By:  Ogden                                             H.B. No. 669
       73R3499 ESH-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to public school education.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  (a)  Chapter 18, Education Code, is amended by
    1-5  designating Sections 18.01-18.15 as Subchapter A of that chapter as
    1-6  follows:
    1-7            SUBCHAPTER A.  CREATION OF COUNTY-UNIT SYSTEMS
    1-8        (b)  Chapter 18, Education Code, is amended by designating
    1-9  Sections 18.21-18.31 as Subchapter B of that chapter as follows:
   1-10               SUBCHAPTER B.  COUNTY EQUALIZATION FUNDS
   1-11        SECTION 2.  Chapter 18, Education Code, is amended by adding
   1-12  Subchapters C and D to read as follows:
   1-13    SUBCHAPTER C.  COUNTY-UNIT SYSTEMS COMPOSED OF SCHOOL DISTRICTS
   1-14        Sec. 18.41.  CREATION; COMPOSITION.  (a)  Except as provided
   1-15  by Subsections (b) and (c) of this section, each school district in
   1-16  this state is included in a county-unit system composed of all
   1-17  school districts that are assigned to a single county.  Each school
   1-18  district is assigned to the county in which a majority of its
   1-19  students resides.
   1-20        (b)  This section does not apply to a school district that is
   1-21  the single district assigned to a county.
   1-22        (c)  This subchapter does not apply to a county that is
   1-23  included in a county-unit system established under Subchapter A of
   1-24  this chapter if that system contains all of the territory of its
    2-1  component school districts and has the authority to levy a tax at a
    2-2  rate not exceeding $1 per $100 of property valuation.
    2-3        Sec. 18.42.  AUTHORIZATION.  (a)  Each county-unit system is
    2-4  a school district established for the limited purpose of exercising
    2-5  the taxing power authorized by Article VII, Section 3, of the Texas
    2-6  Constitution and of distributing revenue of the system to its
    2-7  component school districts.
    2-8        (b)  The boards of trustees of the component school districts
    2-9  in a county-unit system retain the authority granted them elsewhere
   2-10  in this code.
   2-11        Sec. 18.43.  GOVERNANCE.  A county-unit system established
   2-12  under this subchapter is governed by a county governing board as
   2-13  specified by Section 17.01 of this code.
   2-14        Sec. 18.44.  TAX AUTHORIZATION ELECTION.  (a)  The county
   2-15  governing board of each county-unit system shall order an election
   2-16  to be held on May 1, 1993, to determine whether or not the
   2-17  county-unit system shall be authorized to levy a tax at a rate not
   2-18  exceeding $1 per $100 valuation of property in the county.
   2-19        (b)  At the tax authorization election the ballot shall be
   2-20  prepared to permit voting for or against the proposition:  "The
   2-21  county-unit system tax not exceeding $1 on the $100 valuation of
   2-22  property."
   2-23        (c)  Each component school district shall conduct the
   2-24  election and deliver the canvass of the vote to the county
   2-25  governing board.  The county governing board shall conduct a final
   2-26  canvass not later than the second day after the receipt of all
   2-27  school district election returns and prepare a tabulation of the
    3-1  total number of votes received in each school district and the sum
    3-2  of the school district totals.  The proposition is approved only if
    3-3  the majority of the votes reflected in the sum of school district
    3-4  totals favors the proposition.  The county governing board shall
    3-5  declare the results and retain the election returns and tabulations
    3-6  for the period for preserving precinct election records.
    3-7        (d)  If the majority of the votes cast at the election
    3-8  opposes the authorization of a tax not to exceed $1 per $100
    3-9  valuation, the county governing board  shall hold a public hearing
   3-10  to consider the submission of a lower tax rate authorization to the
   3-11  voters.  The tax rate proposed must be approved by a majority of
   3-12  the presiding officers of the component school districts.
   3-13        (e)  The county governing board shall order an election to be
   3-14  held to determine whether or not the county-unit system shall be
   3-15  authorized to levy a tax not exceeding the rate approved under
   3-16  Subsection (d) of this section.  The ballot shall provide for
   3-17  voting for or against a county-unit system tax not to exceed the
   3-18  proposed rate.  The election may be held on an authorized election
   3-19  date, as prescribed by Section 41.001, Election Code, occurring
   3-20  after the expiration of 50 days after the date of the prior
   3-21  election.
   3-22        (f)  After a tax authorization has been approved by the
   3-23  voters, the county governing board may not call another election to
   3-24  raise or lower the maximum tax rate authorized before the second
   3-25  anniversary of the date of the prior election.
   3-26        Sec. 18.45.  LEVY OF TAX; ASSESSMENT, COLLECTION, AND
   3-27  DISTRIBUTION OF TAXES.  (a)  The county governing board of a
    4-1  county-unit system shall levy a tax for the benefit of its
    4-2  component school districts not later than September 1 of each year
    4-3  or as soon thereafter as practicable.
    4-4        (b)  The county governing board shall provide for the
    4-5  assessment and collection of taxes levied by the system through a
    4-6  contract with an appraisal district or taxing unit.  Each component
    4-7  school district shall bear the cost of assessing and collecting
    4-8  taxes levied by the system and that cost shall be deducted from the
    4-9  revenue collected before distribution of the revenue to the
   4-10  component districts.
   4-11        (c)  The county governing board shall distribute tax revenue
   4-12  to the component districts on the basis of the number of weighted
   4-13  students in average daily attendance in each district.  The number
   4-14  of students in weighted average daily attendance is determined in
   4-15  the manner prescribed by Section 18.62 of this code.
   4-16        (d)  Beginning with the 1995-1996 school year, a county
   4-17  governing board shall distribute tax revenue to the component
   4-18  districts on the basis of the number of students in average daily
   4-19  attendance in each district.
   4-20        Sec. 18.46.  MULTICOUNTY-UNIT SYSTEMS.  (a)  Two or more
   4-21  adjacent county-unit systems may jointly establish a
   4-22  multicounty-unit system.
   4-23        (b)  If a petition praying for the formation of a
   4-24  multicounty-unit system or for the authority to levy and collect an
   4-25  equalization tax is presented to the county governing board of one
   4-26  of the county-unit systems, the county governing boards of all of
   4-27  the county-unit systems shall order an election to be held jointly
    5-1  in the designated county-unit systems.  The petition must be signed
    5-2  by not less than one percent of the total number of registered
    5-3  voters in the designated county-unit systems.  If a majority of the
    5-4  votes cast in each county-unit system favors the formation of the
    5-5  multicounty-unit system or approves the authority to levy and
    5-6  collect an equalization tax, the county governing boards of the
    5-7  county-unit systems jointly shall issue an order to that effect.
    5-8        (c)  The provisions of this subchapter govern the affairs of
    5-9  a multicounty-unit system.
   5-10        Sec. 18.47.  CREATION OF COUNTYWIDE SCHOOL DISTRICTS.   (a)
   5-11  If the voters in a county-unit system fail to authorize on or
   5-12  before August 15, 1993, a county-unit tax that will provide state
   5-13  and county funds under Section 18.63 of this code of not less than
   5-14  $1,750 per student in weighted average daily attendance, the
   5-15  commissioner of education shall, as soon as practicable after that
   5-16  date, annex each school district assigned to that county-unit
   5-17  system to the district in that system with the most students in
   5-18  average daily attendance.
   5-19        (b)  Under this section school districts shall be annexed in
   5-20  the same manner that academically unaccredited school districts are
   5-21  annexed under Section 19.027 of this code and are subject to the
   5-22  same provisions.
   5-23        (c)  The commissioner's annexation order must include
   5-24  provisions ensuring that for the first school year following the
   5-25  annexation of a district:
   5-26              (1)  the board of trustees of the district to be
   5-27  annexed shall continue to govern the district with respect to all
    6-1  matters other than taxation unless that board relinquishes its
    6-2  authority by majority vote;
    6-3              (2)  no school campus is closed without the consent of
    6-4  the board of trustees of the district to be annexed or of the
    6-5  commissioner of education if the board has relinquished its
    6-6  authority;
    6-7              (3)  all teacher evaluations are considered binding on
    6-8  the governing board of the enlarged district resulting from the
    6-9  annexation; and
   6-10              (4)  funds for the instructional programs and services
   6-11  at each campus of the district subject to annexation are not less
   6-12  per student in weighted average daily attendance than the funds
   6-13  spent for those purposes during the preceding school year.
   6-14             (Sections 18.48-18.60 reserved for expansion
   6-15        SUBCHAPTER D.  DISTRIBUTION OF FOUNDATION SCHOOL FUNDS
   6-16        Sec. 18.61.  AVERAGE DAILY ATTENDANCE.  In this subchapter,
   6-17  average daily attendance is determined in the manner provided by
   6-18  Section 16.006 of this code.
   6-19        Sec. 18.62.  WEIGHTED STUDENTS IN AVERAGE DAILY ATTENDANCE.
   6-20  (a)  In this subchapter:
   6-21              (1)  weighted students in average daily attendance for
   6-22  a school district is computed by dividing the sum of the district's
   6-23  allotments under Subchapters C and D of Chapter 16 of this code,
   6-24  less any allotments to the district for transportation, career
   6-25  ladder supplements, or technology, by the basic allotment under
   6-26  Section 16.101 of this code; and
   6-27              (2)  weighted students in average daily attendance for
    7-1  a county-unit is the sum of the weighted students in average daily
    7-2  attendance of each component school district in the county-unit
    7-3  system.
    7-4        (b)  Beginning with the 1995-1996 school year, students in
    7-5  average daily attendance shall be substituted for weighted students
    7-6  in average daily attendance in any formula under this subchapter
    7-7  that uses weighted students in average daily attendance.
    7-8        Sec. 18.63.  MATCHING FUNDS FOR COUNTY-UNIT SYSTEMS.  (a)
    7-9  Each county-unit system established under Subchapter C of this
   7-10  chapter is entitled to state matching funds in an amount determined
   7-11  by the following formula:
   7-12  where:
   7-13        "SF" is the amount of state funds due the county-unit system;
   7-14        "CTR" is the county-unit system's effective tax rate,
   7-15  expressed as dollars, which is determined by dividing the tax funds
   7-16  collected by the system by the quotient of the system's taxable
   7-17  value of property for the prior school year determined under
   7-18  Section 11.86 of this code divided by 100;
   7-19        "CPV" is the taxable value of property in the county-unit
   7-20  system for the prior school year determined under Section 11.86 of
   7-21  this code divided by "WADA";
   7-22        "SPV" is the taxable value of property in the state for the
   7-23  prior school year determined under Section 11.86 of this code
   7-24  divided by the number of weighted students in average daily
   7-25  attendance in the public schools in the state; and
   7-26        "WADA" is the number of students in weighted average daily
   7-27  attendance in the county-unit system.
    8-1        (b)  The commissioner of education shall determine annually:
    8-2              (1)  the amount of state funds due each county-unit
    8-3  system  under Subsection (a) of this section; and
    8-4              (2)  the amount of state available school funds
    8-5  distributed to the component school districts of each county-unit
    8-6  system, if any.
