González Bill Rebuilds Special Education Funding Around Seven Tiers

The text as introduced · 4,679 words

89R8129 KJE-D

By: González of El Paso
H.B. No. 2419

A BILL TO BE ENTITLED

AN ACT

relating to special education and special education funding under

the Foundation School Program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 8.051(d), Education Code, is amended to

read as follows:

(d) Each regional education service center shall maintain

core services for purchase by school districts and campuses. The

core services are:

(1) training and assistance in:

(A) teaching each subject area assessed under

Section 39.023; and

(B) providing instruction in personal financial

literacy as required under Section 28.0021;

(2) training and assistance in providing each program

that qualifies for a funding allotment under Section 48.102,

48.1021, 48.103, 48.104, 48.105, or 48.109;

(3) assistance specifically designed for a school

district or campus assigned an unacceptable performance rating

under Section 39.054;

(4) training and assistance to teachers,

administrators, members of district boards of trustees, and members

of site-based decision-making committees;

(5) assistance 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) assistance in complying with state laws and rules.

SECTION 2. Subchapter I, Chapter 21, Education Code, is

amended by adding Section 21.4024 to read as follows:

Sec. 21.4024. SALARY STIPENDS FOR CERTAIN SPECIAL EDUCATION

EMPLOYEES. (a) A classroom teacher or full-time paraprofessional

assigned to and certified in special education is entitled to

receive an annual salary stipend in the amount of $1,000 plus $150

for each year of experience in special education, up to a maximum of

$2,500.

(b) A salary stipend a classroom teacher receives under this

section:

(1) is in addition to:

(A) the regular salary to which the teacher is

entitled under this subchapter; and

(B) any local supplement; and

(2) is not considered in determining whether the

district is paying the teacher the minimum monthly salary under

Section 21.402.

(c) A salary stipend a paraprofessional receives under this

section is in addition to any local supplement or wages the district

would otherwise pay the paraprofessional during the school year.

SECTION 3. Chapter 22, Education Code, is amended by adding

Subchapter E to read as follows:

SUBCHAPTER E. RETIRED SPECIAL EDUCATION TEACHER GRANT PROGRAM

Sec. 22.151. RETIRED SPECIAL EDUCATION TEACHER GRANT

PROGRAM. (a) From money appropriated or otherwise available for

the purpose, the commissioner shall establish a grant program to

reimburse school districts and open-enrollment charter schools for

the cost of required contributions under Section 825.4092,

Government Code, for the employment of a retiree hired to teach

special education or provide services related to special education.

(b) A grant received under the program may only be used for

the cost of required contributions for the employment of a retiree:

(1) who retired before September 1, 2024; or

(2) as provided by the General Appropriations Act.

(c) If the amount of grant requests under the program

exceeds the amount appropriated or otherwise available for the

purpose, the commissioner shall proportionately reduce the amount

of each grant.

SECTION 4. Section 29.002, Education Code, is amended to

read as follows:

Sec. 29.002. DEFINITION. In this subchapter, "special

services" means:

(1) special education instruction, which may be

provided by professional and supported by paraprofessional

personnel in a general education setting [ the regular classroom ] or

in a special education setting, as defined by commissioner rule [ an

instructional arrangement described by Section 48.102 ]; and

(2) related 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.

SECTION 5. Subchapter A, Chapter 29, Education Code, is

amended by adding Section 29.0055 to read as follows:

Sec. 29.0055. LOCAL INTELLECTUAL AND DEVELOPMENTAL

DISABILITY AUTHORITY INFORMATION. At the meeting at which a

child's initial individualized education program is developed, the

school district shall provide to the child's parent the contact

information for the local intellectual and developmental

disability authority for the region in which the district is

located for use in discussing services or public benefits that may

provide additional support to the child.

