1-1  By:  Ratliff                                             S.B. No. 7
    1-2        (In the Senate - Filed January 19, 1993; January 19, 1993,
    1-3  read first time and referred to Committee on Education;
    1-4  May 11, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 9, Nays 2; May 11, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Ratliff            x                               
   1-10        Haley              x                               
   1-11        Barrientos         x                               
   1-12        Bivins                     x                       
   1-13        Harris of Tarrant          x                       
   1-14        Luna               x                               
   1-15        Montford           x                               
   1-16        Shapiro            x                               
   1-17        Sibley             x                               
   1-18        Turner             x                               
   1-19        Zaffirini          x                               
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 7                    By:  Ratliff
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to public school education and finance.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Chapter 16, Education Code, is amended to read as
   1-26  follows:
   1-27                CHAPTER 16.  FOUNDATION SCHOOL PROGRAM
   1-28                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-29        Sec. 16.001.  State Policy.  (a)  It is the policy of the
   1-30  State of Texas that the provision of public education is a state
   1-31  responsibility and that a thorough and efficient system be provided
   1-32  and substantially financed through state revenue sources so that
   1-33  each student enrolled in the public school system shall have access
   1-34  to programs and services that are appropriate to his or her
   1-35  educational needs and that are substantially equal to those
   1-36  available to any similar student, notwithstanding varying local
   1-37  economic factors.
   1-38        (b)  The public school finance system of the State of Texas
   1-39  shall adhere to a standard of neutrality which provides for
   1-40  substantially equal access to similar revenue per student at
   1-41  similar tax effort, considering all state and local tax revenues of
   1-42  districts after acknowledging all legitimate student and district
   1-43  cost differences.
   1-44        Sec. 16.002.  Purpose of Foundation School Program.  (a)  The
   1-45  purposes of the Foundation School Program set forth in this chapter
   1-46  are to guarantee that each school district in the state has:
   1-47              (1)  adequate resources to provide each eligible
   1-48  student a basic instructional program and facilities suitable to
   1-49  the student's educational needs; and
   1-50              (2)  access to a substantially equalized program of
   1-51  financing in excess of basic costs for certain services, as
   1-52  provided by this chapter.
   1-53        (b)  The Foundation School Program consists of two tiers to
   1-54  provide for the purposes specified by Subsection (a) of this
   1-55  section.  The first tier guarantees sufficient financing for all
   1-56  school districts to provide a basic program of education that meets
   1-57  accreditation and other legal standards.  The second tier provides
   1-58  a guaranteed yield system of financing to provide all school
   1-59  districts with substantially equal access to funds to provide an
   1-60  enriched program and additional funds for facilities.
   1-61        Sec. 16.003.  Student Eligibility.  (a)  A student is
   1-62  entitled to the benefits of the Foundation School Program if he is
   1-63  5 years of age or older and under 21 years of age at the beginning
   1-64  of the scholastic year and has not graduated from high school.
   1-65        (b)  A student to whom Subsection (a) of this section does
   1-66  not apply is entitled to the benefits of the Foundation School
   1-67  Program if the student is enrolled in a prekindergarten class under
   1-68  Section 21.136 of this code.
    2-1        (c)  The commissioner of education, in consultation with the
    2-2  Commissioner of Human Services, shall monitor and evaluate
    2-3  prekindergarten programs in the State of Texas as to their
    2-4  developmental appropriateness.  Furthermore, the commissioner of
    2-5  education, in consultation with the Commissioner of Human Services,
    2-6  shall evaluate the potential for coordination on a statewide basis
    2-7  of prekindergarten programs with government-funded early childhood
    2-8  care and education programs such as child care administered under
    2-9  Chapter 44 of the Human Resources Code and federal Head Start
   2-10  programs.  This evaluation shall utilize recommendations contained
   2-11  in the report to the 71st Legislature required by Chapter 717, Acts
   2-12  of the 70th Legislature, Regular Session, 1987.  For the purpose of
   2-13  providing cost-effective care for children during the full work day
   2-14  with developmentally appropriate curriculum, the commissioners
   2-15  shall investigate the use of existing child care program sites as
   2-16  prekindergarten sites.  Following the evaluation required by this
   2-17  section, the commissioners, in cooperation with school districts
   2-18  and other program administrators, shall integrate programs, staff,
   2-19  and program sites for prekindergarten, child care, and federal Head
   2-20  Start programs to the greatest extent possible.