    8-7        (c)  The commissioner shall determine for each county-unit
    8-8  system  the amount necessary to provide the difference between
    8-9  Subdivisions (1) and (2) of Subsection (b) of this section, which
   8-10  shall be appropriated and distributed as provided by Section 18.67
   8-11  of this code.
   8-12        (d)  The commissioner may transmit payments under this
   8-13  section in installments according to a schedule adopted by the
   8-14  commissioner.
   8-15        (e)  A county-unit system established under Subchapter A of
   8-16  this chapter is entitled to funding under this section if the
   8-17  system contains all of the territory of its component districts.
   8-18        Sec. 18.64.  DISTRIBUTION OF FUNDS TO SCHOOL DISTRICTS.  The
   8-19  county governing board of each county-unit system shall apportion
   8-20  state funds received under Section 18.63 of this code to the
   8-21  component school districts of the system on the basis of the number
   8-22  of students in weighted average daily attendance in each district.
   8-23        Sec. 18.65.  STATE MATCHING FUNDS FOR CERTAIN COMPONENT
   8-24  DISTRICTS.  (a)  An accredited school district within a county-unit
   8-25  system is entitled to state equalization funds under this section
   8-26  if the school district's taxable value of property per student in
   8-27  average daily attendance is less than $150,000 per student in
    9-1  weighted average daily attendance.  An eligible district's state
    9-2  matching aid is determined by the following formula:
    9-3  where:
    9-4        "SF" is the amount of state funds due the school district;
    9-5        "DTR" is the number of cents in the district's effective tax
    9-6  rate, which is determined by dividing the tax funds collected by
    9-7  the district by the quotient of the district's taxable value of
    9-8  property under Section 11.86 of this code divided by 100;
    9-9        "DPV" is the taxable value of property in the district under
   9-10  Section 11.86 of this code divided by the number of students in
   9-11  weighted average daily attendance in the district; and
   9-12        "WADA" is the number of students in weighted average daily
   9-13  attendance in the district.
   9-14        (b)  The commissioner of education shall determine the amount
   9-15  of state funds due each district under this section.
   9-16        (c)  If for any year the amount placed in the foundation
   9-17  school fund is insufficient to cover the total cost of allocations
   9-18  under Subsection (a) of this section, the commissioner shall reduce
   9-19  the amount of state funds allocated to each eligible district in a
   9-20  manner that would require each district to exert the same tax
   9-21  effort to replace the state funding shortfall.
   9-22        (d)  The tax effort required of a district under Subsection
   9-23  (c) of this section is determined using the district's taxable
   9-24  value of property as determined under Section 11.86 of this code.
   9-25        Sec. 18.66.  STATE FUNDS FOR CERTAIN COUNTYWIDE SCHOOL
   9-26  DISTRICTS.  If a school district is the only district assigned to a
   9-27  county under Section 18.41 of this code, the district is entitled
   10-1  to:
   10-2              (1)  the same matching funds that a county-unit system
   10-3  is entitled to under Section 18.63 of this code except that for
   10-4  fund allocation purposes DTR, the district's tax rate, as defined
   10-5  in Section 18.65 of this code, is substituted for CTR but may not
   10-6  exceed $1; and
   10-7              (2)  state matching funds under Section 18.65 of this
   10-8  code except that DTR is the number of cents in the district's tax
   10-9  rate exceeding $1 but not exceeding 50 cents.
  10-10        Sec. 18.67.  APPROPRIATION OF MATCHING FUNDS.  (a)  The
  10-11  commissioner shall base the determinations under Sections 18.63(c),
  10-12  18.65(b), and 18.66 of this code on the estimates provided to the
  10-13  legislature under Section 18.68 of this code for each school
  10-14  district for each school year.  The legislature shall appropriate
  10-15  from the available school fund and the foundation school program
  10-16  fund a total amount equal to the total of  allotments and
  10-17  allocations determined under those sections and Sections 16.156,
  10-18  16.158, and 16.160 of this code.
  10-19        (b)  The commissioner shall distribute to each county-unit
  10-20  system or countywide district from the available school fund an
  10-21  equal amount per student in adjusted weighted average daily
  10-22  attendance except that the total amount distributed to a system or
  10-23  district from that fund may not exceed the total amount to which
  10-24  the system or district is entitled under this subchapter.  The
  10-25  commissioner shall distribute the remainder of the amount to which
  10-26  a system or district is entitled, if any, from the foundation
  10-27  school fund.  The commissioner shall distribute to each component
   11-1  school district the amount due the district under Section 18.65(b)
   11-2  of this code from the foundation school fund.
   11-3        (c)  The commissioner shall approve warrants to each
   11-4  county-unit system, countywide district, or other school district
   11-5  equaling the amount of its entitlement except as provided by this
   11-6  section.  Warrants for all money expended according to the
   11-7  provisions of this chapter shall be approved and transmitted to the
   11-8  treasurer or depository of each system or district in the same
   11-9  manner that warrants for state payments are transmitted.
  11-10        Sec. 18.68.  FUNDING ESTIMATES.  (a)  Not later than November
  11-11  1 of each even-numbered year:
  11-12              (1)  the Central Education Agency shall submit to the
  11-13  foundation school fund budget committee and the legislature an
  11-14  estimate of student enrollment by school district for the following
  11-15  biennium; and
  11-16              (2)  the comptroller shall submit to the foundation
  11-17  school fund budget committee and the legislature an estimate of the
  11-18  total value of all taxable property in the state as determined
  11-19  under Section 11.86 of this code for the following biennium.
  11-20        (b)  The Central Education Agency and the comptroller shall
  11-21  update the information provided to the legislature under Subsection
  11-22  (a) of this section not later than March 1 of each odd-numbered
  11-23  year.
  11-24        Sec. 18.69.  FOUNDATION SCHOOL FUND BUDGET COMMITTEE.  (a)
  11-25  The foundation school fund budget committee is composed of the
  11-26  governor, the lieutenant governor, and the comptroller.
  11-27        (b)  On or before November 1 before each regular session of
   12-1  the legislature, the budget committee shall:
   12-2              (1)  adopt the basic allotment to which each school
   12-3  district is entitled; and
   12-4              (2)  determine and certify to the comptroller the
   12-5  amount of money to be placed in the foundation school fund for the
   12-6  succeeding biennium to fully fund the allotments and allocations
   12-7  authorized in Sections 16.156, 16.158, 16.160, 18.63, 18.65, and
   12-8  18.66 of this code, assuming that each system and countywide school
   12-9  district sets its tax at a rate of $1 per $100 valuation of
  12-10  property.
  12-11        (c)  The basic allotment adopted under this section is used
  12-12  only to determine weighted students in average daily attendance as
  12-13  provided by Section 18.62 of this code.
  12-14        Sec. 18.70.  FALSIFICATION OF RECORDS; REPORT.  (a)  If the
  12-15  director of school audits of the Central Education Agency
  12-16  determines that accounting, enrollment, or other records of a
  12-17  county-unit system, countywide school district, or other school
  12-18  district reveal deliberate falsification of the records whereby the
  12-19  system's or district's share of state funds allocated under this
  12-20  subchapter would be, or has been, illegally increased, the director
  12-21  shall promptly and fully report the fact to the commissioner of
  12-22  education and the state auditor.
  12-23        (b)  If the commissioner determines that state funds have
  12-24  been overallocated to a system or district, the commissioner shall
  12-25  recover two times the overallocated amount by withholding that
  12-26  amount from subsequent allocations.
  12-27        Sec. 18.71.  EFFECT OF APPRAISAL APPEAL.  (a)  If the final
   13-1  determination of an appeal under Chapter 42, Tax Code, results in a
   13-2  reduction in the taxable value of property that exceeds five
   13-3  percent of the total taxable value of property under Section 11.86
   13-4  of this code, the commissioner of education shall request the
   13-5  comptroller to adjust the comptroller's taxable property value
   13-6  findings for that year consistent with the final determination of
   13-7  the appraisal appeal.
   13-8        (b)  If a county-unit system, countywide school district, or
   13-9  other school district would have received a greater amount from the
  13-10  foundation school fund for the applicable school year using the
  13-11  adjusted value, the commissioner shall add the difference to
  13-12  subsequent distributions to the system or district from the
  13-13  foundation school fund.  An adjustment does not affect
  13-14  distributions to any other system or district.
  13-15        Sec. 18.72.  CERTIFICATION OF REDUCTION IN SCHOOL DISTRICT'S
  13-16  REVENUE.  The commissioner of education shall compute for each
  13-17  school district the total amount, if any, by which the district's
  13-18  total revenue is reduced from one school year to the next because
  13-19  of a change in the method of finance under this code.  The
  13-20  commissioner shall certify the amount of the reduction to the
  13-21  school district for use in determining the school district's
  13-22  rollback rate under Section 26.08, Tax Code.
  13-23        SECTION 3.  (a)  Subchapter D, Chapter 18, Education Code, as
  13-24  added by this Act, is amended by adding Section 18.73 to read as
  13-25  follows:
  13-26        Sec. 18.73.  ASSIGNMENT OF FUNDS IN EXCESS OF AMOUNTS
  13-27  GUARANTEED.  (a)  If a county-unit system or countywide district
   14-1  has a property wealth per weighted student greater than two times
   14-2  the statewide average property wealth per weighted student, the
   14-3  system or district shall forward to the comptroller an amount equal
   14-4  to the difference between the amount generated by the tax levied by
   14-5  the system or district and the system's or district's maximum basic
   14-6  entitlement.
   14-7        (b)  A county-unit system or countywide district is not
   14-8  required to remit under this section that portion of the taxes
   14-9  collected by the system or district that results from a tax rate
  14-10  that exceeds the lesser of:
  14-11              (1)  $0.92 per $100 valuation of property; or
  14-12              (2)  the statewide average of the rate of countywide ad
  14-13  valorem taxes imposed for school operation and maintenance.
  14-14        (c)  The comptroller shall develop a schedule according to
  14-15  which a county-unit system or countywide district must remit to the
  14-16  comptroller a portion of the taxes collected by the system or
  14-17  district until the total amount due under this section is
  14-18  submitted.
  14-19        (d)  The comptroller shall credit all funds received under
  14-20  this section to the foundation school fund.
  14-21        (e)  If the total of funds to be received under this section
  14-22  would exceed the limit imposed by Article VII, Section 3-c(d), of
  14-23  the Texas Constitution, the comptroller shall prorate the amount of
  14-24  funds to be received under this section to comply with that limit.
  14-25        (f)  For purposes of this section:
  14-26              (1)  a county-unit system's or countywide district's
  14-27  "maximum basic entitlement" is the amount generated by a tax at a
   15-1  rate equal to the rate levied by the system or district multiplied
   15-2  by a wealth per weighted student equal to two times the average of
   15-3  each county in the state's wealth per weighted student; and
   15-4              (2)  "wealth per weighted student" means the taxable
   15-5  property values reported by the comptroller to the commissioner of
   15-6  education under Section 11.86 of this code divided by the number of
   15-7  weighted students in average daily attendance as determined under
   15-8  Section 18.62 of this code.
