following elements:
                 [(A)iithe name of the unit discontinuing the department, function, or
 activity;
                 [(B)iithe amount of property tax revenue spent by the unit listed
 under Paragraph (A) to operate the discontinued department, function, or activity
 in the 12 months preceding the month in which the calculations required by this
 chapter are made; and
                 [(C)iithe name of the unit that operates a distinct department,
 function, or activity in all or a majority of the territory of a taxing unit that has
 discontinued operating the distinct department, function, or activity; and
            [(7)iiin the year following the year in which a taxing unit raised its
 rollback rate as required by Subsection (j), a schedule that includes the following
 elements:
                 [(A)iithe amount of property tax revenue spent by the unit to
 operate the department, function, or activity for which the taxing unit raised the
 rollback rate as required by Subsection (j) for the 12 months preceding the month
 in which the calculations required by this chapter are made; and
                 [(B)iithe amount published by the unit in the preceding tax year
 under Subdivision (6)(B)].
      Explanation: The change is necessary to remove the requirement that the
 designated officer or employee of a taxing unit publish certain tax information in
 a newspaper.
      (4)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 37 of the bill, in added
 Section 26.041(c-1)(2), Tax Code, to read as follows:
            (2)iithe third tax year after the tax year in which the disaster occurred.
      Explanation: The change is necessary to limit the period of time during
 which certain taxing units may calculate the voter-approval tax rate of the taxing
 unit at a higher rate following certain disasters.
      (5)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee to
 add text on a matter not included in either the house or senate version of the bill
 in proposed SECTION 43 of the bill by adding the following new Section
 26.0443, Tax Code, to the bill:
      Sec.i26.0443.iiTAX RATE ADJUSTMENT FOR ELIGIBLE COUNTY
 HOSPITAL EXPENDITURES. (a) In this section:
            (1)ii"Eligible county hospital" means a hospital that:
                 (A)iiis:
                      (i)iiowned or leased by a county and operated in accordance
 with Chapter 263, Health and Safety Code; or
5962            86th LEGISLATURE — REGULAR SESSION

                     (ii)iiowned or leased jointly by a municipality and a county and
 operated in accordance with Chapter 265, Health and Safety Code; and
                 (B)iiis located in an area not served by a hospital district created
 under Sections 4 through 11, Article IX, Texas Constitution.
            (2)ii"Eligible county hospital expenditures" for a tax year means the
 amount paid by a county or municipality in the period beginning on July 1 of the
 tax year preceding the tax year for which the tax is adopted and ending on June
 30 of the tax year for which the tax is adopted to maintain and operate an eligible
 county hospital.
       (b)iiIf a county ’s or municipality ’s eligible county hospital expenditures
 exceed the amount of those expenditures for the preceding tax year, the
 no-new-revenue maintenance and operations rate for the county or municipality,
 as applicable, is increased by the lesser of the rates computed according to the
 following formulas:
       (Current Tax Year s’ Eligible County Hospital Expenditures - Preceding
       Tax Year s’ Eligible County Hospital Expenditures) / (Current Total
       Value - New Property Value)
 or
       (Preceding Tax Year ’s Eligible County Hospital Expenditures x 0.08) /
       (Current Total Value - New Property Value)
       (c)iiThe county or municipality shall include a notice of the increase in the
 no-new-revenue maintenance and operations rate provided by this section,
 including a description and amount of eligible county hospital expenditures, in
 the information published under Section 26.04(e) and, as applicable, in the notice
 prescribed by Section 26.06 or 26.061.
       Explanation: The addition is necessary to add a provision to Title 1 of the
 Tax Code to provide for a tax rate adjustment for eligible county hospital
 expenditures.
       (6)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 48 of the bill, in amended
 Section 26.06(a), Tax Code, to read as follows:
       (a)iiA public hearing required by Section 26.05 may not be held before the
 fifth [seventh] day after the date the notice of the public hearing is given. The
 [second hearing may not be held earlier than the third day after the date of the
 first hearing. Each] hearing must be on a weekday that is not a public holiday.
 The [Each] hearing must be held inside the boundaries of the unit in a publicly
 owned building or, if a suitable publicly owned building is not available, in a
 suitable building to which the public normally has access. At the hearing
 [hearings], the governing body must afford adequate opportunity for proponents
 and opponents of the tax increase to present their views.
       Explanation: The change is necessary to prohibit holding a public hearing on
 certain proposed tax rates before the fifth day after the date the notice of hearing
 is given.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5963

       (7)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 48 of the bill, in added
 Sections 26.06(b-1) and (b-3), Tax Code, in the language of the statement
 prescribed by those subsections that describes the effect of the rejection by the
 voters of the proposed tax rate, to read as follows:
 If a majority of the voters reject the proposed tax rate, the tax rate of the (name of
 taxing unit) will be the voter-approval tax rate.
       Explanation: The change is necessary to provide notice of what tax rate
 applies to a taxing unit in a tax year if the voters reject a proposed tax rate that
 exceeds the voter-approval tax rate.
       (8)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee to
 add text on a matter not in disagreement in SECTION 48 of the bill, in added
 Sections 26.06(b-1), (b-2), and (b-3), Tax Code, to read as follows:
       "The 86th Texas Legislature modified the manner in which the
 voter-approval tax rate is calculated to limit the rate of growth of property taxes
 in the state."
       Explanation: The addition is necessary to require that the notice of a public
 hearing on certain proposed tax rates include a statement that the 86th Texas
 Legislature modified the manner in which the voter-approval tax rate is
 calculated.
       (9)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 48 of the bill, in amended
 Sections 26.06(d) and (e), Tax Code, to read as follows:
       (d)iiThe governing body may vote on the proposed tax rate at the public
 hearing. If the governing body does not vote on the proposed tax rate at the
 public hearing, [At the public hearings] the governing body shall announce at the
 public hearing the date, time, and place of the meeting at which it will vote on the
 proposed tax rate. [After each hearing the governing body shall give notice of the
 meeting at which it will vote on the proposed tax rate and the notice shall be in
 the same form as prescribed by Subsections (b) and (c), except that it must state
 the following:
                     ["NOTICE OF TAX REVENUE INCREASE
       ["The (name of the taxing unit) conducted public hearings on (date of first
 hearing) and (date of second hearing) on a proposal to increase the total tax
 revenues of the (name of the taxing unit) from properties on the tax roll in the
 preceding year by (percentage by which proposed tax rate exceeds lower of
 rollback tax rate or effective tax rate calculated under this chapter) percent.
       ["The total tax revenue proposed to be raised last year at last year ’s tax rate
 of (insert tax rate for the preceding year) for each $100 of taxable value was
 (insert total amount of taxes imposed in the preceding year).
       ["The total tax revenue proposed to be raised this year at the proposed tax
 rate of (insert proposed tax rate) for each $100 of taxable value, excluding tax
 revenue to be raised from new property added to the tax roll this year, is (insert
 amount computed by multiplying proposed tax rate by the difference between
 current total value and new property value).
5964            86th LEGISLATURE — REGULAR SESSION

       ["The total tax revenue proposed to be raised this year at the proposed tax
 rate of (insert proposed tax rate) for each $100 of taxable value, including tax
 revenue to be raised from new property added to the tax roll this year, is (insert
 amount computed by multiplying proposed tax rate by current total value).
       ["The (governing body of the taxing unit) is scheduled to vote on the tax rate
 that will result in that tax increase at a public meeting to be held on (date of
 meeting) at (location of meeting, including mailing address) at (time of meeting).
       ["The (governing body of the taxing unit) proposes to use the increase in
 total tax revenue for the purpose of (description of purpose of increase)."]
       (e)iiA [The] meeting to vote on the tax increase may not be held [earlier than
 the third day or] later than the seventh [14th] day after the date of the [second]
 public hearing. The meeting must be held inside the boundaries of the taxing unit
 in a publicly owned building or, if a suitable publicly owned building is not
 available, in a suitable building to which the public normally has access. [If the
 governing body does not adopt a tax rate that exceeds the lower of the rollback
 tax rate or the effective tax rate by the 14th day, it must give a new notice under
 Subsection (d) before it may adopt a rate that exceeds the lower of the rollback
 tax rate or the effective tax rate.]
       Explanation: The changes are necessary to provide the manner in which the
 governing body of a taxing unit must in certain circumstances provide notice of
 the meeting at which the governing body will adopt the taxing unit ’s proposed tax
 rate.
       (10)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in SECTION 49 of the bill, in added
 Section 26.061(b), Tax Code, to read as follows:
       "The 86th Texas Legislature modified the manner in which the
 voter-approval tax rate is calculated to limit the rate of growth of property taxes
 in the state."
       Explanation: The addition is necessary to require that the notice of a meeting
 on certain proposed tax rates include a statement that the 86th Texas Legislature
 modified the manner in which the voter-approval tax rate is calculated.
       (11)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee
 to amend text not in disagreement in proposed SECTION 57 of the bill, in added
 Section 26.16(d-2), Tax Code, to read as follows:
       (d-2)iiNot later than August 7, the county assessor-collector shall post on the
 website the tax rate calculation forms described by Subsection (d-1)(1) for the
 current tax year.
       Explanation: The change is necessary to give the county assessor-collector
 of a county more time to post certain tax rate calculation forms on the Internet.
       (12)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in SECTION 57 of the bill, in added
 Section 26.17(a), Tax Code, to read as follows:
            (6)iiincludes the following statement: "The 86th Texas Legislature
 modified the manner in which the voter-approval tax rate is calculated to limit the
 rate of growth of property taxes in the state.".
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5965

       Explanation: The addition is necessary to require the chief appraiser of an
 appraisal district to include in a property tax database a statement that the 86th
 Texas Legislature modified the manner in which the voter-approval tax rate is
 calculated.
       (13)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee
 to amend text not in disagreement in proposed SECTION 58 of the bill, in
 amended Section 31.12(b)(2), Tax Code, to read as follows:
            (2)iiif the refund is required by Section 26.07(g) or 26.075(k), on the
 date the results of the election to approve or reduce the tax rate, as applicable, are
 certified;
       Explanation: The change is necessary to change the date on which liability
 for certain tax refunds arises.
       (14)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in SECTION 66 of the bill, in
 amended Section 41.66, Tax Code, to read as follows:
       (j-2)iiAn appraisal review board must schedule a hearing on a protest filed
 by a property owner who is 65 years of age or older, disabled, a military service
 member, a military veteran, or the spouse of a military service member or military
 veteran before scheduling a hearing on a protest filed by a designated agent of a
 property owner.
       Explanation: The addition is necessary to require an appraisal review board
 to schedule a hearing on a protest filed by certain persons before those of other
 persons.
       (15)iiHouse Rule 13, Section 9(a)(2), is suspended to permit the committee
 to omit text not in disagreement by omitting SECTION 68 of the senate
 engrossment of SBi2iand the corresponding section of the bill as the bill was
 amended by the house, which reads as follows:
       SECTIONi68.iiSection 45.105(e), Education Code, is amended to read as
 follows:
       (e)iiThe governing body of an independent school district that governs a
 junior college district under Subchapter B, Chapter 130, in a county with a
 population of more than two million may dedicate a specific percentage of the
 local tax levy to the use of the junior college district for facilities and equipment
 or for the maintenance and operating expenses of the junior college district. To be
 effective, the dedication must be made by the governing body on or before the
 date on which the governing body adopts its tax rate for a year. The amount of
 local tax funds derived from the percentage of the local tax levy dedicated to a
 junior college district from a tax levy may not exceed the amount that would be
 levied by five percent of the no-new-revenue [effective] tax rate for the tax year
 calculated as provided by Section 26.04, Tax Code, on all property taxable by the
 school district. All real property purchased with these funds is the property of the
 school district, but is subject to the exclusive control of the governing body of the
 junior college district for as long as the junior college district uses the property
 for educational purposes.
       Explanation: The omission is necessary to ensure consistency of
 terminology used in the Education Code to describe certain tax rates.
5966             86th LEGISLATURE — REGULAR SESSION

       (16)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new SECTIONS to the bill:
       SECTIONi76.iiSection 281.107(j), Health and Safety Code, is amended to
 read as follows:
       (j)iiThe portion of the rate of ad valorem tax that is to be levied and assessed
 each year by or for the district that is allocated by the district to the payment of
 the principal of and the interest on bonds and other obligations or the
 maintenance of reserves therefor in accordance with this section shall be applied
 as a payment on current debt in calculating the current debt rate under the
 applicable voter-approval tax rate [rollback] provisions of Chapter 26, Tax Code.
       SECTIONi77.iiThe heading to Section 281.124, Health and Safety Code, is
 amended to read as follows:
       Sec.i281.124.iiELECTION TO APPROVE TAX RATE IN EXCESS OF
 VOTER-APPROVAL [ROLLBACK] TAX RATE.
       Explanation: The addition is necessary to ensure consistency of terminology
 used in the Health and Safety Code and Title 1 of the Tax Code to describe
 certain tax rates.
       (17)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in SECTION 78 of the bill, in
 amended Section 281.124, Health and Safety Code, to read as follows:
       (b)iiThe board may hold an election at which the registered voters of the
 district may approve a tax rate for the current tax year that exceeds the district ’s
 voter-approval [rollback] tax rate for the year computed under Chapter 26, Tax
 Code, by a specific rate stated in dollars and cents per $100 of taxable value.
       (c)iiAn election under this section must be held at least 180 days before the
 date on which the district ’s tax rate is adopted by the board.iiAt the election, the
 ballot shall be prepared to permit voting for or against the
 proposition:ii"Approving the ad valorem tax rate of $ (insert total proposed tax
 rate) per $100 valuation in (insert district name) for the (insert current tax year)
 tax year, a rate that exceeds the district ’s voter-approval [rollback] tax rate.iiThe
 proposed ad valorem tax rate exceeds the ad valorem tax rate most recently
 adopted by the district by $ (insert difference between proposed and preceding
 year ’s tax rates) per $100 valuation."
       Explanation: The addition is necessary to ensure consistency of terminology
 used in the Health and Safety Code and Title 1 of the Tax Code to describe
 certain tax rates.
       (18)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new SECTION to the bill:
       SECTIONi85.iiSection 49.057, Water Code, is amended by amending
 Subsection (b) and adding Subsection (b-1) to read as follows:
       (b)iiThe board shall adopt an annual budget. The board of a developed
 district, as defined by Section 49.23602, shall include as an appendix to the
 budget the district ’s:
            (1)iiaudited financial statements;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5967

            (2)iibond transcripts; and
            (3)iiengineer ’s reports required by Section 49.106.
       (b-1)iiAll district employees are employed at the will of the district unless
 the district and employee execute a written employment contract.
       Explanation: The addition is necessary to ensure that the board of certain
 special districts includes an appendix in the district ’s budget that includes certain
 information.
       (19)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee
 to amend text not in disagreement in proposed SECTION 105 of the bill, in the
 transition language, to read as follows:
       SECTIONi105.ii(a) An appraisal district established in a county with a
 population of 200,000 or more and each taxing unit located wholly or primarily
 in such an appraisal district shall comply with Sections 26.04(e-2), 26.05(d-1)
 and (d-2), 26.17, and 26.18, Tax Code, as added by this Act, beginning with the
 2020itax year.
       (b)iiAn appraisal district established in a county with a population of less
 than 200,000 and each taxing unit located wholly or primarily in such an
 appraisal district shall comply with Sections 26.04(e-2), 26.05(d-1) and (d-2),
 26.17, and 26.18, Tax Code, as added by this Act, beginning with the 2021 tax
 year.
       Explanation: The change is necessary to provide for the applicability and
 implementation of certain provisions of the Tax Code added by the bill.
       (20)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee
 to amend text not in disagreement in proposed SECTION 111 of the bill, in the
 transition language, to read as follows:
       SECTIONi111.iiSections 41.46, 41.461, 41.47, 41.66(h), (i), and (j), and
 41.67, Tax Code, as amended by this Act, and Sections 41.66(j-1), (j-2), and (p),
 Tax Code, as added by this Act, apply only to a protest for which the notice of
 protest was filed by a property owner or the designated agent of the owner with
 the appraisal review board established for an appraisal district on or after
 Januaryi1, 2020.
       Explanation: The change is necessary to provide for the implementation of
 certain provisions of the Tax Code added by the bill.
       (21)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new SECTIONS to the bill:
       SECTIONi115.iiSection 42.081, Tax Code, as added by this Act, applies
 only to an appeal under Chapter 42, Tax Code, that is filed on or after Januaryi1,
 2020.
       SECTIONi117.iiSection 49.057, Water Code, as amended by this Act,
 applies only to a budget adopted on or after January 1, 2020.
       Explanation: The changes are necessary to provide for the implementation of
 certain provisions of the Tax Code and Water Code added by the bill.
5968            86th LEGISLATURE — REGULAR SESSION

      (22)iiHouse Rule 13, Section 9(a)(2), is suspended to permit the committee
 to omit text not in disagreement in SECTION 110 of the senate engrossment of
 SBi2iand the corresponding section of the bill as the bill was amended by the
 house by striking references to Sections 26.04(e-2), (e-3), and (e-4) and Sections
 26.05(d-1) and (d-2), Tax Code.
      Explanation: The omission is necessary to implement the changes made in
 SECTION 105 by the bill.
      HR 2184 was adopted by (Record 1938): 116 Yeas, 19 Nays, 1 Present, not
 voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Bell, C.; Bell, K.;
 Biedermann; Blanco; Bohac; Bonnen; Buckley; Bucy; Burns; Burrows; Button;
 Cain; Calanni; Canales; Capriglione; Coleman; Cortez; Craddick; Cyrier; Darby;
 Dean; Dominguez; Fierro; Flynn; Frank; Frullo; Geren; Goldman; Goodwin;
 Guerra; Guillen; Gutierrez; Harless; Harris; Hefner; Hinojosa; Holland; Howard;
 Huberty; Hunter; Israel; Johnson, J.E.; Kacal; King, K.; King, P.; King, T.; Klick;
 Krause; Kuempel; Lambert; Landgraf; Lang; Larson; Leach; Leman; Longoria;
 Lozano; Martinez; Martinez Fischer; Metcalf; Meyer; Middleton; Miller; Moody;
 Morrison; Muñoz; Murphy; Murr; Nevárez; Noble; Oliverson; Ortega; Pacheco;
 Paddie; Parker; Patterson; Paul; Phelan; Price; Raney; Raymond; Rodriguez;
 Rosenthal; Sanford; Schaefer; Shaheen; Sheffield; Shine; Smith; Smithee;
 Springer; Stephenson; Stickland; Stucky; Swanson; Talarico; Thompson, E.;
 Tinderholt; Toth; Turner, C.; Turner, J.; VanDeaver; Walle; White; Wilson; Wray;
 Wu; Zedler; Zerwas; Zwiener.
     Nays — Beckley; Cole; Collier; Davis, Y.; Gervin-Hawkins; González, J.;
 González, M.; Hernandez; Lopez; Meza; Minjarez; Morales; Neave; Perez;
 Ramos; Reynolds; Sherman; Thierry; Thompson, S.
       Present, not voting — Mr. Speaker(C).
     Absent, Excused — Clardy; Davis, S.; Herrero; Johnson, E.; Johnson, J.D.;
 Lucio; Romero; Vo.
       Absent — Bernal; Bowers; Deshotel; Dutton; Farrar; Rose.
                            STATEMENTS OF VOTE
      When Record No. 1938 was taken, I was shown voting yes. I intended to
 vote no.
                                                                            Calanni
      When Record No. 1938 was taken, I was shown voting no. I intended to
 vote yes.
                                                                             Neave
                       LEAVE OF ABSENCE GRANTED
      The following member was granted leave of absence for the remainder of
 today because of important business:
       Dutton on motion of K. King.
Saturday, May 25, 2019        HOUSE JOURNAL — 74th Day                      5969

         SB 2 - CONFERENCE COMMITTEE REPORT ADOPTED
      Representative Burrows submitted the conference committee report on SBi2.
     Representative Burrows moved to adopt the conference committee report on
 SBi2.
     The motion to adopt the conference committee report on SBi2 prevailed by
 (Record 1939): 88 Yeas, 50 Nays, 0 Present, not voting.
      Yeas — Mr. Speaker(C); Allison; Anderson; Ashby; Bailes; Bell, C.; Bell,
 K.; Biedermann; Bohac; Bonnen; Buckley; Burns; Burrows; Button; Cain;
 Canales; Capriglione; Craddick; Cyrier; Darby; Dean; Flynn; Frank; Frullo;
 Geren; Goldman; Guerra; Guillen; Harless; Harris; Hefner; Holland; Huberty;
 Hunter; Kacal; King, K.; King, P.; Klick; Krause; Kuempel; Lambert; Landgraf;
 Lang; Larson; Leach; Leman; Longoria; Lozano; Metcalf; Meyer; Middleton;
 Miller; Morrison; Muñoz; Murphy; Murr; Noble; Oliverson; Pacheco; Paddie;
 Parker; Patterson; Paul; Phelan; Price; Raney; Raymond; Sanford; Schaefer;
 Shaheen; Sheffield; Shine; Smith; Smithee; Springer; Stephenson; Stickland;
 Stucky; Swanson; Thompson, E.; Tinderholt; Toth; VanDeaver; White; Wilson;
 Wray; Zedler; Zerwas.
      Nays — Allen; Anchia; Beckley; Blanco; Bowers; Bucy; Calanni; Cole;
 Coleman; Collier; Cortez; Davis, Y.; Deshotel; Dominguez; Fierro;
 Gervin-Hawkins; González, J.; González, M.; Goodwin; Gutierrez; Hernandez;
 Hinojosa; Howard; Israel; Johnson, J.E.; Lopez; Martinez; Martinez Fischer;
 Meza; Minjarez; Moody; Morales; Neave; Nevárez; Ortega; Perez; Ramos;
 Reynolds; Rodriguez; Rose; Rosenthal; Sherman; Talarico; Thierry; Thompson,
 S.; Turner, C.; Turner, J.; Walle; Wu; Zwiener.
     Absent, Excused — Clardy; Davis, S.; Dutton; Herrero; Johnson, E.;
 Johnson, J.D.; Lucio; Romero; Vo.
      Absent — Bernal; Farrar; King, T.
                           STATEMENTS OF VOTE
      When Record No. 1939 was taken, I was excused because of illness in the
 family. I would have voted yes.
                                                                       S. Davis
      When Record No. 1939 was taken, I was excused because of family
 business. I would have voted yes.
                                                                       Romero
                              HR 2186 - ADOPTED
                                 (by Huberty)
      The following privileged resolution was laid before the house:
5970             86th LEGISLATURE — REGULAR SESSION

       HR 2186
       BE IT RESOLVED by the House of Representatives of the State of Texas,
 86th Legislature, Regular Session, 2019, That House Rule 13, Section 9(a), be
 suspended in part as provided by House Rule 13, Section 9(f), to enable the
 conference committee appointed to resolve the differences on HBi3 (public
 school finance and public education; creating a criminal offense; authorizing the
 imposition of a fee) to consider and take action on the following matters:
       (1)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 1.004 of the bill,
 amending Section 25.084, Education Code, to read as follows:
       SECTIONi1.004.ii(a) Effective September 1, 2019, Section 25.084(b),
 Education Code, is amended to read as follows:
       (b)iiThe operation of schools year-round by a district does not affect the
 amount of state funds to which the district is entitled under Chapter 48 [42].
       (b)iiEffective September 1, 2020, Section 25.084, Education Code, is
 amended by amending Subsection (b) and adding Subsection (c) to read as
 follows:
       Explanation: The change is necessary to delay the implementation of certain
 provisions of Section 25.084, Education Code.
       (2)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee to
 add text on a matter not in disagreement in proposed SECTION 1.009 of the bill,
 in added Section 45.0032(e), Education Code, to read as follows:
       (e)iiFor the 2019 tax year, Section 48.202(f) applies to a district s’
 maintenance and operations tax rate after adjusting the district ’s rate in
 accordance with this section. This subsection expires September 1, 2020.
       Explanation: The addition is necessary to determine the application of
 Section 48.202(f), Education Code, to a school district ’s maintenance and
 operations tax rate for the 2019itax year.
       (3)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 1.014 of the bill, adding
 Section 48.0051, Education Code, to read as follows:
       SECTIONi1.014.iiEffective September 1, 2020, Subchapter A, Chapter 48,
 Education Code, as added by this Act, is amended by adding Section 48.0051 to
 read as follows:
       Explanation: The change is necessary to delay the implementation of
 Section 48.0051, Education Code.
       (4)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee to
 add text on a matter not in disagreement in SECTION 1.014 of the bill, in added
 Section 48.0051, Education Code, to read as follows:
       (f)iiA school district or open-enrollment charter school may use funding
 attributable to the incentive provided under this section to pay costs associated
 with providing academic instruction in a voluntary summer program for students
 enrolled in the district or school.
       Explanation: The addition is necessary to allow school districts and
 open-enrollment charter schools to use certain funding to pay costs associated
 with certain summer programs.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                          5971

       (5)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 1.015 of the bill, in
 transferred, redesignated, and amended Sections 48.006(a) and (c), Education
 Code, to read as follows:
       (a)iiThe [From funds specifically appropriated for the purpose or other funds
 available to the commissioner for that purpose, the] commissioner may [shall]
 adjust the average daily attendance of a school district all or part of which is
 located in an area declared a disaster area by the governor under Chapter 418,
 Government Code, if the district experiences a decline in average daily
 attendance that is reasonably attributable to the impact of the disaster.
       (c)iiThe commissioner may [shall] make the adjustment under [required by]
 this section for the two-year period following the date of the governor ’s initial
 proclamation or executive order declaring the state of disaster.
       Explanation: The changes are necessary to give the commissioner discretion
 in adjusting the average daily attendance of a school district located wholly or
 partly in a disaster area.
       (6)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee to
 add text on a matter not in disagreement in proposed SECTION 1.019 of the bill,
 in added Sections 48.011(a-1), (b), and (d), Education Code, to read as follows:
       (a-1)iiThe commissioner may modify dates relating to the adoption of a
 school district ’s maintenance and operations tax rate and, if applicable, an
 election required for the district to adopt that rate as necessary to implement the
 changes made by HB 3, 86th Legislature, Regular Session, 2019.
       (b)iiBefore making an adjustment under Subsection (a) or (a-1), the
 commissioner shall notify and must receive approval from the Legislative Budget
 Board and the office of the governor.
       (d)iiBeginning with the 2021-2022 school year, the commissioner may not
 make an adjustment under Subsection (a) or (a-1).
       Explanation: The addition is necessary to permit the commissioner to
 modify dates relating to a school district ’s maintenance and operations tax rate
 after receiving approval from the Legislative Budget Board and the office of the
 governor until the beginning of the 2021-2022 school year.
       (7)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee to
 add text on a matter not in disagreement in proposed SECTION 1.021 of the bill,
 in transferred, redesignated, and amended Section 48.051, Education Code, to
 read as follows:
       (d)iiIn this section, "compensation" includes benefits such as insurance
 premiums.
       Explanation: The addition is necessary to include benefits in the definition
 of "compensation."
       (8)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee to
 add text on a matter not in disagreement in proposed SECTION 1.024 of the bill,
 in added Section 48.101, Education Code, to read as follows:
5972             86th LEGISLATURE — REGULAR SESSION

        (d)iiInstead of the allotment under Subsection (b) or (c)(1), a school district
 that has fewer than 300 students in average daily attendance and is the only
 school district located in and operating in a county is entitled to an annual
 allotment for each student in average daily attendance based on the following
 formula:
                          AA = ((1,600 - ADA) X .00047) X BA
        Explanation: The addition is necessary to provide an allotment for school
 districts with fewer than 300 students in average daily attendance that are the only
 district located in and operating in a county.
        (9)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee to
 amend text not in disagreement in proposed SECTION 1.025 of the bill, in
 transferred, redesignated, and amended Section 48.102(h), Education Code, to
 read as follows:
        (h)iiAt least 55 percent of the funds [Funds] allocated under this section[,
 other than an indirect cost allotment established under State Board of Education
 rule,] must be used in the special education program under Subchapter A,
 Chapter 29.
        Explanation: The change is necessary to require a certain percentage of
 funding provided by the special education allotment to be used for a special
 education program under Subchapter A, Chapter 29, Education Code.
        (10)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new language to proposed SECTION 1.031 of the
 bill:
        Sec.i48.1101.iiSTUDY ON ALTERNATIVE CAREER READINESS
 MEASURES FOR SMALL AND RURAL DISTRICTS.i (a) The agency shall
 conduct a study on alternative career readiness measures for small and rural
 school districts to determine if annual graduates demonstrate career readiness
 under Section 48.110(f)(2)(B).
        (b)iiNot later than January 1, 2021, the agency shall submit to the legislature
 a report on the results of the study and any recommendations for legislative or
 other action.
        (c)iiThis section expires September 1, 2021.
        Explanation: The addition is necessary to require a study on alternative
 career readiness measures for small and rural school districts to determine if
 annual graduates demonstrate career readiness.
        (11)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in proposed SECTION 1.031 of the
 bill, in added Section 48.112(g), Education Code, to read as follows:
        (g)iiA district is entitled to receive an increased allotment under this section
 in the amount necessary for reimbursement for any fees paid under Section
 21.3521.
        Explanation: The addition is necessary to permit a school district to receive
 an allotment in an amount necessary for reimbursement for fees paid under
 Section 21.3521, Education Code.
Saturday, May 25, 2019           HOUSE JOURNAL — 74th Day                             5973

        (12)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in proposed SECTION 1.038 of the
 bill, in transferred, redesignated, and amended Section 48.202, Education Code,
 to read as follows:
        (f-1)iiNotwithstanding Subsection (f), for the 2019-2020ischool year, the
 reduction of a school district ’s tax rate required under Subsection (f) applies to
 the district ’s total enrichment tax rate under Section 45.0032(b) minus eight
 cents. This subsection expires Septemberi1, 2020.
        Explanation: The addition is necessary to determine the portion of a school
 district ’s enrichment tax rate to which the reduction required under Section
 48.202(f-1), Education Code, applies for the 2019-2020ischool year.
        (13)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in proposed SECTION 1.040 of the
 bill, in transferred, redesignated and amended Section 48.256, Education Code, to
 read as follows:
        (d)iiThis subsection applies to a school district in which the board of trustees
 entered into a written agreement with a property owner under Section 313.027,
 Tax Code, for the implementation of a limitation on appraised value under
 Subchapter B or C, Chapter 313, Tax Code. For purposes of determining "DPV"
 under Subsection (a) for a school district to which this subsection applies, the
 commissioner shall exclude a portion of the market value of property not
 otherwise fully taxable by the district under Subchapter B or C, Chapter 313, Tax
 Code, before the expiration of the subchapter. The comptroller shall provide
 information to the agency necessary for this subsection. A revenue protection
 payment required as part of an agreement for a limitation on appraised value shall
 be based on the district ’s taxable value of property for the preceding tax year.
        (e)iiSubsection (d) does not apply to property that was the subject of an
 application under Subchapter B or C, Chapter 313, Tax Code, made after May 1,
 2009, that the comptroller recommended should be disapproved. [A school
 district must raise its total local share of the Foundation School Program to be
 eligible to receive foundation school fund payments.]
        Explanation: The addition is necessary to determine "DPV" for a school
 district that has entered into an agreement for the implementation of a limitation
 on appraised value under Subchapter B or C, Chapter 313, Tax Code.
        (14)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee
 to amend text not in disagreement in proposed SECTION 1.041iof the bill, in
 added Sections 48.257(a) and (b), Education Code, to read as follows:
        (a)iiSubject to Subsection (b), if a school district ’s tier one local share under
 Section 48.256 exceeds the district ’s entitlement under Section 48.266(a)(1) less
 the district ’s distribution from the state available school fund, the district must
 reduce the district ’s tier one revenue level in accordance with Chapter 49 to a
 level not to exceed the district ’s entitlement under Section 48.266(a)(1) less the
 district ’s distribution from the state available school fund.
        (b)iiThis subsection applies only to a school district to which Subsection (a)
 applies. If a district ’s maintenance and operations tax collections from the tax rate
 described by Section 45.0032(a) for the current tax year minus the required
5974             86th LEGISLATURE — REGULAR SESSION

 reduction in a district ’s tier one revenue level under Subsection (a) results in an
 amount that is less than the amount of the district ’s entitlement under Section
 48.266(a)(1) less the district ’s distribution from the state available school fund,
 the agency shall adjust the amount of the reduction required in the district ’s tier
 one revenue level under Subsection (a) up to the amount of local funds necessary
 for the district ’s entitlement under Section 48.266(a)(1) less the district ’s
 distribution from the state available school fund.
       Explanation: The change is necessary to determine the amount by which a
 school district is required to reduce the district s’ local revenue level under Section
 48.257(a), Education Code, to a level not to exceed the district ’s entitlement less
 the district ’s distribution from the state available school fund.
       (15)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new SECTION to proposed ARTICLE 1 of the bill:
       SECTIONi1.046.iiSubchapter G, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.302 to read as follows:
       Sec.i48.302.iiSUBSIDY FOR HIGH SCHOOL EQUIVALENCY
 EXAMINATION FOR CERTAIN INDIVIDUALS. (a) In this section,
 "commission" means the Texas Workforce Commission.
       (b)iiThe agency shall enter into a memorandum of understanding with the
 commission for the agency to transfer to the commission funds specifically
 appropriated to the agency for the commission to provide to an individual who is
 21 years of age or older a subsidy in an amount equal to the cost of taking one
 high school equivalency examination administered under Section 7.111.
       (c)iiThe commission shall adopt rules to implement the subsidy program
 described by Subsection (b), including rules regarding eligibility requirements.
       Explanation: The addition is necessary to provide for a subsidy for certain
 individuals to take a high school equivalency examination.
       (16)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding proposed SECTION 1.061 to the bill, amending Section
 403.302(d), Government Code, to read as follows:
       SECTIONi1.061.iiSection 403.302(d), Government Code, is amended to
 read as follows:
       (d)iiFor the purposes of this section, "taxable value" means the market value
 of all taxable property less:
            (1)iithe total dollar amount of any residence homestead exemptions
 lawfully granted under Section 11.13(b) or (c), Tax Code, in the year that is the
 subject of the study for each school district;
            (2)iione-half of the total dollar amount of any residence homestead
 exemptions granted under Section 11.13(n), Tax Code, in the year that is the
 subject of the study for each school district;
            (3)iithe total dollar amount of any exemptions granted before May 31,
 1993, within a reinvestment zone under agreements authorized by Chapter 312,
 Tax Code;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5975

            (4)iisubject to Subsection (e), the total dollar amount of any captured
 appraised value of property that:
                 (A)iiis within a reinvestment zone created on or before May 31,
 1999, or is proposed to be included within the boundaries of a reinvestment zone
 as the boundaries of the zone and the proposed portion of tax increment paid into
 the tax increment fund by a school district are described in a written notification
 provided by the municipality or the board of directors of the zone to the
 governing bodies of the other taxing units in the manner provided by former
 Section 311.003(e), Tax Code, before May 31, 1999, and within the boundaries
 of the zone as those boundaries existed on September 1, 1999, including
 subsequent improvements to the property regardless of when made;
                 (B)iigenerates taxes paid into a tax increment fund created under
 Chapter 311, Tax Code, under a reinvestment zone financing plan approved under
 Section 311.011(d), Tax Code, on or before September 1, 1999; and
                 (C)iiis eligible for tax increment financing under Chapter 311, Tax
 Code;
            (5)iithe total dollar amount of any captured appraised value of property
 that:
                 (A)iiis within a reinvestment zone:
                      (i)iicreated on or before December 31, 2008, by a municipality
 with a population of less than 18,000; and
                      (ii)iithe project plan for which includes the alteration,
 remodeling, repair, or reconstruction of a structure that is included on the
 National Register of Historic Places and requires that a portion of the tax
 increment of the zone be used for the improvement or construction of related
 facilities or for affordable housing;
                 (B)iigenerates school district taxes that are paid into a tax increment
 fund created under Chapter 311, Tax Code; and
                 (C)iiis eligible for tax increment financing under Chapter 311, Tax
 Code;
            (6)iithe total dollar amount of any exemptions granted under Section
 11.251 or 11.253, Tax Code;
            (7)iithe difference between the comptroller ’s estimate of the market
 value and the productivity value of land that qualifies for appraisal on the basis of
 its productive capacity, except that the productivity value estimated by the
 comptroller may not exceed the fair market value of the land;
            (8)iithe portion of the appraised value of residence homesteads of
 individuals who receive a tax limitation under Section 11.26, Tax Code, on which
 school district taxes are not imposed in the year that is the subject of the study,
 calculated as if the residence homesteads were appraised at the full value required
 by law;
            (9)iia portion of the market value of property not otherwise fully taxable
 by the district at market value because of[:
                 [(A)]iiaction required by statute or the constitution of this state,
 other than Section 11.311, Tax Code, that, if the tax rate adopted by the district is
 applied to it, produces an amount equal to the difference between the tax that the
5976             86th LEGISLATURE — REGULAR SESSION

 district would have imposed on the property if the property were fully taxable at
 market value and the tax that the district is actually authorized to impose on the
 property, if this subsection does not otherwise require that portion to be deducted;
 [or
                 [(B)iiaction taken by the district under Subchapter B or C, Chapter
 313, Tax Code, before the expiration of the subchapter;]
            (10)iithe market value of all tangible personal property, other than
 manufactured homes, owned by a family or individual and not held or used for
 the production of income;
            (11)iithe appraised value of property the collection of delinquent taxes
 on which is deferred under Section 33.06, Tax Code;
            (12)iithe portion of the appraised value of property the collection of
 delinquent taxes on which is deferred under Section 33.065, Tax Code; and
            (13)iithe amount by which the market value of a residence homestead to
 which Section 23.23, Tax Code, applies exceeds the appraised value of that
 property as calculated under that section.
       Explanation: The addition is necessary to remove from the definition of
 "taxable value" a portion of the market value of certain property.
       (17)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding proposed SECTION 1A.001 to the bill, amending Section 13.054,
 Education Code, to read as follows:
       SECTIONi1A.001.iiEffective September 1, 2020, Section 13.054,
 Education Code, is amended by amending Subsection (f) and adding Subsection
 (f-1) to read as follows:
       (f)iiFor five years beginning with the school year in which the annexation
 occurs, a school district shall receive additional funding under this subsection or
 Subsection (h). The amount of funding shall be determined by multiplying the
 lesser of the enlarged district ’s local fund assignment computed under Section
 48.256 [42.252] or the enlarged district s’ total cost of tier one by a fraction, the
 numerator of which is the number of students residing in the territory annexed to
 the receiving district preceding the date of the annexation and the denominator of
 which is the number of students residing in the district as enlarged on the date of
 the annexation, and multiplying the resulting product by the quotient of the
 enlarged district ’s maximum compressed tax rate, as determined under Section
 48.2551, for the current school year divided by the receiving district ’s maximum
 compressed tax rate, as determined under Section 48.2551, for the year in which
 the annexation occurred.
       (f-1)iiNotwithstanding Subsection (f), for an annexation that occurred before
 September 1, 2019, for five years beginning with the school year in which the
 annexation occurs, a school district shall receive additional funding under this
 subsection or Subsection (h). The amount of funding shall be determined by
 multiplying the lesser of the enlarged district ’s local fund assignment computed
 under Section 48.256 or the enlarged district s’ total cost of tier one by a fraction,
 the numerator of which is the number of students residing in the territory annexed
 to the receiving district preceding the date of the annexation and the denominator
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            5977

 of which is the number of students residing in the district as enlarged on the date
 of the annexation, and dividing the receiving district ’s maximum compressed tax
 rate, as determined under Section 48.2551. This subsection expires September 1,
 2021.
       Explanation: The addition is necessary to determine an additional amount of
 funding to which a district to which territory is annexed under Section 13.054,
 Education Code, is entitled beginning September 1, 2020.
       (18)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new language to SECTION 1A.007 of the bill:
       S e c . i 4 8 . 2 5 5 4 . i i S T U D Y O N D I S T R I C T P R O P E RT Y TA X
 COMPRESSION. (a) The Legislative Budget Board, in conjunction with other
 appropriate state agencies, shall study possible methods of providing property tax
 relief through the reduction of school district maintenance and operations taxes.
 The study must evaluate:
            (1)iipotential sources of revenue that may be used to reduce school
 district maintenance and operations taxes;
            (2)iimethods of limiting increases in maintenance and operations tax
 revenue that adjust for enrollment growth, inflation, and other relevant factors;
 and
            (3)iifor each method of providing property tax relief considered:
                   (A)iiany difference in anticipated benefits to property taxpayers
 based on the school district in which the taxpayer resides;
                   (B)iithe cost to the state; and
                   (C)iithe anticipated impact on equity in the public school finance
 system.
       (b)iiNot later than September 1, 2020, the Legislative Budget Board shall
 submit to the governor, the lieutenant governor, and the speaker of the house of
 representatives a report on the results of the study and any recommendations for
 legislative or other action.
       (c)iiThis section expires September 1, 2021.
       Explanation: The addition is necessary to require a study on methods of
 providing property tax relief through the reduction of school district maintenance
 and operations taxes.
       (19)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding proposed SECTION 2.005 to the bill, adding Section 21.048(a-2),
 Education Code, to read as follows:
       SECTIONi2.005.iiSection 21.048, Education Code, is amended by adding
 Subsection (a-2) to read as follows:
       (a-2)iiThe board shall adopt rules that provide that in order to teach any
 grade level from prekindergarten through grade six a person must demonstrate
 proficiency in the science of teaching reading on a certification examination for
 each class of certificate issued by the board after January 1, 2021.
5978             86th LEGISLATURE — REGULAR SESSION

       Explanation: The addition is necessary to require the State Board for
 Educator Certification to adopt rules requiring certain teachers to demonstrate
 proficiency in the science of teaching reading on a certification examination.
       (20)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding proposed SECTION 2.008 to the bill, adding Section 21.3521,
 Education Code, to read as follows:
       SECTIONi2.008.iiSubchapter H, Chapter 21, Education Code, is amended
 by adding Section 21.3521 to read as follows:
       Sec.i21.3521.iiLOCAL OPTIONAL TEACHER DESIGNATION
 SYSTEM. (a) Subject to Subsection (b), a school district or open-enrollment
 charter school may designate a certified classroom teacher as a master,
 exemplary, or recognized teacher for a five-year period based on the results from
 single year or multiyear appraisals that comply with Section 21.351 or 21.352.
       (b)iiThe commissioner shall establish performance and validity standards for
 each local optional teacher designation system. The performance standards:
            (1)iimust provide a mathematical possibility that all teachers eligible for
 a designation may earn the designation; and
            (2)iimay not require a district to use an assessment instrument adopted
 under Section 39.023 to evaluate teacher performance.
       (c)iiNotwithstanding performance standards established under Subsection
 (b), a classroom teacher that holds a National Board Certification issued by the
 National Board for Professional Teaching Standards may be designated as
 recognized.
       (d)iiThe commissioner shall:
            (1)iiensure that local optional teacher designation systems:
                 (A)iimeet the requirements of this section; and
                 (B)iiprioritize high needs campuses; and
            (2)iienter into a memorandum of understanding with Texas Tech
 University to monitor the quality and fairness of local optional teacher
 designation systems.
       (e)iiThe agency shall develop and provide technical assistance for school
 districts and open-enrollment charter schools that request assistance in
 implementing a local optional teacher designation system, including assistance in
 prioritizing high needs campuses.
       (f)iiA teacher has no vested property right in a teacher designation assigned
 to the teacher under this section. A teacher designation issued under this section
 is void in the determination that the designation was issued improperly.
 Subchapters C through H, Chapter 2001, Government Code, do not apply to the
 voiding of a teacher designation under this subsection.
       (g)iiThe agency shall periodically conduct evaluations of the effectiveness of
 the local optional teacher designation systems under this section and the teacher
 incentive allotment under Section 48.112 and report the results of the evaluations
 to the legislature. A school district or open-enrollment charter school that has
 implemented a local optional teacher designation system or received funds under
 the teacher incentive allotment shall participate in the evaluations.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                           5979

       (h)iiThe agency shall collect information necessary to implement this
 section. Information otherwise confidential remains confidential and is not
 subject to Chapter 552, Government Code.
       (i)iiThe commissioner may adopt fees to implement this section. A fee
 adopted by the agency under this section is not subject to Sections 2001.0045 and
 2001.0221, Government Code.
       (j)iiThe commissioner may adopt rules to implement this section. A decision
 made by the commissioner under this section is final and may not be appealed.
       Explanation: The addition is necessary to permit school districts and
 open-enrollment charter schools to develop local optional teacher designation
 systems.
       (21)iiHouse Rule 13, Section 9(a)(1), is suspended to permit the committee
 to amend text not in disagreement in proposed SECTION 2.011 of the bill,
 adding Section 25.085(i), Education Code, to read as follows:
       SECTIONi2.011.iiEffective September 1, 2020, Section 25.085, Education
 Code, is amended by adding Subsection (i) to read as follows:
       Explanation: The change is necessary to delay the implementation of
 Section 25.085(i), Education Code.
       (22)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill by adding the following new SECTION to proposed ARTICLE 2 of the bill:
       SECTIONi2.013.iiSubchapter A, Chapter 28, Education Code, is amended
 by adding Section 28.0062 to read as follows:
       Sec.i28.0062.iiREADING STANDARDS FOR KINDERGARTEN
 THROUGH THIRD GRADE. (a) Each school district and open-enrollment
 charter school shall:
            (1)iiprovide for the use of a phonics curriculum that uses systematic
 direct instruction in kindergarten through third grade to ensure all students obtain
 necessary early literacy skills;
            (2)iiensure that:
                 (A)iinot later than the 2021-2022 school year, each classroom
 teacher in kindergarten or first, second, or third grade and each principal at a
 campus with kindergarten or first, second, or third grade has attended a teacher
 literacy achievement academy developed under Section 21.4552; and
                 (B)iieach classroom teacher and each principal initially employed in
 a grade level or at a campus described by Paragraph (A) for the 2021-2022 school
 year or a subsequent school year has attended a teacher literacy achievement
 academy developed under Section 21.4552 before the teacher ’s or principal ’s first
 year of placement in that grade level or campus; and
            (3)iicertify to the agency that the district or school:
                 (A)iiprioritizes placement of highly effective teachers in
 kindergarten through second grade; and
                 (B)iihas integrated reading instruments used to diagnose reading
 development and comprehension to support each student in prekindergarten
 through third grade.
5980            86th LEGISLATURE — REGULAR SESSION

        (b)iiThe agency shall provide assistance to school districts and
 open-enrollment charter schools in complying with the requirements under this
 section.
        (c)iiThe agency shall:
             (1)iimonitor the implementation of this section; and
             (2)iiperiodically report to the legislature on the implementation of this
 section and the effectiveness of this section in improving educational outcomes.
        (d)iiThe commissioner shall establish an advisory board to assist the agency
 in fulfilling the agency ’s duties under this section. Chapter 2110, Government
 Code, does not apply to the advisory board.
        (e)iiThe commissioner may adopt rules to implement this section.
        Explanation: The addition is necessary to provide reading standards for
 kindergarten through third grade.
        (23)iiHouse Rule 13, Section 9(a)(4), is suspended to permit the committee
 to add text on a matter not included in either the house or senate version of the
 bill in proposed SECTION 4.001 of the bill by repealing Section 403.302(m),
 Government Code.
        Explanation: The addition is necessary to repeal Section 403.302(m),
 Government Code, which is no longer necessary with the addition of Section
 48.256(e), Education Code.
        (24)iiHouse Rule 13, Section 9(a)(3), is suspended to permit the committee
 to add text on a matter not in disagreement in proposed SECTION 5.002 of the
 bill, in the transition language, to read as follows:
        SECTIONi5.002.iiExcept as otherwise provided by this Act, Section 26.08,
 Tax Code, as amended by this Act, applies beginning with the 2019itax year. A
 school district is required to calculate the district ’s rollback tax rate for the
 2019itax year in the manner provided by Section 26.08, Tax Code, as amended
 by this Act, regardless of whether the district has already calculated that rate or
 adopted a tax rate for the 2019itax year before Septemberi1, 2019.
        Explanation: The addition is necessary to ensure a school district calculates
 the district ’s rollback tax rate for the 2019itax year in accordance with Section
 26.08, Tax Code, as amended by this bill.
      HR 2186 was adopted by (Record 1940): 139 Yeas, 0 Nays, 1 Present, not
 voting.
      Yeas — Allen; Allison; Anchia; Anderson; Ashby; Bailes; Beckley; Bell, C.;
 Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers; Buckley; Bucy;
 Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione; Cole; Coleman;
 Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean; Deshotel; Dominguez;
 Fierro; Flynn; Frank; Frullo; Geren; Gervin-Hawkins; Goldman; González, J.;
 González, M.; Goodwin; Guerra; Guillen; Gutierrez; Harless; Harris; Hefner;
 Hernandez; Hinojosa; Holland; Howard; Huberty; Hunter; Israel; Johnson, J.E.;
 Kacal; King, K.; King, P.; King, T.; Klick; Krause; Kuempel; Lambert; Landgraf;
 Lang; Larson; Leach; Leman; Longoria; Lopez; Lozano; Martinez; Martinez
 Fischer; Metcalf; Meyer; Meza; Middleton; Miller; Minjarez; Moody; Morales;
 Morrison; Muñoz; Murphy; Murr; Neave; Nevárez; Noble; Oliverson; Ortega;
 Pacheco; Paddie; Parker; Patterson; Paul; Perez; Phelan; Price; Ramos; Raney;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5981

 Raymond; Reynolds; Rodriguez; Rose; Rosenthal; Sanford; Schaefer; Shaheen;
 Sheffield; Sherman; Shine; Smith; Smithee; Springer; Stephenson; Stickland;
 Stucky; Swanson; Talarico; Thierry; Thompson, E.; Thompson, S.; Tinderholt;
 Toth; Turner, C.; Turner, J.; VanDeaver; Walle; White; Wilson; Wray; Wu;
 Zedler; Zerwas; Zwiener.
      Present, not voting — Mr. Speaker(C).
     Absent, Excused — Clardy; Davis, S.; Dutton; Herrero; Johnson, E.;
 Johnson, J.D.; Lucio; Romero; Vo.
      Absent — Farrar.
         HB 3 - CONFERENCE COMMITTEE REPORT ADOPTED
      Representative Huberty submitted the following conference committee
 report on HBi3:
                                                         Austin, Texas, May 23, 2019
 The Honorable Dan Patrick
 President of the Senate
 The Honorable Dennis Bonnen
 Speaker of the House of Representatives
      Sirs: We, your conference committee, appointed to adjust the differences
 between the senate and the house of representatives on HBi3 have had the same
 under consideration, and beg to report it back with the recommendation that it do
 pass in the form and text hereto attached.
 Taylor                                     Huberty
 Campbell                                   Ashby
 Nelson                                     Bernal
 Watson                                     M. González
 West                                       K. King
 On the part of the senate                  On the part of the house
       HBi3, A bill to be entitled An Act relating to public school finance and
 public education; creating a criminal offense; authorizing the imposition of a fee.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
                     ARTICLE 1. PUBLIC SCHOOL FINANCE
       SECTIONi1.001.iiSubchapter D, Chapter 11, Education Code, is amended
 by adding Section 11.184 to read as follows:
       Sec.i11.184.iiEFFICIENCY AUDIT. (a) For purposes of this section,
 "efficiency audit" means an investigation of the operations of a school district to
 examine fiscal management, efficiency, and utilization of resources.
       (b)iiExcept as provided by Subsection (b-1), the board of trustees of a school
 district shall conduct an efficiency audit before seeking voter approval to adopt a
 tax rate for the maintenance and operations of the district at an election held for
 that purpose and may not hold the election without complying with this section.
       (b-1)iiThe board of trustees of a school district all or part of which is located
 in an area declared a disaster area by the governor under Chapter 418,
 Government Code, may hold an election to seek voter approval to adopt a
5982            86th LEGISLATURE — REGULAR SESSION

 maintenance and operations tax rate during the two-year period following the
 date of the declaration without conducting an efficiency audit otherwise required
 under this section.
       (c)iiA school district must pay for the costs associated with an efficiency
 audit required under this section.
       (d)iiThe board of trustees of a school district must select an auditor to
 conduct an efficiency audit under this section not later than four months before
 the date on which the district proposes to hold an election to adopt a maintenance
 and operations tax rate.
       (e)iiThe board of trustees of a school district may select for purposes of
 Subsection (d) the auditor that conducts the district ’s annual audit under Section
 44.008 and may include the efficiency audit as part of the district ’s annual audit.
       (f)iiThe Legislative Budget Board shall establish guidelines identifying the
 scope and areas of investigation of an efficiency audit, including identification of
 resources being used effectively and efficiently and identification of cost savings
 or reallocations. The Legislative Budget Board may consult with the agency to
 identify areas in which school districts in this state have a demonstrated history of
 effectively utilizing resources to improve student achievement and achieve cost
 savings. The auditor selected by the board of trustees of a school district must
 follow the guidelines established by the Legislative Budget Board under this
 subsection.
       (g)iiAn auditor selected by the board of trustees of a school district must
 maintain independence from the district and complete the efficiency audit not
 later than three months after the date the auditor was selected.
       (h)iiBefore an election at which a school district seeks voter approval to
 adopt a tax rate the board of trustees of the school district must hold an open
 meeting to discuss the results of the efficiency audit conducted under this section.
 Not later than 30 days before the date of the election, the results of an efficiency
 audit conducted under this section must be posted on the school district ’s Internet
 website.
       (i)iiA school district shall provide all documents, records, and personnel
 requested by the auditor as needed to conduct the audit in an efficient manner.
       SECTIONi1.002.iiSection 12.106, Education Code, is amended by
 amending Subsections (a), (a-1), and (a-2) and adding Subsections (a-3) and (a-4)
 to read as follows:
       (a)iiA charter holder is entitled to receive for the open-enrollment charter
 school funding under Chapter 48 [42] equal to the amount of funding per student
 in weighted average 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) [42.302(a)], to which the charter
 holder would be entitled for the school under Chapter 48 [42] if the school were a
 school district without a tier one local share for purposes of Section
 48.266i[42.253].
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5983

       (a-1)iiIn determining funding for an open-enrollment charter school under
 Subsection (a), the amount of the allotment under Section 48.102iis based solely
 on the basic allotment to which the charter holder is entitled and does not include
 any amount based on the allotment under Section 48.101[:
            [(1)iiadjustments under Sections 42.102, 42.104, and 42.105 are based
 on the average adjustment for the state; and
            [(2)iithe 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].
       (a-2)iiIn addition to the funding provided by Subsection (a), a charter holder
 is entitled to receive for the open-enrollment charter school an allotment per
 student in average daily attendance in an amount equal to the difference between:
            (1)iithe product of:
                 (A)iithe quotient of:
                      (i)iithe total amount of funding provided to eligible school
 districts under Section 48.101(b) or (c); and
                      (ii)iithe total number of students in average daily attendance in
 school districts that receive an allotment under Section 48.101(b) or (c); and
                 (B)iithe sum of one and the quotient of:
                      (i)iithe total number of students in average daily attendance in
 school districts that receive an allotment under Section 48.101(b) or (c); and
                      (ii)iithe total number of students in average daily attendance in
 school districts statewide; and
            (2)ii$125.
       (a-3)iiIn addition to the funding provided by Subsections [Subsection] (a)
 and (a-2), a charter holder is entitled to receive for the open-enrollment charter
 school enrichment funding under Section 48.202 [42.302] based on the state
 average tax effort.
       (a-4)iiIn addition to the funding provided by Subsections (a), (a-2), and
 (a-3), a charter holder is entitled to receive funding for the open-enrollment
 charter school under Sections 48.110 and 48.112 and Subchapter D, Chapter 48,
 if the charter holder would be entitled to the funding if the school were a school
 district.
       SECTIONi1.003.iiSection 13.054(f), Education Code, is amended to read as
 follows:
       (f)iiFor five years beginning with the school year in which the annexation
 occurs, a school district shall receive additional funding under this subsection or
 Subsection (h). The amount of funding shall be determined by multiplying the
 lesser of the enlarged district ’s local fund assignment computed under Section
 48.256 [42.252] or the enlarged district ’s total cost of tier one by a fraction, the
 numerator of which is the number of students residing in the territory annexed to
 the receiving district preceding the date of the annexation and the denominator of
 which is the number of students residing in the district as enlarged on the date of
 the annexation, and dividing the resulting product by the state compression
 percentage, as determined under Section 48.255.
5984            86th LEGISLATURE — REGULAR SESSION

