By Johnson                                             H.B. No. 749
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to public school finance.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION .  Chapter 16, Education Code, is amended to read as
    1-5  follows:
    1-6                CHAPTER 16.  FOUNDATION SCHOOL PROGRAM
    1-7                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-8        Sec. 16.001.  State Policy.  (a)  It is the policy of the
    1-9  State of Texas that the provision of public education is a state
   1-10  responsibility and that a thorough and efficient system be provided
   1-11  and substantially financed through state revenue sources so that
   1-12  each student enrolled in the public school system shall have access
   1-13  to programs and services that are appropriate to his or her
   1-14  educational needs and that are substantially equal to those
   1-15  available to any similar student, notwithstanding varying local
   1-16  economic factors.
   1-17        (b)  The public school finance system of the State of Texas
   1-18  shall adhere to a standard of neutrality which provides for
   1-19  substantially equal access to similar revenue per student at
   1-20  similar tax effort, considering all state and local tax revenues of
   1-21  districts after acknowledging all legitimate student and district
   1-22  cost differences.
   1-23        Sec. 16.002.  Purpose of Foundation School Program.  (a)  The
    2-1  purposes of the Foundation School Program set forth in this chapter
    2-2  are to guarantee that each school district in the state has:
    2-3              (1)  adequate resources to provide each eligible
    2-4  student a basic instructional program and facilities suitable to
    2-5  the student's educational needs; and
    2-6              (2)  access to a substantially equalized program of
    2-7  financing in excess of basic costs for certain services, as
    2-8  provided by this chapter.
    2-9        (b)  The Foundation School Program consists of two tiers to
   2-10  provide for the purposes specified by Subsection (a) of this
   2-11  section.  The first tier guarantees sufficient financing for all
   2-12  school districts to provide a basic program of education that meets
   2-13  accreditation and other legal standards.  The second tier provides
   2-14  a guaranteed yield system of financing to provide all school
   2-15  districts with substantially equal access to funds to provide an
   2-16  enriched program and additional funds for facilities.
   2-17        Sec. 16.003.  Student Eligibility.  (a)  A student is
   2-18  entitled to the benefits of the Foundation School Program if he is
   2-19  5 years of age or older and under 21 years of age at the beginning
   2-20  of the scholastic year and has not graduated from high school.
   2-21        (b)  A student to whom Subsection (a) of this section does
   2-22  not apply is entitled to the benefits of the Foundation School
   2-23  Program if the student is enrolled in a prekindergarten class under
   2-24  Section 21.136 of this code.
   2-25        (c)  The commissioner of education, in consultation with the
    3-1  Commissioner of Human Services, shall monitor and evaluate
    3-2  prekindergarten programs in the State of Texas as to their
    3-3  developmental appropriateness.  Furthermore, the commissioner of
    3-4  education, in consultation with the Commissioner of Human Services,
    3-5  shall evaluate the potential for coordination on a statewide basis
    3-6  of prekindergarten programs with government-funded early childhood
    3-7  care and education programs such as child care administered under
    3-8  Chapter 44 of the Human Resources Code and federal Head Start
    3-9  programs.  This evaluation shall utilize recommendations contained
   3-10  in the report to the 71st Legislature required by Chapter 717, Acts
   3-11  of the 70th Legislature, Regular Session, 1987.  For the purpose of
   3-12  providing cost-effective care for children during the full work day
   3-13  with developmentally appropriate curriculum, the commissioners
   3-14  shall investigate the use of existing child care program sites as
   3-15  prekindergarten sites.  Following the evaluation required by this
   3-16  section, the commissioners, in cooperation with school districts
   3-17  and other program administrators, shall integrate programs, staff,
   3-18  and program sites for prekindergarten, child care, and federal Head
   3-19  Start programs to the greatest extent possible.
   3-20        (d)  A child may be enrolled in the first grade if he is at
   3-21  least six years of age at the beginning of the scholastic year or
   3-22  has been enrolled in the first grade or has completed kindergarten
   3-23  in the public schools in another state prior to transferring to a
   3-24  Texas public school.
   3-25        Sec. 16.004.  ADMINISTRATIVE COSTS GUIDELINES.  The
    4-1  commissioner of education shall adopt guidelines for reasonable
    4-2  costs for the administration of foundation school programs by
    4-3  school districts.
    4-4        Sec. 16.005.  Administration of the Program.  The
    4-5  commissioner of education, in accordance with the rules of the
    4-6  State Board of Education, shall take such action and require such
    4-7  reports consistent with the terms of this chapter as may be
    4-8  necessary to implement and administer the Foundation School
    4-9  Program.
   4-10        Sec. 16.006.  Average Daily Attendance.  (a)  In this
   4-11  chapter, average daily attendance is determined by the daily
   4-12  attendance as averaged each month of the minimum school year as
   4-13  described under Section 16.052(a) of this code.
   4-14        (b)  A school district that experiences a decline of two
   4-15  percent or more in average daily attendance as a result of the
   4-16  closing or reduction in personnel of a military base shall be
   4-17  funded on the basis of the actual average daily attendance of the
   4-18  immediately preceding school year.
   4-19        (c)  The commissioner of education shall adjust the average
   4-20  daily attendance of school districts that have a significant
   4-21  percentage of students whose parent or guardian is a migrant
   4-22  worker.  For the purposes of this subsection, "migrant worker" has
   4-23  the meaning assigned by Section 21.5515 of this code.
   4-24        (d)  The commissioner may adjust the average daily attendance
   4-25  of a school district in which a disaster, flood, extreme weather
    5-1  condition, fuel curtailment, or other calamity has a significant
    5-2  effect on the district's attendance.
    5-3        Sec. 16.007.  Public Education Information Management System
    5-4  (PEIMS).  (a)  Each school district <and each county education
    5-5  district> shall participate in the Public Education Information
    5-6  Management System (PEIMS) and shall provide through that system
    5-7  information required for the administration of this chapter and of
    5-8  other appropriate provisions of this code.
    5-9        (b)  Each school district shall use a uniform accounting
   5-10  system adopted by the commissioner of education for the data
   5-11  required to be reported for the Public Education Information
   5-12  Management System.
   5-13        <(c)  The Central Education Agency shall report annually to
   5-14  the Legislative Education Board the financial status of each county
   5-15  education district.  The report shall include the total state and
   5-16  local education revenues for each tier of the Foundation School
   5-17  Program.>
   5-18        Sec. 16.008.  EQUALIZED FUNDING ELEMENTS.  (a)  The
   5-19  Legislative Education Board shall adopt rules, subject to
   5-20  appropriate notice and opportunity for public comment, for the
   5-21  calculation for each year of a biennium of the qualified funding
   5-22  elements under Section 16.256(e) of this code necessary to achieve
   5-23  the state policy under Section 16.001 of this code not later than
   5-24  the 1994-1995 school year and for each school year thereafter.
   5-25        (b)  Beginning in 1992, not later than October 1 preceding
    6-1  each regular session of the legislature, the board shall report the
    6-2  equalized funding elements to the foundation school fund budget
    6-3  committee, the commissioner of education, and the legislature.
    6-4        Sec. 16.009.  REVENUE LIMIT.  (a)  The revenue limit is an
    6-5  amount equal to 110 percent of the amount of state and local funds
    6-6  guaranteed under the Foundation School Program per student in
    6-7  weighted average daily attendance to each school district at a
    6-8  total tax rate of $1.25 <$0.25> per $100 of taxable value of
    6-9  property as calculated for the 1994-1995 school year.
   6-10        (b)  Not later than April 15, the commissioner of education
   6-11  shall estimate the revenue limit for each school district for the
   6-12  current school year and shall certify that amount to each school
   6-13  district.
   6-14        (c)  Not later than August 15 of each year the commissioner
   6-15  of education shall determine as nearly as possible for the current
   6-16  school year:
   6-17              (1)  the total amount of state and local funds per
   6-18  student in weighted average daily attendance available in each
   6-19  school district; and
   6-20              (2)  the total amount of state and local funds per
   6-21  student in weighted average daily attendance required for debt
   6-22  service in each school district.
   6-23        (d)  The commissioner shall determine the total number of
   6-24  students in weighted average daily attendance in school districts
   6-25  in which the amount specified in Subsection (c)(1) of this section,
    7-1  less the amount specified in Subsection (c)(2) of this section,
    7-2  exceeds the revenue limit.
    7-3        (e)  If the total number of students in weighted average
    7-4  daily attendance in districts with state and local revenues
    7-5  exceeding the revenue limit equals or exceeds two percent of the
    7-6  total number of students in weighted average daily attendance for
    7-7  the current school year, no school district may levy a tax at a
    7-8  rate that would result in an amount of state and local funds,
    7-9  excluding funds required for debt service, during the next school
   7-10  year that exceeds the revenue limit, except that those districts
   7-11  exceeding the revenue limit may maintain during the next school
   7-12  year the total amount of state and local funds per student in
   7-13  weighted average daily attendance for the current school year.  The
   7-14  commissioner shall notify those districts in which revenues are
   7-15  subject to the limitation imposed in this subsection.
   7-16        (f)  In this section:
   7-17              (1)  "Weighted student in average daily attendance" has
   7-18  the meaning assigned in Section 16.302 of this code.
   7-19              (2)  "Taxable value of property" has the meaning
   7-20  assigned in Section 11.86 of this code.
   7-21        Sec. 16.010.  TEMPORARY FUNDING ELEMENTS.
   7-22  (a)  Notwithstanding any provision of this code to the contrary,
   7-23  for each of the 1993-1994 and 1994-1995 school years:
   7-24              (1)  the basic allotment under Section 16.101 of this
   7-25  code is $2,400 or a greater amount provided by appropriation;
    8-1              (2)  the transportation allotment under Section 16.156
    8-2  of this code is the allotment provided by appropriation for the
    8-3  1992-1993 school year;
    8-4              (3)  the technology allotment under Sections 16.160 and
    8-5  14.063 of this code is $30;
    8-6              (4)  for the purposes of the local fund assignment,
    8-7  "TR" under Section 16.252 of this code is $0.82; and
    8-8              (5)  for the purposes of the guaranteed yield
    8-9  allotment, "GL" under Section 16.302 of this code is $22.50.
   8-10        (b)  This section expires September 1, 1995.
   8-11        Sec. 16.011.  FUNDING FOR THE 1993-1994 AND 1994-1995 SCHOOL
   8-12  YEARS.  (a)  Notwithstanding other provisions of this chapter, the
   8-13  amount of state funds to which a district is entitled under the
   8-14  Foundation School Program for the 1993-1994 and 1994-1995 school
   8-15  years is governed by the provisions of this section.
   8-16        (b)  Except as provided by Subsection (c) of this section,
   8-17  the maximum amount of total state and local funds per weighted
   8-18  student guaranteed to each school district under the Foundation
   8-19  School Program for a school year to which this section applies is
   8-20  the sum of:
   8-21              (1)  the amount of the district's total state and local
   8-22  funds per weighted student for the 1992-1993 school year, less the
   8-23  amount per weighted student paid by the district for debt service
   8-24  for that school year; and
   8-25              (2)  the amount per weighted student due in the current
    9-1  school year for the district's debt service.
    9-2        (c)  If a district's taxable value of property per weighted
    9-3  student is less than the average taxable value of property per
    9-4  weighted student for all school districts in the state, the maximum
    9-5  amount per weighted student guaranteed to the district under the
    9-6  Foundation School Program is increased by an amount determined by
    9-7  the following formula:
    9-8  where:
    9-9        "SPR" is the amount per weighted student guaranteed to the
   9-10  district in addition to the amount provided by Subsection (b) of
   9-11  this section;
   9-12        "T" is the portion of the district's tax rate that exceeds
   9-13  the sum of the rates described by Subdivisions (1) and (2) of
   9-14  Subsection (d) of this section, up to $0.05;
   9-15        "DPV" is the district's taxable value of property; and
   9-16        "SPV" is the statewide taxable value of property.
   9-17        (d)  To qualify for the maximum amount per weighted student
   9-18  guaranteed to a school district under this section, the district
   9-19  must levy an ad valorem tax rate equal to the sum of:
   9-20              (1)  the greater of the maximum maintenance rate
   9-21  provided by statute that may be imposed by a school district and
   9-22  the rate that results in a district levy that, when reduced by the
   9-23  amount of debt service due in the current school year, bears the
   9-24  same proportion to the district's taxable value of property that
   9-25  the district's levy for the 1992-1993 school year less the amount
   10-1  paid by the district for debt service bore to its taxable value of
   10-2  property for that school year;
   10-3              (2)  the rate that results for the district in a total
   10-4  amount of local funds and state funds under Subchapter H of this
   10-5  chapter equal to the amount provided under Subsection (b)(2) of
   10-6  this section; and
   10-7              (3)  a rate that when applied to the quotient of the
   10-8  statewide taxable value of property divided by 100 results in an
   10-9  amount equal to the difference between:
  10-10                    (A)  the total amount guaranteed to school
  10-11  districts under Subsections (b) and (c) of this section less the
  10-12  sum of the amounts that result from applying the rate determined
  10-13  for each district under Subdivisions (1) and (2) of this subsection
  10-14  in each district; and
  10-15                    (B)  the amount appropriated from the Foundation
  10-16  School Program for distribution to school districts under this
  10-17  section for the appropriate school year.
  10-18        (e)  To qualify for the total amount guaranteed by Subsection
  10-19  (b)(1) of this section a school district must levy an amount of ad
  10-20  valorem taxes that is not less than the levy that results from
  10-21  applying a rate equal to the sum of Subdivisions (1) and (2) of
  10-22  Subsection (d) of this section.  If the district levies a lesser
  10-23  amount, the amount guaranteed to the district under Subsection
  10-24  (b)(1) of this section is reduced by multiplying that amount by a
  10-25  fraction, the numerator of which is the district's actual levy and
   11-1  the denominator of which is the levy required to qualify for the
   11-2  total amount guaranteed under Subsection (b)(1) of this section.
   11-3        (f)  The amount to be distributed to each school district
   11-4  from the Foundation School Fund under this section is equal to the
   11-5  difference between:
   11-6              (1)  the amount guaranteed to the district under this
   11-7  section less the amount distributed to the district from the
   11-8  available school fund; and
   11-9              (2)  the amount that results from applying the rate
  11-10  determined under Subsection (d) of this section in the district.