   15-9        (b)  This section takes effect only if the constitutional
  15-10  amendment proposed by __J.R. No.___, 73rd Legislature, Regular
  15-11  Session, 1993, relating to the support and maintenance of schools,
  15-12  is approved by the voters.  If the proposed constitutional
  15-13  amendment is not approved by the voters, this section has no
  15-14  effect.
  15-15        SECTION 4.  Sections 16.001-16.007, Education Code, are
  15-16  reenacted and amended to read as follows:
  15-17                   SUBCHAPTER A.  GENERAL PROVISIONS
  15-18        Sec. 16.001.  State Policy.  (a)  It is the policy of the
  15-19  State of Texas that the provision of public education is a state
  15-20  responsibility and that a thorough and efficient system be provided
  15-21  and substantially financed through state revenue sources so that
  15-22  each student enrolled in the public school system shall have access
  15-23  to programs and services that are appropriate to his or her
  15-24  educational needs and that are substantially equal to those
  15-25  available to any similar student, notwithstanding varying local
  15-26  economic factors.
  15-27        (b)  The public school finance system of the State of Texas
   16-1  shall adhere to a standard of neutrality which provides for
   16-2  substantially equal access to similar revenue per student at
   16-3  similar tax effort, considering all state and local tax revenues of
   16-4  districts after acknowledging all legitimate student and district
   16-5  cost differences.
   16-6        Sec. 16.002.  Purpose of Foundation School Program.  (a)  The
   16-7  purposes of the Foundation School Program <set forth in this
   16-8  chapter> are to guarantee that each school district in the state
   16-9  has:
  16-10              (1)  adequate resources to provide each eligible
  16-11  student a basic instructional program and facilities suitable to
  16-12  the student's educational needs; and
  16-13              (2)  access to a substantially equalized program of
  16-14  financing in excess of basic costs for certain services<, as
  16-15  provided by this chapter>.
  16-16        (b)  The Foundation School Program consists of two tiers to
  16-17  provide for the purposes specified by Subsection (a) of this
  16-18  section.  The first tier guarantees sufficient financing for all
  16-19  school districts to provide a basic program of education that meets
  16-20  accreditation and other legal standards.  The second tier provides
  16-21  a guaranteed yield system of financing to provide <all> school
  16-22  districts that have low value of taxable property per student with
  16-23  substantially equal access to additional funds <to provide an
  16-24  enriched program and additional funds for facilities>.
  16-25        Sec. 16.003.  Student Eligibility.  (a)  A student is
  16-26  entitled to the benefits of the Foundation School Program if he is
  16-27  5 years of age or older and under 21 years of age at the beginning
   17-1  of the scholastic year and has not graduated from high school.
   17-2        (b)  A student to whom Subsection (a) of this section does
   17-3  not apply is entitled to the benefits of the Foundation School
   17-4  Program if the student is enrolled in a prekindergarten class under
   17-5  Section 21.136 of this code.
   17-6        (c)  The commissioner of education, in consultation with the
   17-7  Commissioner of Human Services, shall monitor and evaluate
   17-8  prekindergarten programs in the State of Texas as to their
   17-9  developmental appropriateness.  Furthermore, the commissioner of
  17-10  education, in consultation with the Commissioner of Human Services,
  17-11  shall evaluate the potential for coordination on a statewide basis
  17-12  of prekindergarten programs with government-funded early childhood
  17-13  care and education programs such as child care administered under
  17-14  Chapter 44 of the Human Resources Code and federal Head Start
  17-15  programs.  This evaluation shall utilize recommendations contained
  17-16  in the report to the 71st Legislature required by Chapter 717, Acts
  17-17  of the 70th Legislature, Regular Session, 1987.  For the purpose of
  17-18  providing cost-effective care for children during the full work day
  17-19  with developmentally appropriate curriculum, the commissioners
  17-20  shall investigate the use of existing child care program sites as
  17-21  prekindergarten sites.  Following the evaluation required by this
  17-22  section, the commissioners, in cooperation with school districts
  17-23  and other program administrators, shall integrate programs, staff,
  17-24  and program sites for prekindergarten, child care, and federal Head
  17-25  Start programs to the greatest extent possible.
  17-26        (d)  A child may be enrolled in the first grade if he is at
  17-27  least six years of age at the beginning of the scholastic year or
   18-1  has been enrolled in the first grade or has completed kindergarten
   18-2  in the public schools in another state prior to transferring to a
   18-3  Texas public school.
   18-4        Sec. 16.005.  Administration of the Program.  The
   18-5  commissioner of education, in accordance with the rules of the
   18-6  State Board of Education, shall take such action and require such
   18-7  reports consistent with the terms of this chapter as may be
   18-8  necessary to implement and administer the Foundation School
   18-9  Program.
  18-10        Sec. 16.006.  Average Daily Attendance.  (a)  In this
  18-11  chapter, average daily attendance is determined by the daily
  18-12  attendance as averaged each month of the minimum school year as
  18-13  described under Section 16.052(a) of this code.
  18-14        (b)  A school district that experiences a decline of two
  18-15  percent or more in average daily attendance as a result of the
  18-16  closing or reduction in personnel of a military base shall be
  18-17  funded on the basis of the actual average daily attendance of the
  18-18  immediately preceding school year.
  18-19        (c)  The commissioner of education shall adjust the average
  18-20  daily attendance of school districts that have a significant
  18-21  percentage of students whose parent or guardian is a migrant
  18-22  worker.  For the purposes of this subsection, "migrant worker" has
  18-23  the meaning assigned by Section 21.5515 of this code.
  18-24        (d)  The commissioner may adjust the average daily attendance
  18-25  of a school district in which a disaster, flood, extreme weather
  18-26  condition, fuel curtailment, or other calamity has a significant
  18-27  effect on the district's attendance.
   19-1        Sec. 16.007.  Public Education Information Management System
   19-2  (PEIMS).  (a)  Each school district and each county education
   19-3  district shall participate in the Public Education Information
   19-4  Management System (PEIMS) and shall provide through that system
   19-5  information required for the administration of this chapter and of
   19-6  other appropriate provisions of this code.
   19-7        (b)  Each school district shall use a uniform accounting
   19-8  system adopted by the commissioner of education for the data
   19-9  required to be reported for the Public Education Information
  19-10  Management System.
  19-11        (c)  The Central Education Agency shall report annually to
  19-12  the Legislative Education Board the financial status of each county
  19-13  education district.  The report shall include the total state and
  19-14  local education revenues for each tier of the Foundation School
  19-15  Program.
  19-16        SECTION 5.  Subchapter B, Chapter 16, Education Code, is
  19-17  reenacted to read as follows:
  19-18     SUBCHAPTER B.  REQUIREMENTS FOR DISTRICT PARTICIPATION IN THE
  19-19                    FOUNDATION SCHOOL PROGRAM FUND
  19-20        Sec. 16.051.  Required Compliance.  In order to receive
  19-21  financial support from the Foundation School Fund, a school
  19-22  district must comply with the standards set forth in this
  19-23  subchapter.
  19-24        Sec. 16.052.  OPERATION OF SCHOOLS; TEACHER PREPARATION AND
  19-25  STAFF DEVELOPMENT.  (a)  Each school district must provide for not
  19-26  less than 180 days of instruction for students and not less than
  19-27  three days of preparation for teachers for each school year, except
   20-1  as provided in Subsection (c) of this section.
   20-2        (b)  Each school district must provide for not less than 20
   20-3  hours of staff development training under guidelines provided by
   20-4  the commissioner of education.  The training provided must include
   20-5  technology training and must occur during regular hours of required
   20-6  teacher service.  On the request of a teacher, a school district
   20-7  may credit the teacher compensatory time to be applied toward the
   20-8  number of training hours required under this subsection for
   20-9  workshops, conferences, or other professional training that the
  20-10  teacher has attended.
  20-11        (c)  The commissioner of education may approve the operation
  20-12  of schools for less than the number of days of instruction and
  20-13  teacher preparation otherwise required when disasters, floods,
  20-14  extreme weather conditions, fuel curtailments, or other calamities
  20-15  have caused the closing of the school.
  20-16        (d)  Each school district may reserve three hours of the
  20-17  first preparation day provided each school year under Subsection
  20-18  (a) of this section for faculty staff meetings.
  20-19        Sec. 16.053.  ACCREDITATION.  Each school district must be
  20-20  accredited by the Central Education Agency.
  20-21        Sec. 16.054.  Student/Teacher Ratios; Class Size.
  20-22  (a)  Except as provided by Subsection (b) of this section, each
  20-23  school district must employ a sufficient number of certified
  20-24  teachers to maintain an average ratio of not less than one teacher
  20-25  for each 20 students in average daily attendance.
  20-26        (b)  A school district may not enroll more than 22 students
  20-27  in a kindergarten, first, second, third, or fourth grade class.
   21-1  This requirement shall not apply during the last 12 weeks of any
   21-2  school year.
   21-3        (c)  In determining the number of students to enroll in any
   21-4  class, a district shall consider the subject to be taught, the
   21-5  teaching methodology to be used, and any need for individual
   21-6  instruction.
   21-7        (d)  On application of a school district, the commissioner
   21-8  may except the district from the limits in Subsection (b) of this
   21-9  section if the commissioner finds the limits work an undue hardship
  21-10  on the district.  An exception expires at the end of the semester
  21-11  for which it is granted, and the commissioner may not grant an
  21-12  exception for more than one semester at a time.
  21-13        (e)  The commissioner shall report to the legislature each
  21-14  biennium regarding compliance with this section.  The report must
  21-15  include:
  21-16              (1)  a statement of the number of school districts
  21-17  granted an exception under Subsection (d) of this section; and
  21-18              (2)  an estimate of the total cost incurred by school
  21-19  districts in that biennium in complying with this section.
  21-20        Sec. 16.055.  Compensation of Professional and
  21-21  Paraprofessional Personnel.  (a)  A school district must pay each
  21-22  employee who is qualified for and employed in a position classified
  21-23  under the Texas Public Education Compensation Plan set forth in
  21-24  Section 16.056 of this chapter not less than the minimum monthly
  21-25  base salary, plus increments for teaching experience, specified for
  21-26  the position.
  21-27        (b)  Contracts for personnel shall be made on the basis of a
   22-1  minimum of 10 months' service, which must include the number of
   22-2  days of instruction for students and days of preparation for
   22-3  personnel required by Section 16.052 of this code.  The days of
   22-4  preparation required herein shall be conducted by local boards of
   22-5  education under rules and regulations established by the State
   22-6  Board of Education that are consistent with the state accreditation
   22-7  standards for program planning, preparation, and improvement.
   22-8  Personnel employed for more than 10 months shall be paid not less
   22-9  than the minimum monthly base pay plus increments for experience
  22-10  for each month of actual employment.  Personnel employed for 11
  22-11  months at pay grades 1-11 must render 202 days of service, and
  22-12  personnel employed for 12 months at pay grades 1-11 must render 220
  22-13  days of service.  Personnel employed for 11 months at pay grades
  22-14  12-18 must render 207 days of service, and personnel employed for
  22-15  12 months at pay grades 12-18 must render 226 days of service.