SECTION 6. Section 29.008, Education Code, is amended by

amending Subsections (a) and (b) and adding Subsection (a-1) to

read as follows:

(a) The commissioner shall establish a list of approved

public or private facilities, institutions, or agencies inside or

outside of this state that a [ A ] school district, shared services

arrangement unit, or regional education service center may contract

with [ a public or private facility, institution, or agency inside

or outside of this state ] for the provision of services to students

with disabilities in a residential placement. The commissioner may

approve either the whole or a part of a facility or program .

(a-1) Each contract described by this section [ for

residential placement ] must be approved by the commissioner. The

commissioner may approve a [ residential placement ] contract under

this section only after at least a programmatic evaluation of

personnel qualifications, costs, adequacy of physical plant and

equipment, and curriculum content. [ The commissioner may approve

either the whole or a part of a facility or program. ]

(b) Except as provided by Subsection (c), costs of an

approved contract for residential placement may be paid from a

combination of federal, state, and local funds. The local share of

the total contract cost for each student is that portion of the

local tax effort that exceeds the district's local fund assignment

under Section 48.256, divided by the average 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. This subsection

expires September 1, 2029.

SECTION 7. Section 29.014(d), Education Code, is amended to

read as follows:

(d) The basic allotment for a student enrolled in a district

to which this section applies is adjusted by the tier of intensity

of service defined in accordance with [ weight for a homebound

student under ] Section 48.102 and designated by commissioner rule

for use under this section [ 48.102(a) ].

SECTION 8. Section 29.022(u)(3), Education Code, is amended

to read as follows:

(3) "Self-contained classroom" does not include a

classroom that is a resource room as defined by commissioner rule

[ instructional arrangement under Section 48.102 ].

SECTION 9. Subchapter A, Chapter 29, Education Code, is

amended by adding Section 29.028 to read as follows:

Sec. 29.028. SUPPORTS FOR RECRUITING SPECIAL EDUCATION

STAFF. (a) From money appropriated or otherwise available for the

purpose, the agency shall provide grants to school districts and

open-enrollment charter schools to increase the number of qualified

and appropriately credentialed special education staff, including

special education teachers, special education paraprofessionals,

evaluation personnel, educational interpreters, ancillary

instruction personnel, and related service personnel.

(b) A school district or open-enrollment charter school

that receives a grant under this section shall require each person

the district or school uses the grant money to assist in becoming

licensed, certified, or otherwise credentialed as described by

Subsection (a) to work at the district or school for a period

established by commissioner rule.

(c) The commissioner shall adopt rules establishing the

period of required employment described by Subsection (b) and any

other rules necessary to implement this section.

SECTION 10. Section 29.316(c), Education Code, is amended

to read as follows:

(c) Not later than August 31 of each year, the agency, the

division, and the center jointly shall prepare and post on the

agency's, the division's, and the center's respective Internet

websites a report on the language acquisition of children eight

years of age or younger who are deaf or hard of hearing. The report

must:

(1) include:

(A) existing data reported in compliance with

federal law regarding children with disabilities; and

(B) information relating to the language

acquisition of children who are deaf or hard of hearing and also

have other disabilities;

(2) state for each child:

(A) the educational setting [ instructional

arrangement ] used with the child, as defined by commissioner rule

[ described by Section 48.102 ], including the time the child spends

on average in a general education setting [ mainstream instructional

arrangement ];

(B) the specific language acquisition services

provided to the child, including:

(i) the time spent providing those

services; and

(ii) a description of any hearing

amplification used in the delivery of those services, including:

(a) the type of hearing amplification

used;

(b) the period of time in which the

child has had access to the hearing amplification; and

(c) the average amount of time the

child uses the hearing amplification each day;

(C) the tools or assessments used to assess the

child's language acquisition and the results obtained;

(D) the preferred unique communication mode used

by the child at home; and

(E) the child's age, race, and gender, the age at

which the child was identified as being deaf or hard of hearing, and

any other relevant demographic information the commissioner

determines to likely be correlated with or have an impact on the

child's language acquisition;

(3) compare progress in English literacy made by

children who are deaf or hard of hearing to progress in that subject

made by children of the same age who are not deaf or hard of hearing,

by appropriate age range; and

(4) be redacted as necessary to comply with state and

federal law regarding the confidentiality of student medical or

educational information.