  11-11        (g)  In this section, the levy that results in a district is
  11-12  determined by applying a rate to the quotient of the district's
  11-13  taxable value of property divided by 100.
  11-14        (h)  A district may apply to the commissioner of education to
  11-15  substitute its operation expenditures per weighted student for its
  11-16  revenue under Subsection (b)(1) of this section.  The commissioner
  11-17  may grant the application if the commissioner finds that the
  11-18  revenue is not representative of the district's expenditures,
  11-19  excluding expenditures for the financing of bonds issued by the
  11-20  district.
  11-21        (i)  In this section:
  11-22              (1)  "Debt service" means payments of principal and
  11-23  interest on bonded indebtedness.
  11-24              (2)  "Local funds" means local ad valorem tax revenue.
  11-25              (3)  "State funds" excludes funds for the provision of
   12-1  free textbooks, contributions to a retirement system, or amounts
   12-2  set aside or charged to school districts by statute or
   12-3  appropriation for studies, testing, special projects, or other
   12-4  special purposes.
   12-5              (4)  "Taxable value of property" means the value
   12-6  determined under Section 11.86 of this code.
   12-7              (5)  "Weighted student" has the meaning assigned to
   12-8  weighted student in average daily attendance by Section 16.302 of
   12-9  this code.
  12-10        Sec. 16.012.  EDUCATION MANDATE REVIEW COMMISSION
  12-11        (a)  CREATION.  The Texas Education Mandate Review Commission
  12-12  is created.
  12-13        (b)  DUTIES.  The commission shall study the benefits,
  12-14  effects, and costs, to school districts and to the state, of
  12-15  state-imposed statutory and administrative requirements that apply
  12-16  to school districts in Texas.  After completing the study the
  12-17  commission shall propose legislation to:
  12-18              (1)  eliminate or modify requirements that are
  12-19  unbeneficial, or that produce benefits that are small relative to
  12-20  their costs;
  12-21              (2)  specify simple procedures for the grant of waivers
  12-22  from specific requirements under special circumstances; and
  12-23              (3)  discourage or prohibit the granting of waivers
  12-24  from requirements that are cost effective and essential to
  12-25  educational quality.
   13-1        (c)  COMPOSITION.  (1)  The commission is composed of 15
   13-2  members, 7 of whom are appointed by the governor, four of whom are
   13-3  appointed by the lieutenant governor and who may be members of the
   13-4  senate, and four of whom are appointed by the speaker of the house
   13-5  of representatives and who may be members of the house of
   13-6  representatives.  In making appointments under this section, the
   13-7  governor shall attempt to ensure participation by minorities on the
   13-8  commission, including females, African-Americans,
   13-9  Hispanic-Americans, Native Americans, and Asian Americans.  Each
  13-10  member serves at the pleasure of the official by whom the member is
  13-11  appointed.
  13-12        (2)  All members of the commission shall be generally
  13-13  experienced in education matters.  In addition, there shall be at
  13-14  least two members of the commission who are either experienced in
  13-15  each of the following categories or who are representatives of
  13-16  groups whose membership is composed of persons in the following
  13-17  categories:
  13-18              (A)  as a public school teacher;
  13-19              (B)  as a public school administrator;
  13-20              (C)  as a member of a parents' organization;
  13-21              (D)  as a school board member.
  13-22        (3)  The governor shall designate one member of the
  13-23  commission as chairman of the commission, and the member serves as
  13-24  chairman at the pleasure of the governor.
  13-25        (d)  REIMBURSEMENT.  Members of the commission are not
   14-1  entitled to compensation but are entitled to reimbursement for
   14-2  actual and necessary expenses incurred in performing their official
   14-3  duties.
   14-4        (e)  STAFF; CONTRACTS.  The commission may employ staff as
   14-5  necessary for data collection, analysis, and research and other
   14-6  support services and may contract for those services with agencies
   14-7  of the state or private consultants.
   14-8        (f)  SUBMISSION.  The commission shall submit the proposed
   14-9  legislation described by Section 2 of this article to the governor,
  14-10  the commissioner of education and the Legislative Education Board
  14-11  not later than June 1, 1994.
  14-12        (g)  EXPIRATION.  The commission is abolished and this
  14-13  article expires on June 1, 1995.  <DEFINITION.  In this chapter,
  14-14  "school district" does not include a county education district
  14-15  unless expressly included.>
  14-16        <Sec. 16.011.  NOTICE OF YIELDS TO BE PUBLISHED.  (a)  Not
  14-17  earlier than the 30th day or later than the seventh day before the
  14-18  date of adopting a tax rate for the years 1991, 1992, 1993, and
  14-19  1994, a school district shall publish the following notice, using
  14-20  the yields and tax rates certified by the commissioner:>
  14-21             <"NOTICE OF COMPARABLE TAX RATES AND REVENUES>
  14-22        <"The legislature has enacted a statute on school funding to
  14-23  comply with a court mandate enforcing the state constitution.
  14-24  Under prior statutes, the tax rate for last year provides ___ per
  14-25  student in state and local revenues.  Under this statute, that same
   15-1  rate now provides ___ per student in state and local revenues.>
   15-2        <"State law only requires a minimum tax rate of ____ for
   15-3  county education districts.  State law does not require a school
   15-4  district to adopt additional taxes.  Neither does state law require
   15-5  a school district to adopt a tax rate that maximizes the receipt of
   15-6  state funds.>
   15-7        <"The board of trustees of the ______ School District hereby
   15-8  gives notice that it is considering the adoption of a tax rate of
   15-9  ____ that will provide ____ per student in state and local
  15-10  revenues.">
  15-11        <(b)  If a district is required to give public notice of a
  15-12  hearing under Section 26.06, Tax Code, the notice described by
  15-13  Subsection (a) of this section may be included in the required
  15-14  notice under Section 26.06, Tax Code.>
  15-15        <(c)  The notice described by Subsection (a) of this section
  15-16  shall be published in the two newspapers with the largest
  15-17  circulation within the school district unless only one newspaper is
  15-18  in general circulation within the district.  The notice may not be
  15-19  smaller than one-quarter page of a standard-size or a tabloid-size
  15-20  newspaper, and the headline must be 18-point or larger type.>
  15-21        <(d)  The notice described by Subsection (a) of this section
  15-22  must also be included in the tax bill or a separate statement
  15-23  accompanying the tax bill.>
  15-24        <(e)  The commissioner shall adopt rules to implement this
  15-25  section.>
   16-1        <(f)  This section expires January 1, 1995.>
   16-2     SUBCHAPTER B.  REQUIREMENTS FOR DISTRICT PARTICIPATION IN THE
   16-3                    FOUNDATION SCHOOL PROGRAM FUND
   16-4        Sec. 16.051.  Required Compliance.  In order to receive
   16-5  financial support from the Foundation School Fund, a school
   16-6  district must comply with the standards set forth in this
   16-7  subchapter.
   16-8        Sec. 16.052.  OPERATION OF SCHOOLS; TEACHER PREPARATION AND
   16-9  STAFF DEVELOPMENT.  (a)  Each school district must provide for not
  16-10  less than 180 days of instruction for students and not less than
  16-11  three days of preparation for teachers for each school year, except
  16-12  as provided in Subsection (c) of this section.
  16-13        (b)  Each school district must provide for not less than 20
  16-14  hours of staff development training under guidelines provided by
  16-15  the commissioner of education.  The training provided must include
  16-16  technology training and must occur during regular hours of required
  16-17  teacher service.  On the request of a teacher, a school district
  16-18  may credit the teacher compensatory time to be applied toward the
  16-19  number of training hours required under this subsection for
  16-20  workshops, conferences, or other professional training that the
  16-21  teacher has attended.
  16-22        (c)  The commissioner of education may approve the operation
  16-23  of schools for less than the number of days of instruction and
  16-24  teacher preparation otherwise required when disasters, floods,
  16-25  extreme weather conditions, fuel curtailments, or other calamities
   17-1  have caused the closing of the school.
   17-2        (d)  Each school district may reserve three hours of the
   17-3  first preparation day provided each school year under Subsection
   17-4  (a) of this section for faculty staff meetings.
   17-5        Sec. 16.053.  ACCREDITATION.  Each school district must be
   17-6  accredited by the Central Education Agency.
   17-7        Sec. 16.054.  Student/Teacher Ratios; Class Size.
   17-8  (a)  Except as provided by Subsection (b) of this section, each
   17-9  school district must employ a sufficient number of certified
  17-10  teachers to maintain an average ratio of not less than one teacher
  17-11  for each 20 students in average daily attendance.
  17-12        (b)  A school district may not enroll more than 22 students
  17-13  in a kindergarten, first, second, third, or fourth grade class.
  17-14  This requirement shall not apply during the last 12 weeks of any
  17-15  school year.
  17-16        (c)  In determining the number of students to enroll in any
  17-17  class, a district shall consider the subject to be taught, the
  17-18  teaching methodology to be used, and any need for individual
  17-19  instruction.
  17-20        (d)  On application of a school district, the commissioner
  17-21  may except the district from the limits in Subsection (b) of this
  17-22  section if the commissioner finds the limits work an undue hardship
  17-23  on the district.  An exception expires at the end of the semester
  17-24  for which it is granted, and the commissioner may not grant an
  17-25  exception for more than one semester at a time.
   18-1        (e)  The commissioner shall report to the legislature each
   18-2  biennium regarding compliance with this section.  The report must
   18-3  include:
   18-4              (1)  a statement of the number of school districts
   18-5  granted an exception under Subsection (d) of this section; and
   18-6              (2)  an estimate of the total cost incurred by school
   18-7  districts in that biennium in complying with this section.
   18-8        Sec. 16.055.  Compensation of Professional and
   18-9  Paraprofessional Personnel.  (a)  A school district must pay each
  18-10  employee who is qualified for and employed in a position classified
  18-11  under the Texas Public Education Compensation Plan set forth in
  18-12  Section 16.056 of this chapter not less than the minimum monthly
  18-13  base salary, plus increments for teaching experience, specified for
  18-14  the position.
  18-15        (b)  Contracts for personnel shall be made on the basis of a
  18-16  minimum of 10 months' service, which must include the number of
  18-17  days of instruction for students and days of preparation for
  18-18  personnel required by Section 16.052 of this code.  The days of
  18-19  preparation required herein shall be conducted by local boards of
  18-20  education under rules and regulations established by the State
  18-21  Board of Education that are consistent with the state accreditation
  18-22  standards for program planning, preparation, and improvement.
  18-23  Personnel employed for more than 10 months shall be paid not less
  18-24  than the minimum monthly base pay plus increments for experience
  18-25  for each month of actual employment.  Personnel employed for 11
   19-1  months at pay grades 1-11 must render 202 days of service, and
   19-2  personnel employed for 12 months at pay grades 1-11 must render 220
   19-3  days of service.  Personnel employed for 11 months at pay grades
   19-4  12-18 must render 207 days of service, and personnel employed for
   19-5  12 months at pay grades 12-18 must render 226 days of service.
   19-6  However, the number of days of service required by this subsection
   19-7  may be reduced by the commissioner under Section 16.052(c) of this
   19-8  code, and the reduction shall not reduce the total salaries of
   19-9  personnel.
  19-10        (c)  Notwithstanding Subsection (b) of this section, a
  19-11  vocational agriculture teacher employed for 12 months shall render
  19-12  226 days of service regardless of pay grade.
  19-13        Sec. 16.056.  Texas Public Education Compensation Plan.
  19-14  (a)  School district personnel who are qualified for and employed
  19-15  in positions described in Subsection (d) of this section shall be
  19-16  paid not less than the monthly base salary, plus increments for
  19-17  teaching experience, set forth in Subsection (c) of this section,
  19-18  or greater amounts provided by appropriation.
  19-19        (b)  Each individual shall advance one step per each year of
  19-20  experience until step 10 is reached.  For each year, up to a
  19-21  maximum of two years, of work experience required for certification
  19-22  in a vocational field, a vocational teacher who is certified in
  19-23  that field is entitled to salary step credit as if the work
  19-24  experience were teaching experience.
  19-25        (c)  SALARY SCHEDULE BY STEPS
   20-1     0    1    2    3    4    5    6    7    8     9    10
   20-2   1700 1814 1928 2042 2156 2270 2384 2498 2612  2726  2840
   20-3        (d)  The following positions are entitled to the minimum
   20-4  monthly salary set by Subsection (c) of this section for the number
   20-5  of annual contract months specified:
   20-6          No.                                 Class Title
   20-7       Months Paid
   20-8         10                               Nurse, R.N. and/or
   20-9                                            Bachelor's Degree
  20-10         10                               Special Education Related
  20-11                                            Service Personnel (other
  20-12                                            than Occupational or
  20-13                                            Physical Therapist),
  20-14                                            Bachelor's Degree
  20-15         10                               Teacher, Bachelor's Degree
  20-16         10                               Vocational Teacher,
  20-17         11                               Bachelor's Degree and/or
  20-18         12                               Certified in Field
  20-19         10                               Librarian I, Bachelor's
  20-20                                            Degree
  20-21         10                               Visiting Teacher I,
  20-22                                            Psychological Associate,
  20-23                                            Bachelor's Degree
  20-24         10                               Special Education Related
  20-25                                            Service Personnel (other
   21-1                                            than Occupational or
   21-2                                            Physical Therapist),
   21-3                                            Master's Degree
   21-4         10                               Teacher, Master's Degree
   21-5         10                               Vocational Teacher,
   21-6         11                               Master's Degree
   21-7         12
   21-8         10                               Librarian II, Master's
   21-9                                            Degree
  21-10         10                               Physician, M.D.
