Bill Text: TX HB1525 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the public school finance system and public education.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-16 - See remarks for effective date [HB1525 Detail]
Download: Texas-2021-HB1525-Introduced.html
Bill Title: Relating to the public school finance system and public education.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-16 - See remarks for effective date [HB1525 Detail]
Download: Texas-2021-HB1525-Introduced.html
87R12935 MEW/KJE/BDP-F | ||
By: Huberty | H.B. No. 1525 |
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relating to the public school finance system. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 12.106, Education Code, is amended by | ||
adding Subsections (a-5) and (a-6) to read as follows: | ||
(a-5) To ensure compliance with the requirements for the | ||
maintenance of state financial support for special education under | ||
20 U.S.C. Section 1412(a)(18), in determining the funding for an | ||
open-enrollment charter school under Subsection (a) for the Section | ||
48.102 allotment, the commissioner shall: | ||
(1) if necessary, increase the amount of that | ||
allotment to an amount equal to the amount the charter holder was | ||
entitled to receive for the charter school under the allotment | ||
under former Section 42.151, Education Code, for the 2018-2019 | ||
school year; and | ||
(2) reduce the amount of the allotment the charter | ||
holder is entitled to receive for the charter school under | ||
Subsection (a-2) by the amount of any increase provided for the | ||
charter school under Subdivision (1). | ||
(a-6) Subsection (a-5) and this subsection expire September | ||
1, 2025. | ||
SECTION 2. Sections 12.133(b), (b-1), and (c), Education | ||
Code, are amended to read as follows: | ||
(b) Each school year, [ |
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holder that participated in the program under Chapter 1579, | ||
Insurance Code, for the 2005-2006 school year shall provide | ||
employees of the charter holder, other than administrators, | ||
compensation in the form of annual salaries, incentives, or other | ||
compensation determined appropriate by the charter holder that | ||
results in an average compensation increase for classroom teachers, | ||
full-time librarians, full-time school counselors, and full-time | ||
school nurses who are employed by the charter holder and who would | ||
be entitled to a minimum salary under Section 21.402 if employed by | ||
a school district, in an amount at least equal to $2,500. | ||
(b-1) A [ |
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participated in the program under Chapter 1579, Insurance Code, for | ||
the 2005-2006 school year shall provide employees of the charter | ||
holder, other than administrators, compensation in the form of | ||
annual salaries, incentives, or other compensation determined | ||
appropriate by the charter holder that results in average | ||
compensation increases as follows: | ||
(1) for full-time employees other than employees who | ||
would be entitled to a minimum salary under Section 21.402 if | ||
employed by a school district, an average increase at least equal to | ||
$500; and | ||
(2) for part-time employees, an average increase at | ||
least equal to $250. | ||
(c) Each school year, [ |
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holder that did not participate in the program under Chapter 1579, | ||
Insurance Code, for the 2005-2006 school year shall provide | ||
employees of the charter holder, other than administrators, | ||
compensation in the form of annual salaries, incentives, or other | ||
compensation determined appropriate by the charter holder that | ||
results in an average compensation increase for classroom teachers, | ||
full-time librarians, full-time school counselors, and full-time | ||
school nurses who are employed by the charter holder and who would | ||
be entitled to a minimum salary under Section 21.402 if employed by | ||
a school district, in an amount at least equal to $2,000. | ||
SECTION 3. Section 25.001(h), Education Code, is amended to | ||
read as follows: | ||
(h) In addition to the penalty provided by Section 37.10, | ||
Penal Code, a person who knowingly falsifies information on a form | ||
required for enrollment of a student in a school district is liable | ||
to the district if the student is not eligible for enrollment in the | ||
district but is enrolled on the basis of the false information. The | ||
person is liable, for the period during which the ineligible | ||
student is enrolled, for [ |
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[ |
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[ |
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student as maintenance and operating expenses. | ||
SECTION 4. Section 37.108(b-1), Education Code, is amended | ||
to read as follows: | ||
(b-1) In a school district's safety and security audit | ||
required under Subsection (b), the district must certify that the | ||
district used the funds provided to the district through the school | ||
safety allotment under Section 48.115 [ |
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purposes provided by that section. | ||
SECTION 5. Section 39.0261, Education Code, is amended by | ||
adding Subsection (a-1) and amending Subsection (b) to read as | ||
follows: | ||
(a-1) Notwithstanding Subsection (a)(3), the commissioner | ||