SECTION 11. Subchapter A, Chapter 48, Education Code, is

amended by adding Section 48.0055 to read as follows:

Sec. 48.0055. ENROLLMENT-BASED FUNDING. The commissioner

by rule shall establish the method for determining average

enrollment for purposes of funding provided based on average

enrollment under Chapter 46 and this chapter.

SECTION 12. Section 48.051(a), Education Code, is amended

to read as follows:

(a) For each student in average daily attendance, not

including the time students spend each day in career and technology

education programs or in special education programs receiving

special education services in a setting [ an instructional

arrangement ] other than a general education setting [ mainstream or

career and technology education programs ], for which an additional

allotment is made under Subchapter C, a school district is entitled

to an allotment equal to the lesser of $6,160 or the amount that

results from the following formula:

A = $6,160 X TR/MCR

where:

"A" is the allotment to which a district is entitled;

"TR" is the district's tier one maintenance and operations

tax rate, as provided by Section 45.0032; and

"MCR" is the district's maximum compressed tax rate, as

determined under Section 48.2551.

SECTION 13. Section 48.102, Education Code, is amended to

read as follows:

Sec. 48.102. SPECIAL EDUCATION. (a) For each student in

average enrollment [ 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 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 the weight

assigned under Subsection (c) to the highest tier of intensity of

service for which the student qualifies [ 1.15 ].

(a-1) Notwithstanding Subsection (a), for the 2026-2027 and

2027-2028 school years, the amount of an allotment under this

section shall be determined in accordance with Section 48.1023.

This subsection expires September 1, 2028. [ 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 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) The commissioner by rule shall define seven tiers of

intensity of service for use in determining funding under this

section. The commissioner must include one tier specifically

addressing students receiving special education services in

residential placement [ A 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. 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 with a

funding weight of 2.8 ].

(c) The weights assigned to the seven tiers of intensity of

service defined under Subsection (b) are, from least to most

intense, 0.6, 0.85, 1, 1.45, 1.75, 2, and 2, or other weights

provided by appropriation. [ For 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) [ For 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.

[ (e) The commissioner 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 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) In this section, "full-time equivalent student" means

30 hours of contact a week between a special education student and

special education program personnel.

[ (g) ] The commissioner shall adopt rules and procedures

governing contracts for residential and day program placement of

[ special education ] students receiving special education services .

(e) [ The legislature shall provide by appropriation for the

state's share of the costs of those placements.

[ (h) ] At least 55 percent of the funds allocated under this

section must be used in the special education program under

Subchapter A, Chapter 29.

(f) [ (i) ] The agency shall ensure [ encourage ] the placement

of students in special education programs, including students in

residential placement [ instructional arrangements ], in the least

restrictive environment appropriate for their educational needs.

(g) [ (j) ] A 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 basic allotment, or, if applicable, the sum of the basic

allotment and the allotment under Section 48.101 to which the

district is entitled for each [ full-time equivalent ] student in

average enrollment [ daily attendance ], multiplied by the amount

designated for the highest tier of intensity of service for which

the student qualifies [ 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 $20 [ $10 ] million per year. A school district may use funds

received under this section only in providing an extended year

program.

(h) [ (k) ] From 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.

(i) Not later than December 1 of each even-numbered year,

the commissioner shall submit to the Legislative Budget Board, for

purposes of the allotment under this section, proposed weights for

the tiers of intensity of service for the next state fiscal

biennium. The commissioner must include information regarding the

selection of the proposed weights. In developing the proposed

weights, the commissioner shall consult with school district

superintendents and chief financial officers, the continuing

advisory committee appointed under Section 29.006, and other

relevant stakeholders.

SECTION 14. Subchapter C, Chapter 48, Education Code, is

amended by adding Sections 48.1021, 48.1022, and 48.1023 to read as

follows:

Sec. 48.1021. SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.