       SECTIONi1.004.ii(a) Effective September 1, 2019, Section 25.084(b),
 Education Code, is amended to read as follows:
       (b)iiThe operation of schools year-round by a district does not affect the
 amount of state funds to which the district is entitled under Chapter 48 [42].
       (b)iiEffective September 1, 2020, Section 25.084, Education Code, is
 amended by amending Subsection (b) and adding Subsection (c) to read as
 follows:
       (b)iiExcept as provided by Subsection (c), the [The] operation of schools
 year-round by a district does not affect the amount of state funds to which the
 district is entitled under Chapter 48 [42].
       (c)iiA district that adopts a year-round system under this section may receive
 the incentive aid under Section 48.0051 if the district meets the criteria for
 receiving the incentive under that section.
       SECTIONi1.005.iiSection 30.003, Education Code, is amended by
 amending Subsection (f-1) and adding Subsection (f-2) to read as follows:
       (f-1)iiThe commissioner shall determine the total amount that the Texas
 School for the Blind and Visually Impaired and the Texas School for the Deaf
 would have received from school districts in accordance with this section if the
 following provisions had not reduced the districts ’share of the cost of providing
 education services:
            (1)iiHBi1, Acts of the 79th Legislature, 3rd Called Session, 2006;
            (2)iiSection 45.0032; and
            (3)iiSection 48.255.
       (f-2)iiThe amount determined under Subsection (f-1), [had not reduced the
 districts ’share of the cost of providing education services. That amount,] minus
 any amount the schools do receive from school districts, shall be set aside as a
 separate account in the foundation school fund and appropriated to those schools
 for educational purposes.
       SECTIONi1.006.iiSection 44.004, Education Code, is amended by
 amending Subsections (c) and (e) and adding Subsection (c-2) to read as follows:
       (c)iiThe notice of public meeting to discuss and adopt the budget and the
 proposed tax rate may not be smaller than one-quarter page of a standard-size or a
 tabloid-size newspaper, and the headline on the notice must be in 18-point or
 larger type. Subject to Subsection (d), the notice must:
            (1)iicontain a statement in the following form:
  "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED
                                       TAX RATE
       "The (name of school district) will hold a public meeting at (time, date, year)
 in (name of room, building, physical location, city, state). The purpose of this
 meeting is to discuss the school district ’s budget that will determine the tax rate
 that will be adopted. Public participation in the discussion is invited." The
 statement of the purpose of the meeting must be in bold type. In reduced type, the
 notice must state: "The tax rate that is ultimately adopted at this meeting or at a
 separate meeting at a later date may not exceed the proposed rate shown below
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5985

 unless the district publishes a revised notice containing the same information and
 comparisons set out below and holds another public meeting to discuss the
 revised notice.";
            (2)iicontain a section entitled "Comparison of Proposed Budget with
 Last Year ’s Budget," which must show the difference, expressed as a percent
 increase or decrease, as applicable, in the amounts budgeted for the preceding
 fiscal year and the amount budgeted for the fiscal year that begins in the current
 tax year for each of the following:
                 (A)iimaintenance and operations;
                 (B)iidebt service; and
                 (C)iitotal expenditures;
            (3)iicontain a section entitled "Total Appraised Value and Total Taxable
 Value," which must show the total appraised value and the total taxable value of
 all property and the total appraised value and the total taxable value of new
 property taxable by the district in the preceding tax year and the current tax year
 as calculated under Section 26.04, Tax Code;
            (4)iicontain a statement of the total amount of the outstanding and
 unpaid bonded indebtedness of the school district;
            (5)iicontain a section entitled "Comparison of Proposed Rates with Last
 Year ’s Rates," which must:
                 (A)iishow in rows the tax rates described by Subparagraphs (i)-(iii),
 expressed as amounts per $100 valuation of property, for columns entitled
 "Maintenance & Operations," "Interest & Sinking Fund," and "Total," which is
 the sum of "Maintenance & Operations" and "Interest & Sinking Fund":
                     (i)iithe school district ’s "Last Year ’s Rate";
                     (ii)iithe "Rate to Maintain Same Level of Maintenance &
 Operations Revenue & Pay Debt Service," which:
                           (a)iiin the case of "Maintenance & Operations," is the tax
 rate that, when applied to the current taxable value for the district, as certified by
 the chief appraiser under Section 26.01, Tax Code, and as adjusted to reflect
 changes made by the chief appraiser as of the time the notice is prepared, would
 impose taxes in an amount that, when added to state funds to be distributed to the
 district under Chapter 48 [42], would provide the same amount of maintenance
 and operations taxes and state funds distributed under Chapter 48 [42] per student
 in average daily attendance for the applicable school year that was available to
 the district in the preceding school year; and
                           (b)iiin the case of "Interest & Sinking Fund," is the tax rate
 that, when applied to the current taxable value for the district, as certified by the
 chief appraiser under Section 26.01, Tax Code, and as adjusted to reflect changes
 made by the chief appraiser as of the time the notice is prepared, and when
 multiplied by the district ’s anticipated collection rate, would impose taxes in an
 amount that, when added to state funds to be distributed to the district under
 Chapter 46iand any excess taxes collected to service the district ’s debt during the
 preceding tax year but not used for that purpose during that year, would provide
 the amount required to service the district ’s debt; and
                     (iii)iithe "Proposed Rate";
5986             86th LEGISLATURE — REGULAR SESSION

                 (B)iicontain fourth and fifth columns aligned with the columns
 required by Paragraph (A) that show, for each row required by Paragraph (A):
                     (i)iithe "Local Revenue per Student," which is computed by
 multiplying the district ’s total taxable value of property, as certified by the chief
 appraiser for the applicable school year under Section 26.01, Tax Code, and as
 adjusted to reflect changes made by the chief appraiser as of the time the notice is
 prepared, by the total tax rate, and dividing the product by the number of students
 in average daily attendance in the district for the applicable school year; and
                     (ii)iithe "State Revenue per Student," which is computed by
 determining the amount of state aid received or to be received by the district
 under Chapters [42,] 43, [and] 46, and 48 and dividing that amount by the
 number of students in average daily attendance in the district for the applicable
 school year; and
                 (C)iicontain an asterisk after each calculation for "Interest
 &iSinking Fund" and a footnote to the section that, in reduced type, states "The
 Interest & Sinking Fund tax revenue is used to pay for bonded indebtedness on
 construction, equipment, or both. The bonds, and the tax rate necessary to pay
 those bonds, were approved by the voters of this district.";
            (6)iicontain a section entitled "Comparison of Proposed Levy with Last
 Year ’s Levy on Average Residence," which must:
                 (A)iishow in rows the information described by Subparagraphs
 (i)-(iv), rounded to the nearest dollar, for columns entitled "Last Year" and "This
 Year":
                     (i)ii"Average Market Value of Residences," determined using
 the same group of residences for each year;
                     (ii)ii"Average Taxable Value of Residences," determined after
 taking into account the limitation on the appraised value of residences under
 Section 23.23, Tax Code, and after subtracting all homestead exemptions
 applicable in each year, other than exemptions available only to disabled persons
 or persons 65 years of age or older or their surviving spouses, and using the same
 group of residences for each year;
                     (iii)ii"Last Year ’s Rate Versus Proposed Rate per $100 Value";
 and
                     (iv)ii"Taxes Due on Average Residence," determined using the
 same group of residences for each year; and
                 (B)iicontain the following information: "Increase (Decrease) in
 Taxes" expressed in dollars and cents, which is computed by subtracting the
 "Taxes Due on Average Residence" for the preceding tax year from the "Taxes
 Due on Average Residence" for the current tax year;
            (7)iicontain the following statement in bold print: "Under state law, the
 dollar amount of school taxes imposed on the residence of a person 65 years of
 age or older or of the surviving spouse of such a person, if the surviving spouse
 was 55iyears of age or older when the person died, may not be increased above
 the amount paid in the first year after the person turned 65, regardless of changes
 in tax rate or property value.";
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5987

            (8)iicontain the following statement in bold print: "Notice of Rollback
 Rate: The highest tax rate the district can adopt before requiring voter approval at
 an election is (the school district rollback rate determined under Section 26.08,
 Tax Code). This election will be automatically held if the district adopts a rate in
 excess of the rollback rate of (the school district rollback rate)."; and
            (9)iicontain a section entitled "Fund Balances," which must include the
 estimated amount of interest and sinking fund balances and the estimated amount
 of maintenance and operation or general fund balances remaining at the end of
 the current fiscal year that are not encumbered with or by corresponding debt
 obligation, less estimated funds necessary for the operation of the district before
 the receipt of the first payment under Chapter 48 [42] in the succeeding school
 year.
       (c-2)iiThe notice described by Subsection (c) must include a statement that a
 school district may not increase the district ’s maintenance and operations tax rate
 to create a surplus in maintenance and operations tax revenue for the purpose of
 paying the district s’ debt service.
       (e)iiA person who owns taxable property in a school district is entitled to an
 injunction restraining the collection of taxes by the district if the district has not
 complied with the requirements of Subsections (b), (c), (c-1), (c-2), and (d), and,
 if applicable, Subsection (i), and the failure to comply was not in good faith. An
 action to enjoin the collection of taxes must be filed before the date the [school]
 district delivers substantially all of its tax bills.
       SECTIONi1.007.iiSubchapter A, Chapter 45, Education Code, is amended
 by adding Section 45.0021 to read as follows:
       Sec.i45.0021.iiRESTRICTION ON MAINTENANCE TAX LEVY. (a) A
 school district may not increase the rate of the district ’s maintenance taxes
 described by Section 45.002 to create a surplus in maintenance tax revenue for
 the purpose of paying the district ’s debt service.
       (b)iiA person who owns taxable property in a school district is entitled to an
 injunction restraining the collection of taxes by the district if the district adopts a
 maintenance tax rate in violation of Subsection (a). An action to enjoin the
 collection of taxes must be filed before the date the district delivers substantially
 all of the district ’s tax bills.
       SECTIONi1.008.iiSection 45.003, Education Code, is amended by adding
 Subsections (b-1) and (d-1) and amending Subsections (d) and (f) to read as
 follows:
       (b-1)iiThe ballot proposition under Subsection (b) must include the
 following statement: "THIS IS A PROPERTY TAX INCREASE."
       (d)iiA proposition submitted to authorize the levy of maintenance taxes must
 include the question of whether the governing board or commissioners court may
 levy, assess, and collect annual ad valorem taxes for the further maintenance of
 public schools, at a rate not to exceed the rate stated in the proposition. For any
 year, the maintenance tax rate per $100 of taxable value adopted by the district
 may not exceed the rate equal to the sum of $0.17 and the product of the state
 compression percentage, as determined under Section 48.255i[42.2516],
 multiplied by $1.00 [$1.50].
5988             86th LEGISLATURE — REGULAR SESSION

       (d-1)iiExcept as otherwise provided by this subsection or Section 26.08(a-1),
 Tax Code, if the rollback tax rate of a school district under Section 26.08(n), Tax
 Code, for the 2019itax year exceeds $1.04iper $100iof taxable value, the district
 may not adopt a maintenance and operations tax rate for the 2019itax year that
 exceeds the district ’s rollback rate. A school district that, before Januaryi1, 2019,
 adopted a strategic plan through action taken by the board of trustees in a public
 meeting that proposed a maintenance and operations tax rate for the 2019itax year
 that exceeds the rate permitted under this subsection may, subject to voter
 approval, adopt the rate proposed in the plan minus the amount by which the
 district is required to reduce the district ’s enrichment tax rate under Section
 48.202(f). This subsection expires Septemberi1, 2020.
       (f)iiNotwithstanding any other law, a district that levied a maintenance tax
 for the 2005itax year at a rate greater than $1.50iper $100iof taxable value in the
 district as permitted by special law may not levy a maintenance tax at a rate that
 exceeds the rate per $100iof taxable value that is equal to the sum of:
            (1)ii$0.17; and
            (2)iithe product of 66.67 percent [the state compression percentage, as
 determined under Section 42.2516,] multiplied by the rate of the maintenance tax
 levied by the district for the 2005 tax year, minus the amount by which
 $1.00iexceeds the product of the state compression percentage, as determined
 under Section 48.255, multiplied by $1.00.
       SECTIONi1.009.iiSubchapter A, Chapter 45, Education Code, is amended
 by adding Section 45.0032ito read as follows:
       Sec.i45.0032.iiCOMPONENTS OF MAINTENANCE AND
 OPERATIONS TAX. (a) A school district ’s tier one maintenance and operations
 tax rate is the number of cents levied by the district for maintenance and
 operations that does not exceed the product of the state compression percentage,
 as determined under Section 48.255, multiplied by $1.00.
       (a-1)iiThis subsection applies to a school district with a tier one maintenance
 and operations tax rate for the 2018-2019ischool year that was less than $1.00iper
 $100iof taxable value. For purposes of determining a school district ’s tier one
 maintenance and operations tax rate under Subsection (a) for the
 2019-2020ischool year, the state compression percentage, as determined under
 Section 48.255, is applied to the number of cents levied by the district for the
 2018-2019ischool year for maintenance and operations that does not exceed
 $1.00. This subsection expires Septemberi1, 2020.
       (b)iiA district ’s enrichment tax rate consists of:
            (1)iiany cents of additional maintenance and operations tax effort, not to
 exceed eight cents over the maximum tax rate described by Subsection (a); and
            (2)iiany cents of additional maintenance and operations tax effort that
 exceeds the sum of the maximum tax rate described by Subsection (a) and the
 maximum number of cents permitted under Subdivision (1).
       (c)iiFor a district to which Section 45.003(f) applies, any cents of
 maintenance and operations tax effort that exceeds the maximum rate permitted
 under Section 45.003(d) are not included in the district ’s tier one maintenance
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5989

 and operations tax rate under Subsection (a) or the district ’s enrichment tax rate
 under Subsection (b), and the district is not entitled to the guaranteed yield
 amount of state funds under Section 48.202ifor those cents of tax effort.
       (d)iiFor a district to which Section 26.08(a-1), Tax Code, applies, the
 amount by which the district ’s maintenance tax rate exceeds the district ’s rollback
 tax rate for the preceding year is not considered in determining a district ’s tier one
 maintenance and operations tax rate under Subsection (a) or the district ’s
 enrichment tax rate under Subsection (b) for the current tax year.
       (e)iiFor the 2019 tax year, Section 48.202(f) applies to a district ’s
 maintenance and operations tax rate after adjusting the district ’s rate in
 accordance with this section. This subsection expires September 1, 2020.
       SECTIONi1.010.iiSubtitle I, Title 2, Education Code, is amended by adding
 Chapter 47 to read as follows:
    CHAPTER 47. TAX REDUCTION AND EXCELLENCE IN EDUCATION
                                            FUND
       Sec.i47.001.iiDEFINITION. In this chapter, "fund" means the tax reduction
 and excellence in education fund.
       Sec.i47.002.iiFUND ESTABLISHED. (a) The tax reduction and excellence
 in education fund is a special fund in the state treasury outside the general
 revenue fund.
       (b)iiThe fund consists of:
            (1)iimoney appropriated by the legislature for deposit to the credit of the
 fund;
            (2)iigifts to the state for the purposes of the fund; and
            (3)iimoney directed by law for deposit to the credit of the fund.
       Sec.i47.003.iiUSES OF FUND. Except as otherwise provided by this
 chapter, money in the fund may be appropriated only:
            (1)iito pay the cost of tier one allotments under Chapter 48; or
            (2)iifor the purpose of reducing school district maintenance and
 operations ad valorem tax rates.
       Sec.i47.004.iiDEPOSIT OF CERTAIN MONEY DEDICATED FOR
 SCHOOL DISTRICT AD VALOREM TAX RATE REDUCTION. (a) The
 comptroller shall deposit to the credit of the fund money that Section 49-g,
 Article III, Texas Constitution, dedicates to the purpose of reducing school
 district maintenance and operations ad valorem tax rates.
       (b)iiMoney deposited to the fund under this section may be appropriated
 from the fund only for the purpose described by Section 47.003(2).
       Sec.i47.005.iiCERTAIN MONEY DISTRIBUTED TO AVAILABLE
 SCHOOL FUND. (a) Of the money distributed to the available school fund each
 year under Section 5(g), Article VII, Texas Constitution, the amount that exceeds
 the first $300 million is considered part of the tax reduction and excellence in
 education fund.
       (b)iiMoney considered part of the fund as described by Subsection (a) may
 be appropriated only to pay the cost of tier one allotments under Chapter 48.
5990            86th LEGISLATURE — REGULAR SESSION

       Sec.i47.006.iiDEPOSIT OF MONEY BASED ON CERTAIN SALES AND
 USE TAX COLLECTIONS. (a) The comptroller shall deposit to the credit of the
 fund on or before the fifth business day after the end of each month an amount of
 general revenue equal to the amount of state sales and use tax revenue collected
 by marketplace providers on sales of taxable items made through the marketplace
 under Section 151.0242, Tax Code, and remitted to this state during the preceding
 month, less any amount of that revenue the comptroller estimates would have
 been collected and remitted if Section 151.0242 were not law.
       (b)iiMoney deposited to the fund under this section may be appropriated
 from the fund only for the purpose described by Section 47.003(2).
       SECTIONi1.011.iiSubtitle I, Title 2, Education Code, is amended by adding
 Chapter 48, and a heading is added to that chapter to read as follows:
                CHAPTER 48. FOUNDATION SCHOOL PROGRAM
       SECTIONi1.012.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter A, and a heading is added to that subchapter to
 read as follows:
                     SUBCHAPTER A. GENERAL PROVISIONS
       SECTIONi1.013.iiSections 42.001, 42.002, 42.003, 42.004, and 42.005,
 Education Code, are transferred to Subchapter A, Chapter 48, Education Code, as
 added by this Act, redesignated as Sections 48.001, 48.002, 48.003, 48.004, and
 48.005, Education Code, and amended to read as follows:
       Sec.i48.001i[42.001].iiSTATE POLICY. (a) It is the policy of this state that
 the provision of public education is a state responsibility and that a thorough and
 efficient system be provided and substantially financed through state revenue
 sources so that each student enrolled in the public school system shall have
 access to programs and services that are appropriate to the student ’s educational
 needs and that are substantially equal to those available to any similar student,
 notwithstanding varying local economic factors.
       (b)iiThe public school finance system of this state shall adhere to a standard
 of neutrality that provides for substantially equal access to similar revenue per
 student at similar tax effort, considering all state and local tax revenues of
 districts after acknowledging all legitimate student and district cost differences.
       Sec.i48.002ii[42.002].iiPURPOSES OF FOUNDATION SCHOOL
 PROGRAM. (a) The purposes of the Foundation School Program set forth in this
 chapter are to guarantee that each school district in the state has:
            (1)iiadequate resources to provide each eligible student a basic
 instructional program and facilities suitable to the student ’s educational needs;
 and
            (2)iiaccess to a substantially equalized program of financing in excess of
 basic costs for certain services, as provided by this chapter.
       (b)iiThe Foundation School Program consists of:
            (1)iitwo tiers that in combination provide for:
                 (A)iisufficient financing for all school districts to provide a basic
 program of education that is rated acceptable or higher under Section 39.054 and
 meets other applicable legal standards; and
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5991

                 (B)iisubstantially equal access to funds to provide an enriched
 program; and
            (2)iia facilities component as provided by Chapter 46.
       Sec.i48.003ii[42.003].iiSTUDENT ELIGIBILITY. (a)iiA student is entitled
 to the benefits of the Foundation School Program if, on September 1 of the school
 year, the student:
            (1)iiis 5 years of age or older and under 21 years of age and has not
 graduated from high school, or is at least 21 years of age and under 26 years of
 age and has been admitted by a school district to complete the requirements for a
 high school diploma; or
            (2)iiis at least 19 years of age and under 26 years of age and is enrolled
 in an adult high school diploma and industry certification charter school pilot
 program under Section 29.259.
       (b)iiA student to whom Subsection (a) does not apply is entitled to the
 benefits of the Foundation School Program if the student is enrolled in a
 prekindergarten class under Section 29.153 [or Subchapter E-1, Chapter 29].
       (c)iiA child may be enrolled in the first grade if the child is at least six years
 of age at the beginning of the school year of the district or has been enrolled in
 the first grade or has completed kindergarten in the public schools in another state
 before transferring to a public school in this state.
       (d)iiNotwithstanding Subsection (a), a student younger than five years of
 age is entitled to the benefits of the Foundation School Program if:
            (1)iithe student performs satisfactorily on the assessment instrument
 administered under Section 39.023(a) to students in the third grade; and
            (2)iithe district has adopted a policy for admitting students younger than
 five years of age.
       Sec.i48.004ii[42.004].iiADMINISTRATION OF THE PROGRAM. The
 commissioner[, in accordance with the rules of the State Board of Education,]
 shall adopt rules and take [such] action and require [such] reports consistent with
 this chapter as [may be] necessary to implement and administer the Foundation
 School Program.
       Sec.i48.005ii[42.005].iiAVERAGE DAILY ATTENDANCE. (a)iiIn this
 chapter, average daily attendance is:
            (1)iithe quotient of the sum of attendance for each day of the minimum
 number of days of instruction as described under Section 25.081(a) divided by
 the minimum number of days of instruction;
            (2)iifor 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)iifor 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)iifor 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).
5992             86th LEGISLATURE — REGULAR SESSION

       (b)iiA school district that experiences a decline of two percent or more in
 average daily attendance shall be funded on the basis of:
            (1)iithe actual average daily attendance of the preceding school year, if
 the decline is the result of the closing or reduction in personnel of a military base;
 or
            (2)iisubject to Subsection (e), an average daily attendance not to exceed
 98 percent of the actual average daily attendance of the preceding school year, if
 the decline is not the result of the closing or reduction in personnel of a military
 base.
       (c)iiThe commissioner shall adjust the average daily attendance of a school
 district that has a significant percentage of students who are migratory children as
 defined by 20iU.S.C.iSection 6399.
       (d)iiThe commissioner may adjust the average 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’ attendance.
       (e)iiFor each school year, the commissioner shall adjust the average daily
 attendance of school districts that are entitled to funding on the basis of an
 adjusted average daily attendance under Subsection (b)(2) so that:
            (1)iiall districts are funded on the basis of the same percentage of the
 preceding year ’s actual average daily attendance; and
            (2)iithe total cost to the state does not exceed the amount specifically
 appropriated for that year for purposes of Subsection (b)(2).
       (f)iiAn open-enrollment charter school is not entitled to funding based on an
 adjustment under Subsection (b)(2).
       (g)iiIf 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 daily attendance for purposes of this section.
       (g-1)iiThe 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
 apprenticeships.
       (h)iiSubject to rules adopted by the commissioner under Section 48.007(b)
 [42.0052(b)], time that a student participates in an off-campus instructional
 program approved under Section 48.007(a) [42.0052(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 daily attendance for purposes of this
 section.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            5993

       (i)iiA 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)iiA district or charter school is eligible to earn full average daily
 attendance under Subsection (a) if the district or school provides at least
 43,200iminutes of instructional time to students enrolled in:
            (1)iia dropout recovery school or program operating under Section
 12.1141(c) or Section 39.0548;
            (2)iian alternative education program operating under Section 37.008;
            (3)iia school program located at a day treatment facility, residential
 treatment facility, psychiatric hospital, or medical hospital;
            (4)iia school program offered at a correctional facility; or
            (5)iia school operating under Section 29.259.
       (k)iiA charter school operating under a charter granted under Chapter
 12ibefore January 1, 2015, is eligible to earn full average daily attendance under
 Subsection (a), as that subsection existed immediately before January 1, 2015,
 for:
            (1)iiall campuses of the charter school operating before January 1, 2015;
 and
            (2)iiany 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)iiA school district campus or charter school described by Subsection (j)
 may operate more than one program and be eligible for full average daily
 attendance for each program if the programs operated by the district campus or
 charter school satisfy all applicable state and federal requirements.
       (m)iiThe commissioner shall adopt rules necessary to implement this
 section, including rules that:
            (1)iiestablish the minimum amount of instructional time per day that
 allows a school district or charter school to be eligible for full average daily
 attendance, which may differ based on the instructional program offered by the
 district or charter school;
            (2)iiestablish the requirements necessary for a school district or charter
 school to be eligible for one-half of average daily attendance, which may differ
 based on the instructional program offered by the district or charter school; and
            (3)iiproportionally reduce the average 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.
       (n)iiTo assist school districts in implementing this section as amended by
 HBi2442, Acts of the 85th Legislature, Regular Session, 2017, [or similar
 legislation,] the commissioner may waive a requirement of this section or adopt
 rules to implement this section. [This subsection expires at the end of the
 2018-2019ischool year.]
5994            86th LEGISLATURE — REGULAR SESSION

       SECTIONi1.014.iiEffective September 1, 2020, Subchapter A, Chapter 48,
 Education Code, as added by this Act, is amended by adding Section 48.0051ito
 read as follows:
       Sec.i48.0051.iiINCENTIVE FOR ADDITIONAL INSTRUCTIONAL
 DAYS. (a) Subject to Subsection (a-1), the commissioner shall adjust the average
 daily attendance of a school district or open-enrollment charter school under
 Section 48.005iin the manner provided by Subsection (b) if the district or school:
            (1)iiprovides the minimum number of minutes of operational and
 instructional time required under Section 25.081iand commissioner rules adopted
 under that section over at least 180idays of instruction; and
            (2)iioffers an additional 30 days of half-day instruction for students
 enrolled in prekindergarten through fifth grade.
       (a-1)iiA school district entitled to an incentive under this section and
 funding for a campus under Section 48.252imay receive only the incentive or
 funding for the campus, as applicable, that would result in the greater amount of
 funding.
       (b)iiFor a school district or open-enrollment charter school described by
 Subsection (a), the commissioner shall increase the average daily attendance of
 the district or school under Section 48.005 by the amount that results from the
 quotient of the sum of attendance by students described by Subsection (a)(2) for
 each of the 30iadditional instructional days of half-day instruction that are
 provided divided by 180.
       (c)iiThe commissioner may provide the incentive under this section to a
 school district or open-enrollment charter school that intended, but due to
 circumstances beyond the district ’s or school ’s control, including the occurrence
 of a natural disaster affecting the district or school, was unable to meet the
 requirement for instruction under Section 25.081 plus an additional 30 days of
 half-day instruction. The commissioner may proportionately reduce the incentive
 provided to a district or school described by this subsection.
       (d)iiThis section does not prohibit a school district from providing the
 minimum number of minutes of operational and instructional time required under
 Section 25.081 and commissioner rules adopted under that section over fewer
 than 180 days of instruction.
       (e)iiThe agency shall assist school districts and open-enrollment charter
 schools in qualifying for the incentive under this section.
       (f)iiA school district or open-enrollment charter school may use funding
 attributable to the incentive provided under this section to pay costs associated
 with providing academic instruction in a voluntary summer program for students
 enrolled in the district or school.
       (g)iiThe commissioner shall adopt rules necessary for the implementation of
 this section.
       SECTIONi1.015.iiSections 42.0051 and 42.0052, Education Code, are
 transferred to Subchapter A, Chapter 48, Education Code, as added by this Act,
 redesignated as Sections 48.006 and 48.007, Education Code, and amended to
 read as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5995

       Sec.i48.006ii[42.0051].iiAVERAGE DAILY ATTENDANCE FOR
 DISTRICTS IN DISASTER AREA. (a) The [From funds specifically
 appropriated for the purpose or other funds available to the commissioner for that
 purpose, the] commissioner may [shall] adjust the average daily attendance of a
 school district all or part of which is located in an area declared a disaster area by
 the governor under Chapter 418, Government Code, if the district experiences a
 decline in average daily attendance that is reasonably attributable to the impact of
 the disaster.
      (b)iiThe adjustment must be sufficient to ensure that the district receives
 funding comparable to the funding that the district would have received if the
 decline in average daily attendance reasonably attributable to the impact of the
 disaster had not occurred.
      (c)iiThe commissioner may [shall] make the adjustment under [required by]
 this section for the two-year period following the date of the governor ’s initial
 proclamation or executive order declaring the state of disaster.
      (d)iiSection 48.005(b)(2) [42.005(b)(2)] does not apply to a district that
 receives an adjustment under this section.
      (e)iiA district that receives an adjustment under this section may not receive
 any additional adjustment under Section 48.005(d) [42.005(d)] for the decline in
 average daily attendance on which the adjustment under this section is based.
      (f)iiFor purposes of this title, a district ’s adjusted average daily attendance
 under this section is considered to be the district ’s average daily attendance as
 determined under Section 48.005 [42.005].
      Sec.i48.007ii[42.0052].iiOFF-CAMPUS PROGRAMS APPROVED FOR
 PURPOSES OF AVERAGE DAILY ATTENDANCE. (a)iiThe commissioner
 may, based on criteria developed by the commissioner, approve instructional
 programs provided off campus by an entity other than a school district or
 open-enrollment charter school as a program in which participation by a student
 of a district or charter school may be counted for purposes of determining average
 daily attendance in accordance with Section 48.005(h) [42.005(h)].
       (b)iiThe commissioner shall adopt by rule verification and reporting
 procedures concerning time spent by students participating in instructional
 programs approved under Subsection (a).
      SECTIONi1.016.iiSections 42.006(a), (b), (c), and (d), Education Code, are
 transferred to Subchapter A, Chapter 48, Education Code, as added by this Act,
 redesignated as Section 48.008, Education Code, and amended to read as follows:
      Sec.i48.008.iiPUBLIC EDUCATION INFORMATION MANAGEMENT
 SYSTEM (PEIMS). (a) Each school district shall participate in the Public
 Education Information Management System (PEIMS) and shall provide through
 that system information required for the administration of this chapter and of
 other appropriate provisions of this code.
      (b)iiEach school district shall use a uniform accounting system adopted by
 the commissioner for the data required to be reported for the Public Education
 Information Management System.
5996            86th LEGISLATURE — REGULAR SESSION

       (c)iiAnnually, the commissioner shall review the Public Education
 Information Management System and shall repeal or amend rules that require
 school districts to provide information through the Public Education Information
 Management System that is not necessary. In reviewing and revising the Public
 Education Information Management System, the commissioner shall develop
 rules to ensure that the system:
            (1)iiprovides useful, accurate, and timely information on student
 demographics and academic performance, personnel, and school district finances;
            (2)iicontains only the data necessary for the legislature and the agency
 to perform their legally authorized functions in overseeing the public education
 system; and
            (3)iidoes not contain any information related to instructional methods,
 except as provided by Section 29.066 or required by federal law.
       (d)iiThe commissioner ’s rules must ensure that the Public Education
 Information Management System links student performance data to other related
 information for purposes of efficient and effective allocation of scarce school
 resources, to the extent practicable using existing agency resources and
 appropriations.
       SECTIONi1.017.iiSections 42.006(a-1), (a-3), and (a-4), Education Code,
 Section 42.006(a-2), Education Code, as added by Chapter 550 (SBi490), Acts of
 the 85th Legislature, Regular Session, 2017, and Section 42.006(a-2), as added
 by Chapter 916 (SBi1404), Acts of the 85th Legislature, Regular Session, 2017,
 are transferred to Subchapter A, Chapter 48, Education Code, as added by this
 Act, redesignated as Section 48.009, Education Code, and amended to read as
 follows:
       Sec.i48.009.iiREQUIRED PEIMS REPORTING. (a) In this section,
 "full-time equivalent school counselor" means 40 hours of counseling services a
 week.
       (b)i[(a-1)]iiThe commissioner by rule shall require each school district and
 open-enrollment charter school to report through the Public Education
 Information Management System information regarding:
            (1)iithe number of students enrolled in the district or school who are
 identified as having dyslexia;
            (2)ii[. The agency shall maintain the information provided in accordance
 with this subsection.
       [(a-2)iiThe 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 availability of
 school counselors, including [at each campus. The commissioner s’ rules shall
 require a district or school to report] the number of full-time equivalent school
 counselors, [providing counseling services] at each [a] campus;
            (3)ii[. For purposes of this subsection, "full-time equivalent school
 counselor" means 40 hours of counseling services a week. The agency shall
 maintain the information provided in accordance with this subsection.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             5997

       [(a-2)iiThe commissioner by rule shall require each school district and
 open-enrollment charter school to report through the Public Education
 Information Management System information for each campus of the district or
 school regarding:
             [(1)] the availability of expanded learning opportunities as described by
 Section 33.252 at each campus; [and]
             (4)i[(2)iithe number of students participating in each of the categories of
 expanded learning opportunities listed under Section 33.252(b).
       [(a-3)iiThe commissioner by rule shall require each school district and
 open-enrollment charter school to annually report through the Public Education
 Information Management System information regarding] the total number of
 students, other than students described by Subdivision (5) [Subsection (a-4)],
 enrolled in the district or school with whom the district or school, as applicable,
 used intervention strategies, as that term is defined by Section 26.004, at any time
 during the year for which the report is made; and
             (5)ii[. The agency shall maintain the information provided in accordance
 with this subsection.
       [(a-4)iiThe commissioner by rule shall require each school district and
 open-enrollment charter school to annually report through the Public Education
 Information Management System information regarding] the total number of
 students enrolled in the district or school to whom the district or school provided
 aids, accommodations, or services under Section 504, Rehabilitation Act of
 1973i(29iU.S.C.iSection 794), at any time during the year for which the report is
 made.
       (c)iiThe agency shall maintain the information provided in accordance with
 this section [subsection].
       (d)iiNot later than January 1, 2020, the commissioner shall adopt rules
 requiring the Public Education Information Management System (PEIMS) to
 include pregnancy as a reason a student withdraws from or otherwise no longer
 attends public school.
       SECTIONi1.018.iiSection 42.009, Education Code, is transferred to
 Subchapter A, Chapter 48, Education Code, as added by this Act, redesignated as
 Section 48.010, Education Code, and amended to read as follows:
       Sec.i48.010ii[42.009].iiDETERMINATION OF FUNDING LEVELS.
 (a)iiNot later than July 1 of each year, the commissioner shall determine for each
 school district whether the estimated amount of state and local funding per
 student in weighted average daily attendance to be provided to the district under
 the Foundation School Program for maintenance and operations for the following
 school year is less than the amount provided to the district for the
 2010-2011ischool year.iiIf the amount estimated to be provided is less, the
 commissioner shall certify the percentage decrease in funding to be provided to
 the district.
       (b)iiIn making the determinations regarding funding levels required by
 Subsection (a), the commissioner shall:
             (1)iimake adjustments as necessary to reflect changes in a school
 district ’s maintenance and operations tax rate;
5998             86th LEGISLATURE — REGULAR SESSION

             (2)iifor a district required to [take action under Chapter 41ito] reduce its
 local revenue level under Section 48.257 [wealth per student to the equalized
 wealth level], base the determinations on the district ’s net funding levels after
 deducting any amounts required to be expended by the district to comply with
 Chapter 49 [41]; and
             (3)iidetermine a district ’s weighted average daily attendance in
 accordance with this chapter as it existed on January 1, 2011.
       SECTIONi1.019.iiSubchapter A, Chapter 48, Education Code, as added by
 this Act, is amended by adding Sections 48.011 and 48.012 to read as follows:
       Sec.i48.011.iiCOMM ISSIONER AUTHORIT Y TO RESOLVE
 UNINTENDED CONSEQUENCES FROM SCHOOL FINANCE FORMULAS.
 (a) Subject to Subsections (b) and (d), the commissioner may adjust a school
 district ’s funding entitlement under this chapter if the funding formulas used to
 determine the district s’ entitlement result in an unanticipated loss or gain for a
 district.
       (a-1)iiThe commissioner may modify dates relating to the adoption of a
 school district ’s maintenance and operations tax rate and, if applicable, an
 election required for the district to adopt that rate as necessary to implement the
 changes made by HBi3, 86th Legislature, Regular Session, 2019.
       (b)iiBefore making an adjustment under Subsection (a) or (a-1), the
 commissioner shall notify and must receive approval from the Legislative Budget
 Board and the office of the governor.
       (c)iiIf the commissioner makes an adjustment under Subsection (a), the
 commissioner must provide to the legislature an explanation regarding the
 changes necessary to resolve the unintended consequences.
       (d)iiBeginning with the 2021-2022 school year, the commissioner may not
 make an adjustment under Subsection (a) or (a-1).
       (e)iiThis section expires September 1, 2023.
       Sec.i48.012.iiSTUDY ON GEOGRAPHIC EDUCATION COST
 VARIATIONS AND TRANSPORTATION COSTS. (a) The agency shall enter
 into a memorandum of understanding with a public institution of higher
 education to conduct a study on:
             (1)iigeographic variations in known resource costs and costs of
 education due to factors beyond the control of school districts; and
             (2)iischool district transportation costs.
       (b)iiThe study must include a review of cost drivers for school districts.
       (c)iiNot later than December 1, 2020, the agency shall submit to the
 legislature a report on the results of the study.
       (d)iiThis section expires September 1, 2021.
       SECTIONi1.020.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter B, and a heading is added to that subchapter to
 read as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            5999

                     SUBCHAPTER B. BASIC ENTITLEMENT
       SECTIONi1.021.iiSections 42.101 and 42.105, Education Code, are
 transferred to Subchapter B, Chapter 48, Education Code, as added by this Act,
 redesignated as Sections 48.051 and 48.052, Education Code, and amended to
 read as follows:
      Sec.i48.051ii[42.101].iiBASIC ALLOTMENT. (a) For each student in
 average daily attendance, not including the time students spend each day in
 special education programs in an instructional arrangement other than mainstream
 or career and technology education programs, for which an additional allotment is
 made under Subchapter C, a district is entitled to an allotment equal to the lesser
 of $6,160 [$4,765] or the amount that results from the following formula:
                   A = $6,160 [$4,765] X TR/MCR [(DCR/MCR)]
 where:
      "A" is the allotment to which a district is entitled;
       "TR" ["DCR"] is the district ’s tier one maintenance and operations
 [compressed] tax rate, as provided by Section 45.0032i[, 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 48.255i[42.2516],
 multiplied by $1.00i[$1.50].
      [(a-1)iiNotwithstanding Subsection (a), for a school district that adopted a
 maintenance and operations tax rate for the 2005 tax year below the maximum
 rate permitted by law for that year, the district ’s compressed tax rate ("DCR")
 includes the portion of the district ’s current maintenance and operations tax rate
 in excess of the first six cents above the district ’s compressed tax rate, as defined
 by Subsection (a), until the district ’s compressed tax rate computed in accordance
 with this subsection is equal to the state maximum compressed tax rate
 ("MCR").]
      (b)iiA greater amount for any school year may be provided by appropriation.
      (c)iiDuring any school year for which the maximum amount of the basic
 allotment provided under Subsection (a) or (b) is greater than the maximum
 amount provided for the preceding school year, a school district must use at least
 30ipercent of the amount, if the amount is greater than zero, that equals the
 product of the average daily attendance of the district multiplied by the amount of
 the difference between the district ’s funding under this chapter per student in
 average daily attendance for the current school year and the preceding school
 year to provide compensation increases to full-time district employees other than
 administrators as follows:
           (1)ii75 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
 experience; and
6000             86th LEGISLATURE — REGULAR SESSION

             (2)ii25 percent may be used as determined by the district to increase
 compensation paid to full-time district employees [This subsection applies to a
 school district for which the compressed tax rate ("DCR") is determined in
 accordance with Subsection (a-1). Any reduction in the district ’s adopted
 maintenance and operations tax rate is applied to the following components of the
 district ’s tax rate in the order specified:
             [(1)iitax effort described by Section 42.302(a-1)(2);
             [(2)iitax effort described by Section 42.302(a-1)(1); and
             [(3)iitax effort included in the determination of the district s’ compressed
 tax rate ("DCR") under Subsection (a-1)].
        (d)iiIn this section, "compensation" includes benefits such as insurance
 premiums.
        Sec.i48.052i[42.105].iiSPARSITY ADJUSTMENT. (a) Notwithstanding
 Section 48.051 [Sections 42.101, 42.102, and 42.103], a school district that has
 fewer than 130 students in average daily attendance shall be provided a [an
 adjusted] basic allotment on the basis of 130 students in average daily attendance
 if it offers a kindergarten through grade 12iprogram and has preceding or current
 year ’s average daily attendance of at least 90 students or is 30 miles or more by
 bus route from the nearest high school district. A district offering a kindergarten
 through grade 8 program whose preceding or current year ’s average daily
 attendance was at least 50 students or which is 30 miles or more by bus route
 from the nearest high school district shall be provided a [an adjusted] basic
 allotment on the basis of 75 students in average daily attendance. An average
 daily attendance of 60 students shall be the basis of providing the [adjusted] basic
 allotment if a district offers a kindergarten through grade 6 program and has
 preceding or current year ’s average daily attendance of at least 40 students or is
 30 miles or more by bus route from the nearest high school district.
        (b)iiSubsection (c) applies only to a school district that:
             (1)iidoes not offer each grade level from kindergarten through grade
 12iand whose prospective or former students generally attend school in a state
 that borders this state for the grade levels the district does not offer;
             (2)iiserves both students residing in this state and students residing in a
 state that borders this state who are subsequently eligible for in-state tuition rates
 at institutions of higher education in either state regardless of the state in which
 the students reside; and
             (3)iishares students with an out-of-state district that does not offer
 competing instructional services.
        (c)iiNotwithstanding Subsection (a) or Section 48.051 [Sections 42.101,
 42.102, and 42.103], a school district to which this subsection applies, as
 provided by Subsection (b), that has fewer than 130 students in average daily
 attendance shall be provided a [an adjusted] basic allotment on the basis of
 130istudents in average daily attendance if it offers a kindergarten through grade
 four program and has preceding or current year ’s average daily attendance of at
 least 75 students or is 30 miles or more by bus route from the nearest high school
 district.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                              6001

       SECTIONi1.022.iiSubchapter B, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.053 to read as follows:
       Sec.i48.053.iiALLOTMENT FOR CERTAIN SPECIAL-PURPOSE
 SCHOOL DISTRICTS. (a) This section applies only to a special-purpose school
 district established under Section 11.351 that is operated by a general academic
 teaching institution, as that term is defined by Section 61.003.
       (b)iiFor each student who resides in this state and is enrolled in the district, a
 school district to which this section applies is entitled to funding under this
 chapter as if the district had no tier one local share for purposes of Section
 48.256.
       (c)iiA school district to which this section applies may decline to receive
 funding under Subsection (b).
       (d)iiA school district that receives funding under Subsection (b) for a school
 year may not charge tuition or fees to students enrolled in the district who are
 residents of this state for that school year, other than fees authorized under
 Section 11.158.
       SECTIONi1.023.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter C, and a heading is added to that subchapter to
 read as follows:
               SUBCHAPTER C. STUDENT-BASED ALLOTMENTS
       SECTIONi1.024.iiSubchapter C, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.101 to read as follows:
       Sec.i48.101.iiSMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
 Small and mid-sized districts are entitled to an annual allotment in accordance
 with this section. In this section:
            (1)ii"AA" is the district ’s annual allotment per student in average daily
 attendance;
            (2)ii"ADA" is the number of students in average daily attendance for
 which the district is entitled to an allotment under Section 48.051; and
            (3)ii"BA" is the basic allotment determined under Section 48.051.
       (b)iiA school district that has fewer than 1,600 students in average daily
 attendance is entitled to an annual allotment for each student in average daily
 attendance based on the following formula:
                         AA = ((1,600 - ADA) X .0004) X BA
       (c)iiA school district that offers a kindergarten through grade 12iprogram
 and has less than 5,000 students in average daily attendance is entitled to an
 annual allotment for each student in average daily attendance based on the
 formula, of the following formulas, that results in the greatest annual allotment:
            (1)iithe formula in Subsection (b), if the district is eligible for that
 formula; or
            (2)iiAA = ((5,000 - ADA) X .000025) X BA.
       (d)iiInstead of the allotment under Subsection (b) or (c)(1), a school district
 that has fewer than 300 students in average daily attendance and is the only
 school district located in and operating in a county is entitled to an annual
 allotment for each student in average daily attendance based on the following
 formula:
6002                  86th LEGISLATURE — REGULAR SESSION

                        AA = ((1,600 - ADA) X .00047) X BA
       SECTIONi1.025.iiSection 42.151, Education Code, is transferred to
 Subchapter C, Chapter 48, Education Code, as added by this Act, redesignated as
 Section 48.102, Education Code, and amended to read as follows:
       Sec.i48.102i[42.151].iiSPECIAL EDUCATION. (a) For each student in
 average daily attendance in a special education program under Subchapter A,
 Chapter 29, in a mainstream instructional arrangement, a school district is entitled
 to an annual allotment equal to the [adjusted] 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 1.15 [1.1]. For each full-time equivalent
 student in average daily attendance in a special education program under
 Subchapter A, Chapter 29, in an instructional arrangement other than a
 mainstream instructional arrangement, a district is entitled to an annual allotment
 equal to the [adjusted] basic allotment, or, if applicable, the sum of the basic
 allotment and the allotment under Section 48.101 to which the district is entitled,
 multiplied by a weight determined according to instructional arrangement as
 follows:
            Homebound. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0
            Hospital class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0
            Speech therapy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0
            Resource room . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0
            Self-contained, mild and moderate,
            regular campus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0
            Self-contained, severe, regular campus . . . . . . . . . . . . . . . . . . . . . . . . 3.0
            Off home campus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7
            Nonpublic day school . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7
            Vocational adjustment class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
       (b)iiA special instructional arrangement for students with disabilities
 residing in care and treatment facilities, other than state schools, whose parents or
 guardians do not reside in the district providing education services shall be
 established by commissioner rule [under the rules of the State Board of
 Education]. The funding weight for this arrangement shall be 4.0 for those
 students who receive their education service on a local school district campus. A
 special instructional arrangement for students with disabilities residing in state
 schools shall be established by commissioner rule [under the rules of the State
 Board of Education] with a funding weight of 2.8.
       (c)iiFor funding purposes, the number of contact hours credited per day for
 each student in the off home campus instructional arrangement may not exceed
 the contact hours credited per day for the multidistrict class instructional
 arrangement in the 1992-1993 school year.
       (d)iiFor funding purposes the contact hours credited per day for each student
 in the resource room; self-contained, mild and moderate; and self-contained,
 severe, instructional arrangements may not exceed the average of the statewide
 total contact hours credited per day for those three instructional arrangements in
 the 1992-1993 school year.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6003

       (e)iiThe commissioner [State Board of Education] by rule shall prescribe the
 qualifications an instructional arrangement must meet in order to be funded as a
 particular instructional arrangement under this section. In prescribing the
 qualifications that a mainstream instructional arrangement must meet, the
 commissioner [board] shall establish requirements that students with disabilities
 and their teachers receive the direct, indirect, and support services that are
 necessary to enrich the regular classroom and enable student success.
       (f)iiIn this section, "full-time equivalent student" means 30 hours of contact
 a week between a special education student and special education program
 personnel.
       (g)iiThe commissioner [State Board of Education] shall adopt rules and
 procedures governing contracts for residential placement of special education
 students. The legislature shall provide by appropriation for the state ’s share of the
 costs of those placements.
       (h)iiAt least 55 percent of the funds [Funds] allocated under this section[,
 other than an indirect cost allotment established under State Board of Education
 rule,] must be used in the special education program under Subchapter A,
 Chapter 29.
       (i)iiThe agency shall encourage the placement of students in special
 education programs, including students in residential instructional arrangements,
 in the least restrictive environment appropriate for their educational needs.
       (j)i[(k)]iiA school district that provides an extended year program required
 by federal law for special education students who may regress is entitled to
 receive funds in an amount equal to 75 percent, or a lesser percentage determined
 by the commissioner, of the [adjusted] basic allotment, or, if applicable, the sum
 of the basic allotment and the allotment under Section 48.101 to which the district
 is entitled [or adjusted allotment, as applicable,] for each full-time equivalent
 student in average daily attendance, multiplied by the amount designated for the
 student ’s instructional arrangement under this section, for each day the program is
 provided divided by the number of days in the minimum school year. The total
 amount of state funding for extended year services under this section may not
 exceed $10 million per year. A school district may use funds received under this
 section only in providing an extended year program.
       (k)i[(l)]iiFrom the total amount of funds appropriated for special education
 under this section, the commissioner shall withhold an amount specified in the
 General Appropriations Act, and distribute that amount to school districts for
 programs under Section 29.014. The program established under that section is
 required only in school districts in which the program is financed by funds
 distributed under this subsection and any other funds available for the program.
 After deducting the amount withheld under this subsection from the total amount
 appropriated for special education, the commissioner shall reduce each district ’s
 allotment proportionately and shall allocate funds to each district accordingly.
       SECTIONi1.026.iiSubchapter C, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.1021 to read as follows:
6004            86th LEGISLATURE — REGULAR SESSION

       Sec.i48.1021.iiSPECIAL EDUCATION ALLOTMENT ADVISORY
 COMMITTEE. (a) The commissioner shall establish an advisory committee to
 develop and make recommendations regarding methods of financing special
 education under the public school finance system.
       (b)iiThe advisory committee consists of the following members appointed
 by the commissioner:
            (1)iia parent of a student eligible to participate in a school district ’s
 special education program under Section 29.003;
            (2)iia director of a school district ’s special education program under
 Subchapter A, Chapter 29;
            (3)iia teacher certified in special education;
            (4)iia diagnostician;
            (5)iia licensed specialist in school psychology;
            (6)iia provider who provides related services, as described by Section
 29.002(2);
            (7)iia superintendent of a school district;
            (8)iia member of a school district s’ board of trustees;
            (9)iia representative of a disability advocacy organization;
            (10)iia member of the special education continuing advisory committee
 under Section 29.006;
            (11)iia teacher certified in general education;
            (12)iia student eligible to participate in a school district ’s special
 education program under Section 29.003;
            (13)iia representative of a regional education service center; and
            (14)iia school district official who handles business and finance matters
 for the district.
       (c)iiNot later than May 1, 2020, the advisory committee, with assistance
 from the Legislative Budget Board, shall submit to the lieutenant governor, the
 speaker of the house of representatives, and the standing legislative committees
 with primary jurisdiction over public education a report on methods of financing
 special education under the public school finance system. The report must
 include:
            (1)iia description of the current funding methods;
            (2)iian analysis of the possible implementation of a method of financing
 special education based on the services and supports each student receives instead
 of instructional arrangement;
            (3)iidata on current special education expenditures from a representative
 sample of school districts; and
            (4)iirecommendations for improvements to the current funding methods
 or for the implementation of new funding methods.
       (d)iiThis section expires September 1, 2021.
       SECTIONi1.027.iiSubchapter C, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.103 to read as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6005

       Sec.i48.103.iiALLOTMENT 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 basic allotment
 multiplied by 0.1 or a greater amount provided by appropriation.
       (b)iiA school district is entitled to an allotment under Subsection (a) only for
 a student who:
            (1)iiis receiving services for dyslexia or a related disorder in accordance
 with:
                 (A)iian individualized education program developed for the student
 under Section 29.005; or
                 (B)iia plan developed for the student under Section 504,
 Rehabilitation Act of 1973 (29 U.S.C. Section 794);
            (2)iiis receiving instruction that:
                 (A)iimeets applicable dyslexia program criteria established by the
 State Board of Education; and
                 (B)iiis provided by a person with specific training in providing that
 instruction; or
            (3)iiis permitted, on the basis of having dyslexia or a related disorder, to
 use modifications in the classroom or accommodations in the administration of
 assessment instruments under Section 39.023.
       (c)iiA school district may receive funding for a student under this section
 and Section 48.102iif the student satisfies the requirements of both sections.
       (d)iiA school district may use an amount not to exceed 20 percent of the
 allotment provided for a qualifying student under this section to contract with a
 private provider to provide supplemental academic services to the student that are
 recommended under the student ’s program or plan described by Subsection (b). A
 student may not be excused from school to receive supplemental academic
 services provided under this subsection.
       SECTIONi1.028.iiSection 42.152, Education Code, is transferred to
 Subchapter C, Chapter 48, Education Code, as added by this Act, redesignated as
 Section 48.104, Education Code, and amended to read as follows:
       Sec.i48.104i[42.152].iiCOMPENSATORY EDUCATION ALLOTMENT.
 (a) For each student who [is educationally disadvantaged or who is a student
 who] does not have a disability and resides in a residential placement facility in a
 district in which the student ’s parent or legal guardian does not reside, a district is
 entitled to an annual allotment equal to the [adjusted] basic allotment multiplied
 by 0.2 or, if the student is educationally disadvantaged, 0.275. For[, and by
 2.41ifor] each full-time equivalent student who is in a remedial and support
 program under Section 29.081 because the student is pregnant, a district is
 entitled to an annual allotment equal to the basic allotment multiplied by 2.41.
       (b)iiFor each student who is educationally disadvantaged and resides in an
 economically disadvantaged census block group as determined by the
 commissioner under Subsection (c), a district is entitled to an annual allotment
 equal to the basic allotment multiplied by the weight assigned to the student ’s
 census block group under Subsection (d).
6006             86th LEGISLATURE — REGULAR SESSION

       (c)iiFor purposes of the allotment under Subsection (b), the commissioner
 shall establish an index for economically disadvantaged census block groups in
 the state that provides criteria for determining which census block groups are
 economically disadvantaged and categorizes economically disadvantaged census
 block groups in five tiers according to relative severity of economic disadvantage.
 In determining the severity of economic disadvantage in a census block group,
 the commissioner shall consider:
            (1)iithe median household income;
            (2)iithe average educational attainment of the population;
            (3)iithe percentage of single-parent households;
            (4)iithe rate of homeownership; and
            (5)iiother economic criteria the commissioner determines likely to
 disadvantage a student ’s preparedness and ability to learn.
       (d)iiThe weights assigned to the five tiers of the index established under
 Subsection (c) are, from least to most severe economic disadvantage, 0.225,
 0.2375, 0.25, 0.2625, and 0.275.
       (e)iiIf insufficient data is available for any school year to evaluate the level
 of economic disadvantage in a census block group, a school district is entitled to
 an annual allotment equal to the basic allotment multiplied by 0.225 for each
 student who is educationally disadvantaged and resides in that census block
 group [For purposes of this section, the number of educationally disadvantaged
 students is determined:
            [(1)iiby averaging the best six months ’numbers of students eligible for
 enrollment in the national school lunch program of free or reduced-price lunches
 for the preceding school year; or
            [(2)iiin the manner provided by commissioner rule].
       (f)i[(b-1)]iiA student receiving a full-time virtual education through the state
 virtual school network may be included in determining the number of
 [educationally disadvantaged] students who are educationally disadvantaged and
 reside in an economically disadvantaged census block group under Subsection (b)
 or (e), as applicable, if the school district submits to the commissioner a plan
 detailing the enhanced services that will be provided to the student and the
 commissioner approves the plan.
       (g)iiNot later than March 1 of each year, the commissioner shall:
            (1)iireview and, if necessary, update the index established under
 Subsection (c) to be used for the following school year, based on the most recent
 estimates published by the United States Census Bureau; and
            (2)iinotify each school district of any changes to the index.
       (h)iiThe state demographer, the Department of Agriculture, and any other
 state agency with relevant information shall assist the commissioner in
 performing the commissioner ’s duties under this section.
       (i)iiOn a schedule determined by the commissioner, each school district shall
 report to the agency the census block group in which each student enrolled in the
 district who is educationally disadvantaged resides. The agency shall provide to
 school districts a resource for use in determining the census block group in which
 a student resides.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6007

       (j)iiThe commissioner shall adopt rules for the method of determining the
 number of students who qualify for an allotment under this section at a campus
 that participates in the Community Eligibility Provision administered by the
 United States Department of Agriculture, as provided by the Healthy,
 Hunger-Free Kids Act of 2010i(Pub.iL.iNo.i111-296).
       (j-1)iiIn addition to other purposes for which funds allocated under this
 section may be used, those funds may also be used to:
            (1)iiprovide child-care services or assistance with child-care expenses
 for students at risk of dropping out of school, as described by Section
 29.081(d)(5); or
            (2)iipay the costs associated with services provided through a life skills
 program in accordance with Sections 29.085(b)(1) and (3)-(7).
       (k)iiAt least 55 percent of the funds [(c) Funds] allocated under this section
 must [shall] be used to:
            (1)iifund supplemental programs and services designed to eliminate any
 disparity in performance on assessment instruments administered under
 Subchapter B, Chapter 39, or disparity in the rates of high school completion
 between:
                 (A)iistudents who are educationally disadvantaged and students
 who are not educationally disadvantaged; and
                 (B)iistudents at risk of dropping out of school, as defined by
 Section 29.081, and all other students; or
            (2)ii[. Specifically, the funds, other than an indirect cost allotment
 established under State Board of Education rule, which may not exceed
 45ipercent, may be used to meet the costs of providing a compensatory, intensive,
 or accelerated instruction program under Section 29.081 or a disciplinary
 alternative education program established under Section 37.008, to pay the costs
 associated with placing students in a juvenile justice alternative education
 program established under Section 37.011, or to] support a program eligible
 under Title I of the Elementary and Secondary Education Act of 1965, as
 provided by Pub.iL.iNo.i103-382 and its subsequent amendments, and by federal
 regulations implementing that Act[, at a campus at which at least 40 percent of
 the students are educationally disadvantaged].
       (l)iiThe commissioner shall adopt rules regarding the use of funds described
 by Subsection (k). The rules:
            (1)iimust:
                 (A)iipermit a school district to use those funds for programs and
 services that reflect the needs of students at each campus in the district; and
                 (B)iiprovide for streamlined reporting on the use of those funds; and
            (2)iimay not prohibit the use of those funds for any purpose for which
 the use of those funds was authorized under former Section 42.152 as that section
 existed on September 1, 2018.
       (m)iiThe State Board of Education shall adopt rules requiring a report on the
 use of funds under Subsection (k) as part of the annual audit under Section
 44.008iand shall develop minimum requirements for that report.
6008            86th LEGISLATURE — REGULAR SESSION