by rule may allow a student to take at state cost an assessment | ||
instrument described by that subsection if circumstances existed | ||
that prevented the student from taking the assessment instrument | ||
before the student graduated from high school. | ||
(b) The agency shall: | ||
(1) select and approve vendors of the specific | ||
assessment instruments administered under this section and | ||
negotiate with each approved vendor a price for each assessment | ||
instrument; and | ||
(2) provide reimbursement to a school district in the | ||
amount negotiated under Subdivision (1) for [ |
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appropriated for that purpose. | ||
SECTION 6. Section 39.053(g-4), Education Code, is amended | ||
to read as follows: | ||
(g-4) For purposes of the computation of dropout and | ||
completion rates such as high school graduation rates under | ||
Subsection (c)(1)(B)(ix), the commissioner shall exclude a student | ||
who was reported as having dropped out of school under Section | ||
48.009(b-4) [ |
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have dropped out from the school district or campus in which the | ||
student was last enrolled. | ||
SECTION 7. Section 45.0021, Education Code, is amended by | ||
amending Subsection (a) and adding Subsections (c), (d), and (e) to | ||
read as follows: | ||
(a) A school district may not impose [ |
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the district's maintenance taxes described by Section 45.002 at a | ||
rate intended to create a surplus in maintenance tax revenue for the | ||
purpose of paying the district's debt service. | ||
(c) The agency shall: | ||
(1) develop a method to identify school districts that | ||
may have adopted a maintenance tax rate in violation of Subsection | ||
(a), which must include a review of data over multiple years; | ||
(2) for each school district identified under the | ||
method developed under Subdivision (1), investigate as necessary to | ||
determine whether the district has adopted a maintenance tax rate | ||
in violation of Subsection (a); and | ||
(3) if the agency determines that a school district | ||
has adopted a maintenance tax rate in violation of Subsection (a): | ||
(A) order the district to comply with Subsection | ||
(a) not later than three years after the date of the order; and | ||
(B) assist the district in developing a | ||
corrective action plan that, to the extent feasible, does not | ||
result in a net increase in the district's total tax rate. | ||
(d) The implementation of a corrective action plan under | ||
Subsection (c)(3)(B) does not prohibit a school district from | ||
increasing the district's total tax rate as necessary to achieve | ||
other legal purposes. | ||
(e) If a school district fails to take action under a | ||
corrective action plan developed under Subsection (c)(3)(B), the | ||
commissioner may impose on the district any interventions or | ||
sanctions under Chapter 39A the commissioner deems appropriate. | ||
Section 39A.003(c)(5) does not apply to a conservator or management | ||
team appointed for a school district under this subsection. | ||
SECTION 8. Section 48.009, Education Code, is amended by | ||
amending Subsection (b) and adding Subsection (b-4) to read as | ||
follows: | ||
(b) The commissioner by rule shall require each school | ||
district and open-enrollment charter school to report through the | ||
Public Education Information Management System information | ||
regarding: | ||
(1) the number of students enrolled in the district or | ||
school who are identified as having dyslexia; | ||
(2) the availability of school counselors, including | ||
the number of full-time equivalent school counselors, at each | ||
campus; | ||
(3) the availability of expanded learning | ||
opportunities as described by Section 33.252 at each campus; | ||
(4) the total number of students, other than students | ||
described by Subdivision (5), enrolled in the district or school | ||
with whom the district or school, as applicable, used intervention | ||
strategies, as that term is defined by Section 26.004, at any time | ||
during the year for which the report is made; [ |
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(5) the total number of students enrolled in the | ||
district or school to whom the district or school provided aids, | ||
accommodations, or services under Section 504, Rehabilitation Act | ||
of 1973 (29 U.S.C. Section 794), at any time during the year for | ||
which the report is made; | ||
(6) disaggregated by campus and grade, the number of: | ||
(A) children who are required to attend school | ||
under Section 25.085, are not exempted under Section 25.086, and | ||
fail to attend school without excuse for 10 or more days or parts of | ||
days within a six-month period in the same school year; | ||
(B) students for whom the district initiates a | ||
truancy prevention measure under Section 25.0915(a-4); and | ||
(C) parents of students against whom an | ||
attendance officer or other appropriate school official has filed a | ||
complaint under Section 25.093; and | ||
(7) the number of students who are enrolled in a high | ||
school equivalency program, a dropout recovery school, or an adult | ||
education program provided under a high school diploma and industry | ||
certification charter school program provided by the district or | ||
school and who: | ||
