1. (a) Application process. In order to participate in the classroom supply reimbursement program authorized by Texas Education Code (TEC), §21.413, a school district must apply to the Texas Education Agency (TEA) for these funds by a date set by the commissioner of education. The application must include the following:

   1. (1) a standard Teacher Supply Reimbursement Grant Program district application;
   2. (2) actual total local fund expenditures on teacher supply reimbursements for school year 2003 if applying during school year 2004, for school years 2003 and 2004 if applying during school year 2005, and for the most recent three school years if applying after school year 2005 (to aid in determining if local expenditures are being reduced). Local funds are all funds over which the district exercises control or approval authority used to reimburse teachers for tangible items of direct benefit to students;
   3. (3) the number of teachers who have received reimbursement for supply purchases in the last five years;
   4. (4) the number of teachers anticipated to receive reimbursement under this program and the amount each teacher will be eligible to receive; and
   5. (5) a district policy that would ensure each teacher meets the requirement that an expenditure will benefit students.

2. (b) Eligibility requirements. To be eligible to participate in the classroom supply reimbursement program, a district will be required to:

   1. (1) re-apply to participate each year;
   2. (2) create a Teacher Supply Reimbursement Grant account separate from other accounts to which the grant shall be deposited and account for funds in accordance with applicable state and federal requirements;
   3. (3) deposit in the designated account an amount of local funds defined in subsection (a)(2) of this section at least equal to the greater of the amount of the grant or the previous year's expenditure on teacher supply reimbursements. Individual reimbursements from the Teacher Supply Reimbursement Grant must be matched with an equal amount of local funds;
   4. (4) ensure that items purchased with funds in the designated account are tangible items, of direct benefit to students;
   5. (5) retain ownership of all durable goods purchased under this program. A district may develop a policy allowing each teacher to retain ownership of goods of nominal value purchased with grant money;
   6. (6) retain receipts obtained from teachers for reimbursement and make these records available for audit purposes; and
   7. (7) return unexpended Teacher Supply Reimbursement Grant balances at the end of the state fiscal year for which they were awarded.

3. (c) Evaluation criteria. Applications to the TEA will be evaluated on the following criteria:

   1. (1) information about a district's existing supply reimbursement program, if applicable;
   2. (2) the balance between the number of teachers receiving reimbursements and the size of the reimbursements;
   3. (3) the process by which a district would determine whether an expenditure meets the student benefit criteria as required in subsection (a)(5) of this section; and
   4. (4) the district's size relative to other applicants.

4. (d) Other provisions.

   1. (1) A district found in noncompliance with the provisions specified in this section must reimburse the state for funds unaccounted for or used for purposes not meeting the requirements in TEC, §21.413.
   2. (2) A district found to have reduced its local expenditures may be required to refund the entire grant to the state.
   3. (3) A district may allow, but not require, teachers to pool their respective supply monies for the purchase of an item, as long as the item meets the student benefit criteria established by the district.
   4. (4) Funds for each school year must be expended by July 31 of that school year.
   5. (5) Total reimbursement to an individual teacher in a single year from the Teacher Supply Reimbursement Grant may not exceed $200. Reimbursements from local funds may exceed the matching requirement in subsection (b)(3) of this section.
   6. (6) The reimbursement program may be implemented only if funds are specifically appropriated by the legislature for the program or if the commissioner identifies available funds, other than general revenue funds, that may be used for the program.

5. (e) Dispute resolution.

   1. (1) A determination by the local school district board of trustees of any dispute involving teacher reimbursement is final and may not be appealed to the TEA, except as provided by TEC, §7.057. Nothing in this provision precludes the TEA from recovering funds from a district pursuant to an audit.
   2. (2) A determination by the TEA in the administration of this program is final and may not be appealed.
6. (f) Expiration date. This section, issued under TEC, §21.413, expires September 1, 2007.

Source Note:The provisions of this §61.1081 adopted to be effective January 4, 2004, 28 TexReg 11585.