  21-11         10                               Teacher, Bachelor of Laws
  21-12                                            or Doctor of Jurispru-
  21-13                                            dence Degree
  21-14         10                               Teacher, Doctor's Degree
  21-15         10                               Special Duty Teacher,
  21-16                                            Master's Degree
  21-17         10                               Occupational Therapist
  21-18         10                               Physical Therapist
  21-19         10                               Educational Diagnostician
  21-20         10                               Visiting Teacher II,
  21-21                                            Master's Degree
  21-22         10                               Counselor I, Psychologist
  21-23         10                               School Social Worker
  21-24         10                               Supervisor I
  21-25         10                               Part-time Principal--11 or
   22-1                                            fewer teachers on campus
   22-2         10                               Instructional/Administra-
   22-3                                            tive Officer I
   22-4         10                               Assistant Principal--20 or
   22-5                                            more teachers on campus
   22-6         10                               Instructional/Administra-
   22-7                                            tive Officer II
   22-8         11                               Principal--19 or fewer
   22-9                                            teachers on campus
  22-10         10                               Instructional/Administra-
  22-11                                            tive Officer III
  22-12         11                               Principal--20-49 teachers
  22-13                                            on campus
  22-14         11                               Instructional/Administra-
  22-15                                            tive Officer IV
  22-16         11                               Principal--50-99 teachers
  22-17                                            on campus
  22-18         12                               Principal--100 or more
  22-19                                            teachers on campus
  22-20         12                               Instructional/Administra-
  22-21                                            tive Officer V
  22-22         12                               Instructional/Administra-
  22-23                                            tive Officer VI
  22-24         12                               Superintendent--District
  22-25                                            with 3,000
   23-1                                            or less ADA
   23-2         12                               Instructional/Administra-
   23-3                                            tive Officer VII
   23-4         12                               Superintendent--District
   23-5                                            with 3,001-12,500 ADA
   23-6         12                               Instructional/Administra-
   23-7                                            tive Officer VIII
   23-8         12                               Superintendent--District
   23-9                                            with 12,501-50,000 ADA
  23-10         12                               Superintendent--District
  23-11                                            with 50,000 or more ADA
  23-12        (e)  With the approval of the State Board of Education, the
  23-13  commissioner of education may add additional positions and months
  23-14  of service to the Texas Public Education Compensation Plan to
  23-15  reflect curriculum and program changes authorized by law.  With the
  23-16  approval of the board, the commissioner shall also develop policies
  23-17  for the implementation and administration of the compensation plan.
  23-18        (f)  Each person employed in the public schools of this state
  23-19  who is an educational aide, teacher trainee, or nondegree teacher
  23-20  or who is assigned to a position classified under the Texas Public
  23-21  Education Compensation Plan must be certified according to the
  23-22  certification requirements or standards for each position as
  23-23  established by rule adopted by the State Board of Education.
  23-24  However, additional certification may not be required of a person
  23-25  holding a valid state license as a speech language pathologist or
   24-1  audiologist.  Persons other than those holding such a license may
   24-2  only be employed to render such services if an acceptable licensed
   24-3  applicant is not available.
   24-4        (g)  The State Board of Education shall prescribe the general
   24-5  duties and required preparation and education for educational
   24-6  aides, teacher trainees, and nondegree teachers and for the
   24-7  positions listed in Subsection (d) of this section under the
   24-8  circumstances described therein.
   24-9        (h)  In determining the placement of a teacher on the salary
  24-10  schedule under Subsection (c) of this section, a district shall
  24-11  credit the teacher for each year of experience, whether or not the
  24-12  years are consecutive.  Notwithstanding the provision of this
  24-13  subsection, no teacher shall be placed on the salary schedule at a
  24-14  step above the step where the teacher would have been placed had
  24-15  that teacher remained in continuous service.
  24-16        Sec. 16.057.  Career Ladder Salary Supplement.  (a)  Except
  24-17  as provided by Subsection (c) of this section, each teacher on
  24-18  level two, three, or four of a career ladder is entitled to the
  24-19  following annual supplement in addition to the minimum salary set
  24-20  by this subchapter:
  24-21                     Level 2 . . . . . . . $2,000
  24-22                     Level 3 . . . . . . . $4,000
  24-23                     Level 4 . . . . . . . $6,000
  24-24        (b)  If the district pays more than the state minimum salary
  24-25  prescribed by this subchapter, the teacher is entitled to the
   25-1  career ladder supplement in addition to the amount otherwise paid
   25-2  by the district for the teacher's step.
   25-3        (c)  If the allotment under Section 16.158 of this code that
   25-4  is designated for support of the career ladder will not fully fund
   25-5  the supplements under this section:
   25-6              (1)  the district may reduce the supplements to not
   25-7  less than the following:
   25-8                     Level 2 . . . . . . . $1,500
   25-9                     Level 3 . . . . . . . $3,000
  25-10                     Level 4 . . . . . . . $4,500
  25-11  or;
  25-12              (2)  provide for stricter performance criteria than
  25-13  that provided under Section 13.302 of this code, subject to the
  25-14  approval of the State Board of Education; or
  25-15              (3)  take action under both Subdivisions (1) and (2) of
  25-16  this subsection.
  25-17                   SUBCHAPTER C.  BASIC ENTITLEMENT
  25-18        Sec. 16.101.  Basic Allotment.  For each student in average
  25-19  daily attendance, not including the time students spend each day in
  25-20  special education or vocational education programs for which an
  25-21  additional allotment is made under Subchapter D of this chapter, a
  25-22  district is entitled to an allotment of <$2,200 for the 1991-1992
  25-23  school year,> $2,400 <for the 1992-1993 school year, $2,600 for the
  25-24  1993-1994 school year(,) and $2,800 for the 1994-1995 school year
  25-25  and thereafter> or a greater amount adopted by the foundation
   26-1  school fund budget committee under Section 16.256 of this code <for
   26-2  the 1993-1994 school year and each school year thereafter>.  A
   26-3  greater amount for any school year may be provided by
   26-4  appropriation.
   26-5        Sec. 16.102.  Cost of Education Adjustment.  (a)  The basic
   26-6  allotment for each district is adjusted to reflect the geographic
   26-7  variation in known resource costs and costs of education due to
   26-8  factors beyond the control of the school district.  Except as
   26-9  provided by this section, the adjustment is that provided under
  26-10  Section 16.202 <16.206> of this code.
  26-11        (b)  The adjustment for the 1993-1994 and 1994-1995
  26-12  <1991-1992 and 1992-1993> school years is the cost of education
  26-13  index and formula adopted in December 1990 by the foundation school
  26-14  fund budget committee.  For the 1993-1994 and 1994-1995 <1991-1992
  26-15  and 1992-1993> school years, the commissioner of education shall
  26-16  recalculate the cost of education index for school districts that
  26-17  are eligible for the adjustment under Section 16.103 of this code,
  26-18  excluding from the computation the calculation for the diseconomies
  26-19  of scale component and substituting a value of 1.00.  This
  26-20  subsection expires September 1, 1995 <1993>.
  26-21        Sec. 16.103.  SMALL DISTRICT ADJUSTMENT.  (a)  The basic
  26-22  allotment for certain small districts is adjusted in accordance
  26-23  with Subsections (b) and (c) of this section.  In this section:
  26-24              (1)  "AA" is the district's adjusted allotment per
  26-25  student;
   27-1              (2)  "ADA" is the number of students in average daily
   27-2  attendance for which the district is entitled to an allotment under
   27-3  Section 16.101 of this code; and
   27-4              (3)  "ABA" is the adjusted basic allotment determined
   27-5  under Section 16.102 of this code.
   27-6        (b)  The basic allotment <average daily attendance> of a
   27-7  school district that contains at least 300 square miles and has not
   27-8  more than 1,600 students in average daily attendance is adjusted by
   27-9  applying the formula:
  27-10        (c)  The basic allotment <average daily attendance> of a
  27-11  school district that contains less than 300 square miles and has
  27-12  not more than 1,600 students in average daily attendance is
  27-13  adjusted by applying the formula:
  27-14        (e)  This section expires September 1, 1995 <1993>.
  27-15        Sec. 16.1031.  USE OF SMALL DISTRICT ADJUSTMENT IN
  27-16  CALCULATING SPECIAL ALLOTMENTS.  In determining the amount of a
  27-17  special allotment under Subchapter D of this chapter for a district
  27-18  to which Section 16.103 of this code applies, a district's adjusted
  27-19  basic allotment is considered to be the district's adjusted
  27-20  allotment determined under Section 16.103.  This section expires
  27-21  September 1, 1995 <1993>.
  27-22        Sec. 16.104.  Sparsity Adjustment.  Notwithstanding Sections
  27-23  16.101, 16.102, and 16.103 of this code, a school district that has
  27-24  fewer than 130 students in average daily attendance shall be
  27-25  provided an adjusted basic allotment on the basis of 130 average
   28-1  daily attendance if it offers a kindergarten through grade 12
   28-2  program and has prior or current year's average daily attendance of
   28-3  at least 90 students or is 30 miles or more by bus route from the
   28-4  nearest high school district.  A district offering a kindergarten
   28-5  through grade 8 program whose prior or current year's average daily
   28-6  attendance was at least 50 students or which is 30 miles or more by
   28-7  bus route from the nearest high school district shall be provided
   28-8  an adjusted basic allotment on the basis of 75 average daily
   28-9  attendance.  An average daily attendance of 60 students shall be
  28-10  the basis of providing the adjusted basic allotment if a district
  28-11  offers a kindergarten through grade 6 program and has prior or
  28-12  current year's average daily attendance of at least 40 students or
  28-13  is 30 miles or more by bus route from the nearest high school
  28-14  district.  This section expires September 1, 1995 <1993>.
  28-15                   SUBCHAPTER D.  SPECIAL ALLOTMENTS
  28-16        Sec. 16.151.  Special Education.  (a)  For each full-time
  28-17  equivalent student in average daily attendance in a special
  28-18  education program under Subchapter N, Chapter 21, of this code, a
  28-19  district is entitled to an annual allotment equal to the adjusted
  28-20  basic allotment multiplied by a weight determined according to
  28-21  instructional arrangement as follows:
  28-22              Homebound  . . . . . . . . . . . . . . .  5.0
  28-23              Hospital class . . . . . . . . . . . . .  5.0
  28-24              Speech therapy . . . . . . . . . . . . . 7.11
  28-25              Resource room  . . . . . . . . . . . . .  2.7
   29-1              Self-contained, mild and moderate,
   29-2                  regular campus . . . . . . . . . . .  2.3
   29-3              Self-contained, severe, regular
   29-4                  campus . . . . . . . . . . . . . . .  3.5
   29-5              Self-contained, separate campus  . . . .  2.7
   29-6              Multidistrict class  . . . . . . . . . .  3.5
   29-7              Nonpublic day school . . . . . . . . . .  3.5
   29-8              Vocational adjustment class  . . . . . .  2.3
   29-9              Community class  . . . . . . . . . . . .  3.5
  29-10              Mainstream . . . . . . . . . . .  1.25 <0.25>
  29-11        (b)  A special instructional arrangement for handicapped
  29-12  students residing in care and treatment facilities, other than
  29-13  state schools, whose parents or guardians do not reside in the
  29-14  district providing education services shall be established under
  29-15  the rules of the State Board of Education.  The funding weight for
  29-16  this arrangement shall be 5.0 for those students who receive their
  29-17  education service on a local school district campus.  A special
  29-18  instructional arrangement for handicapped students residing in
  29-19  state schools shall be established under the rules of the State
  29-20  Board of Education with a funding weight of 5.0.
  29-21        (e)  The State Board of Education by rule shall prescribe the
  29-22  qualifications an instructional arrangement must meet in order to
  29-23  be funded as a particular instructional arrangement under this
  29-24  section.
  29-25        (f)  In this section, "full-time equivalent student" means 30
   30-1  hours of contact a week between a special education student and
   30-2  special education program personnel.
   30-3        (g)  The State Board of Education shall adopt rules and
   30-4  procedures governing contracts for residential placement of special
   30-5  education students.  The legislature shall provide by appropriation
   30-6  for the state's share of the costs of those placements.
   30-7        (h)  Funds allocated under this section, other than an
   30-8  indirect cost allotment established under State Board of Education
   30-9  rule, must be used in the special education program under
  30-10  Subchapter N, Chapter 21, of this code.
  30-11        (i)  In the determination of instructional arrangements  for
  30-12  students in residential instructional arrangements, the State Board
  30-13  of Education shall develop arrangements that encourage placement of
  30-14  students in the least restrictive environment appropriate for their
  30-15  educational needs.
  30-16        (j)  The Central Education Agency shall encourage the
  30-17  placement of students in special education programs in the least
  30-18  restrictive environment appropriate for their educational needs.
  30-19  The Central Education Agency shall provide transitional support for
  30-20  the movement of students from self-contained severe (totally
  30-21  self-contained) to self-contained mild and moderate (partially
  30-22  self-contained) instructional arrangements.  For each student
  30-23  placed in a partially self-contained classroom who was placed in a
  30-24  totally self-contained classroom for at least two-thirds of the
  30-25  prior year, a district will receive $2,500.  This payment must be
   31-1  used to facilitate the placement of the student in the less
   31-2  restrictive environment (partially self-contained classroom).  A
   31-3  district may not receive more than one support payment for any
   31-4  individual student.  This support payment shall be forfeited by the
   31-5  district if the student is returned to the totally self-contained
   31-6  classroom instructional arrangement within one month of placement
   31-7  into the partially self-contained classroom or within one year of
   31-8  initial reclassification without adequate justification.
   31-9        (k)  A school district that maintains for two successive
  31-10  years a ratio of full-time equivalent students placed in totally
  31-11  self-contained classrooms to the number of full-time equivalent
  31-12  students placed in partially self-contained classrooms that is 25
  31-13  percent higher than the statewide average ratio shall be reviewed
  31-14  by the Central Education Agency to determine the appropriateness of
  31-15  student placement.  To the extent that there are net cost savings
  31-16  to the state resulting from the movement of students from totally
  31-17  self-contained to partially self-contained, as provided in
  31-18  Subsection (j) of this section, those net savings will be directed
  31-19  to regional education service centers to provide technical
  31-20  assistance in accordance with Section 11.33(c) of this code
  31-21  regarding the movement of students to less restrictive environments
  31-22  to those school districts whose ratio of full-time equivalent
  31-23  students placed in totally self-contained classrooms is 25 percent
  31-24  higher than the statewide average.
  31-25        (l)  A student in a mainstream instructional arrangement who
   32-1  is not also in another instructional arrangement as provided in
   32-2  Subsection (a) of this section is provided the support necessary
   32-3  for the student to remain in the regular classroom.  This support
   32-4  may include related services as defined in Section 21.502 of this
   32-5  code, special teaching, or other special education support services
   32-6  while in the regular classroom.
   32-7        Sec. 16.152.  Compensatory Education Allotment.  (a)  For
   32-8  each student who is educationally disadvantaged or who is a
   32-9  nonhandicapped student residing in a residential placement facility
  32-10  in a district in which the student's parent or legal guardian does
  32-11  not reside, a district is entitled to an annual allotment equal to
  32-12  the adjusted basic allotment multiplied by 0.2, and by 2.41 for
  32-13  each full-time equivalent student who is in a remedial and support
  32-14  program under Section 21.557 of this code because the student is
  32-15  pregnant.