(A) are at least 18 years of age and under 26 | ||
years of age; | ||
(B) have not previously been reported to the | ||
agency as dropouts; and | ||
(C) enroll in the program at the district or | ||
school after not attending school for a period of at least nine | ||
months. | ||
(b-4) A student reported under Subsection (b)(7) as having | ||
enrolled in a high school equivalency program, a dropout recovery | ||
school, or an adult education program provided under a high school | ||
diploma and industry certification charter school program must be | ||
reported through the Public Education Information Management | ||
System as having previously dropped out of school. | ||
SECTION 9. Section 48.101(a), Education Code, is amended to | ||
read as follows: | ||
(a) Small and mid-sized districts are entitled to an annual | ||
allotment in accordance with this section. In this section: | ||
(1) "AA" is the district's annual allotment per | ||
student in average daily attendance; | ||
(2) "ADA" is the number of students in average daily | ||
attendance determined [ |
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(3) "BA" is the basic allotment determined under | ||
Section 48.051. | ||
SECTION 10. Section 48.104, Education Code, is amended by | ||
adding Subsection (e-1) to read as follows: | ||
(e-1) For each student who is a homeless child or youth as | ||
defined by 42 U.S.C. Section 11434a, a school district is entitled | ||
to an annual allotment equal to the basic allotment multiplied by | ||
the highest weight provided under Subsection (d). | ||
SECTION 11. Section 48.106, Education Code, is amended by | ||
amending Subsection (a) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) For each full-time equivalent student in average daily | ||
attendance in an approved career and technology education program | ||
in grades 7 through 12, a district is entitled to: | ||
(1) an annual allotment equal to the basic allotment | ||
multiplied by a weight of 1.35; and | ||
(2) $50 if [ |
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student is enrolled in[ |
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[ |
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education classes for a total of three or more credits. | ||
(a-1) In addition to the amounts under Subsection (a), a | ||
district is entitled to $50 for each student in average daily | ||
attendance enrolled at: | ||
(1) [ |
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[ |
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Section 29.556; or | ||
(2) [ |
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Network and that focuses on project-based learning and work-based | ||
education. | ||
SECTION 12. Section 48.106(b)(1), Education Code, is | ||
amended to read as follows: | ||
(1) "Career and technology education class" and | ||
"career and technology education program" include: | ||
(A) technology applications courses; and | ||
(B) only courses or programs designed for the | ||
high school level. | ||
SECTION 13. Section 48.110(f), Education Code, is amended | ||
to read as follows: | ||
(f) For purposes of this section, an annual graduate | ||
demonstrates: | ||
(1) college readiness if the annual graduate: | ||
(A) both: | ||
(i) achieves 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 | ||
(ii) [ |
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by commissioner rule, enrolls at a postsecondary educational | ||
institution; or | ||
(B) earns an associate degree while attending | ||
high school or during a time period established by commissioner | ||
rule; | ||
(2) career readiness if the annual graduate: | ||
(A) achieves 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) during a time period established by | ||
commissioner rule, earns an industry-accepted certificate; and | ||
(3) military readiness if the annual graduate: | ||
(A) achieves a passing score set by the | ||
applicable military branch on the Armed Services Vocational | ||
Aptitude Battery; and | ||
(B) during a time period established by | ||
commissioner rule, enlists in the armed forces of the United | ||
States. | ||
SECTION 14. Section 48.111, Education Code, is amended to | ||
read as follows: | ||
Sec. 48.111. FAST GROWTH ALLOTMENT. (a) A school district | ||
in which the growth in student enrollment in the district over the | ||
[ |
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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 the weight assigned to the district's | ||
growth category under Subsection (b) [ |
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average daily attendance. | ||
(b) The agency shall identify each school district that | ||
qualifies for an allotment under this section and rank those | ||
districts, from fastest to least fastest growth, based on student | ||
enrollment growth, during the period described by Subsection (a). | ||
Based on the rankings determined under this section, the agency | ||
shall divide the districts into four growth categories according to | ||
relative student enrollment growth. Each growth category must be of | ||
approximately equal student enrollments. If, based on student | ||
enrollment, a district is between two growth categories, the agency | ||
shall assign the district to the faster growth category. The weight | ||
for each growth category is assigned as follows: | ||
(1) 0.064 for the fastest growth category; | ||
(2) 0.048 for the second fastest growth category; | ||
