By Grusendorf                                         H.B. No. 2412
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to public education; granting the power of eminent domain.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4               ARTICLE 1.  COUNTY FINANCE DISTRICTS AND
    1-5                        CAMPUS-BASED GOVERNANCE
    1-6        SECTION 1.01.  Title 2, Education Code, is amended by adding
    1-7  Chapter 35 to read as follows:
    1-8   CHAPTER 35.  COUNTY FINANCE DISTRICTS AND CAMPUS-BASED GOVERNANCE
    1-9                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-10        Sec. 35.001.  APPLICATION.  (a)  Public schools are financed
   1-11  by a county finance district.  Each public school is governed by a
   1-12  campus school board.
   1-13        (b)  A power or duty under this code applicable to the board
   1-14  of trustees of an independent school district that relates to the
   1-15  provision of school facilities or to public school financing
   1-16  applies to the board of trustees of a county finance district.  All
   1-17  other powers or duties under this code applicable to the board of
   1-18  an independent school district apply to each campus school board.
   1-19  The powers and duties of the superintendent of an independent
   1-20  school district in regard to a campus apply to the principal of the
   1-21  campus.
   1-22        (c)  As necessary to provide for efficient and proper
   1-23  administration, the commissioner of education may by rule modify
    2-1  the disposition of powers and duties under Subsection (b) of this
    2-2  section to designate a different public school entity or officer
    2-3  that is authorized for purposes of this chapter to exercise a power
    2-4  under this code or required to perform a duty under this code.
    2-5        Sec. 35.002.  ENROLLMENT.  A child who would be entitled to
    2-6  admission to a public school in a school district in the county
    2-7  under Section 21.031 of this code is entitled to enroll at any
    2-8  public school campus in the county that provides educational
    2-9  services for the child's grade level.
   2-10            (Sections 35.003-35.020 reserved for expansion
   2-11                SUBCHAPTER B.  COUNTY FINANCE DISTRICTS
   2-12        Sec. 35.021.  DISTRICTS.  The territory of the county
   2-13  constitutes a county finance district established to provide
   2-14  facilities and to provide maintenance and operation revenue for the
   2-15  public schools in the county.
   2-16        Sec. 35.022.  BOARD.  (a)  Each county finance district is
   2-17  governed by a board of five directors.
   2-18        (b)  The county judge and each member of the commissioners
   2-19  court shall appoint one member to the board.
   2-20        (c)  Each member of the board shall serve a term of four
   2-21  years.
   2-22        (d)  The board shall fill a vacancy in a board office for the
   2-23  unexpired term.
   2-24        (e)  The board shall elect from its membership a president
   2-25  and a secretary.
    3-1        Sec. 35.023.  GENERAL POWERS.  (a)  The board of trustees of
    3-2  a county finance district is a body corporate and in the name of
    3-3  the district may acquire and hold real and personal property, sue
    3-4  and be sued, and receive bequests, donations, or other funds.
    3-5        (b)  All rights and titles to property of the district are
    3-6  vested in the board of trustees.
    3-7        Sec. 35.024.  TAXES; BONDS.  (a)  The county finance district
    3-8  is the only entity that may levy taxes in the county for the
    3-9  support of the public schools in the county.  The district has the
   3-10  same authority as an independent school district to levy and
   3-11  collect taxes.  The district may also issue bonds in the same
   3-12  manner as an independent school district.
   3-13        (b)  The county tax assessor-collector shall act as
   3-14  assessor-collector for the district.
   3-15        Sec. 35.025.  DISTRIBUTION OF REVENUE; FACILITIES.  (a)  The
   3-16  board, after withholding the minimum amount necessary for the
   3-17  performance of the board's limited functions, shall distribute
   3-18  maintenance and operations taxes collected under Chapter 20 of this
   3-19  code and all state funds received for the maintenance and operation
   3-20  of public schools to the campuses in the county in an amount per
   3-21  student according to a formula developed by the commissioner of
   3-22  education considering the costs of educating different types of
   3-23  students.
   3-24        (b)  The board shall provide facilities that the board
   3-25  considers appropriate for the needs of the public school students
    4-1  in the county at the number of campuses and at the locations that
    4-2  the board considers appropriate.
    4-3        Sec. 35.026.  TRANSPORTATION.  A county finance district may
    4-4  contract for transportation services for the public school campuses
    4-5  in the county.  If it contracts for transportation services, the
    4-6  board may retain from the amount otherwise distributed under
    4-7  Section 35.025(a) of this code the lesser of:
    4-8              (1)  the amount of state funds allocated for
    4-9  transportation and the corresponding amount of maintenance and
   4-10  operation tax revenue necessary to provide the transportation; or
   4-11              (2)  the actual costs of the transportation services.
   4-12        Sec. 35.027.  EMINENT DOMAIN.  A county finance district has
   4-13  the power by the exercise of the right of eminent domain to acquire
   4-14  the fee simple title to real property for the purpose of securing
   4-15  sites for school buildings or for other purposes necessary for the
   4-16  operation of the public school campuses in the county finance
   4-17  district.
   4-18            (Sections 35.028-35.040 reserved for expansion
   4-19                  SUBCHAPTER C.  LOCAL CAMPUS CONTROL
   4-20        Sec. 35.041.  CAMPUS SCHOOL BOARD.  (a)  Each public school
   4-21  in the county is under the control and management of a campus
   4-22  school board.
   4-23        (b)  Each campus school board consists of five members who
   4-24  are selected annually, three of whom are parents of students
   4-25  enrolled at the campus and two of whom are teachers who teach at
    5-1  the campus.  The parent members are selected by the parents of the
    5-2  students enrolled at the campus, and the teacher members are
    5-3  selected by the teachers who teach at the campus.  The members of
    5-4  the campus school board are selected in the manner provided by rule
    5-5  of the State Board of Education.
    5-6        (c)  Each member of a campus school board shall qualify by
    5-7  taking the official oath of office.  The members shall select a
    5-8  president and a secretary-treasurer.
    5-9        Sec. 35.042.  GENERAL POWERS AND DUTIES.  (a)  A campus
   5-10  school board is a body corporate and in the name of the campus may
   5-11  acquire and hold personal property, sue and be sued, and receive
   5-12  bequests, donations, or other funds.
   5-13        (b)  The campus school board has the exclusive power to
   5-14  manage and govern the campus.
   5-15        (c)  All rights and titles to the personal property of the
   5-16  campus are vested in the campus school board.
   5-17        (d)  The campus school board may contract for the provision
   5-18  of services at the campus.
   5-19        (e)  The campus school board may adopt rules that the board
   5-20  considers proper.
   5-21        Sec. 35.043.  CONTRACTS WITH OFFICERS AND TEACHERS.  (a)  The
   5-22  campus school board may employ by contract one or more principals,
   5-23  other executive officers, and teachers for terms not to exceed one
   5-24  year.  The board may not offer a contract to a teacher unless the
   5-25  teacher has been recommended to the board by the principal.
    6-1        (b)  The board and the principal shall use a personnel agency
    6-2  or cooperative to assist in the selection of staff to ensure
    6-3  compliance with all local, state, and federal laws and regulations.
    6-4        Sec. 35.044.  BUDGET.  (a)  On or before a date set by the
    6-5  State Board of Education, the campus school board shall adopt a
    6-6  budget covering all estimated revenue and proposed expenditures of
    6-7  the campus for the next succeeding fiscal year.
    6-8        (b)  The budget must be prepared according to generally
    6-9  accepted accounting principles.
   6-10        (c)  When the budget is prepared, the president shall call a
   6-11  meeting of the board, giving 10 days' public notice and stating
   6-12  that the purpose of the meeting is the adoption of a budget for the
   6-13  succeeding fiscal year.
   6-14        (d)  Public funds of the campus may not be expended in any
   6-15  manner other than as provided by the budget adopted by the board.
   6-16  The board may amend the budget or adopt a supplementary emergency
   6-17  budget to cover necessary unforeseen expenses.
   6-18        Sec. 35.045.  ACCOUNTING SYSTEM.  (a)  The campus school
   6-19  board shall adopt a standard school fiscal accounting system that
   6-20  conforms with generally accepted accounting principles.
   6-21        (b)  The campus school board shall maintain a record of all
   6-22  revenues received and of all expenditures made during the fiscal
   6-23  year for which a budget is adopted.
   6-24        SECTION 1.02.  Subchapter A, Chapter 16, Education Code, is
   6-25  amended by adding Section 16.004 to read as follows:
    7-1        Sec. 16.004.  COUNTY FINANCE DISTRICTS.  A county finance
    7-2  district established under Chapter 35 of this code is entitled to
    7-3  funding under this chapter.  The county finance district shall
    7-4  distribute funds received under this chapter, other than
    7-5  transportation funds or second tier funds generated by debt taxes,
    7-6  to the public school campuses in the county as provided by a
    7-7  formula adopted by the commissioner of education.
    7-8        SECTION 1.03.  Section 16.051, Education Code, is amended to
    7-9  read as follows:
   7-10        Sec. 16.051.  REQUIRED COMPLIANCE.  In order for a county
   7-11  finance district to distribute funds under this chapter based on
   7-12  the average daily attendance of students at a public school campus
   7-13  in the district, the campus <to receive financial support from the
   7-14  Foundation School Fund, a school district> must comply with the
   7-15  standards established by the commissioner of education <set forth
   7-16  in this subchapter>.
   7-17        SECTION 1.04.  Section 16.251(b), Education Code, is amended
   7-18  to read as follows:
   7-19        (b)  The program shall be financed by:
   7-20              (1)  ad valorem tax revenue generated by <an equalized
   7-21  uniform> county finance <education> district effort;
   7-22              (2)  <ad valorem tax revenue generated by local school
   7-23  district effort in excess of the equalized uniform county education
   7-24  district effort;>
   7-25              <(3)>  state available school funds distributed in
    8-1  accordance with law; and
    8-2              (3) <(4)>  state funds appropriated for the purposes of
    8-3  public school education and allocated to each county finance
    8-4  district in an amount sufficient to finance the cost of each
    8-5  district's Foundation School Program not covered by other funds
    8-6  specified in this subsection.