  32-16        (b)  For purposes of this section, the number of
  32-17  educationally disadvantaged students is determined by averaging the
  32-18  best six months' enrollment in the national school lunch program of
  32-19  free or reduced-price lunches for the preceding school year.
  32-20        (c)  Funds allocated under this section, other than an
  32-21  indirect cost allotment established under State Board of Education
  32-22  rule, which shall not exceed 15 percent, must be used in providing
  32-23  remedial and compensatory education programs under Section 21.557
  32-24  of this code, and the district must account for the expenditure of
  32-25  state funds by program and by campus.  Funds allocated under this
   33-1  section, other than the indirect cost allotment, shall only be
   33-2  expended to improve and enhance programs and services funded under
   33-3  the regular education program.
   33-4        (d)  The Central Education Agency shall evaluate the
   33-5  effectiveness of remedial and support programs provided under
   33-6  Section 21.557 of this code for students at risk of dropping out of
   33-7  school.
   33-8        (e)  A school district in which the actual dropout rate in
   33-9  any school year exceeds the state's dropout rate goal for that year
  33-10  under Subsection (a) of Section 11.205 of this code shall, for the
  33-11  school year immediately following that school year, allocate a
  33-12  percentage of the district's allotment under this section to
  33-13  remedial and support programs under Section 21.557 of this code for
  33-14  students at risk of dropping out of school.  The percentage
  33-15  allocated to those programs must be at least equal to the state's
  33-16  actual dropout rate for the preceding year.  The programs must be
  33-17  programs authorized by the State Board of Education.  The Central
  33-18  Education Agency shall provide to the district technical assistance
  33-19  in reducing the district's dropout rate.  At the request of a
  33-20  district, the commissioner of education may exempt the district
  33-21  from the requirements of this section if the commissioner finds
  33-22  that special circumstances in the district merit the exemption.
  33-23        (f)  The commissioner of education may<:>
  33-24              <(1)>  retain a portion of the total amount allotted
  33-25  under Subsection (a) of this section that the commissioner
   34-1  considers appropriate to finance pilot programs under Section
   34-2  11.191 of this code and to finance intensive remedial instruction
   34-3  programs and study guides provided under Sections 21.552(b) and (c)
   34-4  of this code<; and>
   34-5              <(2)  reduce each district's allotment
   34-6  proportionately>.
   34-7        (g)  From the total amount of funds appropriated for
   34-8  allotments under this section, the commissioner of education shall,
   34-9  each fiscal year, withhold the amount of $10,000,000 and distribute
  34-10  that amount for programs under Section 21.114 of this code.  The
  34-11  program established under that section is required only in school
  34-12  districts in which the program is financed by funds distributed
  34-13  under this section and any other funds available for the program.
  34-14        (h)  The commissioner of education shall coordinate the funds
  34-15  withheld under Subsection (g) of this section and any other funds
  34-16  available for the program and shall distribute those funds.  To
  34-17  receive funds for the program, a school district must apply to the
  34-18  commissioner.  The commissioner shall give a preference to the
  34-19  districts that apply that have the highest concentration of
  34-20  students who are pregnant or who are parents.
  34-21        (i)  The commissioner of education shall withhold funds
  34-22  allocated under this section to a district that fails to timely
  34-23  prepare or make available on request of a member of the general
  34-24  public the report required under Section 21.557(i) of this code.
  34-25  The commissioner may restore withheld funds only when the
   35-1  commissioner is satisfied that the district has provided the
   35-2  information requested.
   35-3        <(i)  After deducting the amount withheld under Subsection
   35-4  (g) of this section from the total amount appropriated for the
   35-5  allotment under Subsection (a) of this section, the commissioner of
   35-6  education shall reduce each district's allotment under Subsection
   35-7  (a) proportionately and shall allocate funds to each district
   35-8  accordingly.>
   35-9        (j)  From the total amount of funds appropriated for
  35-10  allotments under this section, the commissioner of education shall,
  35-11  each fiscal year, withhold the amount of $5,000,000 and distribute
  35-12  that amount for programs under Subchapter V, Chapter 21, of this
  35-13  code.  A program established under that subchapter is required only
  35-14  in school districts in which the program is financed by funds
  35-15  distributed under this section or other funds distributed by the
  35-16  commissioner for a program under that subchapter.
  35-17        (k)  The commissioner of education shall coordinate the funds
  35-18  withheld under Subsection (j) of this section and any other funds
  35-19  available for the program and shall distribute those funds.  To
  35-20  receive funds for the program, a school district must apply to the
  35-21  commissioner.  The commissioner shall give a preference to the
  35-22  districts that apply that have the highest concentration of at-risk
  35-23  students.  For each school year that a school district receives
  35-24  funds under this section, the district shall allocate an amount of
  35-25  local funds for school guidance and counseling programs that is
   36-1  equal to or greater than the amount of local funds that the school
   36-2  district allocated for that purpose during the preceding school
   36-3  year.
   36-4        <(l)  After deducting the amount withheld under Subsection
   36-5  (j) of this section from the total amount appropriated for the
   36-6  allotment under Subsection (a) of this section, the commissioner of
   36-7  education shall reduce each district's allotment under Subsection
   36-8  (a) on a per pupil basis.>
   36-9        Sec. 16.153.  BILINGUAL EDUCATION ALLOTMENT.  (a)  For each
  36-10  student in average daily attendance in a bilingual education or
  36-11  special language program under Subchapter L, Chapter 21, of this
  36-12  code, a district is entitled to an annual allotment equal to the
  36-13  adjusted basic allotment multiplied by 0.1.
  36-14        (b)  Funds allocated under this section, other than an
  36-15  indirect cost allotment established under State Board of Education
  36-16  rule, must be used in providing bilingual education or special
  36-17  language programs under Subchapter L, Chapter 21, of this code.
  36-18        (c)  A district's bilingual education or special language
  36-19  allocation may be used only for program and pupil evaluation,
  36-20  instructional materials and equipment, staff development,
  36-21  supplemental staff expenses, salary supplements for teachers, and
  36-22  other supplies required for quality instruction and smaller class
  36-23  size.
  36-24        Sec. 16.155.  VOCATIONAL EDUCATION ALLOTMENT.  (a)  For each
  36-25  full-time equivalent student in average daily attendance in an
   37-1  approved vocational education program in grades nine through 12 or
   37-2  in vocational education for the handicapped programs in grades
   37-3  seven through 12, a district is entitled to an annual allotment
   37-4  equal to the adjusted basic allotment multiplied by a weight of
   37-5  1.37.
   37-6        (b)  In this section, "full-time equivalent student" means 30
   37-7  hours of contact a week between a student and vocational education
   37-8  program personnel.
   37-9        (c)  Funds allocated under this section, other than an
  37-10  indirect cost allotment established under State Board of Education
  37-11  rule, must be used in providing vocational education programs in
  37-12  grades nine through 12 or vocational education for the handicapped
  37-13  programs in grades seven through 12 under the provisions of
  37-14  Sections 21.111, 21.1111, and 21.112 of this code.
  37-15        (d)  The indirect cost allotment established under board
  37-16  rules shall first be effective for the 1991-1992 school year
  37-17  consistent with the weight effective that year.
  37-18        (e)  The commissioner shall conduct a cost-benefit comparison
  37-19  between vocational education programs and mathematics and science
  37-20  programs.
  37-21        (f) <(h)>  Out of the total statewide allotment for
  37-22  vocational education under this section, the commissioner of
  37-23  education shall set aside an amount specified in the General
  37-24  Appropriations Act, which may not exceed an amount equal to one
  37-25  percent of the total amount appropriated, to support regional
   38-1  vocational education planning committees established under Section
   38-2  21.115(b) of this code.  <After deducting the amount set aside
   38-3  under this subsection from the total amount appropriated for
   38-4  vocational education under this section, the commissioner shall
   38-5  reduce each district's allotment in the same manner described for a
   38-6  reduction in state funds under Section 16.254(d) of this code.>
   38-7        Sec. 16.156.  TRANSPORTATION ALLOTMENT.  (a)  Each district
   38-8  or county operating a transportation system is entitled to
   38-9  allotments for transportation costs as provided by this section.
  38-10        (b)  As used in this section:
  38-11              (1)  "Regular eligible pupil" means a pupil who resides
  38-12  two or more miles from his or her campus of regular attendance,
  38-13  measured along the shortest route that may be traveled on public
  38-14  roads, and who is not classified as an eligible handicapped pupil.
  38-15              (2)  "Eligible handicapped pupil" means a pupil who is
  38-16  handicapped as defined in Section 21.503 of this code and who would
  38-17  be unable to attend classes without special transportation
  38-18  services.
  38-19              (3)  "Linear density" means the average number of
  38-20  regular eligible pupils transported daily, divided by the approved
  38-21  daily route miles traveled by the respective transportation system.
  38-22        (c)  Each district or county operating a regular
  38-23  transportation system is entitled to an allotment based on the
  38-24  daily cost per regular eligible pupil of operating and maintaining
  38-25  the regular transportation system and the linear density of that
   39-1  system.  In determining the cost, the commissioner shall give
   39-2  consideration to factors affecting the actual cost of providing
   39-3  these transportation services in each district or county.  The
   39-4  average actual cost is to be computed by the commissioner of
   39-5  education and included for consideration by the Foundation School
   39-6  Fund Budget Committee and the legislature in the General
   39-7  Appropriations Act.  The allotment per mile of approved route may
   39-8  not exceed the amount set by appropriation.
   39-9        (d)  A district or county may apply for and on approval of
  39-10  the commissioner of education receive an additional amount of up to
  39-11  10 percent of its regular transportation allotment to be used for
  39-12  the transportation of children living within two miles of the
  39-13  school they attend who would be subject to hazardous traffic
  39-14  conditions if they walked to school.  Each board of trustees shall
  39-15  provide to the commissioner the definition of hazardous conditions
  39-16  applicable to that district and shall identify the specific
  39-17  hazardous areas for which the allocation is requested.  A hazardous
  39-18  condition exists where no walkway is provided and children must
  39-19  walk along or cross a freeway or expressway, an underpass, an
  39-20  overpass or a bridge, an uncontrolled major traffic artery, an
  39-21  industrial or commercial area, or another comparable condition.
  39-22        (e)  The state commissioner of education may grant an amount
  39-23  set by appropriation for private or commercial transportation for
  39-24  eligible pupils from isolated areas.   The need for this type of
  39-25  transportation grant shall be determined on an individual basis and
   40-1  the amount granted shall not exceed the actual cost.  The grants
   40-2  shall be made only in extreme hardship cases, and no grants shall
   40-3  be made if the pupils live within two miles of an approved school
   40-4  bus route.
   40-5        (f)  The cost of transporting vocational education students
   40-6  from one campus to another inside a district or from a sending
   40-7  district to another secondary public school for a vocational
   40-8  program or an area vocational school or to an approved
   40-9  post-secondary institution under a contract for instruction
  40-10  approved by the Central Education Agency shall be reimbursed based
  40-11  on the number of actual miles traveled times the district's
  40-12  official extracurricular travel per mile rate as set by their local
  40-13  board of trustees and approved by the Central Education Agency.
  40-14        (g)  A school district or county that provides special
  40-15  transportation services for eligible handicapped pupils is entitled
  40-16  to a state allocation paid on a previous year's cost-per-mile
  40-17  basis.  The maximum rate per mile allowable shall be set by
  40-18  appropriation based on data gathered from the first year of each
  40-19  preceding biennium.  Districts may use a portion of their support
  40-20  allocation to pay transportation costs, if necessary.  The
  40-21  commissioner of education may grant an amount set by appropriation
  40-22  for private transportation to reimburse parents or their agents for
  40-23  transporting eligible handicapped pupils.  The mileage allowed
  40-24  shall be computed along the shortest public road from the pupil's
  40-25  home to school and back, morning and afternoon.  The need for this
   41-1  type transportation shall be determined on an individual basis and
   41-2  shall be approved only in extreme hardship cases.
   41-3        (h)  The allocation for eligible regular students transported
   41-4  by the regular transportation system shall be increased by five
   41-5  percent for any district or county school board which has complied
   41-6  with the provisions of Section 21.173 of this code in accordance
   41-7  with rules adopted by the State Board of Education.
   41-8        (i)  Funds allotted under this section must be used in
   41-9  providing transportation services.
  41-10        (j)  In the case of a district belonging to a county
  41-11  transportation system, the district's transportation allotment for
  41-12  purposes of determining a district's foundation school program
  41-13  allocations shall be determined on the basis of the number of
  41-14  approved daily route miles in the district multiplied by the
  41-15  allotment per mile to which the county transportation system is
  41-16  entitled.
  41-17        Sec. 16.158.  Career Ladder Allotment.  (a)  Each district is
  41-18  entitled to an allotment for support of the career ladder equal to
  41-19  its unadjusted average daily attendance multiplied by $90.
  41-20        (b)  An allotment under this section may be used only for the
  41-21  purposes of career ladder supplements.
  41-22        (c)  From the funds designated for that purpose, the district
  41-23  shall supplement the salary of each teacher above level one on the
  41-24  career ladder.  The district shall decide the amount of supplement
  41-25  to be provided at each career ladder level.
   42-1        (d)  Money received under this section may not be used to
   42-2  supplement the salary of an employee for directing cocurricular or
   42-3  extracurricular activities.
   42-4        Sec. 16.159.  Gifted and Talented Student Allotment.
   42-5  (a)  For each student a school district serves in a Central
   42-6  Education Agency approved program for gifted and talented students
   42-7  under Subchapter Q, Chapter 21, of this code or, in the case of a
   42-8  district that is developing a program in accordance with standards
   42-9  established by the commissioner of education, for each student the
  42-10  district identifies as gifted and talented under State Board of
  42-11  Education criteria, a district is entitled to an annual allotment
  42-12  equal to the district's adjusted basic allotment as determined
  42-13  under Section 16.102 or Section 16.103 of this code, as applicable,
  42-14  multiplied by .12 for each school year or a greater amount provided
  42-15  by appropriation.