  22-16  However, the number of days of service required by this subsection
  22-17  may be reduced by the commissioner under Section 16.052(c) of this
  22-18  code, and the reduction shall not reduce the total salaries of
  22-19  personnel.
  22-20        (c)  Notwithstanding Subsection (b) of this section, a
  22-21  vocational agriculture teacher employed for 12 months shall render
  22-22  226 days of service regardless of pay grade.
  22-23        Sec. 16.056.  Texas Public Education Compensation Plan.
  22-24  (a)  School district personnel who are qualified for and employed
  22-25  in positions described in Subsection (d) of this section shall be
  22-26  paid not less than the monthly base salary, plus increments for
  22-27  teaching experience, set forth in Subsection (c) of this section,
   23-1  or greater amounts provided by appropriation.
   23-2        (b)  Each individual shall advance one step per each year of
   23-3  experience until step 10 is reached.  For each year, up to a
   23-4  maximum of two years, of work experience required for certification
   23-5  in a vocational field, a vocational teacher who is certified in
   23-6  that field is entitled to salary step credit as if the work
   23-7  experience were teaching experience.
   23-8        (c)  SALARY SCHEDULE BY STEPS
   23-9     0    1    2    3    4    5    6    7    8     9    10
  23-10   1700 1814 1928 2042 2156 2270 2384 2498 2612  2726  2840
  23-11        (d)  The following positions are entitled to the minimum
  23-12  monthly salary set by Subsection (c) of this section for the number
  23-13  of annual contract months specified:
  23-14          No.                                 Class Title
  23-15       Months Paid
  23-16         10                               Nurse, R.N. and/or
  23-17                                            Bachelor's Degree
  23-18         10                               Special Education Related
  23-19                                            Service Personnel (other
  23-20                                            than Occupational or
  23-21                                            Physical Therapist),
  23-22                                            Bachelor's Degree
  23-23         10                               Teacher, Bachelor's Degree
  23-24         10                               Vocational Teacher,
  23-25         11                               Bachelor's Degree and/or
  23-26         12                               Certified in Field
  23-27         10                               Librarian I, Bachelor's
   24-1                                            Degree
   24-2         10                               Visiting Teacher I,
   24-3                                            Psychological Associate,
   24-4                                            Bachelor's Degree
   24-5         10                               Special Education Related
   24-6                                            Service Personnel (other
   24-7                                            than Occupational or
   24-8                                            Physical Therapist),
   24-9                                            Master's Degree
  24-10         10                               Teacher, Master's Degree
  24-11         10                               Vocational Teacher,
  24-12         11                               Master's Degree
  24-13         12
  24-14         10                               Librarian II, Master's
  24-15                                            Degree
  24-16         10                               Physician, M.D.
  24-17         10                               Teacher, Bachelor of Laws
  24-18                                            or Doctor of Jurispru-
  24-19                                            dence Degree
  24-20         10                               Teacher, Doctor's Degree
  24-21         10                               Special Duty Teacher,
  24-22                                            Master's Degree
  24-23         10                               Occupational Therapist
  24-24         10                               Physical Therapist
  24-25         10                               Educational Diagnostician
  24-26         10                               Visiting Teacher II,
  24-27                                            Master's Degree
   25-1         10                               Counselor I, Psychologist
   25-2         10                               School Social Worker
   25-3         10                               Supervisor I
   25-4         10                               Part-time Principal--11 or
   25-5                                            fewer teachers on campus
   25-6         10                               Instructional/Administra-
   25-7                                            tive Officer I
   25-8         10                               Assistant Principal--20 or
   25-9                                            more teachers on campus
  25-10         10                               Instructional/Administra-
  25-11                                            tive Officer II
  25-12         11                               Principal--19 or fewer
  25-13                                            teachers on campus
  25-14         10                               Instructional/Administra-
  25-15                                            tive Officer III
  25-16         11                               Principal--20-49 teachers
  25-17                                            on campus
  25-18         11                               Instructional/Administra-
  25-19                                            tive Officer IV
  25-20         11                               Principal--50-99 teachers
  25-21                                            on campus
  25-22         12                               Principal--100 or more
  25-23                                            teachers on campus
  25-24         12                               Instructional/Administra-
  25-25                                            tive Officer V
  25-26         12                               Instructional/Administra-
  25-27                                            tive Officer VI
   26-1         12                               Superintendent--District
   26-2                                            with 3,000
   26-3                                            or less ADA
   26-4         12                               Instructional/Administra-
   26-5                                            tive Officer VII
   26-6         12                               Superintendent--District
   26-7                                            with 3,001-12,500 ADA
   26-8         12                               Instructional/Administra-
   26-9                                            tive Officer VIII
  26-10         12                               Superintendent--District
  26-11                                            with 12,501-50,000 ADA
  26-12         12                               Superintendent--District
  26-13                                            with 50,000 or more ADA
  26-14        (e)  With the approval of the State Board of Education, the
  26-15  commissioner of education may add additional positions and months
  26-16  of service to the Texas Public Education Compensation Plan to
  26-17  reflect curriculum and program changes authorized by law.  With the
  26-18  approval of the board, the commissioner shall also develop policies
  26-19  for the implementation and administration of the compensation plan.
  26-20        (f)  Each person employed in the public schools of this state
  26-21  who is an educational aide, teacher trainee, or nondegree teacher
  26-22  or who is assigned to a position classified under the Texas Public
  26-23  Education Compensation Plan must be certified according to the
  26-24  certification requirements or standards for each position as
  26-25  established by rule adopted by the State Board of Education.
  26-26  However, additional certification may not be required of a person
  26-27  holding a valid state license as a speech language pathologist or
   27-1  audiologist.  Persons other than those holding such a license may
   27-2  only be employed to render such services if an acceptable licensed
   27-3  applicant is not available.
   27-4        (g)  The State Board of Education shall prescribe the general
   27-5  duties and required preparation and education for educational
   27-6  aides, teacher trainees, and nondegree teachers and for the
   27-7  positions listed in Subsection (d) of this section under the
   27-8  circumstances described therein.
   27-9        (h)  In determining the placement of a teacher on the salary
  27-10  schedule under Subsection (c) of this section, a district shall
  27-11  credit the teacher for each year of experience, whether or not the
  27-12  years are consecutive.  Notwithstanding the provision of this
  27-13  subsection, no teacher shall be placed on the salary schedule at a
  27-14  step above the step where the teacher would have been placed had
  27-15  that teacher remained in continuous service.
  27-16        Sec. 16.057.  Career Ladder Salary Supplement.  (a)  Except
  27-17  as provided by Subsection (c) of this section, each teacher on
  27-18  level two, three, or four of a career ladder is entitled to the
  27-19  following annual supplement in addition to the minimum salary set
  27-20  by this subchapter:
  27-21                     Level 2 . . . . . . . $2,000
  27-22                     Level 3 . . . . . . . $4,000
  27-23                     Level 4 . . . . . . . $6,000
  27-24        (b)  If the district pays more than the state minimum salary
  27-25  prescribed by this subchapter, the teacher is entitled to the
  27-26  career ladder supplement in addition to the amount otherwise paid
  27-27  by the district for the teacher's step.
   28-1        (c)  If the allotment under Section 16.158 of this code that
   28-2  is designated for support of the career ladder will not fully fund
   28-3  the supplements under this section:
   28-4              (1)  the district may reduce the supplements to not
   28-5  less than the following:
   28-6                     Level 2 . . . . . . . $1,500
   28-7                     Level 3 . . . . . . . $3,000
   28-8                     Level 4 . . . . . . . $4,500
   28-9  or;
  28-10              (2)  provide for stricter performance criteria than
  28-11  that provided under Section 13.302 of this code, subject to the
  28-12  approval of the State Board of Education; or
  28-13              (3)  take action under both Subdivisions (1) and (2) of
  28-14  this subsection.
  28-15        SECTION 6.  Sections 16.101 and 16.102, Education Code, are
  28-16  reenacted and amended to read as follows:
  28-17        Sec. 16.101.  Basic Allotment.  For each student in average
  28-18  daily attendance, not including the time students spend each day in
  28-19  special education or vocational education programs for which an
  28-20  additional allotment is made under Subchapter D of this chapter, a
  28-21  district is entitled to an allotment in the <of $2,200 for the
  28-22  1991-1992 school year, $2,400 for the 1992-1993 school year, $2,600
  28-23  for the 1993-1994 school year, and $2,800 for the 1994-1995 school
  28-24  year and thereafter or a greater> amount adopted by the foundation
  28-25  school fund budget committee under Section 18.66 <16.256> of this
  28-26  code <for the 1993-1994 school year and each school year
  28-27  thereafter>.  A greater amount for any school year may be provided
   29-1  by appropriation.
   29-2        Sec. 16.102.  Cost of Education Adjustment.  (a)  The
   29-3  commissioner of education shall adjust the basic allotment for each
   29-4  district <is adjusted> to reflect the geographic variation in known
   29-5  resource costs and costs of education due to factors beyond the
   29-6  control of the school district, including region, size, area,
   29-7  density, educational characteristics, and economic conditions.
   29-8  <Except as provided by this section, the adjustment is that
   29-9  provided under Section 16.206 of this code.>
  29-10        <(b)  The adjustment for the 1991-1992 and 1992-1993 school
  29-11  years is the cost of education index and formula adopted in
  29-12  December 1990 by the foundation school fund budget committee.  For
  29-13  the 1991-1992 and 1992-1993 school years, the commissioner of
  29-14  education shall recalculate the cost of education index for school
  29-15  districts that are eligible for the adjustment under Section 16.103
  29-16  of this code, excluding from the computation the calculation for
  29-17  the diseconomies of scale component and substituting a value of
  29-18  1.00.  This subsection expires September 1, 1993.>
  29-19        SECTION 7.  Subchapter D, Chapter 16, Education Code, is
  29-20  reenacted to read as follows:
  29-21                   SUBCHAPTER D.  SPECIAL ALLOTMENTS
  29-22        Sec. 16.151.  Special Education.  (a)  For each full-time
  29-23  equivalent student in average daily attendance in a special
  29-24  education program under Subchapter N, Chapter 21, of this code, a
  29-25  district is entitled to an annual allotment equal to the adjusted
  29-26  basic allotment multiplied by a weight determined according to
  29-27  instructional arrangement as follows:
   30-1              Homebound  . . . . . . . . . . . . . . .  5.0
   30-2              Hospital class . . . . . . . . . . . . .  5.0
   30-3              Speech therapy . . . . . . . . . . . . .  7.11
   30-4              Resource room  . . . . . . . . . . . . .  2.7
   30-5              Self-contained, mild and moderate,
   30-6                  regular campus . . . . . . . . . . .  2.3
   30-7              Self-contained, severe, regular
   30-8                  campus . . . . . . . . . . . . . . .  3.5
   30-9              Self-contained, separate campus  . . . .  2.7
  30-10              Multidistrict class  . . . . . . . . . .  3.5
  30-11              Nonpublic day school . . . . . . . . . .  3.5
  30-12              Vocational adjustment class  . . . . . .  2.3
  30-13              Community class  . . . . . . . . . . . .  3.5
  30-14              Mainstream . . . . . . . . . . . . . . .  0.25
  30-15        (b)  A special instructional arrangement for handicapped
  30-16  students residing in care and treatment facilities, other than
  30-17  state schools, whose parents or guardians do not reside in the
  30-18  district providing education services shall be established under
  30-19  the rules of the State Board of Education.  The funding weight for
  30-20  this arrangement shall be 5.0 for those students who receive their
  30-21  education service on a local school district campus.  A special
  30-22  instructional arrangement for handicapped students residing in
  30-23  state schools shall be established under the rules of the State
  30-24  Board of Education with a funding weight of 5.0.