    8-7        SECTION 1.05.  Sections 16.252(a), (d), and (e), Education
    8-8  Code, are amended to read as follows:
    8-9        (a)  Each county finance <education> district's share of the
   8-10  Foundation School Program shall be an amount determined by the
   8-11  following formula:
   8-12  where:
   8-13              "LFA" is the county finance <education> district's
   8-14  local share;
   8-15              "TR" is a tax rate which for each hundred dollars of
   8-16  valuation is $0.72 for the 1991-1992 school year, $0.82 for the
   8-17  1992-1993 school year, <$0.92 for the 1993-1994 school year,> and
   8-18  <$1.00> for each school year thereafter; and
   8-19              "DPV" is the taxable value of property in the county
   8-20  <education district> for the prior tax year determined under
   8-21  Section 11.86 of this code.
   8-22        (d)  A county finance <education> district shall raise its
   8-23  total local share of the foundation school program.  <The funds
   8-24  shall be reallocated to the school districts in the county
   8-25  education district in the manner prescribed by Subchapter J of this
    9-1  chapter.>
    9-2        (e)  The commissioner of education shall hear appeals from
    9-3  county finance <education> districts which have experienced a rapid
    9-4  decline in tax base used in calculating the local fund assignment,
    9-5  exceeding eight percent of prior year, that is beyond the control
    9-6  of the board of directors <trustees> of the county finance
    9-7  <education> district.  The commissioner of education may adjust the
    9-8  county finance <education> district's taxable values for local fund
    9-9  assignment purposes for such losses in value exceeding eight
   9-10  percent and thereby adjust the local fund assignment to reflect the
   9-11  local current year taxable value.  The decision of the commissioner
   9-12  of education shall be final.  An adjustment does not affect the
   9-13  local fund assignment of any other county finance <education>
   9-14  district.
   9-15        SECTION 1.06.  Sections 16.254(a)-(c), Education Code, are
   9-16  amended to read as follows:
   9-17        (a)  The commissioner of education shall determine annually:
   9-18              (1)  the amount of money necessary to operate a
   9-19  Foundation School Program in each county finance <school> district;
   9-20              (2)  the amount of <local funds due the school district
   9-21  from> the local fund assignment of the county finance <education>
   9-22  district; and
   9-23              (3)  the amount of state available school funds
   9-24  distributed to each county finance <school> district.
   9-25        (b)  The commissioner of education shall then grant to each
   10-1  county finance <school> district from the Foundation School Program
   10-2  appropriation the amount of funds necessary to provide the
   10-3  difference between Subdivision (1) and the sum of Subdivisions (2)
   10-4  and (3) of Subsection (a) of this section.
   10-5        (c)  The commissioner shall approve warrants to each county
   10-6  finance <school> district equaling the amount of its grant.
   10-7  Warrants for all money expended according to the provisions of this
   10-8  chapter shall be approved and transmitted to treasurers or
   10-9  depositories of county finance <school> districts in the same
  10-10  manner as warrants for state apportionment are transmitted.
  10-11        SECTION 1.07.  Section 16.302(a), Education Code, is amended
  10-12  to read as follows:
  10-13        (a)  Each county finance <school> district is guaranteed a
  10-14  specified amount per weighted student in state and local funds for
  10-15  each cent of tax effort over that required for the local fund
  10-16  assignment of the county finance <education> district <in which the
  10-17  school district is located> up to the maximum level specified in
  10-18  this subchapter.  The amount of state support, subject only to the
  10-19  maximum amount under Section 16.303 of this code, is determined by
  10-20  the formula:
  10-21  where:
  10-22              "GYA" is the guaranteed yield amount of state funds to
  10-23  be allocated to the district;
  10-24              "GL" is the dollar amount guaranteed level of state and
  10-25  local funds per weighted student per cent of tax effort, which is
   11-1  <$21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
   11-2  school year,> $26 for the 1993-1994 school year<,> and <$28> for
   11-3  each school year thereafter, or a greater amount for any year
   11-4  provided by appropriation, or a greater amount adopted by the
   11-5  foundation school fund budget committee under Section 16.256(d) of
   11-6  this code <for the 1993-1994 or 1994-1995 school year or
   11-7  thereafter>;
   11-8              "WADA", except as provided by Section 16.206 of this
   11-9  code, is the number of weighted students in average daily
  11-10  attendance, which is calculated by dividing the sum of the county
  11-11  finance <school> district's allotments under Subchapters C and D of
  11-12  this chapter, less any allotments to the district for
  11-13  transportation, career ladder supplements, or technology and 50
  11-14  percent of the adjustment under Section 16.102 of this code, by the
  11-15  basic allotment for the applicable year;
  11-16              "DTR" is the district enrichment and facilities tax
  11-17  rate of the county finance <school> district, which is determined
  11-18  by dividing the total amount of taxes collected by the <school>
  11-19  district for the applicable school year by the quotient of the
  11-20  district's taxable value of property as determined under Section
  11-21  11.86 of this code divided by 100; and
  11-22              "LR" is the local revenue, which is determined by
  11-23  multiplying "DTR" by the quotient of the district's taxable value
  11-24  of property as determined under Section 11.86 of this code divided
  11-25  by 100.
   12-1        SECTION 1.08.  Section 11.86(a), Education Code, is amended
   12-2  to read as follows:
   12-3        (a)  The comptroller shall conduct an annual study using
   12-4  comparable sales and generally accepted auditing and sampling
   12-5  techniques to determine the total value of all taxable property in
   12-6  each county finance <education school> district <and each of its
   12-7  component school districts>.  The study shall determine the taxable
   12-8  value of all property and of each category of property within the
   12-9  district and the productivity value of all land that qualifies for
  12-10  appraisal on the basis of its productive capacity and for which the
  12-11  owner has applied for and received a productivity appraisal.  In
  12-12  conducting the study, the comptroller shall review the appraisal
  12-13  standards, procedures, and methodology used by each appraisal
  12-14  district to determine the taxable value of property in each school
  12-15  district.  The review must test the validity of the taxable values
  12-16  assigned to each category of property by the appraisal district:
  12-17              (1)  using, if appropriate, samples selected through
  12-18  generally accepted sampling techniques; and
  12-19              (2)  according to generally accepted standard
  12-20  valuation, statistical compilation, and analysis techniques.  If
  12-21  the comptroller finds in the annual study that generally accepted
  12-22  appraisal standards and practices were used by the appraisal
  12-23  district in valuing a particular category of property, and that the
  12-24  taxable values assigned to each category of property by the
  12-25  appraisal district are valid, the appraisal roll value of that
   13-1  category of property is presumed to represent taxable value.  In
   13-2  the absence of such a presumption, the comptroller shall estimate
   13-3  the taxable value of that category of property using generally
   13-4  accepted standard valuation, statistical compilation, and analysis
   13-5  techniques.  For the purposes of this section, "taxable value"
   13-6  means market value less:
   13-7              (1)  the total dollar amount of any exemptions of part
   13-8  but not all of the value of taxable property required by the
   13-9  constitution or a statute that a district lawfully granted in the
  13-10  year that is the subject of the study;
  13-11              (2)  the total dollar amount of any exemptions granted
  13-12  within a reinvestment zone under agreements authorized by the
  13-13  Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
  13-14  Code);
  13-15              (3)  the total dollar amount of any captured appraised
  13-16  value of property that is located in a reinvestment zone and that
  13-17  is eligible for tax increment financing under the Tax Increment
  13-18  Financing Act (Chapter 311, Tax Code);
  13-19              (4)  the total dollar amount of any exemptions granted
  13-20  under Section 11.251, Tax Code;
  13-21              (5)  the difference between the market value and the
  13-22  productivity value of land that qualifies for appraisal on the
  13-23  basis of its productive capacity, except that the productivity
  13-24  value may not exceed the fair market value of the land;
  13-25              (6)  the portion of the appraised value of residence
   14-1  homesteads of the elderly on which school district taxes are not
   14-2  imposed in the year that is the subject of the study, calculated as
   14-3  if the residence homesteads were appraised at the full value
   14-4  required by law;
   14-5              (7)  a portion of the market value of property not
   14-6  otherwise fully taxable by the district at market value because of
   14-7  action required by statute or the Texas Constitution that, if the
   14-8  tax rate adopted by the district is applied to it, produces an
   14-9  amount equal to the difference between the tax that the district
  14-10  would have imposed on the property if the property were fully
  14-11  taxable at market value and the tax that the district is actually
  14-12  authorized to impose on the property; and
  14-13              (8)  the market value of all tangible personal
  14-14  property, other than manufactured homes, owned by a family or
  14-15  individual and not held or used for the production of income.
  14-16        SECTION 1.09.  Section 21.063, Education Code, is amended to
  14-17  read as follows:
  14-18        Sec. 21.063.  Tuition Fee for Transfer Students.  The
  14-19  receiving district may charge a tuition fee to the extent that the
  14-20  district's actual expenditure per student in average daily
  14-21  attendance, determinable by its board of trustees, exceeds the sum
  14-22  the district benefits from state aid sources as provided in Section
  14-23  21.062 of this code <and county education funds distributed under
  14-24  Subchapter J, Chapter 16, of this code>.  However, unless a tuition
  14-25  fee is prescribed and set out in transfer agreement prior to its
   15-1  execution by the parties, no increase in tuition charge shall be
   15-2  made for the year of that transfer that exceeds the tuition charge,
   15-3  if any, of the preceding school year.
   15-4        SECTION 1.10.  Section 1.04, Tax Code, is amended  by
   15-5  amending Subdivision (12) and adding Subdivision (20) to read as
   15-6  follows:
   15-7              (12)  "Taxing unit" means a county, an incorporated
   15-8  city or town (including a home-rule city), <a school district,> a
   15-9  county finance <education> district, a special district or
  15-10  authority (including a junior college district, a hospital
  15-11  district, a district created by or pursuant to the Water Code, a
  15-12  mosquito control district, a fire prevention district, or a noxious
  15-13  weed control district), or any other political unit of this state,
  15-14  whether created by or pursuant to the constitution or a local,
  15-15  special, or general law, that is authorized to impose and is
  15-16  imposing ad valorem taxes on property even if the governing body of
  15-17  another political unit determines the tax rate for the unit or
  15-18  otherwise governs its affairs.
  15-19              (20)  "County finance district" means a county finance
  15-20  district created under Chapter 35, Education Code.