  42-16        (b)  Funds allocated under this section, other than the
  42-17  amount that represents the program's share of general
  42-18  administrative costs, must be used in providing approved programs
  42-19  for gifted and talented students under Subchapter Q, Chapter 21, of
  42-20  this code or, in the case of a district that has not yet
  42-21  established a program, in developing programs for gifted and
  42-22  talented students.  Each district must account for the expenditure
  42-23  of state funds as provided by rule of the State Board of Education.
  42-24  If by the end of the 12th month after receiving an allotment for
  42-25  developing a program a district has failed to implement an approved
   43-1  program, the district must refund the amount of the allotment to
   43-2  the agency within 30 days.
   43-3        (c)  Not more than five percent of a district's students in
   43-4  average daily attendance are eligible for funding under this
   43-5  section.
   43-6        (d)  If the amount of state funds for which school districts
   43-7  are eligible under this section exceeds the amount of state funds
   43-8  appropriated in any year for the programs, the commissioner of
   43-9  education shall reduce each district's allotment on a pro rata
  43-10  basis.
  43-11        (e)  <If the total amount of funds allotted under this
  43-12  section before a date set by rule of the State Board of Education
  43-13  is less than the total amount appropriated for a school year, the
  43-14  commissioner shall distribute the remainder proportionately to the
  43-15  districts that have received an allotment, and no other districts
  43-16  are eligible for an allotment for that school year.>
  43-17        <(f)>  After each district has received allotted funds for
  43-18  this program, the State Board of Education may use up to $500,000
  43-19  of the funds allocated under this section for programs such as
  43-20  Future Problem Solving Olympics of the Mind, and Academic
  43-21  Decathlon, as long as these funds are used to train personnel and
  43-22  provide program services.  To be eligible for funding under this
  43-23  section, a program must be determined by the State Board of
  43-24  Education to provide services that are effective and consistent
  43-25  with the state plan for 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             SUBCHAPTER F.  ACCOUNTABLE COSTS OF EDUCATION
   44-9        Sec. 16.201.  Purpose.  The accountable costs of education
  44-10  studies are designed to support the development of the equalized
  44-11  funding elements necessary to provide an efficient state and local
  44-12  public school finance system which meets the state policy
  44-13  established in Section 16.001 of this code and provides the
  44-14  research basis for the equalized funding elements under the
  44-15  provisions of Section 16.256 of this code.
  44-16        Sec. 16.202.  STUDIES.  On a biennial basis, the Legislative
  44-17  Education Board and the Legislative Budget Board, with the
  44-18  assistance of the Educational Economic Policy Center and the
  44-19  Central Education Agency, shall complete each of the following
  44-20  studies and develop recommended amounts where appropriate for each
  44-21  year of the next biennium:
  44-22              (1)  a study of the fiscal neutrality of the system to
  44-23  determine the status of the state and local finance system with
  44-24  regard to the policies established under the provisions of Section
  44-25  16.001 of this code, including recommendations for adjustments
   45-1  necessary to maintain fiscal neutrality;
   45-2              (2)  the accountable costs per student to school
   45-3  districts of providing educational programs, personnel, and other
   45-4  operating costs that meet accreditation criteria and the provisions
   45-5  of law and regulation;
   45-6              (3)  program cost differentials designed by program to
   45-7  provide support for the added expense of high-cost courses or
   45-8  programs for students participating in such courses or programs,
   45-9  with the program funding level expressed as dollar amounts and as
  45-10  weights applied to the adjusted basic allotment for the appropriate
  45-11  year;
  45-12              (4)  transportation and career ladder allotments;
  45-13              (5)  the levels of tax effort necessary for each tier
  45-14  of the Foundation School Program necessary to fulfill the
  45-15  requirements of Sections 16.001 and 16.008 of this code; <and>
  45-16              (6)  capital outlay and debt service requirements and
  45-17  formula elements for the requirements of Subchapter I of this
  45-18  chapter or other provisions of this chapter; and
  45-19              (7)  methods of adjusting for specific resource cost
  45-20  variations caused by factors beyond the control of school
  45-21  districts.
  45-22        Sec. 16.203.  Procedures.  (a)  The program cost
  45-23  differentials developed jointly by the Legislative Education Board
  45-24  and the Legislative Budget Board shall be submitted to the
  45-25  foundation school fund budget committee for adoption beginning with
   46-1  the 1993-1994 school year.  If the foundation school fund budget
   46-2  committee fails to adopt by April 1 the program cost differentials
   46-3  for the following school year, the commissioner of education, after
   46-4  considering the recommendations developed by those boards, shall
   46-5  adopt program cost differentials.
   46-6        (b)  The commissioner of education shall provide appropriate
   46-7  assistance to the boards for the calculation of the various funding
   46-8  elements.  Subject to review by the Legislative Education Board,
   46-9  the commissioner of education shall retain from the allotments
  46-10  under Sections 16.102 and 16.103 of this code and Subchapter D of
  46-11  this chapter amounts appropriate to finance necessary additional
  46-12  costs for the studies required under this subchapter.
  46-13        (c)  The boards may appoint advisory committees to assist in
  46-14  the development of the various funding elements and studies
  46-15  required under this subchapter.  Advisory committee members serve
  46-16  without compensation but are entitled to reimbursement for actual
  46-17  and necessary expenses incurred in the performance of their duties.
  46-18  Reimbursement shall be from funds available under Subsection (b) of
  46-19  this section or from other funds available to the boards.
  46-20        (d)  In the studies relating to program cost differentials
  46-21  the boards shall give special consideration to cost factors
  46-22  associated with class size, laboratory expenses, materials,
  46-23  equipment, teacher training, necessary salary supplementation, and
  46-24  special services related to individual courses or groups of
  46-25  courses.
   47-1        Sec. 16.204.  Naval Military Facility Impact.  (a)  The model
   47-2  on which a cost of education index is based must specifically
   47-3  consider the impact of a significant new naval military facility on
   47-4  each district in an impacted region.
   47-5        (b)  If the construction or operation of a significant new
   47-6  naval military facility begins during a school year, the
   47-7  Legislative Education Board and the Legislative Budget Board shall
   47-8  recommend the adjustment of the basic allotment during that school
   47-9  year to consider any impact of the facility on the cost of
  47-10  education index of the districts in the impacted region.
  47-11        (c)  In this section, "significant new naval military
  47-12  facility" and "impacted region" have the meanings assigned by
  47-13  Section 4, Article 1, National Defense Impacted Region Assistance
  47-14  Act of 1985 (Article 689a-4d, Vernon's Texas Civil Statutes).
  47-15        (d)  This section expires September 1, 1993.
  47-16        Sec. 16.205.  Efficiency in Administration Report.  (a)  The
  47-17  commissioner of education shall conduct a study to determine the
  47-18  most appropriate and efficient method for reporting and monitoring
  47-19  the allocation of resources by school districts.
  47-20        (b)  The study shall identify the most effective means for
  47-21  calculating, monitoring, and reporting the proportion of resources
  47-22  that school districts allocate for their administrative costs and
  47-23  shall include administrator-teacher ratios.
  47-24        (c)  The study shall include a description of average
  47-25  efficient administrative expenditures by districts with
   48-1  consideration of district size and demographics.
   48-2        (d)  Prior to the beginning of each regular session of the
   48-3  legislature, the agency shall provide a report with recommendations
   48-4  to the Legislative Education Board and the legislature.
   48-5        (e)  The study is an element of the study of accountable
   48-6  costs of education under this subchapter.
   48-7        <Sec. 16.206.  COST ADJUSTMENTS.  (a)  The lieutenant
   48-8  governor shall appoint five members of the senate and the speaker
   48-9  of the house of representatives shall appoint five members of the
  48-10  house to a committee to conduct a study of certain costs of
  48-11  providing public education as provided by this section.  The
  48-12  lieutenant governor and the speaker shall make the appointments not
  48-13  later than September 1, 1991.>
  48-14        <(b)  The committee shall examine methods of adjusting for
  48-15  specific resource cost variations caused by factors beyond the
  48-16  control of school districts.  The committee shall recommend
  48-17  adjustments for these factors that will provide the most efficient
  48-18  service delivery considering optimum district size, enrollment
  48-19  growth, and other cost factors.  For the purpose of the study, the
  48-20  committee shall divide districts and campuses into a variety of
  48-21  categories that may include region, size, area, density,
  48-22  educational characteristics, and economic conditions.>
  48-23        <(c)  The committee may appoint one or more advisory panels
  48-24  to assist the committee in conducting the study.  Advisory panel
  48-25  members serve without compensation but are entitled to
   49-1  reimbursement for actual and necessary expenses incurred in the
   49-2  performance of their duties.>
   49-3        <(d)  The committee shall recommend adjustments to the
   49-4  Foundation School Program for resource cost variations caused by
   49-5  factors beyond the control of school districts to the foundation
   49-6  school fund budget committee not later than June 1, 1992.  The
   49-7  adjustments shall include:>
   49-8              <(1)  an adjustment to account for fast enrollment
   49-9  growth and other factors relevant to a district's need for
  49-10  facilities; and>
  49-11              <(2)  appropriate treatment of the calculation of
  49-12  weighted students under Section 16.302 of this code.>
  49-13        <(e)  The foundation school fund budget committee by rule
  49-14  shall adopt adjustments to the Foundation School Program for
  49-15  resource cost variations beyond the control of school districts to
  49-16  apply beginning with  the 1993-1994 school year.  The foundation
  49-17  school fund budget committee shall report the adjustments adopted
  49-18  to the legislature and the commissioner of education.  If the
  49-19  foundation school fund budget committee fails to adopt the
  49-20  adjustments by November 1, 1992, the commissioner of education by
  49-21  rule shall adopt adjustments not later than December 1, 1992.>
  49-22        <(f)  The rules  adopted under this section apply beginning
  49-23  with the 1993-1994 school year.  If no rules are adopted under this
  49-24  section, the basic allotment calculated under Sections 16.008 and
  49-25  16.256(e) of this code shall be increased to reflect the costs
   50-1  associated with the adjustments made by the cost of education index
   50-2  and formula for the 1992-1993 school year.>
   50-3                 SUBCHAPTER G.  FINANCING THE PROGRAM
   50-4        Sec. 16.251.  FINANCING; GENERAL RULE.  (a)  The sum of the
   50-5  basic allotment under Subchapter C, the special allotments under
   50-6  Subchapter D, and the guaranteed yield allotments under Subchapter
   50-7  H, computed in accordance with the provisions of this chapter,
   50-8  constitute the total cost of the Foundation School Program.
   50-9        (b)  The program shall be financed by:
  50-10              (1)  ad valorem tax revenue generated by an equalized
  50-11  uniform local school <county education> district effort;
  50-12              (2)  ad valorem tax revenue generated by local school
  50-13  district effort in excess of the equalized uniform <county
  50-14  education> district effort;
  50-15              (3)  state available school funds distributed in
  50-16  accordance with law; and
  50-17              (4)  state funds appropriated for the purposes of
  50-18  public school education and allocated to each district in an amount
  50-19  sufficient to finance the cost of each district's Foundation School
  50-20  Program not covered by other funds specified in this subsection.
  50-21        (c)  The commissioner of education shall compute for each
  50-22  school district the total amount, if any, by which the district's
  50-23  total revenue is reduced from one school year to the next because
  50-24  of a change in the method of finance under this chapter.  The
  50-25  commissioner shall certify the amount of the reduction to the
   51-1  school district for use in determining the school district's
   51-2  rollback rate under Section 26.08, Tax Code.
   51-3        Sec. 16.252.  Local Share of Program Cost (Tier One).
   51-4  (a)  Each school <county education> district's share of tier one of
   51-5  the Foundation School Program shall be an amount determined by the
   51-6  following formula:
   51-7  where:
   51-8        "LFA" is the <county education> district's local share;
   51-9        "TR" is a tax rate which for each hundred dollars of
  51-10  valuation is <$0.72 for the 1991-1992 school year,> $0.82 <for the
  51-11  1992-1993 school year,) $0.92 for the 1993-1994 school year, and
  51-12  $1.00 for each school year thereafter>; and
  51-13        "DPV" is the taxable value of property in the <county
  51-14  education> district for the prior tax year determined under Section
  51-15  11.86 of this code.
  51-16        (b)  The commissioner of education shall adjust the values
  51-17  reported in the official report of the comptroller as required by
  51-18  Section 5.09(a), <Property> Tax Code, to reflect reductions in
  51-19  taxable value of property resulting from natural or economic
  51-20  disaster after January 1 in the year in which the valuations are
  51-21  determined.  The decision of the commissioner of education shall be
  51-22  final.  An adjustment does not affect the local fund assignment of
  51-23  any other <county education> district.
  51-24        (c)  Appeals of district values shall be held pursuant to
  51-25  Subsection (e) of Section 11.86 of this code.
   52-1        (d)  A <county education> district shall raise its total
   52-2  local share of the foundation school program.  <The funds shall be
   52-3  reallocated to the school districts in the county education
   52-4  district in the manner prescribed by Subchapter J of this chapter.>
   52-5        (e)  The commissioner of education shall hear appeals from
   52-6  <county education> districts which have experienced a rapid decline
   52-7  in tax base used in calculating the local fund assignment,
   52-8  exceeding eight percent of prior year, that is beyond the control
   52-9  of the board of trustees of the <county education> district.  The
  52-10  commissioner of education may adjust the <county education>
  52-11  district's taxable values for local fund assignment purposes for
  52-12  such losses in value exceeding eight percent and thereby adjust the
  52-13  local fund assignment to reflect the local current year taxable
  52-14  value.  The decision of the commissioner of education shall be
  52-15  final.  An adjustment does not affect the local fund assignment of
  52-16  any other <county education> district.
  52-17        <(f)  For the purposes of Subsection (a) of this section, a
  52-18  county education district's "DPV" for the 1991-1992 school year is
  52-19  the sum of the taxable value of property for the prior tax year
  52-20  determined under Section 11.86 of this code for the school
  52-21  districts composing the county education district.  This subsection
  52-22  expires September 1, 1992.>
  52-23        Sec. 16.254.  DISTRIBUTION OF FOUNDATION SCHOOL FUND.
  52-24  (a)  Each district's actual total allotments under the Foundation
  52-25  School Program are determined by the following formula:
   53-1  where:
   53-2        "DA"  is the district's actual total allotments;
   53-3        "DGA"  is the district's gross total allotments, which is the
   53-4  sum of the district's allotments under Subchapters C, D, and H of
   53-5  this chapter;
   53-6        "DPV"  is the taxable value of property in the district as
   53-7  determined under Section 11.86 of this code;
   53-8        "SPV"  is the statewide taxable value of property as
   53-9  determined under Section 11.86 of this code; and
  53-10        "SAU"  is the total of all amounts appropriated from the
  53-11  foundation school fund that are not available for the payment of
  53-12  foundation school fund allotments because the amounts are set aside
  53-13  or charged back to school districts by statute or appropriation for
  53-14  studies, testing, special projects, or other special purposes.