  30-25        (e)  The State Board of Education by rule shall prescribe the
  30-26  qualifications an instructional arrangement must meet in order to
  30-27  be funded as a particular instructional arrangement under this
   31-1  section.
   31-2        (f)  In this section, "full-time equivalent student" means 30
   31-3  hours of contact a week between a special education student and
   31-4  special education program personnel.
   31-5        (g)  The State Board of Education shall adopt rules and
   31-6  procedures governing contracts for residential placement of special
   31-7  education students.  The legislature shall provide by appropriation
   31-8  for the state's share of the costs of those placements.
   31-9        (h)  Funds allocated under this section, other than an
  31-10  indirect cost allotment established under State Board of Education
  31-11  rule, must be used in the special education program under
  31-12  Subchapter N, Chapter 21, of this code.
  31-13        (i)  In the determination of instructional arrangements for
  31-14  students in residential instructional arrangements, the State Board
  31-15  of Education shall develop arrangements that encourage placement of
  31-16  students in the least restrictive environment appropriate for their
  31-17  educational needs.
  31-18        (j)  The Central Education Agency shall encourage the
  31-19  placement of students in special education programs in the least
  31-20  restrictive environment appropriate for their educational needs.
  31-21  The Central Education Agency shall provide transitional support for
  31-22  the movement of students from self-contained severe (totally
  31-23  self-contained) to self-contained mild and moderate (partially
  31-24  self-contained) instructional arrangements.  For each student
  31-25  placed in a partially self-contained classroom who was placed in a
  31-26  totally self-contained classroom for at least two-thirds of the
  31-27  prior year, a district will receive $2,500.  This payment must be
   32-1  used to facilitate the placement of the student in the less
   32-2  restrictive environment (partially self-contained classroom).  A
   32-3  district may not receive more than one support payment for any
   32-4  individual student.  This support payment shall be forfeited by the
   32-5  district if the student is returned to the totally self-contained
   32-6  classroom instructional arrangement within one month of placement
   32-7  into the partially self-contained classroom or within one year of
   32-8  initial reclassification without adequate justification.
   32-9        (k)  A school district that maintains for two successive
  32-10  years a ratio of full-time equivalent students placed in totally
  32-11  self-contained classrooms to the number of full-time equivalent
  32-12  students placed in partially self-contained classrooms that is 25
  32-13  percent higher than the statewide average ratio shall be reviewed
  32-14  by the Central Education Agency to determine the appropriateness of
  32-15  student placement.  To the extent that there are net cost savings
  32-16  to the state resulting from the movement of students from totally
  32-17  self-contained to partially self-contained, as provided in
  32-18  Subsection (j) of this section, those net savings will be directed
  32-19  to regional education service centers to provide technical
  32-20  assistance in accordance with Section 11.33(c) of this code
  32-21  regarding the movement of students to less restrictive environments
  32-22  to those school districts whose ratio of full-time equivalent
  32-23  students placed in totally self-contained classrooms is 25 percent
  32-24  higher than the statewide average.
  32-25        (l)  A student in a mainstream instructional arrangement who
  32-26  is not also in another instructional arrangement as provided in
  32-27  Subsection (a) of this section is provided the support necessary
   33-1  for the student to remain in the regular classroom.  This support
   33-2  may include related services as defined in Section 21.502 of this
   33-3  code, special teaching, or other special education support services
   33-4  while in the regular classroom.
   33-5        Sec. 16.152.  Compensatory Education Allotment.  (a)  For
   33-6  each student who is educationally disadvantaged or who is a
   33-7  nonhandicapped student residing in a residential placement facility
   33-8  in a district in which the student's parent or legal guardian does
   33-9  not reside, a district is entitled to an annual allotment equal to
  33-10  the adjusted basic allotment multiplied by 0.2, and by 2.41 for
  33-11  each full-time equivalent student who is in a remedial and support
  33-12  program under Section 21.557 of this code because the student is
  33-13  pregnant.
  33-14        (b)  For purposes of this section, the number of
  33-15  educationally disadvantaged students is determined by averaging the
  33-16  best six months' enrollment in the national school lunch program of
  33-17  free or reduced-price lunches for the preceding school year.
  33-18        (c)  Funds allocated under this section, other than an
  33-19  indirect cost allotment established under State Board of Education
  33-20  rule, which shall not exceed 15 percent, must be used in providing
  33-21  remedial and compensatory education programs under Section 21.557
  33-22  of this code, and the district must account for the expenditure of
  33-23  state funds by program and by campus.  Funds allocated under this
  33-24  section, other than the indirect cost allotment, shall only be
  33-25  expended to improve and enhance programs and services funded under
  33-26  the regular education program.
  33-27        (d)  The Central Education Agency shall evaluate the
   34-1  effectiveness of remedial and support programs provided under
   34-2  Section 21.557 of this code for students at risk of dropping out of
   34-3  school.
   34-4        (e)  A school district in which the actual dropout rate in
   34-5  any school year exceeds the state's dropout rate goal for that year
   34-6  under Subsection (a) of Section 11.205 of this code shall, for the
   34-7  school year immediately following that school year, allocate a
   34-8  percentage of the district's allotment under this section to
   34-9  remedial and support programs under Section 21.557 of this code for
  34-10  students at risk of dropping out of school.  The percentage
  34-11  allocated to those programs must be at least equal to the state's
  34-12  actual dropout rate for the preceding year.  The programs must be
  34-13  programs authorized by the State Board of Education.  The Central
  34-14  Education Agency shall provide to the district technical assistance
  34-15  in reducing the district's dropout rate.  At the request of a
  34-16  district, the commissioner of education may exempt the district
  34-17  from the requirements of this section if the commissioner finds
  34-18  that special circumstances in the district merit the exemption.
  34-19        (f)  The commissioner of education may:
  34-20              (1)  retain a portion of the total amount allotted
  34-21  under Subsection (a) of this section that the commissioner
  34-22  considers appropriate to finance pilot programs under Section
  34-23  11.191 of this code and to finance intensive remedial instruction
  34-24  programs and study guides provided under Sections 21.552(b) and (c)
  34-25  of this code; and
  34-26              (2)  reduce each district's allotment proportionately.
  34-27        (g)  From the total amount of funds appropriated for
   35-1  allotments under this section, the commissioner of education shall,
   35-2  each fiscal year, withhold the amount of $10,000,000 and distribute
   35-3  that amount for programs under Section 21.114 of this code.  The
   35-4  program established under that section is required only in school
   35-5  districts in which the program is financed by funds distributed
   35-6  under this section and any other funds available for the program.
   35-7        (h)  The commissioner of education shall coordinate the funds
   35-8  withheld under Subsection (g) of this section and any other funds
   35-9  available for the program and shall distribute those funds.  To
  35-10  receive funds for the program, a school district must apply to the
  35-11  commissioner.  The commissioner shall give a preference to the
  35-12  districts that apply that have the highest concentration of
  35-13  students who are pregnant or who are parents.
  35-14        (i)  The commissioner of education shall withhold funds
  35-15  allocated under this section to a district that fails to timely
  35-16  prepare or make available on request of a member of the general
  35-17  public the report required under Section 21.557(i) of this code.
  35-18  The commissioner may restore withheld funds only when the
  35-19  commissioner is satisfied that the district has provided the
  35-20  information requested.
  35-21        (j) <(i)>  After deducting the amount withheld under
  35-22  Subsection (g) of this section from the total amount appropriated
  35-23  for the allotment under Subsection (a) of this section, the
  35-24  commissioner of education shall reduce each district's allotment
  35-25  under Subsection (a) proportionately and shall allocate funds to
  35-26  each district accordingly.
  35-27        (k) <(j)>  From the total amount of funds appropriated for
   36-1  allotments under this section, the commissioner of education shall,
   36-2  each fiscal year, withhold the amount of $5,000,000 and distribute
   36-3  that amount for programs under Subchapter V, Chapter 21, of this
   36-4  code.  A program established under that subchapter is required only
   36-5  in school districts in which the program is financed by funds
   36-6  distributed under this section or other funds distributed by the
   36-7  commissioner for a program under that subchapter.
   36-8        (l) <(k)>  The commissioner of education shall coordinate the
   36-9  funds withheld under Subsection (k) <(j)> of this section and any
  36-10  other funds available for the program and shall distribute those
  36-11  funds.  To receive funds for the program, a school district must
  36-12  apply to the commissioner.  The commissioner shall give a
  36-13  preference to the districts that apply that have the highest
  36-14  concentration of at-risk students.  For each school year that a
  36-15  school district receives funds under this section, the district
  36-16  shall allocate an amount of local funds for school guidance and
  36-17  counseling programs that is equal to or greater than the amount of
  36-18  local funds that the school district allocated for that purpose
  36-19  during the preceding school year.
  36-20        (m) <(l)>  After deducting the amount withheld under
  36-21  Subsection (k) <(j)> of this section from the total amount
  36-22  appropriated for the allotment under Subsection (a) of this
  36-23  section, the commissioner of education shall reduce each district's
  36-24  allotment under Subsection (a) on a per pupil basis.
  36-25        Sec. 16.153.  BILINGUAL EDUCATION ALLOTMENT.  (a)  For each
  36-26  student in average daily attendance in a bilingual education or
  36-27  special language program under Subchapter L, Chapter 21, of this
   37-1  code, a district is entitled to an annual allotment equal to the
   37-2  adjusted basic allotment multiplied by 0.1.
   37-3        (b)  Funds allocated under this section, other than an
   37-4  indirect cost allotment established under State Board of Education
   37-5  rule, must be used in providing bilingual education or special
   37-6  language programs under Subchapter L, Chapter 21, of this code.
   37-7        (c)  A district's bilingual education or special language
   37-8  allocation may be used only for program and pupil evaluation,
   37-9  instructional materials and equipment, staff development,
  37-10  supplemental staff expenses, salary supplements for teachers, and
  37-11  other supplies required for quality instruction and smaller class
  37-12  size.
  37-13        Sec. 16.155.  VOCATIONAL EDUCATION ALLOTMENT.  (a)  For each
  37-14  full-time equivalent student in average daily attendance in an
  37-15  approved vocational education program in grades nine through 12 or
  37-16  in vocational education for the handicapped programs in grades
  37-17  seven through 12, a district is entitled to an annual allotment
  37-18  equal to the adjusted basic allotment multiplied by a weight of
  37-19  1.37.
  37-20        (b)  In this section, "full-time equivalent student" means 30
  37-21  hours of contact a week between a student and vocational education
  37-22  program personnel.