      (n)iiThe commissioner annually shall review each report required under
 Subsection (m) for the preceding school year and:
            (1)iiidentify each school district that was not in compliance with
 Subsection (k) during that school year; and
            (2)iiprovide each district identified under Subdivision (1) a reasonable
 opportunity to comply with Subsection (k).
       (o)ii[In meeting the costs of providing a compensatory, intensive, or
 accelerated instruction program under Section 29.081, a district ’s compensatory
 education allotment shall be used for costs supplementary to the regular
 education program, such as costs for program and student evaluation,
 instructional materials and equipment and other supplies required for quality
 instruction, supplemental staff expenses, salary for teachers of at-risk students,
 smaller class size, and individualized instruction. A home-rule school district or
 an open-enrollment charter school must use funds allocated under Subsection (a)
 for a purpose authorized in this subsection but is not otherwise subject to
 Subchapter C, Chapter 29. For purposes of this subsection, a program specifically
 designed to serve students at risk of dropping out of school, as defined by Section
 29.081, is considered to be a program supplemental to the regular education
 program, and a district may use its compensatory education allotment for such a
 program.
      [(c-1)iiNotwithstanding Subsection (c), funds allocated under this section
 may be used to fund in proportion to the percentage of students served by the
 program that meet the criteria in Section 29.081(d) or (g):
            [(1)iian accelerated reading instruction program under Section
 28.006(g); or
            [(2)iia program for treatment of students who have dyslexia or a related
 disorder as required by Section 38.003.
      [(c-2)iiNotwithstanding Subsection (c), funds allocated under this section
 may be used to fund a district ’s mentoring services program under Section
 29.089.
      [(d)iiThe agency shall evaluate the effectiveness of accelerated instruction
 and support programs provided under Section 29.081 for students at risk of
 dropping out of school.
      [(q)iiThe State Board of Education, with the assistance of the comptroller,
 shall develop and implement by rule reporting and auditing systems for district
 and campus expenditures of compensatory education funds to ensure that
 compensatory education funds, other than the indirect cost allotment, are spent
 only to supplement the regular education program as required by Subsection (c).
 The reporting requirements shall be managed electronically to minimize local
 administrative costs. A district shall submit the report required by this subsection
 not later than the 150th day after the last day permissible for resubmission of
 information required under Section 42.006.
      [(q-1)iiThe commissioner shall develop a system to identify school districts
 that are at high risk of having used compensatory education funds other than in
 compliance with Subsection (c) or of having inadequately reported compensatory
 education expenditures. If a review of the report submitted under Subsection (q),
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6009

 using the risk-based system, indicates that a district is not at high risk of having
 misused compensatory education funds or of having inadequately reported
 compensatory education expenditures, the district may not be required to perform
 a local audit of compensatory education expenditures and is not subject to on-site
 monitoring under this section.
       [(q-2)iiIf a review of the report submitted under Subsection (q), using the
 risk-based system, indicates that a district is at high risk of having misused
 compensatory education funds, the commissioner shall notify the district of that
 determination. The district must respond to the commissioner not later than the
 30th day after the date the commissioner notifies the district of the
 commissioner ’s determination. If the district ’s response does not change the
 commissioner ’s determination that the district is at high risk of having misused
 compensatory education funds or if the district does not respond in a timely
 manner, the commissioner shall:
             [(1)iirequire the district to conduct a local audit of compensatory
 education expenditures for the current or preceding school year;
             [(2)iiorder agency staff to conduct on-site monitoring of the district ’s
 compensatory education expenditures; or
             [(3)iiboth require a local audit and order on-site monitoring.
       [(q-3)iiIf a review of the report submitted under Subsection (q), using the
 risk-based system, indicates that a district is at high risk of having inadequately
 reported compensatory education expenditures, the commissioner may require
 agency staff to assist the district in following the proper reporting methods or
 amending a district or campus improvement plan under Subchapter F, Chapter 11.
 If the district does not take appropriate corrective action before the 45th day after
 the date the agency staff notifies the district of the action the district is expected
 to take, the commissioner may:
             [(1)iirequire the district to conduct a local audit of the district ’s
 compensatory education expenditures; or
             [(2)iiorder agency staff to conduct on-site monitoring of the district s’
 compensatory education expenditures.
       [(q-4)] The commissioner, in the year following a determination under
 Subsection (n) that a school district was not in compliance with Subsection (k)
 for the 2021-2022 school year or a subsequent school year [local audit of
 compensatory education expenditures], shall withhold from the [a] district ’s
 foundation school fund payment an amount equal to the amount of compensatory
 education funds the commissioner [agency] determines were not used in
 compliance with Subsection (k) [(c)]. The commissioner shall release to a district
 funds withheld under this subsection when the district provides to the
 commissioner a detailed plan to spend those funds in compliance with Subsection
 (k) [(c)]. In determining whether a school district is subject to the withholding of
 funding required under this subsection, the commissioner may consider the
 district ’s average use of funds for the three preceding school years.
       [(r)iiThe commissioner shall grant a one-year exemption from the
 requirements of Subsections (q)-(q-4) to a school district in which the group of
 students who have failed to perform satisfactorily in the preceding school year on
6010            86th LEGISLATURE — REGULAR SESSION

 an assessment instrument required under Section 39.023(a), (c), or (l)
 subsequently performs on those assessment instruments at a level that meets or
 exceeds a level prescribed by commissioner rule. Each year the commissioner,
 based on the most recent information available, shall determine if a school district
 is entitled to an exemption for the following school year and notify the district of
 that determination.]
       SECTIONi1.029.iiSubchapter C, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.1041ito read as follows:
       Sec.i48.1041.iiCOMPENSATORY EDUCATION ALLOTMENT
 ADVISORY COMMITTEE. (a) The commissioner shall establish an advisory
 committee to advise the agency in adopting rules for the compensatory education
 allotment under Section 48.104, including:
            (1)iirules establishing the economic criteria described by Section
 48.104(c)(5);
            (2)iirules detailing the method to count students who qualify for the
 allotment in:
                 (A)iia dropout recovery school or program; or
                 (B)iia residential treatment facility;
            (3)iimethods for properly counting students who are homeless within
 the meaning of "homeless children and youths" under 42iU.S.C.iSection 11434a;
 and
            (4)iirules to determine the appropriate weight by which to adjust the
 basic allotment in determining the compensatory allotment for students described
 by Subdivision (3).
       (b)iiThe advisory committee consists of members appointed by the
 commissioner, including:
            (1)iischool district superintendents and chief financial officers;
            (2)iiclassroom teachers;
            (3)iirepresentatives of school districts located in an area other than an
 urban area, as designated by the United States Census Bureau;
            (4)iiat least one representative of an open-enrollment charter school;
            (5)iidemographers;
            (6)iiexperts on census data;
            (7)iipublic school finance experts; and
            (8)iiappropriate employees of the agency.
       (c)iiMembers of the advisory committee serve at the pleasure of the
 commissioner.
       (d)iiA member of the advisory committee is not entitled to receive
 compensation for service on the committee or reimbursement for expenses
 incurred in performing official duties as a member of the committee.
       (e)iiChapter 2110, Government Code, does not apply to the advisory
 committee.
       (f)iiNot less than once every two years, the advisory committee shall review
 census and student data and provide recommendations to the agency regarding
 any suggested changes to the rules adopted for the compensatory education
 allotment under Section 48.104.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6011

       SECTIONi1.030.iiSections 42.153, 42.154, and 42.157, Education Code,
 are transferred to Subchapter C, Chapter 48, Education Code, as added by this
 Act, redesignated as Sections 48.105, 48.106, and 48.107, Education Code, and
 amended to read as follows:
       Sec.i48.105i[42.153].iiBILINGUAL EDUCATION ALLOTMENT. (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:
             (1)iifor a student of limited English proficiency, as defined by Section
 29.052:
                  (A)ii0.1; or
                  (B)ii0.15 if the student is in a bilingual education program using a
 dual language immersion/one-way or two-way program model; and
             (2)iifor a student not described by Subdivision (1), 0.05 if the student is
 in a bilingual education program using a dual language immersion/two-way
 program model.
       (b)iiAt least 55 percent of the funds [Funds] allocated under this section[,
 other than an indirect cost allotment established under State Board of Education
 rule,] must be used in providing bilingual education or special language programs
 under Subchapter B, Chapter 29[, and must be accounted for under existing
 agency reporting and auditing procedures].
       [(c)]iiA district ’s bilingual education or special language allocation may be
 used only for program and student evaluation, instructional materials and
 equipment, staff development, supplemental staff expenses, salary supplements
 for teachers, incremental costs associated with providing smaller class sizes, and
 other supplies required for quality instruction [and smaller class size].
       (c)iiThe State Board of Education shall adopt rules requiring a report on the
 use of funds under Subsection (b) as part of the annual audit under Section
 44.008 and shall develop minimum requirements for that report.
       (d)iiThe commissioner annually shall review each report required under
 Subsection (c) for the preceding school year and:
             (1)iiidentify each school district that was not in compliance with
 Subsection (b) during that school year; and
             (2)iiprovide each district identified under Subdivision (1) a reasonable
 opportunity to comply with Subsection (b).
       (e)iiThe commissioner, in the year following a determination under
 Subsection (d) that a school district was not in compliance with Subsection (b)
 for the 2021-2022 school year or a subsequent school year, shall withhold from
 the district ’s foundation school fund payment an amount equal to the amount of
 bilingual education or special language funds the commissioner determines were
 not used in compliance with Subsection (b). The commissioner shall release to a
 district funds withheld under this subsection when the district provides to the
 commissioner a detailed plan to spend those funds in compliance with Subsection
 (b). In determining whether a school district is subject to the withholding of
 funding required under this subsection, the commissioner may consider the
 district ’s average use of funds for the three preceding school years.
6012             86th LEGISLATURE — REGULAR SESSION

       Sec.i48.106ii[42.154].iiCAREER AND TECHNOLOGY EDUCATION
 ALLOTMENT. (a)iiFor each full-time equivalent student in average daily
 attendance in an approved career and technology education program in grades
 7i[nine] through 12i[or in career and technology education programs for students
 with disabilities in grades seven through 12], a district is entitled to:
            (1)iian annual allotment equal to the [adjusted] basic allotment
 multiplied by a weight of 1.35; and
            (2)ii$50 for each of the following in which [, if] the student is enrolled:
                 (A)ii[in] two or more advanced career and technology education
 classes for a total of three or more credits;
                 (B)iia campus designated as a P-TECH school under Section
 29.556; or
                 (C)iia campus that is a member of the New Tech Network and that
 focuses on project-based learning and work-based education.
       (b)iiIn this section:
            (1)ii"Career and technology education class" and "career and
 technology education program" include [a] technology applications courses
 [course on cybersecurity adopted or selected by the State Board of Education
 under Section 28.025(c-10)].
            (2)ii"Full-time equivalent student" means 30 hours of contact a week
 between a student and career and technology education program personnel.
       (c)iiAt least 55 percent of the funds [Funds] allocated under this section[,
 other than an indirect cost allotment established under State Board of Education
 rule,] must be used in providing career and technology education programs in
 grades 7i[nine] through 12i[or career and technology education programs for
 students with disabilities in grades seven through 12 under Sections 29.182,
 29.183, and 29.184].
       [(d)iiThe commissioner shall conduct a cost-benefit comparison between
 career and technology education programs and mathematics and science
 programs.
       [(e)iiOut 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 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.]
       Sec.i48.107ii[42.157].iiPUBLIC EDUCATION GRANT ALLOTMENT. (a)
 Except as provided by Subsection (b), for each student in average daily
 attendance who is using a public education grant under Subchapter G, Chapter
 29, to attend school in a district other than the district in which the student
 resides, the district in which the student attends school is entitled to an annual
 allotment equal to the [adjusted] basic allotment multiplied by a weight of 0.1.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6013

       (b)iiThe total number of allotments under this section to which a district is
 entitled may not exceed the number by which the number of students using
 public education grants to attend school in the district exceeds the number of
 students who reside in the district and use public education grants to attend
 school in another district.
       SECTIONi1.031.iiSubchapter C, Chapter 48, Education Code, as added by
 this Act, is amended by adding Sections 48.108, 48.110, 48.1101, 48.111, 48.112,
 and 48.114 to read as follows:
       Sec.i48.108.iiEARLY EDUCATION ALLOTMENT. (a) For each student
 in average daily attendance in 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)iieducationally disadvantaged; or
            (2)iia student of limited English proficiency, as defined by Section
 29.052, and is in a bilingual education or special language program under
 Subchapter B, Chapter 29.
       (b)iiFunds allocated under this section must be used to fund programs and
 services designed to improve student performance in reading and mathematics in
 prekindergarten through third grade, including programs and services designed to
 assist the district in achieving the goals set in the district ’s early childhood
 literacy and mathematics proficiency plans adopted under Section 11.185.
       (c)iiA school district is entitled to an allotment under each subdivision of
 Subsection (a) for which a student qualifies.
       (d)iiA school district may receive funding for a student under this section
 and under Sections 48.104 and 48.105, as applicable, if the student satisfies the
 requirements of each applicable section.
       Sec.i48.110.iiCOLLEGE, CAREER, OR MILITARY READINESS
 OUTCOMES BONUS. (a) The purpose of this section is to further the goal set
 under the state ’s master plan for higher education developed under Section
 61.051ifor at least 60 percent of all adults aged 25 to 34 in this state to achieve a
 postsecondary degree or workforce credential by 2030.
       (b)iiFor purposes of the outcomes bonus under this section, the
 commissioner shall determine the threshold percentage as provided by Subsection
 (g) for college, career, or military readiness as described by Subsection (f) for
 each of the following cohorts:
            (1)iiannual graduates who are educationally disadvantaged;
            (2)iiannual graduates who are not educationally disadvantaged; and
            (3)iiannual graduates who are enrolled in a special education program
 under Subchapter A, Chapter 29, regardless of whether the annual graduates are
 educationally disadvantaged.
       (c)iiEach year, the commissioner shall determine for each school district the
 minimum number of annual graduates in each cohort described by Subsection (b)
 who would have to demonstrate college, career, or military readiness as described
 by Subsection (f) in order for the district to achieve a percentage of college,
 career, or military readiness for that cohort equal to the threshold percentage
 established for that cohort under Subsection (b).
6014            86th LEGISLATURE — REGULAR SESSION

       (d)iiFor each annual graduate in a cohort described by Subsection (b) who
 demonstrates college, career, or military readiness as described by Subsection (f)
 in excess of the minimum number of students determined for the applicable
 district cohort under Subsection (c), a school district is entitled to an annual
 outcomes bonus of:
            (1)iiif the annual graduate is educationally disadvantaged, $5,000;
            (2)iiif the annual graduate is not educationally disadvantaged, $3,000;
 and
            (3)iiif the annual graduate is enrolled in a special education program
 under Subchapter A, Chapter 29, $2,000, regardless of whether the annual
 graduate is educationally disadvantaged.
       (e)iiA school district is entitled to an outcomes bonus under each
 subdivision of Subsection (d) for which an annual graduate qualifies.
       (f)iiFor purposes of this section, an annual graduate demonstrates:
            (1)iicollege readiness if the annual graduate:
                 (A)iiachieves college readiness standards used for accountability
 purposes under Chapter 39 on the ACT, the SAT, or an assessment instrument
 designated by the Texas Higher Education Coordinating Board under Section
 51.334; and
                 (B)iiduring a time period established by commissioner rule, enrolls
 at a postsecondary educational institution;
            (2)iicareer readiness if the annual graduate:
                 (A)iiachieves college readiness standards used for accountability
 purposes under Chapter 39 on the ACT, the SAT, or an assessment instrument
 designated by the Texas Higher Education Coordinating Board under Section
 51.334; and
                 (B)iiduring a time period established by commissioner rule, earns
 an industry-accepted certificate; and
            (3)iimilitary readiness if the annual graduate:
                 (A)iiachieves a passing score set by the applicable military branch
 on the Armed Services Vocational Aptitude Battery; and
                 (B)iiduring a time period established by commissioner rule, enlists
 in the armed forces of the United States.
       (g)iiThe commissioner shall establish the threshold percentages under
 Subsection (b) using the 25th percentile of statewide college, career, or military
 readiness as described by Subsection (f) for the applicable cohort of annual
 graduates during the 2016-2017 school year.
       (h)iiOn application by a school district, the commissioner may allow annual
 graduates from the district to satisfy the requirement for demonstrating career
 readiness under Subsection (f)(2)(B) by successfully completing a coherent
 sequence of courses required to obtain an industry-accepted certificate. The
 district must demonstrate in the application that the district is unable to provide
 sufficient courses or programs to enable students enrolled at the district to earn an
 industry-accepted certificate within the time period established by the
 commissioner under Subsection (f)(2)(B). The commissioner by rule shall
 provide the criteria required for an application under this subsection.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6015

       (i)iiAt least 55 percent of the funds allocated under this section must be used
 in grades 8 through 12 to improve college, career, and military readiness
 outcomes as described by Subsection (f).
       Sec.i48.1101.iiSTUDY ON ALTERNATIVE CAREER READINESS
 MEASURES FOR SMALL AND RURAL DISTRICTS.i (a) The agency shall
 conduct a study on alternative career readiness measures for small and rural
 school districts to determine if annual graduates demonstrate career readiness
 under Section 48.110(f)(2)(B).
       (b)iiNot later than January 1, 2021, the agency shall submit to the legislature
 a report on the results of the study and any recommendations for legislative or
 other action.
       (c)iiThis section expires September 1, 2021.
       Sec.i48.111.iiFAST GROWTH ALLOTMENT. A school district in which
 the growth in student enrollment in the district over the preceding three school
 years is in the top quartile of student enrollment growth in school districts in the
 state for that period, as determined by the commissioner, is entitled to an annual
 allotment equal to the basic allotment multiplied by 0.04 for each student in
 average daily attendance.
       Sec.i48.112.iiTEACHER INCENTIVE ALLOTMENT. (a) In this section,
 "rural campus" means a school campus that is:
            (1)iilocated in:
                 (A)iian area that is not designated as an urbanized area or an urban
 cluster by the United States Census Bureau; and
                 (B)iia school district with fewer than 5,000 enrolled students; or
            (2)iidesignated as a rural campus under rules adopted by the
 commissioner.
       (b)iiTo ensure classroom teachers in this state have access to a six-figure
 salary, the allotment provided to a school district under this section offers
 resources to the district to increase teacher compensation and prioritize funding
 for high needs and rural district campuses.
       (c)iiFor each classroom teacher with a teacher designation under Section
 21.3521 employed by a school district, the school district is entitled to an
 allotment equal to the following applicable base amount increased by the high
 needs and rural factor as determined under Subsection (d):
            (1)ii$12,000, or an increased amount not to exceed $32,000 as
 determined under Subsection (d), for each master teacher;
            (2)ii$6,000, or an increased amount not to exceed $18,000 as
 determined under Subsection (d), for each exemplary teacher; and
            (3)ii$3,000, or an increased amount not to exceed $9,000 as determined
 under Subsection (d), for each recognized teacher.
       (d)iiThe high needs and rural factor is determined by multiplying the
 following applicable amounts by the average of the point value assigned to each
 student at a district campus under Subsection (e):
            (1)ii$5,000 for each master teacher;
            (2)ii$3,000 for each exemplary teacher; and
            (3)ii$1,500 for each recognized teacher.
6016             86th LEGISLATURE — REGULAR SESSION

       (e)iiExcept as provided by Subsection (f), a point value for each student at a
 district campus shall be assigned as follows:
             (1)ii0, for a student for whom the district does not receive a
 compensatory education allotment under Section 48.104(b) or (e); or
             (2)ii0.5, 1.0, 2.0, 3.0, or 4.0, respectively, from least to most severe
 economic disadvantage according to the census block group in which the student
 resides, for a student for whom the district receives a compensatory education
 allotment under Section 48.104(b) or (e).
       (f)iiIf the campus at which a student is enrolled is classified as a rural
 campus, a student is assigned the point value two tiers higher than the student ’s
 point value determined under Subsection (e)(1) or (2).
       (g)iiA district is entitled to receive an increased allotment under this section
 in the amount necessary for reimbursement for any fees paid under Section
 21.3521.
       (h)iiThe commissioner shall annually make available to the public a list of
 campuses with the projected allotment amounts per teacher designation at each
 campus.
       (i)iiA district shall annually certify that:
             (1)iifunds received under this section were used as follows:
                  (A)iiat least 90 percent of each allotment received under Subsection
 (c) was used for the compensation of teachers employed at the campus at which
 the teacher for whom the district received the allotment is employed; and
                  (B)iiany other funds received under this section were used for costs
 associated with implementing Section 21.3521, including efforts to support
 teachers in obtaining designations; and
             (2)iithe district prioritized high needs campuses in the district in using
 funds received under this section.
       Sec.i48.114.iiMENTOR PROGRAM ALLOTMENT. (a) A school district
 that has implemented a mentoring program for classroom teachers who have less
 than two years of teaching experience under Section 21.458 is entitled to an
 allotment as determined under Subsection (b) to fund the mentoring program and
 to provide stipends for mentor teachers.
       (b)iiThe commissioner shall adopt a formula to determine the amount to
 which each district described by Subsection (a) is entitled.
       (c)iiFunding provided to districts under this section may be used only for
 providing:
             (1)iimentor teacher stipends;
             (2)iischeduled release time for mentor teachers and the classroom
 teachers to whom they are assigned for meeting and engaging in mentoring
 activities; and
             (3)iimentoring support through providers of mentor training.
       SECTIONi1.032.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter D, and a heading is added to that subchapter to
 read as follows:
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6017

                     SUBCHAPTER D. ADDITIONAL FUNDING
       SECTIONi1.033.iiSections 42.155 and 42.158, Education Code, are
 transferred to Subchapter D, Chapter 48, Education Code, as added by this Act,
 redesignated as Sections 48.151 and 48.152, Education Code, and amended to
 read as follows:
       Sec.i48.151ii[42.155].iiTRANSPORTATION ALLOTMENT. (a) Each
 district or county operating a transportation system is entitled to allotments for
 transportation costs as provided by this section.
       (b)iiAs used in this section:
            (1)ii"Regular eligible student" means a student who:
                 (A)iiresides 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)iiis a homeless child or youth, as defined by 42iU.S.C.iSection
 11434a.
            (2)ii"Eligible special education student" means a student who is eligible
 for special education services under Section 29.003 and who would be unable to
 attend classes without special transportation services.
            [(3)ii"Linear density" means the average number of regular eligible
 students transported daily, divided by the approved daily route miles traveled by
 the respective transportation system.]
       (c)iiEach district or county operating a regular transportation system is
 entitled to an allotment based on a rate per mile [the daily cost] per regular
 eligible student set [of operating and maintaining the regular transportation
 system and the linear density of that system. In determining the cost, the
 commissioner shall give consideration to factors affecting the actual cost of
 providing these transportation services in each district or county. The average
 actual cost is to be computed by the commissioner and included for
 consideration] by the legislature in the General Appropriations Act. [The
 allotment per mile of approved route may not exceed the amount set by
 appropriation.]
       (d)iiA district or county may apply for and on approval of the commissioner
 receive an additional amount of up to 10 percent of its regular transportation
 allotment to be used for the transportation of children living within two miles of
 the school they attend who would be subject to hazardous traffic conditions or a
 high risk of violence if they walked to school.
       (d-1)iiFor purposes of Subsection (d), each board of trustees shall provide to
 the commissioner an explanation of the hazardous traffic conditions or areas
 presenting a high risk of violence applicable to that district and shall identify the
 specific hazardous or high-risk areas for which the allocation is requested.iiA
 hazardous traffic condition exists where no walkway is provided and children
 must walk along or cross a freeway or expressway, an underpass, an overpass or a
 bridge, an uncontrolled major traffic artery, an industrial or commercial area, or
 another comparable condition.iiAn area presents a high risk of violence if law
 enforcement records indicate a high incidence of violent crimes in the area.iiEach
6018             86th LEGISLATURE — REGULAR SESSION

 board of trustees requesting funds for an area presenting a high risk of violence
 must, in addition to the explanation required by this subsection, provide the
 commissioner with consolidated law enforcement records that document violent
 crimes identified by reporting agencies within the relevant jurisdiction.
       (d-2)iiA district or county may use all or part of any funds received under
 Subsection (d) to support community walking transportation programs, including
 walking school bus programs, provided that the district or county requires each
 supported program to submit a financial report to the district or county each
 semester that covers services provided by the program for the benefit of the
 district or county.iiThe commissioner shall adopt rules governing the
 transportation allotment as necessary to permit a district or county to receive
 funds under Subsection (d) that may be used to support innovative school safety
 projects, including community walking transportation programs as provided by
 this subsection and any other appropriate safety project, including rules defining
 an approved walking route mile that may be used as necessary in implementing
 this subsection.
       (e)iiThe commissioner may grant an amount set by appropriation for private
 or commercial transportation for eligible students from isolated areas. The need
 for this type of transportation grant shall be determined on an individual basis and
 the amount granted shall not exceed the actual cost. The grants may be made only
 in extreme hardship cases. A grant may not be made if the students live within
 two miles of an approved school bus route.
       (f)iiThe cost of transporting career and technology education students from
 one campus to another inside a district, [or] from a sending district to another
 secondary public school for a career and technology program or an area career
 and technology school or to an approved post-secondary institution under a
 contract for instruction approved by the agency, or from a district campus to a
 location at which students are provided work-based learning under the district ’s
 career and technology program shall be reimbursed based on the number of actual
 miles traveled times the district ’s official extracurricular travel per mile rate as set
 by the board of trustees and approved by the agency.
       (g)iiA school district or county that provides special transportation services
 for eligible special education students is entitled to a state allocation paid on a
 previous year ’s cost-per-mile basis. The [maximum] rate per mile 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 transportation shall be
 determined on an individual basis and shall be approved only in extreme hardship
 cases.
       (h)iiFunds allotted under this section must be used in providing
 transportation services.
Saturday, May 25, 2019               HOUSE JOURNAL — 74th Day                                    6019

       (i)iiIn the case of a district belonging to a county transportation system, the
 district ’s transportation allotment for purposes of determining a district ’s
 foundation school program allocations is determined on the basis of the number
 of approved daily route miles in the district [multiplied by the allotment per mile
 to which the county transportation system is entitled].
       (j)iiThe Texas School for the Deaf is entitled to an allotment under this
 section. The commissioner shall determine the appropriate allotment.
       (k)iiNotwithstanding any other provision of this section, the commissioner
 may not reduce the allotment to which a district or county is entitled under this
 section because the district or county provides transportation for an eligible
 student to and from a child-care facility, as defined by Section 42.002, Human
 Resources Code, or a grandparent ’s residence instead of the student ’s residence,
 as authorized by Section 34.007 of this code [, if the transportation is provided
 within the approved routes of the district or county for the school the student
 attends].
       (l)iiA school district may, with the funds allotted under this section, provide
 a bus pass or card for another transportation system to each student who is
 eligible to use the regular transportation system of the district but for whom the
 regular transportation system of the district is not a feasible method of providing
 transportation. The commissioner by rule shall provide procedures for a school
 district to provide bus passes or cards to students under this subsection.
       (m)iiA school district shall be reimbursed on a per-mile basis for the cost of
 transporting a dual credit student to another campus in the district, a campus in
 another district, or a postsecondary educational institution for purposes of
 attending the course, if the course is not available at the student ’s campus.
       S e c . i 4 8 . 1 5 2 i i [ 4 2 . 1 5 8 ] . i i N E W I N S T R U C T I O N A L FA C I L I T Y
 ALLOTMENT. (a) In this section:
             (1)ii"Instructional facility" has the meaning assigned by Section 46.001.
             (2)ii"New instructional facility" includes:
                   (A)iia newly constructed instructional facility;
                   (B)iia repurposed instructional facility; and
                   (C)iia leased facility operating for the first time as an instructional
 facility with a minimum lease term of not less than 10 years.
       (b)iiA school district is entitled to an additional allotment as provided by this
 section for operational expenses associated with opening a new instructional
 facility.
       (c)i[(a-1)]iiA school district entitled to an allotment under this section may
 use funds from the district ’s allotment to renovate an existing instructional facility
 to serve as a dedicated cybersecurity computer laboratory.
       (d)i[(b)]iiFor the first school year in which students attend a new
 instructional facility, a school district is entitled to an allotment of $1,000 for each
 student in average daily attendance at the facility.iiFor the second school year in
 which students attend that instructional facility, a school district is entitled to an
 allotment of $1,000 for each additional student in average daily attendance at the
 facility.
6020             86th LEGISLATURE — REGULAR SESSION

       (e)i[(c)]iiFor purposes of this section, the number of additional students in
 average daily attendance at a facility is the difference between the number of
 students in average daily attendance in the current year at that facility and the
 number of students in average daily attendance at that facility in the preceding
 year.
       (f)iiThe [(d)iiSubject to Subsection (d-1), the] amount appropriated for
 allotments under this section may not exceed $100 [$25] million in a school
 year.iiIf the total amount of allotments to which districts are entitled under this
 section for a school year exceeds the amount appropriated under this subsection,
 the commissioner shall reduce each district ’s allotment under this section in the
 manner provided by Section 48.266(f) [42.253(h)].
       [(d-1)iiIn addition to the appropriation amount described by Subsection (d),
 the amount of $1imillion 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).iiThe
 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 for each student in average daily attendance.iiAny 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 $1,000ifor each student in average daily attendance.
       [(e)iiA school district that is required to take action under Chapter 41ito
 reduce its wealth per student to the equalized wealth level is entitled to a credit, in
 the amount of the allotments to which the district is entitled under this section,
 against the total amount required under Section 41.093ifor the district to purchase
 attendance credits. A school district that is otherwise ineligible for state aid under
 this chapter is entitled to receive allotments under this section.
       [(f)iiThe commissioner may adopt rules necessary to implement this section.
       [(g)iiIn this section:
             [(1)ii"Instructional facility" has the meaning assigned by Section
 46.001.
             [(2)ii"New instructional facility" includes:
                  [(A)iia newly constructed instructional facility;
                  [(B)iia repurposed instructional facility; and
                  [(C)iia leased facility operating for the first time as an instructional
 facility with a minimum lease term of not less than 10 years.]
       SECTIONi1.034.iiSubchapter D, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.153ito read as follows:
       Sec.i48.153.iiDROPOUT RECOVERY SCHOOL AND RESIDENTIAL
 PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
 charter school is entitled to $275 for each student in average daily attendance
 who:
             (1)iiresides in a residential placement facility; or
             (2)iiis at a district or school or a campus of the district or school that is
 designated as a dropout recovery school under Section 39.0548.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6021

       SECTIONi1.035.iiSection 42.106, Education Code, is transferred to
 Subchapter D, Chapter 48, Education Code, as added by this Act, redesignated as
 Section 48.154, and amended to read as follows:
       Sec.i48.154i[42.106].iiTUITION ALLOTMENT FOR DISTRICTS NOT
 OFFERING ALL GRADE LEVELS. A school district that contracts for students
 residing in the district to be educated in another district under Section 25.039(a)
 is entitled to receive an allotment equal to the total amount of tuition required to
 be paid by the district under Section 25.039, not to exceed the amount specified
 by commissioner rule under Section 25.039(b).
       SECTIONi1.036.iiSubchapter D, Chapter 48, Education Code, as added by
 this Act, is amended by adding Sections 48.155 and 48.156 to read as follows:
       S e c . i 4 8 . 1 5 5 . i i C O L L E G E P R E PA R AT I O N A S S E S S M E N T
 REIMBURSEMENT. A school district is entitled to reimbursement for the
 amount of fees paid by the district for the administration of an assessment
 instrument under Section 39.0261(a)(3).
       Sec.i48.156.iiCERTIFICATION EXAMINATION REIMBURSEMENT. A
 school district is entitled to reimbursement for the amount of a subsidy paid by
 the district for a student ’s certification examination under Section 29.190(a) as
 provided by Section 29.190(c).
       SECTIONi1.037.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter E, and a heading is added to that subchapter to
 read as follows:
                       SUBCHAPTER E. TIER TWO ENTITLEMENT
       SECTIONi1.038.iiSections 42.301, 42.302, 42.303, and 42.304, Education
 Code, are transferred to Subchapter E, Chapter 48, Education Code, as added by
 this Act, redesignated as Sections 48.201, 48.202, 48.203, and 48.204, Education
 Code, and amended to read as follows:
       Sec.i48.201ii[42.301].iiPURPOSE. The purpose of the tier two [guaranteed
 yield] component of the Foundation School Program is to provide each school
 district with the opportunity to provide the basic program and to supplement that
 program at a level of its own choice. An allotment under this subchapter may be
 used for any legal purpose other than capital outlay or debt service.
       Sec.i48.202ii[42.302].iTIER TWOiALLOTMENT. (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 48.203 [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;
6022             86th LEGISLATURE — REGULAR SESSION

       "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 48.258 [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
 48.258 [42.2521], divided by 100.
       (a-1)iiFor 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)iithe greater of the amount of district tax revenue per weighted
 student per cent of tax effort [that would be] available to a school district at the
 96th percentile of wealth per weighted student [the Austin Independent School
 District, as determined by the commissioner in cooperation with the Legislative
 Budget Board, if the reduction of the limitation on tax increases as provided by
 Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply,] or the amount that
 results from multiplying 6,160, or the greater amount provided under Section
 48.051(b), if applicable, by 0.016 [of district tax revenue per weighted student
 per cent of tax effort used for purposes of this subdivision in the preceding school
 year], for the first eight [six] cents by which the district ’s maintenance and
 operations tax rate exceeds the district s’ tier one tax rate [equal to the sum of 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 any additional tax effort included in calculating
 the district ’s compressed tax rate under Section 42.101(a-1)]; and
             (2)iisubject to Subsection (f), the amount that results from multiplying
 $6,160, or the greater amount provided under Section 48.051(b), if applicable, by
 0.008 [$31.95], for the district ’s maintenance and operations tax effort that
 exceeds the amount of tax effort described by Subdivision (1).
       (a-2)iiThe limitation on district enrichment tax rate ("DTR") under Section
 48.203 [42.303] does not apply to the district ’s maintenance and operations tax
 effort described by Subsection (a-1)(1).
       (b)iiIn computing the district enrichment tax rate of a school district, the
 total amount of maintenance and operations taxes collected by the school district
 does not include the amount of:
             (1)iithe district ’s local fund assignment under Section 48.256 [42.252];
 or
Saturday, May 25, 2019           HOUSE JOURNAL — 74th Day                             6023

             (2)iitaxes paid into a tax increment fund under Chapter 311, Tax Code.
       (c)iiFor purposes of this section, school district taxes for which credit is
 granted under Section 31.035, 31.036, or 31.037, Tax Code, are considered taxes
 collected by the school district as if the taxes were paid when the credit for the
 taxes was granted.
       (d)iiFor purposes of this section, the total amount of maintenance and
 operations taxes collected for an applicable school year by a school district with
 alternate tax dates, as authorized by Section 26.135, Tax Code, is the amount of
 taxes collected on or after January 1 of the year in which the school year begins
 and not later than December 31 of the same year.
       (e)iiFor purposes of this section, school district taxes for which credit is
 granted under former Subchapter D, Chapter 313, Tax Code, are considered taxes
 collected by the school district as if the taxes were paid when the credit for the
 taxes was granted.
       (f)iiFor a school year in which the dollar amount guaranteed level of state
 and local funds per weighted student per cent of tax effort ("GL") under
 Subsection (a-1)(2) exceeds the dollar amount guaranteed level of state and local
 funds per weighted student per cent of tax effort ("GL") under Subsection (a-1)(2)
 for the preceding school year, a school district shall reduce the district ’s tax rate
 under Section 45.0032(b)(2) for the tax year that corresponds to that school year
 to a rate that results in the amount of state and local funds per weighted student
 per cent of tax effort available to the district at the dollar amount guaranteed level
 for the preceding school year. A school district is not entitled to the amount equal
 to the increase of revenue described by this subsection for the school year for
 which the district must reduce the district ’s tax rate. Unless Section 26.08(a-1),
 Tax Code, applies to the district, for a tax year in which a district must reduce the
 district ’s tax rate under this subsection, the district may not increase the district ’s
 maintenance and operations tax rate to a rate that exceeds the maximum
 maintenance and operations tax rate permitted under Section 45.003(d) or (f), as
 applicable, minus the reduction of tax effort required under this subsection. This
 subsection does not apply if the amount of state funds appropriated for a school
 year specifically excludes the amount necessary to provide the dollar amount
 guaranteed level of state and local funds per weighted student per cent of tax
 effort under Subsection (a-1)(2) [If a school district imposes a maintenance and
 operations tax at a rate greater than the rate equal to 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,
 the district is entitled to receive an allotment under this section on the basis of
 that greater tax effort].
       (f-1)iiNotwithstanding Subsection (f), for the 2019-2020ischool year, the
 reduction of a school district ’s tax rate required under Subsection (f) applies to
 the district ’s total enrichment tax rate under Section 45.0032(b) minus eight
 cents. This subsection expires September 1, 2020.
       Sec.i48.203 [42.303].iiLIMITATION ON ENRICHMENT TAX RATE. The
 district enrichment tax rate ("DTR") under Section 48.202 [42.302] may not
 exceed the amount per $100 of valuation by which the maximum rate permitted
6024             86th LEGISLATURE — REGULAR SESSION

 under Section 45.003 exceeds the rate used to determine the district ’s local share
 under Section 48.256 [42.252], or a greater amount for any year provided by
 appropriation.
       Sec.i48.204 [42.304].iiCOMPUTATION OF AID FOR DISTRICT ON
 MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
 this subchapter for a school district located on a federal military installation or at
 Moody State School is computed using the average tax rate and property value
 per student of school districts in the county, as determined by the commissioner.
       SECTIONi1.039.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter F, and a heading is added to that subchapter to
 read as follows:
                   SUBCHAPTER F. FINANCING THE PROGRAM
       SECTIONi1.040.iiSections 42.251, 42.2511, 42.2514, 42.2515, 42.2516,
 and 42.252, Education Code, are transferred to Subchapter F, Chapter 48,
 Education Code, as added by this Act, redesignated as Sections 48.251, 48.252,
 48.253, 48.254, 48.255, and 48.256, Education Code, and amended to read as
 follows:
       Sec.i48.251 [42.251].iiFINANCING; GENERAL RULE. (a) The cost of the
 Foundation School Program for a school district is the total sum of:
            (1)iithe sum of the tier one allotments and other funding as follows:
                 (A)iithe basic allotment under Subchapter B;
                 (B)ii[and] the student-based [special] allotments under Subchapter
 C; and
                 (C)iithe additional funding under Subchapter D; and
            (2)ii[, computed in accordance with this chapter, constitute the tier one
 allotments. The sum of the tier one allotments and] the tier two allotment
 [guaranteed yield allotments] under Subchapter E.
       (b)iiThe sum of the Foundation School Program maintenance and operations
 costs for all accredited school districts in this state constitutes [F, computed in
 accordance with this chapter, constitute] the total maintenance and operations
 cost of the Foundation School Program.
       (c)i[(b)]iiThe program shall be financed by:
            (1)iistate available school funds distributed in accordance with the law
 [ad valorem tax revenue generated by an equalized uniform school district effort];
            (2)iiad valorem tax revenue generated by local school district effort [in
 excess of the equalized uniform school district effort]; and
            (3)ii[state available school funds distributed in accordance with law; and
            [(4)]iistate funds appropriated for the purposes of public school
 education and allocated to each district in an amount sufficient to finance the cost
 of each district ’s Foundation School Program not covered by other funds
 specified in this subsection.
       Sec.i48.252 [42.2511].iiSCHOOL DISTRICT ENTITLEMENT FOR
 CERTAIN STUDENTS. (a) This section applies only to:
            (1)iia school district and an open-enrollment charter school that enter
 into a contract to operate a district campus as provided by Section 11.174; and
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6025

             (2)iia charter granted by a school district for a program operated by an
 entity that has entered into a contract under Section 11.174, provided that the
 district does not appoint a majority of the governing body of the charter holder.
       (b)iiNotwithstanding any other provision of this chapter or Chapter 49 [41],
 a school district subject to this section is entitled to receive for each student in
 average daily attendance at the campus described by Subsection (a) an amount
 equivalent to the difference, if the difference results in increased funding,
 between:
             (1)iithe amount described by Section 12.106; and
             (2)iithe amount to which the district would be entitled under this
 chapter.
       (c)iiThe commissioner shall adopt rules as necessary to administer this
 section.
       Sec.i48.253 [42.2514].iiADDITIONAL STATE AID FOR TAX
 INCREMENT FINANCING PAYMENTS. (a) For each school year, a school
 district[, including a school district that is otherwise ineligible for state aid under
 this chapter,] is entitled to state aid in an amount equal to the amount the district
 is required to pay into the tax increment fund for a reinvestment zone under
 Section 311.013(n), Tax Code.
       (b)iiA school district shall provide to the agency any agreements,
 amendments to agreements, or other information required by the agency to
 implement this section.
       Sec.i48.254 [42.2515].iiADDITIONAL STATE AID FOR AD VALOREM
 TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. [(a)]
 For each school year, a school district, including a school district that is otherwise
 ineligible for state aid under this chapter, is entitled to state aid in an amount
 equal to the amount of all tax credits credited against ad valorem taxes of the
 district in that year under former Subchapter D, Chapter 313, Tax Code.
       [(b)iiThe commissioner may adopt rules to implement and administer this
 section.]
       Sec.i48.255i[42.2516].iiSTATE COMPRESSION PERCENTAGE. (a) In
 this title, "state compression percentage" means the percentage of the rate of
 $1.00iper $100ivaluation of taxable property at which a school district must levy
 a [district ’s adopted] maintenance and operations tax to receive the full amount of
 the tier one allotment to which the district is entitled under this chapter.
       (b)iiThe [tax rate for the 2005itax year that serves as the basis for state
 funding. If the] state compression percentage is:
             (1)ii93 percent; or
             (2)iia lower percentage set [not established] by appropriation for a
 school year [, the commissioner shall determine the state compression percentage
 for each school year based on the percentage by which a district is able to reduce
 the district ’s maintenance and operations tax rate for that year, as compared to the
 district ’s adopted maintenance and operations tax rate for the 2005itax year, as a
 result of state funds appropriated for that year from the property tax relief fund
 established under Section 403.109, Government Code, or from another funding
 source available for school district property tax relief.
6026            86th LEGISLATURE — REGULAR SESSION

      [(g)iiThe commissioner may adopt rules necessary to implement this section.
      [(h)iiA determination by the commissioner under this section is final and
 may not be appealed].
      Sec.i48.256 [42.252].iiLOCAL SHARE OF PROGRAM COST (TIER
 ONE). (a) Each school district ’s share of the Foundation School Program is
 determined by the following formula:
                                   LFA = TR X DPV
 where:
      "LFA" is the school district ’s local share;
      "TR" is the school district ’s adopted tier one maintenance and operations [a]
 tax rate, as described by Section 45.0032(a) [which] for each hundred dollars of
 valuation [is an effective tax rate of the amount equal to the product of the state
 compression percentage, as determined under Section 42.2516, multiplied by the
 lesser of:
            [(1)ii$1.50; or
            [(2)iithe maintenance and operations tax rate adopted by the district for
 the 2005 tax year]; and
      "DPV" is the taxable value of property in the school district for the current
 [preceding] tax year determined under Subchapter M, Chapter 403, Government
 Code.
      [(a-1)iiNotwithstanding Subsection (a), for a school district that adopted a
 maintenance and operations tax rate for the 2005 tax year below the maximum
 rate permitted by law for that year, the district ’s tax rate ("TR") includes the tax
 effort included in calculating the district ’s compressed tax rate under Section
 42.101(a-1).]
      (b)iiThe commissioner shall adjust the values reported by [in the official
 report of] the comptroller [as required by Section 5.09(a), Tax Code,] to reflect
 reductions in taxable value of property resulting from natural or economic
 disaster [after January 1] in the year in which the valuations are determined. The
 decision of the commissioner is final. An adjustment does not affect the local
 fund assignment of any other school district.
      (c)iiAppeals of district values shall be held pursuant to Section 403.303,
 Government Code.
      (d)iiThis subsection applies to a school district in which the board of trustees
 entered into a written agreement with a property owner under Section 313.027,
 Tax Code, for the implementation of a limitation on appraised value under
 Subchapter B or C, Chapter 313, Tax Code. For purposes of determining "DPV"
 under Subsection (a) for a school district to which this subsection applies, the
 commissioner shall exclude a portion of the market value of property not
 otherwise fully taxable by the district under Subchapter B or C, Chapter 313, Tax
 Code, before the expiration of the subchapter. The comptroller shall provide
 information to the agency necessary for this subsection. A revenue protection
 payment required as part of an agreement for a limitation on appraised value shall
 be based on the district ’s taxable value of property for the preceding tax year.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6027

       (e)iiSubsection (d) does not apply to property that was the subject of an
 application under Subchapter B or C, Chapter 313, Tax Code, made after May 1,
 2009, that the comptroller recommended should be disapproved. [A school
 district must raise its total local share of the Foundation School Program to be
 eligible to receive foundation school fund payments.]
       SECTIONi1.041.iiSubchapter F, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.257 to read as follows:
       Sec.i48.257.iiLOCAL REVENUE LEVEL IN EXCESS OF
 ENTITLEMENT. (a) Subject to Subsection (b), if a school district ’s tier one local
 share under Section 48.256 exceeds the district ’s entitlement under Section
 48.266(a)(1) less the district ’s distribution from the state available school fund,
 the district must reduce the district ’s tier one revenue level in accordance with
 Chapter 49 to a level not to exceed the district ’s entitlement under Section
 48.266(a)(1) less the district ’s distribution from the state available school fund.
       (b)iiThis subsection applies only to a school district to which Subsection (a)
 applies. If a district ’s maintenance and operations tax collections from the tax rate
 described by Section 45.0032(a) for the current tax year minus the required
 reduction in a district ’s tier one revenue level under Subsection (a) results in an
 amount that is less than the amount of the district ’s entitlement under Section
 48.266(a)(1) less the district ’s distribution from the state available school fund,
 the agency shall adjust the amount of the reduction required in the district ’s tier
 one revenue level under Subsection (a) up to the amount of local funds necessary
 for the district ’s entitlement under Section 48.266(a)(1) less the district ’s
 distribution from the state available school fund.
       (c)iiFor purposes of Subsection (a), state aid to which a district is entitled
 under this chapter that is not described by Section 48.266(a)(1), (2), or (3) may
 offset the amount by which a district must reduce the district s’ tier one revenue
 level under Subsection (a). Any amount of state aid used as an offset under this
 subsection shall reduce the amount of state aid to which the district is entitled.
       (d)iiExcept as provided by Subsection (e), a school district is entitled to
 retain the total amount of the district ’s tier two local share described by Section
 48.266(a)(5)(A).
       (e)iiIn any school year for which the amount of state funds appropriated
 specifically excludes the amount necessary to provide the dollar amount
 guaranteed level of state and local funds per weighted student per cent of tax
 effort under Section 48.202(a-1)(1), a district may only retain the amount of the
 district ’s tier two local share described by Section 48.266(a)(5)(A) equal to the
 amount of revenue that would be generated based on the amount appropriated for
 the dollar amount guaranteed level of state and local funds.
       (f)iiIf the amount of a school district ’s tier two local share described by
 Section 48.266(a)(5)(B) to which a district is entitled exceeds the amount
 described by Section 48.202(a-1)(2), the district must reduce the district ’s
 revenue in accordance with Chapter 49 to a level not to exceed the amount
 described by Section 48.202 (a-1)(2).
6028            86th LEGISLATURE — REGULAR SESSION

       (g)iiFor a district to which Section 45.003(f) applies, revenue generated
 from any cents of maintenance and operations tax effort that exceeds the
 maximum rate permitted under Section 45.003(d) is subject to the revenue limit
 established under Subsection (f).
       SECTIONi1.042.iiSections 42.2521, 42.2522, 42.2523, 42.2524, 42.2525,
 42.2526, 42.2527, 42.2528, 42.253, 42.2531, 42.2532, 42.254, 42.255, 42.257,
 42.258, 42.259, 42.2591, and 42.260, Education Code, are transferred to
 Subchapter F, Chapter 48, Education Code, as added by this Act, redesignated as
 Sections 48.258, 48.259, 48.260, 48.261, 48.262, 48.263, 48.264, 48.265,
 48.266, 48.267, 48.268, 48.269, 48.270, 48.271, 48.272, 48.273, 48.274, and
 48.275, Education Code, and amended to read as follows:
       Sec.i48.258 [42.2521].iiADJUSTMENT FOR RAPID DECLINE IN
 TAXABLE VALUE OF PROPERTY. (a) For purposes of Chapters [41iand]
 46iand 49iand this chapter, and to the extent money specifically authorized to be
 used under this section is available, the commissioner shall adjust the taxable
 value of property in a school district that, due to factors beyond the control of the
 board of trustees, experiences a rapid decline in the tax base used in calculating
 taxable values in excess of four percent of the tax base used in the preceding year.
       (b)iiTo the extent that a sufficient amount of money is not available to fund
 all adjustments under this section, the commissioner shall reduce adjustments in
 the manner provided by Section 48.266(f) [42.253(h)] so that the total amount of
 adjustments equals the amount of money available to fund the adjustments.
       (c)iiA decision of the commissioner under this section is final and may not
 be appealed.
       Sec.i48.259 [42.2522].iiADJUSTMENT FOR OPTIONAL HOMESTEAD
 EXEMPTION. (a) In any school year, the commissioner may not provide funding
 under this chapter or Chapter 46 based on a school district ’s taxable value of
 property computed in accordance with Section 403.302(d)(2), Government Code,
 unless:
            (1)iifunds are specifically appropriated for purposes of this section; or
            (2)iithe commissioner determines that the total amount of state funds
 appropriated for purposes of the Foundation School Program for the school year
 exceeds the amount of state funds distributed to school districts in accordance
 with Section 48.266i[42.253] based on the taxable values of property in school
 districts computed in accordance with Section 403.302(d), Government Code,
 without any deduction for residence homestead exemptions granted under
 Section 11.13(n), Tax Code.
       (b)iiIn making a determination under Subsection (a)(2), the commissioner
 shall:
            (1)iinotwithstanding Section 48.266(b) [42.253(b)], reduce the
 entitlement under this chapter of a school district whose final taxable value of
 property is higher than the estimate under Section 48.269 [42.254] and make
 payments to school districts accordingly; and
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6029

             (2)iigive priority to school districts that, due to factors beyond the
 control of the board of trustees, experience a rapid decline in the tax base used in
 calculating taxable values in excess of four percent of the tax base used in the
 preceding year.
       (c)iiIn the first year of a state fiscal biennium, before providing funding as
 provided by Subsection (a)(2), the commissioner shall ensure that sufficient
 appropriated funds for purposes of the Foundation School Program are available
 for the second year of the biennium, including funds to be used for purposes of
 Section 48.258 [42.2521].
       (d)iiIf the commissioner determines that the amount of funds available under
 Subsection (a)(1) or (2) does not at least equal the total amount of state funding to
 which districts would be entitled if state funding under this chapter were based on
 the taxable values of property in school districts computed in accordance with
 Section 403.302(d)(2), Government Code, the commissioner may, to the extent
 necessary, provide state funding based on a uniform lesser fraction of the
 deduction under Section 403.302(d)(2), Government Code.
       (e)iiThe commissioner shall notify school districts as soon as practicable as
 to the availability of funds under this section. For purposes of computing a
 rollback tax rate under Section 26.08, Tax Code, a district shall adjust the
 district ’s tax rate limit to reflect assistance received under this section.
       Sec.i48.260 [42.2523].iiADJUSTMENT FOR PROPERTY VALUE
 AFFECTED BY STATE OF DISASTER. (a) For purposes of Chapters [41iand]
 46iand 49iand this chapter, the commissioner shall adjust the taxable value of
 property of a school district all or part of which is located in an area declared a
 disaster area by the governor under Chapter 418, Government Code, as necessary
 to ensure that the district receives funding based as soon as possible on property
 values as affected by the disaster.
       (b)iiThe commissioner may fund adjustments under this section using funds
 specifically appropriated for the purpose or other funds available to the
 commissioner for that purpose.
       (c)i[(d)]iiA decision of the commissioner under this section is final and may
 not be appealed.
       Sec.i48.261 [42.2524].iiREIMBURSEMENT FOR DISASTER
 REMEDIATION COSTS. (a) This section applies only to a school district all or
 part of which is located in an area declared a disaster area by the governor under
 Chapter 418, Government Code, and that incurs disaster remediation costs as a
 result of the disaster.
       (b)iiDuring the two-year period following the date of the governor ’s initial
 proclamation or executive order declaring a state of disaster, a district may apply
 to the commissioner for reimbursement of disaster remediation costs that the
 district pays during that period and does not anticipate recovering through
 insurance proceeds, federal disaster relief payments, or another similar source of
 reimbursement.
       (c)iiThe commissioner may provide reimbursement under this section only if
 funds are available for that purpose from [as follows]:
6030             86th LEGISLATURE — REGULAR SESSION

             (1)ii[reimbursement for a school district not required to take action
 under Chapter 41imay be provided from:
                   [(A)]iiamounts appropriated for that purpose, including amounts
 appropriated for school [those] districts for that purpose to the disaster
 contingency fund established under Section 418.073, Government Code; or
             (2)ii[(B)]iiFoundation School Program funds available for that purpose,
 based on a determination by the commissioner that the amount appropriated for
 the Foundation School Program, including the facilities component as provided
 by Chapter 46, exceeds the amount to which districts are entitled under this
 chapter and Chapter 46[; and
             [(2)iireimbursement for a school district required to take action under
 Chapter 41imay be provided from funds described by Subdivision (1)(B) if funds
 remain available after fully reimbursing each school district described by
 Subdivision (1) for its disaster remediation costs].
        (d)ii[If the amount of money available for purposes of reimbursing school
 districts not required to take action under Chapter 41iis not sufficient to fully
 reimburse each district ’s disaster remediation costs, the commissioner shall
 reduce the amount of assistance provided to each of those districts
 proportionately. If the amount of money available for purposes of reimbursing
 school districts required to take action under Chapter 41iis not sufficient to fully
 reimburse each district ’s disaster remediation costs, the commissioner shall
 reduce the amount of assistance provided to each of those districts
 proportionately.
        [(e)]iiA district seeking reimbursement under this section must provide the
 commissioner with adequate documentation of the costs for which the district
 seeks reimbursement.
        (e)ii[(f)iiA district required to take action under Chapter 41:
             [(1)iimay, at its discretion, receive assistance provided under this section
 either as a payment of state aid under this chapter or as a reduction in the total
 amount required to be paid by the district for attendance credits under Section
 41.093; and
             [(2)iimay not obtain reimbursement under this section for the payment
 of any disaster remediation costs that resulted in a reduction under Section
 41.0931 of the district ’s cost of attendance credits.
        [(h)]iiThe commissioner shall adopt rules necessary to implement this
 section, including rules:
             (1)iidefining "disaster remediation costs" for purposes of this section,
 which must include the cost to repair or replace vehicles or computers damaged
 in the disaster; and
             (2)iispecifying the type of documentation required under Subsection (d)
 [(e)].
        (f)i[(i)]iiNotwithstanding any other provision of this section, the
 commissioner may permit a district to use amounts provided to a district under
 this section to pay the costs of replacing a facility instead of repairing the facility.
 The commissioner shall ensure that a district that elects to replace a facility does
 not receive an amount under this section that exceeds the lesser of:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6031