  15-21        SECTION 1.11.  Section 6.02(b), Tax Code, is amended to read
  15-22  as follows:
  15-23        (b)  A taxing unit <other than a county education district>
  15-24  that has boundaries extending into two or more counties may choose
  15-25  to participate in only one of the appraisal districts.  In that
   16-1  event, the boundaries of the district chosen extend outside the
   16-2  county to the extent of the unit's boundaries.  To be effective,
   16-3  the choice must be approved by resolution of the board of directors
   16-4  of the district chosen.  <A county education district that has
   16-5  boundaries extending into two or more counties must participate in
   16-6  each appraisal district in which one of its component school
   16-7  districts participates for purposes of appraisal of the component
   16-8  school district's territory.>
   16-9        SECTION 1.12.  Sections 6.03(c)-(e), Tax Code, are amended to
  16-10  read as follows:
  16-11        (c)  Members of the board of directors are appointed by vote
  16-12  of the governing bodies of the incorporated cities and towns, the
  16-13  county finance <school> districts <other than the county education
  16-14  district>, and, if entitled to vote, the conservation and
  16-15  reclamation districts that participate in the district and of the
  16-16  county.  A governing body may cast all its votes for one candidate
  16-17  or distribute them among candidates for any number of
  16-18  directorships.  Conservation and reclamation districts are not
  16-19  entitled to vote unless at least one conservation and reclamation
  16-20  district in the district delivers to the chief appraiser a written
  16-21  request to nominate and vote on the board of directors by June 1 of
  16-22  each odd-numbered year.  On receipt of a request, the chief
  16-23  appraiser shall certify a list by June 15 of all eligible
  16-24  conservation and reclamation districts that are imposing taxes and
  16-25  that participate in the district.
   17-1        (d)  The voting entitlement of a taxing unit that is entitled
   17-2  to vote for directors is determined by dividing the total dollar
   17-3  amount of property taxes imposed in the district by the taxing unit
   17-4  for the preceding tax year by the sum of the total dollar amount of
   17-5  property taxes imposed in the district for that year by each taxing
   17-6  unit that is entitled to vote, by multiplying the quotient by
   17-7  1,000, and by rounding the product to the nearest whole number.
   17-8  That number is multiplied by the number of directorships to be
   17-9  filled.  <For a school district, the total dollar amount of
  17-10  property taxes imposed in the district by the unit is considered to
  17-11  be the sum of the taxes imposed by the district and the revenue
  17-12  received by the district from the county education district.>  A
  17-13  taxing unit participating in two or more districts is entitled to
  17-14  vote in each district in which it participates, but only the taxes
  17-15  imposed in a district are used to calculate voting entitlement in
  17-16  that district.
  17-17        (e)  The chief appraiser shall calculate the number of votes
  17-18  to which each taxing unit other than a conservation and reclamation
  17-19  district is entitled and shall deliver written notice to each of
  17-20  those units of its voting entitlement before October 1 of each
  17-21  odd-numbered year.  The chief appraiser shall deliver the notice:
  17-22              (1)  to the county judge and each commissioner of the
  17-23  county served by the appraisal district;
  17-24              (2)  to the presiding officer of the governing body of
  17-25  each city or town participating in the appraisal district, to the
   18-1  city manager of each city or town having a city manager, and to the
   18-2  city secretary or clerk, if there is one, of each city or town that
   18-3  does not have a city manager; and
   18-4              (3)  to the presiding officer of the governing body of
   18-5  the county finance <each school> district<, other than the county
   18-6  education district,> participating in the district <and to the
   18-7  superintendent of those school districts>.
   18-8        SECTION 1.13.  Sections 6.06(d) and (h), Tax Code, are
   18-9  amended to read as follows:
  18-10        (d)  Each taxing unit participating in the district<, other
  18-11  than a county education district,> is allocated a portion of the
  18-12  amount of the budget equal to the proportion that the total dollar
  18-13  amount of property taxes imposed in the district by the unit for
  18-14  the tax year in which the budget proposal is prepared bears to the
  18-15  sum of the total dollar amount of property taxes imposed in the
  18-16  district by each participating unit for that year.  <For a school
  18-17  district, other than a county education district, the total dollar
  18-18  amount of property taxes imposed in the district by the unit is
  18-19  considered to be the sum of the taxes imposed by the district and
  18-20  the revenue received by the district from the county education
  18-21  district.>  If a taxing unit participates in two or more districts,
  18-22  only the taxes imposed in a district are used to calculate the
  18-23  unit's cost allocations in that district.  If the number of real
  18-24  property parcels in a taxing unit is less than 5 percent of the
  18-25  total number of real property parcels in the district and the
   19-1  taxing unit imposes in excess of 25 percent of the total amount of
   19-2  the property taxes imposed in the district by all of the
   19-3  participating taxing units for a year, the unit's allocation may
   19-4  not exceed a percentage of the appraisal district's budget equal to
   19-5  three times the unit's percentage of the total number of real
   19-6  property parcels appraised by the district.
   19-7        (h)  If a newly formed taxing unit or a taxing unit that did
   19-8  not impose taxes in the preceding year<, other than a county
   19-9  education district,> imposes taxes in any tax year, that unit is
  19-10  allocated a portion of the amount budgeted to operate the district
  19-11  as if it had imposed taxes in the preceding year, except that the
  19-12  amount of taxes the unit imposes in the current year is used to
  19-13  calculate its allocation.  Before the amount of taxes to be imposed
  19-14  for the current year is known, the allocation may be based on an
  19-15  estimate to which the district board of directors and the governing
  19-16  body of the unit agree, and the payments made after that amount is
  19-17  known shall be adjusted to reflect the amount imposed.  The
  19-18  payments of a newly formed taxing unit that has no source of funds
  19-19  are postponed until the unit has received adequate tax or other
  19-20  revenues.
  19-21        SECTION 1.14.  Sections 11.13(d), (e), (m), and (n), Tax
  19-22  Code, are amended to read as follows:
  19-23        (d)  In addition to the exemptions provided by Subsections
  19-24  (b) and (c) of this section, an individual who is disabled or is 65
  19-25  or older is entitled to an exemption from taxation by a taxing unit
   20-1  of a portion (the amount of which is fixed as provided by
   20-2  Subsection (e) of this section) of the appraised value of his
   20-3  residence homestead if the exemption is adopted either:
   20-4              (1)  by the governing body of the taxing unit <other
   20-5  than a county education district>; or
   20-6              (2)  by a favorable vote of a majority of the qualified
   20-7  voters of the taxing unit at an election called by the governing
   20-8  body of a taxing unit <other than a county education district>, and
   20-9  the governing body shall call the election on the petition of at
  20-10  least 20 percent of the number of qualified voters who voted in the
  20-11  preceding election of the taxing unit<; or>
  20-12              <(3)  by a favorable vote of a majority of the
  20-13  qualified voters of a county education district at an election held
  20-14  under Section 20.950, Education Code>.
  20-15        (e)  The amount of an exemption adopted as provided by
  20-16  Subsection (d) of this section is $3,000 of the appraised value of
  20-17  the residence homestead unless a larger amount is specified by:
  20-18              (1)  the governing body authorizing the exemption if
  20-19  the exemption is authorized as provided by Subdivision (1) of
  20-20  Subsection (d) of this section; or
  20-21              (2)  the petition for the election if the exemption is
  20-22  authorized as provided by Subdivision (2) of Subsection (d) of this
  20-23  section<; or>
  20-24              <(3)  the proposition approved at an election held
  20-25  under Section 20.950, Education Code>.
   21-1        (m)  In this section:
   21-2              (1)  "Disabled" means under a disability for purposes
   21-3  of payment of disability insurance benefits under Federal Old-Age,
   21-4  Survivors, and Disability Insurance.
   21-5              (2)  "School district" means a county finance district
   21-6  <political subdivision organized to provide general elementary and
   21-7  secondary public education>.  <"School district" includes a county
   21-8  education district established by the consolidation of the local
   21-9  school districts in its boundaries for the limited purpose of
  21-10  exercising a portion of the taxing power previously authorized by
  21-11  the voters in those school districts.>  "School district" does not
  21-12  include a junior college district or a political subdivision
  21-13  organized to provide special education services.
  21-14        (n)  In addition to any other exemptions provided by this
  21-15  section, an individual is entitled to an exemption from taxation by
  21-16  a taxing unit <other than a county education district> of a
  21-17  percentage of the appraised value of his residence homestead if the
  21-18  exemption is adopted by the governing body of the taxing unit
  21-19  before May 1 in the manner provided by law for official action by
  21-20  the body.  If the percentage set by the taxing unit produces an
  21-21  exemption in a tax year of less than $5,000 when applied to a
  21-22  particular residence homestead, the individual is entitled to an
  21-23  exemption of $5,000 of the appraised value.  The percentage adopted
  21-24  by the taxing unit may not exceed 20 percent.  <In addition to any
  21-25  other exemptions provided by this section, an individual is
   22-1  entitled to an exemption from taxation by a county education
   22-2  district of a percentage of the appraised value of his residence
   22-3  homestead if the exemption is adopted by the voters of the district
   22-4  at an election held in the district for that purpose under Section
   22-5  20.946, Education Code.  If the percentage set by the voters
   22-6  produces an exemption in a tax year of less than $5,000 when
   22-7  applied to a particular residence homestead, the individual is
   22-8  entitled to an exemption of $5,000 of the appraised value.  The
   22-9  percentage adopted by the voters may not exceed 20 percent.>
  22-10        SECTION 1.15.  Sections 11.14(c) and (e), Tax Code, are
  22-11  amended to read as follows:
  22-12        (c)  The governing body of a taxing unit<, other than a
  22-13  county education district,> by resolution or order, depending upon
  22-14  the method prescribed by law for official action by that governing
  22-15  body, may provide for taxation of tangible personal property
  22-16  exempted under Subsection (a).  <The voters of a county education
  22-17  district, by an election held under Section 20.951, Education Code,
  22-18  may provide for taxation of tangible personal property exempted
  22-19  under Subsection (a).>  If a taxing unit provides for taxation of
  22-20  tangible personal property as provided by this subsection, the
  22-21  exemption prescribed by Subsection (a) does not apply to that unit.