  53-15        (b)  Each amount of each district's state aid from the
  53-16  foundation school fund is determined by the following formula:
  53-17  where:
  53-18        "DS"  is the amount of the district's state aid from the
  53-19  foundation school fund;
  53-20        "DA"  is the amount of the district's actual total allotments
  53-21  under the Foundation School Program as determined under Subsection
  53-22  (a) of this section;
  53-23        "DPV"  is the taxable value of property in the district as
  53-24  determined under Section 11.86 of this code;
  53-25        "SPV"  is the statewide taxable value of property as
   54-1  determined under Section 11.86 of this code;
   54-2        "SA"  is the statewide total of districts' actual total
   54-3  allotments determined under Subsection (a) of this section; and
   54-4        "SS"  is the total amount appropriated from the foundation
   54-5  school fund that is available for the payment of foundation school
   54-6  fund allotments, which does not include "SAU" as determined under
   54-7  Subsection (a) of this section <The commissioner of education shall
   54-8  determine annually:>
   54-9              <(1)  the amount of money necessary to operate a
  54-10  Foundation School Program in each school district;>
  54-11              <(2)  the amount of local funds due the school district
  54-12  from the local fund assignment of the county education district;
  54-13  and>
  54-14              <(3)  the amount of state available school funds
  54-15  distributed to each school district.>
  54-16        <(b)  The commissioner of education shall then grant to each
  54-17  school district from the Foundation School Program appropriation
  54-18  the amount of funds necessary to provide the difference between
  54-19  Subdivision (1) and the sum of Subdivisions (2) and (3) of
  54-20  Subsection (a) of this section>.
  54-21        (c)  The commissioner shall approve warrants to each school
  54-22  district equaling the amount of its state aid computed under
  54-23  Subsection (b) of this section <grant>.  Warrants for all money
  54-24  expended according to the provisions of this chapter shall be
  54-25  approved and transmitted to treasurers or depositories of school
   55-1  districts in the same manner as warrants for state apportionment
   55-2  are transmitted.
   55-3        <(d)  Notwithstanding any other provision of this chapter, if
   55-4  for any year the total state's share of the Foundation School
   55-5  Program, as determined under this chapter, exceeds the total amount
   55-6  appropriated for that year, the commissioner shall reduce the total
   55-7  amount of state funds allocated to each district by an amount
   55-8  determined by a method under which the application of the same
   55-9  number of cents of increase in tax rate applied to the taxable
  55-10  value of property of each district, as determined under Section
  55-11  11.86 of this code, results in a levy for each district equal to
  55-12  the amount deducted from that district's allocation.>
  55-13        <(e)  The commissioner of education shall compute for each
  55-14  school district the total amount by which the district's allocation
  55-15  of state funds is reduced under Subsection (d) of this section and
  55-16  shall certify that amount to the district.>
  55-17        Sec. 16.255.  Falsification of Records; Report.  (a)  When,
  55-18  in the opinion of the director of school audits of the Central
  55-19  Education Agency, audits or reviews of accounting, enrollment, or
  55-20  other records of a school district reveal deliberate falsification
  55-21  of the records, or violation of the provisions of this chapter,
  55-22  whereby the district's share of state funds allocated under the
  55-23  authority of this chapter would be, or has been, illegally
  55-24  increased, the director shall promptly and fully report the fact to
  55-25  the State Board of Education and the state auditor.
   56-1        (b)  In the event of overallocation of state funds, as
   56-2  determined by the State Board of Education or the state auditor by
   56-3  reference to the director's report, the Central Education Agency
   56-4  shall, by withholding from subsequent allocations of state funds,
   56-5  recover from the district an amount, or amounts, equal to the
   56-6  overallocation.
   56-7        Sec. 16.256.  FOUNDATION SCHOOL FUND BUDGET COMMITTEE.  (a)
   56-8  The foundation school fund budget committee is composed of the
   56-9  governor, the lieutenant governor, and the comptroller of public
  56-10  accounts.
  56-11        (b)  On or before November 1 before each regular session of
  56-12  the legislature, the budget committee shall determine and certify
  56-13  to the comptroller of public accounts an amount of money to be
  56-14  placed in the foundation school fund for the succeeding biennium
  56-15  for the purpose of financing the Foundation School Program as
  56-16  described in this code.
  56-17        (c)  The budget committee may, during the biennium, change
  56-18  the estimate of money necessary to finance the Foundation School
  56-19  Program.
  56-20        (d)  The foundation school fund budget committee shall adopt
  56-21  rules for the calculation for each year of a biennium of the
  56-22  qualified funding elements necessary to achieve the state funding
  56-23  policy under Section 16.001 of this code not later than the
  56-24  1994-1995 school year and for each year thereafter.  In the
  56-25  calculation of these funding elements, the committee shall consider
   57-1  the report of the Legislative Education Board prescribed under
   57-2  Section 16.008 of this code.
   57-3        (e)  The funding elements shall include:
   57-4              (1)  a basic allotment for the purposes of Section
   57-5  16.101 of this code that represents the cost per student of a
   57-6  regular education program that meets the basic criteria for an
   57-7  accredited program including all mandates of law and regulation;
   57-8              (2)  adjustments designed to reflect the variation in
   57-9  known resource costs and costs of education beyond the control of
  57-10  school districts;
  57-11              (3)  appropriate program cost differentials and other
  57-12  funding elements for the programs authorized under Subchapter D of
  57-13  this chapter, with the program funding level expressed as dollar
  57-14  amounts and as weights applied to the adjusted basic allotment for
  57-15  the appropriate year;
  57-16              (4)  the maximum guaranteed level of qualified state
  57-17  and local funds per student for the purposes of Subchapter H of
  57-18  this chapter;
  57-19              (5)  the enrichment and facilities tax rate under
  57-20  Subchapter H of this chapter;
  57-21              (6)  the formula elements for the funding formulas for
  57-22  capital outlay and debt service under the provision of Subchapter I
  57-23  of this chapter; and
  57-24              (7)  the calculation of weighted students in average
  57-25  daily attendance under Section 16.302 of this code.
   58-1        (f)  Not <Beginning in 1992, not> later than November 1
   58-2  preceding each regular session of the legislature, the foundation
   58-3  school fund budget committee by rule shall adopt and report the
   58-4  equalized funding elements calculated under this section to the
   58-5  commissioner of education and the legislature.  Before the
   58-6  committee adopts the elements, the committee or the committee's
   58-7  designees shall hold a public hearing on the recommendations of the
   58-8  Legislative Education Board.
   58-9        <(g)  Notwithstanding other provisions of this section, the
  58-10  funding elements adopted by the foundation school fund budget
  58-11  committee for the 1993-1994 school year and the 1994-1995 school
  58-12  year shall provide for appropriate transition from the program in
  58-13  effect for the 1992-1993 school year.>
  58-14        Sec. 16.258.  Effect Of Appraisal Appeal.  (a)  If the final
  58-15  determination of an appeal under Chapter 42, Tax Code, results in a
  58-16  reduction in the taxable value of property that exceeds five
  58-17  percent of the total taxable value of property in the school
  58-18  district for the same tax year determined under Section 11.86 of
  58-19  this code, the commissioner of education shall request the
  58-20  comptroller to adjust its taxable property value findings for that
  58-21  year consistent with the final determination of the appraisal
  58-22  appeal.
  58-23        (b)  If the district would have received a greater amount
  58-24  from the foundation school fund for the applicable school year
  58-25  using the adjusted value, the commissioner shall add the difference
   59-1  to subsequent distributions to the district from the foundation
   59-2  school fund.  An adjustment does not affect the local fund
   59-3  assignment of any other district.
   59-4        Sec. 16.259.  ASSIGNMENT OF FUNDS EXCEEDING ENTITLEMENT.  (a)
   59-5  This section applies to only a district at or above the 95th
   59-6  percentile of taxable value of property, as determined under
   59-7  Section 11.86 of this code, per weighted student in average daily
   59-8  attendance, as determined under Section 16.302 of this code.
   59-9        (b)  If the quotient of the sum of a district's local fund
  59-10  assignment under Section 16.252 of this code and the district's
  59-11  available school fund distribution divided by 82 exceeds the
  59-12  quotient of the sum of the district's allotments under Subchapters
  59-13  C and D of this chapter divided by 82, the district shall remit to
  59-14  the comptroller of public accounts an amount equal to the
  59-15  difference for each cent of the district's tax effort, not
  59-16  exceeding $0.82.
  59-17        (c)  The commissioner of education shall establish a schedule
  59-18  according to which a school district must remit periodically to the
  59-19  comptroller a portion of the taxes collected by the district until
  59-20  the total amount due under this section is remitted.
  59-21        (d)  The comptroller shall credit funds received under this
  59-22  section to the foundation school fund.
  59-23        (e)  If the total amounts received by the comptroller under
  59-24  this section exceed the maximum amount that the legislature is
  59-25  authorized to redistribute under the Texas Constitution, the
   60-1  comptroller shall refund the excess to the districts that generated
   60-2  the funds as provided by rule of the commissioner of education.
   60-3        (f)  For purposes of this section, a district's tax effort is
   60-4  determined by dividing the amount of tax revenue collected by the
   60-5  district by the quotient of the district's taxable value of
   60-6  property under Section 11.86 of this code divided by 100.
   60-7        (g)  For each of the 1993-1994 and 1994-1995 school years,
   60-8  for each cent of a school district's tax effort that qualifies for
   60-9  the yield guaranteed under Section 16.302 of this code but does not
  60-10  exceed the limit under Subsection (h) of this section, a school
  60-11  district with a yield per weighted student in average daily
  60-12  attendance per $0.0l of tax effort that exceeds the yield
  60-13  guaranteed to all school districts under Section 16.302 of this
  60-14  code shall remit to the comptroller an amount equal to the
  60-15  difference between the amount per weighted student collected by the
  60-16  district and the district's yield per weighted student under
  60-17  Subchapters C and D of this chapter.  A district's yield per
  60-18  weighted student under Subchapters C and D of this chapter is
  60-19  determined by dividing the quotient of the district's total
  60-20  allotments under those subchapters divided by 82 by the district's
  60-21  number of weighted students in average daily attendance as
  60-22  determined under Section 16.302 of this code.
  60-23        (h)  For each school year to which Subsection (g) of this
  60-24  section applies, the maximum number of cents for which a district
  60-25  is required to remit a portion of its tax collection under that
   61-1  subsection is equal to the rate under Section 16.011(d)(3) of this
   61-2  code.  This subsection and Subsection (g) of this section expire
   61-3  September 1, 1995.
   61-4        Sec. 16.260.  FOUNDATION SCHOOL FUND TRANSFERS.  (a)  In this
   61-5  section:
   61-6              (1)  "Category 1 school district" means a school
   61-7  district having a wealth of less than one-half of the statewide
   61-8  average wealth.
   61-9              (2)  "Category 2 school district" means a school
  61-10  district having a wealth of at least one-half of the statewide
  61-11  average wealth per pupil but not more than the statewide average
  61-12  wealth.
  61-13              (3)  "Category 3 school district" means a school
  61-14  district having a wealth of more than the statewide average wealth.
  61-15              (4)  "Wealth" means the taxable property values
  61-16  reported by the comptroller to the commissioner of education under
  61-17  Section 16.252 of this code divided by the number of students in
  61-18  average daily attendance.
  61-19        (b)  Payments from the foundation school fund to each
  61-20  category 1 school district shall be made as follows:
  61-21              (1)  21 percent of the yearly entitlement of the
  61-22  district shall be paid in two equal installments to be made on or
  61-23  before the 25th day of September and October of a fiscal year;
  61-24              (2)  57 percent of the yearly entitlement of the
  61-25  district shall be paid in six equal installments to be made on or
   62-1  before the 25th day of November, December, January, February,
   62-2  March, and July; and
   62-3              (3)  22 percent of the yearly entitlement of the
   62-4  district shall be paid in two equal installments to be made on or
   62-5  before the 25th day of April and May.
   62-6        (c)  Payments from the foundation school fund to each
   62-7  category 2 school district shall be made as follows:
   62-8              (1)  21 percent of the yearly entitlement of the
   62-9  district shall be paid in two equal installments to be made on or
  62-10  before the 25th day of September and October of a fiscal year;
  62-11              (2)  38 percent of the yearly entitlement of the
  62-12  district shall be paid in four equal installments to be made on or
  62-13  before the 25th day of November, December, March, and July;
  62-14              (3)  seven percent of the yearly entitlement of the
  62-15  school district shall be paid in two equal installments to be made
  62-16  on or before the 25th day of January and February;
  62-17              (4)  22 percent of the yearly entitlement of the school
  62-18  district shall be paid in two equal installments to be made on or
  62-19  before the 25th day of April and May; and
  62-20              (5)  12 percent of the yearly entitlement of the school
  62-21  district shall be paid in two equal installments to be made on or
  62-22  before the 25th day of June and August.
  62-23        (d)  Payments from the foundation school fund to each
  62-24  category 3 school district shall be made as follows:
  62-25              (1)  21 percent of the yearly entitlement of the school
   63-1  shall be paid in two equal installments to be made on or before the
   63-2  25th day of September and October of a fiscal year;
   63-3              (2)  57 percent of the yearly entitlement of the school
   63-4  shall be paid in six equal installments to be made on or before the
   63-5  25th day of November, December, March, June, July, and August; and
   63-6              (3)  22 percent of the yearly entitlement of the school
   63-7  district shall be paid in two equal installments to be made on or
   63-8  before the 25th day of April and May.
   63-9        (e)  The amount of any installment required by this section
  63-10  may be modified to provide a school district with the proper amount
  63-11  to which the district may be entitled by law and to correct errors
  63-12  in the allocation or distribution of funds.  If an installment
  63-13  under this section is required to be equal to other installments,
  63-14  the amount of other installments may be adjusted to provide for
  63-15  that equality.  A payment under this section is not invalid because
  63-16  it is not equal to other installments.