(3) 0.032 for the third fastest growth category; and | ||
(4) 0.016 for the least fastest growth category. | ||
SECTION 15. Section 42.168, Education Code, as added by | ||
Chapter 464 (S.B. 11), Acts of the 86th Legislature, Regular | ||
Session, 2019, is transferred to Subchapter C, Chapter 48, | ||
Education Code, redesignated as Section 48.115, Education Code, and | ||
amended to read as follows: | ||
Sec. 48.115 [ |
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funds appropriated for that purpose, the commissioner shall provide | ||
to a school district an annual allotment in the amount provided by | ||
appropriation for each student in average daily attendance. | ||
(b) Funds allocated under this section must be used to | ||
improve school safety and security, including costs associated | ||
with: | ||
(1) securing school facilities, including: | ||
(A) improvements to school infrastructure; | ||
(B) the use or installation of physical barriers; | ||
and | ||
(C) the purchase and maintenance of: | ||
(i) security cameras or other security | ||
equipment; and | ||
(ii) technology, including communications | ||
systems or devices, that facilitates communication and information | ||
sharing between students, school personnel, and first responders in | ||
an emergency; | ||
(2) providing security for the district, including: | ||
(A) employing school district peace officers, | ||
private security officers, and school marshals; and | ||
(B) collaborating with local law enforcement | ||
agencies, such as entering into a memorandum of understanding for | ||
the assignment of school resource officers to schools in the | ||
district; | ||
(3) school safety and security training and planning, | ||
including: | ||
(A) active shooter and emergency response | ||
training; | ||
(B) prevention and treatment programs relating | ||
to addressing adverse childhood experiences; and | ||
(C) the prevention, identification, and | ||
management of emergencies and threats, including: | ||
(i) providing mental health personnel and | ||
support; | ||
(ii) providing behavioral health services; | ||
and | ||
(iii) establishing threat reporting | ||
systems; and | ||
(4) providing programs related to suicide prevention, | ||
intervention, and postvention. | ||
(c) A school district may use funds allocated under this | ||
section for equipment or software that is used for a school safety | ||
and security purpose and an instructional purpose, provided that | ||
the instructional use does not compromise the safety and security | ||
purpose of the equipment or software. | ||
[ |
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[ |
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SECTION 16. Section 48.2551, Education Code, is amended by | ||
amending Subsections (a) and (c) and adding Subsections (d-1) and | ||
(d-2) to read as follows: | ||
(a) In this section: | ||
(1) "DPV" is the taxable value of property in the | ||
school district, as determined by the agency by rule, using locally | ||
determined property values adjusted in accordance with Section | ||
403.302(d), Government Code [ |
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(2) "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) property value that is no longer subject to a | ||
limitation on appraised value under Chapter 313, Tax Code; and | ||
(B) property 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) "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) "PYDPV" is the district's value of "DPV" for the | ||
preceding tax year; and | ||
(5) "PYMCR" is the district's value of "MCR" for the | ||
preceding tax year. | ||
(c) Notwithstanding Subsection (b), for a district to which | ||
Section 48.2552(b) applies, the district's maximum compressed rate | ||
is the value calculated in accordance with Section 48.2552(b) [ |
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(d-1) Local appraisal districts, school districts, and the | ||
comptroller shall provide any information necessary to the agency | ||
to implement this section. | ||
(d-2) A school district may appeal to the commissioner the | ||
district's taxable property value as determined by the agency under | ||
this section. A decision by the commissioner is final and may not be | ||
appealed. | ||
SECTION 17. Section 48.2552(b), Education Code, is amended | ||
to read as follows: | ||
(b) If a school district's [ |
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compressed rate as calculated under Section 48.2551(b) would be | ||
[ |
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compressed rate, the district's maximum compressed rate is the | ||
value at which the district's maximum compressed rate would be | ||
equal to 90 percent of the other district's maximum compressed rate | ||
[ |
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SECTION 18. Section 48.257(c), Education Code, is amended | ||
to read as follows: | ||
(c) For purposes of Subsection (a), state aid to which a | ||
district is entitled under this chapter [ |
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district must reduce the district's [ |
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this section [ |
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offset under this subsection shall reduce the amount of state aid to | ||
which the district is entitled. | ||
SECTION 19. Subchapter F, Chapter 48, Education Code, is | ||