  22-22        (e)  A political subdivision <other than a county education
  22-23  district> choosing to tax property otherwise made exempt by this
  22-24  section, pursuant to Article VIII, Section 1(e), of the Texas
  22-25  Constitution, may not do so until the governing body of the
   23-1  political subdivision has held a public hearing on the matter,
   23-2  after having given notice of the hearing at the times and in the
   23-3  manner required by this subsection, and has found that the action
   23-4  will be in the public interest of all the residents of that
   23-5  political subdivision.  At the hearing, all interested persons are
   23-6  entitled to speak and present evidence for or against taxing the
   23-7  property.  Not later than the 30th day prior to the date of a
   23-8  hearing held under this subsection, notice of the hearing must be:
   23-9              (1)  published in a newspaper having general
  23-10  circulation in the political subdivision and in a section of the
  23-11  newspaper other than the advertisement section;
  23-12              (2)  not less than one-half of one page in size; and
  23-13              (3)  republished on not less than three separate days
  23-14  during the period beginning with the 10th day prior to the hearing
  23-15  and ending with the actual date of the hearing.
  23-16        SECTION 1.16.  (a)  The funds, real property, and
  23-17  transportation equipment and supplies of a school district are
  23-18  transferred to the county finance district in which the school
  23-19  district is located, except as provided by Subsection (f) of this
  23-20  section.
  23-21        (b)  On the effective date of this Act, the personal property
  23-22  of a school district that is located at a campus is transferred to
  23-23  the campus school board of that campus.  The remaining personal
  23-24  property of the school district is transferred to the county
  23-25  finance district for its use or for distribution to a campus in the
   24-1  district as appropriate.
   24-2        (c)  In the contracts and other liabilities of a school
   24-3  district that are related to the powers and duties of a county
   24-4  finance district, the county finance district of that county is
   24-5  substituted for the school district.  In the remainder of the
   24-6  contracts and other liabilities of the district, the campus school
   24-7  boards of the schools in the county are substituted for the school
   24-8  district as provided by rule of the commissioner of education.
   24-9        (d)  A county finance district may collect and use or
  24-10  distribute taxes imposed by the county education district of that
  24-11  county or by a school district located in that county that are
  24-12  delinquent, except as provided by Subsection (f) of this section.
  24-13        (e)  Each independent school district is abolished on a date
  24-14  certified to the commissioner of education by the board of trustees
  24-15  as the date on which the district has executed the transfer of
  24-16  property and responsibility under this Act and has concluded its
  24-17  business.
  24-18        (f)  If a school district is located in two or more counties,
  24-19  real property of the school district is transferred to the county
  24-20  finance district in which the real property is located.  The other
  24-21  assets and liabilities of the school district shall be divided
  24-22  among the county finance districts in which the school district is
  24-23  located and their campuses in the manner provided by rule of the
  24-24  commissioner of education.
  24-25        SECTION 1.17.  (a)  All county education districts are
   25-1  abolished.
   25-2        (b)  All funds and other assets of each county education
   25-3  district shall be allocated to its component school districts in
   25-4  proportion to the total amount contributed by each component school
   25-5  district to the county education district in accordance with rules
   25-6  adopted by the commissioner of education and distributed to a
   25-7  county finance district as provided by Section 1.16 of this
   25-8  article.
   25-9        SECTION 1.18.  (a)  The following provisions of the Education
  25-10  Code are repealed:
  25-11              (1)  Sections 1.05, 11.86(h), 16.007(c), 16.010,
  25-12  16.011, 19.026, and 20.09;
  25-13              (2)  Subchapter J, Chapter 16; and
  25-14              (3)  Subchapter G, Chapter 20.
  25-15        (b)  The following sections of the Tax Code are
  25-16  repealed:  6.061(f), 26.12(e), and 312.002(e) and (f).
  25-17        SECTION 1.19.  This article takes effect immediately and
  25-18  applies beginning with the 1993-1994 school year.
  25-19                     ARTICLE 2.  STATE GOVERNANCE
  25-20        SECTION 2.01.  (a)  The commissioner of education shall,
  25-21  before January 30, 1994, reduce the staff of the Central Education
  25-22  Agency by the equivalent of 20 percent of the full-time positions
  25-23  on the effective date of this article.
  25-24        (b)  The commissioner of education shall, before January 30,
  25-25  1995, reduce the staff of the Central Education Agency by the
   26-1  equivalent of 40 percent of the full-time positions on the
   26-2  effective date of this article.
   26-3        SECTION 2.02.  This article takes effect immediately.
   26-4                 ARTICLE 3.  ALTERNATIVE CERTIFICATION
   26-5        SECTION 3.01.  Section 13.035, Education Code, is amended by
   26-6  adding Subsection (d) to read as follows:
   26-7        (d)  The board, the commissioner of education, and regional
   26-8  education service centers shall:
   26-9              (1)  encourage the entry into the teaching profession
  26-10  of qualified persons through the alternative certification program;
  26-11              (2)  provide information to school districts relating
  26-12  to the alternative certification program;
  26-13              (3)  assist school districts in providing the
  26-14  supervision and training necessary under the alternative
  26-15  certification program; and
  26-16              (4)  amend any rules that have the effect of
  26-17  discouraging or restricting the participation of qualified persons
  26-18  in the alternative certification program.
  26-19        SECTION 3.02.  This article takes effect immediately.
  26-20                      ARTICLE 4.  SCHOOL CAMPUSES
  26-21        SECTION 4.01.  Subchapter Z, Chapter 21, Education Code, is
  26-22  amended by adding Section 21.9013 to read as follows:
  26-23        Sec. 21.9013.  AGREEMENTS WITH INDEPENDENT CONTRACTORS;
  26-24  COOPERATIVES.  (a)  A campus school board  may enter into a
  26-25  contract with an independent contractor to provide services that
   27-1  the school is authorized to provide.  A contract under this
   27-2  subsection must be submitted to competitive bidding.
   27-3        (b)  A campus school board  may form a cooperative with one
   27-4  or more additional schools to provide services that the schools are
   27-5  authorized to provide.
   27-6        (c)  The campus school board may elect not to enter into a
   27-7  contract with an independent contractor or cooperative when the
   27-8  total contract price is less than the actual costs incurred by the
   27-9  school for delivering and administering the same services.  If the
  27-10  board elects not to enter into the contract, state funds may not be
  27-11  used to provide the services.  For comparison purposes, the school
  27-12  shall assign all applicable costs, direct and indirect, in
  27-13  accordance with generally accepted accounting practices.
  27-14        SECTION 4.02.  Sections 11.272(a)-(d), Education Code, are
  27-15  amended to read as follows:
  27-16        (a)  Except as provided by Subsection (b) of this section, a
  27-17  school campus <or district> that is rated exemplary under Section
  27-18  21.753 of this code is exempt from requirements and prohibitions
  27-19  imposed under this code, including rules adopted under this code.
  27-20        (b)  A school campus <or district> is not exempt under this
  27-21  section from a prohibition on conduct that constitutes a criminal
  27-22  offense.  A school campus <or district> is not exempt under this
  27-23  section from requirements imposed by federal law or rule, including
  27-24  requirements for special education or bilingual education programs.
  27-25  <Except as provided by Subsection (e) of this section, a school
   28-1  campus or district is not exempt under this section from a
   28-2  requirement or prohibition imposed by state law or rule relating
   28-3  to:>
   28-4              <(1)  curriculum essential elements, excluding the
   28-5  methodology used by a teacher and the time spent by a teacher or a
   28-6  student on a particular task or subject;>
   28-7              <(2)  restrictions on extracurricular activities;>
   28-8              <(3)  health and safety;>
   28-9              <(4)  competitive bidding;>
  28-10              <(5)  textbook selection;>
  28-11              <(6)  elementary school class size limits;>
  28-12              <(7)  removal of a disruptive student from the
  28-13  classroom;>
  28-14              <(8)  suspension or expulsion of a student;>
  28-15              <(9)  at-risk program;>
  28-16              <(10)  prekindergarten programs;>
  28-17              <(11)  minimum graduation requirements; or>
  28-18              <(12)  educational employee and educational support
  28-19  employee rights and benefits.  In this section, "educational
  28-20  support employee" means a full-time or part-time school employee
  28-21  not defined as a "teacher" by Section 21.201(l) of this code.>
  28-22        (c)  The Central Education Agency shall monitor and evaluate
  28-23  deregulation of a school campus <or district> under this section
  28-24  and Section 11.273 of this code and report annually on the effect
  28-25  of deregulation on student achievement to the State Board of
   29-1  Education, the Legislative Education Board, the governor, the
   29-2  lieutenant governor, the speaker of the house of representatives,
   29-3  and the legislature.  The report must include a list of the
   29-4  exemptions utilized and a review of the effectiveness of the
   29-5  waivers and exemptions programs.
   29-6        (d)  The commissioner of education <State Board of Education>
   29-7  in considering exemptions or waivers shall provide as much
   29-8  regulatory relief as is practical and reasonable to campuses <or
   29-9  districts> that are considered high performing<, beginning in the
  29-10  1990-1991 school year>.
  29-11        SECTION 4.03.  Sections 11.273(a), (b), and (d)-(g),
  29-12  Education Code, are amended to read as follows:
  29-13        (a)  Except as provided under Subsection (e) of this section,
  29-14  a school campus <or district> may apply to the commissioner of
  29-15  education for a waiver of a requirement or prohibition imposed by
  29-16  law or rule that the campus <or district> determines inhibits
  29-17  student achievement.
  29-18        (b)  An application under this section must include a written
  29-19  plan developed by the campus principal <or district superintendent,
  29-20  as appropriate,> and faculty <of the campus or district> that
  29-21  states the achievement objectives of the campus <or district> and
  29-22  the inhibition imposed on those objectives by the requirement or
  29-23  prohibition and shall be approved by the campus school <district's>
  29-24  board <of trustees>.
  29-25        (d)  A school campus <or district> for which a requirement or
   30-1  prohibition is waived under this section for a period of three
   30-2  years may receive an exemption from that requirement or prohibition
   30-3  at the end of that period if the campus <or district> has fulfilled
   30-4  the achievement objectives submitted to the commissioner under
   30-5  Subsection (b) of this section.  The exemption remains in effect
   30-6  until the commissioner determines that achievement levels of the
   30-7  campus <or district> have declined.