  37-23        (c)  Funds allocated under this section, other than an
  37-24  indirect cost allotment established under State Board of Education
  37-25  rule, must be used in providing vocational education programs in
  37-26  grades nine through 12 or vocational education for the handicapped
  37-27  programs in grades seven through 12 under the provisions of
   38-1  Sections 21.111, 21.1111, and 21.112 of this code.
   38-2        (d)  The indirect cost allotment established under board
   38-3  rules shall first be effective for the 1991-1992 school year
   38-4  consistent with the weight effective that year.
   38-5        (e)  The commissioner shall conduct a cost-benefit comparison
   38-6  between vocational education programs and mathematics and science
   38-7  programs.
   38-8        (f) <(h)>  Out of the total statewide allotment for
   38-9  vocational education under this section, the commissioner of
  38-10  education shall set aside an amount specified in the General
  38-11  Appropriations Act, which may not exceed an amount equal to one
  38-12  percent of the total amount appropriated, to support regional
  38-13  vocational education planning committees established under Section
  38-14  21.115(b) of this code.  After deducting the amount set aside under
  38-15  this subsection from the total amount appropriated for vocational
  38-16  education under this section, the commissioner shall reduce each
  38-17  district's allotment in the same manner described for a reduction
  38-18  in state funds under Section 16.254(d) of this code.
  38-19        Sec. 16.156.  TRANSPORTATION ALLOTMENT.  (a)  Each district
  38-20  or county operating a transportation system is entitled to
  38-21  allotments for transportation costs as provided by this section.
  38-22        (b)  As used in this section:
  38-23              (1)  "Regular eligible pupil" means a pupil who resides
  38-24  two or more miles from his or her campus of regular attendance,
  38-25  measured along the shortest route that may be traveled on public
  38-26  roads, and who is not classified as an eligible handicapped pupil.
  38-27              (2)  "Eligible handicapped pupil" means a pupil who is
   39-1  handicapped as defined in Section 21.503 of this code and who would
   39-2  be unable to attend classes without special transportation
   39-3  services.
   39-4              (3)  "Linear density" means the average number of
   39-5  regular eligible pupils transported daily, divided by the approved
   39-6  daily route miles traveled by the respective transportation system.
   39-7        (c)  Each district or county operating a regular
   39-8  transportation system is entitled to an allotment based on the
   39-9  daily cost per regular eligible pupil of operating and maintaining
  39-10  the regular transportation system and the linear density of that
  39-11  system.  In determining the cost, the commissioner shall give
  39-12  consideration to factors affecting the actual cost of providing
  39-13  these transportation services in each district or county.  The
  39-14  average actual cost is to be computed by the commissioner of
  39-15  education and included for consideration by the Foundation School
  39-16  Fund Budget Committee and the legislature in the General
  39-17  Appropriations Act.  The allotment per mile of approved route may
  39-18  not exceed the amount set by appropriation.
  39-19        (d)  A district or county may apply for and on approval of
  39-20  the commissioner of education receive an additional amount of up to
  39-21  10 percent of its regular transportation allotment to be used for
  39-22  the transportation of children living within two miles of the
  39-23  school they attend who would be subject to hazardous traffic
  39-24  conditions if they walked to school.  Each board of trustees shall
  39-25  provide to the commissioner the definition of hazardous conditions
  39-26  applicable to that district and shall identify the specific
  39-27  hazardous areas for which the allocation is requested.  A hazardous
   40-1  condition exists where no walkway is provided and children must
   40-2  walk along or cross a freeway or expressway, an underpass, an
   40-3  overpass or a bridge, an uncontrolled major traffic artery, an
   40-4  industrial or commercial area, or another comparable condition.
   40-5        (e)  The state commissioner of education may grant an amount
   40-6  set by appropriation for private or commercial transportation for
   40-7  eligible pupils from isolated areas.   The need for this type of
   40-8  transportation grant shall be determined on an individual basis and
   40-9  the amount granted shall not exceed the actual cost.  The grants
  40-10  shall be made only in extreme hardship cases, and no grants shall
  40-11  be made if the pupils live within two miles of an approved school
  40-12  bus route.
  40-13        (f)  The cost of transporting vocational education students
  40-14  from one campus to another inside a district or from a sending
  40-15  district to another secondary public school for a vocational
  40-16  program or an area vocational school or to an approved
  40-17  post-secondary institution under a contract for instruction
  40-18  approved by the Central Education Agency shall be reimbursed based
  40-19  on the number of actual miles traveled times the district's
  40-20  official extracurricular travel per mile rate as set by their local
  40-21  board of trustees and approved by the Central Education Agency.
  40-22        (g)  A school district or county that provides special
  40-23  transportation services for eligible handicapped pupils is entitled
  40-24  to a state allocation paid on a previous year's cost-per-mile
  40-25  basis.  The maximum rate per mile allowable shall be set by
  40-26  appropriation based on data gathered from the first year of each
  40-27  preceding biennium.  Districts may use a portion of their support
   41-1  allocation to pay transportation costs, if necessary.  The
   41-2  commissioner of education may grant an amount set by appropriation
   41-3  for private transportation to reimburse parents or their agents for
   41-4  transporting eligible handicapped pupils.  The mileage allowed
   41-5  shall be computed along the shortest public road from the pupil's
   41-6  home to school and back, morning and afternoon.  The need for this
   41-7  type transportation shall be determined on an individual basis and
   41-8  shall be approved only in extreme hardship cases.
   41-9        (h)  The allocation for eligible regular students transported
  41-10  by the regular transportation system shall be increased by five
  41-11  percent for any district or county school board which has complied
  41-12  with the provisions of Section 21.173 of this code in accordance
  41-13  with rules adopted by the State Board of Education.
  41-14        (i)  Funds allotted under this section must be used in
  41-15  providing transportation services.
  41-16        (j)  In the case of a district belonging to a county
  41-17  transportation system, the district's transportation allotment for
  41-18  purposes of determining a district's foundation school program
  41-19  allocations shall be determined on the basis of the number of
  41-20  approved daily route miles in the district multiplied by the
  41-21  allotment per mile to which the county transportation system is
  41-22  entitled.
  41-23        Sec. 16.158.  Career Ladder Allotment.  (a)  Each district is
  41-24  entitled to an allotment for support of the career ladder equal to
  41-25  its unadjusted average daily attendance multiplied by $90.
  41-26        (b)  An allotment under this section may be used only for the
  41-27  purposes of career ladder supplements.
   42-1        (c)  From the funds designated for that purpose, the district
   42-2  shall supplement the salary of each teacher above level one on the
   42-3  career ladder.  The district shall decide the amount of supplement
   42-4  to be provided at each career ladder level.
   42-5        (d)  Money received under this section may not be used to
   42-6  supplement the salary of an employee for directing cocurricular or
   42-7  extracurricular activities.
   42-8        Sec. 16.159.  Gifted and Talented Student Allotment.
   42-9  (a)  For each student a school district serves in a Central
  42-10  Education Agency approved program for gifted and talented students
  42-11  under Subchapter Q, Chapter 21, of this code or, in the case of a
  42-12  district that is developing a program in accordance with standards
  42-13  established by the commissioner of education, for each student the
  42-14  district identifies as gifted and talented under State Board of
  42-15  Education criteria, a district is entitled to an annual allotment
  42-16  equal to the district's adjusted basic allotment as determined
  42-17  under Section 16.102 or Section 16.103 of this code, as applicable,
  42-18  multiplied by .12 for each school year or a greater amount provided
  42-19  by appropriation.
  42-20        (b)  Funds allocated under this section, other than the
  42-21  amount that represents the program's share of general
  42-22  administrative costs, must be used in providing approved programs
  42-23  for gifted and talented students under Subchapter Q, Chapter 21, of
  42-24  this code or, in the case of a district that has not yet
  42-25  established a program, in developing programs for gifted and
  42-26  talented students.  Each district must account for the expenditure
  42-27  of state funds as provided by rule of the State Board of Education.
   43-1  If by the end of the 12th month after receiving an allotment for
   43-2  developing a program a district has failed to implement an approved
   43-3  program, the district must refund the amount of the allotment to
   43-4  the agency within 30 days.
   43-5        (c)  Not more than five percent of a district's students in
   43-6  average daily attendance are eligible for funding under this
   43-7  section.
   43-8        (d)  If the amount of state funds for which school districts
   43-9  are eligible under this section exceeds the amount of state funds
  43-10  appropriated in any year for the programs, the commissioner of
  43-11  education shall reduce each district's allotment on a pro rata
  43-12  basis.
  43-13        (e)  If the total amount of funds allotted under this section
  43-14  before a date set by rule of the State Board of Education is less
  43-15  than the total amount appropriated for a school year, the
  43-16  commissioner shall distribute the remainder proportionately to the
  43-17  districts that have received an allotment, and no other districts
  43-18  are eligible for an allotment for that school year.
  43-19        (f)  After each district has received allotted funds for this
  43-20  program, the State Board of Education may use up to $500,000 of the
  43-21  funds allocated under this section for programs such as Future
  43-22  Problem Solving Olympics of the Mind, and Academic Decathlon, as
  43-23  long as these funds are used to train personnel and provide program
  43-24  services.  To be eligible for funding under this section, a program
  43-25  must be determined by the State Board of Education to provide
  43-26  services that are effective and consistent with the state plan for
  43-27  gifted and talented education.
   44-1        Sec. 16.160.  TECHNOLOGY FUNDS.  (a)  Developmental and
   44-2  technology allotment allocations under the provisions of Chapter 14
   44-3  are included in the Foundation School Program.
   44-4        (b)  Each district shall be allotted the amount specified in
   44-5  Section 14.063 of this code after deductions by the commissioner of
   44-6  education for the purposes of financing programs authorized under
   44-7  Subchapter C, Chapter 14, of this code.
   44-8        SECTION 8.  Section 18.12(a), Education Code, is amended to
   44-9  read as follows:
  44-10        (a)  The county-wide equalization tax which may be authorized
  44-11  by the voters under this chapter shall be assessed at rates not to
  44-12  exceed<:>
  44-13              <(1)  50 cents on the $100 property valuation in those
  44-14  counties with a total population of 100,000 or more.>
  44-15              <(2)>  $1 on the $100 property valuation <in those
  44-16  counties with a total population of fewer than 100,000>.
  44-17        SECTION 9.  Section 18.28, Education Code, is amended to read
  44-18  as follows:
  44-19        Sec. 18.28.  Expenditure of Funds.  Such funds shall be
  44-20  expended by the County School Trustees of such counties for the
  44-21  equalization of educational opportunities in such counties, and for
  44-22  the payment of administration expense, upon warrants signed by the
  44-23  President and the Secretary of the County School Trustees; and all
  44-24  such expenditures shall be approved monthly by the County School
  44-25  Trustees<; provided, however, no part of such fund shall be
  44-26  expended in any school district which does not levy a tax for
  44-27  school purposes of 75 cents or more on the 100 Dollars value of
   45-1  taxable property in such district>.