             (1)iithe amount that would be provided to the district if the facility were
 repaired; or
             (2)iithe amount necessary to replace the facility.
       (g)i[(j)]iiThis section does not require the commissioner to provide any
 requested reimbursement. A decision of the commissioner regarding
 reimbursement is final and may not be appealed.
       Sec.i48.262 [42.2525].iiADJUSTMENTS FOR CERTAIN DISTRICTS
 RECEIVING FEDERAL IMPACT AID. The commissioner is granted the
 authority to ensure that school districts receiving federal impact aid due to the
 presence of a military installation or significant concentrations of military
 students do not receive more than an eight percent reduction should the federal
 government reduce appropriations to those schools.
       Sec.i48.263 [42.2526].iiADJUSTMENT FOR DISTRICT OPERATING
 PILOT PROGRAM. (a) This section applies only to a school district operating a
 pilot program authorized by Section 28.0255.
       (b)iiBeginning with the first school year that follows the first school year in
 which students receive high school diplomas under the pilot program authorized
 by Section 28.0255 and continuing for every subsequent school year that the
 district operates the pilot program, the commissioner shall provide funding for the
 district ’s prekindergarten program under Section 29.153 on a full-day basis for a
 number of prekindergarten students equal to twice the number of students who
 received a high school diploma under the pilot program authorized by Section
 28.0255 during the preceding school year.
       (c)iiThis section expires September 1, 2023.
       Sec.i48.264 [42.2527].iiADJUSTMENT FOR CERTAIN DISTRICTS
 WITH EARLY HIGH SCHOOL GRADUATION PROGRAMS. (a) As a pilot
 program to enable the state to evaluate the benefit of providing additional funding
 at the prekindergarten level for low-income students, the commissioner shall
 provide prekindergarten funding in accordance with this section to a school
 district located in a county that borders the United Mexican States and the Gulf of
 Mexico.
       (b)iiThe commissioner shall provide funding for a school district ’s
 prekindergarten program on a half-day basis for a number of low-income
 prekindergarten students equal to twice the number of students who received, as a
 result of participation in an early high school graduation program operated by the
 district, a high school diploma from the district during the preceding school year
 after three years of secondary school attendance.
       (c)iiThe commissioner may adopt rules necessary to implement this section.
       (d)iiThis section expires September 1, 2023.
       Sec.i48.265 [42.2528].iiEXCESS FUNDS FOR VIDEO SURVEILLANCE
 OF SPECIAL EDUCATION SETTINGS. (a) Notwithstanding any other
 provision of law, if the commissioner determines that the amount appropriated for
 the purposes of the Foundation School Program exceeds the amount to which
 school districts are entitled under this chapter, the commissioner by rule shall
 establish a grant program through which excess funds are awarded as grants for
6032             86th LEGISLATURE — REGULAR SESSION

 the purchase of video equipment, or for the reimbursement of costs for previously
 purchased video equipment, used for monitoring special education classrooms or
 other special education settings required under Section 29.022.
       (b)iiIn awarding grants under this section, the commissioner shall give
 highest priority to districts with maintenance and operations tax rates at the
 greatest rates permitted by law. The commissioner shall also give priority to:
            (1)iidistricts with maintenance and operations tax rates at least equal to
 the state maximum compressed tax rate, as defined by Section 48.051(a)
 [42.101(a)], and lowest amounts of maintenance and operations tax revenue per
 weighted student; and
            (2)iidistricts with debt service tax rates near or equal to the greatest rates
 permitted by law.
       (c)iiThe commissioner may adopt rules to implement and administer this
 section.
       Sec.i48.266i[42.253].iiDISTRIBUTION OF FOUNDATION SCHOOL
 FUND. (a) For each school year the commissioner shall determine:
            (1)iithe amount of money to which a school district is entitled under
 Subchapters B, [and] C, and D;
            (2)iithe amount of money to which a school district is entitled under
 Subchapter E [F];
            (3)iithe amount of money allocated to the district from the available
 school fund;
            (4)iithe amount of each district ’s tier one local share under Section
 48.256i[42.252]; and
            (5)iithe amount of each district ’s tier two local share under Section
 48.202ifor:
                 (A)iithe district ’s maintenance and operations tax effort described
 by Section 48.202(a-1)(1); and
                 (B)iithe district ’s maintenance and operations tax effort described
 by Section 48.202(a-1)(2) [42.302].
       (b)iiExcept as provided by this subsection, the commissioner shall base the
 determinations under Subsection (a) on the estimates provided to the legislature
 under Section 48.269 [42.254], or, if the General Appropriations Act provides
 estimates for that purpose, on the estimates provided under that Act, for each
 school district for each school year. The commissioner shall reduce the
 entitlement of each district that has a final taxable value of property for the
 second year of a state fiscal biennium that is higher than the estimate under
 Section 48.269 [42.254] or the General Appropriations Act, as applicable. A
 reduction under this subsection may not reduce the district ’s entitlement below
 the amount to which it is entitled at its actual taxable value of property.
       (c)iiEach school district is entitled to an amount equal to the difference for
 that district between the sum of Subsections (a)(1) and (a)(2) and the sum of
 Subsections (a)(3), (a)(4), and (a)(5).
       (d)iiThe commissioner shall approve warrants to each school district
 equaling the amount of its entitlement except as provided by this section.
 Warrants for all money expended according to this chapter shall be approved and
Saturday, May 25, 2019           HOUSE JOURNAL — 74th Day                             6033

 transmitted to treasurers or depositories of school districts in the same manner
 that warrants for state payments are transmitted. The total amount of the warrants
 issued under this section may not exceed the total amount appropriated for
 Foundation School Program purposes for that fiscal year.
       (e)i[(g)]iiIf a school district demonstrates to the satisfaction of the
 commissioner that the estimate of the district ’s tax rate, student enrollment, or
 taxable value of property used in determining the amount of state funds to which
 the district is entitled are so inaccurate as to result in undue financial hardship to
 the district, the commissioner may adjust funding to that district in that school
 year to the extent that funds are available for that year.
       (f)i[(h)]iiIf the amount appropriated for the Foundation School Program for
 the second year of a state fiscal biennium is less than the amount to which school
 districts and open-enrollment charter schools are entitled for that year, the
 commissioner shall certify the amount of the difference to the Legislative Budget
 Board not later than January 1 of the second year of the state fiscal
 biennium.iiThe Legislative Budget Board shall propose to the legislature that the
 certified amount be transferred to the foundation school fund from the economic
 stabilization fund and appropriated for the purpose of increases in allocations
 under this subsection.iiIf the legislature fails during the regular session to enact
 the proposed transfer and appropriation and there are not funds available under
 Subsection (h) [(j)], the commissioner shall adjust the total amounts due to each
 school district and open-enrollment charter school under this chapter and the total
 amounts necessary for each school district to comply with the requirements of
 Chapter 49 [41] by an amount determined by applying to each district and school
 the same percentage adjustment to the total amount of state and local revenue due
 to the district or school under this chapter and Chapter 49 [41] so that the total
 amount of the adjustment to all districts and schools results in an amount equal to
 the total adjustment necessary.iiThe following fiscal year:
            (1)iia district ’s or school ’s entitlement under this section is increased by
 an amount equal to the adjustmentiimade under this subsection; and
            (2)iithe amount necessary for a district to comply with the requirements
 of Chapter 49 [41] is reduced by an amount necessary to ensure a district ’s full
 recovery of the adjustment made under this subsection.
       (g)i[(i)]iiNot later than March 1 each year, the commissioner shall determine
 the actual amount of state funds to which each school district is entitled under the
 allocation formulas in this chapter for the current school year and shall compare
 that amount with the amount of the warrants issued to each district for that year. If
 the amount of the warrants differs from the amount to which a district is entitled
 because of variations in the district s’ tax rate, student enrollment, or taxable value
 of property, the commissioner shall adjust the district ’s entitlement for the next
 fiscal year accordingly.
       (h)i[(j)]iiThe legislature may appropriate funds necessary for increases under
 Subsection (g) [(i)] from funds that the comptroller, at any time during the fiscal
 year, finds are available.
6034             86th LEGISLATURE — REGULAR SESSION

       (i)i[(k)]iiThe commissioner shall compute for each school district the total
 amount by which the district ’s allocation of state funds is increased or reduced
 under Subsection (g) [(i)] and shall certify that amount to the district.
       Sec.i48.267ii[42.2531].iiADJUSTMENT BY COMMISSIONER. (a) The
 commissioner may make adjustments to amounts due to a school district under
 this chapter or Chapter 46, or to amounts necessary for a district to comply with
 the requirements of Chapter 49 [41], as provided by this section.
       (b)iiA school district that has a major taxpayer, as determined by the
 commissioner, that because of a protest of the valuation of the taxpayer s’ property
 fails to pay all or a portion of the ad valorem taxes due to the district may apply
 to the commissioner to have the district ’s taxable value of property or ad valorem
 tax collections adjusted for purposes of this chapter or Chapter [41ior] 46ior 49.
 The commissioner may make the adjustment only to the extent the commissioner
 determines that making the adjustment will not:
             (1)iiin the fiscal year in which the adjustment is made, cause the amount
 to which school districts are entitled under this chapter to exceed the amount
 appropriated for purposes of the Foundation School Program for that year; and
             (2)iiif the adjustment is made in the first year of a state fiscal biennium,
 cause the amount to which school districts are entitled under this chapter for the
 second year of the biennium to exceed the amount appropriated for purposes of
 the Foundation School Program for that year.
       (c)iiThe commissioner shall recover the benefit of any adjustment made
 under this section by making offsetting adjustments in the school district ’s
 taxable value of property or ad valorem tax collections for purposes of this
 chapter or Chapter [41ior] 46ior 49ion a final determination of the taxable value
 of property that was the basis of the original adjustment, or in the second school
 year following the year in which the adjustment is made, whichever is earlier.
       (d)iiThis section does not require the commissioner to make any requested
 adjustment. A determination by the commissioner under this section is final and
 may not be appealed.
       Sec.i48.268ii[42.2532].iiADJUSTMENT FOR RESOLUTION OF
 DISPUTE OR ERROR RESULTING IN TAXATION OF SAME PROPERTY
 BY MULTIPLE SCHOOL DISTRICTS.iiThe commissioner shall adjust the
 amounts due to a school district under this chapter and Chapter 46ias necessary to
 account for the resolution of a dispute or error involving the district and another
 district by an agreement between the districts entered into under Section
 31.112(c), Tax Code, or by a final order of the supreme court entered under
 Section 72.010, Local Government Code.
       Sec.i48.269ii[42.254].iiESTIMATES REQUIRED. (a) Not later than
 October 1 of each even-numbered year:
             (1)iithe agency shall submit to the legislature an estimate of the tax rate
 and student enrollment of each school district for the following biennium; and
             (2)iithe comptroller shall submit to the legislature an estimate of the
 total taxable value of all property in the state as determined under Subchapter M,
 Chapter 403, Government Code, for the following biennium.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6035

       (b)iiThe agency and the comptroller shall update the information provided to
 the legislature under Subsection (a) not later than March 1 of each odd-numbered
 year.
       Sec.i48.270ii[42.255].iiFALSIFICATION OF RECORDS; REPORT. When,
 in the opinion of the agency ’s director of school audits, audits or reviews of
 accounting, enrollment, or other records of a school district reveal deliberate
 falsification of the records, or violation of the provisions of this chapter, through
 which the district ’s share of state funds allocated under the authority of this
 chapter would be, or has been, illegally increased, the director shall promptly and
 fully report the fact to the State Board of Education, the state auditor, and the
 appropriate county attorney, district attorney, or criminal district attorney.
       Sec.i48.271ii[42.257].iiEFFECT OF APPRAISAL APPEAL. (a) If the final
 determination of an appeal under Chapter 42, Tax Code, results in a reduction in
 the taxable value of property that exceeds five percent of the total taxable value of
 property in the school district for the same tax year determined under Subchapter
 M, Chapter 403, Government Code, the commissioner shall request the
 comptroller to adjust its taxable property value findings for that year consistent
 with the final determination of the appraisal appeal.
       (b)iiIf the district would have received a greater amount from the foundation
 school fund for the applicable school year using the adjusted value, the
 commissioner shall add the difference to subsequent distributions to the district
 from the foundation school fund. An adjustment does not affect the local fund
 assignment of any other district.
       (c)iiIn addition to the funding provided under Subsection (b), a school
 district is entitled to reimbursement for the amount of interest included in a
 refund made by the district under Section 42.43, Tax Code, in the state fiscal year
 ending August 31, 2018, or August 31, 2019. This subsection expires September
 1, 2021.
       Sec.i48.272ii[42.258].iiRECOVERY OF OVERALLOCATED FUNDS.
 (a)iiIf a school district has received an overallocation of state funds, the agency
 shall, by withholding from subsequent allocations of state funds for the current or
 subsequent school year or by requesting and obtaining a refund, recover from the
 district an amount equal to the overallocation.
       (b)i[(a-1)]iiNotwithstanding Subsection (a), the agency may recover an
 overallocation of state funds over a period not to exceed the subsequent five
 school years if the commissioner determines that the overallocation was the result
 of exceptional circumstances reasonably caused by statutory changes to Chapter
 [41ior] 46ior 49ior this chapter and related reporting requirements.
       (c)i[(b)]iiIf a district fails to comply with a request for a refund under
 Subsection (a), the agency shall certify to the comptroller that the amount
 constitutes a debt for purposes of Section 403.055, Government Code. The
 agency shall provide to the comptroller the amount of the overallocation and any
 other information required by the comptroller. The comptroller may certify the
 amount of the debt to the attorney general for collection.
       (d)i[(c)]iiAny amounts recovered under this section shall be deposited in the
 foundation school fund.
6036             86th LEGISLATURE — REGULAR SESSION

       (e)iiSubject to Subsection (f), the agency may review a school district as
 necessary to determine if the district qualifies for each allotment received by the
 district under this chapter. If the agency determines that a school district received
 an allotment to which the district was not entitled, the agency may establish a
 corrective action plan or withhold the applicable amount of funding from the
 district.
       (f)iiThe agency may not review school district expenditures that occurred
 seven or more years before the review.
       Sec.i48.273ii[42.259].iiFOUNDATION SCHOOL FUND TRANSFERS. (a)
 In this section:
            (1)ii"Category 1 school district" means a school district having a wealth
 per student of less than one-half of the statewide average wealth per student.
            (2)ii"Category 2 school district" means a school district having a wealth
 per student of at least one-half of the statewide average wealth per student but not
 more than the statewide average wealth per student.
            (3)ii"Category 3 school district" means a school district having a wealth
 per student of more than the statewide average wealth per student.
            (4)ii"Wealth per student" means the taxable property values reported by
 the comptroller to the commissioner under Section 48.256 [42.252] divided by
 the number of students in average daily attendance.
       (b)iiPayments from the foundation school fund to each category 1 school
 district shall be made as follows:
            (1)ii15 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of September of a fiscal year;
            (2)ii80 percent of the yearly entitlement of the district shall be paid in
 eight equal installments to be made on or before the 25th day of October,
 November, December, January, March, May, June, and July; and
            (3)iifive percent of the yearly entitlement of the district shall be paid in
 an installment to be made on or before the 25th day of February.
       (c)iiPayments from the foundation school fund to each category 2 school
 district shall be made as follows:
            (1)ii22 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of September of a fiscal year;
            (2)ii18 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of October;
            (3)ii9.5 percent of the yearly entitlement of the district shall be paid in
 an installment to be made on or before the 25th day of November;
            (4)ii7.5 percent of the yearly entitlement of the district shall be paid in
 an installment to be made on or before the 25th day of April;
            (5)iifive percent of the yearly entitlement of the district shall be paid in
 an installment to be made on or before the 25th day of May;
            (6)ii10 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of June;
            (7)ii13 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of July; and
Saturday, May 25, 2019           HOUSE JOURNAL — 74th Day                              6037

             (8)ii15 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of August.
       (d)iiPayments from the foundation school fund to each category 3 school
 district shall be made as follows:
             (1)ii45 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of September of a fiscal year;
             (2)ii35 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of October; and
             (3)ii20 percent of the yearly entitlement of the district shall be paid in an
 installment to be made on or before the 25th day of August.
       (e)iiThe amount of any installment required by this section may be modified
 to provide a school district with the proper amount to which the district may be
 entitled by law and to correct errors in the allocation or distribution of funds. If an
 installment under this section is required to be equal to other installments, the
 amount of other installments may be adjusted to provide for that equality. A
 payment under this section is not invalid because it is not equal to other
 installments.
       (f)iiPreviously unpaid additional funds from prior fiscal years owed to a
 district shall be paid to the district together with the September payment of the
 current fiscal year entitlement.
       (g)iiThe commissioner shall make all annual Foundation School Program
 payments under this section for purposes described by Sections 45.252(a)(1) and
 (2) before the deadline established under Section 45.263(b) for payment of debt
 service on bonds.iiNotwithstanding any other provision of this section, the
 commissioner may make Foundation School Program payments under this
 section after the deadline established under Section 45.263(b) only if the
 commissioner has not received notice under Section 45.258 concerning a
 district ’s failure or inability to pay matured principal or interest on bonds.
       Sec.i48.274ii[42.2591].iiFOUNDATION SCHOOL FUND TRANSFERS
 TO CERTAIN CHARTER SCHOOLS. (a)iiOn the request of an open-enrollment
 charter school, the commissioner shall compare the student enrollment of the
 open-enrollment charter school for the current school year to the student
 enrollment of the school during the preceding school year.iiIf the number of
 students enrolled at the open-enrollment charter school for the current school year
 has increased by 10 percent or more from the number of students enrolled during
 the preceding school year, the open-enrollment charter school may request that
 payments from the foundation school fund to the school for the following school
 year and each subsequent school year, subject to Subsection (b), be made
 according to the schedule provided under Subsection (c).
       (b)iiAn open-enrollment charter school that qualifies to receive funding as
 provided by this section is entitled to receive funding in that manner for three
 school years.iiOn the expiration of that period, the commissioner shall determine
 the eligibility of the open-enrollment charter school to continue receiving
 payments from the foundation school fund under this section for an additional
6038             86th LEGISLATURE — REGULAR SESSION

 three school years.iiSubsequently, the open-enrollment charter school must
 reestablish eligibility in the manner provided by this subsection every three
 school years.
       (c)iiPayments from the foundation school fund to an open-enrollment
 charter school under this section shall be made as follows:
            (1)ii22 percent of the yearly entitlement of the school shall be paid in an
 installment to be made on or before the 25th day of September of a fiscal year;
            (2)ii18 percent of the yearly entitlement of the school shall be paid in an
 installment to be made on or before the 25th day of October;
            (3)ii9.5 percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of November;
            (4)iifour percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of December;
            (5)iifour percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of January;
            (6)iifour percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of February;
            (7)iifour percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of March;
            (8)ii7.5 percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of April;
            (9)iifive percent of the yearly entitlement of the school shall be paid in
 an installment to be made on or before the 25th day of May;
            (10)iiseven percent of the yearly entitlement of the school shall be paid
 in an installment to be made on or before the 25th day of June;
            (11)iiseven percent of the yearly entitlement of the school shall be paid
 in an installment to be made on or before the 25th day of July; and
            (12)iieight percent of the yearly entitlement of the school shall be paid
 in an installment to be made on or before the 25th day of August.
       (d)iiThe amount of any installment required by this section may be modified
 to provide an open-enrollment charter school with the proper amount to which
 the school may be entitled by law and to correct errors in the allocation or
 distribution of funds.
       (e)iiPreviously unpaid additional funds from prior fiscal years owed to an
 open-enrollment charter school shall be paid to the school together with the
 September payment of the current fiscal year entitlement.
       Sec.i48.275ii[42.260].iiUSE OF CERTAIN FUNDS. (a) In this section,
 "participating charter school" means an open-enrollment charter school that
 participates in the uniform group coverage program established under Chapter
 1579, Insurance Code.
       (b)iiThe amount of additional funds to which each school district or
 participating charter school is entitled due to the increases in formula funding
 made by HBi3343, Acts of the 77th Legislature, Regular Session, 2001, and any
 subsequent legislation amending the provisions amended by that Act that increase
 formula funding under Chapter 49 [41] and this chapter to school districts and
 charter schools is available for purposes of Subsection (c).
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6039

       (c)iiNotwithstanding any other provision of this code, a school district or
 participating charter school may use the sum of the following amounts of funds
 only to pay contributions under a group health coverage plan for district or school
 employees:
            (1)iithe amount determined by multiplying the amount of $900 or the
 amount specified in the General Appropriations Act for that year for purposes of
 the state contribution under Section 1579.251, Insurance Code, by the number of
 district or school employees who participate in a group health coverage plan
 provided by or through the district or school; and
            (2)iithe difference between the amount necessary for the district or
 school to comply with Section 1581.052, Insurance Code, for the school year and
 the amount the district or school is required to use to provide health coverage
 under Section 1581.051, Insurance Code, for that year.
       (d)iiA determination by the commissioner under this section is final and may
 not be appealed.
       [(e)iiThe commissioner may adopt rules to implement this section.]
       SECTIONi1.043.iiSubchapter F, Chapter 48, Education Code, as added by
 this Act, is amended by adding Sections 48.277, 48.278, and 48.279 to read as
 follows:
       Sec.i48.277.iiFORMULA TRANSITION GRANT. (a) A school district or
 open-enrollment charter school is entitled to receive an annual allotment for each
 student in average daily attendance in the amount equal to the difference, if the
 difference is greater than zero, that results from subtracting the total maintenance
 and operations revenue per student in average daily attendance for the current
 school year from the lesser of:
            (1)ii103 percent of the district ’s or school ’s total maintenance and
 operations revenue per student in average daily attendance for the
 2019-2020ischool year that the district or school would have received under
 former Chapters 41iand 42, as those chapters existed on January 1, 2019; or
            (2)ii128 percent of the statewide average amount of maintenance and
 operations revenue per student in average daily attendance that would have been
 provided for the 2019-2020ischool year under former Chapters 41iand 42, as
 those chapters existed on Januaryi1, 2019.
       (b)iiFor purposes of calculating maintenance and operations revenue under
 Subsection (a), the commissioner shall:
            (1)iifor purposes of Subsections (a)(1) and (2), use the following
 applicable school year:
                 (A)iiin a school year ending in an even-numbered year, the
 2019-2020ischool year; and
                 (B)iiin a school year ending in an odd-numbered year, the
 2019-2020ior 2020-2021ischool year, whichever is greater;
            (2)iiinclude all state and local funding, except for any funding resulting
 from:
                 (A)iireimbursement for disaster remediation costs under former
 Sections 41.0931iand 42.2524;
6040             86th LEGISLATURE — REGULAR SESSION

                 (B)iian adjustment for rapid decline in taxable value of property
 under former Section 42.2521; and
                 (C)iian adjustment for property value affected by a state of disaster
 under former Section 42.2523;
            (3)iiadjust the calculation to reflect a reduction in tax effort by a school
 district; and
            (4)iiif a school district or open-enrollment charter school receives a
 waiver relating to eligibility requirements for the national free or reduced-price
 lunch program under 42 U.S.C. Section 1751 et seq., use the numbers of
 educationally disadvantaged students on which the district ’s or school ’s
 entitlement to compensatory education funds was based for the school year
 before the school year in which the district or school received the waiver,
 adjusted for estimated enrollment growth.
       (c)iiA decision by the commissioner under this section is final and may not
 be appealed.
       (d)iiA school district or open-enrollment charter school is not entitled to an
 allotment under Subsection (a) beginning with the 2024-2025 school year.
       (d-1)iiSubject to Subsection (d-2), a school district or open-enrollment
 charter school is entitled to receive an annual allotment for each student in
 average daily attendance in the amount equal to the difference, if the difference is
 greater than zero, that results from subtracting the total maintenance and
 operations revenue per student in average daily attendance for the current school
 year from the total maintenance and operations revenue per student in average
 daily attendance that would have been available to the district or school under
 former Chapters 4i and 42, as those chapters existed on Januaryi1, 2019. For
 purposes of calculating a district ’s maintenance and operations revenue under this
 subsection, the commissioner shall:
            (1)iiapply Subsection (b); and
            (2)iiin calculating a district ’s maintenance and operations revenue under
 former Chapters 41iand 42, as those chapters existed on January 1, 2019, exclude
 any additional revenue the district would have received under former Sections
 41.002(e) through (g), as those sections existed on Januaryi1, 2019.
       (d-2)iiA school district or open-enrollment charter school may only receive
 an allotment under Subsection (a) or (d-1), whichever is greater, but not both.
       (d-3)iiSubsections (d-1) and (d-2) and this subsection expire September 1,
 2021.
       (e)iiThis section expires September 1, 2025.
       Sec.i48.278.iiEQUALIZED WEALTH TRANSITION GRANT. (a) Subject
 to Subsection (b), a school district is entitled to receive an annual allotment in an
 amount equal to the amount of additional revenue a school district received for
 the 2018-2019ischool year under former Sections 41.002(e) through (g), as those
 sections existed on January 1, 2019.
       (b)iiFor purposes of calculating a district ’s allotment under Subsection (a),
 the commissioner shall reduce the amount to which a district is entitled under
 Subsection (a) by:
            (1)iifor the 2020-2021 school year, 20 percent;
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6041

             (2)iifor the 2021-2022 school year, 40 percent;
             (3)iifor the 2022-2023 school year, 60 percent; and
             (4)iifor the 2023-2024 school year, 80 percent.
       (c)iiThis section expires September 1, 2024.
       Sec.i48.279.iiMAINTENANCE OF STATE FINANCIAL SUPPORT FOR
 SPECIAL EDUCATION. (a) Funds appropriated for purposes of this section or
 transferred in accordance with this section are state funds for purposes of
 compliance with the requirements regarding maintenance of state financial
 support for special education under 20iU.S.C.iSection 1412(a)(18). The
 commissioner shall identify the amount of funding described by this subsection
 and separate that amount from other funding provided under this chapter.
       (b)iiIf the commissioner determines that the total amount of funding for
 special education for a school year that ends during the first state fiscal year of a
 state fiscal biennium is less than the amount required to comply with
 requirements regarding maintenance of state financial support under
 20iU.S.C.iSection 1412(a)(18), the commissioner shall use funds appropriated for
 the Foundation School Program for the second state fiscal year of that biennium
 to increase funding for special education for the first state fiscal year of that
 biennium in an amount necessary to ensure compliance with that provision.
       (c)iiIf the commissioner determines that the total amount of funding for
 special education for a school year that ends during the second state fiscal year of
 a state fiscal biennium is less than the amount required to comply with
 requirements regarding maintenance of state financial support under
 20iU.S.C.iSection 1412(a)(18), the commissioner shall submit to the legislature
 an estimate of the amount of funding needed to comply with that provision for
 that state fiscal year.
       (d)iiIf federal funds are withheld for a school year due to noncompliance
 with requirements regarding maintenance of state financial support under
 20iU.S.C.iSection 1412(a)(18), the commissioner shall use for that school year an
 amount of funds described by Subsection (a) equal to the amount of withheld
 funds in the same manner and for the same purposes as the withheld funds would
 have been provided.
       (e)iiAfter the commissioner has replaced any withheld federal funds as
 provided by Subsection (d), the commissioner shall distribute the remaining
 amount, if any, of funds described by Subsection (a) to proportionately increase
 funding for the special education allotment under Section 48.102.
       (f)iiIn complying with Subsection (d), the commissioner may implement any
 program necessary to ensure the use of funds in accordance with that subsection.
       SECTIONi1.044.iiChapter 48, Education Code, as added by this Act, is
 amended by adding Subchapter G, and a heading is added to that subchapter to
 read as follows:
                 SUBCHAPTER G. MISCELLANEOUS PROVISIONS
       SECTIONi1.045.iiSection 42.4101, Education Code, is transferred to
 Subchapter G, Chapter 48, Education Code, as added by this Act, redesignated as
 Section 48.301, Education Code, and amended to read as follows:
6042             86th LEGISLATURE — REGULAR SESSION

       Sec.i48.301ii[42.4101].iiADDITIONAL ASSISTANCE FOR DISTRICTS
 WITH STUDENTS USING PUBLIC EDUCATION GRANTS. (a) A district is
 entitled to additional assistance under this section as provided by Section
 29.203(c).
       (b)iiThe amount of additional assistance under this section is computed by
 subtracting the number of students residing in the district and using public
 education grants to attend school in another district for the year in which the
 assistance is granted from the number of students using public education grants to
 attend school in the district for that year and multiplying the difference by $266.
       [(c)iiIf a district to which this section applies is entitled to the maximum
 amount of assistance under Section 42.406, the maximum is increased by the
 amount of additional assistance to which the district is entitled under this section.]
       SECTIONi1.046.iiSubchapter G, Chapter 48, Education Code, as added by
 this Act, is amended by adding Section 48.302 to read as follows:
       Sec.i48.302.iiSUBSIDY FOR HIGH SCHOOL EQUIVALENCY
 EXAMINATION FOR CERTAIN INDIVIDUALS. (a) In this section,
 "commission" means the Texas Workforce Commission.
       (b)iiThe agency shall enter into a memorandum of understanding with the
 commission for the agency to transfer to the commission funds specifically
 appropriated to the agency for the commission to provide to an individual who is
 21 years of age or older a subsidy in an amount equal to the cost of taking one
 high school equivalency examination administered under Section 7.111.
       (c)iiThe commission shall adopt rules to implement the subsidy program
 described by Subsection (b), including rules regarding eligibility requirements.
       SECTIONi1.047.iiSubtitle I, Title 2, Education Code, is amended by adding
 Chapter 49, and a heading is added to that chapter to read as follows:
  CHAPTER 49. OPTIONS FOR LOCAL REVENUE LEVELS IN EXCESS OF
                                    ENTITLEMENT
       SECTIONi1.048.iiChapter 49, Education Code, as added by this Act, is
 amended by adding Subchapter A, and a heading is added to that subchapter to
 read as follows:
                     SUBCHAPTER A. GENERAL PROVISIONS
       SECTIONi1.049.iiSections 41.001, 41.003, 41.0031, 41.004, 41.005,
 41.006, 41.007, 41.008, 41.009, 41.010, 41.011, 41.012, and 41.013, Education
 Code, are transferred to Subchapter A, Chapter 49, Education Code, as added by
 this Act, redesignated as Sections 49.001, 49.002, 49.003, 49.004, 49.005,
 49.006, 49.007, 49.008, 49.009, 49.010, 49.011, 49.012, and 49.013, Education
 Code, and amended to read as follows:
       Sec.i49.001ii[41.001].iiDEFINITIONS. In this chapter:
            (1)ii"Local revenue [Equalized wealth] level in excess of entitlement"
 means local revenue levels that exceed the levels [the wealth per student]
 provided by Section 48.257 [41.002].
            (2)ii["Wealth per student" means the taxable value of property, as
 determined under Subchapter M, Chapter 403, Government Code, divided by the
 number of students in weighted average daily attendance.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6043

             [(3)]ii"Weighted average daily attendance" has the meaning assigned by
 Section 48.202 [42.302].
       Sec.i49.002ii[41.003].iiOPTIONS TO REDUCE LOCAL REVENUE
 [ACHIEVE EQUALIZED WEALTH] LEVEL. A district with a local revenue
 level in excess of entitlement [wealth per student that exceeds the equalized
 wealth level] may take any combination of the following actions to reduce the
 district ’s revenue level [achieve the equalized wealth level]:
             (1)iiconsolidation with another district as provided by Subchapter B;
             (2)iidetachment of territory as provided by Subchapter C;
             (3)iipurchase of average daily attendance credit as provided by
 Subchapter D;
             (4)iieducation of nonresident students as provided by Subchapter E; or
             (5)iitax base consolidation with another district as provided by
 Subchapter F.
       Sec.i49.003ii[41.0031].iiINCLUSION OF ATTENDANCE CREDIT
 [CREDITS] AND NONRESIDENTS IN WEIGHTED AVERAGE DAILY
 ATTENDANCE. In determining whether a school district has a local revenue
 [wealth per student less than or equal to the equalized wealth] level in excess of
 entitlement, the commissioner shall use:
             (1)iithe district ’s final weighted average daily attendance; and
             (2)iithe amount [number] of attendance credit [credits] a district
 purchases under Subchapter D or the number of nonresident students a district
 educates under Subchapter E for a school year.
       Sec.i49.004ii[41.004].iiANNUAL REVIEW OF LOCAL REVENUES
 [PROPERTY WEALTH]. (a) Not later than July 15 of each year, using the
 estimates [estimate] of enrollment and taxable property value under Section
 48.269i[42.254], the commissioner shall review the local revenue level [wealth
 per student] of school districts in the state and shall notify:
             (1)iieach district with a local revenue level in excess of entitlement
 [wealth per student exceeding the equalized wealth level];
             (2)iieach district to which the commissioner proposes to annex property
 detached from a district notified under Subdivision (1), if necessary, under
 Subchapter G; and
             (3)iieach district to which the commissioner proposes to consolidate a
 district notified under Subdivision (1), if necessary, under Subchapter H.
       (b)iiIf, before the dates provided by this subsection, a district notified under
 Subsection (a)(1) has not successfully exercised one or more options under
 Section 49.002 [41.003] that reduce the district ’s local revenue level [wealth per
 student] to a level equal to or less than the [equalized wealth] level established
 under Section 48.257, the commissioner shall order the detachment of property
 from that district as provided by Subchapter G. If that detachment will not reduce
 the district ’s local revenue level [wealth per student] to a level equal to or less
 than the [equalized wealth] level established under Section 48.257, the
 commissioner may not detach property under Subchapter G but shall order the
 consolidation of the district with one or more other districts as provided by
 Subchapter H. An agreement under Section 49.002(1) [41.003(1)] or (2) must be
6044            86th LEGISLATURE — REGULAR SESSION

 executed not later than September 1 immediately following the notice under
 Subsection (a). An election for an option under Section 49.002(3) [41.003(3)],
 (4), or (5) must be ordered before September 1 immediately following the notice
 under Subsection (a).
       (c)iiA district notified under Subsection (a) may not adopt a tax rate for the
 tax year in which the district receives the notice until the commissioner certifies
 that the district has reduced the district ’s local revenue level in excess of
 entitlement to the [achieved the equalized wealth] level established under Section
 48.257.
       (d)iiA detachment and annexation or consolidation under this chapter:
            (1)iiis effective for Foundation School Program funding purposes for
 the school year that begins in the calendar year in which the detachment and
 annexation or consolidation is agreed to or ordered; and
            (2)iiapplies to the ad valorem taxation of property beginning with the
 tax year in which the agreement or order is effective.
       Sec.i49.005ii[41.005].iiCOMPTROLLER AND APPRAISAL DISTRICT
 COOPERATION. The chief appraiser of each appraisal district and the
 comptroller shall cooperate with the commissioner and school districts in
 implementing this chapter.
       Sec.i49.006ii[41.006].iiRULES. (a) The commissioner may adopt rules
 necessary for the implementation of this chapter. The rules may provide for the
 commissioner to make necessary adjustments to the provisions of Chapter 48
 [42], including providing for the commissioner to make an adjustment in the
 funding element established by Section 48.202 [42.302], at the earliest date
 practicable, to the amount the commissioner believes, taking into consideration
 options exercised by school districts under this chapter and estimates of student
 enrollments, will match appropriation levels.
       (b)iiAs necessary for the effective and efficient administration of this
 chapter, the commissioner may modify effective dates and time periods for
 actions described by this chapter.
       Sec.i49.007ii[41.007].iiCOMMISSIONER TO APPROVE SUBSEQUENT
 BOUNDARY CHANGES. A school district that is involved in an action under
 this chapter that results in boundary changes to the district or in the consolidation
 of tax bases is subject to consolidation, detachment, or annexation under Chapter
 13 only if the commissioner certifies that the change under Chapter 13 will not
 result in a district with a local revenue [wealth per student that exceeds the
 equalized wealth] level in excess of entitlement.
       Sec.i49.008ii[41.008].iiHOMESTEAD EXEMPTIONS. (a) The governing
 board of a school district that results from consolidation under this chapter,
 including a consolidated taxing district under Subchapter F, for the tax year in
 which the consolidation occurs may determine whether to adopt a homestead
 exemption provided by Section 11.13, Tax Code, and may set the amount of the
 exemption, if adopted, at any time before the school district adopts a tax rate for
 that tax year. This section applies only to an exemption that the governing board
 of a school district is authorized to adopt or change in amount under Section
 11.13, Tax Code.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6045

       (b)iiThis section prevails over any inconsistent provision of Section 11.13,
 Tax Code, or other law.
       Sec.i49.009i[41.009].iiTAX ABATEMENTS. (a) A tax abatement
 agreement executed by a school district that is involved in consolidation or in
 detachment and annexation of territory under this chapter is not affected and
 applies to the taxation of the property covered by the agreement as if executed by
 the district within which the property is included.
       (b)iiThe commissioner shall determine the local revenue [wealth per student]
 of a school district under this chapter as if any tax abatement agreement executed
 by a school district on or after May 31, 1993, had not been executed.
       Sec.i49.010i[41.010].iiTAX INCREMENT OBLIGATIONS. The payment
 of tax increments under Chapter 311, Tax Code, is not affected by the
 consolidation of territory or tax bases or by annexation under this chapter. In each
 tax year a school district paying a tax increment from taxes on property over
 which the district has assumed taxing power is entitled to retain the same
 percentage of the tax increment from that property that the district in which the
 property was located before the consolidation or annexation could have retained
 for the respective tax year.
       Sec.i49.011i[41.011].iiCONTINGENCY. (a) If any of the options described
 by Section 49.002 [41.003] as applied to a school district are held invalid by a
 final decision of a court of competent jurisdiction, a school district is entitled to
 exercise any of the remaining valid options in accordance with a schedule
 approved by the commissioner.
       (b)iiIf a final order of a court of competent jurisdiction should hold each of
 the options provided by Section 49.002 [41.003] invalid, the commissioner shall
 act under Subchapter G or H to reduce the local revenue [achieve the equalized
 wealth] level in excess of entitlement only after notice and hearing is afforded to
 each school district affected by the order. The commissioner shall adopt a plan
 that least disrupts the affected school districts. If because the exigency to adopt a
 plan prevents the commissioner from giving a reasonable time for notice and
 hearing, the commissioner shall timely give notice to and hold a hearing for the
 affected school districts, but in no event less than 30 days from time of notice to
 the date of hearing.
       (c)iiIf a final order of a court of competent jurisdiction should hold an option
 provided by Section 49.002 [41.003] invalid and order a refund to a district of
 any amounts paid by a district choosing that option, the amount shall be refunded
 but held in reserve and not expended by the district until released by order of the
 commissioner. The commissioner shall order the release immediately on the
 commissioner ’s determination that, through one of the means provided by law,
 the district has reduced the district ’s local revenue level in excess of entitlement
 to the [achieved the equalized wealth] level established under Section 48.257.
 The amount released shall be deducted from any state aid payable to the district
 according to a schedule adopted by the commissioner.
6046            86th LEGISLATURE — REGULAR SESSION

       Sec.i49.012i[41.012].iiDATE OF ELECTIONS. An election under this
 chapter for voter approval of an agreement entered by the board of trustees shall
 be held on a Tuesday or Saturday not more than 45idays after the date of the
 agreement. Section 41.001, Election Code, does not apply to the election.
       Sec.i49.013i[41.013].iiPROCEDURE. (a) Except as provided by Subchapter
 G, a decision of the commissioner under this chapter is appealable under Section
 7.057.
       (b)iiAny order of the commissioner issued under this chapter shall be given
 immediate effect and may not be stayed or enjoined pending any appeal.
       (c)iiChapter 2001, Government Code, does not apply to a decision of the
 commissioner under this chapter.
       (d)iiOn the request of the commissioner, the secretary of state shall publish
 any rules adopted under this chapter in the Texas Register and the Texas
 Administrative Code.
       SECTIONi1.050.iiSubchapter B, Chapter 41, Education Code, is transferred
 to Chapter 49, Education Code, as added by this Act, redesignated as Subchapter
 B, Chapter 49, Education Code, and amended to read as follows:
              SUBCHAPTER B. CONSOLIDATION BY AGREEMENT
       Sec.i49.051i[41.031].iiAGREEMENT. The governing boards of any two or
 more school districts may consolidate the districts by agreement in accordance
 with this subchapter to establish a consolidated district with a local revenue level
 [wealth per student] equal to or less than the [equalized wealth] level established
 under Section 48.257. The agreement is not effective unless the commissioner
 certifies that the consolidated district, as a result of actions taken under this
 chapter, will have a local revenue level [wealth per student] equal to or less than
 the [equalized wealth] level established under Section 48.257.
       Sec.i49.052i[41.032].iiGOVERNING LAW. Except to the extent modified
 by the terms of the agreement, the consolidated district is governed by the
 applicable provisions of Subchapter D, Chapter 13, other than a provision
 requiring consolidating districts to be contiguous. The agreement may not be
 inconsistent with the requirements of this subchapter.
       Sec.i49.053i[41.033].iiGOVERNANCE PLAN. (a) The agreement among
 the consolidating districts may include a governance plan designed to preserve
 community-based and site-based decision making within the consolidated district,
 including the delegation of specific powers of the governing board of the district
 other than the power to levy taxes, including a provision authorized by Section
 13.158(b).
       (b)iiThe governance plan may provide for a transitional board of trustees
 during the first year after consolidation, but beginning with the next year the
 board of trustees must be elected from within the boundaries of the consolidated
 district. If the consolidating districts elect trustees from single-member districts,
 the consolidated district must adopt a plan to elect its board of trustees from
 single-member districts.
       Sec.i49.054i[41.034].iiINCENTIVE AID. (a) For the first and second school
 years after creation of a consolidated district under this subchapter, the
 commissioner shall adjust allotments to the consolidated district to the extent
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6047

 necessary to preserve the effects of an adjustment under Section 48.052i[42.102,
 42.103, or 42.105] to which either of the consolidating districts would have been
 entitled but for the consolidation.
       (b)iiExcept as provided by Subsection (c), a district receiving incentive aid
 payments under this section is not entitled to incentive aid under Subchapter G,
 Chapter 13.
       (c)iiFour or more districts that consolidate into one district under this
 subchapter within a period of one year may elect to receive incentive aid under
 this section or to receive incentive aid for not more than five years under
 Subchapter G, Chapter 13. Incentive aid under this subsection may not provide
 the consolidated district with more revenue in state and local funds than the
 district would receive at the [equalized wealth] level established under Section
 48.257.
       SECTIONi1.051.iiSubchapter C, Chapter 41, Education Code, is transferred
 to Chapter 49, Education Code, as added by this Act, redesignated as Subchapter
 C, Chapter 49, Education Code, and amended to read as follows:
  SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT
       Sec.i49.101i[41.061].iiAGREEMENT. (a) By agreement of the governing
 boards of two school districts, territory may be detached from one of the districts
 and annexed to the other district if, after the action:
            (1)iithe local revenue level [wealth per student] of the district from
 which territory is detached is equal to or less than the [equalized wealth] level
 established under Section 48.257; and
            (2)iithe local revenue level [wealth per student] of the district to which
 territory is annexed is not greater than the dollar amount guaranteed level of
 [greatest level for which] funds [are] provided under Section 48.202(a-1)(2)
 [Subchapter F, Chapter 42].
       (b)iiThe agreement is not effective unless the commissioner certifies that,
 after all actions taken under this chapter, the local revenue level [wealth per
 student] of each district involved will be equal to or less than the applicable level
 permitted by Subsection (a).
       Sec.i49.102i[41.062].iiGOVERNING LAW. Except to the extent of any
 conflict with this chapter and except for any requirement that detached property
 must be annexed to a school district that is contiguous to the detached territory,
 the annexation and detachment is governed by Chapter 13.
       Sec.i49.103i[41.063].iiALLOCATION OF APPRAISED VALUE OF
 DIVIDED UNIT. If portions of a parcel or other item of property are located in
 different school districts as a result of a detachment and annexation under this
 subchapter, the parcel or other item of property shall be appraised for taxation as
 a unit, and the agreement shall allocate the taxable value of the property between
 the districts.
       Sec.i49.104i[41.064].iiALLOCATION OF INDEBTEDNESS. The
 annexation agreement may allocate to the receiving district any portion of the
 indebtedness of the district from which the territory is detached, and the receiving
 district assumes and is liable for the allocated indebtedness.
6048            86th LEGISLATURE — REGULAR SESSION

       Sec.i49.105i[41.065].iiNOTICE. As soon as practicable after the agreement
 is executed, the districts involved shall notify each affected property owner and
 the appraisal district in which the affected property is located.
       SECTIONi1.052.iiChapter 49, Education Code, as added by this Act, is
 amended by adding Subchapter D, and a heading is added to that subchapter to
 read as follows:
            SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT
       SECTIONi1.053.iiSections 41.091, 41.092, 41.093, 41.094, 41.095, 41.096,
 41.097, and 41.099, Education Code, are transferred to Subchapter D, Chapter
 49, Education Code, as added by this Act, redesignated as Sections 49.151,
 49.152, 49.153, 49.154, 49.155, 49.156, 49.157, and 49.158, Education Code,
 and amended to read as follows:
       Sec.i49.151i[41.091].iiAGREEMENT. A school district with a local revenue
 [wealth per student that exceeds the equalized wealth] level in excess of
 entitlement may execute an agreement with the commissioner to purchase
 attendance credit [credits] in an amount sufficient, in combination with any other
 actions taken under this chapter, to reduce the district ’s local revenue level
 [wealth per student] to a level that is equal to or less than the [equalized wealth]
 level established under Section 48.257.
       Sec.i49.152i[41.092].iiCREDIT. The amount of [(a) For each] credit
 purchased decreases the dollar amount of a district ’s local revenue level[, the
 weighted average daily attendance of the purchasing school district is increased
 by one student in weighted average daily attendance] for purposes of determining
 whether the district exceeds the [equalized wealth] level established under
 Section 48.257.
       [(b)iiA credit is not used in determining a school district ’s scholastic
 population, average daily attendance, or weighted average daily attendance for
 purposes of Chapter 42 or 43.]
       Sec.i49.153i[41.093].iiCOST. (a) The total [Subject to Subsection (b-1), the]
 cost of [each] credit is the [an] amount [equal to the greater of:
            [(1)iithe amount] of the district ’s maintenance and operations tax
 revenue that exceeds the level established under Section 48.257 [per student in
 weighted average daily attendance for the school year for which the contract is
 executed; or
            [(2)iithe amount of the statewide district average of maintenance and
 operations tax revenue per student in weighted average daily attendance for the
 school year preceding the school year for which the contract is executed].
       (b)iiFor purposes of this section, a school district ’s maintenance and
 operations tax revenue does not include any amounts paid into a tax increment
 fund under Chapter 311, Tax Code.
       [(b-1)iiIf the guaranteed level of state and local funds per weighted student
 per cent of tax effort under Section 42.302(a-1)(1) for which state funds are
 appropriated for a school year is an amount at least equal to the amount of
 revenue per weighted student per cent of tax effort available to the Austin
 Independent School District, as determined by the commissioner in cooperation
 with the Legislative Budget Board, the commissioner, in computing the amounts
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6049

 described by Subsections (a)(1) and (2) and determining the cost of an attendance
 credit, shall exclude maintenance and operations tax revenue resulting from the
 tax rate described by Section 41.002(a)(2).]
       (c)iiThe cost of [an] attendance credit for a school district is computed using
 the final tax collections of the district.
       Sec.i49.154i[41.094].iiPAYMENT. (a) A school district shall pay for credit
 [credits] purchased:
            (1)iiin equal monthly payments as determined by the commissioner
 beginning February 15 and ending August 15 of the school year for which the
 agreement is in effect; or
            (2)iiin one payment for the total amount required to be paid by the
 district not later than August 15 of the school year for which the agreement is in
 effect.
       (a-1)iiIf a school district elects to pay for credit purchased in the manner
 provided by Subsection (a)(2), the district must notify the commissioner not later
 than February 15 of the school year for which the agreement is in effect.
       (b)iiReceipts shall be deposited in the state treasury and may be used only
 for foundation school program purposes.
       Sec.i49.155i[41.095].iiDURATION. An agreement under this section is
 valid for one school year and, subject to Section 49.156 [41.096], may be
 renewed annually.
       Sec.i49.156i[41.096].iiVOTER APPROVAL. (a) After first executing an
 agreement under this section, the board of trustees shall order and conduct an
 election, in the manner provided by Sections 13.003(d)-(g), to obtain voter
 approval of the agreement.
       (b)iiThe ballot shall be printed to permit voting for or against the
 proposition: "Authorizing the board of trustees of ________ School District to
 purchase attendance credit [credits] from the state with local tax revenues."
       (c)iiThe proposition is approved if the proposition receives a favorable vote
 of a majority of the votes cast. If the proposition is approved, the agreement
 executed by the board is ratified, and the board has continuing authority to
 execute agreements under this subchapter on behalf of the district without further
 voter approval.
       Sec.i49.157i[41.097].iiCREDIT FOR APPRAISAL COSTS. [(a)] The total
 amount required under Section 49.153 [41.093] for a district to purchase
 attendance credit [credits] under this subchapter for any school year is reduced by
 an amount equal to the product of the district ’s total costs under Section 6.06, Tax
 Code, for the appraisal district or districts in which it participates multiplied by a
 percentage that is computed by dividing the total amount required under Section
 49.153 [41.093] by the total amount of taxes imposed in the district for that year
 less any amounts paid into a tax increment fund under Chapter 311, Tax Code.
       [(b)iiA school district is entitled to a reduction under Subsection (a)
 beginning with the 1996-1997 school year. For that school year, the reduction to
 which a district is entitled is the sum of the amounts computed under Subsection
 (a) for the 1993-1994, 1994-1995, 1995-1996, and 1996-1997 school years. If
 that amount exceeds the total amount required under Section 41.093 for the
6050             86th LEGISLATURE — REGULAR SESSION

 1996-1997 school year, the difference is carried forward and the total amount
 required under Section 41.093 is reduced each subsequent school year until the
 total amount of the credit has been applied to such reductions.]
       Sec.i49.158i[41.099].iiLIMITATION. (a) Sections 49.154iand
 49.157i[41.002(e), 41.094, 41.097, and 41.098] apply only to a district that:
            (1)iiexecutes an agreement to purchase [all] attendance credit [credits]
 necessary to reduce the district ’s local revenue [wealth per student to the
 equalized wealth] level to the level established under Section 48.257;
            (2)iiexecutes an agreement to purchase attendance credit [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)iiexecutes an agreement under Subchapter E to contract for the
 education of nonresident students:
                 (A)iito an extent that does not provide more than 10 percent of the
 reduction in local revenue [wealth per student] required for the district to achieve
 a local revenue level [wealth per student] that is equal to or less than the
 [equalized wealth] level established under Section 48.257; and
                 (B)iiunder 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.
       (b)iiA district that executes an agreement under Subsection (a)(3) must pay
 full market value for any good or service the district obtains through the
 consortium.
       SECTIONi1.054.iiChapter 49, Education Code, as added by this Act, is
 amended by adding Subchapter E, and a heading is added to that subchapter to
 read as follows:
         SUBCHAPTER E. EDUCATION OF NONRESIDENT STUDENTS
       SECTIONi1.055.iiSections 41.121, 41.122, and 41.123, Education Code,
 are transferred to Subchapter E, Chapter 49, Education Code, as added by this
 Act, redesignated as Sections 49.201, 49.202, and 49.203, Education Code, and
 amended to read as follows:
       Sec.i49.201i[41.121].iiAGREEMENT. [(a)] The board of trustees of a
 district with a local revenue [wealth per student that exceeds the equalized
 wealth] level in excess of entitlement may execute an agreement to educate the
 students of another district in a number that, when the weighted average daily
 attendance of the students served is added to the weighted average daily
 attendance of the contracting district, is sufficient, in combination with any other
 actions taken under this chapter, to reduce the district ’s local revenue level
 [wealth per student] to a level that is equal to or less than the [equalized wealth]
 level established under Section 48.257.iiThe agreement is not effective unless the
 commissioner certifies that the transfer of weighted average daily attendance will
 not result in any of the contracting districts ’ local revenue level [wealth per
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6051

 student] being greater than the [equalized wealth] level established under Section
 48.257 and that the agreement requires an expenditure per student in weighted
 average daily attendance that is at least equal to the amount per student in
 weighted average daily attendance required under Section 49.153 [41.093].
       Sec.i49.202i[41.122].iiVOTER APPROVAL. (a) After first executing an
 agreement under this subchapter other than an agreement under Section
 49.205i[41.125], the board of trustees of the district that will be educating
 nonresident students shall order and conduct an election, in the manner provided
 by Sections 13.003(d)-(g), to obtain voter approval of the agreement.
       (b)iiThe ballot shall be printed to permit voting for or against the
 proposition: "Authorizing the board of trustees of ________ School District to
 educate students of other school districts with local tax revenues."
       (c)iiThe proposition is approved if the proposition receives a favorable vote
 of a majority of the votes cast. If the proposition is approved, the agreement
 executed by the board is ratified, and the board has continuing authority to
 execute agreements under this subchapter on behalf of the district without further
 voter approval.
       Sec.i49.203i[41.123].iiWADA COUNT. For purposes of Chapter 48 [42],
 students served under an agreement under this subchapter are counted only in the
 weighted average daily attendance of the district providing the services, except
 that students served under an agreement authorized by Section 49.205 [41.125]
 are counted in a manner determined by the commissioner.
       SECTIONi1.056.iiSection 41.124, Education Code, as amended by
 Chapters 581 (SBi810) and 705 (HBi3526), Acts of the 85th Legislature, Regular
 Session, 2017, is transferred to Subchapter E, Chapter 49, Education Code, as
 added by this Act, redesignated as Section 49.204, Education Code, and
 reenacted and amended to read as follows:
       Sec.i49.204i[41.124].iiTRANSFERS. (a) The board of trustees of a school
 district with a local revenue [wealth per student that exceeds the equalized
 wealth] level in excess of entitlement may reduce the district ’s local revenue level
 [wealth per student] by serving nonresident students who transfer to the district
 and are educated by the district but who are not charged tuition. A district that
 exercises the option under this subsection is not required to execute an agreement
 with the school district in which a transferring student resides and must certify to
 the commissioner that the district has not charged or received tuition for the
 transferring students.
       (b)ii[A school district with a wealth per student that exceeds the equalized
 wealth level that pays tuition to another school district for the education of
 students that reside in the district may apply the amount of tuition paid toward the
 cost of the option chosen by the district to reduce its wealth per student. The
 amount applied under this subsection may not exceed the amount determined
 under Section 41.093ias the cost of an attendance credit for the district. The
 commissioner may require any reports necessary to document the tuition
 payments.
6052            86th LEGISLATURE — REGULAR SESSION

       [(c)]iiA school district that receives tuition for a student from a school
 district with a local revenue [wealth per student that exceeds the equalized
 wealth] level in excess of entitlement may not claim attendance for that student
 for purposes of Chapters [42iand] 46iand 48iand the instructional materials and
 technology allotment under Section 31.0211.
       SECTIONi1.057.iiSection 41.125, Education Code, is transferred to
 Subchapter E, Chapter 49, Education Code, as added by this Act, redesignated as
 Section 49.205, Education Code, and amended to read as follows:
       Sec.i49.205i[41.125].iiCAREER AND TECHNOLOGY EDUCATION
 PROGRAMS. (a) The board of trustees of a school district with a local revenue
 [wealth per student that exceeds the equalized wealth] level in excess of
 entitlement may reduce the district ’s local revenue level [wealth per student] by
 executing an agreement to provide students of one or more other districts with
 career and technology education through a program designated as an area
 program for career and technology education.
       (b)iiThe agreement is not effective unless the commissioner certifies that:
            (1)iiimplementation of the agreement will not result in any of the
 affected districts ’ local revenue level [wealth per student] being greater than the
 [equalized wealth] level established under Section 48.257; and
            (2)iithe agreement requires the district with a local revenue [wealth per
 student that exceeds the equalized wealth] level in excess of entitlement to make
 expenditures benefiting students from other districts in an amount at least equal to
 the amount that would be required for the district to purchase [the number of]
 attendance credit [credits] under Subchapter D necessary, in combination with
 any other actions taken under this chapter other than an action under this section,
 to reduce the district ’s local revenue level [wealth per student] to a level that is
 equal to or less than the [equalized wealth] level established under Section
 48.257.
       SECTIONi1.058.iiSubchapter F, Chapter 41, Education Code, is transferred
 to Chapter 49, Education Code, as added by this Act, redesignated as Subchapter
 F, Chapter 49, Education Code, and amended to read as follows:
                  SUBCHAPTER F. TAX BASE CONSOLIDATION
       Sec.i49.251i[41.151].iiAGREEMENT. The board of trustees of two or more
 school districts may execute an agreement to conduct an election on the creation
 of a consolidated taxing district for the maintenance and operation of the
 component school districts. The agreement is subject to approval by the
 commissioner. The agreement is not effective unless the commissioner certifies
 that the consolidated taxing district will have a local revenue level [wealth per
 student] equal to or less than the [equalized wealth] level established under
 Section 48.257 after all actions taken under this chapter.
       Sec.i49.252i[41.152].iiDATE OF ELECTION. Any agreement under this
 subchapter must provide for the ordering of an election to be held on the same
 date in each district.
       Sec.i49.253i[41.153].iiPROPOSITION. (a) The ballot shall be printed to
 permit voting for or against the proposition: "Creation of a consolidated taxing
 district composed of the territory of _________________________ school
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6053

 districts, and authorizing the levy, assessment, and collection of annual ad
 valorem taxes for the maintenance of the public free schools within that taxing
 district at a rate not to exceed $_________ on the $100 valuation of taxable
 property."
       (b)iiThe rate to be included in the proposition shall be provided by the
 agreement among the districts but may not exceed the maximum rate provided by
 law for independent school districts.
       Sec.i49.254i[41.154].iiAPPROVAL. The proposition is approved only if the
 proposition receives a favorable vote of the majority of the votes cast within each
 participating school district.
       Sec.i49.255i[41.155].iiCONSOLIDATED TAXING DISTRICT. A
 consolidated taxing district is a school district established for the limited purpose
 of exercising the taxing power authorized by Section 3, Article VII, Texas
 Constitution, and distributing the revenue to its component school districts.
       Sec.i49.256i[41.156].iiGOVERNANCE. (a) The consolidated taxing district
 is governed by the boards of the component school districts acting jointly.
       (b)iiAny action taken by the joint board must receive a favorable vote of a
 majority of each component district ’s board of trustees.
       Sec.i49.257i[41.157].iiMAINTENANCE TAX. (a) The joint board shall
 levy a maintenance tax for the benefit of the component school districts not later
 than September 1 of each year or as soon thereafter as practicable.
       (b)iiEach component district shall bear a share of the costs of assessing and
 collecting taxes in proportion to the component district ’s share of weighted
 average daily attendance in the consolidated taxing district.
       (c)iiA component district may not levy an ad valorem tax for the
 maintenance and operation of the schools.
       (d)iiNotwithstanding Section 45.003, the consolidated taxing district may
 levy, assess, and collect a maintenance tax for the benefit of the component
 districts at a rate that exceeds $1.50 per $100 valuation of taxable property to the
 extent necessary to pay contracted obligations on the lease purchase of permanent
 improvements to real property entered into on or before May 12, 1993. The
 proposition to impose taxes at the necessary rate must be submitted to the voters
 in the manner provided by Section 45.003.
       Sec.i49.258i[41.158].iiREVENUE DISTRIBUTION. The consolidated
 taxing district shall distribute maintenance tax revenue to the component districts
 on the basis of the number of students in weighted average daily attendance in the
 component districts.
       Sec.i49.259i[41.159].iiTAXES OF COMPONENT DISTRICTS. (a) The
 governing board of a component school district of a consolidated taxing district
 that has consolidated for maintenance and operation purposes only may issue
 bonds and levy, pledge, and collect ad valorem taxes within that component
 district sufficient to pay the principal of and interest on those bonds as provided
 by Chapter 45.
6054             86th LEGISLATURE — REGULAR SESSION