   30-8        (e)  A school campus <or district> may not receive an
   30-9  exemption or waiver under this section from requirements imposed by
  30-10  federal law or rule, including requirements for special education
  30-11  or bilingual education programs.  <A school campus or district may
  30-12  not receive an exemption or waiver under this section from a
  30-13  requirement or prohibition imposed by state law or rule relating
  30-14  to:>
  30-15              <(1)  curriculum essential elements, excluding the
  30-16  methodology used by a teacher and the time spent by a teacher or a
  30-17  student on a particular task or subject;>
  30-18              <(2)  restrictions on extracurricular activities;>
  30-19              <(3)  health and safety;>
  30-20              <(4)  competitive bidding;>
  30-21              <(5)  elementary school class size limits;>
  30-22              <(6)  minimum graduation requirements;>
  30-23              <(7)  removal of a disruptive student from the
  30-24  classroom;>
  30-25              <(8)  suspension or expulsion of a student;>
   31-1              <(9)  at risk program;>
   31-2              <(10)  prekindergarten programs;>
   31-3              <(11)  educational employee and educational support
   31-4  employee rights and benefits.  In this section, "educational
   31-5  support employee" means a full-time or part-time school employee
   31-6  not defined as a "teacher" by Section 21.201(l) of this code; or>
   31-7              <(12)  special education or bilingual education
   31-8  programs.>
   31-9        (f)  A school <district or> campus that receives a waiver
  31-10  under this section for textbook selection may select for purchase a
  31-11  textbook not on a state-adopted multiple list.  The textbook shall
  31-12  be purchased by the school <district> and shall be used for the
  31-13  same number of years for which the textbooks for the subject or
  31-14  course are adopted by the State Board of Education.  The unit cost
  31-15  of the textbooks selected shall not exceed the unit cost of the
  31-16  costliest textbook on the multiple list for the subject or course.
  31-17  The commissioner of education shall calculate the allowable cost
  31-18  and transmit from the state textbook fund that amount to the school
  31-19  <district> for purchase of the textbooks.  The State Board of
  31-20  Education shall adopt rules necessary for the implementation of
  31-21  this subsection.
  31-22        (g)  The commissioner in considering exemptions or waivers
  31-23  shall provide as much regulatory relief as is practical and
  31-24  reasonable to campuses <or districts> that are considered high
  31-25  performing.
   32-1        SECTION 4.04.  Subchapter B, Chapter 11, Education Code, is
   32-2  amended by adding Section 11.274 to read as follows:
   32-3        Sec. 11.274.  School Committee Waivers.  (a)  Except as
   32-4  provided by Subsection (c) of this section, a school committee
   32-5  established under Section 21.931 of this code may apply to the
   32-6  commissioner of education for a waiver for the school of a
   32-7  requirement or prohibition imposed by law or rule.
   32-8        (b)  An application under this section must include a written
   32-9  plan developed by the committee that states the achievement
  32-10  objectives of the committee.
  32-11        (c)  The commissioner of education shall grant a waiver under
  32-12  this section for a period not to exceed three years.  A prohibition
  32-13  on conduct that constitutes a criminal offense may not be waived.
  32-14  A requirement imposed by federal law or rule, including
  32-15  requirements for special education or bilingual education programs,
  32-16  may not be waived.
  32-17        (d)  A school that receives a waiver under this section for
  32-18  textbook selection may select for purchase a textbook not on a
  32-19  state-adopted multiple list.  The textbook shall be purchased by
  32-20  the district and shall be used for the same number of years for
  32-21  which the textbooks for the subject or course are adopted by the
  32-22  State Board of Education.  The unit cost of the textbooks selected
  32-23  may not exceed the unit cost of the costliest textbook on the
  32-24  multiple list for the subject or course.  The commissioner of
  32-25  education shall calculate the allowable cost and transmit from the
   33-1  state textbook fund that amount to the district for purchase of the
   33-2  textbooks.
   33-3        SECTION 4.05.  Section 21.753, Education Code, is amended by
   33-4  amending Subsections (a) and (c) and adding Subsection (e) to read
   33-5  as follows:
   33-6        (a)  The State Board of Education shall adopt rules for the
   33-7  accreditation of schools <school districts>.  The rules shall
   33-8  include criteria to evaluate the performance of schools <school
   33-9  districts> and to rate each school <district> for accreditation
  33-10  purposes as:
  33-11              (1)  exemplary;
  33-12              (2)  recognized;
  33-13              (3)  accredited;
  33-14              (4)  accredited advised; or
  33-15              (5)  academically unaccredited.
  33-16        (c)  The Central Education Agency shall rate each campus <in
  33-17  a district> on the basis of the campus's performance on the
  33-18  indicators adopted under Section 21.7531 of this code using the
  33-19  rating categories provided for districts under Subsection (a) of
  33-20  this section.
  33-21        (e)  Criteria for the evaluation of school performance shall
  33-22  be limited to issues of educational quality, specifically the
  33-23  efficient delivery of educational services to students.  An
  33-24  accreditation sanction may not be imposed for a procedural
  33-25  violation that does not directly and significantly impact the
   34-1  delivery of education services.
   34-2        SECTION 4.06.  Sections 21.753(b) and (d) and 21.7531(d),
   34-3  Education Code, are repealed.
   34-4        SECTION 4.07.  This article takes effect September 1, 1993.
   34-5                  ARTICLE 5.  DEMONSTRATION PROGRAMS
   34-6        SECTION 5.01.  Section 11.52, Education Code, is amended by
   34-7  adding Subsection (p) to read as follows:
   34-8        (p)  The commissioner may establish demonstration programs in
   34-9  education settings throughout the state to demonstrate and
  34-10  investigate educational programs or methodologies.  The
  34-11  commissioner may waive for the duration of a program a requirement
  34-12  or prohibition imposed by state law that hinders the implementation
  34-13  of the program.  A prohibition on conduct that constitutes a
  34-14  criminal offense may not be waived.
  34-15        SECTION 5.02.  Subchapter A, Chapter 11, Education Code, is
  34-16  amended by adding Section 11.104 to read as follows:
  34-17        Sec. 11.104.  EDUCATION TUITION GRANT PROGRAM.  (a)  On the
  34-18  request of a parent or guardian of a child who is currently
  34-19  enrolled in the public school system, a county finance district
  34-20  shall issue a tuition grant to the parent or guardian to be used
  34-21  for the expenses of educating the child at:
  34-22              (1)  a private school that is recognized as accredited
  34-23  by the State Board of Education under Section 11.26 of this code
  34-24  and that does not discriminate in the admission of students or the
  34-25  employment of teachers on the basis of race, sex, disability,
   35-1  color, or economic status; or
   35-2              (2)  any accredited public school.
   35-3        (b)  The Central Education Agency shall transfer state funds
   35-4  to a county finance district that submits the tuition grant to the
   35-5  agency with a record of the child's enrollment in the same manner
   35-6  that state funds are transferred under Section 21.062 of this code
   35-7  for a child who is the subject of a transfer agreement.
   35-8        (c)  The state and the district shall pay $3,000 to the
   35-9  school in which the child enrolls.  The state and the district
  35-10  share that cost in the same percentages used to determine the state
  35-11  and local shares under Chapter 16 of this code.
  35-12        SECTION 5.03.  Section 21.253, Education Code, is repealed.
  35-13        SECTION 5.04.  This article takes effect beginning with the
  35-14  1993-1994 school year.
  35-15                      ARTICLE 6.  STATE MANDATES
  35-16        SECTION 6.01.  Chapter 16, Education Code, is amended by
  35-17  adding Subchapter K to read as follows:
  35-18               SUBCHAPTER K.  STATE EDUCATIONAL MANDATES
  35-19        Sec. 16.601.  DEFINITION.  In this subchapter, "state
  35-20  educational mandate" means a requirement created by statute
  35-21  applicable to a public school that requires an expenditure of funds
  35-22  by a public school that would not have been required in the absence
  35-23  of the statute.
  35-24        Sec. 16.602.  LIST OF UNFUNDED MANDATES.  The commissioner of
  35-25  education shall publish in the Texas Register, not later than the
   36-1  90th day after the date a regular or special session of the
   36-2  legislature ends, a list of all state educational mandates enacted
   36-3  by a session of the legislature for which:
   36-4              (1)  the Legislative Budget Board states the costs
   36-5  cannot be identified under Section 314.004, Government Code;
   36-6              (2)  the costs are identified by the Legislative Budget
   36-7  Board under Section 314.004, Government Code, but for which the
   36-8  commissioner determines that insufficient appropriations have been
   36-9  made by the legislature for the next biennium; or
  36-10              (3)  the costs are identified by the Legislative Budget
  36-11  Board under Section 314.004, Government Code, but for which the
  36-12  commissioner determines the legislature has not created and fully
  36-13  funded a specific allotment or weight under Subchapters C and D of
  36-14  this chapter.
  36-15        Sec. 16.603.  EFFECT OF LACK OF FUNDING.
  36-16  (a)  Notwithstanding any other provision of law, a state
  36-17  educational mandate that appears on a list of unfunded mandates
  36-18  published in the Texas Register under Section 16.602 of this code
  36-19  is unenforceable.
  36-20        (b)  Any rule adopted by the commissioner of education, the
  36-21  Legislative Education Board, or the State Board of Education under
  36-22  the authority of a state educational mandate published in the Texas
  36-23  Register under Section 16.602 of this code is unenforceable.
  36-24        (c)  A public school is not required to comply with:
  36-25              (1)  a state educational mandate that appears on the
   37-1  list of unfunded mandates published in the Texas Register under
   37-2  Section 16.602 of this code; or
   37-3              (2)  a rule adopted by the commissioner of education,
   37-4  the State Board of Education, or the  Legislative Education Board
   37-5  under the authority of a state educational mandate published in the
   37-6  Texas Register under Section 16.602 of this code.
   37-7        (d)  The noncompliance of a public school with a state
   37-8  educational mandate published in the Texas Register under Section
   37-9  16.602 of this code or a rule adopted by the commissioner of
  37-10  education, the State Board of Education, or the Legislative
  37-11  Education Board under the authority of a state educational mandate
  37-12  published in the Texas Register under Section 16.602 of this code
  37-13  may not be the subject of review or comment under Section 19.027 or
  37-14  21.258 of this code or under Subchapter T, Chapter 21, of this
  37-15  code.
  37-16        Sec. 16.604.  EXEMPTION.  This subchapter does not apply to a
  37-17  requirement created by statute that:
  37-18              (1)  is enacted by the legislature to comply with the
  37-19  requirements of the Texas Constitution or federal law; or
  37-20              (2)  creates a new criminal offense or changes the
  37-21  elements of a criminal offense.