   45-2        SECTION 10.  Sections 20.09(a), (b), and (c), Education Code,
   45-3  are amended to read as follows:
   45-4        (a)  Except as provided by Subsection <Subsections> (c) <and
   45-5  (d)> of this section, a school district may not impose a total tax
   45-6  rate on the $100 valuation of taxable property <that results in a
   45-7  levy> that exceeds a tax rate equal to 50 percent of the tax rate
   45-8  levied by the county-unit system of which the school district is a
   45-9  component <the levy that results from applying the following rate
  45-10  to the district's taxable value of property as determined under
  45-11  Section 11.86 of this code:>
  45-12              <(1)  $0.78 for the 1991 tax year;>
  45-13              <(2)  $0.68 for the 1992 tax year;>
  45-14              <(3)  $0.58 for the 1993 tax year; and>
  45-15              <(4)  $0.50 for each subsequent tax year>.
  45-16        (b)  A district may impose taxes under this chapter on the
  45-17  residence homestead of a person whose taxes for general elementary
  45-18  and secondary public school purposes are limited under Article
  45-19  VIII, Section 1-b(d), of the Texas Constitution, only to the extent
  45-20  that the imposition, when added to the taxes imposed on the
  45-21  homestead by a county-unit system <the county education district>,
  45-22  does not increase the person's tax liability for those purposes in
  45-23  violation of the constitutional limit.
  45-24        (c)  The portion of the total tax rate required to collect
  45-25  the taxes pledged and levied for the payment of principal and
  45-26  interest on debt authorized to be issued by an election held on or
  45-27  before April 1, 1993 <1991>, and issued before September 1, 1994
   46-1  <1992>, is not subject to the tax limitation under Subsection (a)
   46-2  of this section.
   46-3        SECTION 11.  Sections 11.86(a) and (h), Education Code, are
   46-4  amended to read as follows:
   46-5        (a)  The comptroller shall conduct an annual study using
   46-6  comparable sales and generally accepted auditing and sampling
   46-7  techniques to determine the total value of all taxable property in
   46-8  each <county education> school district and in each county-unit
   46-9  system <of its component school districts>.  The study shall
  46-10  determine the taxable value of all property and of each category of
  46-11  property within each <the> district and system and the productivity
  46-12  value of all land that qualifies for appraisal on the basis of its
  46-13  productive capacity and for which the owner has applied for and
  46-14  received a productivity appraisal.  In conducting the study, the
  46-15  comptroller shall review the appraisal standards, procedures, and
  46-16  methodology used by each appraisal district to determine the
  46-17  taxable value of property in each school district and system.  The
  46-18  review must test the validity of the taxable values assigned to
  46-19  each category of property by the appraisal district:
  46-20              (1)  using, if appropriate, samples selected through
  46-21  generally accepted sampling techniques; and
  46-22              (2)  according to generally accepted standard
  46-23  valuation, statistical compilation, and analysis techniques.  If
  46-24  the comptroller finds in the annual study that generally accepted
  46-25  appraisal standards and practices were used by the appraisal
  46-26  district in valuing a particular category of property, and that the
  46-27  taxable values assigned to each category of property by the
   47-1  appraisal district are valid, the appraisal roll value of that
   47-2  category of property is presumed to represent taxable value.  In
   47-3  the absence of such a presumption, the comptroller shall estimate
   47-4  the taxable value of that category of property using generally
   47-5  accepted standard valuation, statistical compilation, and analysis
   47-6  techniques.  For the purposes of this section, "taxable value"
   47-7  means market value less:
   47-8                    (1)  the total dollar amount of any exemptions of
   47-9  part but not all of the value of taxable property required by the
  47-10  constitution or a statute that a district lawfully granted in the
  47-11  year that is the subject of the study;
  47-12                    (2)  the total dollar amount of any exemptions
  47-13  granted within a reinvestment zone under agreements authorized by
  47-14  the Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
  47-15  Code);
  47-16                    (3)  the total dollar amount of any captured
  47-17  appraised value of property that is located in a reinvestment zone
  47-18  and that is eligible for tax increment financing under the Tax
  47-19  Increment Financing Act (Chapter 311, Tax Code);
  47-20                    (4)  the total dollar amount of any exemptions
  47-21  granted under Section 11.251, Tax Code;
  47-22                    (5)  the difference between the market value and
  47-23  the productivity value of land that qualifies for appraisal on the
  47-24  basis of its productive capacity, except that the productivity
  47-25  value may not exceed the fair market value of the land;
  47-26                    (6)  the portion of the appraised value of
  47-27  residence homesteads of the elderly on which school district taxes
   48-1  are not imposed in the year that is the subject of the study,
   48-2  calculated as if the residence homesteads were appraised at the
   48-3  full value required by law;
   48-4                    (7)  a portion of the market value of property
   48-5  not otherwise fully taxable by the district at market value because
   48-6  of action required by statute or the Texas Constitution that, if
   48-7  the tax rate adopted by the district is applied to it, produces an
   48-8  amount equal to the difference between the tax that the district
   48-9  would have imposed on the property if the property were fully
  48-10  taxable at market value and the tax that the district is actually
  48-11  authorized to impose on the property; and
  48-12                    (8)  the market value of all tangible personal
  48-13  property, other than manufactured homes, owned by a family or
  48-14  individual and not held or used for the production of income.
  48-15        (h)  For the purposes of Subsections (b)-(g) of this section,
  48-16  "school district" includes a county-unit system <county education
  48-17  district established under Subchapter G, Chapter 20, of this code>.
  48-18        SECTION 12.  Section 15.01, Education Code, is amended by
  48-19  adding Subsection (d) to read as follows:
  48-20        (d)  If the total amount of the available school fund
  48-21  apportioned to a county exceeds the amount of state funds due the
  48-22  corresponding county-unit system under Section 18.63 of this code,
  48-23  the excess shall be apportioned among the component school
  48-24  districts of the system to the extent that each district is
  48-25  eligible for state funds under Section 18.65 of this code.  If a
  48-26  portion of the available school fund remains after the amount due
  48-27  each district under Section 18.65 has been distributed, the
   49-1  remainder shall be apportioned among all school districts in the
   49-2  county on the basis of the number of county resident students in
   49-3  average daily attendance in each district.
   49-4        SECTION 13.  Section 1.04, Tax Code, is amended by amending
   49-5  Subdivision (12) to read as follows:
   49-6              (12)  "Taxing unit" means a county, an incorporated
   49-7  city or town (including a home-rule city), a school district
   49-8  (including a county-unit system), <a county education district,> a
   49-9  special district or authority (including a junior college district,
  49-10  a hospital district, a district created by or pursuant to the Water
  49-11  Code, a mosquito control district, a fire prevention district, or a
  49-12  noxious weed control district), or any other political unit of this
  49-13  state, whether created by or pursuant to the constitution or a
  49-14  local, special, or general law, that is authorized to impose and is
  49-15  imposing ad valorem taxes on property even if the governing body of
  49-16  another political unit determines the tax rate for the unit or
  49-17  otherwise governs its affairs.
  49-18        SECTION 14.  Section 6.02(b), Tax Code, is amended to read as
  49-19  follows:
  49-20        (b)  A taxing unit <other than a county education district>
  49-21  that has boundaries extending into two or more counties may choose
  49-22  to participate in only one of the appraisal districts.  In that
  49-23  event, the boundaries of the district chosen extend outside the
  49-24  county to the extent of the unit's boundaries.  To be effective,
  49-25  the choice must be approved by resolution of the board of directors
  49-26  of the district chosen.  <A county education district that has
  49-27  boundaries extending into two or more counties must participate in
   50-1  each appraisal district in which one of its component school
   50-2  districts participates for purposes of appraisal of the component
   50-3  school district's territory.>
   50-4        SECTION 15.  Sections 6.03(c)-(e), Tax Code, are amended to
   50-5  read as follows:
   50-6        (c)  Members of the board of directors are appointed by vote
   50-7  of the governing bodies of the incorporated cities and towns, the
   50-8  school districts <other than the county education district>, and,
   50-9  if entitled to vote, the conservation and reclamation districts
  50-10  that participate in the district and of the county.  A governing
  50-11  body may cast all its votes for one candidate or distribute them
  50-12  among candidates for any number of directorships.  Conservation and
  50-13  reclamation districts are not entitled to vote unless at least one
  50-14  conservation and reclamation district in the district delivers to
  50-15  the chief appraiser a written request to nominate and vote on the
  50-16  board of directors by June 1 of each odd-numbered year.  On receipt
  50-17  of a request, the chief appraiser shall certify a list by June 15
  50-18  of all eligible conservation and reclamation districts that are
  50-19  imposing taxes and that participate in the district.
  50-20        (d)  The voting entitlement of a taxing unit that is entitled
  50-21  to vote for directors is determined by dividing the total dollar
  50-22  amount of property taxes imposed in the district by the taxing unit
  50-23  for the preceding tax year by the sum of the total dollar amount of
  50-24  property taxes imposed in the district for that year by each taxing
  50-25  unit that is entitled to vote, by multiplying the quotient by
  50-26  1,000, and by rounding the product to the nearest whole number.
  50-27  That number is multiplied by the number of directorships to be
   51-1  filled.  <For a school district, the total dollar amount of
   51-2  property taxes imposed in the district by the unit is considered to
   51-3  be the sum of the taxes imposed by the district and the revenue
   51-4  received by the district from the county education district.>  A
   51-5  taxing unit participating in two or more districts is entitled to
   51-6  vote in each district in which it participates, but only the taxes
   51-7  imposed in a district are used to calculate voting entitlement in
   51-8  that district.
   51-9        (e)  The chief appraiser shall calculate the number of votes
  51-10  to which each taxing unit other than a conservation and reclamation
  51-11  district is entitled and shall deliver written notice to each of
  51-12  those units of its voting entitlement before October 1 of each
  51-13  odd-numbered year.  The chief appraiser shall deliver the notice:
  51-14              (1)  to the county judge and each commissioner of the
  51-15  county served by the appraisal district;
  51-16              (2)  to the presiding officer of the governing body of
  51-17  each city or town participating in the appraisal district, to the
  51-18  city manager of each city or town having a city manager, and to the
  51-19  city secretary or clerk, if there is one, of each city or town that
  51-20  does not have a city manager; and
  51-21              (3)  to the presiding officer of the governing body of
  51-22  each school district<, other than the county education district,>
  51-23  participating in the district and to the superintendent of each
  51-24  <those> school district <districts>.