amended by adding Section 48.2721 to read as follows: | ||
Sec. 48.2721. RECOVERY OF FUNDS FROM EXCESSIVE TAXATION. | ||
The 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 Section 45.003 or this chapter. | ||
SECTION 20. Subchapter G, Chapter 48, Education Code, is | ||
amended by adding Section 48.303 to read as follows: | ||
Sec. 48.303. ADDITIONAL STATE AID FOR REGIONAL EDUCATION | ||
SERVICE CENTER STAFF SALARY INCREASES. (a) A regional education | ||
service center is entitled to state aid in an amount equal to the | ||
sum of: | ||
(1) the product of $500 multiplied by the number of | ||
full-time center employees, other than administrators or classroom | ||
teachers, full-time librarians, full-time school counselors | ||
certified under Subchapter B, Chapter 21, or full-time school | ||
nurses; and | ||
(2) the product of $250 multiplied by the number of | ||
part-time center employees, other than administrators or teachers, | ||
librarians, school counselors certified under Subchapter B, | ||
Chapter 21, or school nurses. | ||
(b) A determination by the commissioner under Subsection | ||
(a) is final and may not be appealed. | ||
SECTION 21. Subchapter A, Chapter 49, Education Code, is | ||
amended by adding Section 49.0041 to read as follows: | ||
Sec. 49.0041. LOCAL REVENUE LEVEL IN EXCESS OF ENTITLEMENT | ||
AFTER REVIEW NOTIFICATION. If the commissioner determines that a | ||
school district has a local revenue level in excess of entitlement | ||
after the date the commissioner sends notification for the school | ||
year under Section 49.004(a), the commissioner shall include the | ||
amount of the district's local revenue level that exceeded the | ||
level established under Section 48.257 for that school year in the | ||
annual review for the following school year of the district's local | ||
revenue levels under Section 49.004(a). | ||
SECTION 22. Section 49.054(b), Education Code, is amended | ||
to read as follows: | ||
(b) A consolidated [ |
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district under this subchapter [ |
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Subchapter G, Chapter 13. | ||
SECTION 23. Section 48.302, Education Code, is transferred | ||
to Subchapter J, Chapter 301, Labor Code, redesignated as Section | ||
301.172, Labor Code, and amended to read as follows: | ||
Sec. 301.172 [ |
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EXAMINATION FOR CERTAIN INDIVIDUALS. (a) From funds appropriated | ||
for this purpose, the commission [ |
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[ |
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older a subsidy in an amount equal to the cost of taking one high | ||
school equivalency examination administered under Section 7.111, | ||
Education Code. | ||
(b) [ |
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subsidy program described by Subsection (a) [ |
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regarding eligibility requirements. | ||
SECTION 24. Section 822.201(b), Government Code, is amended | ||
to read as follows: | ||
(b) "Salary and wages" as used in Subsection (a) means: | ||
(1) normal periodic payments of money for service the | ||
right to which accrues on a regular basis in proportion to the | ||
service performed; | ||
(2) amounts by which the member's salary is reduced | ||
under a salary reduction agreement authorized by Chapter 610; | ||
(3) amounts 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) the program or benefit options are made | ||
available to all employees of the employer; and | ||
(B) the 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) performance 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) the benefit replacement pay a person earns under | ||
Subchapter H, Chapter 659, except as provided by Subsection (c); | ||
(6) stipends paid to teachers in accordance with | ||
former Section 21.410, 21.411, 21.412, or 21.413, Education Code; | ||
(7) amounts 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) a merit salary increase made under Section 51.962, | ||
Education Code; | ||
(9) amounts 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) salary amounts designated as health care | ||
supplementation by an employee under Subchapter D, Chapter 22, | ||
Education Code; [ |
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(11) to 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; and | ||
(12) increased compensation paid to a teacher by a | ||
school district using funds received by the district under the | ||
teacher incentive allotment under Section 48.112, Education Code. | ||
SECTION 25. (a) The following provisions of the Education | ||
Code are repealed: | ||
(1) Sections 12.133(d), (d-1), and (e); | ||
(2) Section 25.038; | ||
(3) Sections 25.039(b) and (c); | ||
(4) Section 48.154; and | ||
(5) Sections 49.054(a) and (c). | ||
(b) The following provisions, which amended Section 42.006, | ||
Education Code, are repealed: | ||
(1) Section 2, Chapter 1036 (H.B. 548), Acts of the | ||
86th Legislature, Regular Session, 2019; and | ||
(2) Section 8, Chapter 1060 (H.B. 1051), Acts of the | ||
86th Legislature, Regular Session, 2019. | ||
SECTION 26. To the extent of any conflict, this Act prevails | ||
over another Act of the 87th Legislature, Regular Session, 2021, | ||
relating to nonsubstantive additions to and corrections in enacted | ||
codes. | ||
SECTION 27. This Act takes effect September 1, 2021. |