  37-22        Sec. 16.605.  ADMINISTRATIVE APPEALS.  (a)  Not later than
  37-23  the 45th day after the date the commissioner of education publishes
  37-24  a list of unfunded or inadequately funded state educational
  37-25  mandates under Section 16.602 of this code, a school or group of
   38-1  schools may appeal to the commissioner of education to reconsider
   38-2  including in the list of unfunded state educational mandates a
   38-3  statutorily created requirement that was not included in the list
   38-4  by the commissioner.
   38-5        (b)  Not later than the 30th day after the date an appeal is
   38-6  filed with the commissioner under Subsection (a) of this section,
   38-7  the commissioner shall either:
   38-8              (1)  include the subject of the petition on an amended
   38-9  list of unfunded state educational mandates; or
  38-10              (2)  state the commissioner's reasons for refusing to
  38-11  include the subject of the petition on an amended list of unfunded
  38-12  state educational mandates.
  38-13        (c)  Not later than the 60th day after the date the
  38-14  commissioner makes a decision under Subsection (b) of this section,
  38-15  the commissioner shall publish in the Texas Register an amendment
  38-16  or addition to the list of unfunded state educational mandates
  38-17  required by Section 16.602 of this code necessary as a result of an
  38-18  appeal made under this section.
  38-19        (d)  An appeal to the commissioner under this section is not
  38-20  a contested case under the Administrative Procedure and Texas
  38-21  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
  38-22        (e)  The commissioner may designate another person to hear an
  38-23  appeal under this section.
  38-24        Sec. 16.606.  JUDICIAL REVIEW.  (a)  A school or group of
  38-25  schools may appeal the decision of the commissioner of education or
   39-1  the commissioner's designee not to include a state educational
   39-2  mandate in the list of unfunded mandates made under Section 16.605
   39-3  of this code to a district court in Travis County.
   39-4        (b)  The decision of the commissioner of education or the
   39-5  commissioner's designee must be upheld unless it is shown by clear
   39-6  and convincing evidence that the decision was an abuse of
   39-7  discretion.
   39-8        (c)  The decision of the district court in an appeal brought
   39-9  under this section may be appealed in the same manner provided by
  39-10  law for civil suits.
  39-11        SECTION 6.02.  Section 314.004(b), Government Code, is
  39-12  amended to read as follows:
  39-13        (b)  The impact statement must:
  39-14              (1)  evaluate the effect of the bill or resolution on
  39-15  all state equalized funding requirements and policies; and
  39-16              (2)  identify the cost to implement the bill or
  39-17  resolution to schools on an equalized basis statewide or state that
  39-18  the local cost cannot be identified.
  39-19        SECTION 6.03.  This article takes effect September 1, 1993.
  39-20           ARTICLE 7.  CONTRACTS WITH OFFICERS AND TEACHERS
  39-21        SECTION 7.01.  Section 13.103, Education Code, is amended to
  39-22  read as follows:
  39-23        Sec. 13.103.  Probationary Contract:  Termination.  A campus
  39-24  school <The> board <of trustees of any school district> may
  39-25  terminate the employment of any teacher holding a probationary
   40-1  contract at the end of the contract period, if in their judgment
   40-2  the best interests of the school <district> will be served thereby;
   40-3  provided, that notice of intention to terminate the employment
   40-4  shall be given by the board <of trustees> to the teacher on or
   40-5  before June <April> 1, preceding the end of the employment term
   40-6  fixed in the contract.  In the event of failure to give such notice
   40-7  of intention to terminate within the time above specified, the
   40-8  board <of trustees> shall thereby elect to employ such probationary
   40-9  teacher in the same capacity, and under probationary contract
  40-10  status for the succeeding school year if the teacher has been
  40-11  employed by such district for less than three successive school
  40-12  years, or in a continuing contract position if such teacher has
  40-13  been employed during three consecutive school years.
  40-14        SECTION 7.02.  Section 13.104, Education Code, is amended to
  40-15  read as follows:
  40-16        Sec. 13.104.  Hearing.  In the event a teacher holding a
  40-17  probationary contract is notified of the intention of the campus
  40-18  school board <of trustees> to terminate his employment at the end
  40-19  of his current contract period, he shall have a right upon written
  40-20  request to a hearing.  The hearing shall be held before the board
  40-21  <of trustees> or a person designated by the board.  At the<, and at
  40-22  such> hearing, the teacher shall be given the reasons for
  40-23  termination of his employment.  After such hearing, the board <of
  40-24  trustees> may confirm or revoke the <its> previous action of
  40-25  termination; but in any event, the decision of the board <of
   41-1  trustees> shall be final and non-appealable.
   41-2        SECTION 7.03.  Section 13.109, Education Code, is amended to
   41-3  read as follows:
   41-4        Sec. 13.109.  Discharge During Year.  Any teacher, whether
   41-5  employed under a probationary contract or a continuing contract,
   41-6  may be discharged during the school year for one or more of the
   41-7  following reasons, which shall constitute lawful cause for
   41-8  discharge:
   41-9              (1)  immorality;
  41-10              (2)  conviction of any felony or other crime involving
  41-11  moral turpitude;
  41-12              (3)  drunkenness;
  41-13              (4)  repeated failure to comply with official
  41-14  directives and established school board policy;
  41-15              (5)  physical or mental incapacity preventing
  41-16  performance of the contract of employment; <and>
  41-17              (6)  repeated and continuing neglect of duties; and
  41-18              (7)  good cause, as determined by the campus school
  41-19  board.
  41-20        SECTION 7.04.  Section 13.110, Education Code, is amended to
  41-21  read as follows:
  41-22        Sec. 13.110.  Release at End of Year.  Any teacher employed
  41-23  under a continuing contract may be released at the end of any
  41-24  school year and his employment with the school <district>
  41-25  terminated at that time, or he may be returned to probationary
   42-1  contract employment for not exceeding the three succeeding school
   42-2  years, upon notice and hearing (if requested) as hereinafter
   42-3  provided, for any reason enumerated in Section 13.109 of this code
   42-4  or for any of the following additional reasons:
   42-5              (1)  incompetency in performance of duties;
   42-6              (2)  failure to comply with such reasonable
   42-7  requirements as the employing campus school board <of trustees of
   42-8  the employing school district> may prescribe for achieving
   42-9  professional improvement and growth;
  42-10              (3)  willful failure to pay debts;
  42-11              (4)  <habitual> use of addictive drugs or
  42-12  hallucinogens;
  42-13              (5)  excessive use of alcoholic beverages;
  42-14              (6)  necessary reduction of personnel by the school
  42-15  <district (such reductions shall be made in the reverse order of
  42-16  seniority in the specific teaching fields)>; or
  42-17              (7)  for good cause as determined by the campus <local>
  42-18  school board<, good cause being the failure of a teacher to meet
  42-19  the accepted standards of conduct for the profession as generally
  42-20  recognized and applied in similarly situated school districts
  42-21  throughout Texas; or>
  42-22              <(8)  failure by a person required to take an
  42-23  examination under Section 13.047 of this code to perform
  42-24  satisfactorily on at least one examination under that section on or
  42-25  before June 30, 1986>.
   43-1        SECTION 7.05.  Section 13.111, Education Code, is amended to
   43-2  read as follows:
   43-3        Sec. 13.111.  Notice.  (a)  Before any teacher shall be
   43-4  discharged during the year for any of the causes mentioned in
   43-5  Section 13.109 of this code, or before any probationary contract
   43-6  teacher shall be dismissed at the end of a school year before the
   43-7  end of the term fixed in his contract, or before any teacher
   43-8  holding a continuing contract shall be dismissed or returned to
   43-9  probationary contract status at the end of a school year for any of
  43-10  the reasons mentioned in Section 13.110 of this code, he shall be
  43-11  notified in writing by the campus school board <of trustees> or
  43-12  under its direction of the proposed action and of the grounds
  43-13  assigned therefor.
  43-14        (b)  In the event the grounds for the proposed action relate
  43-15  to the inability or failure of the teacher to perform his assigned
  43-16  duties, the action shall be based upon the <written> recommendation
  43-17  by the principal of the school <superintendent of schools>, filed
  43-18  with the campus school board <of trustees>.  Any teacher so
  43-19  discharged or dismissed or returned to probationary contract status
  43-20  shall be entitled, as a matter of right, to a copy of each and
  43-21  every evaluation report, or any other memorandum in writing which
  43-22  has been made touching or concerning the fitness or conduct of such
  43-23  teacher, by requesting in writing a copy of the same.
  43-24        SECTION 7.06.  Section 13.112, Education Code, is amended to
  43-25  read as follows:
   44-1        Sec. 13.112.  Hearing.  (a)  After receiving notice of the
   44-2  proposed action, the teacher may request a hearing by notifying the
   44-3  campus school board in writing not later than the 10th day after
   44-4  the date the teacher received the notice of the proposed action.
   44-5  The board shall provide for a hearing to be held not later than the
   44-6  15th day after the date the board received written notice from the
   44-7  teacher requesting a hearing.  The hearing is closed unless the
   44-8  teacher requests an open hearing <If, upon written notification of
   44-9  the proposed action, the teacher desires to contest the same, he
  44-10  shall notify the board of trustees in writing within 10 days after
  44-11  the date of receipt by him of the official notice above prescribed,
  44-12  of his desire to be heard, and he shall be given a public hearing
  44-13  if he wishes or if the board of trustees determines that a public
  44-14  hearing is necessary in the public interest>.
  44-15        (b)  The hearing shall be conducted under rules adopted by
  44-16  the campus school board.  The board  may designate an impartial
  44-17  hearing officer to develop a record for consideration by the board.