       (b)iiA component district levying an ad valorem tax under this section or
 Section 49.260(b)(1) [41.160(b)(1)] is entitled to the guaranteed yield provided
 by Subchapter E [F], Chapter 48 [42], for that portion of its tax rate that, when
 added to the maintenance tax levied by the consolidated taxing unit, does not
 exceed the limitation provided by Section 48.203 [42.303].
       S e c . i 4 9 . 2 6 0 i [ 4 1 . 1 6 0 ] . i i O P T I O N A L T O TA L TA X B A S E
 CONSOLIDATION. (a) An agreement executed under Section 49.251 [41.151]
 may provide for total tax base consolidation instead of consolidation for
 maintenance and operation purposes only.
       (b)iiUnder an agreement providing for total tax base consolidation:
            (1)iithe component districts may not levy maintenance or bond taxes,
 except to the extent necessary to retire bonds and other obligations issued before
 the effective date of the consolidation;
            (2)iithe joint board may issue bonds and levy, pledge, and collect ad
 valorem taxes sufficient to pay the principal of and interest on those bonds, and
 issue refunding bonds, as provided by Chapter 45ifor independent school
 districts; and
            (3)iito the end of the ballot proposition required under Section 49.253(a)
 [41.153(a)] shall be added ", and further to create a consolidated tax base for the
 repayment of all bonded indebtedness issued by the joint board of the taxing
 district after the effective date of the consolidation and to authorize the joint
 board to levy, pledge, and collect ad valorem taxes at a rate sufficient to pay the
 principal of and interest on those bonds."
       (c)iiUnder an agreement providing for total tax base consolidation:
            (1)iithe component districts may provide for the consolidated taxing
 district to assume all of the indebtedness of all component districts; and
            (2)iito the end of the ballot proposition required by Section 49.253(a)
 [41.153(a)] shall be added ", and further to create a consolidated tax base for the
 repayment of all bonded indebtedness issued by the joint board of the taxing
 district or previously issued by the component school districts and to authorize
 the joint board to levy, pledge, and collect ad valorem taxes at a rate sufficient to
 pay the principal of and interest on those bonds."
       SECTIONi1.059.iiSubchapter G, Chapter 41, Education Code, is transferred
 to Chapter 49, Education Code, as added by this Act, redesignated as Subchapter
 G, Chapter 49, Education Code, and amended to read as follows:
            SUBCHAPTER G. DETACHMENT AND ANNEXATION BY
                                           COMMISSIONER
       Sec.i49.301ii[41.201].iiDEFINITION. In this subchapter, "mineral property"
 means a real property mineral interest that has been severed from the surface
 estate by a mineral lease creating a determinable fee or by a conveyance that
 creates an interest taxable separately from the surface estate. A mineral property
 includes each royalty interest, working interest, or other undivided interest in the
 mineral property.
       Sec.i49.302ii[41.202].iiDETERMINATION OF TAXABLE VALUE. (a)
 For purposes of this subchapter, the taxable value of an individual parcel or other
 item of property and the total taxable value of property in a school district
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6055

 resulting from the detachment of property from or annexation of property to that
 district is determined by applying the appraisal ratio for the appropriate category
 of property determined under Subchapter M, Chapter 403, Government Code, for
 the preceding tax year to the taxable value of the detached or annexed property
 determined under Title 1, Tax Code, for the preceding tax year.
       (b)iiFor purposes of this subchapter, the taxable value of all or a portion of a
 parcel or item of real property includes the taxable value of personal property
 having taxable situs at the same location as the real property.
       Sec.i49.303ii[41.203].iiPROPERTY SUBJECT TO DETACHMENT AND
 ANNEXATION. (a) Only the following property may be detached and annexed
 under this subchapter:
            (1)iia mineral property;
            (2)iireal property used in the operation of a public utility, including a
 pipeline, pipeline gathering system, or railroad or other rail system; and
            (3)iireal property used primarily for industrial or other commercial
 purposes, other than property used primarily for agriculture or for residential
 purposes.
       (b)iiIf a final judgment of a court determines that a mineral interest may not
 be annexed and detached as provided by this subchapter without an attendant
 annexation and detachment of the surface estate or any other interest in the same
 land, the detachment and annexation of a mineral interest under this subchapter
 includes the surface estate and each other interest in the land covered by the
 mineral interest.
       Sec.i49.304ii[41.204].iiTAXATION OF PERSONAL PROPERTY. Personal
 property having a taxable situs at the same location as real property detached and
 annexed under this subchapter is taxable by the school district to which the real
 property is annexed.
       Sec.i49.305ii[41.205].iiDETACHMENT OF PROPERTY. (a) The
 commissioner shall detach property under this section from each school district
 from which the commissioner is required under Section 49.004 [41.004] to
 detach property under this subchapter.
       (b)iiThe commissioner shall detach from each school district covered by
 Subsection (a) one or more whole parcels or items of property in descending
 order of the taxable value of each parcel or item, beginning with the parcel or
 item having the greatest taxable value, until the school district ’s local revenue
 level [wealth per student] is equal to or less than the [equalized wealth] level
 established under Section 48.257, except as otherwise provided by Subsection
 (c).
       (c)iiIf the detachment of whole parcels or items of property [,] as provided
 by Subsection (a) would result in a district ’s local revenue level [wealth per
 student] that is less than the [equalized wealth] level established under Section
 48.257 by more than the product of $10,000imultiplied by weighted average
 daily attendance, the commissioner may not detach the last parcel or item of
 property and shall detach the next one or more parcels or items of property in
 descending order of taxable value that would result in the school district having a
6056             86th LEGISLATURE — REGULAR SESSION

 local revenue level [wealth per student] that is equal to or less than the [equalized
 wealth] level established under Section 48.257 by not more than the product of
 $10,000imultiplied by weighted average daily attendance.
       (d)iiNotwithstanding Subsections (a), (b), and (c), the commissioner may
 detach only a portion of a parcel or item of property if:
            (1)iiit is not possible under this subchapter to reduce the district ’s local
 revenue level [wealth per student] to a level that is equal to or less than the
 [equalized wealth] level established under Section 48.257 [this subchapter] unless
 some or all of the parcel or item of property is detached and the detachment of the
 whole parcel or item would result in the district from which it is detached having
 a local revenue level [wealth per student] that is less than the [equalized wealth]
 level established under Section 48.257 by more than the product of
 $10,000imultiplied by weighted average daily attendance; or
            (2)iithe commissioner determines that a partial detachment of that parcel
 or item of property is preferable to the detachment of one or more other parcels or
 items having a lower taxable value in order to minimize the number of parcels or
 items of property to be detached consistent with the purposes of this chapter.
       Sec.i49.306ii[41.206].iiANNEXATION OF PROPERTY. (a) The
 commissioner shall annex property detached under Section 49.305 [41.205] to
 school districts eligible for annexation in accordance with this section. A school
 district is eligible for annexation of property to it under this subchapter only if,
 before any detachments or annexations are made in a year, the district ’s taxable
 value of property does not exceed the value necessary to generate maintenance
 and operations tax revenue in the amount equal to the district ’s entitlement under
 Section 48.202(a-1)(2) [wealth per student is less than the greatest level for which
 funds are provided under Subchapter F, Chapter 42].
       (b)iiProperty may be annexed to a school district without regard to whether
 the property is contiguous to other property in that district.
       (c)iiThe commissioner shall annex property detached from school districts
 beginning with the property detached from the school district with the greatest
 local revenue level in excess of entitlement [wealth per student] before
 detachment, and continuing with the property detached from each other school
 district in descending order of the district ’s local revenue level in excess of
 entitlement [wealth per student] before detachment.
       (d)iiThe commissioner shall annex the parcels or items of property detached
 from a school district to other school districts that are eligible for annexation of
 property in descending order of the taxable value of each parcel or item according
 to the following priorities:
            (1)iifirst, to the eligible school districts assigned to the same county as
 the school district from which the property is detached whose total adopted tax
 rate for the preceding tax year does not exceed by more than $0.15 the total tax
 rate adopted for that year by the school district from which the property is
 detached;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6057

             (2)iisecond, to the eligible school districts served by the same regional
 education service center as the district from which the property is detached whose
 total adopted tax rate for the preceding tax year does not exceed by more than
 $0.10ithe total tax rate adopted for that year by the school district from which the
 property is detached; and
             (3)iithird, to other eligible school districts whose total adopted tax rate
 for the preceding tax year does not exceed by more than $0.05 the total tax rate
 adopted for that year by the school district from which the property is detached.
       (e)iiIf the districts identified by Subsection (d) for a school district are
 insufficient to annex all the property detached from the school district, the
 commissioner shall increase, for purposes of this section, all the maximum
 difference in tax rates allowed under Subsection (d) in increments of $0.01 until
 the districts are identified that are sufficient to annex all the property detached
 from the district.
       (f)iiIf only one school district is eligible to annex property detached from a
 school district within a priority group established by Subsections (d) and (e), the
 commissioner shall annex property to that district until it reaches the taxable
 value of property necessary to generate maintenance and operations tax revenue
 in the amount equal to the district ’s entitlement under Section 48.202(a-1)(2) [a
 wealth per student equal as nearly as possible to the greatest level for which funds
 are provided under Subchapter F, Chapter 42], by annexing whole parcels or
 items of property. Any remaining detached property shall be annexed to eligible
 school districts in the next priority group as provided by this section.
       (g)iiIf more than one school district is eligible to annex property detached
 from a school district within a priority group established by Subsections (d) and
 (e), the commissioner shall first annex property to the district within the priority
 group to which could be annexed the most taxable value of property without
 increasing the district ’s taxable value of property to an amount that exceeds the
 amount necessary to generate maintenance and operations tax revenue in the
 amount equal to the district s’ entitlement under Section 48.202(a-1)(2) [its wealth
 per student above the greatest level for which funds are provided under
 Subchapter F, Chapter 42], until that district reaches a taxable value of property
 necessary to generate maintenance and operations tax revenue in the amount
 equal to the district ’s entitlement under Section 48.202(a-1)(2) [wealth per
 student equal as nearly as possible to the greatest level for which funds are
 provided under Subchapter F, Chapter 42], by annexing whole parcels or items of
 property. Then any additional detached property shall be annexed in the same
 manner to other eligible school districts in the same priority group in descending
 order of capacity to receive taxable value of annexed property without increasing
 the district ’s taxable value of property to an amount that exceeds the amount
 necessary to generate maintenance and operations tax revenue in the amount
 equal to the district ’s entitlement under Section 48.202(a-1)(2) [wealth per
 student above the greatest level for which funds are provided under Subchapter F,
 Chapter 42]. If every school district in a priority group reaches a taxable value of
 property necessary to generate maintenance and operations tax revenue in the
 amount equal to the district ’s entitlement under Section 48.202(a-1)(2) [wealth
6058             86th LEGISLATURE — REGULAR SESSION

 per student equal to the greatest level for which funds are provided under
 Subchapter F, Chapter 42], as nearly as possible, the remaining detached property
 shall be annexed to school districts in the next priority group in the manner
 provided by this section.
       (h)iiFor purposes of this section, a portion of a parcel or item of property
 detached in that subdivided form from a school district is treated as a whole
 parcel or item of property.
       (i)iiThe commissioner may order the annexation of a portion of a parcel or
 item of property, including a portion of property treated as a whole parcel or item
 under Subsection (h), if:
            (1)iithe annexation of the whole parcel or item would result in the
 district eligible to receive it in the appropriate priority order provided by this
 section having a local revenue level [wealth per student] greater than the amount
 by which the product of $10,000imultiplied by weighted average daily attendance
 exceeds the taxable value of property necessary to generate maintenance and
 operations tax revenue in the amount equal to the district ’s entitlement under
 Section 48.202(a-1)(2) [more than the greatest level for which funds are provided
 under Subchapter F, Chapter 42]; or
            (2)iithe commissioner determines that annexation of portions of the
 parcel or item would reduce disparities in district taxable values of property
 necessary to generate maintenance and operations tax revenue in the amount
 equal to a district ’s entitlement under Section 48.202(a-1)(2) [wealth per student]
 more efficiently than would be possible if the parcel or item were annexed as a
 whole.
       (j)iiThe commissioner may modify the priorities established by this section
 as the commissioner considers reasonable to minimize or reduce the number of
 school districts to which the property detached from a school district is annexed,
 to minimize or reduce the geographic dispersal of property in a school district, to
 minimize or reduce disparities in school district taxable values of property
 necessary to generate maintenance and operations tax revenue in the amount
 equal to a district ’s entitlement under Section 48.202(a-1)(2) [wealth per student]
 that would otherwise result, or to minimize or reduce any administrative burden
 or expense.
       (k)iiFor purposes of this section, a school district is assigned to a county if
 the school district is assigned to that county in the 1992-1993 Texas School
 Directory published by the Central Education Agency.
       Sec.i49.307ii[41.207].iiLIMITATIONS ON DETACHMENT AND
 ANNEXATION. The commissioner may detach and annex property under this
 subchapter only if:
            (1)iithe property is not exempt from ad valorem taxation under Section
 11.20 or 11.21, Tax Code; and
            (2)iithe property does not contain a building or structure owned by the
 United States, this state, or a political subdivision of this state that is exempt from
 ad valorem taxation under law.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6059

       Sec.i49.308ii[41.208].iiORDERS AND NOTICE. (a) The commissioner
 shall order any detachments and annexations of property under this subchapter
 not later than November 8 of each year.
       (b)iiAs soon as practicable after issuing the order under Subsection (a), the
 commissioner shall notify each affected school district and the appraisal district
 in which the affected property is located of the determination.
       Sec.i49.309ii[41.209].iiTREATMENT OF SUBDIVIDED PROPERTY. (a)
 If the commissioner orders the detachment or annexation of a portion of a parcel
 or item of property under this subchapter, the order shall specify the portion of
 the taxable value of the property to be detached or annexed and may, but need
 not, describe the specific area of the parcel or item to be detached or annexed.
       (b)iiIf an order for the detachment or annexation of a portion of a parcel or
 item of property does not describe the specific area of the parcel or item to be
 detached or annexed, the commissioner, as soon as practicable after issuing the
 order, shall determine the specific area to be detached or annexed and shall certify
 that determination to the appraisal district for the county in which the property is
 located.
       (c)iiIf portions of a parcel or item of property are located in two or more
 school districts as the result of a detachment or annexation, the parcel or item
 shall be appraised for taxation as a unit, and the commissioner shall determine the
 portion of the taxable value of the property that is located in each of those school
 districts based on the square footage of the property, or any other reasonable
 method adopted by the commissioner.
       Sec.i49.310ii[41.210].iiDUTIES OF CHIEF APPRAISER. (a) The chief
 appraiser of each appraisal district shall cooperate with the commissioner in
 administering this subchapter. The commissioner may require the chief appraiser
 to submit any reports or provide any information available to the chief appraiser
 in the form and at the times required by the commissioner.
       (b)iiAs soon as practicable after the detachment and annexation of property,
 the chief appraiser of the appraisal district in which the property is located shall
 send a written notice of the detachment and annexation to the owner of any
 property taxable in a different school district as a result of the detachment and
 annexation. The notice must include the name of the school district by which the
 property is taxable after the detachment and annexation.
       (c)iiThe commissioner may reimburse an appraisal district for any costs
 incurred in administering this subchapter and may condition the reimbursement
 or the amount of the reimbursement on the timely submission of reports or
 information required by the commissioner or the satisfactory performance of any
 other action required or requested by the commissioner.
       Sec.i49.311ii[41.211].iiSTUDENT ATTENDANCE. A student who is a
 resident of real property detached from a school district may choose to attend
 school in that district or in the district to which the property is annexed. For
 purposes of determining average daily attendance under Section 48.005 [42.005],
 the student shall be counted in the district to which the property is annexed. If the
 student chooses to attend school in the district from which the property is
 detached, the state shall withhold any foundation school funds from the district to
6060              86th LEGISLATURE — REGULAR SESSION

 which the property is annexed and shall allocate to the district in which the
 student is attending school those funds and the amount of funds equal to the
 difference between the state funds the district is receiving for the student and the
 district ’s cost in educating the student.
       Sec.i49.312ii[41.212].iiBOND TAXES. Property detached from a school
 district is released from the obligation for any tax to pay principal and interest on
 bonds authorized by the district before detachment. The property is subject to any
 tax to pay principal or interest on bonds authorized by the district to which the
 property is annexed whether authorized before or after annexation.
       Sec.i49.313ii[41.213].iiDETERMINATION BY COMMISSIONER FINAL.
 A decision or determination of the commissioner under this subchapter is final
 and not appealable.
       SECTIONi1.060.iiSubchapter H, Chapter 41, Education Code, is transferred
 to Chapter 49, Education Code, as added by this Act, redesignated as Subchapter
 H, Chapter 49, Education Code, and amended to read as follows:
             SUBCHAPTER H. CONSOLIDATION BY COMMISSIONER
       Sec.i49.351ii[41.251].iiCOMMISSIONER ORDER. If the commissioner is
 required under Section 49.004 [41.004] to order the consolidation of districts, the
 consolidation is governed by this subchapter. The commissioner ’s order shall be
 effective on a date determined by the commissioner, but not later than the earliest
 practicable date after November 8.
       Sec.i49.352ii[41.252].iiSELECTION CRITERIA. (a) In selecting the
 districts to be consolidated with a district that has taxable values of property in an
 amount that exceeds the local revenue level established under Section 48.257 [a
 property wealth greater than the equalized wealth level], the commissioner shall
 select one or more districts [with a wealth per student] that, when consolidated,
 will result in a consolidated district with a local revenue level [wealth per student]
 equal to or less than the [equalized wealth] level established under Section
 48.257. In achieving that result, the commissioner shall give priority to school
 districts in the following order:
             (1)iifirst, to the contiguous district that has the lowest local revenue
 level [wealth per student] and is located in the same county;
             (2)iisecond, to the district that has the lowest local revenue level [wealth
 per student] and is located in the same county;
             (3)iithird, to a contiguous district with a local revenue level [property
 wealth] below the [equalized wealth] level established under Section 48.257 that
 has requested the commissioner that it be considered in a consolidation plan;
             (4)iifourth, to include as few districts as possible that have the lowest
 local revenue levels below the [fall below the equalized wealth] level established
 under Section 48.257 within the consolidation order that have not requested the
 commissioner to be included;
             (5)iififth, to the district that has the lowest local revenue level [wealth
 per student] and is located in the same regional education service center area; and
             (6)iisixth, to a district that has a tax rate similar to that of the district that
 has a local revenue level [property wealth] greater than the [equalized wealth]
 level established under Section 48.257.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6061

       (b)iiThe commissioner may not select a district that has been created as a
 result of consolidation by agreement under Subchapter B to be consolidated
 under this subchapter with a district that has a local revenue level [property
 wealth] greater than the [equalized wealth] level established under Section
 48.257.
       (c)iiIn applying the selection criteria specified by Subsection (a), if more
 than two districts are to be consolidated, the commissioner shall select the third
 and each subsequent district to be consolidated by treating the district that has a
 local revenue level [property wealth] greater than the [equalized wealth] level
 established under Section 48.257 and the district or districts previously selected
 for consolidation as one district.
       Sec.i49.353ii[41.253].iiGOVERNANCE. (a) Until the initial trustees elected
 as provided by Subsection (b) have qualified and taken office, a district
 consolidated under this subchapter is governed by a transitional board of trustees
 consisting of the board of trustees of the district having the greatest student
 membership on the last day of the school year preceding the consolidation plus
 one member of the board of trustees of each other consolidating district selected
 by that board.
       (b)iiThe transitional board of trustees shall divide the consolidated district
 into nine single-member trustee districts in accordance with the procedures
 provided by Section 11.052. The transitional board shall order an election for the
 initial board of trustees to be held on the first May uniform election date after the
 effective date of a consolidation order.
       (c)iiMembers of the board of trustees of a consolidated district serve
 staggered terms of office for four years.
       (d)iiSection 13.156 applies to districts consolidated under this subchapter.
       Sec.i49.354ii[41.254].iiDISSOLUTION OF CONSOLIDATED DISTRICT.
 (a) If the legislature abolishes ad valorem taxes for public school maintenance
 and operations and adopts another method of funding public education, the board
 of trustees of a consolidated district created under this subchapter may dissolve
 the consolidated district, provided that the dissolution is approved by a majority
 of those voters residing within the district participating in an election called for
 the purpose of approving the dissolution of the consolidated school district.
       (b)iiIf a consolidated district is dissolved, each of the former districts is
 restored as a separate district and is classified as an independent district.
       (c)iiTitle to real property of the consolidated district is allocated to the
 restored district in which the property is located. Title to proportionate shares of
 the fund balances and personal property of the consolidated district, as
 determined by Subsection (e), are allocated to each restored district.
       (d)iiEach of the restored districts assumes and is liable for:
            (1)iiindebtedness of the consolidated district that relates to real property
 allocated to the district; and
            (2)iia proportionate share, as determined by Subsection (e), of
 indebtedness of the consolidated district that does not relate to real property.
6062            86th LEGISLATURE — REGULAR SESSION

       (e)iiA restored district ’s proportionate share of fund balances, personal
 property, or indebtedness is equal to the proportion that the number of students in
 average daily attendance in the restored district bears to the number of students in
 average daily attendance in the consolidated district.
       Sec.i49.355ii[41.255].iiFUND BALANCES. Fund balances of a school
 district consolidated under this subchapter may be used only for the benefit of the
 schools within the district that generated the funds.
       Sec.i49.356ii[41.256].iiEMPLOYMENT CONTRACTS. A consolidated
 district created under this subchapter shall honor an employment contract entered
 into by a consolidating district.
       Sec.i49.357ii[41.257].iiAPPLICATION OF [SMALL AND] SPARSE
 ADJUSTMENT [ADJUSTMENTS] AND SMALL AND TRANSPORTATION
 ALLOTMENTS [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 48.052i[42.103], 48.101 [42.105], or
 48.151 [42.155] would have applied in the event that the consolidated district still
 qualifies as a small or sparse district.
       SECTIONi1.061.iiSection 403.302(d), Government Code, is amended to
 read as follows:
       (d)iiFor the purposes of this section, "taxable value" means the market value
 of all taxable property less:
            (1)iithe total dollar amount of any residence homestead exemptions
 lawfully granted under Section 11.13(b) or (c), Tax Code, in the year that is the
 subject of the study for each school district;
            (2)iione-half of the total dollar amount of any residence homestead
 exemptions granted under Section 11.13(n), Tax Code, in the year that is the
 subject of the study for each school district;
            (3)iithe total dollar amount of any exemptions granted before May 31,
 1993, within a reinvestment zone under agreements authorized by Chapter 312,
 Tax Code;
            (4)iisubject to Subsection (e), the total dollar amount of any captured
 appraised value of property that:
                 (A)iiis within a reinvestment zone created on or before May 31,
 1999, or is proposed to be included within the boundaries of a reinvestment zone
 as the boundaries of the zone and the proposed portion of tax increment paid into
 the tax increment fund by a school district are described in a written notification
 provided by the municipality or the board of directors of the zone to the
 governing bodies of the other taxing units in the manner provided by former
 Section 311.003(e), Tax Code, before May 31, 1999, and within the boundaries
 of the zone as those boundaries existed on September 1, 1999, including
 subsequent improvements to the property regardless of when made;
                 (B)iigenerates taxes paid into a tax increment fund created under
 Chapter 311, Tax Code, under a reinvestment zone financing plan approved under
 Section 311.011(d), Tax Code, on or before September 1, 1999; and
                 (C)iiis eligible for tax increment financing under Chapter 311, Tax
 Code;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6063

          (5)iithe total dollar amount of any captured appraised value of property
 that:
                 (A)iiis within a reinvestment zone:
                      (i)iicreated on or before December 31, 2008, by a municipality
 with a population of less than 18,000; and
                      (ii)iithe project plan for which includes the alteration,
 remodeling, repair, or reconstruction of a structure that is included on the
 National Register of Historic Places and requires that a portion of the tax
 increment of the zone be used for the improvement or construction of related
 facilities or for affordable housing;
                 (B)iigenerates school district taxes that are paid into a tax increment
 fund created under Chapter 311, Tax Code; and
                 (C)iiis eligible for tax increment financing under Chapter 311, Tax
 Code;
            (6)iithe total dollar amount of any exemptions granted under Section
 11.251ior 11.253, Tax Code;
            (7)iithe difference between the comptroller ’s estimate of the market
 value and the productivity value of land that qualifies for appraisal on the basis of
 its productive capacity, except that the productivity value estimated by the
 comptroller may not exceed the fair market value of the land;
            (8)iithe portion of the appraised value of residence homesteads of
 individuals who receive a tax limitation under Section 11.26, Tax Code, on which
 school district taxes are not imposed in the year that is the subject of the study,
 calculated as if the residence homesteads were appraised at the full value required
 by law;
            (9)iia portion of the market value of property not otherwise fully taxable
 by the district at market value because of[:
                 [(A)]iiaction required by statute or the constitution of this state,
 other than Section 11.311, Tax Code, that, if the tax rate adopted by the district is
 applied to it, produces an amount equal to the difference between the tax that the
 district would have imposed on the property if the property were fully taxable at
 market value and the tax that the district is actually authorized to impose on the
 property, if this subsection does not otherwise require that portion to be deducted;
 [or
                 [(B)iiaction taken by the district under Subchapter B or C, Chapter
 313, Tax Code, before the expiration of the subchapter;]
            (10)iithe market value of all tangible personal property, other than
 manufactured homes, owned by a family or individual and not held or used for
 the production of income;
            (11)iithe appraised value of property the collection of delinquent taxes
 on which is deferred under Section 33.06, Tax Code;
            (12)iithe portion of the appraised value of property the collection of
 delinquent taxes on which is deferred under Section 33.065, Tax Code; and
            (13)iithe amount by which the market value of a residence homestead to
 which Section 23.23, Tax Code, applies exceeds the appraised value of that
 property as calculated under that section.
6064            86th LEGISLATURE — REGULAR SESSION

       SECTIONi1.062.iiSections 825.405(a), (b), (e), and (f), Government Code,
 are amended to read as follows:
       (a)iiAn employing school district or an open-enrollment charter school, as
 applicable, shall pay the state ’s contribution on the portion of a member ’s salary
 that exceeds the statutory minimum salary for [For] members:
            (1)iientitled to the minimum salary for certain school personnel under
 Section 21.402, Education Code;
            (2)ii[, and for members] who would have been entitled to the minimum
 salary for certain school personnel under former Section 16.056, Education Code,
 as that section existed on January 1, 1995; and
            (3)iiwho would be entitled to the minimum salary for certain school
 personnel under Section 21.402, Education Code, if the member was employed
 by a school district subject to that section instead of being employed by:
                 (A)iian open-enrollment charter school; or
                 (B)iia school district that has adopted a local innovation plan under
 Chapter 12A, Education Code, that exempts the district s’ employees from the
 minimum salary schedule under that section[, the employing district shall pay the
 state ’s contribution on the portion of the member ’s salary that exceeds the
 statutory minimum salary].
       (b)iiFor purposes of this section,[:
            [(1)]iithe statutory minimum salary for a member described by:
            (1)iiSubsection (a)(1) [certain school personnel under Section 21.402,
 Education Code,] is the salary provided by Section 21.402, Education Code [that
 section multiplied by the cost of education adjustment applicable under Section
 42.102, Education Code, to the district in which the member is employed]; [and]
            (2)iiSubsection (a)(2)i[the statutory minimum salary for members who
 would have been entitled to the minimum salary for certain school personnel
 under former Section 16.056, Education Code, as that section existed on January
 1, 1995,] is a minimum salary computed in the same manner as the minimum
 salary for certain school personnel under Section 21.402, Education Code; and
            (3)iiSubsection (a)(3) is the minimum salary the member would have
 been entitled to if the member was subject to Section 21.402, Education Code[,
 multiplied by the cost of education adjustment applicable under Section 42.102,
 Education Code, to the district in which the member is employed].
       (e)iiAfter the end of each school year, the retirement system shall certify to
 the commissioner of education:
            (1)iithe names of any employers [employing districts] that have failed to
 remit, within the period required by Section 825.408, all contributions required
 under this section for the school year; and
            (2)iithe amounts of the unpaid contributions.
       (f)iiIf the commissioner of education receives a certification under
 Subsection (e), the commissioner shall direct the comptroller of public accounts
 to withhold the amount certified, plus interest computed at the rate and in the
 manner provided by Section 825.408, from the first state money payable to the
 employer [school district]. The amount withheld shall be deposited to the credit
 of the appropriate accounts of the retirement system.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6065

       SECTIONi1.063.iiSection 26.08, Tax Code, is amended by amending
 Subsections (a), (b), (i), and (n) and adding Subsections (a-1) and (n-1) to read as
 follows:
       (a)iiIf the governing body of a school district adopts a tax rate that exceeds
 the district ’s rollback tax rate, the registered voters of the district at an election
 held for that purpose must determine whether to approve the adopted tax rate.
       (a-1)iiWhen increased expenditure of money by a school district is necessary
 to respond to a disaster, including a tornado, hurricane, flood, or other calamity,
 but not including a drought, that has impacted a school district and the governor
 has requested federal disaster assistance for the area in which the school district is
 located, an election is not required under this section to approve the tax rate
 adopted by the governing body for the year following the year in which the
 disaster occurs. A tax rate adopted under this subsection applies only in the year
 for which the rate is adopted. If a district adopts a tax rate under this subsection,
 the amount by which that rate exceeds the district ’s rollback tax rate for that tax
 year may not be considered when calculating the district s’ rollback tax rate for the
 tax year following the year in which the district adopts the rate.
       (b)iiThe governing body shall order that the election be held in the school
 district on the next uniform election [a] date prescribed by [not less than 30 or
 more than 90 days after the day on which it adopted the tax rate.] Section 41.001,
 Election Code, that occurs after the date of the election order and that allows
 sufficient time to comply with the requirements of other law [does not apply to
 the election unless a date specified by that section falls within the time permitted
 by this section]. At the election, the ballots shall be prepared to permit voting for
 or against the proposition: "Ratifying [Approving] the ad valorem tax rate of ___
 (insert adopted tax rate) [$_____ per $100 valuation] in (name of school district)
 for the current year, a rate that will result in an increase of _____ (insert
 percentage increase in maintenance and operations tax revenue under the adopted
 tax rate as compared to maintenance and operations tax revenue in the preceding
 tax year) percent in maintenance and operations tax revenue for the district for the
 current year as compared to the preceding year, which is an additional $____
 (insert dollar amount of increase in maintenance and operations tax revenue
 under the adopted tax rate as compared to maintenance and operations tax
 revenue in the preceding tax year) [is $_____ higher per $100 valuation than the
 school district rollback tax rate, for the purpose of (description of purpose of
 increase)]." [The ballot proposition must include the adopted tax rate and the
 difference between that rate and the rollback tax rate in the appropriate places.]
       (i)iiFor purposes of this section, "enrichment tax rate" has the meaning
 assigned by Section 45.0032, Education Code [the effective maintenance and
 operations tax rate of a school district is the tax rate that, applied to the current
 total value for the district, would impose taxes in an amount that, when added to
 state funds that would be distributed to the district under Chapter 42, Education
 Code, for the school year beginning in the current tax year using that tax rate,
 would provide the same amount of state funds distributed under Chapter 42,
 Education Code, and maintenance and operations taxes of the district per student
 in weighted average daily attendance for that school year that would have been
6066             86th LEGISLATURE — REGULAR SESSION

 available to the district in the preceding year if the funding elements for Chapters
 41iand 42, Education Code, for the current year had been in effect for the
 preceding year].
       (n)iiFor purposes of this section, the rollback tax rate of a school district
 [whose maintenance and operations tax rate for the 2005itax year was $1.50 or
 less per $100 of taxable value] is:
            (1)iifor the 2019 [2006] tax year, the sum of the following:
                 (A)iithe rate [that is equal to 88.67ipercent of the maintenance and
 operations tax rate adopted by the district for the 2005 tax year, the rate of $0.04]
 per $100iof taxable value that is equal to the product of the state compression
 percentage, as determined under Section 48.255, Education Code, for the
 2019itax year and $1.00;
                 (B)iithe greater of:
                      (i)iithe district ’s maintenance and operations tax rate for the
 2018itax year, less the sum of:
                            (a)ii$1.00; and
                            (b)iiany amount by which the district is required to reduce
 the district ’s enrichment tax rate under Section 48.202(f), Education Code, in the
 2019itax year; or
                      (ii)iithe rate of $0.04 per $100 of taxable value; and
                 (C)ii[, and] the district ’s current debt rate; and
            (2)iifor the 2020 [2007] and subsequent tax years, the sum [lesser] of
 the following:
                 (A)ii[the sum of the following:
                      [(i)]iithe rate per $100 of taxable value that is equal to the
 product of the state compression percentage, as determined under Section
 48.255i[42.2516], Education Code, for the current year and $1.00 [$1.50];
                 (B)iithe greater of:
                      (i)iithe district s’ enrichment tax rate for the preceding tax year,
 less any amount by which the district is required to reduce the district ’s
 enrichment tax rate under Section 48.202(f), Education Code, in the current tax
 year; or
                      (ii)iithe rate of $0.05i[$0.04] per $100iof taxable value; and
                 (C)i[(iii)iithe rate that is equal to the sum of the differences for the
 2006iand each subsequent tax year between the adopted tax rate of the district for
 that year if the rate was approved at an election under this section and the
 rollback tax rate of the district for that year; and
                      [(iv)]iithe district ’s current debt rate[; or
                 [(B)iithe sum of the following:
                      [(i)iithe effective maintenance and operations tax rate of the
 district as computed under Subsection (i) or (k), as applicable;
                      [(ii)iithe rate per $100 of taxable value that is equal to the
 product of the state compression percentage, as determined under Section
 42.2516, Education Code, for the current year and $0.06; and
                      [(iii)iithe district ’s current debt rate].
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6067

       (n-1)iiFor the 2020 tax year, a school district shall substitute "$0.04" for
 "$0.05" in Subsection (n)(2)(B)(ii) if the governing body of the district does not
 adopt by unanimous vote for that tax year a maintenance and operations tax rate
 at least equal to the sum of the rate described by Subsection (n)(2)(A) and the rate
 of $0.05 per $100 of taxable value.
       SECTIONi1.064.iiChapter 26, Tax Code, is amended by adding Section
 26.151 to read as follows:
       Sec.i26.151.iiESCROW ACCOUNT FOR PROPERTY TAXES. (a) In this
 section:
            (1)ii"Home loan" has the meaning assigned by Section 343.001,
 Finance Code.
            (2)ii"Home loan servicer" means a person who:
                 (A)iireceives scheduled payments from a borrower under the terms
 of a home loan, including amounts for escrow accounts; and
                 (B)iimakes the payments of principal and interest to the owner of
 the loan or other third party and makes any other payments with respect to the
 amounts received from the borrower as may be required under the terms of the
 servicing loan document or servicing contract.
            (3)ii"Property tax escrow account" means an escrow account maintained
 by a lender or loan servicer to hold funds prepaid by the borrower on a loan for
 the payment of property taxes on real property securing the loan as the taxes
 become due.
       (b)iiTo the extent that HBi3, 86th Legislature, Regular Session, 2019, has
 the effect of reducing property taxes in this state, a lender or home loan servicer
 of a home loan that maintains a property tax escrow account must take into
 account the effect of that legislation in establishing the borrower ’s annual
 property tax payments to be held in that account and immediately adjust the
 borrower ’s monthly payments accordingly.
       (c)iiThis section expires September 1, 2023.
       SECTIONi1.065.ii(a) This section takes effect only if HBi2, 86th
 Legislature, Regular Session, 2019, or another act of that legislature that amends
 Chapter 26, Tax Code, to change the term "effective tax rate" to "no-new-revenue
 tax rate" becomes law.
       (b)iiEffective January 1, 2020, Section 26.08(g), Tax Code, is amended to
 read as follows:
       (g)iiIn a school district that received distributions from an equalization tax
 imposed under former Chapter 18, Education Code, the no-new-revenue tax
 [effective] rate of that tax as of the date of the county unit system ’s abolition is
 added to the district ’s rollback tax rate.
                  ARTICLE 1A. PROPERTY TAX COMPRESSION
       SECTIONi1A.001.iiEffective September 1, 2020, Section 13.054,
 Education Code, is amended by amending Subsection (f) and adding Subsection
 (f-1) to read as follows:
       (f)iiFor five years beginning with the school year in which the annexation
 occurs, a school district shall receive additional funding under this subsection or
 Subsection (h). The amount of funding shall be determined by multiplying the
6068             86th LEGISLATURE — REGULAR SESSION

 lesser of the enlarged district ’s local fund assignment computed under Section
 48.256 [42.252] or the enlarged district s’ total cost of tier one by a fraction, the
 numerator of which is the number of students residing in the territory annexed to
 the receiving district preceding the date of the annexation and the denominator of
 which is the number of students residing in the district as enlarged on the date of
 the annexation, and multiplying the resulting product by the quotient of the
 enlarged district ’s maximum compressed tax rate, as determined under Section
 48.2551, for the current school year divided by the receiving district ’s maximum
 compressed tax rate, as determined under Section 48.2551, for the year in which
 the annexation occurred.
       (f-1)iiNotwithstanding Subsection (f), for an annexation that occurred before
 September 1, 2019, for five years beginning with the school year in which the
 annexation occurs, a school district shall receive additional funding under this
 subsection or Subsection (h). The amount of funding shall be determined by
 multiplying the lesser of the enlarged district ’s local fund assignment computed
 under Section 48.256ior the enlarged district s’ total cost of tier one by a fraction,
 the numerator of which is the number of students residing in the territory annexed
 to the receiving district preceding the date of the annexation and the denominator
 of which is the number of students residing in the district as enlarged on the date
 of the annexation, and dividing the receiving district ’s maximum compressed tax
 rate, as determined under Section 48.2551. This subsection expires September 1,
 2021.
       SECTIONi1A.002.iiEffective September 1, 2020, Section 30.003,
 Education Code, is amended by amending Subsection (f-1) and adding
 Subsection (f-2) to read as follows:
       (f-1)iiThe commissioner shall determine the total amount that the Texas
 School for the Blind and Visually Impaired and the Texas School for the Deaf
 would have received from school districts in accordance with this section if the
 following provisions had not reduced the districts ’share of the cost of providing
 education services:
            (1)iiHBi1, Acts of the 79th Legislature, 3rd Called Session, 2006;
            (2)iiSection 45.0032;
            (3)iiSection 48.255; and
            (4)iiSection 48.2551.
       (f-2)iiThe amount determined under Subsection (f-1), [had not reduced the
 districts ’share of the cost of providing education services. That amount,] minus
 any amount the schools do receive from school districts, shall be set aside as a
 separate account in the foundation school fund and appropriated to those schools
 for educational purposes.
       SECTIONi1A.003.iiEffective September 1, 2020, Section 45.003(d),
 Education Code, is amended to read as follows:
       (d)iiA proposition submitted to authorize the levy of maintenance taxes must
 include the question of whether the governing board or commissioners court may
 levy, assess, and collect annual ad valorem taxes for the further maintenance of
 public schools, at a rate not to exceed the rate stated in the proposition. For any
 year, the maintenance tax rate per $100 of taxable value adopted by the district
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6069

 may not exceed the rate equal to the sum of $0.17 and the district ’s maximum
 compressed rate [product of the state compression percentage], as determined
 under Section 48.2551 [42.2516, multiplied by $1.50].
       SECTIONi1A.004.ii(a) Effective September 1, 2020, Section 45.0032,
 Education Code, as added by this Act, is amended by adding Subsection (a) to
 read as follows:
       (a)iiA school district ’s tier one maintenance and operations tax rate is the
 number of cents levied by the district for maintenance and operations that does
 not exceed the maximum compressed rate, as determined under Section 48.2551.
       (b)iiSection 45.0032(a), Education Code, as added by Article 1 of this Act,
 expires on the effective date of this section.
       SECTIONi1A.005.iiEffective September 1, 2020, Section 42.101,
 Education Code, is transferred to Subchapter B, Chapter 48, Education Code, as
 added by this Act, redesignated as Section 48.051, Education Code, and amended
 to read as follows:
       Sec.i48.051ii[42.101].iiBASIC ALLOTMENT. (a) For each student in
 average daily attendance, not including the time students spend each day in
 special education programs in an instructional arrangement other than mainstream
 or career and technology education programs, for which an additional allotment is
 made under Subchapter C, a district is entitled to an allotment equal to the lesser
 of $6,160 [$4,765] or the amount that results from the following formula:
                   A = $6,160 [$4,765] X TR/MCR [(DCR/MCR)]
 where:
       "A" is the allotment to which a district is entitled;
       "TR" ["DCR"] is the district ’s tier one maintenance and operations
 [compressed] tax rate, as provided by Section 45.0032 [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 district s’ [state] maximum compressed tax rate, as determined
 under Section 48.2551 [which is the product of the state compression percentage,
 as determined under Section 42.2516, multiplied by $1.50].
       [(a-1)iiNotwithstanding Subsection (a), for a school district that adopted a
 maintenance and operations tax rate for the 2005 tax year below the maximum
 rate permitted by law for that year, the district ’s compressed tax rate ("DCR")
 includes the portion of the district ’s current maintenance and operations tax rate
 in excess of the first six cents above the district ’s compressed tax rate, as defined
 by Subsection (a), until the district ’s compressed tax rate computed in accordance
 with this subsection is equal to the state maximum compressed tax rate
 ("MCR").]
       (b)iiA greater amount for any school year may be provided by appropriation.
       (c)iiDuring any school year for which the maximum amount of the basic
 allotment provided under Subsection (a) or (b) is greater than the maximum
 amount provided for the preceding school year, a school district must use at least
 30ipercent of the amount, if the amount is greater than zero, that equals the
 product of the average daily attendance of the district multiplied by the amount of
6070             86th LEGISLATURE — REGULAR SESSION

 the difference between the district ’s funding under this chapter per student in
 average daily attendance for the current school year and the preceding school
 year to provide compensation increases to full-time district employees other than
 administrators as follows:
             (1)ii75 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
 experience; and
             (2)ii25 percent may be used as determined by the district to increase
 compensation paid to full-time district employees [This subsection applies to a
 school district for which the compressed tax rate ("DCR") is determined in
 accordance with Subsection (a-1). Any reduction in the district ’s adopted
 maintenance and operations tax rate is applied to the following components of the
 district ’s tax rate in the order specified:
             [(1)iitax effort described by Section 42.302(a-1)(2);
             [(2)iitax effort described by Section 42.302(a-1)(1); and
             [(3)iitax effort included in the determination of the district ’s compressed
 tax rate ("DCR") under Subsection (a-1)].
       SECTIONi1A.006.iiEffective September 1, 2020, Section 42.2516,
 Education Code, is transferred to Subchapter F, Chapter 48, Education Code, as
 added by this Act, redesignated as Section 48.255, Education Code, and amended
 to read as follows:
       Sec.i48.255i[42.2516].iiSTATE COMPRESSION PERCENTAGE. (a) In
 this title, "state compression percentage" means the percentage of the rate of
 $1.00 per $100 valuation of taxable property that is used to determine a school
 district ’s maximum compressed [adopted maintenance and operations] tax rate
 under Section 48.2551.
       (b)iiThe [for the 2005 tax year that serves as the basis for state funding. If
 the] state compression percentage is the lower of:
             (1)ii93 percent, or a lower percentage set [not established] by
 appropriation for a school year;
             (2)iithe percentage determined by the following formula:
                           SCP = PYCP X 1.025/(1 + ECPV); or
             (3)iithe percentage determined under this section for the preceding
 school year.
       (c)iiFor purposes of Subsection (b)(2):
             (1)ii"SCP" is the state compression percentage;
             (2)ii"PYCP" is the state compression percentage for the preceding
 school year; and
             (3)ii"ECPV" is the estimated percentage change in total taxable property
 value for the applicable tax year as determined based on the estimate submitted to
 the legislature under Section 48.269. [, the commissioner shall determine the state
 compression percentage for each school year based on the percentage by which a
 district is able to reduce the district ’s maintenance and operations tax rate for that
 year, as compared to the district ’s adopted maintenance and operations tax rate
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6071

 for the 2005 tax year, as a result of state funds appropriated for that year from the
 property tax relief fund established under Section 403.109, Government Code, or
 from another funding source available for school district property tax relief.
       [(g)iiThe commissioner may adopt rules necessary to implement this section.
       [(h)iiA determination by the commissioner under this section is final and
 may not be appealed.]
       SECTIONi1A.007.iiEffective September 1, 2020, Subchapter F, Chapter 48,
 Education Code, as added by this Act, is amended by adding Sections 48.2551,
 48.2552, 48.2553, and 48.2554 to read as follows:
       Sec.i48.2551.iiMAXIMUM COMPRESSED TAX RATE. (a) In this section:
             (1)ii"DPV" has the meaning assigned by Section 48.256;
             (2)ii"E" is the expiration of the exclusion of appraised property value for
 the preceding tax year that is recognized as taxable property value for the current
 tax year, which is the sum of the following:
                  (A)iiproperty value that is no longer subject to a limitation on
 appraised value under Chapter 313, Tax Code; and
                  (B)iiproperty value under Section 311.013(n), Tax Code, that is no
 longer excluded from the calculation of "DPV" from the preceding year because
 of refinancing or renewal after September 1, 2019;
             (3)ii"MCR" is the district ’s maximum compressed rate, which is the tax
 rate for the current tax year per $100 of valuation of taxable property at which the
 district must levy a maintenance and operations tax to receive the full amount of
 the tier one allotment to which the district is entitled under this chapter;
             (4)ii"PYDPV" is the district ’s value of "DPV" for the preceding tax
 year; and
             (5)ii"PYMCR" is the district ’s value of "MCR" for the preceding tax
 year.
       (b)iiExcept as provided by Subsection (c), a district ’s maximum compressed
 rate ("MCR") is the lesser of:
             (1)iithe rate determined by the following applicable formula:
                  (A)iiif "DPV" exceeds "PYDPV" by an amount equal to or greater
 than 2.5 percent:
                    MCR = (1.025((PYDPV+E) X PYMCR))/DPV; or
                  (B)iiif Paragraph (A) does not apply:
                                    MCR = PYMCR; or
             (2)iithe product of the state compression percentage, as determined
 under Section 48.255, for the current tax year, multiplied by $1.00.
       (c)iiNotwithstanding Subsection (b), for a district to which Section
 48.2552(b) applies, the district ’s maximum compressed rate is the value
 calculated for "MCR" under Subsection (b)(1)(B).
       (c-1)iiFor purposes of determining a district ’s maximum compressed rate
 ("MCR") under Subsection (b) for the 2020-2021 school year, the value of
 "PYMCR" is $1.00. This subsection expires September 1, 2021.
       (d)iiThe agency shall calculate and make available school
 districts i’maximum compressed rates, as determined under this section.
6072             86th LEGISLATURE — REGULAR SESSION

       (e)iiIt is the intent of the legislature that the state continue to fund public
 schools at the same or similar level as the state would have if this section had not
 taken effect.
       Sec.i48.2552.iiLIMITATION ON MAXIMUM COMPRESSED RATE. (a)
 Each year, the agency shall evaluate the difference between school
 districts i’maximum compressed rates, as determined under Section 48.2551.
       (b)iiIf a school district has a maximum compressed rate that is less than
 90ipercent of another school district ’s maximum compressed rate, the district ’s
 maximum compressed rate is calculated under Section 48.2551(c) until the
 agency determines that the difference between the district ’s and another district ’s
 maximum compressed rates is not more than 10 percent.
       (c)iiThe amount of revenue available to the state as a result of the differences
 in the amount of state aid and reduction in local revenue between calculating a
 district ’s maximum compressed rate in accordance with Subsection (b) and
 calculating the district ’s maximum compressed rate under Section 48.2551 shall
 be used to lower the state compression percentage under Section 48.255. The
 agency shall provide estimates to the legislature of the reduction of the state
 compression percentage based on this subsection.
       Sec.i48.2553.iiPERMITTED TAX RATE FOR MAINTENANCE OF
 2020-2021 SCHOOL YEAR BASIC ALLOTMENT. (a) Notwithstanding any
 other provision of this title or Chapter 26, Tax Code, if the maximum amount of
 the basic allotment provided under Section 48.051(a) or (b) for a school year is
 less than the maximum amount provided for the 2020-2021 school year, subject
 to Subsection (b), a school district may adopt a maintenance and operations tax
 rate that exceeds the maximum compressed tax rate permitted under Section
 48.2551, provided that:
             (1)iithe rate adopted by the district was previously approved by voters
 for a tax year subsequent to the 2005 tax year; and
             (2)iithe rate may not exceed the lesser of:
                  (A)ii$1.17; or
                  (B)iithe district ’s maximum compressed tax rate and the additional
 tax rate necessary to generate the amount of revenue equal to the difference in per
 student funding.
       (b)iiBefore adopting a maintenance and operations tax rate under Subsection
 (a), a school district must receive approval from the agency. To receive approval
 from the agency under this subsection the district must submit the following
 information:
             (1)iia statement detailing the loss of funding to the district that resulted
 from the decline in the maximum amount of the basic allotment provided under
 Section 48.051(a) or (b);
             (2)iithe proposed additional tax effort and the amount of funding the
 proposed additional tax effort will generate;
             (3)iievidence that the proposed additional tax effort described by
 Subdivision (2) had been previously authorized by voters subsequent to the
 2005itax year; and
             (4)iiany other information required by the commissioner.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6073

       (c)iiThe agency ’s approval of a district ’s tax rate under Subsection (b)
 expires at the end of each tax year.
       (d)iiAny additional tax effort by a school district authorized under this
 section is not:
             (1)iieligible for funding under Subchapter B, C, or D;
             (2)iieligible for the guaranteed yield amount of state funds under
 Section 48.202; or
             (3)iisubject to the limit on local revenue under Section 48.257.
       (e)iiThe commissioner shall reduce state aid or adjust the limit on local
 revenue under Section 48.257 in an amount equal to the amount of revenue
 generated by a school district ’s tax effort that is not in compliance with this
 section or Section 48.2551.
       (f)iiThis section does not apply to a school district to which Section
 45.003(f) applies.
       S e c . i 4 8 . 2 5 5 4 . i i S T U D Y O N D I S T R I C T P R O P E RT Y TA X
 COMPRESSION. (a) The Legislative Budget Board, in conjunction with other
 appropriate state agencies, shall study possible methods of providing property tax
 relief through the reduction of school district maintenance and operations taxes.
 The study must evaluate:
             (1)iipotential sources of revenue that may be used to reduce school
 district maintenance and operations taxes;
             (2)iimethods of limiting increases in maintenance and operations tax
 revenue that adjust for enrollment growth, inflation, and other relevant factors;
 and
             (3)iifor each method of providing property tax relief considered:
                   (A)iiany difference in anticipated benefits to property taxpayers
 based on the school district in which the taxpayer resides;
                   (B)iithe cost to the state; and
                   (C)iithe anticipated impact on equity in the public school finance
 system.
       (b)iiNot later than September 1, 2020, the Legislative Budget Board shall
 submit to the governor, the lieutenant governor, and the speaker of the house of
 representatives a report on the results of the study and any recommendations for
 legislative or other action.
       (c)iiThis section expires September 1, 2021.
       SECTIONi1A.008.iiEffective January 1, 2020, Section 26.08(n), Tax Code,
 is amended to read as follows:
       (n)iiFor purposes of this section, the rollback tax rate of a school district
 [whose maintenance and operations tax rate for the 2005 tax year was $1.50 or
 less per $100 of taxable value] is the sum of the following:
             (1)ii[for the 2006 tax year, the sum of the rate that is equal to
 88.67ipercent of the maintenance and operations tax rate adopted by the district
 for the 2005 tax year, the rate of $0.04 per $100 of taxable value, and the
 district s’ current debt rate; and
             [(2)iifor the 2007 and subsequent tax years, the lesser of the following:
                   [(A)iithe sum of the following:
6074             86th LEGISLATURE — REGULAR SESSION

                        [(i)]iithe rate per $100 of taxable value that is equal to the
 district s’ maximum compressed tax rate [product of the state compression
 percentage], as determined under Section 48.2551i[42.2516], Education Code,
 for the current year [and $1.50];
             (2)iithe greater of:
                  (A)iithe district ’s enrichment tax rate for the preceding tax year, less
 any amount by which the district is required to reduce the district ’s enrichment
 tax rate under Section 48.202(f), Education Code, in the current tax year; or
                  (B)i[(ii)]iithe rate of $0.04 per $100 of taxable value; and
             (3)ii[(iii)iithe rate that is equal to the sum of the differences for the
 2006iand each subsequent tax year between the adopted tax rate of the district for
 that year if the rate was approved at an election under this section and the
 rollback tax rate of the district for that year; and
                        [(iv)]iithe district ’s current debt rate[; or
                  [(B)iithe sum of the following:
                        [(i)iithe effective maintenance and operations tax rate of the
 district as computed under Subsection (i) or (k), as applicable;
                        [(ii)iithe rate per $100 of taxable value that is equal to the
 product of the state compression percentage, as determined under Section
 42.2516, Education Code, for the current year and $0.06; and
                        [(iii)iithe district ’s current debt rate].
                              ARTICLE 2. PUBLIC EDUCATION
       SECTIONi2.001.iiSection 7.028(a), Education Code, is amended to read as
 follows:
       (a)iiExcept as provided by Section 21.006(k), 22.093(l), 22.096, 29.001(5),
 29.010(a), or 39.057, the agency may monitor compliance with requirements
 applicable to a process or program provided by a school district, campus,
 program, or school granted charters under Chapter 12, including the process
 described by Subchapter F, Chapter 11, or a program described by Subchapter B,
 C, D, E, F, H, or I, Chapter 29, Subchapter A, Chapter 37, or Section 38.003,
 [and the use of funds provided for such a program under Subchapter C, Chapter
 42,] only as necessary to ensure:
             (1)iicompliance with federal law and regulations;
             (2)iifinancial accountability, including compliance with grant
 requirements; [and]
             (3)iidata integrity for purposes of:
                  (A)iithe Public Education Information Management System
 (PEIMS); and
                  (B)iiaccountability under Chapters 39 and 39A; and
             (4)iiqualification for funding under Chapter 48.
       SECTIONi2.002.iiSubchapter C, Chapter 7, Education Code, is amended by
 adding Section 7.070 to read as follows:
       Sec.i7.070.iiCOORDINATION OF DATA COLLECTION. The
 commissioner may enter into agreements with appropriate entities as necessary to
 provide for the collection of data regarding college, career, and military readiness
 of public school students, including data maintained by:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6075

          (1)iigovernmental agencies of the United States, this state, or another
 state;
           (2)iipolitical subdivisions of this state or another state;
           (3)iipublic or private institutions of higher education; and
           (4)iirelevant private organizations.
      SECTIONi2.003.iiSubchapter D, Chapter 11, Education Code, is amended
 by adding Sections 11.185 and 11.186 to read as follows:
      Sec.i11.185.iiEARLY CHILDHOOD LITERACY AND MATHEMATICS
 PROFICIENCY PLANS. (a) The board of trustees of each school district shall
 adopt and post on the district ’s Internet website early childhood literacy and
 mathematics proficiency plans that set specific annual goals for the following five
 school years to reach quantifiable goals for student performance in reading and
 mathematics at each campus.
      (b)iiEach plan adopted under Subsection (a) must:
           (1)iiidentify annual goals for students in each group evaluated under the
 closing the gaps domain under Section 39.053(c)(3);
           (2)iiinclude annual goals for aggregate student growth on the third grade
 reading or mathematics assessment instrument, as applicable, administered under
 Section 39.023 or on an alternative assessment instrument determined by the
 board of trustees;
           (3)iiprovide for targeted professional development for classroom
 teachers in kindergarten or first, second, or third grade who are assigned to
 campuses that the board of trustees identifies as not meeting the plan ’s goals;
           (4)iiassign at least one district-level administrator or employee of the
 regional education service center for the district ’s region to:
                (A)iicoordinate implementation of the plan; and
                (B)iisubmit an annual report to the board of trustees on the district ’s
 progress toward the goals set under the plan; and
           (5)iibe reviewed annually by the board of trustees at a public meeting.
      (c)iiEach plan adopted under Subsection (a) may set separate goals for
 students in a bilingual education or special language program under Subchapter
 B, Chapter 29.
      (d)iiThe professional development provided to classroom teachers under
 Subsection (b)(3) must, as appropriate, consider the unique needs of students in a
 bilingual education or special language program under Subchapter B, Chapter 29.
      (e)iiA school district shall post the annual report described by Subsection
 (b)(4)(B) on the district ’s Internet website and on the Internet website, if any, of
 each campus in the district.
      Sec.i11.186.iiCOLLEGE, CAREER, AND MILITARY READINESS
 PLANS. (a) The board of trustees of each school district shall adopt college,
 career, and military readiness plans that set specific annual goals for the following
 five school years to reach quantifiable goals for measures of student college,
 career, and military readiness at each campus.
      (b)iiEach plan adopted under Subsection (a) must:
           (1)iiidentify annual goals for students in each group evaluated under the
 closing the gaps domain under Section 39.053(c)(3);
6076             86th LEGISLATURE — REGULAR SESSION