(a) For each six-week period in which a student in a special

education program under Subchapter A, Chapter 29, receives eligible

special education services, a school district is entitled to an

allotment in the amount assigned under Subsection (c) to the

service group for which the student is eligible.

(a-1) Notwithstanding Subsection (a), for the 2026-2027 and

2027-2028 school years, the amount of an allotment under this

section shall be determined in accordance with Section 48.1023.

This subsection expires September 1, 2028.

(b) The commissioner by rule shall establish four service

groups for use in determining funding under this section. In

establishing the groups, the commissioner must consider:

(1) the level of services, equipment, and technology

required to meet the needs of students receiving special education

services; and

(2) services that meet the needs of students receiving

special education services and were previously eligible for

reimbursement through the school health and related services

program.

(c) The amounts assigned to the four service groups

established under Subsection (b) are, from lowest to highest level

of service, $100, $350, $650, and $1,000, or other amounts provided

by appropriation.

(d) A school district is entitled to receive an allotment

under this section for each service group for which a student is

eligible.

(e) A school district is entitled to the full amount of an

allotment under this section for a student receiving eligible

special education services during any part of a six-week period.

(f) At least 55 percent of the funds allocated under this

section must be used for a special education program under

Subchapter A, Chapter 29.

(g) Not later than December 1 of each even-numbered year,

the commissioner shall submit to the Legislative Budget Board, for

purposes of the allotment under this section, proposed amounts of

funding for the service groups for the next state fiscal biennium.

The commissioner must include information regarding the selection

of the proposed amounts. In developing the proposed amounts, the

commissioner shall consult with school district superintendents

and chief financial officers, the continuing advisory committee

appointed under Section 29.006, and other relevant stakeholders.

Sec. 48.1022. SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL

EVALUATION. For each student for whom a school district conducts a

full individual and initial evaluation under Section 29.004 or 20

U.S.C. Section 1414(a)(1), the district is entitled to an allotment

of $500 or a greater amount provided by appropriation.

Sec. 48.1023. SPECIAL EDUCATION TRANSITION FUNDING. (a)

For the 2026-2027 and 2027-2028 school years, the commissioner may

adjust weights or amounts provided under Section 48.102 or 48.1021

as necessary to ensure compliance with requirements regarding

maintenance of state financial support under 20 U.S.C. Section

1412(a)(18) and maintenance of local financial support under

applicable federal law.

(b) For the 2026-2027 and 2027-2028 school years, the

commissioner shall determine the formulas through which school

districts receive funding under Sections 48.102 and 48.1021. In

determining the formulas, the commissioner may combine the methods

of funding under those sections with the method of funding provided

by Section 48.102, as it existed on January 1, 2025.

(c) For the 2028-2029 school year, the commissioner may

adjust the weights or amounts set for purposes of Section 48.102 or

48.1021. Before making an adjustment under this subsection, the

commissioner shall:

(1) submit the proposed adjustment to the secretary of

state for publication in the Texas Register and must receive notice

of publication; and

(2) notify in writing and must receive approval from

the Legislative Budget Board.

(d) Notwithstanding any other provision of this section,

the sum of funding provided under Sections 48.102 and 48.1021 for

the 2026-2027 or for the 2027-2028 school year as adjusted under

this section may not exceed the sum of:

(1) funding that would have been provided under

Section 48.102, as it existed on January 1, 2025; and

(2) the amount set by the legislature in the General

Appropriations Act.

(e) Each school district and open-enrollment charter school

shall report to the agency information necessary to implement this

section.

(f) The agency shall provide technical assistance to school

districts and open-enrollment charter schools to ensure a

successful transition in funding formulas for special education.

(g) This section expires September 1, 2030.

SECTION 15. Sections 48.103(a) and (c), Education Code, are

amended to read as follows:

(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 0.5 [ 0.1 ] or a

greater amount provided by appropriation.

(c) A school district may receive funding for a student

under each provision of this section , [ and ] Section 48.102 , and

Section 48.1021 for which [ if ] the student qualifies [ satisfies the

requirements of both sections ].