  51-25        SECTION 16.  Sections 6.06(d) and (h), Tax Code, are amended
  51-26  to read as follows:
  51-27        (d)  Each taxing unit participating in the district<, other
   52-1  than a county education district,> is allocated a portion of the
   52-2  amount of the budget equal to the proportion that the total dollar
   52-3  amount of property taxes imposed in the district by the unit for
   52-4  the tax year in which the budget proposal is prepared bears to the
   52-5  sum of the total dollar amount of property taxes imposed in the
   52-6  district by each participating unit for that year.  <For a school
   52-7  district, other than a county education district, the total dollar
   52-8  amount of property taxes imposed in the district by the unit is
   52-9  considered to be the sum of the taxes imposed by the district and
  52-10  the revenue received by the district from the county education
  52-11  district.>  If a taxing unit participates in two or more districts,
  52-12  only the taxes imposed in a district are used to calculate the
  52-13  unit's cost allocations in that district.  If the number of real
  52-14  property parcels in a taxing unit is less than 5 percent of the
  52-15  total number of real property parcels in the district and the
  52-16  taxing unit imposes in excess of 25 percent of the total amount of
  52-17  the property taxes imposed in the district by all of the
  52-18  participating taxing units for a year, the unit's allocation may
  52-19  not exceed a percentage of the appraisal district's budget equal to
  52-20  three times the unit's percentage of the total number of real
  52-21  property parcels appraised by the district.
  52-22        (h)  If a newly formed taxing unit or a taxing unit that did
  52-23  not impose taxes in the preceding year<, other than a county
  52-24  education district,> imposes taxes in any tax year, that unit is
  52-25  allocated a portion of the amount budgeted to operate the district
  52-26  as if it had imposed taxes in the preceding year, except that the
  52-27  amount of taxes the unit imposes in the current year is used to
   53-1  calculate its allocation.  Before the amount of taxes to be imposed
   53-2  for the current year is known, the allocation may be based on an
   53-3  estimate to which the district board of directors and the governing
   53-4  body of the unit agree, and the payments made after that amount is
   53-5  known shall be adjusted to reflect the amount imposed.  The
   53-6  payments of a newly formed taxing unit that has no source of funds
   53-7  are postponed until the unit has received adequate tax or other
   53-8  revenues.
   53-9        SECTION 17.  Sections 11.13(d), (e), (m), and (n), Tax Code,
  53-10  are amended to read as follows:
  53-11        (d)  In addition to the exemptions provided by Subsections
  53-12  (b) and (c) of this section, an individual who is disabled or is 65
  53-13  or older is entitled to an exemption from taxation by a taxing unit
  53-14  of a portion (the amount of which is fixed as provided by
  53-15  Subsection (e) of this section) of the appraised value of his
  53-16  residence homestead if the exemption is adopted either:
  53-17              (1)  by the governing body of the taxing unit <other
  53-18  than a county education district>; or
  53-19              (2)  by a favorable vote of a majority of the qualified
  53-20  voters of the taxing unit at an election called by the governing
  53-21  body of the taxing unit <other than a county education district>,
  53-22  and the governing body shall call the election on the petition of
  53-23  at least 20 percent of the number of qualified voters who voted in
  53-24  the preceding election of the taxing unit<; or>
  53-25              <(3)  by a favorable vote of a majority of the
  53-26  qualified voters of a county education district at an election held
  53-27  under Section 20.950, Education Code>.
   54-1        (e)  The amount of an exemption adopted as provided by
   54-2  Subsection (d) of this section is $3,000 of the appraised value of
   54-3  the residence homestead unless a larger amount is specified by:
   54-4              (1)  the governing body authorizing the exemption if
   54-5  the exemption is authorized as provided by Subdivision (1) of
   54-6  Subsection (d) of this section; or
   54-7              (2)  the petition for the election if the exemption is
   54-8  authorized as provided by Subdivision (2) of Subsection (d) of this
   54-9  section<; or>
  54-10              <(3)  the proposition approved at an election held
  54-11  under Section 20.950, Education Code>.
  54-12        (m)  In this section:
  54-13              (1)  "Disabled" means under a disability for purposes
  54-14  of payment of disability insurance benefits under Federal Old-Age,
  54-15  Survivors, and Disability Insurance.
  54-16              (2)  "School district" means a political subdivision
  54-17  organized to provide or finance general elementary and secondary
  54-18  public education.  <"School district" includes a county education
  54-19  district established by the consolidation of the local school
  54-20  districts in its boundaries for the limited purpose of exercising a
  54-21  portion of the taxing power previously authorized by the voters in
  54-22  those school districts.>  "School district" does not include a
  54-23  junior college district or a political subdivision organized to
  54-24  provide special education services.
  54-25        (n)  In addition to any other exemptions provided by this
  54-26  section, an individual is entitled to an exemption from taxation by
  54-27  a taxing unit <other than a county education district> of a
   55-1  percentage of the appraised value of his residence homestead if the
   55-2  exemption is adopted by the governing body of the taxing unit
   55-3  before May 1 in the manner provided by law for official action by
   55-4  the body.  If the percentage set by the taxing unit produces an
   55-5  exemption in a tax year of less than $5,000 when applied to a
   55-6  particular residence homestead, the individual is entitled to an
   55-7  exemption of $5,000 of the appraised value.  The percentage adopted
   55-8  by the taxing unit may not exceed 20 percent.  <In addition to any
   55-9  other exemptions provided by this section, an individual is
  55-10  entitled to an exemption from taxation by a county education
  55-11  district of a percentage of the appraised value of his residence
  55-12  homestead if the exemption is adopted by the voters of the district
  55-13  at an election held in the district for that purpose under Section
  55-14  20.946, Education Code.  If the percentage set by the voters
  55-15  produces an exemption in a tax year of less than $5,000 when
  55-16  applied to a particular residence homestead, the individual is
  55-17  entitled to an exemption of $5,000 of the appraised value.  The
  55-18  percentage adopted by the voters may not exceed 20 percent.>
  55-19        SECTION 18.  Sections 11.14(c) and (e), Tax Code, are amended
  55-20  to read as follows:
  55-21        (c)  The governing body of a taxing unit<, other than a
  55-22  county education district,> by resolution or order, depending upon
  55-23  the method prescribed by law for official action by that governing
  55-24  body, may provide for taxation of tangible personal property
  55-25  exempted under Subsection (a).  <The voters of a county education
  55-26  district, by an election held under Section 20.951, Education Code,
  55-27  may provide for taxation of tangible personal property exempted
   56-1  under Subsection (a).>  If a taxing unit provides for taxation of
   56-2  tangible personal property as provided by this subsection, the
   56-3  exemption prescribed by Subsection (a) does not apply to that unit.
   56-4        (e)  A political subdivision <other than a county education
   56-5  district> choosing to tax property otherwise made exempt by this
   56-6  section, pursuant to Article VIII, Section 1(e), of the Texas
   56-7  Constitution, may not do so until the governing body of the
   56-8  political subdivision has held a public hearing on the matter,
   56-9  after having given notice of the hearing at the times and in the
  56-10  manner required by this subsection, and has found that the action
  56-11  will be in the public interest of all the residents of that
  56-12  political subdivision.  At the hearing, all interested persons are
  56-13  entitled to speak and present evidence for or against taxing the
  56-14  property.  Not later than the 30th day prior to the date of a
  56-15  hearing held under this subsection, notice of the hearing must be:
  56-16              (1)  published in a newspaper having general
  56-17  circulation in the political subdivision and in a section of the
  56-18  newspaper other than the advertisement section;
  56-19              (2)  not less than one-half of one page in size; and
  56-20              (3)  republished on not less than three separate days
  56-21  during the period beginning with the 10th day prior to the hearing
  56-22  and ending with the actual date of the hearing.
  56-23        SECTION 19.  Section 26.08(g), Tax Code, is amended to read
  56-24  as follows:
  56-25        (g)  If a school district is certified by the commissioner of
  56-26  education under Section 18.72 <16.251(c)>, Education Code, to have
  56-27  been subject to a reduction in total revenue for the school year
   57-1  ending on August 31 of the tax year:
   57-2              (1)  the district's effective maintenance and
   57-3  operations rate for the tax year is calculated as provided by
   57-4  Section 26.012, except that last year's levy is reduced by the
   57-5  amount of taxes imposed in the preceding year, if any, to offset
   57-6  the amount of any reduction certified by the commissioner of
   57-7  education under Section 18.72 <16.251(c)>, Education Code, for the
   57-8  school year ending on August 31 of the preceding year; and
   57-9              (2)  the district's rollback tax rate for the tax year
  57-10  calculated as provided by Section 26.04 or by Subsection (e) of
  57-11  this section, as applicable, is increased by the tax rate that, if
  57-12  applied to the current total value for the school district, would
  57-13  impose taxes in an amount equal to the amount of the reduction
  57-14  certified by the commissioner of education under Section 18.72
  57-15  <16.251(c)>, Education Code, for the school year ending on August
  57-16  31 of the tax year.
  57-17        SECTION 20.  (a)  Except as provided by Subsection (b) of
  57-18  this section, not later than the 15th day after this Act takes
  57-19  effect, the commissioners court of each county shall appoint a
  57-20  board of county school trustees as provided by Section 17.01(c),
  57-21  Education Code.
  57-22        (b)  This section does not apply to a county:
  57-23              (1)  in which a board of county school trustees has
  57-24  been elected under Chapter 17, Education Code; or
  57-25              (2)  to which a single school district has been
  57-26  assigned under Section 18.41, Education Code, as added by this Act.
  57-27        SECTION 21.  All county education districts are abolished.
   58-1        SECTION 22.  (a)  On the effective date of this Act, the
   58-2  funds and other assets of a county education district are
   58-3  transferred to its component school districts in proportion to the
   58-4  amount contributed by each component in the manner provided by rule
   58-5  of the commissioner of education.
   58-6        (b)  On the effective date of this Act, the contracts and
   58-7  other liabilities of a county education district are transferred to
   58-8  its component school districts in the manner provided by rule of
   58-9  the commissioner of education.
  58-10        (c)  Each component school district of a county education
  58-11  district may collect and use delinquent taxes imposed by the county
  58-12  education district on property within the component's boundaries in
  58-13  the manner provided by rule of the commissioner of education.
  58-14        (d)  The commissioner of education shall adopt rules for the
  58-15  maintenance of county education district records.
  58-16        (e)  The commissioner of education shall adopt rules required
  58-17  under this section.
  58-18        SECTION 23.  (a)  The following provisions of the Education
  58-19  Code are repealed:
  58-20              (1)  Sections 1.05, 18.04, and 18.05;
  58-21              (2)  Subchapter G, Chapter 20;
  58-22              (3)  Sections 16.008-16.011, 16.201-16.203, and 16.206;
  58-23  and
  58-24              (4)  Subchapters G, H, I, and J, Chapter 16.
  58-25        (b)  The following sections of the Tax Code are
  58-26  repealed:  6.061(f), 26.12(e), and 312.002(e) and (f).
  58-27        SECTION 24.  Effective September 1, 1995, the following
   59-1  sections of the Education Code are repealed:  16.151-16.155 and
   59-2  16.159.
   59-3        SECTION 25.  (a)  Except as provided by Subsection (b) of
   59-4  this section, this Act takes effect immediately.
   59-5        (b)  Sections 3 and 24 of this Act take effect as provided by
   59-6  those sections.
   59-7        SECTION 26.  The importance of this legislation and the
   59-8  crowded condition of the calendars in both houses create an
   59-9  emergency and an imperative public necessity that the
  59-10  constitutional rule requiring bills to be read on three several
  59-11  days in each house be suspended, and this rule is hereby suspended,
  59-12  and that this Act take effect and be in force according to its
  59-13  terms, and it is so enacted.