           (2)iiinclude annual goals for aggregate student growth on college,
 career, and military readiness indicators evaluated under the student achievement
 domain under Section 39.053(c)(1);
           (3)iiassign at least one district-level administrator or employee of the
 regional education service center for the district ’s region to:
                (A)iicoordinate implementation of the plan; and
                (B)iisubmit an annual report to the board of trustees on the district ’s
 progress toward the goals set under the plan; and
           (4)iibe reviewed annually by the board of trustees at a public meeting.
      (c)iiA school district shall post the annual report described by Subsection
 (b)(3)(B) on the district ’s Internet website and on the Internet website, if any, of
 each campus in the district.
      SECTIONi2.004.iiSection 12.104(b), Education Code, as amended by
 Chapters 324 (SBi1488), 522 (SBi179), and 735 (SBi1153), Acts of the 85th
 Legislature, Regular Session, 2017, is reenacted and amended to read as follows:
      (b)iiAn open-enrollment charter school is subject to:
           (1)iia provision of this title establishing a criminal offense;
           (2)iithe provisions in Chapter 554, Government Code; and
           (3)i[(2)]iia prohibition, restriction, or requirement, as applicable,
 imposed by this title or a rule adopted under this title, relating to:
                (A)iithe Public Education Information Management System
 (PEIMS) to the extent necessary to monitor compliance with this subchapter as
 determined by the commissioner;
                (B)iicriminal history records under Subchapter C, Chapter 22;
                (C)iireading instruments and accelerated reading instruction
 programs under Section 28.006;
                (D)iiaccelerated instruction under Section 28.0211;
                (E)iihigh school graduation requirements under Section 28.025;
                (F)iispecial education programs under Subchapter A, Chapter 29;
                (G)iibilingual education under Subchapter B, Chapter 29;
                (H)iiprekindergarten programs under Subchapter E or E-1, Chapter
 29;
                (I)iiextracurricular activities under Section 33.081;
                (J)iidiscipline management practices or behavior management
 techniques under Section 37.0021;
                (K)iihealth and safety under Chapter 38;
                (L)iipublic school accountability under Subchapters B, C, D, F, G,
 and J, Chapter 39, and Chapter 39A;
                (M)iithe requirement under Section 21.006 to report an educator ’s
 misconduct;
                (N)iiintensive programs of instruction under Section 28.0213;
                (O)iithe right of a school employee to report a crime, as provided by
 Section 37.148; [and]
                (P)iibullying prevention policies and procedures under Section
 37.0832;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6077

                 (Q)iithe right of a school under Section 37.0052 to place a student
 who has engaged in certain bullying behavior in a disciplinary alternative
 education program or to expel the student; [and]
                 (R)iithe right under Section 37.0151 to report to local law
 enforcement certain conduct constituting assault or harassment;
                 (S)i[(P)]iia parent ’s right to information regarding the provision of
 assistance for learning difficulties to the parent ’s child as provided by Sections
 26.004(b)(11) and 26.0081(c) and (d);
                 (T)iithe early childhood literacy and mathematics proficiency plans
 under Section 11.185; and
                 (U)iithe college, career, and military readiness plans under Section
 11.186.
       SECTIONi2.005.iiSection 21.048, Education Code, is amended by adding
 Subsection (a-2) to read as follows:
       (a-2)iiThe board shall adopt rules that provide that in order to teach any
 grade level from prekindergarten through grade six a person must demonstrate
 proficiency in the science of teaching reading on a certification examination for
 each class of certificate issued by the board after January 1, 2021.
       SECTIONi2.006.iiSubchapter B, Chapter 21, Education Code, is amended
 by adding Sections 21.063 and 21.064 to read as follows:
       Sec.i21.063.iiTEACHER DESIGNATIONS ON CERTIFICATE. The board
 shall place on or remove from a teacher ’s certificate the appropriate designation
 issued to the teacher under Section 21.3521:
            (1)iiafter being notified by the agency of the issuance or removal of the
 designation; or
            (2)iiif the board determines that removal of the designation is necessary
 because of action taken against the teacher ’s certificate.
       Sec.i21.064.iiLEGACY MASTER TEACHER CERTIFICATIONS. (a) The
 board shall recognize a master teacher certificate issued under former Section
 21.0481, 21.0482, 21.0483, or 21.0484 until the certificate expires. The board
 shall note a designation of "legacy" on the certificate.
       (b)iiA master teacher certificate described by Subsection (a) is not eligible
 for funding under the teacher incentive allotment under Section 48.112.
       SECTIONi2.007.iiSection 21.352(c), Education Code, is amended to read as
 follows:
       (c)iiExcept as otherwise provided by this subsection, appraisal must be done
 at least once for [during] each school year. A teacher may be appraised less
 frequently if the teacher agrees in writing and the teacher ’s most recent evaluation
 rated the teacher as at least proficient, or the equivalent, and did not identify any
 area of deficiency. A teacher who is appraised less frequently than annually must
 be appraised at least once during each period of five school years. The district
 shall maintain a written copy of the evaluation of each teacher ’s performance in
 the teacher ’s personnel file. Each teacher is entitled to receive a written copy of
 the evaluation promptly on its completion. After receiving a written copy of the
 evaluation, a teacher is entitled to a second appraisal by a different appraiser or to
 submit a written rebuttal to the evaluation to be attached to the evaluation in the
6078             86th LEGISLATURE — REGULAR SESSION

 teacher ’s personnel file. The evaluation and any rebuttal may be given to another
 school district at which the teacher has applied for employment at the request of
 that district.
       SECTIONi2.008.iiSubchapter H, Chapter 21, Education Code, is amended
 by adding Section 21.3521 to read as follows:
       Sec.i21.3521.iiLOCAL OPTIONAL TEACHER DESIGNATION
 SYSTEM. (a) Subject to Subsection (b), a school district or open-enrollment
 charter school may designate a certified classroom teacher as a master,
 exemplary, or recognized teacher for a five-year period based on the results from
 single year or multiyear appraisals that comply with Section 21.351 or 21.352.
       (b)iiThe commissioner shall establish performance and validity standards for
 each local optional teacher designation system. The performance standards:
            (1)iimust provide a mathematical possibility that all teachers eligible for
 a designation may earn the designation; and
            (2)iimay not require a district to use an assessment instrument adopted
 under Section 39.023 to evaluate teacher performance.
       (c)iiNotwithstanding performance standards established under Subsection
 (b), a classroom teacher that holds a National Board Certification issued by the
 National Board for Professional Teaching Standards may be designated as
 recognized.
       (d)iiThe commissioner shall:
            (1)iiensure that local optional teacher designation systems:
                 (A)iimeet the requirements of this section; and
                 (B)iiprioritize high needs campuses; and
            (2)iienter into a memorandum of understanding with Texas Tech
 University to monitor the quality and fairness of local optional teacher
 designation systems.
       (e)iiThe agency shall develop and provide technical assistance for school
 districts and open-enrollment charter schools that request assistance in
 implementing a local optional teacher designation system, including assistance in
 prioritizing high needs campuses.
       (f)iiA teacher has no vested property right in a teacher designation assigned
 to the teacher under this section. A teacher designation issued under this section
 is void in the determination that the designation was issued improperly.
 Subchapters C through H, Chapter 2001, Government Code, do not apply to the
 voiding of a teacher designation under this subsection.
       (g)iiThe agency shall periodically conduct evaluations of the effectiveness of
 the local optional teacher designation systems under this section and the teacher
 incentive allotment under Section 48.112 and report the results of the evaluations
 to the legislature. A school district or open-enrollment charter school that has
 implemented a local optional teacher designation system or received funds under
 the teacher incentive allotment shall participate in the evaluations.
       (h)iiThe agency shall collect information necessary to implement this
 section. Information otherwise confidential remains confidential and is not
 subject to Chapter 552, Government Code.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                          6079

       (i)iiThe commissioner may adopt fees to implement this section. A fee
 adopted by the agency under this section is not subject to Sections 2001.0045iand
 2001.0221, Government Code.
       (j)iiThe commissioner may adopt rules to implement this section. A decision
 made by the commissioner under this section is final and may not be appealed.
       SECTIONi2.009.iiSection 21.458, Education Code, is amended by adding
 Subsections (a-1), (b-1), (f), (f-1), and (g) and amending Subsections (b) and (d)
 to read as follows:
       (a-1)iiTo be assigned as a mentor, a teacher must agree to serve as a mentor
 teacher for at least one school year. The assignment must begin not later than the
 30th day of employment of the classroom teacher to whom the mentor teacher is
 assigned. A district must agree to assign a mentor to a new classroom teacher for
 at least two school years.
       (b)iiThe commissioner shall adopt rules necessary to administer this section,
 including rules concerning the duties and qualifications of a teacher who serves
 as a mentor and the number of classroom teachers that may be assigned to a
 mentor. The rules concerning qualifications must require that to serve as a
 mentor a teacher must:
            (1)iicomplete a research-based mentor and induction training program
 approved by the commissioner;
            (2)iicomplete a mentor training program provided by the district; [and]
            (3)iihave at least three complete years of teaching experience with a
 superior record of assisting students, as a whole, in achieving improvement in
 student performance; and
            (4)iidemonstrate interpersonal skills, instructional effectiveness, and
 leadership skills.
       (b-1)iiA school district must provide training to mentor teachers and any
 appropriate district and campus employees who work with the classroom teacher
 or supervise the classroom teacher. The training must be completed by the
 mentor teacher and the district and campus employees before the beginning of the
 school year. The district shall also provide supplemental training to mentor
 teachers and employees during the school year. The training must include
 content related to best mentorship practices.
       (d)iiIn adopting rules under this section [Subsection (c)], the commissioner
 shall rely on research-based mentoring programs that, through external
 evaluation, have demonstrated success.
       (f)iiA mentor teacher must meet with each classroom teacher assigned to the
 mentor not less than 12 hours each semester. Observations of the mentor by the
 classroom teacher being mentored or of the classroom teacher being mentored by
 the mentor may count toward the 12 hours of meeting time required for the
 semester. Except as provided by Subsection (f-1), the mentoring sessions must
 address the following topics:
            (1)iiorientation to the context, policies, and practices of the school
 district;
            (2)iidata-driven instructional practices;
6080            86th LEGISLATURE — REGULAR SESSION

            (3)iispecific instructional coaching cycles, including coaching regarding
 conferences between parents and the classroom teacher;
            (4)iiprofessional development; and
            (5)iiprofessional expectations.
       (f-1)iiSubject to approval by the agency, in determining the topics to be
 addressed in the mentoring sessions, a school district may create an appropriate
 curriculum that meets the district needs.
       (g)iiA school district must:
            (1)iidesignate a specific time during the regularly contracted school day
 for meetings between mentor teachers and classroom teachers assigned to a
 mentor; and
            (2)iischedule release time or a reduced teaching load for mentor teachers
 and classroom teachers under this section to facilitate mentoring activities,
 including classroom observations or participation in supportive coaching.
       SECTIONi2.010.iiSubchapter J, Chapter 21, Education Code, is amended
 by adding Section 21.465 to read as follows:
       Sec.i21.465.iiAUTISM TRAINING. (a) A school district may provide a
 salary incentive or similar compensation to a teacher who completes training
 provided by a regional education service center relating to autism.
       (b)iiA school district that decides to provide an incentive or compensation
 under Subsection (a) shall adopt a policy to implement this section.
       SECTIONi2.011.iiEffective September 1, 2020, Section 25.085, Education
 Code, is amended by adding Subsection (i) to read as follows:
       (i)iiNotwithstanding any other provision of this section, a student enrolled in
 a school district is not required to attend school for any additional instructional
 days described by Section 48.0051.
       SECTIONi2.012.iiSection 28.006, Education Code, is amended by
 amending Subsections (b), (c), (d), and (f) and adding Subsections (b-1), (c-2),
 (c-3), and (l) to read as follows:
       (b)iiThe commissioner shall adopt a list of reading instruments that a school
 district may use to diagnose student reading development and comprehension.
 For use in diagnosing the reading development and comprehension of
 kindergarten students, the commissioner shall adopt a [include on the
 commissioner ’s list at least two] multidimensional assessment tool that includes
 [tools. A multidimensional assessment tool on the commissioner ’s list must
 either include] a reading instrument and tests [test] at least three developmental
 skills, including literacy[, or test at least two developmental skills, other than
 literacy, and be administered in conjunction with a separate reading instrument
 that is on a list adopted under this subsection]. A multidimensional assessment
 tool administered as provided by this subsection is considered to be a reading
 instrument for purposes of this section. A district-level committee established
 under Subchapter F, Chapter 11, may adopt a list of reading instruments for use in
 the district in a grade level other than kindergarten in addition to the reading
 instruments on the commissioner s’ list. Each reading instrument adopted by the
 commissioner or a district-level committee must be based on scientific research
 concerning reading skills development and reading comprehension. A list of
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6081

 reading instruments adopted under this subsection must provide for diagnosing
 the reading development and comprehension of students participating in a
 program under Subchapter B, Chapter 29.
       (b-1)iiThe commissioner may approve an alternative reading instrument for
 use in diagnosing the reading development and comprehension of kindergarten
 students that complies with the requirements under Subsection (b).
       (c)iiEach school district shall administer, at the [kindergarten and] first and
 second grade levels, a reading instrument on the list adopted by the commissioner
 or by the district-level committee. The district shall administer the reading
 instrument in accordance with the commissioner ’s recommendations under
 Subsection (a)(1).
       (c-2)iiEach school district shall administer at the kindergarten level a reading
 instrument adopted by the commissioner under Subsection (b) or approved by the
 commissioner under Subsection (b-1). The district shall administer the reading
 instrument in accordance with the commissioner ’s recommendations under
 Subsection (a)(1).
       (c-3)iiThe commissioner by rule shall determine the performance on the
 reading instrument adopted under Subsection (b) that indicates kindergarten
 readiness.
       (d)iiThe superintendent of each school district shall:
            (1)iireport to the commissioner and the board of trustees of the district
 the results of the reading instruments;
            (2)iinot later than the 60th calendar day after the date on which a
 reading instrument was administered report, in writing, to a student ’s parent or
 guardian the student ’s results on the [reading] instrument; and
            (3)iiusing the school readiness certification system provided to the
 school district in accordance with Section 29.161(e), report electronically each
 student ’s raw score on the reading instrument to the agency for use in the school
 readiness certification system.
       (f)iiThe agency shall ensure at least one reading instrument for each grade
 level for which a reading instrument is required to be administered under this
 section is available to school districts at no cost. [This section may be
 implemented only if funds are appropriated for administering the reading
 instruments. Funds, other than local funds, may be used to pay the cost of
 administering a reading instrument only if the instrument is on the list adopted by
 the commissioner.]
       (l)iiThe commissioner may adopt rules as necessary to implement this
 section. Section 2001.0045, Government Code, does not apply to rules adopted
 under this subsection.
       SECTIONi2.013.iiSubchapter A, Chapter 28, Education Code, is amended
 by adding Section 28.0062 to read as follows:
       Sec.i28.0062.iiREADING STANDARDS FOR KINDERGARTEN
 THROUGH THIRD GRADE. (a) Each school district and open-enrollment
 charter school shall:
6082            86th LEGISLATURE — REGULAR SESSION

            (1)iiprovide for the use of a phonics curriculum that uses systematic
 direct instruction in kindergarten through third grade to ensure all students obtain
 necessary early literacy skills;
            (2)iiensure that:
                 (A)iinot later than the 2021-2022 school year, each classroom
 teacher in kindergarten or first, second, or third grade and each principal at a
 campus with kindergarten or first, second, or third grade has attended a teacher
 literacy achievement academy developed under Section 21.4552; and
                 (B)iieach classroom teacher and each principal initially employed in
 a grade level or at a campus described by Paragraph (A) for the 2021-2022 school
 year or a subsequent school year has attended a teacher literacy achievement
 academy developed under Section 21.4552 before the teacher ’s or principal ’s first
 year of placement in that grade level or campus; and
            (3)iicertify to the agency that the district or school:
                 (A)iiprioritizes placement of highly effective teachers in
 kindergarten through second grade; and
                 (B)iihas integrated reading instruments used to diagnose reading
 development and comprehension to support each student in prekindergarten
 through third grade.
       (b)iiThe agency shall provide assistance to school districts and
 open-enrollment charter schools in complying with the requirements under this
 section.
       (c)iiThe agency shall:
            (1)iimonitor the implementation of this section; and
            (2)iiperiodically report to the legislature on the implementation of this
 section and the effectiveness of this section in improving educational outcomes.
       (d)iiThe commissioner shall establish an advisory board to assist the agency
 in fulfilling the agency ’s duties under this section. Chapter 2110, Government
 Code, does not apply to the advisory board.
       (e)iiThe commissioner may adopt rules to implement this section.
       SECTIONi2.014.iiSection 28.025(c), Education Code, is amended to read as
 follows:
       (c)iiA person may receive a diploma if the person is eligible for a diploma
 under Section 28.0251. In other cases, a student may graduate and receive a
 diploma only if:
            (1)iithe student successfully completes the curriculum requirements
 identified by the State Board of Education under Subsection (a) and complies
 with Sections 28.0256 and [Section] 39.025; or
            (2)iithe student successfully completes an individualized education
 program developed under Section 29.005.
       SECTIONi2.015.iiSubchapter B, Chapter 28, Education Code, is amended
 by adding Section 28.0256 to read as follows:
       Sec.i28.0256.iiFINANCIAL AID APPLICATION REQUIREMENT FOR
 HIGH SCHOOL GRADUATION. (a) Before graduating from high school, each
 student must complete and submit a free application for federal student aid
 (FAFSA) or a Texas application for state financial aid (TASFA).
Saturday, May 25, 2019           HOUSE JOURNAL — 74th Day                              6083

       (b)iiA student is not required to comply with Subsection (a) if:
            (1)iithe student ’s parent or other person standing in parental relation
 submits a signed form indicating that the parent or other person authorizes the
 student to decline to complete and submit the financial aid application;
            (2)iithe student signs and submits the form described by Subdivision (1)
 on the student ’s own behalf if the student is 18 years of age or older or the
 student ’s disabilities of minority have been removed for general purposes under
 Chapter 31, Family Code; or
            (3)iia school counselor authorizes the student to decline to complete and
 submit the financial aid application for good cause, as determined by the school
 counselor.
       (c)iiA school district or open-enrollment charter school shall adopt a form to
 be used for purposes of Subsection (b). The form must be:
            (1)iiapproved by the agency; and
            (2)iimade available in English, Spanish, and any other language spoken
 by a majority of the students enrolled in a bilingual education or special language
 program under Subchapter B, Chapter 29, in the district or school.
       (d)iiIf a school counselor notifies a school district whether a student has
 complied with this section for purposes of determining whether the student meets
 high school graduation requirements under Section 28.025, the school counselor
 may only indicate whether the student has complied with this section and may not
 indicate the manner in which the student complied.
       (e)iiThe commissioner shall adopt rules as necessary to implement this
 section, including rules to:
            (1)iiestablish:
                 (A)iia timeline for:
                      (i)iithe distribution to students of the free application for federal
 student aid or Texas application for state financial aid and the form adopted under
 Subsection (c); and
                      (ii)iithe submission of a form under Subsection (b);
                 (B)iistandards regarding the information that a school district or
 open-enrollment charter school must provide to students regarding:
                      (i)iiin accordance with Section 33.007(b)(5), instructions for
 filling out the free application for federal student aid or Texas application for state
 financial aid; and
                      (ii)iithe options available to a student under Subsection (b) if
 the student wishes to decline to complete and submit a financial aid application;
 and
                 (C)iithe method by which a student must provide to a school district
 or open-enrollment charter school proof that the student has completed and
 submitted the free application for federal student aid or Texas application for state
 financial aid as required by this section;
            (2)iirequire each school district to report to the agency:
                 (A)iithe number of students who completed and submitted a
 financial aid application under Subsection (a); and
6084            86th LEGISLATURE — REGULAR SESSION

                 (B)iithe number of students who received an exception from
 complying with Subsection (a) under Subsection (b); and
            (3)iiensure compliance with federal law regarding confidentiality of
 student educational information, including the Family Educational Rights and
 Privacy Act of 1974i(20iU.S.C.iSection 1232g), and any state law relating to the
 privacy of student information.
       (f)iiThe agency shall establish an advisory committee to assist the agency in
 adopting rules under Subsection (e) to implement this section and to develop
 recommendations for that purpose. The advisory committee is composed of:
            (1)iischool counselors;
            (2)iischool administrators; and
            (3)iistakeholders to represent the needs of interested students.
       (g)iiNot later than January 1, 2021, the agency shall report the advisory
 committee ’s recommendations to the standing committee of each house of the
 legislature with jurisdiction over public education. Subsection (f) and this
 subsection expire January 1, 2023.
       SECTIONi2.016.iiSubchapter B, Chapter 29, Education Code, is amended
 by adding Section 29.065 to read as follows:
       Sec.i29.065.iiASSISTANCE BY AGENCY. The agency shall develop tools
 to assist school districts and open-enrollment charter schools in implementing
 bilingual education and special language programs under this chapter.
       SECTIONi2.017.iiSection 29.122, Education Code, is amended to read as
 follows:
       Sec.i29.122.iiESTABLISHMENT. (a) Using criteria established by the State
 Board of Education, each school district shall adopt a process for identifying and
 serving gifted and talented students in the district and shall establish a program
 for those students in each grade level. A district may establish a shared services
 arrangement program with one or more other districts.
       (b)iiEach school district shall adopt a policy regarding the use of funds to
 support the district ’s program for gifted and talented students.
       SECTIONi2.018.iiSubchapter D, Chapter 29, Education Code, is amended
 by adding Section 29.124 to read as follows:
       Sec.i29.124.iiCERTIFICATION AND REPORTING REQUIRED. (a) Each
 school district shall annually certify to the commissioner that the district has
 established a program for gifted and talented students as required by this
 subchapter and that the program is consistent with the state plan developed under
 Section 29.123.
       (b)iiIf the commissioner determines that a school district has failed to
 comply with Subsection (a) for a school year, the commissioner shall reduce the
 total amount of funding to which the district is entitled under Chapter 48 for that
 school year by an amount equal to the basic allotment multiplied by the product
 of:
            (1)ii0.12; and
            (2)iian amount equal to five percent of the students in average daily
 attendance in the district.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6085

       (c)iiThe commissioner may restore to a school district all or part of the
 funding withheld from the district s’ entitlement under Subsection (b) if during the
 school year the district complies with Subsection (a).
       (d)iiAt the same time that a school district makes the certification required
 under Subsection (a), the district shall report to the commissioner regarding the
 use of funds on the district ’s program for gifted and talented students as provided
 by State Board of Education rule.
       (e)iiNothing in this section may be construed as limiting the number of
 students that a school district may identify as gifted and talented or serve under
 the district ’s program for gifted and talented students.
       SECTIONi2.019.iiSection 29.153, Education Code, is amended by
 amending Subsections (c) and (d) and adding Subsections (c-1), (d-1), (d-2), and
 (g) to read as follows:
       (c)iiA prekindergarten class under this section may [shall] 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 transportation
 system.
       (c-1)iiA 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 programs under Subchapter E-1.
       (d)iiSubject to Subsections (d-1) and (d-2), on [On] application of a district,
 the commissioner shall [may] exempt a district from the application of all or any
 part of this section, including all or any part of Subchapter E-1 for a
 prekindergarten class described by Subsection (c-1), if the commissioner
 determines that:
            (1)iithe district would be required to construct classroom facilities in
 order to provide prekindergarten classes; or
            (2)iiimplementing any part of this section would result in fewer eligible
 children being enrolled in a prekindergarten class under this section.
       (d-1)iiA district may not receive an exemption under Subsection (d) unless
 the district has solicited and considered at a public meeting proposals for
 partnerships with public or private entities regarding prekindergarten classes
 required under this section. A decision of the board of trustees regarding a
 partnership described by this subsection is final.
       (d-2)iiAn exemption under Subsection (d) may not be granted for a period
 longer than three school years and may be renewed only once.
       (g)iiBefore a school district or open-enrollment charter school may
 construct, repurpose, or lease a classroom facility, or issue bonds for the
 construction or repurposing of a classroom facility, to provide the prekindergarten
 classes required under this section, the district or school must solicit and consider
 proposals for partnerships to provide those classes with community-based
 child-care providers who:
            (1)iiare a Texas Rising Star Program provider with a three-star
 certification or higher;
6086             86th LEGISLATURE — REGULAR SESSION

            (2)iiare nationally accredited;
            (3)iiare a Head Start program provider;
            (4)iiare a Texas School Ready! participant; or
            (5)iimeet the requirements under Section 29.1532.
       SECTIONi2.020.iiSection 29.1531(a), Education Code, is amended to read
 as follows:
       (a)iiA school district may offer on a tuition basis or use district funds to
 provide:
            (1)iian 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)iihalf-day and full-day prekindergarten classes to children not eligible
 for classes under Section 29.153.
       SECTIONi2.021.iiSection 29.1532(c), Education Code, is amended to read
 as follows:
       (c)iiA school district that offers prekindergarten classes[, including a high
 quality prekindergarten program class under Subchapter E-1,] shall include the
 following information in the district ’s Public Education Information Management
 System (PEIMS) report:
            (1)iidemographic information, as determined by the commissioner, on
 students enrolled in district and campus prekindergarten classes, including the
 number of students who are eligible for classes under Section 29.153;
            (2)iithe numbers of half-day and full-day prekindergarten classes offered
 by the district and campus;
            (3)iithe number of half-day prekindergarten classes for which the district
 has received an exemption from full-day operation under Section 29.153(d);
            (4)iithe sources of funding for the prekindergarten classes;
            (5)ii[(4)]iithe class size and ratio of instructional staff to students for
 each prekindergarten program class offered by the district and campus;
            (6)ii[(5)]iiif the district elects to administer an assessment instrument
 under Section 29.169 to students enrolled in district and campus prekindergarten
 program classes, a description and the results of each type of assessment
 instrument; and
            (7)ii[(6)]iicurricula used in the district ’s prekindergarten program
 classes.
       SECTIONi2.022.iiSection 29.1543, Education Code, is amended to read as
 follows:
       Sec.i29.1543.iiEARLY EDUCATION REPORTS. The agency shall produce
 and make available to the public on the agency ’s Internet website annual district
 and campus-level reports containing information from the previous school year
 on early education in school districts and open-enrollment charter schools. A
 report under this section must contain:
            (1)iithe information required by Section 29.1532(c) to be reported
 through the Public Education Information Management System (PEIMS);
            (2)iia description of the diagnostic reading instruments administered in
 accordance with Section 28.006(c) or (c-2);
Saturday, May 25, 2019           HOUSE JOURNAL — 74th Day                             6087

            (3)iithe number of students who were administered a diagnostic reading
 instrument administered in accordance with Section 28.006(c) or (c-2);
            (4)iithe number of students whose scores from a diagnostic reading
 instrument administered in accordance with Section 28.006(c) or (c-2) indicate
 reading proficiency; [and]
            (5)iithe number of kindergarten students who were enrolled in a
 prekindergarten program in the previous school year in the same district or school
 as the district or school in which the student attends kindergarten;
            (6)iithe number and percentage of students who perform satisfactorily
 on the third grade reading or mathematics assessment instrument administered
 under Section 39.023, disaggregated by whether the student was eligible for free
 prekindergarten under Section 29.153;
            (7)iithe number of students described by Subdivision (6) who attended
 kindergarten in the district, disaggregated by:
                   (A)iiwhether the student met the kindergarten readiness standard on
 the reading instrument adopted under Section 28.006;
                   (B)iiwhether the student attended prekindergarten in the district;
 and
                   (C)iithe type of prekindergarten the student attended, if applicable;
 and
            (8)iithe information described by Subdivisions (6) and (7) disaggregated
 by whether the student is educationally disadvantaged.
       SECTIONi2.023.iiSubchapter E, Chapter 29, Education Code, is amended
 by adding Section 29.1544 to read as follows:
       S e c . i 2 9 . 1 5 4 4 . i i R E P O RT I N G O F C E RTA I N I N F O R M AT I O N
 REGARDING PREKINDERGARTEN PROGRAMS; AGENCY REPORT. (a)
 The agency by rule shall require each school district that offers a prekindergarten
 program under Section 29.153 and each private entity that provides a
 prekindergarten program under contract with a school district to report the
 following information in the form and manner prescribed by the agency for each
 prekindergarten class offered by the district or private entity:
            (1)iithe number of students in each prekindergarten class;
            (2)iithe number of certified teachers in each prekindergarten class;
            (3)iithe number of teacher ’s aides in each prekindergarten class;
            (4)iiwhether each prekindergarten class is full-day or half-day; and
            (5)iiif the district offers half-day classes, whether the district offers two
 half-day classes per day.
       (b)iiFrom the information submitted under Subsection (a), the agency shall
 determine the total number of teachers and teacher ’s aides in prekindergarten
 classes in this state.
       (c)iiFrom the information submitted under Subsection (a) and for purposes
 of calculating the student/teacher ratio for each prekindergarten class offered by a
 school district or private entity that provides a prekindergarten program under
 contract with a school district, the agency shall count each teacher or teacher s’
 aide:
            (1)iionce for a full-day class; and
6088             86th LEGISLATURE — REGULAR SESSION

           (2)iitwice for a half-day class if the district offers two half-day classes
 per day.
      (d)iiNot later than August 1 of each year, the agency shall prepare and
 submit a report to the legislature based on the information collected under
 Subsection (a).
      SECTIONi2.024.iiSection 29.162, Education Code, is amended to read as
 follows:
      Sec.i29.162.iiRULES [DETERMINATION OF FULL-DAY AND
 HALF-DAY]. (a) The commissioner may adopt rules for this subchapter,
 including rules establishing full-day and half-day minutes of operation
 requirements as provided by Section 25.081.
      (b)iiSection 2001.0045, Government Code, does not apply to rules adopted
 under this section.
      SECTIONi2.025.iiThe heading to Subchapter E-1, Chapter 29, Education
 Code, is amended to read as follows:
     SUBCHAPTER E-1. HIGH QUALITY PREKINDERGARTEN [GRANT]
                           PROGRAM REQUIREMENTS
      SECTIONi2.026.iiSection 29.164, Education Code, is amended to read as
 follows:
      Sec.i29.164.iiDEFINITION. In this subchapter, "program" means a high
 quality prekindergarten [grant] program required under Section 29.153(c-1) to be
 provided free of tuition or fees in accordance with this subchapter.
      SECTIONi2.027.iiSection 29.167(a), Education Code, is amended to read as
 follows:
      (a)iiA school district shall select and implement a curriculum for a
 prekindergarten [grant] program [under this subchapter] that:
           (1)iiincludes the prekindergarten guidelines established by the agency;
           (2)iimeasures the progress of students in meeting the recommended
 learning outcomes; and
           (3)iidoes not use national curriculum standards developed by the
 Common Core State Standards Initiative.
      SECTIONi2.028.iiSection 29.170(a), Education Code, is amended to read as
 follows:
      (a)iiThe commissioner shall evaluate the use and effectiveness of
 prekindergarten funding [provided under this subchapter] in improving student
 learning. The commissioner shall identify effective instruction strategies
 implemented by school districts under this subchapter.
      SECTIONi2.029.iiSection 29.171(a), Education Code, is amended to read as
 follows:
      (a)iiA school district that offers a prekindergarten [participating in the grant]
 program under this subchapter may enter into a contract with an eligible private
 provider to provide services or equipment for the program.
      SECTIONi2.030.iiSection 29.172, Education Code, is amended to read as
 follows:
      Sec.i29.172.iiRULES. (a) The commissioner may adopt rules necessary to
 implement this subchapter.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6089

       (b)iiSection 2001.0045, Government Code, does not apply to rules adopted
 under this section.
       SECTIONi2.031.iiSection 29.190, Education Code, is amended by
 amending Subsection (a) and adding Subsection (a-1) to read as follows:
       (a)iiA student is entitled to a subsidy under this section if:
            (1)iithe student:
                 (A)iisuccessfully completes the career and technology program of a
 school district in which the student receives training and instruction for
 employment; or
                 (B)iiis enrolled in a special education program under Subchapter A;
 and
            (2)iithe student passes a certification examination to qualify for a license
 or certificate that is an industry certification for purposes of Section
 39.053(c)(1)(B)(v), administered while the student is enrolled in a school district.
       (a-1)iiA student may not receive more than one subsidy under this section.
       SECTIONi2.032.iiSubchapter F, Chapter 29, Education Code, is amended
 by adding Section 29.194 to read as follows:
       Sec.i29.194.iiSUMMER CAREER AND TECHNOLOGY EDUCATION
 GRANT PROGRAM. (a) From funds appropriated or available for the purpose,
 the commissioner, in cooperation with an appropriate private entity, shall
 establish a grant program to provide funding to school districts for career and
 technology education courses offered during the summer.
       (b)iiThe commissioner may solicit and accept gifts, donations, or other
 contributions for the grant program established under this section.
       (c)iiThe commissioner may adopt rules as necessary to implement this
 section.
       SECTIONi2.033.iiSubchapter Z, Chapter 29, Education Code, is amended
 by adding Section 29.924 to read as follows:
       Sec.i29.924.iiBLENDED LEARNING GRANT PROGRAM. (a) In this
 section, "blended learning" means an instructional delivery method that combines
 classroom and online instruction.
       (b)iiFrom funds appropriated or available for purposes of this section, the
 commissioner shall establish a grant program to assist school districts and
 open-enrollment charter schools in developing and implementing effective
 blended learning models, including an innovative mathematics instructional
 program at a campus designated as a mathematics innovation zone as provided by
 Section 28.020. In awarding grants under the program, the commissioner shall
 give priority to school districts and open-enrollment charter schools that have the
 highest enrollment of students who are educationally disadvantaged.
       (c)iiA school district or open-enrollment charter school that receives a grant
 under this section must:
            (1)iidevelop a plan to implement a blended learning model that meets
 the requirements under Subsection (d);
            (2)iiprovide training to teachers and other relevant personnel on
 effective blended learning practices using a program approved by the
 commissioner for that purpose;
6090             86th LEGISLATURE — REGULAR SESSION

            (3)iiafter completion of the training under Subdivision (2):
                 (A)iicertify to the agency that the blended learning model has been
 implemented; and
                 (B)iiimmediately following the fourth school year of
 implementation, submit to the agency a report on student outcomes under the
 blended learning model; and
            (4)iiprovide any other information to the agency as necessary for the
 implementation of this section.
       (d)iiA plan to implement a blended learning model developed under
 Subsection (c) must:
            (1)iiduring the first year require implementation of the model across an
 entire grade level at a campus and permit subsequent expansion of the model to
 additional grade levels at the campus or, if the campus has achieved full
 implementation of the model across all grade levels, to additional campuses in a
 manner that provides students a consistent learning experience;
            (2)iirequire teachers to differentiate instruction for all students in a grade
 level using the blended learning model, including by:
                 (A)iiusing curricula and assessments that allow each student to
 progress at the student ’s pace based on demonstrated proficiency;
                 (B)iiproviding learning opportunities that give students, in
 collaboration with the teacher, control over the time, place, path, and pace of the
 student ’s learning; and
                 (C)iiallocating a certain amount of instructional preparation time to
 collaborating with students and developing blended learning lesson plans and
 activities driven by individual student needs;
            (3)iiprovide teachers and other relevant personnel with professional
 development opportunities regarding blended learning; and
            (4)iirequire the use of a proficiency-based assessment to inform
 instruction and provide teachers with relevant information regarding strengths
 and gaps in a student s’ learning and proficiency in the essential knowledge and
 skills.
       (e)iiFunds awarded under the grant program may be used only to implement
 a program under this section and satisfy the requirements under Subsection (c).
       (f)iiA school district or open-enrollment charter school may receive a grant
 under this section for not more than four consecutive school years.
       (g)iiThe commissioner shall adopt rules as necessary to implement this
 section, including rules establishing an application and selection process for
 awarding grants under this section and a list of programs that may be used for
 training under Subsection (c)(2). In adopting rules under this subsection, the
 commissioner may not impose any requirements on a school district ’s or
 open-enrollment charter school ’s plan to implement a blended learning model not
 listed under Subsection (d).
       SECTIONi2.034.iiSections 39.0261(a), (e), and (f), Education Code, are
 amended to read as follows:
       (a)iiIn addition to the assessment instruments otherwise authorized or
 required by this subchapter:
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                           6091

            (1)iieach school year and at state cost, a school district may administer
 to students in the spring of the eighth grade an established, valid, reliable, and
 nationally norm-referenced preliminary college preparation assessment
 instrument for the purpose of diagnosing the academic strengths and deficiencies
 of students before entrance into high school;
            (2)iieach school year and at state cost, a school district may administer
 to students in the 10th grade an established, valid, reliable, and nationally
 norm-referenced preliminary college preparation assessment instrument for the
 purpose of measuring a student s’ progress toward readiness for college and the
 workplace; and
            (3)iihigh school students in the spring of the 11th grade or during the
 12th grade may select and take once, at state cost:
                 (A)ii[,] one of the valid, reliable, and nationally norm-referenced
 assessment instruments used by colleges and universities as part of their
 undergraduate admissions processes; or
                 (B)iithe assessment instrument designated by the Texas Higher
 Education Coordinating Board under Section 51.334.
       (e)iiSubsection (a)(3) does not prohibit a high school student [in the spring
 of the 11th grade or during the 12th grade] from selecting and taking, at the
 student ’s own expense, an assessment instrument described by that subdivision
 [one of the valid, reliable, and nationally norm-referenced assessment instruments
 used by colleges and universities as part of their undergraduate admissions
 processes more than once].
       (f)iiThe provisions of this section regarding assessment instruments
 administered under Subsection (a)(1) or (2) apply only if the legislature
 appropriates funds for those purposes [of this section].
       SECTIONi2.035.iiSection 39.306(a), Education Code, is amended to read as
 follows:
       (a)iiEach board of trustees shall publish an annual report describing the
 educational performance of the district and of each campus in the district that
 includes uniform student performance and descriptive information as determined
 under rules adopted by the commissioner. The annual report must also include:
            (1)iicampus performance objectives established under Section
 11.253iand the progress of each campus toward those objectives, which shall be
 available to the public;
            (2)iiinformation indicating the district ’s accreditation status and
 identifying each district campus awarded a distinction designation under
 Subchapter G or considered an unacceptable campus under Chapter 39A;
            (3)iithe district ’s current special education compliance status with the
 agency;
            (4)iia statement of the number, rate, and type of violent or criminal
 incidents that occurred on each district campus, to the extent permitted under the
 Family Educational Rights and Privacy Act of 1974i(20iU.S.C.iSection 1232g);
            (5)iiinformation concerning school violence prevention and violence
 intervention policies and procedures that the district is using to protect students;
6092             86th LEGISLATURE — REGULAR SESSION

            (6)iithe findings that result from evaluations conducted under the Safe
 and Drug-Free Schools and Communities Act of 1994i(20iU.S.C. Section 7101iet
 seq.); [and]
            (7)iiinformation received under Section 51.403(e) for each high school
 campus in the district, presented in a form determined by the commissioner; and
            (8)iithe progress of the district and each campus in the district toward
 meeting the goals set in the district ’s:
                 (A)iiearly childhood literacy and mathematics proficiency plans
 adopted under Section 11.185; and
                 (B)iicollege, career, and military readiness plans adopted under
 Section 11.186.
       SECTIONi2.036.iiSubchapter Z, Chapter 39A, Education Code, is amended
 by adding Section 39A.907 to read as follows:
       Sec.i39A.907.iiASSESSMENT INSTRUMENT STUDY. (a) The
 commissioner shall enter into a memorandum of understanding with a public
 institution of higher education to conduct a study to determine whether, for each
 applicable grade level, each assessment instrument administered under Section
 39.023(a) during the 2018-2019ischool year or scheduled to be administered
 during the 2019-2020ischool year:
            (1)iiis written at the appropriate reading level for students in that grade
 level; and
            (2)iiincludes only:
                 (A)iipassages, questions, answers, and other content aligned with
 the essential knowledge and skills adopted by the State Board of Education for
 the applicable subject for the grade level at which the assessment instrument is
 administered or for any previous grade level; and
                 (B)iipassages written at a reading level not higher than the grade
 level at which the assessment instrument is administered.
       (b)iiNot later than December 1, 2019, the commissioner shall submit a
 report to the legislature and the presiding officer of each legislative standing
 committee with jurisdiction over primary and secondary education that includes
 the results of the study.
  ARTICLE 2A. PROVISIONS REGARDING EMPLOYING, TERMINATING,
   AND REPORTING MISCONDUCT OF PUBLIC SCHOOL AND RELATED
                                 ENTITY PERSONNEL
       SECTIONi2A.001.iiSection 12.027(a), Education Code, is amended to read
 as follows:
       (a)iiThe State Board of Education may place on probation or revoke a
 home-rule school district charter of a school district if the board determines that
 the district:
            (1)iicommitted a material violation of the charter, including by failure to
 comply with the duty to discharge or refuse to hire certain employees or
 applicants for employment, as provided by Section 12.0271;
            (2)iifailed to satisfy generally accepted accounting standards of fiscal
 management; or
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6093

             (3)iifailed to comply with this subchapter or other applicable federal or
 state law or rule.
       SECTIONi2A.002.iiSubchapter B, Chapter 12, Education Code, is amended
 by adding Section 12.0271 to read as follows:
       Sec.i12.0271.iiFAILURE TO DISCHARGE OR REFUSE TO HIRE
 CERTAIN EMPLOYEES OR APPLICANTS. A home-rule school district
 commits a material violation of the school district ’s charter if the school district
 fails to comply with the duty to discharge or refuse to hire certain employees or
 applicants for employment under Section 22.085 or 22.092.
       SECTIONi2A.003.iiSection 12.056(b), Education Code, is amended to read
 as follows:
       (b)iiA campus or program for which a charter is granted under this
 subchapter is subject to:
             (1)iia provision of this title establishing a criminal offense; and
             (2)iia prohibition, restriction, or requirement, as applicable, imposed by
 this title or a rule adopted under this title, relating to:
                  (A)iithe Public Education Information Management System
 (PEIMS) to the extent necessary to monitor compliance with this subchapter as
 determined by the commissioner;
                  (B)iicriminal history records under Subchapter C, Chapter 22;
                  (C)iihigh school graduation under Section 28.025;
                  (D)iispecial education programs under Subchapter A, Chapter 29;
                  (E)iibilingual education under Subchapter B, Chapter 29;
                  (F)iiprekindergarten programs under Subchapter E, Chapter 29;
                  (G)iiextracurricular activities under Section 33.081;
                  (H)iihealth and safety under Chapter 38; [and]
                  (I)iipublic school accountability under Subchapters B, C, D, F, and
 J, Chapter 39, and Chapter 39A; and
                  (J)iithe duty to discharge or refuse to hire certain employees or
 applicants for employment under Section 12.1059.
       SECTIONi2A.004.iiSection 12.063(a), Education Code, is amended to read
 as follows:
       (a)iiA board of trustees may place on probation or revoke a charter it grants
 if the board determines that the campus or program:
             (1)iicommitted a material violation of the charter, including by failure to
 comply with the duty to discharge or refuse to hire certain employees or
 applicants for employment, as provided by Section 12.0631;
             (2)iifailed to satisfy generally accepted accounting standards of fiscal
 management; or
             (3)iifailed to comply with this subchapter, another law, or a state agency
 rule.
       SECTIONi2A.005.iiSubchapter C, Chapter 12, Education Code, is amended
 by adding Section 12.0631 to read as follows:
       Sec.i12.0631.iiFAILURE TO DISCHARGE OR REFUSE TO HIRE
 CERTAIN EMPLOYEES OR APPLICANTS. A campus or campus program
 granted a charter under this subchapter commits a material violation of its charter
6094            86th LEGISLATURE — REGULAR SESSION

 if the campus or program fails to comply with the duty to discharge or refuse to
 hire certain employees or applicants for employment under Section 12.1059,
 22.085, or 22.092.
       SECTIONi2A.006.iiSection 12.1059, Education Code, is amended to read
 as follows:
       Sec.i12.1059.iiREQUIREMENTS [AGENCY APPROVAL REQUIRED]
 FOR EMPLOYMENT OF CERTAIN EMPLOYEES. A person may not be
 employed by or serve as a teacher, librarian, educational aide, administrator, or
 school counselor for an open-enrollment charter school unless:
            (1)iithe person has been approved by the agency following a review of
 the person ’s national criminal history record information as provided by Section
 22.0832; and
            (2)iithe school has confirmed that the person is not included in the
 registry under Section 22.092.
       SECTIONi2A.007.iiSection 12.115(a), Education Code, is amended to read
 as follows:
       (a)iiExcept as provided by Subsection (c), the commissioner shall revoke the
 charter of an open-enrollment charter school or reconstitute the governing body
 of the charter holder if the commissioner determines that the charter holder:
            (1)iicommitted a material violation of the charter, including by a failure
 to:
                 (A)iisatisfy accountability provisions prescribed by the charter; or
                 (B)iicomply with the duty to discharge or refuse to hire certain
 employees or applicants for employment, as provided by Section 12.1151;
            (2)iifailed to satisfy generally accepted accounting standards of fiscal
 management;
            (3)iifailed to protect the health, safety, or welfare of the students
 enrolled at the school;
            (4)iifailed to comply with this subchapter or another applicable law or
 rule;
            (5)iifailed to satisfy the performance framework standards adopted
 under Section 12.1181; or
            (6)iiis imminently insolvent as determined by the commissioner in
 accordance with commissioner rule.
       SECTIONi2A.008.iiSubchapter D, Chapter 12, Education Code, is amended
 by adding Section 12.1151 to read as follows:
       Sec.i12.1151.iiFAILURE TO DISCHARGE OR REFUSE TO HIRE
 CERTAIN EMPLOYEES OR APPLICANTS. An open-enrollment charter school
 commits a material violation of the school ’s charter if the school fails to comply
 with the duty to discharge or refuse to hire certain employees or applicants for
 employment under Section 12.1059, 22.085, or 22.092.
       SECTIONi2A.009.iiSection 12A.008, Education Code, is amended by
 adding Subsection (b-1) to read as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6095

       (b-1)iiThe commissioner may terminate a district ’s designation as a district
 of innovation if the district fails to comply with the duty to discharge or refuse to
 hire certain employees or applicants for employment under Section 12.1059,
 applicable to the district under Section 12A.004(a)(1), or Section 22.085 or
 22.092.
       SECTIONi2A.010.iiSection 21.006, Education Code, is amended by
 amending Subsections (a), (b), (b-1), (b-2), (c-1), (d), and (e) and adding
 Subsections (g-1) and (k) to read as follows:
       (a)iiIn this section:
            (1)ii"Abuse"[, "abuse"] has the meaning assigned by Section 261.001,
 Family Code, and includes any sexual conduct involving an educator and a
 student or minor.
            (2)ii"Other charter entity" means:
                 (A)iia school district operating under a home-rule school district
 charter adopted under Subchapter B, Chapter 12;
                 (B)iia campus or campus program operating under a charter granted
 under Subchapter C, Chapter 12; and
                 (C)iian entity that contracts to partner with a school district under
 Section 11.174(a)(2) to operate a district campus under a charter granted to the
 entity by the district under Subchapter C, Chapter 12.
       (b)iiIn addition to the reporting requirement under Section 261.101, Family
 Code, the superintendent or director of a school district, district of innovation,
 open-enrollment charter school, other charter entity, regional education service
 center, or shared services arrangement shall notify the State Board for Educator
 Certification if:
            (1)iian educator employed by or seeking employment by the school
 district, district of innovation, charter school, other charter entity, service center,
 or shared services arrangement has a criminal record and the school district,
 district of innovation, charter school, other charter entity, service center, or shared
 services arrangement obtained information about the educator ’s criminal record
 by a means other than the criminal history clearinghouse established under
 Section 411.0845, Government Code;
            (2)iian educator ’s employment at the school district, district of
 innovation, charter school, other charter entity, service center, or shared services
 arrangement was terminated and there is evidence that the educator:
                 (A)iiabused or otherwise committed an unlawful act with a student
 or minor;
                 (A-1)iiwas involved in a romantic relationship with or solicited or
 engaged in sexual contact with a student or minor;
                 (B)iipossessed, transferred, sold, or distributed a controlled
 substance, as defined by Chapter 481, Health and Safety Code, or by 21 U.S.C.
 Section 801 et seq.;
                 (C)iiillegally transferred, appropriated, or expended funds or other
 property of the school district, district of innovation, charter school, other charter
 entity, service center, or shared services arrangement;
6096             86th LEGISLATURE — REGULAR SESSION

                 (D)iiattempted by fraudulent or unauthorized means to obtain or
 alter a professional certificate or license for the purpose of promotion or
 additional compensation; or
                 (E)iicommitted a criminal offense or any part of a criminal offense
 on school property or at a school-sponsored event;
            (3)iithe educator resigned and there is evidence that the educator
 engaged in misconduct described by Subdivision (2); or
            (4)iithe educator engaged in conduct that violated the assessment
 instrument security procedures established under Section 39.0301.
       (b-1)iiA superintendent or director of a school district, district of innovation,
 open-enrollment charter school, other charter entity, regional education service
 center, or shared services arrangement shall complete an investigation of an
 educator that involves evidence that the educator may have engaged in
 misconduct described by Subsection (b)(2)(A) or (A-1), despite the educator ’s
 resignation from employment before completion of the investigation.
       (b-2)iiThe principal of a school district, district of innovation, [or]
 open-enrollment charter school, or other charter entity campus must notify the
 superintendent or director of the school district, district of innovation, [or] charter
 school, or other charter entity not later than the seventh business day after the
 date:
            (1)iiof an educator ’s termination of employment or resignation
 following an alleged incident of misconduct described by Subsection (b); or
            (2)iithe principal knew about an educator ’s criminal record under
 Subsection (b)(1).
       (c-1)iiThe report under Subsection (c):
            (1)iimust be:
                 (A)i[(1)]iiin writing; and
                 (B)i[(2)]iiin a form prescribed by the board; and
            (2)iimay be filed through the Internet portal developed and maintained
 by the State Board for Educator Certification under Subsection (g-1).
       (d)iiThe superintendent or director shall notify the board of trustees or
 governing body of the school district, open-enrollment charter school, other
 charter entity, regional education service center, or shared services arrangement
 and the educator of the filing of the report required by Subsection (c).
       (e)iiA superintendent, director, or principal of a school district, district of
 innovation, open-enrollment charter school, other charter entity, regional
 education service center, or shared services arrangement who in good faith and
 while acting in an official capacity files a report with the State Board for Educator
 Certification under this section or communicates with another superintendent,
 director, or principal concerning an educator ’s criminal record or alleged incident
 of misconduct is immune from civil or criminal liability that might otherwise be
 incurred or imposed.
       (g-1)iiThe State Board for Educator Certification shall develop and maintain
 an Internet portal through which a report required under Subsection (c) may be
 confidentially and securely filed.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                           6097

       (k)iiThe commissioner may review the records of a school district, district of
 innovation, open-enrollment charter school, other charter entity, regional
 education service center, or shared services arrangement to ensure compliance
 with the requirement to report misconduct under this section.
       SECTIONi2A.011.iiSection 21.0061, Education Code, is amended by
 amending Subsection (a) and adding Subsection (c) to read as follows:
       (a)iiThe board of trustees or governing body of a school district, district of
 innovation, open-enrollment charter school, other charter entity, regional
 education service center, or shared services arrangement shall adopt a policy
 under which notice is provided to the parent or guardian of a student with whom
 an educator is alleged to have engaged in misconduct described by Section
 21.006(b)(2)(A) or (A-1) informing the parent or guardian:
            (1)iithat the alleged misconduct occurred;
            (2)iiwhether the educator was terminated following an investigation of
 the alleged misconduct or resigned before completion of the investigation; and
            (3)iiwhether a report was submitted to the State Board for Educator
 Certification concerning the alleged misconduct.
       (c)iiIn this section, "other charter entity" has the meaning assigned by
 Section 21.006.
       SECTIONi2A.012.iiSubchapter B, Chapter 21, Education Code, is amended
 by adding Section 21.0585 to read as follows:
       Sec.i21.0585.iiNOTICE TO AGENCY REGARDING REVOCATION OF
 CERTIFICATE OR PERMIT FOR CERTAIN MISCONDUCT. The board shall
 promptly notify the agency for purposes of Section 22.092 if the board revokes a
 certificate or permit of a person on a finding that the person engaged in
 misconduct described by Section 21.006(b)(2)(A) or (A-1).
       SECTIONi2A.013.iiSubchapter C, Chapter 22, Education Code, is amended
 by adding Sections 22.0815 and 22.0825 to read as follows:
       Sec.i22.0815.iiAPPLICABILITY OF SUBCHAPTER TO DISTRICTS OF
 INNOVATION AND OTHER CHARTER ENTITIES. (a) In this section, "other
 charter entity" has the meaning assigned by Section 21.006.
       (b)iiA prohibition, restriction, or requirement imposed by this subchapter on
 an open-enrollment charter school applies to the same extent to a district of
 innovation or other charter entity.
       (c)iiThe failure of a district of innovation to provide information required
 under Section 22.0832 may result in termination of the district ’s designation as a
 district of innovation.
       Sec.i22.0825.iiACCESS TO CRIMINAL HISTORY RECORDS BY
 TEXAS EDUCATION AGENCY. (a) In this section, "other charter entity" has
 the meaning assigned by Section 21.006.
       (b)iiThe agency shall subscribe to the criminal history clearinghouse as
 provided by Section 411.0845, Government Code, and may obtain from any law
 enforcement or criminal justice agency all criminal history record information
 and all records contained in any closed criminal investigation file that relate to a
6098             86th LEGISLATURE — REGULAR SESSION

 specific applicant for employment or current or former employee of a school
 district, district of innovation, open-enrollment charter school, other charter
 entity, regional education service center, or shared services arrangement.
       SECTIONi2A.014.iiThe heading to Section 22.085, Education Code, is
 amended to read as follows:
       Sec.i22.085.iiEMPLOYEES AND APPLICANTS CONVICTED OF OR
 PLACED ON DEFERRED ADJUDICATION COMMUNITY SUPERVISION
 FOR CERTAIN OFFENSES.
       SECTIONi2A.015.iiSections 22.085(a) and (e), Education Code, are
 amended to read as follows:
       (a)iiA school district, open-enrollment charter school, or shared services
 arrangement shall discharge or refuse to hire an employee or applicant for
 employment if the district, school, or shared services arrangement obtains
 information through a criminal history record information review that[:
            [(1)]iithe employee or applicant has been:
            (1)iiconvicted of or placed on deferred adjudication community
 supervision for[:
                 [(A)iia felony offense under Title 5, Penal Code;
                 [(B)]iian offense for [on conviction of] which a defendant is
 required to register as a sex offender under Chapter 62, Code of Criminal
 Procedure; or
            (2)iiconvicted of:
                 (A)iia felony offense under Title 5, Penal Code, if the victim of the
 offense was under 18 years of age at the time the offense was committed; or
                 (B)i[(C)]iian offense under the laws of another state or federal law
 that is equivalent to an offense under Subdivision (1) or Paragraph (A) [or (B);
 and
            [(2)iiat the time the offense occurred, the victim of the offense described
 by Subdivision (1) was under 18 years of age or was enrolled in a public school].
       (e)iiThe State Board for Educator Certification may impose a sanction on an
 educator who does not discharge an employee or refuse to hire an applicant for
 employment if the educator knows or should have known, through a criminal
 history record information review, that the employee or applicant has been:
            (1)iiconvicted of or placed on deferred adjudication community
 supervision for an offense described by Subsection (a)(1); or
            (2)iiconvicted of an offense described by Subsection (a)(2) [(a)].
       SECTIONi2A.016.iiChapter 22, Education Code, is amended by adding
 Subchapter C-1 to read as follows:
   SUBCHAPTER C-1. PERSONS NOT ELIGIBLE FOR EMPLOYMENT IN
                                   PUBLIC SCHOOLS
       Sec.i22.091.iiDEFINITION. In this subchapter, "other charter entity" has the
 meaning assigned by Section 21.006.
       Sec.i22.092.iiREGISTRY OF PERSONS NOT ELIGIBLE FOR
 EMPLOYMENT IN PUBLIC SCHOOLS. (a) The agency shall maintain and
 make available through the Internet portal developed and maintained by the
 agency under Section 22.095 a registry of persons who are not eligible to be
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6099

 employed by a school district, district of innovation, open-enrollment charter
 school, other charter entity, regional education service center, or shared services
 arrangement.
       (b)iiA school district, district of innovation, open-enrollment charter school,
 other charter entity, regional education service center, or shared services
 arrangement shall discharge or refuse to hire a person listed on the registry
 maintained under this section.
       (c)iiThe registry maintained under this section must list the following
 persons as not eligible to be employed by public schools:
            (1)iia person determined by the agency under Section 22.0832 as a
 person who would not be eligible for educator certification under Subchapter B,
 Chapter 21;
            (2)iia person determined by the agency to be not eligible for
 employment based on the person ’s criminal history record information review, as
 provided by Section 22.0833;
            (3)iia person who is not eligible for employment based on criminal
 history record information received by the agency under Section 21.058(b);
            (4)iia person whose certification or permit issued under Subchapter B,
 Chapter 21, is revoked by the State Board for Educator Certification on a finding
 that the person engaged in misconduct described by Section 21.006(b)(2)(A) or
 (A-1); and
            (5)iia person who is determined by the commissioner under Section
 22.094 to have engaged in misconduct described by Section 22.093(c)(1)(A) or
 (B).
       (d)iiThe agency shall provide private schools and public schools equivalent
 access to the registry maintained under this section.
       (e)iiThe agency shall adopt rules as necessary to implement this section.
       S e c . i 2 2 . 0 9 3 . i i R E Q U I R E M E N T T O R E P O RT E M P L O Y E E
 MISCONDUCT. (a) In this section, "abuse" has the meaning assigned by
 Section 261.001, Family Code, and includes any sexual conduct involving a
 student or minor.
       (b)iiThis section applies to a person who is employed by a school district,
 district of innovation, open-enrollment charter school, other charter entity,
 regional education service center, or shared services arrangement and who does
 not hold a certification or permit issued under Subchapter B, Chapter 21.
       (c)iiIn addition to the reporting requirement under Section 261.101, Family
 Code, the superintendent or director of a school district, district of innovation,
 open-enrollment charter school, other charter entity, regional education service
 center, or shared services arrangement shall notify the commissioner if:
            (1)iian employee ’s employment at the school district, district of
 innovation, charter school, other charter entity, service center, or shared services
 arrangement was terminated and there is evidence that the employee:
                   (A)iiabused or otherwise committed an unlawful act with a student
 or minor; or
                   (B)iiwas involved in a romantic relationship with or solicited or
 engaged in sexual contact with a student or minor; or
6100             86th LEGISLATURE — REGULAR SESSION