  44-18  The board shall make its decision based on a review of the record
  44-19  developed by the hearing officer and on oral argument before the
  44-20  board of the teacher or the teacher's representative and the
  44-21  school's representative  <Upon any charges based upon grounds of
  44-22  inability or failure of the teacher to perform his assigned duties,
  44-23  the board of trustees may in its discretion establish a committee
  44-24  of classroom teachers and administrators, and the teacher may
  44-25  request a hearing before this committee prior to hearing of the
   45-1  matter by the board of trustees.>
   45-2        <(c)  Within 10 days after request for hearing made by the
   45-3  teacher, the board of trustees shall fix a time and place of
   45-4  hearing, which shall be held before the proposed action shall be
   45-5  effective.  Such hearing shall be public unless the teacher
   45-6  requests in writing that it be private.>
   45-7        <(d)  At such hearing, the teacher may employ counsel, if
   45-8  desired, and shall have the right to hear the evidence upon which
   45-9  the charges are based, to cross-examine all adverse witnesses, and
  45-10  to present evidence in opposition thereto, or in extenuation.>
  45-11        <(e)  The board shall take such action as it deems lawful and
  45-12  appropriate and shall notify the teacher in writing of that action
  45-13  within 15 days following the conclusion of the hearing>.
  45-14        SECTION 7.07.  Section 13.114, Education Code, is amended to
  45-15  read as follows:
  45-16        Sec. 13.114.  Decision of Board.  (a)  If the teacher fails
  45-17  to request a hearing, the campus school board shall take action it
  45-18  considers lawful and appropriate and shall notify the teacher in
  45-19  writing of that action not later than the 15th day after the date
  45-20  the period for requesting a hearing expires.
  45-21        (b)  If the teacher requests a hearing, the board shall take
  45-22  action it considers lawful and appropriate and shall notify the
  45-23  teacher in writing of that action not later than the 15th day after
  45-24  the date the hearing concluded <If the teacher upon notification of
  45-25  any such proposed action fails to request a hearing within 10 days
   46-1  thereafter, or after a hearing as hereinabove provided, the board
   46-2  of trustees shall take such action and shall enter such order as it
   46-3  deems lawful and appropriate.  If the teacher is reinstated, he
   46-4  shall immediately be paid any compensation withheld during any
   46-5  period of suspension without pay.  No order adverse to the teacher
   46-6  shall be entered except upon majority vote of the full membership
   46-7  of the board of trustees>.
   46-8        SECTION 7.08.  Chapter 13, Education Code, is amended by
   46-9  adding Subchapter H to read as follows:
  46-10               SUBCHAPTER H.  TERM EMPLOYMENT CONTRACTS
  46-11        Sec. 13.551.  DEFINITIONS.  In this subchapter:
  46-12              (1)  "Board" means the campus school board of a public
  46-13  school.
  46-14              (2)  "Teacher" means a principal, supervisor, classroom
  46-15  teacher, counselor, or other full-time professional employee.
  46-16              (3)  "Term contract" means any contract of employment
  46-17  for a fixed term between the school and a teacher.
  46-18        Sec. 13.552.  TEACHER EVALUATIONS.  Each board shall provide
  46-19  by written policy for a written evaluation on an annual or more
  46-20  frequent basis of each teacher the board employs.  The board shall
  46-21  consider the evaluation before the board decides not to renew the
  46-22  term contract of a teacher.
  46-23        Sec. 13.553.  NONRENEWAL OF TERM CONTRACTS.  (a)  A board may
  46-24  choose not to renew a term contract with a teacher at the end of
  46-25  the contract period.
   47-1        (b)  Each board shall adopt policies consistent with this
   47-2  subchapter that provide reasons for nonrenewal.
   47-3        (c)  Each board shall establish policies and procedures for
   47-4  receiving recommendations from the school administration for the
   47-5  nonrenewal of term contracts with teachers.
   47-6        Sec. 13.554.  NOTICE.  (a)  If the board receives a
   47-7  recommendation for nonrenewal and the reasons for the
   47-8  recommendation from the school administration, the board shall
   47-9  consider the available written evaluations of the teacher.  The
  47-10  board shall, in its sole discretion, reject the recommendation or
  47-11  give the teacher written notice of the proposed nonrenewal on or
  47-12  before June 1 of the year the term of employment ends.
  47-13        (b)  If the board does not give the teacher a notice of
  47-14  proposed nonrenewal under Subsection (a) of this section, the
  47-15  employee is retained in the same capacity for the next school year.
  47-16        (c)  The board shall include in a notice required by this
  47-17  section a statement of the reasons for the proposed nonrenewal.
  47-18        Sec. 13.555.  HEARING.  (a)  After receiving notice of the
  47-19  proposed nonrenewal, the teacher may request a hearing by notifying
  47-20  the board in writing not later than the 10th day after the date the
  47-21  teacher received the notice of nonrenewal.  The board shall provide
  47-22  for a hearing to be held not later than the 15th day after the date
  47-23  the board received written notice from the teacher requesting a
  47-24  hearing.  The hearing is closed unless the teacher requests an open
  47-25  hearing.
   48-1        (b)  The hearing shall be conducted under rules adopted by
   48-2  the board.  The board may designate an impartial hearing officer to
   48-3  develop a record for consideration by the board.  The board shall
   48-4  make its decision based on a review of the record developed by the
   48-5  hearing officer and on oral argument before the board of the
   48-6  teacher or the teacher's representative and the school's
   48-7  representative.
   48-8        Sec. 13.556.  DECISION OF BOARD.  (a)  If the teacher fails
   48-9  to request a hearing, the board shall take action it considers
  48-10  lawful and appropriate and shall notify the teacher in writing of
  48-11  that action not later than the 15th day after the period for
  48-12  requesting a hearing expires.
  48-13        (b)  If a hearing is conducted, the board shall take action
  48-14  it considers lawful and appropriate and shall notify the teacher in
  48-15  writing of that action not later than the 15th day after the date
  48-16  the hearing concluded.
  48-17        Sec. 13.557.  PROBATION.  (a)  Except as provided by
  48-18  Subsection (b) of this section, a board may provide by written
  48-19  policy for a probationary period not to exceed the first three
  48-20  years of continuous employment with the school.
  48-21        (b)  A probationary period may not exceed one year for a
  48-22  person who has been employed as a teacher in public education for
  48-23  at least five of the eight years before initial employment with the
  48-24  school.  The provisions of this subchapter do not apply during a
  48-25  probationary period under this subsection.
   49-1        (c)  A teacher dismissed for good cause from the school with
   49-2  which the teacher was most recently employed may agree by written
   49-3  contract to a probationary period for the first three years of
   49-4  continuous employment.
   49-5        Sec. 13.558.  DISCHARGE FOR CAUSE.  This subchapter does not
   49-6  prohibit a board from discharging a teacher during the term of the
   49-7  contract for good cause, as determined by the board.
   49-8        SECTION 7.09.  Section 23.28, Education Code, is amended to
   49-9  read as follows:
  49-10        Sec. 23.28.  Contracts With Officers and Teachers.  (a)  A
  49-11  campus school  <The> board <of trustees of any independent school
  49-12  district> may employ by contract <a superintendent,> a principal or
  49-13  principals, teachers, or other executive officers for a term not to
  49-14  exceed 12 months <the maximum specified in this section>.
  49-15        (b)  <In those independent school districts with a scholastic
  49-16  population of fewer than 5,000, the term of such contracts shall
  49-17  not exceed three years.>
  49-18        <(c)  In those independent school districts with a scholastic
  49-19  population of 5,000 or more, in the last preceding scholastic year,
  49-20  the term of such contracts shall not exceed five years.>
  49-21        <(d)>  All 12 month contracts made with employees
  49-22  above-mentioned shall begin on July 1 of the year beginning the
  49-23  contract and end on June 30 of the year terminating the contract.
  49-24        <(e)  This section does not apply to teacher's contracts in
  49-25  those independent school districts which have adopted the
   50-1  provisions of the probationary or continuing contract law as set
   50-2  out in Subchapter C, Chapter 13 of this code.>
   50-3        SECTION 7.10.  Subchapter G, Chapter 21, Education Code, is
   50-4  repealed.
   50-5        SECTION 7.11.  The change in law made by this article applies
   50-6  only to an action taken by a campus school board under Subchapter
   50-7  C, Chapter 13, Education Code, on or after the effective date of
   50-8  this article.  An action taken by a board of trustees of a school
   50-9  district under Subchapter C, Chapter 13, or Subchapter G, Chapter
  50-10  21, Education Code, before the effective date of this article is
  50-11  covered by the law in effect when the action was taken, and the
  50-12  former law is continued in effect for this purpose.
  50-13        SECTION 7.12.  This article takes effect beginning with the
  50-14  1993-1994 school year.
  50-15                         ARTICLE 8.  MERIT PAY
  50-16        SECTION 8.01.  Section 13.912(a), Education Code, is amended
  50-17  to read as follows:
  50-18        (a)  A school <district> may not deny a teacher a salary
  50-19  bonus or similar compensation given in whole or in part on the
  50-20  basis of teacher attendance or a merit pay supplement, as provided
  50-21  by Section 16.158 of this code, <career ladder advancement> because
  50-22  of the teacher's absence from school for observance of a religious
  50-23  holy day.
  50-24        SECTION 8.02.  Section 16.158, Education Code, is amended to
  50-25  read as follows:
   51-1        Sec. 16.158.  Merit Pay <Career Ladder> Allotment.  (a)  Each
   51-2  county finance district is entitled to a merit pay <an> allotment
   51-3  <for support of the career ladder> equal to its unadjusted average
   51-4  daily attendance multiplied by $90.
   51-5        (b)  An allotment under this section may be used only for the
   51-6  purposes of merit pay <career ladder> supplements.
   51-7        (c)  From the allotment <funds designated for that purpose>,
   51-8  the district shall supplement the salary of 50 percent of the
   51-9  principals employed in the district as follows:
  51-10              (1)  25 percent of the principals shall each receive
  51-11  either:
  51-12                    (A)  a $5,000 merit pay supplement, if the
  51-13  principal's school campus enrolls 500 or more students; or
  51-14                    (B)  a smaller proportional merit pay supplement,
  51-15  if the principal's school campus enrolls fewer than 500 students;
  51-16  and
  51-17              (2)  25 percent of the principals shall each receive
  51-18  either:
  51-19                    (A)  a $10,000 merit pay supplement, if the
  51-20  principal's school campus enrolls 500 or more students; or
  51-21                    (B)  a smaller proportional merit pay supplement,
  51-22  if the principal's school campus enrolls fewer than 500 students
  51-23  <each teacher above level one on the career ladder.  The district
  51-24  shall decide the amount of supplement to be provided at each career
  51-25  ladder level>.