SECTION 16. Section 48.110(d), Education Code, is amended

to read as follows:

(d) For 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) if the annual graduate is educationally

disadvantaged, $5,000;

(2) if the annual graduate is not educationally

disadvantaged, $3,000; and

(3) if the annual graduate is enrolled in a special

education program under Subchapter A, Chapter 29, $5,000 [ $2,000 ],

regardless of whether the annual graduate is educationally

disadvantaged.

SECTION 17. Section 48.151(g), Education Code, is amended

to read as follows:

(g) A school district or county that provides special

transportation services for eligible [ special education ] students

receiving special education services is entitled to a state

allocation at a [ paid on a previous year's cost-per-mile basis.

The ] rate of $2 per mile or a greater amount provided [ allowable

shall be set ] by appropriation [ based on data gathered from the

first year of each preceding biennium ]. Districts may use a portion

of their support allocation to pay transportation costs, if

necessary. The commissioner may grant an amount set by

appropriation for private transportation to reimburse parents or

their agents for transporting eligible special education students.

The mileage allowed shall be computed along the shortest public

road from the student's home to school and back, morning and

afternoon. The need for this type of transportation shall be

determined on an individual basis and shall be approved only in

extreme hardship cases.

SECTION 18. Subchapter D, Chapter 48, Education Code, is

amended by adding Section 48.157 to read as follows:

Sec. 48.157. SPECIAL EDUCATION CERTIFICATION ALLOTMENT.

(a) For each classroom teacher, educational diagnostician,

licensed specialist in school psychology, speech pathologist,

physical therapist, occupational therapist, behavior analyst,

dyslexia therapist, or other special education professional

employed by a school district who, during the preceding year,

became certified under Subchapter B, Chapter 21, to teach special

education or as an educational diagnostician or under the

applicable provision of the Occupations Code, as applicable, the

district is entitled to an allotment in the amount of the employee's

certification fee.

(b) A school district shall use an allotment received under

this section to provide a stipend in the amount of the allotment to

the employee for whom the district received the allotment. A

stipend received under this subsection by an employee subject to

the minimum salary schedule under Section 21.402 is not considered

in determining whether the district is paying the employee the

minimum monthly salary under that section.

SECTION 19. Subchapter F, Chapter 48, Education Code, is

amended by adding Section 48.2522 to read as follows:

Sec. 48.2522. ADDITIONAL STATE AID FOR SALARY STIPENDS FOR

CERTAIN SPECIAL EDUCATION EMPLOYEES. 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

total amount of salary stipends to which classroom teachers and

paraprofessionals employed by the district are entitled to receive

under Section 21.4024.

SECTION 20. Section 48.265(a), Education Code, is amended

to read as follows:

(a) If [ 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 may provide [ by rule shall establish a grant program

through which excess funds are awarded as ] grants using the excess

money for 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.

SECTION 21. Section 48.279(e), Education Code, is amended

to read as follows:

(e) After 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 and the special education

service group allotment under Section 48.1021 .

SECTION 22. Section 825.4092(f), Government Code, is

amended to read as follows:

(f) A reporting employer is ultimately responsible for

payment of the amounts required to be contributed under Subsections

(b) and (c). The employer may not directly or indirectly pass that

cost on to the retiree through payroll deduction, by imposition of a

fee, or by any other means designed to recover the cost. This

subsection does not apply to contributions required for a retiree

employed by a school district or open-enrollment charter school to

teach special education.

SECTION 23. Section 21.4024, Education Code, as added by

this Act, Subchapter E, Chapter 22, Education Code, as added by this

Act, Chapter 29, Education Code, as amended by this Act, and Section

825.4092(f), Government Code, as amended by this Act, apply

beginning with the 2025-2026 school year.

SECTION 24. (a) Except as provided by Subsection (b) of

this section, this 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, 2025.

(b) The amendments by this Act to Chapter 48, Education

Code, take effect September 1, 2025.