  63-17          SUBCHAPTER H.  GUARANTEED YIELD PROGRAM (TIER TWO)
  63-18        Sec. 16.301.  PURPOSE.  The purpose of the guaranteed yield
  63-19  component of the Foundation School Program is to provide each
  63-20  school district with the opportunity to supplement the basic
  63-21  program at a level of its own choice and with access to additional
  63-22  funds for facilities.  An allotment under this subchapter may be
  63-23  used for any legal purpose, including capital outlay and debt
  63-24  service.
  63-25        Sec. 16.302.  ALLOTMENT.  (a)  Each school district is
   64-1  guaranteed a specified amount per weighted student in state and
   64-2  local funds for each cent of tax effort over that required for the
   64-3  district's local fund assignment <of the county education district
   64-4  in which the school district is located> up to the maximum level
   64-5  specified in this subchapter.  The amount of the allotment <state
   64-6  support>, subject only to the maximum amount under Section 16.303
   64-7  of this code, is determined by the formula:
   64-8  where:
   64-9        "GYA" is the guaranteed yield amount of state funds to be
  64-10  allocated to the district;
  64-11        "GL" is the dollar amount guaranteed level of state and local
  64-12  funds per weighted student per cent of tax effort, which is <$21.50
  64-13  for the 1991-1992 school year,> $22.50 <for the 1992-1993 school
  64-14  year, $26 for the 1993-1994 school year, and $28 for each school
  64-15  year thereafter,> or a greater amount <for any year> provided by
  64-16  appropriation<,> or <a greater amount> adopted by the foundation
  64-17  school fund budget committee under Section 16.256(d) of this code
  64-18  <for the 1993-1994 or 1994-1995 school year or thereafter>;
  64-19        "WADA"<, except as provided by Section 16.206 of this code,>
  64-20  is the number of weighted students in average daily attendance,
  64-21  which is calculated by dividing the sum of the school district's
  64-22  allotments under Subchapters C and D of this chapter, less any
  64-23  allotments to the district for transportation, career ladder
  64-24  supplements, or technology and 50 percent of the adjustment under
  64-25  Section 16.102 of this code, by the basic allotment for the
   65-1  applicable year;
   65-2        "DTR" is the district enrichment and facilities tax rate of
   65-3  the school district, which is determined by subtracting the local
   65-4  fund assignment of the school district from <dividing> the total
   65-5  amount of taxes collected by the school district for the applicable
   65-6  school year and dividing the result by the quotient of the
   65-7  district's taxable value of property as determined under Section
   65-8  11.86 of this code divided by 100.<; and>
   65-9        (b)  The district's share of the allotment is an amount equal
  65-10  to  <"LR" is the local revenue, which is determined by multiplying>
  65-11  "DTR" as determined under Subsection (a) of this section multiplied
  65-12  by the quotient of the district's taxable value of property as
  65-13  determined under Section 11.86 of this code divided by 100.
  65-14        <(b)  Beginning with the 1993-1994 school year, if the
  65-15  program cost differentials developed jointly by the Legislative
  65-16  Education Board and the Legislative Budget Board under Section
  65-17  16.203 of this code and the adjustments studied under Section
  65-18  16.206 of this code are not adopted by the foundation school fund
  65-19  budget committee or the commissioner of education, the amount
  65-20  guaranteed under this section is an amount per student rather than
  65-21  per weighted student and a school district's average daily
  65-22  attendance ("ADA") under Section 16.006 of this code is substituted
  65-23  for "WADA" in the formula under Subsection (a) of this section.>
  65-24        Sec. 16.303.  LIMITATION ON ENRICHMENT AND FACILITIES TAX
  65-25  RATE.  The district enrichment and facilities tax rate ("DTR")
   66-1  under Section 16.302 of this code may not exceed $0.45 or a greater
   66-2  amount <for 1993-1994 and 1994-1995 school years or thereafter as>
   66-3  adopted by the foundation school fund budget committee under
   66-4  Section 16.256(d) of this code.
   66-5        Sec. 16.304.  COMPUTATION OF AID FOR DISTRICT ON MILITARY
   66-6  RESERVATION OR AT STATE SCHOOL.  State assistance under this
   66-7  subchapter for a school district located on a federal military
   66-8  installation or at Moody State School is computed using the average
   66-9  tax rate and property value per student of school districts in the
  66-10  county, as determined by the commissioner of education.
  66-11            SUBCHAPTER I.  CAPITAL OUTLAY AND DEBT SERVICE
  66-12        Sec. 16.401.  Inventory of School Facilities.  (a)  The State
  66-13  Board of Education shall establish a statewide inventory of school
  66-14  facilities and shall update the inventory on a periodic basis.
  66-15        (b)  The inventory shall include information on the
  66-16  condition, use, type, and replacement cost of public school
  66-17  facilities in this state.
  66-18        Sec. 16.402.  Standards.  The State Board of Education shall
  66-19  establish standards for adequacy of school facilities.  The
  66-20  standards shall include requirements related to space, educational
  66-21  adequacy, and construction quality.  All facilities constructed
  66-22  after September 1, 1992, must meet the standards in order to be
  66-23  financed with state or local tax funds.
  66-24        Sec. 16.403.  Advisory Committee.  The State Board of
  66-25  Education shall appoint a committee composed of 15 persons
   67-1  knowledgeable of various aspects of school facility planning,
   67-2  construction, renovation, and financing.  The advisory committee
   67-3  shall provide the board and the commissioner with assistance on the
   67-4  development of the inventory system, the creation of facility
   67-5  standards, and the conduct of facility research related to current
   67-6  and future roles of the state in the provision of financial and
   67-7  technical assistance to school districts.  The members of the
   67-8  committee shall serve without compensation but may be reimbursed
   67-9  for actual and necessary expenses.
  67-10        <SUBCHAPTER J.  COUNTY EDUCATION DISTRICT DISTRIBUTIONS>
  67-11        <Sec. 16.501.  TIER ONE.  (a)  The commissioner of education
  67-12  shall notify each county education district of the total amount of
  67-13  funds that each school district in the county education district is
  67-14  entitled to receive under tier one of the Foundation School
  67-15  Program.>
  67-16        <(b)  For tier one, the board of trustees of each county
  67-17  education district shall distribute the funds collected from the
  67-18  tax levied by the county education district under Section 20.945 of
  67-19  this code to the school districts in the county on the basis of the
  67-20  component districts' share of the taxable value of property of the
  67-21  county education district with the provision that no component
  67-22  district shall receive funds in excess of the cost of tier one less
  67-23  the distribution of the available school fund.>
  67-24        <(c)(1)  Notwithstanding Subsection (b) of this section, for
  67-25  the 1991-1992, 1992-1993, and 1993-1994 school years, for tier one
   68-1  the board of trustees of each county education district shall
   68-2  distribute the funds collected from the tax levied by the county
   68-3  education district under Section 20.945 of this code to the school
   68-4  districts in the county education district as follows:>
   68-5                    <(A)  to those school districts that did not
   68-6  receive foundation school funds for the 1990-1991 school year in
   68-7  which the amount of revenue per weighted student from local funds
   68-8  and the available school fund for the 1990-1991 school year exceeds
   68-9  the total amount of revenue per weighted student to which the
  68-10  district is entitled under the Foundation School Program at a tax
  68-11  rate equal to the maximum tax rate authorized under Section 20.09
  68-12  of this code, the county education district shall distribute an
  68-13  amount equal to the difference between the amount of revenue per
  68-14  weighted student in the district in the 1990-1991 school year from
  68-15  local funds and the available school fund and the levy that results
  68-16  from the application of the maximum rate authorized under Section
  68-17  20.09 of this code to the district's taxable value of property; and>
  68-18                    <(B)  the county education district shall
  68-19  apportion the remaining funds collected from the tax levy to each
  68-20  school district in the county education district on the basis of
  68-21  the component districts' share of the taxable value of property of
  68-22  the county education district with the provision that no component
  68-23  district shall receive funds in excess of the cost of tier one less
  68-24  the distribution of the available school fund.>
  68-25              <(2)  This subsection expires September 1, 1994.>
   69-1        <(d)  If the total amount available for distribution by the
   69-2  county education district exceeds the county education district's
   69-3  local share under Section 16.252 of this code, the county education
   69-4  district shall retain the excess amount for distribution in
   69-5  succeeding years.>
   69-6        <(e)  If the total amount available for distribution by the
   69-7  county education district is less than the county education
   69-8  district's local share under Section 16.252 of this code, the
   69-9  distributions shall be made under rules adopted by the commissioner
  69-10  of education.>
  69-11        <Sec. 16.502.  COLLECTION AND DISTRIBUTION SCHEDULES.  The
  69-12  commissioner of education shall establish a schedule for the
  69-13  distribution of funds to each school district under this
  69-14  subchapter.>
  69-15        <Sec. 16.503.  DEFINITION.  In this subchapter, "taxable
  69-16  value of property" is the value determined under Section 11.86 of
  69-17  this code.>
  69-18        SECTION .  Section 15.01(b), Education Code, is amended to
  69-19  read as follows:
  69-20        (b)  The available school fund, which shall be apportioned
  69-21  annually to school districts <the several counties of Texas>
  69-22  according to the scholastic population of each, shall consist of:
  69-23              (1)  the interest and dividends arising from any
  69-24  securities or funds belonging to the permanent school fund;
  69-25              (2)  all interest derivable from the proceeds of the
   70-1  sale of land set apart for the permanent school fund;
   70-2              (3)  all money derived from the lease of land belonging
   70-3  to the permanent school fund;
   70-4              (4)  <all revenue collected by the state from an annual
   70-5  state ad valorem tax of an amount not to exceed 35 cents on the
   70-6  $100 valuation, exclusive of delinquencies and cost of collection;>
   70-7              <(5)>  one-fourth of all revenue derived from all state
   70-8  occupation taxes, exclusive of delinquencies and cost of
   70-9  collection;
  70-10              (5) <(6)>  one-fourth of revenue derived from state
  70-11  gasoline and special fuels excise taxes as provided by law; and
  70-12              (6) <(7)>  all other appropriations to the available
  70-13  school fund as made or may be made by the legislature for public
  70-14  free school purposes.
  70-15        SECTION .  Section 11.86(a), Education Code, is amended to
  70-16  read as follows:
  70-17        (a)  The comptroller shall conduct an annual study using
  70-18  comparable sales and generally accepted auditing and sampling
  70-19  techniques to determine the total value of all taxable property in
  70-20  each <county education> school district <and each of its component
  70-21  school districts>.  The study shall determine the taxable value of
  70-22  all property and of each category of property within the district
  70-23  and the productivity value of all land that qualifies for appraisal
  70-24  on the basis of its productive capacity and for which the owner has
  70-25  applied for and received a productivity appraisal.  In conducting
   71-1  the study, the comptroller shall review the appraisal standards,
   71-2  procedures, and methodology used by each appraisal district to
   71-3  determine the taxable value of property in each school district.
   71-4  The review must test the validity of the taxable values assigned to
   71-5  each category of property by the appraisal district:
   71-6              (1)  using, if appropriate, samples selected through
   71-7  generally accepted sampling techniques; and
   71-8              (2)  according to generally accepted standard
   71-9  valuation, statistical compilation, and analysis techniques.  If
  71-10  the comptroller finds in the annual study that generally accepted
  71-11  appraisal standards and practices were used by the appraisal
  71-12  district in valuing a particular category of property, and that the
  71-13  taxable values assigned to each category of property by the
  71-14  appraisal district are valid, the appraisal roll value of that
  71-15  category of property is presumed to represent taxable value.  In
  71-16  the absence of such a presumption, the comptroller shall estimate
  71-17  the taxable value of that category of property using generally
  71-18  accepted standard valuation, statistical compilation, and analysis
  71-19  techniques.  For the purposes of this section, "taxable value"
  71-20  means market value less:
  71-21                    (1)  the total dollar amount of any exemptions of
  71-22  part but not all of the value of taxable property required by the
  71-23  constitution or a statute that a district lawfully granted in the
  71-24  year that is the subject of the study;
  71-25                    (2)  the total dollar amount of any exemptions
   72-1  granted within a reinvestment zone under agreements authorized by
   72-2  the Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
   72-3  Code);
   72-4                    (3)  the total dollar amount of any captured
   72-5  appraised value of property that is located in a reinvestment zone
   72-6  and that is eligible for tax increment financing under the Tax
   72-7  Increment Financing Act (Chapter 311, Tax Code);
   72-8                    (4)  the total dollar amount of any exemptions
   72-9  granted under Section 11.251, Tax Code;
  72-10                    (5)  the difference between the market value and
  72-11  the productivity value of land that qualifies for appraisal on the
  72-12  basis of its productive capacity, except that the productivity
  72-13  value may not exceed the fair market value of the land;
  72-14                    (6)  the portion of the appraised value of
  72-15  residence homesteads of the elderly on which school district taxes
  72-16  are not imposed in the year that is the subject of the study,
  72-17  calculated as if the residence homesteads were appraised at the
  72-18  full value required by law;
  72-19                    (7)  a portion of the market value of property
  72-20  not otherwise fully taxable by the district at market value because
  72-21  of action required by statute or the Texas Constitution that, if
  72-22  the tax rate adopted by the district is applied to it, produces an
  72-23  amount equal to the difference between the tax that the district
  72-24  would have imposed on the property if the property were fully
  72-25  taxable at market value and the tax that the district is actually
   73-1  authorized to impose on the property; and
   73-2                    (8)  the market value of all tangible personal
   73-3  property, other than manufactured homes, owned by a family or
   73-4  individual and not held or used for the production of income.
   73-5        SECTION .  Section 322.008, Government Code, is amended by
   73-6  adding Subsection (e) to read as follows:
   73-7        (e)  If the foundation school fund budget committee fails to
   73-8  certify an amount to be placed in the foundation school fund under
   73-9  Section 16.256(b), Education Code, by November 1 preceding any
  73-10  regular session, the director shall prepare the general
  73-11  appropriations bill for that session using the funding elements
  73-12  provided by statute for the foundation school program.
  73-13        SECTION .  Section 403.121, Government Code, is amended by
  73-14  adding Subsection (c) to read as follows:
  73-15        (c)  If the foundation school fund budget committee fails to
  73-16  certify an amount to be placed in the foundation school fund under
  73-17  Section 16.256(b), Education Code, by November 1 preceding any
  73-18  regular session, for the purposes of this section the comptroller
  73-19  shall determine the amount to be placed in the fund using the
  73-20  funding elements provided by statute for the foundation school
  73-21  program.