   52-1        (d)  From the allotment, the district shall supplement the
   52-2  salary of not more than 75 percent of the teachers employed in the
   52-3  district as follows:
   52-4              (1)  25 percent of the teachers shall each receive an
   52-5  equal share of not less than 50 percent of the merit pay allotment
   52-6  remaining after payments are made under Subsection (c) of this
   52-7  section;
   52-8              (2)  25 percent of the teachers shall each receive an
   52-9  equal share of not less than 30 percent of the merit pay allotment
  52-10  remaining after payments are made under Subsection (c) of this
  52-11  section; and
  52-12              (3)  the district may distribute an equal share of the
  52-13  remainder of the merit pay allotment to each teacher approved for
  52-14  that purpose by the principal of the teacher's school campus, if
  52-15  the number of teachers paid a merit pay supplement under this
  52-16  subsection does not exceed 25 percent of all district teachers.
  52-17        (e)  Each district shall distribute the district's merit pay
  52-18  allotment not earlier than the end of the regular school term in
  52-19  which the district received the allotment or later than the
  52-20  beginning of the next regular school term.
  52-21        (f)  Money received under this section may not be used to
  52-22  supplement the salary of an employee for directing cocurricular or
  52-23  extracurricular activities.
  52-24        (g)  If the total amount of merit pay supplements distributed
  52-25  by a district under this section before a date set by rule of the
   53-1  commissioner of education is less than the total merit pay
   53-2  allotment to that district, the district shall distribute the
   53-3  remainder of the allotment proportionately to the principals and
   53-4  teachers who have received a merit pay supplement for that regular
   53-5  school term.  After the remainder of the merit pay allotment has
   53-6  been proportionately distributed by a district, no other teacher or
   53-7  principal in that district is eligible for a merit pay supplement
   53-8  for that regular school term.
   53-9        (h)  The commissioner of education shall adopt rules
  53-10  establishing criteria for determining the amount of merit pay
  53-11  supplements to which teachers and principals are entitled.
  53-12        SECTION 8.03.  Section 822.201(b), Government Code, is
  53-13  amended to read as follows:
  53-14        (b)  "Salary and wages" as used in Subsection (a) means:
  53-15              (1)  normal periodic payments of money for service the
  53-16  right to which accrues on a regular basis in proportion to the
  53-17  service performed;
  53-18              (2)  career ladder payments of money that were made as
  53-19  authorized by law and merit pay supplements authorized by Section
  53-20  16.158 <16.057>, Education Code;
  53-21              (3)  amounts by which the member's salary is reduced
  53-22  under a salary reduction agreement authorized by Article 6252-3d,
  53-23  Revised Statutes; and
  53-24              (4)  amounts that would otherwise qualify as salary and
  53-25  wages under Subdivision (1) or (2) but are not received directly by
   54-1  the member pursuant to a good faith, voluntary written salary
   54-2  reduction agreement in order to finance payments to a deferred
   54-3  compensation or tax sheltered annuity program specifically
   54-4  authorized by state law or to finance benefit options under a
   54-5  cafeteria plan qualifying under Section 125 of the Internal Revenue
   54-6  Code of 1986 (26 U.S.C. Section 125), if:
   54-7                    (A)  the program or benefit options are made
   54-8  available to all employees of the employer; and
   54-9                    (B)  the benefit options in the cafeteria plan
  54-10  are limited to one or more options that provide deferred
  54-11  compensation, group health and disability insurance, group term
  54-12  life insurance, dependent care assistance programs, or group legal
  54-13  services plans.
  54-14        SECTION 8.04.  Section 825.405(b), Government Code, is
  54-15  amended to read as follows:
  54-16        (b)  For purposes of this section, the statutory minimum
  54-17  salary is the salary provided by Section 16.056, Education Code,
  54-18  multiplied by the cost of education adjustment applicable under
  54-19  Section 16.102, Education Code, to the district in which the member
  54-20  is employed, plus any merit pay <career ladder> supplement under
  54-21  Section 16.158 <16.057>, Education Code.
  54-22        SECTION 8.05.  The following provisions of the Education Code
  54-23  are repealed:
  54-24              (1)  Subchapter E, Chapter 13; and
  54-25              (2)  Sections 13.035(c) and 16.057.
   55-1        SECTION 8.06.  This article takes effect beginning with the
   55-2  1993-1994 school year.
   55-3                      ARTICLE 9.  CAMPUS REPORTS
   55-4        SECTION 9.01.  Section 21.258, Education Code, is amended to
   55-5  read as follows:
   55-6        Sec. 21.258.  Performance Report.  (a)  Each campus school
   55-7  board <of trustees> shall publish an annual report describing the
   55-8  school's <district's> educational performance that includes campus
   55-9  performance objectives established under Section 21.7532 of this
  55-10  code and the progress of the <each> campus toward those objectives,
  55-11  which shall be available to the public and filed with the State
  55-12  Board of Education.  The board shall hold a hearing for public
  55-13  discussion of the report.  The board shall notify property owners
  55-14  and parents in the county <district> of the hearing.  The campus
  55-15  school board may combine the notice with the notice given by the
  55-16  board of directors of a county finance district of a public hearing
  55-17  on a proposed tax increase required under Section 26.06, Tax Code.
  55-18  After the hearing the report shall be distributed with each
  55-19  student's report card <widely disseminated within the district in a
  55-20  manner to be determined by the district>.
  55-21        (b)  The report shall <may> include the following information
  55-22  <by campus>:
  55-23              (1)  <evaluations of the quality of education based on
  55-24  the information contained in the report;>
  55-25              <(2)>  scores on tests with national norms;
   56-1              <(3)  reports of performance trends improvement or lack
   56-2  of improvement;>
   56-3              <(4)  statements of costs for instruction,
   56-4  instructional administration, and central administration;>
   56-5              (2) <(5)>  attendance data and dropout rates;
   56-6              (3)  TAAS scores, including all scores on reading and
   56-7  math;
   56-8              (4)  percentage of students taking advanced courses;
   56-9              (5)  actual prior year's graduation rates; and
  56-10              (6)  for high school report cards, SAT scores, ACT
  56-11  scores, and number of students passing on their first attempt at
  56-12  the Texas Academic Skills Program
  56-13              <(6)  reports on discipline;>
  56-14              <(7)  data on employees, trends in employment, and
  56-15  turnover;>
  56-16              <(8)  teacher ratios by grade groupings and by program;
  56-17  and>
  56-18              <(9)  statement of efforts to reduce the amount of
  56-19  paperwork required of teachers and administrators>.
  56-20        (c)  The reports may provide other information selected by
  56-21  the campus school board.
  56-22        (d)  The report must also include a comparison provided by
  56-23  the Central Education Agency of:
  56-24              (1)  the performance of the <each> campus to the
  56-25  performance of three other campuses with similar wealth and
   57-1  demographics <and of the district to districts statewide> for
   57-2  information required under Subsection (b) <Subsections (b)(4), (5),
   57-3  (7), and (8)> of this section and all academic indicators under
   57-4  Section 21.7531 of this code; and
   57-5              (2)  the actual campus performance to the projected
   57-6  campus performance calculated by the commissioner of education.
   57-7  Projected grade performance shall be based on differences between
   57-8  student population and districts and shall be calculated in a
   57-9  manner that will assure that approximately 50 percent of campuses
  57-10  actually rate above and below the projected performance level <the
  57-11  performance of each district to the projection of expected
  57-12  performance of that district considering the wealth and
  57-13  demographics of the district>.
  57-14        (e) <(d)>  The State Board of Education by rule shall
  57-15  authorize the combination of this report with other reports and
  57-16  financial statements and shall restrict the number and length of
  57-17  reports that <school districts,> school <district> employees<,> and
  57-18  school campuses are required to prepare.
  57-19        SECTION 9.02.  This article takes effect September 1, 1993.
  57-20               ARTICLE 10.  FACTUAL ERRORS IN TEXTBOOKS
  57-21        SECTION 10.01.  Subchapter B, Chapter 12, Education Code, is
  57-22  amended by adding Section 12.37 to read as follows:
  57-23        Sec. 12.37.  DAMAGES FOR FACTUAL ERRORS.  (a)  Except as
  57-24  provided by Subsection (b) of this section, if a textbook for which
  57-25  a contract was executed by the State Board of Education contains a
   58-1  substantive factual error, the publisher is liable to the state for
   58-2  an amount equal to three times the amount of the purchase price of
   58-3  the copies of the textbook purchased.
   58-4        (b)  A publisher is not liable to the state under Subsection
   58-5  (a) of this section if the publisher notifies the State Board of
   58-6  Education of the factual error in the textbook before the final
   58-7  hearing on adoption of textbooks by the board.
   58-8        (c)  The attorney general may bring suit in the appropriate
   58-9  court of Travis County to collect damages under this section.
  58-10        SECTION 10.02.  The change in law made by this article
  58-11  applies only to a contract executed on or after the effective date
  58-12  of this article.  A contract executed before the effective date of
  58-13  this article is covered by the law in effect when the contract was
  58-14  executed, and the former law is continued in effect for this
  58-15  purpose.
  58-16        SECTION 10.03.  This article takes effect September 1, 1993.
  58-17               ARTICLE 11.  STUDY OF EDUCATIONAL SYSTEM
  58-18        SECTION 11.01.  (a)  The Educational Economic Policy
  58-19  Committee shall conduct a study on the creation of an educational
  58-20  system that maximizes equity and efficiency in public schools.  The
  58-21  committee shall consider the following:
  58-22              (1)  campus-based funding;
  58-23              (2)  privatization of services;
  58-24              (3)  venture schools; and
  58-25              (4)  open enrollment.
   59-1        (b)  The committee shall submit a report of its findings and
   59-2  recommendations to the legislature not later than January 1, 1995.
   59-3        SECTION 11.02.  This article takes effect immediately.
   59-4                   ARTICLE 12.  REPEALER; EMERGENCY
   59-5        SECTION 12.01.  Title 2, Education Code, is repealed on
   59-6  September 1, 1995.
   59-7        SECTION 12.02.  The importance of this legislation and the
   59-8  crowded condition of the calendars in both houses create an
   59-9  emergency and an imperative public necessity that the
  59-10  constitutional rule requiring bills to be read on three several
  59-11  days in each house be suspended, and this rule is hereby suspended,
  59-12  and that this Act take effect and be in force according to its
  59-13  terms, and it is so enacted.