            (2)iithe employee resigned and there is evidence that the employee
 engaged in misconduct described by Subdivision (1).
       (d)iiA superintendent or director of a school district, district of innovation,
 open-enrollment charter school, other charter entity, regional education service
 center, or shared services arrangement shall complete an investigation of an
 employee that involves evidence that the employee may have engaged in
 misconduct described by Subsection (c)(1)(A) or (B), despite the employee ’s
 resignation from employment before completion of the investigation.
       (e)iiThe principal of a school district, district of innovation, open-enrollment
 charter school, or other charter entity campus must notify the superintendent or
 director of the school district, district of innovation, charter school, or other
 charter entity not later than the seventh business day after the date of an
 employee ’s termination of employment or resignation following an alleged
 incident of misconduct described by Subsection (c)(1)(A) or (B).
       (f)iiThe superintendent or director must notify the commissioner by filing a
 report with the commissioner not later than the seventh business day after the date
 the superintendent or director receives a report from a principal under Subsection
 (e) or knew about an employee ’s termination of employment or resignation
 following an alleged incident of misconduct described by Subsection (c)(1)(A) or
 (B). The report must be:
            (1)iiin writing; and
            (2)iiin a form prescribed by the commissioner.
       (g)iiThe superintendent or director shall notify the board of trustees or
 governing body of the school district, district of innovation, open-enrollment
 charter school, other charter entity, regional education service center, or shared
 services arrangement and the employee of the filing of the report required by
 Subsection (f).
       (h)iiA superintendent or director who in good faith and while acting in an
 official capacity files a report with the commissioner under Subsection (f) or a
 principal who in good faith and while acting in an official capacity notifies a
 superintendent or director under Subsection (e) is immune from civil or criminal
 liability that might otherwise be incurred or imposed.
       (i)iiThe commissioner shall refer an educator who fails to file a report in
 violation of Subsection (f) to the State Board for Educator Certification, and the
 board shall determine whether to impose sanctions against the educator.
       (j)iiThe name of a student or minor who is the victim of abuse or unlawful
 conduct by an employee must be included in a report filed under this section, but
 the name of the student or minor is not public information under Chapter 552,
 Government Code.
       (k)iiA superintendent or director required to file a report under Subsection
 (f) commits an offense if the superintendent or director fails to file the report by
 the date required by that subsection with intent to conceal an employee s’ criminal
 record or alleged incident of misconduct. A principal required to notify a
 superintendent or director about an employee ’s alleged incident of misconduct
 under Subsection (e) commits an offense if the principal fails to provide the
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6101

 notice by the date required by that subsection with intent to conceal an
 employee ’s alleged incident of misconduct. An offense under this subsection is a
 state jail felony.
       (l)iiThe commissioner may review the records of a school district, district of
 innovation, open-enrollment charter school, other charter entity, regional
 education service center, or shared services arrangement to ensure compliance
 with the requirement to report misconduct under this section.
       (m)iiThe commissioner shall adopt rules as necessary to implement this
 section.
       S e c . i 2 2 . 0 9 4 . i i N O T I C E O F A L L E G E D M I S C O N D U C T;
 INVESTIGATION; HEARING. (a) A person described by Section 22.093(b)
 and who is the subject of a report that alleges misconduct described by Section
 22.093(c)(1)(A) or (B) is entitled to a hearing on the merits of the allegations of
 misconduct under the procedures provided by Chapter 2001, Government Code,
 to contest the allegation in the report.
       (b)iiOn receiving a report filed under Section 22.093(f), the commissioner
 shall promptly send to the person who is the subject of the report a notice that
 includes:
            (1)iia statement informing the person that the person must request a
 hearing on the merits of the allegations of misconduct within the period provided
 by Subsection (c);
            (2)iia request that the person submit a written response within the period
 provided by Subsection (c) to show cause why the commissioner should not
 pursue an investigation; and
            (3)iia statement informing the person that if the person does not timely
 submit a written response to show cause as provided by Subdivision (2), the
 agency shall provide information indicating the person is under investigation in
 the manner provided by Subsection (d).
       (c)iiA person entitled to a hearing under Subsection (a) must request a
 hearing and submit a written response to show cause not later than the 10th day
 after the date the person receives the notice from the commissioner provided
 under Subsection (b).
       (d)iiIf a person who receives notice provided under Subsection (b) does not
 timely submit a written response to show cause why the commissioner should not
 pursue an investigation, the commissioner shall instruct the agency to make
 available through the Internet portal developed and maintained by the agency
 under Section 22.095 information indicating that the person is under investigation
 for alleged misconduct.
       (e)iiIf a person entitled to a hearing under Subsection (a) does not request a
 hearing as provided by Subsection (c), the commissioner shall:
             (1)iibased on the report filed under Section 22.093(f), make a
 determination whether the person engaged in misconduct; and
             (2)iiif the commissioner determines that the person engaged in
 misconduct described by Section 22.093(c)(1)(A) or (B), instruct the agency to
 add the person ’s name to the registry maintained under Section 22.092.
6102             86th LEGISLATURE — REGULAR SESSION

       (f)iiIf a person entitled to a hearing under Subsection (a) requests a hearing
 as provided by Subsection (c) and the final decision in that hearing determines
 that the person engaged in misconduct described by Section 22.093(c)(1)(A) or
 (B), the commissioner shall instruct the agency to add the person ’s name to the
 registry maintained under Section 22.092.
       (g)iiIf a person entitled to a hearing under Subsection (a) requests a hearing
 as provided by Subsection (c) and the final decision in that hearing determines
 that the person did not engage in misconduct described by Section
 22.093(c)(1)(A) or (B), the commissioner shall instruct the agency to
 immediately remove from the Internet portal developed and maintained by the
 agency under Section 22.095 the information indicating that the person is under
 investigation for alleged misconduct.
       (h)iiThe commissioner shall adopt rules as necessary to implement this
 section.
       Sec.i22.095.iiINTERNET PORTAL. The agency shall develop and maintain
 an Internet portal through which:
             (1)iia report required under Section 22.093(f) may be confidentially and
 securely filed; and
             (2)iithe agency makes available:
                  (A)iithe registry of persons who are not eligible to be employed in
 public schools as described by Section 22.092; and
                  (B)iiinformation indicating that a person is under investigation for
 alleged misconduct in accordance with Section 22.094(d), provided that the
 agency must provide the information through a procedure other than the registry
 described under Paragraph (A).
       Sec.i22.096.iiCOMPLIANCE MONITORING. The agency shall
 periodically conduct site visits and review the records of school districts, districts
 of innovation, open-enrollment charter schools, other charter entities, regional
 education service centers, and shared services arrangements to ensure compliance
 with Section 22.092(b).
       SECTIONi2A.017.iiSection 39.0302(a), Education Code, is amended to
 read as follows:
       (a)iiDuring an agency investigation or audit of a school district under
 Section 39.0301(e) or (f), an accreditation investigation under Section
 39.057(a)(8) or (14), a compliance review under Section 21.006(k), 22.093(l), or
 22.096, or an investigation by the State Board for Educator Certification of an
 educator for an alleged violation of an assessment instrument security procedure
 established under Section 39.0301(a), the commissioner may issue a subpoena to
 compel the attendance of a relevant witness or the production, for inspection or
 copying, of relevant evidence that is located in this state.
                        ARTICLE 3. CONFORMING CHANGES
       SECTIONi3.001.iiSections 7.055(b)(34) and (35), Education Code, are
 amended to read as follows:
             (34)iiThe commissioner shall perform duties in connection with the
 options for local revenue levels in excess of entitlement [equalized wealth level]
 under Chapter 49 [41].
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6103

             (35)iiThe commissioner shall perform duties in connection with the
 Foundation School Program as prescribed by Chapter 48 [42].
       SECTIONi3.002.iiSections 7.062(a) and (c), Education Code, are amended
 to read as follows:
       (a)iiIn 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 [42.2521], divided by the district ’s
 average daily attendance as determined under Section 48.005 [42.005].
       (c)iiExcept 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 48 [42] that permits or
 directs the use of excess foundation school program funds, including Sections
 48.258 [42.2517, 42.2521], 48.259 [42.2522], and 48.267 [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 48.266(f) [42.253(h)].
       SECTIONi3.003.iiSection 7.102(c)(30), Education Code, is amended to
 read as follows:
             (30)iiThe board shall perform duties in connection with the Foundation
 School Program as prescribed by Chapter 48 [42].
       SECTIONi3.004.iiSection 8.051(d), Education Code, is amended to read as
 follows:
       (d)iiEach regional education service center shall maintain core services for
 purchase by school districts and campuses. The core services are:
             (1)iitraining and assistance in:
                  (A)iiteaching each subject area assessed under Section 39.023; and
                  (B)iiproviding instruction in personal financial literacy as required
 under Section 28.0021;
             (2)iitraining and assistance in providing a gifted and talented program
 and each program that qualifies for a funding allotment under Section
 48.102i[42.151], 48.104 [42.152], or 48.105 [42.153, or 42.156];
             (3)iiassistance specifically designed for a school district or campus
 assigned an unacceptable performance rating under Section 39.054;
             (4)iitraining and assistance to teachers, administrators, members of
 district boards of trustees, and members of site-based decision-making
 committees;
             (5)iiassistance specifically designed for a school district that is
 considered out of compliance with state or federal special education
 requirements, based on the agency ’s most recent compliance review of the
 district ’s special education programs; and
             (6)iiassistance in complying with state laws and rules.
6104             86th LEGISLATURE — REGULAR SESSION

       SECTIONi3.005.iiSection 8.056, Education Code, is amended to read as
 follows:
       Sec.i8.056.iiLIMITATION ON COMPENSATION FOR CERTAIN
 SERVICES. A regional education service center that acts as a fiscal agent or
 broker in connection with an agreement between two school districts under
 Subchapter E, Chapter 49 [41], may not, unless authorized in writing by the
 district receiving transferred funds in accordance with the agreement:
            (1)iibe compensated by the districts in an amount that exceeds the
 administrative cost of providing the service; or
            (2)iiotherwise retain for use by the center any amount other than the
 compensation permitted under Subdivision (1) from the funds transferred
 between the districts in accordance with the agreement.
       SECTIONi3.006.iiSection 11.158(a), Education Code, is amended to read as
 follows:
       (a)iiThe board of trustees of an independent school district may require
 payment of:
            (1)iia 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)iimembership dues in student organizations or clubs and admission
 fees or charges for attending extracurricular activities, if membership or
 attendance is voluntary;
            (3)iia security deposit for the return of materials, supplies, or equipment;
            (4)iia 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)iia 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)iia fee specifically permitted by any other statute;
            (7)iia fee for an authorized voluntary student health and accident benefit
 plan;
            (8)iia 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)iia fee for items of personal apparel that become the property of the
 student and that are used in extracurricular activities;
            (10)iia parking fee or a fee for an identification card;
            (11)iia fee for a driver training course, not to exceed the actual district
 cost per student in the program for the current school year;
            (12)iia 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;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6105

             (13)iia 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)iia 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 48.151(d) [42.155(d)];
             (15)iia 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)iiif the district does not receive any funds under Section
 48.151i[42.155] and does not participate in a county transportation system for
 which an allotment is provided under Section 48.151(i) [42.155(i)], a reasonable
 fee for the transportation of a student to and from the school the student attends.
       SECTIONi3.007.iiSection 11.174(a), Education Code, is amended to read as
 follows:
       (a)iiA school district campus qualifies for an exemption from intervention as
 provided by Subsection (f) and qualifies for funding as provided by Section
 48.252i[42.2511] if the board of trustees of the district contracts to partner to
 operate the district campus as provided by this section with:
             (1)iithe governing body of an open-enrollment charter school; or
             (2)iion approval by the commissioner, an entity granted a charter by the
 district under Subchapter C, Chapter 12, that is eligible to be awarded a charter
 under Section 12.101(a).
       SECTIONi3.008.iiSection 12.013(b), Education Code, is amended to read as
 follows:
       (b)iiA home-rule school district is subject to:
             (1)iia provision of this title establishing a criminal offense;
             (2)iia provision of this title relating to limitations on liability; and
             (3)iia prohibition, restriction, or requirement, as applicable, imposed by
 this title or a rule adopted under this title, relating to:
                  (A)iithe Public Education Information Management System
 (PEIMS) to the extent necessary to monitor compliance with this subchapter as
 determined by the commissioner;
                  (B)iieducator certification under Chapter 21 and educator rights
 under Sections 21.407, 21.408, and 22.001;
                  (C)iicriminal history records under Subchapter C, Chapter 22;
                  (D)iistudent admissions under Section 25.001;
                  (E)iischool attendance under Sections 25.085, 25.086, and 25.087;
                  (F)iiinter-district or inter-county transfers of students under
 Subchapter B, Chapter 25;
                  (G)iielementary class size limits under Section 25.112, in the case
 of any campus in the district that fails to satisfy any standard under Section
 39.054(e);
6106             86th LEGISLATURE — REGULAR SESSION

                 (H)iihigh school graduation under Section 28.025;
                 (I)iispecial education programs under Subchapter A, Chapter 29;
                 (J)iibilingual education under Subchapter B, Chapter 29;
                 (K)iiprekindergarten programs under Subchapter E, Chapter 29;
                 (L)iisafety provisions relating to the transportation of students under
 Sections 34.002, 34.003, 34.004, and 34.008;
                 (M)iicomputation and distribution of state aid under Chapters 31,
 [42, and] 43, and 48;
                 (N)iiextracurricular activities under Section 33.081;
                 (O)iihealth and safety under Chapter 38;
                 (P)iipublic school accountability under Subchapters B, C, D, and J,
 Chapter 39, and Chapter 39A;
                 (Q)iioptions for local revenue levels in excess of entitlement
 [equalized wealth] under Chapter 49 [41];
                 (R)iia bond or other obligation or tax rate under Chapters [42,] 43,
 [and] 45, and 48; and
                 (S)iipurchasing under Chapter 44.
       SECTIONi3.009.iiSection 12.029(b), Education Code, is amended to read as
 follows:
       (b)iiExcept as provided by Subchapter H, Chapter 49 [41], if two or more
 school districts having different status, one of which is home-rule school district
 status, consolidate into a single district, the petition under Section
 13.003iinitiating the consolidation must state the status for the consolidated
 district. The ballot shall be printed to permit voting for or against the proposition:
 "Consolidation of (names of school districts) into a single school district
 governed as (status of school district specified in the petition)."
       SECTIONi3.010.iiSection 13.051(c), Education Code, is amended to read as
 follows:
       (c)iiTerritory that does not have residents may be detached from a school
 district and annexed to another school district if:
            (1)iithe 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)iifive percent of the district ’s taxable value of all property in that
 district as determined under Subchapter M, Chapter 403, Government Code; and
                 (B)ii$5,000 property value per student in average daily attendance
 as determined under Section 48.005 [42.005]; and
            (2)iithe school district from which the property will be detached does
 not own any real property located in the territory.
       SECTIONi3.011.iiSection 13.054(i), Education Code, is amended to read as
 follows:
       (i)iiThe funding provided under Subsection (f), (g), or (h) is in addition to
 other funding the district receives through other provisions of this code, including
 Chapters 48 [41] and 49 [42].
       SECTIONi3.012.iiSections 13.282(a) and (b), Education Code, are amended
 to read as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6107

       (a)iiThe amount of incentive aid payments may not exceed the difference
 between:
            (1)iithe sum of the entitlements computed under Section
 48.266i[42.253] that would have been paid to the districts included in the
 reorganized district if the districts had not been consolidated; and
            (2)iithe amount to which the reorganized district is entitled under
 Section 48.266i[42.253].
       (b)iiIf the reorganized district is not eligible for an entitlement under Section
 48.266i[42.253], the amount of the incentive aid payments may not exceed the
 sum of the entitlements computed under Section 48.266i[42.253] for which the
 districts included in the reorganized district were eligible in the school year when
 they were consolidated.
       SECTIONi3.013.iiSection 13.283, Education Code, is amended to read as
 follows:
       Sec.i13.283.iiPAYMENTS REDUCED. The incentive aid payments shall be
 reduced in direct proportion to any reduction in the average daily attendance as
 determined under Section 48.005 [42.005] of the reorganized school district for
 the preceding year.
       SECTIONi3.014.iiSection 21.402(a), Education Code, is amended to read as
 follows:
       (a)iiExcept as provided by Subsection (e-1) or (f), a school district must pay
 each classroom teacher, full-time librarian, full-time school counselor certified
 under Subchapter B, or full-time school nurse not less than the minimum monthly
 salary, based on the employee ’s level of experience in addition to other factors, as
 determined by commissioner rule, determined by the following formula:
                                       MS = SF x FS
 where:
       "MS" is the minimum monthly salary;
       "SF" is the applicable salary factor specified by Subsection (c); and
       "FS" is the amount, as determined by the commissioner under Subsection
 (b), of the basic allotment as provided by Section 48.051(a) [42.101(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) [42.101(a)].
       SECTIONi3.015.iiSection 21.4021(a), Education Code, is amended to read
 as follows:
       (a)iiNotwithstanding Section 21.401 and subject to Section 21.4022, the
 board of trustees of a school district may, in accordance with district policy,
 implement a furlough program and reduce the number of days of service
 otherwise required under Section 21.401 by not more than six days of service
 during a school year if the commissioner certifies in accordance with Section
 48.010 [42.009] that the district will be provided with less state and local funding
 for that year than was provided to the district for the 2010-2011 school year.
       SECTIONi3.016.iiSection 25.001(a), Education Code, is amended to read as
 follows:
6108             86th LEGISLATURE — REGULAR SESSION

       (a)iiA person who, on the first day of September of any school year, is at
 least five years of age and under 21 years of age, or is at least 21 years of age and
 under 26 years of age and is admitted by a school district to complete the
 requirements for a high school diploma is entitled to the benefits of the available
 school fund for that year. Any other person enrolled in a prekindergarten class
 under Section 29.153 [or Subchapter E-1, Chapter 29,] is entitled to the benefits
 of the available school fund.
       SECTIONi3.017.iiSection 25.008(b), Education Code, is amended to read as
 follows:
       (b)iiSubsection (a) does not apply to enrollment in a program under Section
 29.088 or [,] 29.090[, or 29.098] or in a similar intensive program.
       SECTIONi3.018.iiSection 25.081(e), Education Code, is amended to read as
 follows:
       (e)iiA school district or education program is exempt from the minimum
 minutes of operation requirement if the district ’s or program ’s average daily
 attendance is calculated under Section 48.005(j) [42.005(j)].
       SECTIONi3.019.iiSection 25.081(f), Education Code, as added by Chapter
 851 (HBi2442), Acts of the 85th Legislature, Regular Session, 2017, is amended
 to read as follows:
       (f)iiThe commissioner may proportionally reduce the amount of funding a
 district receives under Chapter [41, 42, or] 46, 48, or 49 and the average daily
 attendance calculation for the district if the district operates on a calendar that
 provides fewer minutes of operation than required under Subsection (a).
       SECTIONi3.020.iiSections 25.112(a) and (b), Education Code, are amended
 to read as follows:
       (a)iiExcept as otherwise authorized by this section, a school district may not
 enroll more than 22 students in a kindergarten, first, second, third, or fourth grade
 class. That limitation does not apply during:
            (1)iiany 12-week period of the school year selected by the district, in the
 case of a district whose average daily attendance is adjusted under Section
 48.005(c) [42.005(c)]; or
            (2)iithe last 12 weeks of any school year in the case of any other district.
       (b)iiNot later than the 30th day after the first day of the 12-week period for
 which a district whose average daily attendance is adjusted under Section
 48.005(c) [42.005(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.
       SECTIONi3.021.iiSection 28.0061(b), Education Code, is amended to read
 as follows:
       (b)iiA school district is eligible to participate in the pilot program if, as
 determined by the commissioner, the district has low student performance on:
            (1)iia reading instrument administered in accordance with Section
 28.006(c) or (c-2); or
            (2)iia third grade reading assessment instrument administered under
 Section 39.023(a).
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6109

       SECTIONi3.022.iiSection 28.0211(m-1), Education Code, is amended to
 read as follows:
       (m-1)iiFor purposes of certification under Subsection (m), the commissioner
 may not consider Foundation School Program funds except for compensatory
 education funds under Section 48.104 [42.152].iiThis section may be
 implemented only if the commissioner certifies that sufficient funds have been
 appropriated during a school year for administering the accelerated instruction
 programs specified under this section and Section 28.0217, including teacher
 training for that purpose.
       SECTIONi3.023.iiSection 29.001, Education Code, is amended to read as
 follows:
       Sec.i29.001.iiSTATEWIDE PLAN.iiThe agency shall develop, and modify
 as necessary, a statewide design, consistent with federal law, for the delivery of
 services to children with disabilities in this state that includes rules for the
 administration and funding of the special education program so that a free
 appropriate public education is available to all of those children between the ages
 of three and 21.iiThe statewide design shall include the provision of services
 primarily through school districts and shared services arrangements,
 supplemented by regional education service centers.iiThe agency shall also
 develop and implement a statewide plan with programmatic content that includes
 procedures designed to:
            (1)iiensure state compliance with requirements for supplemental federal
 funding for all state-administered programs involving the delivery of instructional
 or related services to students with disabilities;
            (2)iifacilitate interagency coordination when other state agencies are
 involved in the delivery of instructional or related services to students with
 disabilities;
            (3)iiperiodically assess statewide personnel needs in all areas of
 specialization related to special education and pursue strategies to meet those
 needs through a consortium of representatives from regional education service
 centers, local education agencies, and institutions of higher education and
 through other available alternatives;
            (4)iiensure that regional education service centers throughout the state
 maintain a regional support function, which may include direct service delivery
 and a component designed to facilitate the placement of students with disabilities
 who cannot be appropriately served in their resident districts;
            (5)iiallow the agency to effectively monitor and periodically conduct
 site visits of all school districts to ensure that rules adopted under this section are
 applied in a consistent and uniform manner, to ensure that districts are complying
 with those rules, and to ensure that annual statistical reports filed by the districts
 and not otherwise available through the Public Education Information
 Management System under Sections 48.008 and 48.009 [Section 42.006] are
 accurate and complete;
6110            86th LEGISLATURE — REGULAR SESSION

           (6)iiensure that appropriately trained personnel are involved in the
 diagnostic and evaluative procedures operating in all districts and that those
 personnel routinely serve on district admissions, review, and dismissal
 committees;
           (7)iiensure that an individualized education program for each student
 with a disability is properly developed, implemented, and maintained in the least
 restrictive environment that is appropriate to meet the student ’s educational
 needs;
           (8)iiensure that, when appropriate, each student with a disability is
 provided an opportunity to participate in career and technology and physical
 education classes, in addition to participating in regular or special classes;
           (9)iiensure that each student with a disability is provided necessary
 related services;
           (10)iiensure that an individual assigned to act as a surrogate parent for a
 child with a disability, as provided by 20iU.S.C.iSection 1415(b), is required to:
                (A)iicomplete a training program that complies with minimum
 standards established by agency rule;
                (B)iivisit the child and the child ’s school;
                (C)iiconsult with persons involved in the child ’s education,
 including teachers, caseworkers, court-appointed volunteers, guardians ad litem,
 attorneys ad litem, foster parents, and caretakers;
                (D)iireview the child ’s educational records;
                (E)iiattend meetings of the child ’s admission, review, and dismissal
 committee;
                (F)iiexercise independent judgment in pursuing the child ’s interests;
 and
                (G)iiexercise the child ’s due process rights under applicable state
 and federal law; and
           (11)iiensure that each district develops a process to be used by a teacher
 who instructs a student with a disability in a regular classroom setting:
                (A)iito request a review of the student ’s individualized education
 program;
                (B)iito provide input in the development of the student ’s
 individualized education program;
                (C)iithat provides for a timely district response to the teacher ’s
 request; and
                (D)iithat provides for notification to the student ’s parent or legal
 guardian of that response.
       SECTIONi3.024.iiSection 29.002, Education Code, is amended to read as
 follows:
       Sec.i29.002.iiDEFINITION. In this subchapter, "special services" means:
            (1)iispecial education instruction, which may be provided by
 professional and supported by paraprofessional personnel in the regular
 classroom or in an instructional arrangement described by Section
 48.102i[42.151]; and
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                              6111

            (2)iirelated services, which are developmental, corrective, supportive, or
 evaluative services, not instructional in nature, that may be required for the
 student to benefit from special education instruction and for implementation of a
 student ’s individualized education program.
       SECTIONi3.025.iiSection 29.008(b), Education Code, is amended to read as
 follows:
       (b)iiExcept 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 [42.252], divided by the average daily attendance in the district. If the
 contract involves a private facility, the state share of the total contract cost is that
 amount remaining after subtracting the local share. If the contract involves a
 public facility, the state share is that amount remaining after subtracting the local
 share from the portion of the contract that involves the costs of instructional and
 related services. For purposes of this subsection, "local tax effort" means the total
 amount of money generated by taxes imposed for debt service and maintenance
 and operation less any amounts paid into a tax increment fund under Chapter 311,
 Tax Code.
       SECTIONi3.026.iiSection 29.014(d), Education Code, is amended to read as
 follows:
       (d)iiThe basic allotment for a student enrolled in a district to which this
 section applies is adjusted by[:
            [(1)iithe cost of education adjustment under Section 42.102 for the
 school district in which the district is geographically located; and
            [(2)]iithe weight for a homebound student under Section 48.102(a)
 [42.151(a)].
       SECTIONi3.027.iiSection 29.018(b), Education Code, is amended to read as
 follows:
       (b)iiA school district is eligible to apply for a grant under this section if:
            (1)iithe district does not receive sufficient funds, including state funds
 provided under Section 48.102 [42.151] and federal funds, for a student with
 disabilities to pay for the special education services provided to the student; or
            (2)iithe district does not receive sufficient funds, including state funds
 provided under Section 48.102 [42.151] and federal funds, for all students with
 disabilities in the district to pay for the special education services provided to the
 students.
       SECTIONi3.028.iiSection 29.022(u)(3), Education Code, is amended to
 read as follows:
            (3)ii"Self-contained classroom" does not include a classroom that is a
 resource room instructional arrangement under Section 48.102 [42.151].
       SECTIONi3.029.iiSection 29.081(b-2), Education Code, is amended to read
 as follows:
6112            86th LEGISLATURE — REGULAR SESSION

       (b-2)iiA district that is required to provide accelerated instruction under
 Subsection (b-1) shall separately budget sufficient funds, including funds under
 Section 48.104 [42.152], for that purpose. [A district may not budget funds
 received under Section 42.152 for any other purpose until the district adopts a
 budget to support additional accelerated instruction under Subsection (b-1).]
       SECTIONi3.030.iiSection 29.082(a), Education Code, is amended to read as
 follows:
       (a)iiA school district may set aside an amount from the district ’s allotment
 under Section 48.104 [42.152] or may apply to the agency for funding of an
 extended year program for a period not to exceed 30 instructional days for
 students in:
            (1)iikindergarten through grade 11 who are identified as likely not to be
 promoted to the next grade level for the succeeding school year; or
            (2)iigrade 12 who are identified as likely not to graduate from high
 school before the beginning of the succeeding school year.
       SECTIONi3.031.iiSection 29.086(e), Education Code, is amended to read as
 follows:
       (e)iiThe amount of a grant under this section must take into account funds
 distributed to the school district under Chapter 48 [42].
       SECTIONi3.032.iiSections 29.087(h) and (j), Education Code, are amended
 to read as follows:
       (h)iiA student who has received a high school equivalency certificate is
 entitled to enroll in a public school as authorized by Section 25.001 and is
 entitled to the benefits of the Foundation School Program under Section
 48.003i[42.003] in the same manner as any other student who has not received a
 high school diploma.
       (j)iiFor purposes of funding under Chapters [41, 42, and] 46, 48, and 49, a
 student attending a program authorized by this section may be counted in
 attendance only for the actual number of hours each school day the student
 attends the program, in accordance with Section 25.081.
       SECTIONi3.033.iiSection 29.089(b), Education Code, is amended to read as
 follows:
       (b)iiThe commissioner, in consultation with the governor, lieutenant
 governor, and speaker of the house of representatives, by rule shall determine
 accountability standards under this section for a school district providing a
 mentoring services program using funds allocated under Section 48.104 [42.152].
       SECTIONi3.034.iiSections 29.203(b) and (c), Education Code, are amended
 to read as follows:
       (b)iiA school district is entitled to the allotment provided by Section
 48.107i[42.157] for each eligible student using a public education grant. If the
 district has a local revenue level [wealth per student] greater than the guaranteed
 local revenue [wealth] level but less than the [equalized wealth] level established
 under Section 48.257, a school district is entitled under rules adopted by the
 commissioner to additional state aid in an amount equal to the difference between
 the cost to the district of providing services to a student using a public education
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6113

 grant and the sum of the state aid received because of the allotment under Section
 48.107i[42.157] and money from the available school fund attributable to the
 student.
       (c)iiA school district is entitled to additional facilities assistance under
 Section 48.301 [42.4101] if the district agrees to:
            (1)iiaccept a number of students using public education grants that is at
 least one percent of the district ’s average daily attendance for the preceding
 school year; and
            (2)iiprovide services to each student until the student either voluntarily
 decides to attend a school in a different district or graduates from high school.
       SECTIONi3.035.iiSection 29.203(g)(2), Education Code, is amended to
 read as follows:
            (2)ii"Guaranteed local revenue [wealth] level" means a local revenue
 level [wealth per student] equal to the dollar amount guaranteed level of state and
 local funds per weighted student per cent of tax effort, as provided by Section
 48.202 [42.302], multiplied by 10,000.
       SECTIONi3.036.iiSection 29.403(b), Education Code, is amended to read as
 follows:
       (b)iiA student who is enrolled in a program under this subchapter is included
 in determining the average daily attendance under Section 48.005 [42.005] of the
 partnering school district.
       SECTIONi3.037.iiSections 29.918(a) and (b), Education Code, are amended
 to read as follows:
       (a)iiNotwithstanding Section 48.104 [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 48.104 [42.152 and the high school allotment under
 Section 42.160] for developing and implementing research-based strategies for
 dropout prevention.iiThe 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)iiA 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).iiThe
 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.
       SECTIONi3.038.iiSection 30A.002(a), Education Code, is amended to read
 as follows:
       (a)iiA student is eligible to enroll in a course provided through the state
 virtual school network only if the student:
            (1)iion September 1 of the school year:
6114            86th LEGISLATURE — REGULAR SESSION

                 (A)iiis younger than 21 years of age; or
                 (B)iiis younger than 26 years of age and entitled to the benefits of
 the Foundation School Program under Section 48.003 [42.003];
            (2)iihas not graduated from high school; and
            (3)iiis otherwise eligible to enroll in a public school in this state.
       SECTIONi3.039.iiSection 30A.153(a), Education Code, is amended to read
 as follows:
       (a)iiSubject to the limitation imposed under Subsection (a-1), a school
 district or open-enrollment charter school in which a student is enrolled is entitled
 to funding under Chapter 48 [42] or in accordance with the terms of a charter
 granted under Section 12.101 for the student ’s enrollment in an electronic course
 offered through the state virtual school network in the same manner that the
 district or school is entitled to funding for the student ’s enrollment in courses
 provided in a traditional classroom setting, provided that the student successfully
 completes the electronic course.
       SECTIONi3.040.iiSection 34.002(c), Education Code, is amended to read as
 follows:
       (c)iiA 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 48.151 [42.155] until the first anniversary
 of the date the district begins complying with the safety standards.
       SECTIONi3.041.iiSection 37.0061, Education Code, is amended to read as
 follows:
       Sec.i37.0061.iiFUNDING FOR ALTERNATIVE EDUCATION SERVICES
 IN JUVENILE RESIDENTIAL FACILITIES. A school district that provides
 education services to pre-adjudicated and post-adjudicated students who are
 confined by court order in a juvenile residential facility operated by a juvenile
 board is entitled to count such students in the district ’s average daily attendance
 for purposes of receipt of state funds under the Foundation School Program. If the
 district has a local revenue level [wealth per student] greater than the guaranteed
 local revenue [wealth] level but less than the [equalized wealth] level established
 under Section 48.257, the district in which the student is enrolled on the date a
 court orders the student to be confined to a juvenile residential facility shall
 transfer to the district providing education services an amount equal to the
 difference between the average Foundation School Program costs per student of
 the district providing education services and the sum of the state aid and the
 money from the available school fund received by the district that is attributable
 to the student for the portion of the school year for which the district provides
 education services to the student.
       SECTIONi3.042.iiSection 37.011(h), Education Code, is amended to read as
 follows:
       (h)iiAcademically, the mission of juvenile justice alternative education
 programs shall be to enable students to perform at grade level.iiFor purposes of
 accountability under Chapters 39 and 39A, a student enrolled in a juvenile justice
 alternative education program is reported as if the student were enrolled at the
 student ’s assigned campus in the student ’s regularly assigned education program,
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6115

 including a special education program.iiAnnually the Texas Juvenile Justice
 Department, with the agreement of the commissioner, shall develop and
 implement a system of accountability consistent with Chapters 39 and 39A,
 where appropriate, to assure that students make progress toward grade level while
 attending a juvenile justice alternative education program.iiThe department shall
 adopt rules for the distribution of funds appropriated under this section to juvenile
 boards in counties required to establish juvenile justice alternative education
 programs.iiExcept as determined by the commissioner, a student served by a
 juvenile justice alternative education program on the basis of an expulsion
 required under Section 37.007(a), (d), or (e) is not eligible for Foundation School
 Program funding under Chapter [42 or] 31 or 48 if the juvenile justice alternative
 education program receives funding from the department under this subchapter.
      SECTIONi3.043.iiSection 39.0233(a), Education Code, is amended to read
 as follows:
       (a)iiThe 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 Subchapter F-1, Chapter 51. The questions adopted under
 this subsection must be developed in a manner consistent with any college
 readiness standards adopted under [Section 39.233 and] Subchapter F-1, Chapter
 51.
      SECTIONi3.044.iiSection 39.027(f), Education Code, is amended to read as
 follows:
      (f)iiIn this section, "average daily attendance" is computed in the manner
 provided by Section 48.005 [42.005].
      SECTIONi3.045.iiSection 39.408, Education Code, is amended to read as
 follows:
       Sec.i39.408.iiELIGIBILITY CRITERIA FOR CERTAIN GRANT
 PROGRAMS. A school district or campus is eligible to participate in programs
 under Sections 21.4541, 29.095, and 29.096[, 29.097, and 29.098] if the district
 or campus exhibited during each of the three preceding school years
 characteristics that strongly correlate with high dropout rates.
      SECTIONi3.046.iiSection 39.413, Education Code, is amended to read as
 follows:
      Sec.i39.413.iiFUNDING FOR CERTAIN PROGRAMS. (a) From funds
 appropriated, the Texas Higher Education Coordinating Board shall allocate
 $8.75imillion each year to establish mathematics, science, and technology teacher
 preparation academies under Section 61.0766[, provide funding to the
 commissioner of education to implement and administer the program under
 Section 29.098,] and award grants under Section 61.0762(a)(3).
      (b)iiThe Texas Higher Education Coordinating Board shall establish
 mathematics, science, and technology teacher preparation academies under
 Section 61.0766[, provide funding to the commissioner of education to
 implement and administer the program under Section 29.098,] and award grants
6116             86th LEGISLATURE — REGULAR SESSION

 under Section 61.0762(a)(3) in a manner consistent with the goals of this
 subchapter and the goals in "Closing the Gaps," the state ’s master plan for higher
 education.
       SECTIONi3.047.iiSection 39A.903, Education Code, is amended to read as
 follows:
       Sec.i39A.903.iiCOSTS PAID BY SCHOOL DISTRICT.iiThe costs of
 providing a monitor, conservator, management team, campus intervention team,
 technical assistance team, managing entity, or service provider under this chapter
 shall be paid by the school district.iiIf the district fails or refuses to pay the costs
 in a timely manner, the commissioner may:
            (1)iipay the costs using amounts withheld from any funds to which the
 district is otherwise entitled; or
            (2)iirecover the amount of the costs in the manner provided for recovery
 of an overallocation of state funds under Section 48.272 [42.258].
       SECTIONi3.048.iiSection 43.002(b), Education Code, is amended to read as
 follows:
       (b)iiOf the amounts available for transfer from the general revenue fund to
 the available school fund for the months of January and February of each fiscal
 year, no more than the amount necessary to enable the comptroller to distribute
 from the available school fund an amount equal to 9-1/2 percent of the estimated
 annual available school fund apportionment to category 1 school districts, as
 defined by Section 48.273 [42.259], and 3-1/2 percent of the estimated annual
 available school fund apportionment to category 2 school districts, as defined by
 Section 48.273 [42.259], may be transferred from the general revenue fund to the
 available school fund. Any remaining amount that would otherwise be available
 for transfer for the months of January and February shall be transferred from the
 general revenue fund to the available school fund in equal amounts in June and in
 August of the same fiscal year.
       SECTIONi3.049.iiSection 44.0011, Education Code, is amended to read as
 follows:
       Sec.i44.0011.iiFISCAL YEAR. The fiscal year of a school district begins on
 July 1 or September 1 of each year, as determined by the board of trustees of the
 district. The commissioner may adopt rules concerning the submission of
 information by a district under Chapter 39, 39A, or 48 [42] based on the fiscal
 year of the district.
       SECTIONi3.050.iiSection 44.051, Education Code, is amended to read as
 follows:
       Sec.i44.051.iiINTERFERENCE WITH OPERATION OF FOUNDATION
 SCHOOL PROGRAM. An offense under Section 37.10, Penal Code, is a felony
 of the third degree if it is shown on trial of the offense that the governmental
 record was a record, form, report, or budget required under Chapter 48 [42] or
 rules adopted under that chapter. If the actor s’ intent is to defraud the state or the
 public school system, the offense is a felony of the second degree.
       SECTIONi3.051.iiSection 45.0011(e), Education Code, is amended to read
 as follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6117

       (e)iiIn this section, average daily attendance is determined in the manner
 provided by Section 48.005 [42.005].
       SECTIONi3.052.iiSections 45.0031(b) and (c), Education Code, are
 amended to read as follows:
       (b)iiA district may demonstrate the ability to comply with Subsection (a) by
 using the most recent taxable value of property in the district, combined with
 state assistance to which the district is entitled under Chapter [42ior] 46ior 48ithat
 may be lawfully used for the payment of bonds.
       (c)iiA district may demonstrate the ability to comply with Subsection (a) by
 using a projected future taxable value of property in the district anticipated for the
 earlier of the tax year five years after the current tax year or the tax year in which
 the final payment is due for the bonds submitted to the attorney general,
 combined with state assistance to which the district is entitled under Chapter
 [42ior] 46ior 48ithat may be lawfully used for the payment of bonds. The district
 must submit to the attorney general a certification of the district ’s projected
 taxable value of property that is prepared by a registered professional appraiser
 certified under Chapter 1151, Occupations Code, who has demonstrated
 professional experience in projecting taxable values of property or who can by
 contract obtain any necessary assistance from a person who has that experience.
 To demonstrate the professional experience required by this subsection, a
 registered professional appraiser must provide to the district written
 documentation relating to two previous projects for which the appraiser projected
 taxable values of property. Until the bonds submitted to the attorney general are
 approved or disapproved, the district must maintain the documentation and on
 request provide the documentation to the attorney general or comptroller. The
 certification of the district ’s projected taxable value of property must be signed by
 the district ’s superintendent. The attorney general must base a determination of
 whether the district has complied with Subsection (a) on a taxable value of
 property that is equal to 90 percent of the value certified under this subsection.
       SECTIONi3.053.iiSection 45.251(2), Education Code, is amended to read as
 follows:
             (2)ii"Foundation School Program" means the program established under
 Chapters [41, 42, and] 46, 48, and 49, or any successor program of state
 appropriated funding for school districts in this state.
       SECTIONi3.054.iiSection 45.259(d), Education Code, is amended to read as
 follows:
       (d)iiIf money appropriated for the Foundation School Program is used for
 purposes of this subchapter and as a result there is insufficient money to fully
 fund the Foundation School Program, the commissioner shall, to the extent
 necessary, reduce each school district ’s foundation school fund allocations, other
 than any portion appropriated from the available school fund, in the same manner
 provided by Section 48.266(f) [42.253(h)] for a case in which school district
 entitlements exceed the amount appropriated.iiThe following fiscal year, a
 district ’s entitlement under Section 48.266i[42.253] is increased by an amount
 equal to the reduction under this subsection.
6118             86th LEGISLATURE — REGULAR SESSION

      SECTIONi3.055.iiSection 45.261(a), Education Code, is amended to read as
 follows:
      (a)iiIf the commissioner orders payment from the money appropriated to the
 Foundation School Program on behalf of a school district that is not required to
 reduce its local revenue level [wealth per student] under Section 48.257 [Chapter
 41], the commissioner shall direct the comptroller to withhold the amount paid
 from the first state money payable to the district.iiIf the commissioner orders
 payment from the money appropriated to the Foundation School Program on
 behalf of a school district that is required to reduce its local revenue level [wealth
 per student] under Section 48.257 [Chapter 41], the commissioner shall increase
 amounts due from the district under Chapter 49 [that chapter] in a total amount
 equal to the amount of payments made on behalf of the district under this
 subchapter.iiAmounts withheld or received under this subsection shall be used for
 the Foundation School Program.
      SECTIONi3.056.iiSection 45.263(b), Education Code, is amended to read as
 follows:
      (b)iiIn adopting rules under Subsection (a), the commissioner shall establish
 an annual deadline by which a school district must pay the debt service on bonds
 for which credit enhancement is provided under this subchapter.iiThe deadline
 established may not be later than the 10th day before the date specified under
 Section 48.273 [42.259] for payment to school districts of the final Foundation
 School Program installment for a state fiscal year.
      SECTIONi3.057.iiSection 46.003(a), Education Code, is amended to read as
 follows:
      (a)iiFor each year, except as provided by Sections 46.005 and 46.006, a
 school district is guaranteed a specified amount per student in state and local
 funds for each cent of tax effort, up to the maximum rate under Subsection (b), to
 pay the principal of and interest on eligible bonds issued to construct, acquire,
 renovate, or improve an instructional facility. The amount of state support is
 determined by the formula:
              FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
 where:
      "FYA" is the guaranteed facilities yield amount of state funds allocated to
 the district for the year;
      "FYL" is the dollar amount guaranteed level of state and local funds per
 student per cent of tax effort, which is $35 or a greater amount for any year
 provided by appropriation;
      "ADA" is the greater of the number of students in average daily attendance,
 as determined under Section 48.005 [42.005], in the district or 400;
      "BTR" is the district ’s bond tax rate for the current year, which is determined
 by dividing the amount budgeted by the district for payment of eligible bonds by
 the quotient of the district ’s taxable value of property as determined under
 Subchapter M, Chapter 403, Government Code, or, if applicable, Section
 48.258i[42.2521], divided by 100; and
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6119

       "DPV" is the district ’s taxable value of property as determined under
 Subchapter M, Chapter 403, Government Code, or, if applicable, Section
 48.258i[42.2521].
       SECTIONi3.058.iiSection 46.006(g), Education Code, is amended to read as
 follows:
       (g)iiIn 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 [42.2521], divided by the district ’s
 average daily attendance as determined under Section 48.005 [42.005].
       SECTIONi3.059.iiSections 46.009(b), (c), (e), and (f), Education Code, are
 amended to read as follows:
       (b)iiIf the amount appropriated for purposes of this subchapter for a year is
 less than the total amount determined under Subsection (a) for that year, the
 commissioner shall:
             (1)iitransfer from the Foundation School Program to the instructional
 facilities program the amount by which the total amount determined under
 Subsection (a) exceeds the amount appropriated; and
             (2)iireduce each district ’s foundation school fund allocations in the
 manner provided by Section 48.266(f) [42.253(h)].
       (c)iiWarrants for payments under this subchapter shall be approved and
 transmitted to school district treasurers or depositories in the same manner as
 warrants for payments under Chapter 48 [42].
       (e)iiSection 48.272 [42.258] applies to payments under this subchapter.
       (f)iiIf a school district would have received a greater amount under this
 subchapter for the applicable school year using the adjusted value determined
 under Section 48.271 [42.257], the commissioner shall add the difference
 between the adjusted value and the amount the district received under this
 subchapter to subsequent distributions to the district under this subchapter.
       SECTIONi3.060.iiSection 46.0111(e), Education Code, is amended to read
 as follows:
       (e)iiThe state ’s share is state property.iiThe school district shall send to the
 comptroller any portion of the state ’s share not used by the school district to
 repair the defective design, construction, renovation, or improvement of the
 instructional facility on which the action is brought or to replace the
 facility.iiSection 48.272i[42.258] applies to the state ’s share under this
 subsection.
       SECTIONi3.061.iiSection 46.013, Education Code, is amended to read as
 follows:
       Sec.i46.013.iiMULTIPLE ALLOTMENTS PROHIBITED. A school district
 is not entitled to state assistance under this subchapter based on taxes with respect
 to which the district receives state assistance under Subchapter E [F], Chapter
 48i[42].
       SECTIONi3.062.iiSection 46.032(a), Education Code, is amended to read as
 follows:
6120            86th LEGISLATURE — REGULAR SESSION

      (a)iiEach school district is guaranteed a specified amount per student in state
 and local funds for each cent of tax effort to pay the principal of and interest on
 eligible bonds.iiThe amount of state support, subject only to the maximum
 amount under Section 46.034, is determined by the formula:
          EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
 where:
      "EDA" is the amount of state funds to be allocated to the district for
 assistance with existing debt;
      "EDGL" is the dollar amount guaranteed level of state and local funds per
 student per cent of tax effort, which is the lesser of:
           (1)ii$40 or a greater amount for any year provided by appropriation; or
           (2)iithe amount that would result in a total additional amount of state
 funds under this subchapter for the current year equal to $60 million in excess of
 the state funds to which school districts would have been entitled under this
 section if the guaranteed level amount were $35;
      "ADA" is the number of students in average daily attendance, as determined
 under Section 48.005 [42.005], in the district;
      "EDTR" is the existing debt tax rate of the district, which is determined by
 dividing the amount budgeted by the district for payment of eligible bonds 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
 48.258i[42.2521], divided by 100; and
      "DPV" is the district ’s taxable value of property as determined under
 Subchapter M, Chapter 403, Government Code, or, if applicable, under Section
 48.258 [42.2521].
      SECTIONi3.063.iiSection 46.037, Education Code, is amended to read as
 follows:
      Sec.i46.037.iiMULTIPLE ALLOTMENTS PROHIBITED. A school district
 is not entitled to state assistance under this subchapter based on taxes with respect
 to which the district receives state assistance under Subchapter E [F], Chapter
 48i[42].
      SECTIONi3.064.iiSection 61.0766(e), Education Code, is amended to read
 as follows:
      (e)iiAn academy program may:
           (1)iiprovide financial assistance for the purpose of allowing participants
 to complete the program [and obtain a master teacher certificate under Section
 21.0482, 21.0483, or 21.0484];
           (2)iiinclude programs in leadership skills to develop training,
 mentoring, and coaching skills;
           (3)iideliver coursework electronically for some or all of the program;
 and
           (4)iiprovide for ongoing professional development and coordination
 with specific public school instructional programs.
      SECTIONi3.065.iiSection 79.10(f), Education Code, is amended to read as
 follows:
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6121

       (f)iiFor each student enrolled in the academy, the academy is entitled to
 allotments from the foundation school fund under Chapter 48 [42] as if the
 academy were a school district without a tier one local share for purposes of
 Section 48.266i[42.253].iiIf in any academic year the amount of the allotments
 under this subsection exceeds the amount of state funds paid to the academy in
 the first fiscal year of the academy ’s operation, the commissioner of education
 shall set aside from the total amount of funds to which school districts are entitled
 under Section 48.266(c) [42.253(c)] an amount equal to the excess amount and
 shall distribute that amount to the academy.iiAfter deducting the amount set aside
 and paid to the academy by the commissioner of education under this subsection,
 the commissioner of education shall reduce the amount to which each district is
 entitled under Section 48.266(c) [42.253(c)] in the manner described by Section
 48.266(f) [42.253(h)].iiA determination of the commissioner of education under
 this subsection is final and may not be appealed.
       SECTIONi3.066.iiSection 87.208, Education Code, is amended to read as
 follows:
       Sec.i87.208.iiSEABORNE CONSERVATION CORPS. If the board of
 regents of The Texas A&M University System administers a program that is
 substantially similar to the Seaborne Conservation Corps as it was administered
 by the board during the 1998-1999 school year, the program is entitled, for each
 student enrolled, to allotments from the Foundation School Program under
 Chapter 48 [42] as if the program were a school district, except that the program
 has a local share applied that is equivalent to the local fund assignment of the
 school district in which the principal facilities of the program are located.
       SECTIONi3.067.iiSection 87.505(g), Education Code, is amended to read as
 follows:
       (g)iiFor each student enrolled in the academy, the academy is entitled to
 allotments from the foundation school fund under Chapter 48 [42] as if the
 academy were a school district without a tier one local share for purposes of
 Section 48.266i[42.253].iiIf in any academic year the amount of the allotments
 under this subsection exceeds the amount of state funds paid to the academy in
 the first fiscal year of the academy ’s operation, the commissioner of education
 shall set aside from the total amount of funds to which school districts are entitled
 under Section 48.266(c) [42.253(c)] an amount equal to the excess amount and
 shall distribute that amount to the academy.iiAfter deducting the amount set aside
 and paid to the academy by the commissioner of education under this subsection,
 the commissioner of education shall reduce the amount to which each district is
 entitled under Section 48.266(c) [42.253(c)] in the manner described by Section
 48.266(f) [42.253(h)].iiA determination of the commissioner of education under
 this subsection is final and may not be appealed.
       SECTIONi3.068.iiSection 96.707(k), Education Code, is amended to read as
 follows:
       (k)iiFor each student enrolled in the academy, the academy is entitled to
 allotments from the Foundation School Program under Chapter 48 [42] as if the
 academy were a school district without a tier one local share for purposes of
 Section 48.266i[42.253].
6122             86th LEGISLATURE — REGULAR SESSION

       SECTIONi3.069.iiSections 105.301(e) and (f), Education Code, are
 amended to read as follows:
       (e)iiThe academy is not subject to the provisions of this code, or to the rules
 of the Texas Education Agency, regulating public schools, except that:
             (1)iiprofessional employees of the academy are entitled to the limited
 liability of an employee under Section 22.0511, 22.0512, or 22.052;
             (2)iia student ’s attendance at the academy satisfies compulsory school
 attendance requirements; and
             (3)iifor each student enrolled, the academy is entitled to allotments from
 the foundation school program under Chapter 48 [42] as if the academy were a
 school district without a tier one local share for purposes of Section
 48.266i[42.253].
       (f)iiIf in any academic year the amount of the allotments under Subsection
 (e)(3) exceeds the amount of state funds paid to the academy under this section in
 the fiscal year ending August 31, 2003, the commissioner shall set aside from the
 total amount of funds to which school districts are entitled under Section
 48.266(c) [42.253(c)] an amount equal to the excess amount and shall distribute
 that amount to the academy. After deducting the amount set aside and paid to the
 academy by the commissioner under this subsection, the commissioner shall
 reduce the amount to which each district is entitled under Section 48.266(c)
 [42.253(c)] in the manner described by Section 48.266(f) [42.253(h)]. A
 determination of the commissioner under this section is final and may not be
 appealed.
       SECTIONi3.070.iiSection 317.005(f), Government Code, is amended to
 read as follows:
       (f)iiThe governor or board may adopt an order under this section
 withholding or transferring any portion of the total amount appropriated to
 finance the foundation school program for a fiscal year. The governor or board
 may not adopt such an order if it would result in an allocation of money between
 particular programs or statutory allotments under the foundation school program
 contrary to the statutory proration formula provided by Section 48.266(f)
 [42.253(h)], Education Code. The governor or board may transfer an amount to
 the total amount appropriated to finance the foundation school program for a
 fiscal year and may increase the basic allotment. The governor or board may
 adjust allocations of amounts between particular programs or statutory allotments
 under the foundation school program only for the purpose of conforming the
 allocations to actual pupil enrollments or attendance.
       SECTIONi3.071.iiSection 403.093(d), Government Code, as amended by
 Chapters 581 (SBi810) and 705 (HBi3526), Acts of the 85th Legislature, Regular
 Session, 2017, is reenacted and amended to read as follows:
       (d)iiThe comptroller shall transfer from the general revenue fund to the
 foundation school fund an amount of money necessary to fund the foundation
 school program as provided by Chapter 48 [42], Education Code. The
 comptroller shall make the transfers in installments as necessary to comply with
 Section 48.273i[42.259], Education Code, and permit the Texas Education
 Agency, to the extent authorized by the General Appropriations Act, to make
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                            6123

 temporary transfers from the foundation school fund for payment of the
 instructional materials and technology allotment under Section 31.0211,
 Education Code. Unless an earlier date is necessary for purposes of temporary
 transfers for payment of the instructional materials and technology allotment, an
 installment must be made not earlier than two days before the date an installment
 to school districts is required by Section 48.273 [42.259], Education Code, and
 must not exceed the amount necessary for that payment and any temporary
 transfers for payment of the instructional materials and technology allotment.
       SECTIONi3.072.iiSection 403.302(a), Government Code, is amended to
 read as follows:
       (a)iiThe comptroller shall conduct a study using comparable sales and
 generally accepted auditing and sampling techniques to determine the total
 taxable value of all property in each school district. The study shall determine the
 taxable value of all property and of each category of property in the district and
 the productivity value of all land that qualifies for appraisal on the basis of its
 productive capacity and for which the owner has applied for and received a
 productivity appraisal.iiThe comptroller shall make appropriate adjustments in
 the study to account for actions taken under Chapter 49 [41], Education Code.
       SECTIONi3.073.iiSection 403.303(b), Government Code, is amended to
 read as follows:
       (b)iiAfter receipt of a petition, the comptroller shall hold a hearing.iiThe
 comptroller has the burden to prove the accuracy of the findings.iiUntil a final
 decision is made by the comptroller, the taxable value of property in the district is
 determined, with respect to property subject to the protest, according to the value
 claimed by the school district or property owner, except that the value to be used
 while a final decision is pending may not be less than the appraisal roll value for
 the year of the study.iiIf after a hearing the comptroller concludes that the
 findings should be changed, the comptroller shall order the appropriate changes
 and shall certify to the commissioner of education the changes in the values of the
 school district that brought the protest, the values of the school district named by
 the property owner who brought the protest, or, if the comptroller by rule allows
 an appraisal district to bring a protest, the values of the school district named by
 the appraisal district that brought the protest.iiThe comptroller may not order a
 change in the values of a school district as a result of a protest brought by another
 school district, a property owner in the other school district, or an appraisal
 district that appraises property for the other school district.iiThe comptroller shall
 complete all protest hearings and certify all changes as necessary to comply with
 Chapter 48i[42], Education Code.iiA hearing conducted under this subsection is
 not a contested case for purposes of Section 2001.003.
       SECTIONi3.074.iiSection 404.121(1), Government Code, is amended to
 read as follows:
            (1)ii"Cash flow deficit" for any period means the excess, if any, of
 expenditures paid and transfers made from the general revenue fund in the period,
 including payments provided by Section 48.273 [42.259], Education Code, over
6124            86th LEGISLATURE — REGULAR SESSION

 taxes and other revenues deposited to the fund in the period, other than revenues
 deposited pursuant to Section 403.092, that are legally available for the
 expenditures and transfers.
       SECTIONi3.075.iiSection 437.117(a), Government Code, is amended to
 read as follows:
       (a)iiFor each student enrolled in the Texas ChalleNGe Academy, the
 department is entitled to allotments from the Foundation School Program under
 Chapter 48 [42], Education Code, as if the academy were a school district without
 a tier one local share for purposes of Section 48.266i[42.253], Education Code.
       SECTIONi3.076.iiSection 466.355(c), Government Code, as repealed by
 Chapter 431 (SBi559), Acts of the 83rd Legislature, Regular Session, 2013, and
 amended by Chapter 1410 (SBi758), Acts of the 83rd Legislature, Regular
 Session, 2013, is reenacted and amended to read as follows:
       (c)iiEach August the comptroller shall:
            (1)iiestimate the amount to be transferred to the foundation school fund
 on or before September 15; and
            (2)iinotwithstanding Subsection (b)(4), transfer the amount estimated in
 Subdivision (1) to the foundation school fund before August installment
 payments are made under Section 48.273 [42.259], Education Code.
       SECTIONi3.077.iiSection 822.201(b), Government Code, is amended to
 read as follows:
       (b)ii"Salary and wages" as used in Subsection (a) means:
            (1)iinormal periodic payments of money for service the right to which
 accrues on a regular basis in proportion to the service performed;
            (2)iiamounts by which the member ’s salary is reduced under a salary
 reduction agreement authorized by Chapter 610;
            (3)iiamounts that would otherwise qualify as salary and wages under
 Subdivision (1) but are not received directly by the member pursuant to a good
 faith, voluntary written salary reduction agreement in order to finance payments
 to a deferred compensation or tax sheltered annuity program specifically
 authorized by state law or to finance benefit options under a cafeteria plan
 qualifying under Section 125 of the Internal Revenue Code of 1986, if:
                 (A)iithe program or benefit options are made available to all
 employees of the employer; and
                 (B)iithe benefit options in the cafeteria plan are limited to one or
 more options that provide deferred compensation, group health and disability
 insurance, group term life insurance, dependent care assistance programs, or
 group legal services plans;
            (4)iiperformance pay awarded to an employee by a school district as
 part of a total compensation plan approved by the board of trustees of the district
 and meeting the requirements of Subsection (e);
            (5)iithe benefit replacement pay a person earns under Subchapter H,
 Chapter 659, except as provided by Subsection (c);
            (6)iistipends paid to teachers in accordance with former Section 21.410,
 21.411, 21.412, or 21.413, Education Code;
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6125