  73-22        SECTION .  Section 1.04, Tax Code, is amended by amending
  73-23  Subdivision (12) to read as follows:
  73-24              (12)  "Taxing unit" means a county, an incorporated
  73-25  city or town (including a home-rule city), a school district, <a
   74-1  county education district,> a special district or authority
   74-2  (including a junior college district, a hospital district, a
   74-3  district created by or pursuant to the Water Code, a mosquito
   74-4  control district, a fire prevention district, or a noxious weed
   74-5  control district), or any other political unit of this state,
   74-6  whether created by or pursuant to the constitution or a local,
   74-7  special, or general law, that is authorized to impose and is
   74-8  imposing ad valorem taxes on property even if the governing body of
   74-9  another political unit determines the tax rate for the unit or
  74-10  otherwise governs its affairs.
  74-11        SECTION .  Section 6.02(b), Tax Code, is amended to read as
  74-12  follows:
  74-13        (b)  A taxing unit <other than a county education district>
  74-14  that has boundaries extending into two or more counties may choose
  74-15  to participate in only one of the appraisal districts.  In that
  74-16  event, the boundaries of the district chosen extend outside the
  74-17  county to the extent of the unit's boundaries.  To be effective,
  74-18  the choice must be approved by resolution of the board of directors
  74-19  of the district chosen.  <A county education district that has
  74-20  boundaries extending into two or more counties must participate in
  74-21  each appraisal district in which one of its component school
  74-22  districts participates for purposes of appraisal of the component
  74-23  school district's territory.>
  74-24        SECTION .  Sections 6.03(c)-(e), Tax Code, are amended to
  74-25  read as follows:
   75-1        (c)  Members of the board of directors are appointed by vote
   75-2  of the governing bodies of the incorporated cities and towns, the
   75-3  school districts <other than the county education district>, and,
   75-4  if entitled to vote, the conservation and reclamation districts
   75-5  that participate in the district and of the county.  A governing
   75-6  body may cast all its votes for one candidate or distribute them
   75-7  among candidates for any number of directorships.  Conservation and
   75-8  reclamation districts are not entitled to vote unless at least one
   75-9  conservation and reclamation district in the district delivers to
  75-10  the chief appraiser a written request to nominate and vote on the
  75-11  board of directors by June 1 of each odd-numbered year.  On receipt
  75-12  of a request, the chief appraiser shall certify a list by June 15
  75-13  of all eligible conservation and reclamation districts that are
  75-14  imposing taxes and that participate in the district.
  75-15        (d)  The voting entitlement of a taxing unit that is entitled
  75-16  to vote for directors is determined by dividing the total dollar
  75-17  amount of property taxes imposed in the district by the taxing unit
  75-18  for the preceding tax year by the sum of the total dollar amount of
  75-19  property taxes imposed in the district for that year by each taxing
  75-20  unit that is entitled to vote, by multiplying the quotient by
  75-21  1,000, and by rounding the product to the nearest whole number.
  75-22  That number is multiplied by the number of directorships to be
  75-23  filled.  <For a school district, the total dollar amount of
  75-24  property taxes imposed in the district by the unit is considered to
  75-25  be the sum of the taxes imposed by the district and the revenue
   76-1  received by the district from the county education district.>  A
   76-2  taxing unit participating in two or more districts is entitled to
   76-3  vote in each district in which it participates, but only the taxes
   76-4  imposed in a district are used to calculate voting entitlement in
   76-5  that district.
   76-6        (e)  The chief appraiser shall calculate the number of votes
   76-7  to which each taxing unit other than a conservation and reclamation
   76-8  district is entitled and shall deliver written notice to each of
   76-9  those units of its voting entitlement before October 1 of each
  76-10  odd-numbered year.  The chief appraiser shall deliver the notice:
  76-11              (1)  to the county judge and each commissioner of the
  76-12  county served by the appraisal district;
  76-13              (2)  to the presiding officer of the governing body of
  76-14  each city or town participating in the appraisal district, to the
  76-15  city manager of each city or town having a city manager, and to the
  76-16  city secretary or clerk, if there is one, of each city or town that
  76-17  does not have a city manager; and
  76-18              (3)  to the presiding officer of the governing body of
  76-19  each school district<, other than the county education district,>
  76-20  participating in the district and to the superintendent of each
  76-21  <those> school district <districts>.
  76-22        SECTION .  Sections 6.06(d) and (h), Tax Code, are amended to
  76-23  read as follows:
  76-24        (d)  Each taxing unit participating in the district<, other
  76-25  than a county education district,> is allocated a portion of the
   77-1  amount of the budget equal to the proportion that the total dollar
   77-2  amount of property taxes imposed in the district by the unit for
   77-3  the tax year in which the budget proposal is prepared bears to the
   77-4  sum of the total dollar amount of property taxes imposed in the
   77-5  district by each participating unit for that year.  <For a school
   77-6  district, other than a county education district, the total dollar
   77-7  amount of property taxes imposed in the district by the unit is
   77-8  considered to be the sum of the taxes imposed by the district and
   77-9  the revenue received by the district from the county education
  77-10  district.>  If a taxing unit participates in two or more districts,
  77-11  only the taxes imposed in a district are used to calculate the
  77-12  unit's cost allocations in that district.  If the number of real
  77-13  property parcels in a taxing unit is less than 5 percent of the
  77-14  total number of real property parcels in the district and the
  77-15  taxing unit imposes in excess of 25 percent of the total amount of
  77-16  the property taxes imposed in the district by all of the
  77-17  participating taxing units for a year, the unit's allocation may
  77-18  not exceed a percentage of the appraisal district's budget equal to
  77-19  three times the unit's percentage of the total number of real
  77-20  property parcels appraised by the district.
  77-21        (h)  If a newly formed taxing unit or a taxing unit that did
  77-22  not impose taxes in the preceding year<, other than a county
  77-23  education district,> imposes taxes in any tax year, that unit is
  77-24  allocated a portion of the amount budgeted to operate the district
  77-25  as if it had imposed taxes in the preceding year, except that the
   78-1  amount of taxes the unit imposes in the current year is used to
   78-2  calculate its allocation.  Before the amount of taxes to be imposed
   78-3  for the current year is known, the allocation may be based on an
   78-4  estimate to which the district board of directors and the governing
   78-5  body of the unit agree, and the payments made after that amount is
   78-6  known shall be adjusted to reflect the amount imposed.  The
   78-7  payments of a newly formed taxing unit that has no source of funds
   78-8  are postponed until the unit has received adequate tax or other
   78-9  revenues.
  78-10        SECTION .  Sections 11.13(d), (e), (m), and (n), Tax Code,
  78-11  are amended to read as follows:
  78-12        (d)  In addition to the exemptions provided by Subsections
  78-13  (b) and (c) of this section, an individual who is disabled or is 65
  78-14  or older is entitled to an exemption from taxation by a taxing unit
  78-15  of a portion (the amount of which is fixed as provided by
  78-16  Subsection (e) of this section) of the appraised value of his
  78-17  residence homestead if the exemption is adopted either:
  78-18              (1)  by the governing body of the taxing unit <other
  78-19  than a county education district>; or
  78-20              (2)  by a favorable vote of a majority of the qualified
  78-21  voters of the taxing unit at an election called by the governing
  78-22  body of the taxing unit <other than a county education district>,
  78-23  and the governing body shall call the election on the petition of
  78-24  at least 20 percent of the number of qualified voters who voted in
  78-25  the preceding election of the taxing unit<; or>
   79-1              <(3)  by a favorable vote of a majority of the
   79-2  qualified voters of a county education district at an election held
   79-3  under Section 20.950, Education Code>.
   79-4        (e)  The amount of an exemption adopted as provided by
   79-5  Subsection (d) of this section if $3,000 of the appraised value of
   79-6  the residence homestead unless a larger amount is specified by:
   79-7              (1)  the governing body authorizing the exemption if
   79-8  the exemption is authorized as provided by Subdivision (1) of
   79-9  Subsection (d) of this section; or
  79-10              (2)  the petition for the election if the exemption is
  79-11  authorized as provided by Subdivision (2) of Subsection (d) of this
  79-12  section<; or>
  79-13              <(3)  the proposition approved at an election held
  79-14  under Section 20.950, Education Code>.
  79-15        (m)  In this section:
  79-16              (1)  "Disabled" means under a disability for purposes
  79-17  of payment of disability insurance benefits under Federal Old-Age,
  79-18  Survivors, and Disability Insurance.
  79-19              (2)  "School district" means a political subdivision
  79-20  organized to provide general elementary and secondary public
  79-21  education. <"School district" includes a county education district
  79-22  established by the consolidation of the local school districts in
  79-23  its boundaries for the limited purpose of exercising a portion of
  79-24  the taxing power previously authorized by the voters in those
  79-25  school districts.>  "School district" does not include a junior
   80-1  college district or a political subdivision organized to provide
   80-2  special education services.
   80-3        (n)  In addition to any other exemptions provided by this
   80-4  section, an individual is entitled to an exemption from taxation by
   80-5  a taxing unit <other than a county education district> of a
   80-6  percentage of the appraised value of his residence homestead if the
   80-7  exemption is adopted by the governing body of the taxing unit
   80-8  before May 1 in the manner provided by law for official action by
   80-9  the body.  If the percentage set by the taxing unit produces an
  80-10  exemption in a tax year of less than $5,000 when applied to a
  80-11  particular residence homestead, the individual is entitled to an
  80-12  exemption of $5,000 of the appraised value.  The percentage adopted
  80-13  by the taxing unit may not exceed 20 percent.  <In addition to any
  80-14  other exemptions provided by this section, an individual is
  80-15  entitled to an exemption from taxation by a county education
  80-16  district of a percentage of the appraised value of his residence
  80-17  homestead if the exemption is adopted by the voters of the district
  80-18  at an election held in the district for that purpose under Section
  80-19  20.946, Education Code.  If the percentage set by the voters
  80-20  produces an exemption in a tax year of less than $5,000 when
  80-21  applied to a particular residence homestead, the individual is
  80-22  entitled to an exemption of $5,000 of the appraised value.  The
  80-23  percentage adopted by the voters may not exceed 20 percent.>
  80-24        SECTION .  Sections 11.14(c) and (e), Tax Code, are amended
  80-25  to read as follows:
   81-1        (c)  The governing body of a taxing unit<, other than a
   81-2  county education district,> by resolution or order, depending upon
   81-3  the method prescribed by law for official action by that governing
   81-4  body, may provide for taxation of tangible personal property
   81-5  exempted under Subsection (a).  <The voters of a county education
   81-6  district, by an election held under Section 20.951, Education Code,
   81-7  may provide for taxation of tangible personal property exempted
   81-8  under Subsection (a).>  If a taxing unit provides for taxation of
   81-9  tangible personal property as provided by this subsection, the
  81-10  exemption prescribed by Subsection (a) does not apply to that unit.
  81-11        (e)  A political subdivision <other than a county education
  81-12  district> choosing to tax property otherwise made exempt by this
  81-13  section, pursuant to Article VIII, Section 1(e), of the Texas
  81-14  Constitution, may not do so until the governing body of the
  81-15  political subdivision has held a public hearing on the matter,
  81-16  after having given notice of the hearing at the times and in the
  81-17  manner required by this subsection, and has found that the action
  81-18  will be in the public interest of all the residents of that
  81-19  political subdivision.  At the hearing, all interested persons are
  81-20  entitled to speak and present evidence for or against taxing the
  81-21  property.  Not later than the 30th day prior to the date of a
  81-22  hearing held under this subsection, notice of the hearing must be:
  81-23              (1)  published in a newspaper having general
  81-24  circulation in the political subdivision and in a section of the
  81-25  newspaper other than the advertisement section;
   82-1              (2)  not less than one-half of one page in size; and
   82-2              (3)  republished on not less than three separate days
   82-3  during the period beginning with the 10th day prior to the hearing
   82-4  and ending with the actual date of the hearing.
   82-5        SECTION .  Each county education district created by S.B. 351
   82-6  and H.B. 2885, Acts of the 72nd Legislature, Regular Session, 1991,
   82-7  is abolished.
   82-8        SECTION .  (a)  On the effective date of this Act, the funds
   82-9  and other assets of a county education district are transferred to
  82-10  its component school districts in the manner provided by rule of
  82-11  the commissioner of education.
  82-12        (b)  On the effective date of this Act, the contracts and
  82-13  other liabilities of a county education district are transferred to
  82-14  its component school districts in the manner provided by rule of
  82-15  the commissioner of education.
  82-16        (c)  The component school district of a county education
  82-17  district may collect and use or distribute taxes imposed by the
  82-18  county education district that are delinquent in the manner
  82-19  provided by rule of the commissioner of education.
  82-20        (d)  The commissioner of education shall adopt rules for the
  82-21  maintenance of county education district records.
  82-22        (e)  The commissioner of education shall adopt rules required
  82-23  under this section not later than July 31, 1993.
  82-24        SECTION .  For 1993, a school district's effective
  82-25  maintenance rate under Section 26.08(a), Tax Code, and its
   83-1  effective maintenance and operations rate under Section 26.08(e),
   83-2  Tax Code, is increased by an amount equal to the 1992 tax rate of
   83-3  the county education district in which the school district was
   83-4  included.
   83-5        SECTION .  (a)  The following provisions of the Education
   83-6  Code are repealed:
   83-7              (1)  Sections 1.05, 11.86(h), 14.063(c) and (e), and
   83-8  20.09; and
   83-9              (2)  Subchapter G, Chapter 20.
  83-10        (b)  The following sections of the Tax Code are
  83-11  repealed:  6.061(f), 26.08(i), 26.12(e), and 312.002(e) and (f).
  83-12        SECTION .  This Act applies beginning with the 1993-1994
  83-13  school year, but only if a constitutional amendment authorizing the
  83-14  redistribution of certain ad valorem taxes levied and collected by
  83-15  school districts is approved by the voters.  If that amendment is
  83-16  not approved, this Act has no effect.
  83-17        SECTION .  The importance of this legislation and the crowded
  83-18  condition of the calendars in both houses create an emergency and
  83-19  an imperative public necessity that the constitutional rule
  83-20  requiring bills to be read on three several days in each house be
  83-21  suspended, and this rule is hereby suspended, and that this Act
  83-22  take effect and be in force from and after its passage, and it is
  83-23  so enacted.