            (7)iiamounts by which the member ’s salary is reduced or that are
 deducted from the member ’s salary as authorized by Subchapter J, Chapter 659;
            (8)iia merit salary increase made under Section 51.962, Education Code;
            (9)iiamounts received under the relevant parts of the educator excellence
 awards program under Subchapter O, Chapter 21, Education Code, or a
 mentoring program under Section 21.458, Education Code, that authorize
 compensation for service;
            (10)iisalary amounts designated as health care supplementation by an
 employee under Subchapter D, Chapter 22, Education Code; and
            (11)iito the extent required by Sections 3401(h) and 414(u)(12), Internal
 Revenue Code of 1986, differential wage payments received by an individual
 from an employer on or after January 1, 2009, while the individual is performing
 qualified military service as defined by Section 414(u), Internal Revenue Code of
 1986.
       SECTIONi3.078.iiSection 1371.001(4), Government Code, is amended to
 read as follows:
            (4)ii"Issuer" means:
                 (A)iia home-rule municipality that:
                      (i)iiadopted its charter under Section 5, Article XI, Texas
 Constitution;
                      (ii)iihas a population of 50,000 or more; and
                      (iii)iihas outstanding long-term indebtedness that is rated by a
 nationally recognized rating agency for municipal securities in one of the four
 highest rating categories for a long-term obligation;
                 (B)iia conservation and reclamation district created and organized
 as a river authority under Section 52, Article III, or Section 59, Article XVI,
 Texas Constitution;
                 (C)iia joint powers agency organized and operating under Chapter
 163, Utilities Code;
                 (D)iia metropolitan rapid transit authority, regional transportation
 authority, or coordinated county transportation authority created, organized, or
 operating under Chapter 451, 452, or 460, Transportation Code;
                 (E)iia conservation and reclamation district organized or operating
 as a navigation district under Section 52, Article III, or Section 59, Article XVI,
 Texas Constitution;
                 (F)iia district organized or operating under Section 59, Article XVI,
 Texas Constitution, that has all or part of two or more municipalities within its
 boundaries;
                 (G)iia state agency, including a state institution of higher education;
                 (H)iia hospital authority created or operating under Chapter 262 or
 264, Health and Safety Code, in a county that:
                      (i)iihas a population of more than 3.3 million; or
                      (ii)iiis included, in whole or in part, in a standard metropolitan
 statistical area of this state that includes a county with a population of more than
 2.2imillion;
6126             86th LEGISLATURE — REGULAR SESSION

                (I)iia hospital district in a county that has a population of more than
 two million;
                (J)iia nonprofit corporation organized to exercise the powers of a
 higher education loan authority under Section 53B.47(e), Education Code;
                (K)iia county:
                     (i)iithat has a population of 3.3 million or more; or
                     (ii)iithat, on the date of issuance of obligations under this
 chapter, has authorized, outstanding, or any combination of authorized and
 outstanding, indebtedness of at least $100 million secured by and payable from
 the county ’s ad valorem taxes and the authorized long-term indebtedness of
 which is rated by a nationally recognized rating agency of securities issued by
 local governments in one of the four highest rating categories for a long-term
 obligation;
                (L)iian independent school district that has an average daily
 attendance of 50,000 or more as determined under Section 48.005 [42.005],
 Education Code;
                (M)iia municipality or county operating under Chapter 334, Local
 Government Code;
                (N)iia district created under Chapter 335, Local Government Code;
                (O)iia junior college district that has a total headcount enrollment of
 40,000 or more based on enrollment in the most recent regular semester; or
                (P)iian issuer, as defined by Section 1201.002, that has:
                     (i)iia principal amount of at least $100 million in outstanding
 long-term indebtedness, in long-term indebtedness proposed to be issued, or in a
 combination of outstanding or proposed long-term indebtedness; and
                     (ii)iisome amount of long-term indebtedness outstanding or
 proposed to be issued that is rated in one of the four highest rating categories for
 long-term debt instruments by a nationally recognized rating agency for
 municipal securities, without regard to the effect of any credit agreement or other
 form of credit enhancement entered into in connection with the obligation.
      SECTIONi3.079.iiSection 1431.001(3), Government Code, is amended to
 read as follows:
           (3)ii"Eligible school district" means an independent school district that
 has an average daily attendance of 190,000 or more as determined under Section
 48.005 [42.005], Education Code.
      SECTIONi3.080.iiSection 2175.304(c), Government Code, is amended to
 read as follows:
      (c)iiThe procedures established under Subsection (b) must give preference to
 transferring the property directly to a public school or school district or to an
 assistance organization designated by the school district before disposing of the
 property in another manner. If more than one public school or school district or
 assistance organization seeks to acquire the same property on substantially the
 same terms, the system, institution, or agency shall give preference to a public
 school that is considered low-performing by the commissioner of education or to
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6127

 a school district that has a taxable wealth per student that entitles the district to an
 allotment of state funds under Subchapter E [F], Chapter 48 [42], Education
 Code, or to the assistance organization designated by such a school district.
       SECTIONi3.081.iiSection 221.0071(d), Human Resources Code, is
 amended to read as follows:
       (d)iiA charter school operating under a charter granted under this section is
 entitled to receive open-enrollment charter school funding under Chapter 48 [42],
 Education Code, in the same manner as an open-enrollment charter school
 operating under Subchapter D, Chapter 12, Education Code.
       SECTIONi3.082.iiSection 1579.251(a), Insurance Code, is amended to read
 as follows:
       (a)iiThe state shall assist employees of participating school districts and
 charter schools in the purchase of group health coverage under this chapter by
 providing for each covered employee the amount of $900 each state fiscal year or
 a greater amount as provided by the General Appropriations Act.iiThe state
 contribution shall be distributed through the school finance formulas under
 Chapters 48 [41] and 49 [42], Education Code, and used by school districts and
 charter schools as provided by Sectioni48.275i[42.260], Education Code.
       SECTIONi3.083.iiSection 1581.053, Insurance Code, is amended to read as
 follows:
       Sec.i1581.053.iiUSE OF STATE FUNDS. (a) To comply with Section
 1581.052, a school district or participating charter school may use state funds
 received under Chapter 48 [42], Education Code, other than funds that may be
 used under that chapter only for a specific purpose.
       (b)iiNotwithstanding Subsection (a), amounts a district or school is required
 to use to pay contributions under a group health coverage plan for district or
 school employees under Section 48.275i[42.260], Education Code, other than
 amounts described by Section 48.275(c)(2) [42.260(c)(2)(B)], are not used in
 computing whether the district or school complies with Section 1581.052.
       SECTIONi3.084.iiSection 37.10(c)(2), Penal Code, is amended to read as
 follows:
            (2)iiAn offense under this section is a felony of the third degree if it is
 shown on the trial of the offense that the governmental record was:
                 (A)iia public school record, report, or assessment instrument
 required under Chapter 39, Education Code, data reported for a school district or
 open-enrollment charter school to the Texas Education Agency through the
 Public Education Information Management System (PEIMS) described by
 Sections 48.008 and 48.009 [Section 42.006], Education Code, under a law or
 rule requiring that reporting, or a license, certificate, permit, seal, title, letter of
 patent, or similar document issued by government, by another state, or by the
 United States, unless the actor ’s intent is to defraud or harm another, in which
 event the offense is a felony of the second degree;
                 (B)iia written report of a medical, chemical, toxicological, ballistic,
 or other expert examination or test performed on physical evidence for the
 purpose of determining the connection or relevance of the evidence to a criminal
 action;
6128             86th LEGISLATURE — REGULAR SESSION

                (C)iia written report of the certification, inspection, or maintenance
 record of an instrument, apparatus, implement, machine, or other similar device
 used in the course of an examination or test performed on physical evidence for
 the purpose of determining the connection or relevance of the evidence to a
 criminal action; or
                (D)iia search warrant issued by a magistrate.
       SECTIONi3.085.iiSection 39.03(d), Penal Code, is amended to read as
 follows:
       (d)iiAn offense under this section is a Class A misdemeanor, except that an
 offense is a felony of the third degree if the public servant acted with the intent to
 impair the accuracy of data reported to the Texas Education Agency through the
 Public Education Information Management System (PEIMS) described by
 Sections 48.008 and 48.009 [Section 42.006], Education Code, under a law
 requiring that reporting.
       SECTIONi3.086.iiSection 21.01, Tax Code, is amended to read as follows:
       Sec.i21.01.iiREAL PROPERTY. Real property is taxable by a taxing unit if
 located in the unit on January 1, except as provided by Chapter 49 [41],
 Education Code.
       SECTIONi3.087.iiSections 21.02(b) and (c), Tax Code, are amended to read
 as follows:
       (b)iiTangible personal property having taxable situs at the same location as
 real property detached from a school district and annexed by another school
 district under Chapter 49 [41], Education Code, is taxable in the tax year in which
 the detachment and annexation occurs by the same school district by which the
 real property is taxable in that tax year under Chapter 49 [41], Education Code.
 For purposes of this subsection and Chapter 49 [41], Education Code, tangible
 personal property has taxable situs at the same location as real property detached
 and annexed under Chapter 49 [41], Education Code, if the detachment and
 annexation of the real property, had it occurred before January 1 of the tax year,
 would have changed the taxable situs of the tangible personal property
 determined as provided by Subsection (a) from the school district from which the
 real property was detached to the school district to which the real property was
 annexed.
       (c)iiTangible personal property has taxable situs in a school district that is
 the result of a consolidation under Chapter 49 [41], Education Code, in the year
 in which the consolidation occurs if the property would have had taxable situs in
 the consolidated district in that year had the consolidation occurred before
 January 1 of that year.
       SECTIONi3.088.iiSection 25.25(k), Tax Code, is amended to read as
 follows:
       (k)iiThe chief appraiser shall change the appraisal records and school district
 appraisal rolls promptly to reflect the detachment and annexation of property
 among school districts under Subchapter C or G, Chapter 49 [41], Education
 Code.
       SECTIONi3.089.iiSection 311.013(n), Tax Code, is amended to read as
 follows:
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6129

      (n)iiThis subsection applies only to a school district whose taxable value
 computed under Section 403.302(d), Government Code, is reduced in accordance
 with Subdivision (4) of that subsection.iiIn addition to the amount otherwise
 required to be paid into the tax increment fund, the district shall pay into the fund
 an amount equal to the amount by which the amount of taxes the district would
 have been required to pay into the fund in the current year if the district levied
 taxes at the rate the district levied in 2005 exceeds the amount the district is
 otherwise required to pay into the fund in the year of the reduction.iiThis
 additional amount may not exceed the amount the school district receives in state
 aid for the current tax year under Section 48.253 [42.2514], Education
 Code.iiThe school district shall pay the additional amount after the district
 receives the state aid to which the district is entitled for the current tax year under
 Section 48.253 [42.2514], Education Code.
      SECTIONi3.090.iiSection 312.002(g), Tax Code, is amended to read as
 follows:
      (g)ii"Taxing unit" has the meaning assigned by Section 1.04, except that for
 a tax abatement agreement executed on or after September 1, 2001, the term does
 not include a school district that is subject to Chapter 48 [42], Education Code,
 and that is organized primarily to provide general elementary and secondary
 public education.
      SECTIONi3.091.iiSection 312.210(b), Tax Code, is amended to read as
 follows:
      (b)iiA tax abatement agreement with the owner of real property or tangible
 personal property that is located in the reinvestment zone described by
 Subsection (a) and in a school district that has a local revenue level [wealth per
 student] that does not exceed the [equalized wealth] level established under
 Section 48.257 must exempt from taxation:
           (1)iithe portion of the value of the property in the amount specified in
 the joint agreement among the municipality, county, and junior college district;
 and
           (2)iian amount equal to 10 percent of the maximum portion of the value
 of the property that may under Section 312.204(a) be otherwise exempted from
 taxation.
      SECTIONi3.092.iiSection 313.027(i), Tax Code, is amended to read as
 follows:
      (i)iiA person and the school district may not enter into an agreement under
 which the person agrees to provide supplemental payments to a school district or
 any other entity on behalf of a school district in an amount that exceeds an
 amount equal to the greater of $100iper student per year in average daily
 attendance, as defined by Section 48.005i[42.005], Education Code, or
 $50,000iper year, or for a period that exceeds the period beginning with the
 period described by Section 313.021(4) and ending Decemberi31iof the third tax
 year after the date the person ’s eligibility for a limitation under this chapter
 expires.iiThis limit does not apply to amounts described by Subsection (f)(1) or
 (2).
6130           86th LEGISLATURE — REGULAR SESSION

                              ARTICLE 4. REPEALER
      SECTIONi4.001.ii(a) The following provisions of the Education Code are
 repealed:
           (1)iiSection 7.102(c)(5);
           (2)iiSection 21.0481;
           (3)iiSection 21.0482;
           (4)iiSection 21.0483;
           (5)iiSection 21.0484;
           (6)iiSection 21.410;
           (7)iiSection 21.411;
           (8)iiSection 21.412;
           (9)iiSection 21.413;
           (10)iiSection 21.458(c);
           (11)iiSections 28.006(d-1) and (e);
           (12)iiSection 29.097;
           (13)iiSection 29.098;
           (14)iiSection 29.165;
           (15)iiSection 29.166;
           (16)iiSections 29.203(g)(1) and (3);
           (17)iiSection 39.233;
           (18)iiSection 39.234;
           (19)iithe headings to Chapters 41 and 42;
           (20)iithe heading to Subchapter A, Chapter 41;
           (21)iiSection 41.002;
           (22)iiSection 41.0041;
           (23)iithe heading to Subchapter D, Chapter 41;
           (24)iiSection 41.0931;
           (25)iiSection 41.098;
           (26)iithe heading to Subchapter E, Chapter 41;
           (27)iithe heading to Subchapter A, Chapter 42;
           (28)iithe heading to Section 42.006;
           (29)iiSection 42.007;
           (30)iithe heading to Subchapter B, Chapter 42;
           (31)iiSection 42.102;
           (32)iiSection 42.103;
           (33)iiSection 42.104;
           (34)iithe heading to Subchapter C, Chapter 42;
           (35)iiSection 42.1541;
           (36)iiSection 42.156;
           (37)iiSection 42.160;
           (38)iithe heading to Subchapter E, Chapter 42;
           (39)iiSection 42.2513;
           (40)iiSection 42.2517;
           (41)iiSection 42.2518;
           (42)iiSection 42.262;
           (43)iithe headings to Subchapters F and G, Chapter 42; and
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6131

            (44)iiSection 42.352.
       (b)iiSections 322.008(b) and 403.302(m), Government Code, are repealed.
       (c)iiThe following provisions of the Tax Code are repealed:
            (1)iiSections 26.08(o) and (p); and
            (2)iiSection 312.210(c).
                   ARTICLE 5. TRANSITION; CONFLICT OF LAW
       SECTIONi5.001.ii(a) Except as provided by Subsection (b) or (c) of this
 section, Article 2 of this Act applies beginning with the 2019-2020ischool year.
       (b)iiSection 28.006, Education Code, as amended by this Act, applies
 beginning with the 2020-2021 school year.
       (c)iiSection 28.025, Education Code, as amended by this Act, and Section
 28.0256, Education Code, as added by this Act, apply beginning with students
 enrolled at the 12th grade level during the 2021-2022 school year.
       SECTIONi5.002.iiExcept as otherwise provided by this Act, Section 26.08,
 Tax Code, as amended by this Act, applies beginning with the 2019itax year. A
 school district is required to calculate the district ’s rollback tax rate for the
 2019itax year in the manner provided by Section 26.08, Tax Code, as amended
 by this Act, regardless of whether the district has already calculated that rate or
 adopted a tax rate for the 2019itax year before Septemberi1, 2019.
       SECTIONi5.003.iiAs soon as practicable after September 1, 2019:
            (1)iithe State Board for Educator Certification shall develop the Internet
 portal required by Section 21.006(g-1), Education Code, as added by this Act;
 and
            (2)iithe Texas Education Agency shall develop the Internet portal
 required by Section 22.095, Education Code, as added by this Act.
       SECTIONi5.004.iiThe Texas Education Agency shall establish the registry
 of persons who are not eligible to be employed by a school district, district of
 innovation, open-enrollment charter school, other charter entity, regional
 education service center, or shared services arrangement, as required by Section
 22.092, Education Code, as added by this Act, as soon as practicable after
 September 1, 2019, and not later than January 1, 2020.
       SECTIONi5.005.iiThe State Board for Educator Certification may not issue
 a new or renew a master teacher certificate issued under Section 21.0481,
 21.0482, 21.0483, or 21.0484, Education Code, on or after the effective date of
 this Act.
       SECTIONi5.006.iiNot later than August 1, 2020, the Texas Education
 Agency shall submit the initial report required under Section 29.1544, Education
 Code, as added by this Act.
       SECTIONi5.007.iiNotwithstanding any provision of the Education Code,
 for the 2019itax year, a school district that took action to comply with publication
 requirements under Section 44.004, Education Code, before the effective date of
 this Act may amend the district ’s previously published notices to comply with the
 changes made to the district ’s permissible and proposed tax rates as a result of
 this Act by posting those changes on the district ’s Internet website. A school
6132            86th LEGISLATURE — REGULAR SESSION

 district that complied with the law in effect at the time of the district ’s original
 publication may hold the district s’ scheduled public hearing as originally
 published.
       SECTIONi5.008.iiNot later than December 1, 2020, each school district
 shall submit to the legislature a report on salary or wage increases provided to
 district employees under Section 48.051(c), Education Code, as added by this
 Act, for the 2019-2020ischool year. The report must include for each salary or
 wage increase:
            (1)iithe employee ’s position at the school district; and
            (2)iithe amount of the increase.
       SECTION 5.009.iiAs soon as practicable after the effective date of Section
 48.1021, Education Code, as added by this Act, the commissioner of education
 shall establish and appoint members to the advisory committee required under
 that section.
       SECTIONi5.010.ii(a) Notwithstanding any other law, to secure the best
 value for the state and ensure the best design, operation, and implementation of
 assessment instruments, the Texas Education Agency may:
            (1)iiprovide an additional period for all respondents to provide new
 proposals for the assessment solicitations posted in 2019; and
            (2)iiextend the current assessment contracts through the end of the state
 fiscal biennium ending August 31, 2021.
       (b)iiThis section expires September 1, 2021.
       SECTION 5.011.ii(a) The State Board for Educator Certification is required
 to implement a provision of Article 2A of this Act only if the legislature
 appropriates money specifically for that purpose. If the legislature does not
 appropriate money specifically for that purpose, the board may, but is not
 required to, implement a provision of Article 2A of this Act using other
 appropriations available for that purpose.
       (b)iiThe Texas Education Agency is required to implement a provision of
 Article 2A of this Act only if the legislature appropriates money specifically for
 that purpose. If the legislature does not appropriate money specifically for that
 purpose, the agency may, but is not required to, implement a provision of Article
 2A of this Act using other appropriations available for that purpose.
       SECTIONi5.012.iiIf any provision of this Act or its application to any
 person or circumstance is held invalid, the invalidity does not affect other
 provisions or applications of this Act that can be given effect without the invalid
 provision or application, and to this end the provisions of this Act are declared to
 be severable.
       SECTIONi5.013.iiTo the extent of any conflict, this Act prevails over
 another Act of the 86th Legislature, Regular Session, 2019, regardless of the
 relative dates of enactment.
                           ARTICLE 6. EFFECTIVE DATE
       SECTIONi6.001.ii(a) Except as otherwise provided by this section or as
 otherwise provided by this Act, this Act takes effect September 1, 2019.
       (b)iiSection 11.184, Education Code, as added by this Act, takes effect
 January 1, 2020.i
Saturday, May 25, 2019            HOUSE JOURNAL — 74th Day                                6133

       (c)iiSection 47.006, Education Code, as added by this Act, takes effect only
 if HBi1525 or similar legislation of the 86th Legislature, Regular Session, 2019,
 relating to the administration and collection of sales and use taxes applicable to
 sales involving marketplace providers is enacted and becomes law.
       (d)iiSubject to Subsection (c) of this section, Chapter 47, Education Code, as
 added by this Act, takes effect January 1, 2020.
       (e)iiSections 48.1021 and 48.1041, Education Code, as added by this Act,
 take effect immediately if this Act receives a vote of two-thirds of all the
 members elected to each house, as provided by Section 39, Article III, Texas
 Constitution. If this Act does not receive the vote necessary for Sections
 48.1021iand 48.1041, Education Code, as added by this Act, to have immediate
 effect, those sections take effect September 1, 2019.
       (f)iiArticle 2 and Section 5.010 of this Act take effect immediately if this
 Act receives a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution. If this Act does not
 receive the vote necessary for immediate effect, Article 2 and Section 5.010 of
 this Act take effect September 1, 2019.
                                  HB 3 - REMARKS
 REPRESENTATIVE HUBERTY: It says, unfortunately, to briefly explain the
 report. I don t’ think I can do that briefly, so I ’m going to take my time to go
 through this so everybody understands. Members, over the last several weeks, we
 have spent an enormous amount of time on this report. My conferees,
 Representative King; Representative González; Mr.iAshby obviously, who ’s been
 awesome; and Mr.iBernal have all worked very hard to get us to this point. The
 bill as you see it before you is a little different, but it s’ still transformational. Isn t’
 that right, Dr.iAllen? I ’d like to go over some of the major points with you.
       HBi3 puts over $6.5ibillion more money into the classrooms equitably for
 education reforms, providing about $2ibillion in additional incentives with a part
 of that for teacher compensation. It provides about $5ibillion in property tax
 relief. HBi3 will lower Tieri1icompression by seven cents statewide; in 2020,
 eight cents; and by 2021, 13icents. It begins a 2.5ipercent hybrid statewide local
 compression the second year of the biennium. This will ensure we have
 long-term, lasting property tax relief. It also reduces recapture by $3.6ibillion
 over the biennium. As I talked about it, we provided dynamic teacher incentive
 pay for our veteran teachers, but we didn t’ forget about the youngsters either. We
 wanted to make sure that we added Mr.iBernal ’s mentoring program as part of
 this legislation. We added a merit system not tied to standardized tests, where a
 teacher could earn an additional $32,000ia year. We increased the state share of
 education from 38ipercent to 45ipercent, something that ’s very important to all of
 us in this body.
       There ’s many other pieces of this bill that are important. We looked at
 compensatory education, making sure that we targeted the kids. We fully funded
 pre-K for our most needy children and require K-3ihigh quality reading standards
 so that all kids are able to read. We fund college, career, military readiness. We
 provided for students with a dyslexia weight, something very important to myself
 and the speaker, and assisted parents with supplemental services outside the
6134             86th LEGISLATURE — REGULAR SESSION

 school. We expanded CTE and tech app courses down to 7th grade. We created
 an extended summer year program for students to combat summer slide. Yes,
 Mr.iSchaefer, we added your program for Tyler, Texas, to make sure we took care
 of that. We provide additional funding for dropouts and students in residential
 treatments. We created a "do not hire" registry to protect children in the
 classroom. HBi3irequires a readability study to identify, does the STAAR test
 work and is it valid? It requires districts to complete efficiency audits before they
 go to the voters to increase taxes, establishes a fund to reduce property taxes,
 creates a study on geographic and regional cost differences to see if we might
 need a new CEI in the future, and adds language for students to fill out the
 FAFSA form. We ’re leaving millions of dollars on the table for our most needy
 kids. We added language to districts to solicit partnerships with local providers
 before construction of new pre-K facilities. I am sure many of you heard from
 your local pastors about this particular provision, so we added that. These are just
 some of the educational highlights. Now let me talk about the spend.
       As it came out of LBB, we ’re spending about $11.5ibillion. As I mentioned,
 somewhere between $6.5ibillion and $6.7ibillion in total district spend and about
 $5ibillion for tax compression. Many of you have asked how we ’re going to pay
 for this as we go forward with tax compression. We ’ve identified over the last
 several years––with the leadership of the lieutenant governor, the governor, and
 the speaker––we ’ve identified additional ways. As it left the house floor, we had
 $2.7ibillion in tax relief. But we found an additional $550imillion with Wayfair.
 We passed HJRi151, which allows for the ASF transfer of over $600imillion.
 The comptroller apparently found another $500imillion that he gave us. Yes,
 good job Glenn, thank you. The TERP fund is $550imillion, and of course, being
 fiscally responsible, we l’l find the rest for our general revenue appropriation. As a
 result, the basic allotment turned out to be $6,160. And Mr. Speaker, I would just
 at this moment like to yield to Mr.iAshby to talk about the fact that we went to
 current year values, which has been a question that many of you have been
 receiving.
 REPRESENTATIVE ASHBY: Members, we had a very robust discussion in the
 conference committee about current versus prior year values, and I ’d like to speak
 to that briefly. More than anything, a move to current year values will increase
 equity among Texas school districts by raising the basic allotment. A higher BA
 ultimately reduces recapture for wealthy districts and levels the playing field for
 smaller, poorer districts, many of which Representative King and I represent.
 Further, a higher BA ensures that funding––and this is important to every
 member of this body––is based on student need and not on a zip code or a
 student ’s neighborhood. Current year values have shown to be more equitable
 and financially efficient in our state school finance system, as all the savings from
 a move to current year values are immediately put back into our schools through
 the increase in the basic allotment and run through the weights and the formulas.
 Additionally, for these districts in the top quartile of enrollment growth that are
 losing the lag money under a system with prior year values, HBi3iincludes a fast
 growth allotment with a multiplier on the BA.
Saturday, May 25, 2019          HOUSE JOURNAL — 74th Day                             6135

       Real briefly, looking back, most districts actually do much better––which
 was a surprise to some of us on the conference committee––under current year
 values because the lag money from using prior year values is immediately run
 through the basic allotment. For example, in 2018, prior year values effectively
 decreased the basic allotment by $199iper student. In 2019, prior year values
 effectively decreased the same basic allotment by $192. Looking forward, most
 ISDs will find themselves in a much better financial situation under current year
 values even if we do nothing else to reform our school finance system. Lastly,
 here ’s some numbers for you. In 2020, 79ipercent of all the school districts in the
 State of Texas are better off by going to current year values, and five percent on
 top of that are unaffected. In 2021, 80ipercent of all school districts are better off,
 and another eight percent are unaffected by a move to current year values. This
 translates to a better student funding system for 84ipercent of all the
 schoolchildren in the great State of Texas, and so for this reason, the house
 supported the move to the current year values.
 HUBERTY: Here ’s some additional items relative to the tax benefits. We kept the
 house versions of the two additional gold pennies––very important––very
 important for us and certainly for your school districts. And we ensure equity in
 the enrichment of the tier by setting a 96ipercent floor across the board. We kept
 the standalone small and midsize allotment that funded at the higher levels for
 special education, and we created a new small adjustment for countywide districts
 under 300 ADA. You ’re welcome, Mr.iSpringer. The formula transition grant is
 similar to the house floor version––it only changes the greater of. You get to pick
 the better of the two for that in odd years to account for the revisions and
 variations in the ASF funding. And we repealed the gifted and talented allotment
 for the CEI, the staff supplement, and the high school allotment. There ’s many
 other things that are very instrumental in this bill, like increasing the new
 instructional facility allotment to $100imillion; providing $452imillion for career,
 college, military readiness––creating a blended learning growth; and again, I ’m
 going to hit it again, the dyslexia weight. We have thousands of kids in the State
 of Texas that we are not identifying as dyslexic, and it is critical that we must do
 that. And with that, Mr.iSpeaker, this bill represents a true collaboration of ideas
 and priorities between this chamber, the senate, the governor ’s office, Lieutenant
 Governor Patrick, Governor Abbott, and Mr.iSpeaker, yourself. We never lost
 sight of our goals to do what is right for students and the people of this state. The
 speaker was right when he called HBi3 the "Texas Plan" because this bill is a
 road map for the future of Texas.
 REPRESENTATIVE MURPHY: Chairman Huberty, you came to this house as a
 former school board member, and this has been your goal since that time. Am I
 correct?
 HUBERTY: That ’s right.
 MURPHY: And when you started with the commission a year and a half ago, did
 you think this was possible?
6136             86th LEGISLATURE — REGULAR SESSION

 HUBERTY: I think anything ’s possible, certainly, in the legislature––in the Texas
 House of Representatives––because I trust my colleagues. But I was able to work
 with an amazing group of people on that commission chaired by Chairman
 Brister and met wonderful people like Todd Williams and Nicole Conley
 Johnson. I got to serve with my buddy Ken King, Representative Bernal, Senator
 West, and Senator Taylor––amazing work and people. We believed that we could
 get things done. In fact, at the end of last session, I didn t’ think it was worth our
 time to do it, but I was wrong. It was an amazing piece of work. And it ’s such a
 collaboration of my committee, too. Our Public Education Committee––serving
 with Dr.iAllen and people like Harold Dutton and Keith Bell and Gary
 VanDeaver and Mr.iAshby and all the other members of our committee;
 Mr.iMeyer and Ms.iGonzález and those that have worked so hard with us;
 Mr.iTalarico, our newest member; Mr.iSanford; our freshman members that are
 there, Mr.iAllison––thank you. I ’ve got people chirping in my ear. I ’m forgetting
 everybody, but thank you. If I forgot you, it ’s not intentional, obviously––my
 committee clerk, Amy, and certainly Andrea Sheridan. All the work––I mean, we
 have an amazing team. And the speaker let us do our jobs. The speaker allowed
 this body and certainly our committee and our conferees to do our jobs, and I ’m
 thrilled about that.
                        REMARKS ORDERED PRINTED
       Representative Murphy moved to print all remarks on HBi3.
       The motion prevailed.
 REPRESENTATIVE GUTIERREZ: Mr. Speaker, I want to congratulate you
 because you are part of the great work on this particular bill. Your patience, your
 deliberation, and your efforts are certainly appreciated. Certainly, we have to
 thank everybody that was part of this committee process. Chairman Huberty, Vice
 Chairman Bernal––you guys have worked hard. You ’ve had big shoes to fill, and
 you ’ve gotten there. A younger, greener version of me might have been more
 critical of this bill, might have even voted no. But a more seasoned person now
 understands that legislation is a game of inches, and every year you get there you
 make legislation better. Admittedly, this is hard work. This is probably the
 hardest issue that this body will ever, ever, ever do, and the team that performed
 this hard labor, this heavy lifting, should be congratulated. Now admittedly, I ’m
 not the school finance expert in the room, but each one of us is endowed by our
 constituents to fight the fight and look critically at what affects them most. This
 bill does great work. As Chairman Huberty suggested earlier, we increase funding
 for pre-K. We increase teacher pay. We ensure that our children are reading at
 grade level by grade three––and many, many other things. And those things are
 important.
       However, we should also look at how we are funding this HBi3inow and
 into the future. We increase the basic allotment by collapsing the cost of
 education index, by collapsing the high school allotment, by collapsing GT, and
 other formula changes. In other words, no new money. And that s’ okay. We just
 shifted some priorities, and that ’s fine, but we need to be aware of that into the
 future. We ’re trying to buy down $5ibillion of tax savings through compression
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6137

 in 2020iand 2021iat eight and 13icents. And the way we ’re doing it in part is
 what we talked about earlier––in the current year evaluation formulas as opposed
 to past years. It ’s important that we know this, members, and I urge you to listen
 to what we ’re saying here. This tax savings, this $200ithat we ’re going to be
 receiving in this tax portion of this bill––it talks about saving the average
 homeowner about $200, but we have failed to look at the basic functions of
 what ’s happening to our taxpayers, and that ’s their appraisals. No matter what the
 city councilman says or the school board member says or the county judge
 says––that they ’ve cut our taxes or that the tax rate didn t’ go up––the appraisals
 continue to go up and up. This is something that we need to be very concerned
 about and cognizant about. We need to be looking at new revenue.
       I ’m going to vote for this bill because it ’s a good bill. But understand that
 into the future, we need to figure out how to pay for this bill. We need to look at
 how much we ’re losing to every state around us––$24ibillion in consumption on
 our casinos, $3ibillion in taxation, and we ’re losing this money to every state
 around us that has casino gaming. One-third of the states in the United States
 have passed legalized marijuana where we could generate $5ibillion. That ’s
 $8ibillion that we can generate in the State of Texas with casino gaming and
 marijuana, and I urge you now that we start looking at this. Sixty-six percent of
 all Texans want recreational marijuana. Under no certain terms should we ever,
 ever talk about raising sales taxes in this state when we have other options
 possible to us. This is a lofty bill. It ’s a good bill. Remember, members, it ’s a
 game of inches. We need to go find the money, okay? We need to find this
 money. I want to quote my good friend Todd Hunter: "Together we can. Juntos
 podemos hacer muchas cosas."
 REPRESENTATIVE MARTINEZ FISCHER: I l’l be brief. I ’m going to vote for
 this bill, and I, too, want to congratulate Chairman Huberty. I will tell you that
 when Chairman Huberty was working the floor for this vote, he wasn t’ just
 interested in my vote. He was also interested in getting in a car with me, driving
 to San Antonio, and winning over about 15isuperintendents. We fought a traffic
 jam, we fought road closures, and we practically fought a closed courthouse, but
 darn it, Chairman Huberty listened to every superintendent. And not only did he
 listen to them, I see the feedback from those superintendents embedded in HBi3.
 I don t’ know another member that went through that length to pass a good piece
 of public policy. And for that, I ’m in debt to Chairman Huberty, and I ’m going to
 vote for this bill. But as a member of the Ways and Means Committee, where the
 revenue comes––I think I have to be sober in terms of the outlook of where we go
 on a going forward basis. I, too, like Chairwoman Thompson and Speaker
 Bonnen and a few others, served in 2006iand in 2007iwhen we spent $14ibillion
 on tax cuts. Probably about 20ipercent of the body was there. We spent
 $14ibillion on tax cuts, and many people never saw them because of rising home
 values. And I remember that. I remember we created a tax to pay for those tax
 cuts and to sustain them, and they never came to fruition.
       And so my only criticism of this bill is to make sure that, for the sake of not
 having legislative amnesia down the road, when we come back––or those of you
 who are fortunate enough to come back in the 87th––that we ’re going to have to
6138             86th LEGISLATURE — REGULAR SESSION

 roll up our sleeves, bipartisan, bicameral. We own this now. We own this policy,
 and it ’s going to cost $13.3ibillion in two years, and we may just not have it. We
 may not have all the extra money in Wayfair. We may not have current values to
 use. And we may owe a few billion dollars to the Medicaid underfunding that
 may take place in HBi1. And so I just want to be cognizant for this record that
 when we take this vote, we will celebrate for the hardworking children in our
 public schools. But we also will not forget the 140,000ichildren who will join
 these 5.4imillion children in the next two years, and we come back, and we work
 in earnest to provide a sustainable path that will support increasing the cost of this
 bill for schools. And to the extent that this body chooses to continue to invest in
 continued property tax by way of compression, that ’s not cheap. While we may
 have a revenue cap embedded in this bill, we do not have a population cap. Our
 schools are going to get bigger, and their needs are going to grow, and we cannot
 ignore that fact. And so I look forward, should I be fortunate to be with you all in
 the 87th, that we have a very honest and deliberate discussion about finding the
 revenue to support this proposal. But Mr.iSpeaker, please show me voting aye.
 Thank you, Chairman Huberty and members of the Public Education Committee.
 REPRESENTATIVE COLEMAN: I have been very lucky this session, Mr.
 Huberty, to have you as a member of the County Affairs Committee. You have
 done an excellent job there, just as you have done an excellent job looking out for
 all the schoolchildren of the State of Texas and what you ’ve done here. I just want
 you to know that I appreciate everything that you have done on behalf of all
 Texans and every member of this house. So thank you very much.
 HUBERTY: Members, I would like to give a special note of appreciation to a few
 folks who helped me carry the water and really get us here. First and foremost, I ’d
 like to thank my conferees that are standing around me, Diego, Mary, Trent, and
 Ken. You have no idea how hard they worked, and I want you to give them all a
 big round of applause. I ’m telling you, they worked hard. They played an
 unbelievably pivotal role, and the day that we walked in on Saturday dressed
 alike with our committee shirts on, the senate kind of looked at us like, okay,
 these guys are ready to roll.
       Next, I must thank the Speaker, Mr.iBonnen. Thank you for allowing us the
 opportunity to act independently but providing us the authority to make necessary
 decisions that finally moved the ball across the finish line. Your leadership was
 certainly crucial in getting this done. You l’l have to share the story with the rest
 of the members about 10iminutes before the press conference started and where
 we were at. Similarly, many thanks are due to Governor Abbott and to his staff
 but in particular, to my friend Tommy Williams, who served in this body and gets
 it and understands how this process works. We couldn t’ have done it without
 them. And I want to thank Lieutenant Governor Patrick for the work that he did
 and certainly my partner, Senator Taylor in the senate, who ’s become a dear
 friend. Your leadership on this issue and pushing us to make sure we ’re
 compensating our teachers and doing the right things has been great. And
 similarly to Senators Watson, Nelson, Campbell, and West, as part of our other
 conferees working to get this done.
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                           6139

       I ’d also be remiss not to thank the folks from TEA, Leo Lopez, Al
 McKenzie, Von Byer, and Commissioner Morath––you have no idea the amount
 of work that went into getting these runs and different versions of that; certainly
 the folks at LBB, Andy MacLaurin, and Aaron Henricksen; and certainly the
 commission members who spent a year of their life helping to craft this plan but
 especially Chairman Brister and Todd Williams. I need to thank our staff who
 made this happen:iAndrea Sheridan, who spent hundreds of hours, and Amy
 Peterson, sitting up in the gallery, and the rest of my staff––Casey Christman; my
 legislative director, Jack Reed; and Chandler Skolnick. Thank you for all the
 work that you guys have done this session and certainly to our interns.
       Thank you to my great committee that ’s standing around me right now.
 You ’ve been amazing. I certainly love sitting with, next to, and visiting with
 Harold Dutton. I always know when there ’s going to be a question coming
 because he starts groaning and starts reaching for his button. And Dr. Allen has
 always taught us to think about the kids. None of us could do this without our
 families. To my wife, Janet, and to my kids, Ryan, Brianna and Dylan, thank you
 for allowing us as members to serve and be gone to focus on the other 5.4imillion
 children and their families in Texas instead of ours for these last five months. I
 think that ’s important. And I ’d certainly also like to thank Sylvia Zerwas for the
 latest spring addition to my wardrobe and for dressing me again today. Thank
 you, Sylvia. And lastly, members, I want to thank each of you for your support
 and dedication to making sure we got this right.
       Mr. Speaker, you made a comment. You made a comment, Mr.iSpeaker, at
 the press conference that we won the Super Bowl, and it didn t’ matter who won.
 Mr.iSpeaker, we have a little gift for you. If you haven t’ seen our committee gift,
 it looks like a Super Bowl ring, and that is your gift from the Committee on
 Public Education to never forget the work that you did. We are truly transforming
 public school finance in Texas, and all of you have been a large part of that. So
 on behalf of the 5.4imillion children and the hundreds of thousands of educators,
 I move to adopt the conference committee report for HBi3, the Texas Plan.
     Representative Huberty moved to adopt the conference committee report on
 HBi3.
     The motion to adopt the conference committee report on HBi3 prevailed by
 (Record 1941): 139 Yeas, 0 Nays, 0 Present, not voting.
      Yeas — Mr. Speaker(C); Allen; Anchia; Anderson; Ashby; Bailes; Beckley;
 Bell, C.; Bell, K.; Bernal; Biedermann; Blanco; Bohac; Bonnen; Bowers;
 Buckley; Bucy; Burns; Burrows; Button; Cain; Calanni; Canales; Capriglione;
 Cole; Coleman; Collier; Cortez; Craddick; Cyrier; Darby; Davis, Y.; Dean;
 Deshotel; Dominguez; Fierro; Flynn; Frank; Frullo; Geren; Gervin-Hawkins;
 Goldman; González, J.; González, M.; Goodwin; Guerra; Guillen; Gutierrez;
 Harless; Harris; Hefner; Hernandez; Hinojosa; Holland; Howard; Huberty;
 Hunter; Israel; Johnson, J.E.; Kacal; King, K.; King, P.; King, T.; Klick; Krause;
 Kuempel; Lambert; Landgraf; Lang; Larson; Leach; Leman; Longoria; Lopez;
 Lozano; Martinez; Martinez Fischer; Metcalf; Meyer; Meza; Middleton; Miller;
 Minjarez; Moody; Morales; Morrison; Muñoz; Murphy; Murr; Neave; Nevárez;
6140            86th LEGISLATURE — REGULAR SESSION

 Noble; Oliverson; Ortega; Pacheco; Paddie; Parker; Patterson; Paul; Perez;
 Phelan; Price; Ramos; Raney; Raymond; Reynolds; Rodriguez; Rose; Rosenthal;
 Sanford; Schaefer; Shaheen; Sheffield; Sherman; Shine; Smith; Smithee;
 Springer; Stephenson; Stickland; Stucky; Swanson; Talarico; Thierry; Thompson,
 E.; Thompson, S.; Tinderholt; Toth; Turner, C.; Turner, J.; VanDeaver; Walle;
 White; Wilson; Wray; Wu; Zedler; Zerwas; Zwiener.
     Absent, Excused — Clardy; Davis, S.; Dutton; Herrero; Johnson, E.;
 Johnson, J.D.; Lucio; Romero; Vo.
       Absent — Allison; Farrar.
                            STATEMENTS OF VOTE
      When Record No. 1941 was taken, I was in the house but away from my
 desk. I would have voted yes.
                                                                              Allison
      When Record No. 1941 was taken, I was excused because of illness in the
 family. I would have voted yes.
                                                                             S. Davis
      When Record No. 1941 was taken, I was excused because of family
 business. I would have voted yes.
                                                                             Romero
         HBi3 - STATEMENT FOR INCLUSION IN THE JOURNAL
      Representative Martinez Fischer submitted the following statement for
 inclusion in the journal:
       When passed by the house, HBi3 achieved what was nearly impossible. It
 made a significant investment of $6.3 billion in our public school system that was
 balanced by reducing property taxes by $2.7 billion. HBi3 is a worthy policy
 beyond the investment of dollars in our schools and teachers. It restores pre-K
 education. It eliminates outcomes-based testing. Most importantly, HBi3
 empowers school boards and superintendents to focus on the unique needs of
 their districts.
       The house did a magnificent job. That is why the bill passed nearly
 unanimously. Unfortunately, the senate took another approach. Somewhere along
 the way, the decision was made to transform an education bill into a property tax
 vehicle. The resulting compromise between the senate and house conferees adds
 a $5.5 billion tax cut by compressing the tax rate for schools and further limits the
 revenue growth for future public education budgets.
       In the next year, 140,000 new children will begin school in Texas, joining
 the 5.4 million already there. As a result of this compromise, every student will
 enter a school finance system with no sustainability plan or revenue stream to
Saturday, May 25, 2019         HOUSE JOURNAL — 74th Day                            6141

 support how the state will maintain current expenditures, let alone make
 adjustments for future population growth. Equally as concerning is the fact that
 future lawmakers will not be able to sustain these continued tax cuts.
       We have seen this before. In 2006-2007, $14 billion was spent on property
 tax cuts that were eviscerated in property value growth. We enacted an ill-advised
 margins tax to pay for those property tax cuts. When it failed, as predicted by
 critics like myself, schoolchildren suffered and $5.4 billion was cut from our
 public schools to make up for the shortfall.
       Just like 12 years ago, this legislature has failed to provide a long-term
 funding solution that will maintain both our commitments to homeowners and to
 schoolchildren. In the coming years, Texas leaders will face difficult economic
 choices. When those leaders turn to our budget, they will be challenged by the
 near impossibility of identifying the $13.4 billion in general revenue that the
 LBBiestimates HBi3 will cost in the next biennium. The choice will be simple.
 Those leaders will have to raise taxes or make severe cuts to public education.
       There are only a few lawmakers present today that were witness to the
 tragedy of the 2011 Legislative Session. To combat legislative amnesia, I am
 compelled to state for the record that we have seen this before and we are making
 the same mistake again. We are again making property tax cut promises without
 the financial means to pay for them. If history is any guide, our public schools
 will end up paying the price.
       HBi3 is one of the most significant bills to come before this body, but none
 of its provisions will matter, none of our work will matter unless there is a plan to
 sustain its investments in full beyond this biennium. Those of us voting in
 support of HBi3 today must hold ourselves accountable for finding those revenue
 streams in order for the 87th Legislature to honor this financial commitment.
                                            Martinez Fischer, Beckley, J. González,
                                           Goodwin, Israel, Meza, Morales, Muñoz,
                                                      Ramos, Rodriguez, and Rose
                      PROVIDING FOR ADJOURNMENT
      At 8:25ip.m., Representative Flynn moved that, at the conclusion of the
 signing of bills and resolutions and the receipt of messages from the senate, the
 house adjourn until 3ip.m. tomorrow in memory of Master Sergeant Jonathan
 J.iDunbar of Austin, Sergeant Cameron A.iMeddock of Spearman, Specialist
 Alexander W.iMissildine of Tyler, Chief Warrant Officer 2 Lee M.iSmith of
 Arlington, and Specialist Allen Levi Stigler Jr. of Arlington.
      The motion prevailed.
                                 ADJOURNMENT
     In accordance with a previous motion, the house, at 2:54ip.m. Sunday,
 Mayi25, adjourned until 3ip.m. today.
6142            86th LEGISLATURE — REGULAR SESSION



                        AAAAAADDENDUMAAAAA


                         SIGNED BY THE SPEAKER
     The following bills and resolutions were today signed in the presence of the
 house by the speaker:
 Senate List No. 28
     SBi14, SBi21, SBi24, SBi26, SBi27, SBi37, SBi40, SBi139, SBi198,
 SBi235, SBi285, SBi300, SBi357, SBi362, SBi437, SBi475, SBi493, SBi530,
 SBi535, SBi607, SBi608, SBi615, SBi633, SBi658, SBi670, SBi683, SBi700,
 SBi711, SBi772, SBi936, SBi969, SBi988, SBi1152, SBi1189, SBi1337,
 SBi1468, SBi1474, SBi1497, SBi1510, SBi1525, SBi1545, SBi1575, SBi1582,
 SBi1793, SBi1834, SBi1835, SBi1861, SBi1940, SBi2018, SBi2111, SBi2137,
 SBi2200, SBi2286, SJRi24
 Senate List No. 29
     SBi7, SBi41, SBi54, SBi71, SBi212, SBi230, SBi237, SBi384, SBi405,
 SBi511, SBi563, SBi569, SBi662, SBi706, SBi741, SBi819, SBi869, SBi1056,
 SBi1177, SBi1184, SBi1219, SBi1231, SBi1303, SBi1311, SBi1404, SBi1636,
 SBi1702, SBi1754, SBi1755, SBi2409, SCRi7, SCRi58, SCRi59
 Senate List No. 30
     SBi38, SBi68, SBi207, SBi232, SBi284, SBi289, SBi339, SBi340, SBi341,
 SBi479, SBi504, SBi548, SBi550, SBi572, SBi575, SBi688, SBi708, SBi747,
 SBi749, SBi810, SBi902, SBi907, SBi943, SBi948, SBi952, SBi976, SBi981,
 SBi986, SBi1091, SBi1125, SBi1147, SBi1164, SBi1180, SBi1210, SBi1217,
 SBi1221, SBi1230, SBi1271, SBi1283, SBi1319, SBi1336, SBi1374, SBi1386,
 SBi1397, SBi1414, SBi1422, SBi1441, SBi1476, SBi1494, SBi1593, SBi1623,
 SBi1640, SBi1642, SBi1778, SBi1788, SBi1806, SBi1827, SBi1828, SBi1852,
 SBi1859, SBi1887, SBi1928, SBi1943, SBi1969, SBi1971, SBi1978, SBi2011,
 SBi2015, SBi2073, SBi2083, SBi2119, SBi2143, SBi2168, SBi2215, SBi2223,
 SBi2248, SBi2270, SBi2296, SBi2309, SBi2315, SBi2330, SBi2364, SBi2410,
 SBi2445, SBi2456, SBi2531, SBi2558, SBi2060
 Senate List No. 31
     SBi16, SBi22, SBi25, SBi346, SBi632, SBi667, SBi709, SBi719, SBi748,
 SBi750, SBi1214, SBi1238, SBi1621, SBi1823, SBi1876, SBi2293, SBi2535,
 SCRi64
 Senate List No. 32
     SBi64, SBi65, SBi69, SBi194, SBi322, SBi345, SBi372, SBi489, SBi502,
 SBi560, SBi1264, SBi2212
Saturday, May 25, 2019       HOUSE JOURNAL — 74th Day                        6143

                      MESSAGES FROM THE SENATE
      The following messages from the senate were today received by the house:
 Message No. 1
                       MESSAGE FROM THE SENATE
                           SENATE CHAMBER
                               Austin, Texas
                          Saturday, May 25, 2019
 The Honorable Speaker of the House
 House Chamber
 Austin, Texas
 Mr. Speaker:
 I am directed by the senate to inform the house that the senate has taken the
 following action:
 THE SENATE HAS CONCURRED IN THE HOUSE AMENDMENTS TO
 THE FOLLOWING MEASURES:
 SB 8              (30 Yeas, 0 Nays)
 SB 58             (30 Yeas, 0 Nays)
 SB 241            (30 Yeas, 0 Nays)
 SB 483            (30 Yeas, 0 Nays)
 SB 520            (30 Yeas, 0 Nays)
 SB 592            (30 Yeas, 0 Nays)
 SB 712            (30 Yeas, 0 Nays)
 SB 751            (30 Yeas, 0 Nays)
 SB 820            (30 Yeas, 0 Nays)
 SB 1017           (30 Yeas, 0 Nays)
 SB 1083           (30 Yeas, 0 Nays)
 SB 1138           (30 Yeas, 0 Nays)
 SB 1200           (30 Yeas, 0 Nays)
 SB 1451           (30 Yeas, 0 Nays)
 SB 1454           (30 Yeas, 0 Nays)
 SB 1504           (29 Yeas, 1 Nay)
 SB 1519           (30 Yeas, 0 Nays)
 SB 1564           (30 Yeas, 0 Nays)
 SB 1570           (30 Yeas, 0 Nays)
 SB 1757           (30 Yeas, 0 Nays)
 SB 1995           (25 Yeas, 5 Nays)
 SB 2117           (27 Yeas, 3 Nays)
6144            86th LEGISLATURE — REGULAR SESSION

 SB 2128                    (30 Yeas, 0 Nays)
 SB 2136                    (30 Yeas, 0 Nays)
 SB 2156                    (30 Yeas, 0 Nays)
 SB 2272                    (30 Yeas, 0 Nays)
 SB 2283                    (29 Yeas, 1 Nay)
 SB 2452                    (22 Yeas, 8 Nays)
 SB 2530                    (30 Yeas, 0 Nays)
 SB 2552                    (28 Yeas, 2 Nays)
 SB 2553                    (30 Yeas, 0 Nays)
 SJR 79                     (22 Yeas, 8 Nays)
 Respectfully,
 Patsy Spaw
 Secretary of the Senate



                           AAAAAAPPENDIXAAAAA


                                 ENROLLED
    May 24 - HBi5, HBi29, HBi69, HBi101, HBi279, HBi292, HBi356,
 HBi368, HBi396, HBi406, HBi489, HBi515, HBi539, HBi555, HBi651,
 HBi685, HBi687, HBi696, HBi706, HBi771, HBi803, HBi831, HBi956,
 HBi996, HBi1135, HBi1343, HBi1401, HBi1404, HBi1474, HBi1524,
 HBi1532, HBi1574, HBi1614, HBi1697, HBi1709, HBi1771, HBi1850,
 HBi1900, HBi2042, HBi2305, HBi2318, HBi2364, HBi2365, HBi2629,
 HBi2659, HBi2668, HBi2757, HBi2794, HBi2810, HBi2813, HBi2816,
 HBi3091, HBi3117, HBi3124, HBi3145, HBi3147, HBi3163, HBi3203,
 HBi3247, HBi3252, HBi3306, HBi3314, HBi3435, HBi3436, HBi3522,
 HBi3635, HBi3716, HBi4075, HBi4350, HBi4673, HBi4674, HBi4698,
 HBi4704, HBi4709, HBi4716, HBi4719, HBi4720, HBi4721, HBi4725,
 HBi4728, HBi4729, HBi4731, HBi4734, HBi4741, HBi4744, HBi4747,
 HBi4754, HBi4762, HCRi76, HCRi86, HCRi117, HCRi148, HCRi177,
 HCRi180
                           SENT TO THE GOVERNOR
     May 24 - HBi7, HBi23, HBi51, HBi93, HBi137, HBi162, HBi165,
 HBi273, HBi277, HBi300, HBi304, HBi310, HBi330, HBi345, HBi369,
 HBi387, HBi449, HBi455, HBi519, HBi541, HBi554, HBi587, HBi635,
 HBi643, HBi653, HBi667, HBi678, HBi770, HBi807, HBi819, HBi837,
 HBi881, HBi882, HBi884, HBi902, HBi1060, HBi1136, HBi1143, HBi1191,
 HBi1225, HBi1306, HBi1307, HBi1379, HBi1505, HBi1542, HBi1605,
 HBi1607, HBi1652, HBi1661, HBi1674, HBi1676, HBi1678, HBi1693,
Saturday, May 25, 2019    HOUSE JOURNAL — 74th Day                    6145

 HBi1717, HBi1791, HBi1810, HBi1815, HBi1888, HBi1891, HBi1896,
 HBi1901, HBi1940, HBi2075, HBi2092, HBi2111, HBi2167, HBi2214,
 HBi2229, HBi2245, HBi2256, HBi2290, HBi2331, HBi2358, HBi2461,
 HBi2475, HBi2504, HBi2571, HBi2577, HBi2594, HBi2617, HBi2643,
 HBi2660, HBi2677, HBi2698, HBi2709, HBi2734, HBi2780, HBi2789,
 HBi2791, HBi2792, HBi2809, HBi2812, HBi2826, HBi2830, HBi2914,
 HBi2950, HBi3006, HBi3007, HBi3011, HBi3022, HBi3040, HBi3044,
 HBi3068, HBi3116, HBi3165, HBi3167, HBi3175, HBi3209, HBi3211,
 HBi3214, HBi3228, HBi3300, HBi3339, HBi3366, HBi3386, HBi3394,
 HBi3405, HBi3440, HBi3463, HBi3471, HBi3475, HBi3503, HBi3529,
 HBi3601, HBi3656, HBi3663, HBi3671, HBi3688, HBi3689, HBi3754,
 HBi3760, HBi3768, HBi3780, HBi3910, HBi3934, HBi4130, HBi4170,
 HBi4171, HBi4172, HBi4173, HBi4179, HBi4195, HBi4236, HBi4520,
 HBi4636, HBi4646, HBi4656, HBi4659, HBi4663, HBi4666, HBi4669,
 HBi4671, HBi4675, HBi4680, HBi4684, HBi4691, HBi4692, HBi4694,
 HBi4695, HBi4696, HBi4705, HBi4718, HBi4724, HBi4726, HBi4727,
 HBi4733, HCRi35, HCRi120
               SENT TO THE SECRETARY OF THE STATE
      May 24 - HJRi38, HJRi95
          RECOMMENDATIONS FILED WITH THE SPEAKER
      May 24 - HBi3095, HBi3122, HBi4760, HBi4763, HBi4764, HBi4765
                    SIGNED BY THE GOVERNOR
     May 24 - HBi39, HBi71, HBi105, HBi306, HBi339, HBi347, HBi374,
 HBi380, HBi392, HBi402, HBi405, HBi559, HBi598, HBi695, HBi723,
 HBi791, HBi799, HBi811, HBi853, HBi917, HBi986, HBi1064, HBi1067,
 HBi1218, HBi1300, HBi1331, HBi1385, HBi1415, HBi1422, HBi1494,
 HBi1508, HBi1520, HBi1525, HBi1554, HBi1821, HBi1996, HBi2039,
 HBi2079, HBi2105, HBi2127, HBi2228, HBi2235, HBi2243, HBi2298,
 HBi2326, HBi2330, HBi2338, HBi2425, HBi2458, HBi2471, HBi2551,
 HBi2570, HBi2597, HBi2820, HBi2900, HBi3020, HBi3217, HBi3422,
 HBi3459, HBi3580, HBi4651, HCRi47, HCRi59, HCRi122
           FILED WITHOUT THE GOVERNOR ’S SIGNATURE
     May 24 - HBi2888, HBi3093, HBi3094, HBi3095, HBi3122, HBi3246,
 HBi4650, HBi4654

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