   2-21        (d)  A child may be enrolled in the first grade if he is at
   2-22  least six years of age at the beginning of the scholastic year or
   2-23  has been enrolled in the first grade or has completed kindergarten
   2-24  in the public schools in another state prior to transferring to a
   2-25  Texas public school.
   2-26        Sec. 16.005.  Administration of the Program.  The
   2-27  commissioner of education, in accordance with the rules of the
   2-28  State Board of Education, shall take such action and require such
   2-29  reports consistent with the terms of this chapter as may be
   2-30  necessary to implement and administer the Foundation School
   2-31  Program.
   2-32        Sec. 16.006.  Average Daily Attendance.  (a)  In this
   2-33  chapter, average daily attendance is the quotient of the sum of
   2-34  <determined by the daily> attendance for each day <as averaged each
   2-35  month> of the minimum school year as described under Section
   2-36  16.052(a) of this code and for each day approved by the
   2-37  commissioner of education for an extended year program under
   2-38  Section 21.562 of this code divided by the number of days in the
   2-39  minimum school year.
   2-40        (b)  A school district that experiences a decline of two
   2-41  percent or more in average daily attendance as a result of the
   2-42  closing or reduction in personnel of a military base shall be
   2-43  funded on the basis of the actual average daily attendance of the
   2-44  immediately preceding school year.
   2-45        (c)  The commissioner of education shall adjust the average
   2-46  daily attendance of school districts that have a significant
   2-47  percentage of students whose parent or guardian is a migrant
   2-48  worker.  For the purposes of this subsection, "migrant worker" has
   2-49  the meaning assigned by Section 21.5515 of this code.
   2-50        (d)  The commissioner may adjust the average daily attendance
   2-51  of a school district in which a disaster, flood, extreme weather
   2-52  condition, fuel curtailment, or other calamity has a significant
   2-53  effect on the district's attendance.
   2-54        Sec. 16.007.  Public Education Information Management System
   2-55  (PEIMS).  (a)  Each school district <and each county education
   2-56  district> shall participate in the Public Education Information
   2-57  Management System (PEIMS) and shall provide through that system
   2-58  information required for the administration of this chapter and of
   2-59  other appropriate provisions of this code.
   2-60        (b)  Each school district shall use a uniform accounting
   2-61  system adopted by the commissioner of education for the data
   2-62  required to be reported for the Public Education Information
   2-63  Management System.
   2-64        <(c)  The Central Education Agency shall report annually to
   2-65  the Legislative Education Board the financial status of each county
   2-66  education district.  The report shall include the total state and
   2-67  local education revenues for each tier of the Foundation School
   2-68  Program.>
   2-69        Sec. 16.008.  EQUALIZED FUNDING ELEMENTS.  (a)  The
   2-70  Legislative Education Board shall adopt rules, subject to
    3-1  appropriate notice and opportunity for public comment, for the
    3-2  calculation for each year of a biennium of the qualified funding
    3-3  elements under Section 16.256(e) of this code necessary to achieve
    3-4  the state policy under Section 16.001 of this code not later than
    3-5  the 1994-1995 school year and for each school year thereafter.
    3-6        (b)  Not <Beginning in 1992, not> later than October 1
    3-7  preceding each regular session of the legislature, the board shall
    3-8  report the equalized funding elements to the foundation school fund
    3-9  budget committee, the commissioner of education, and the
   3-10  legislature.
   3-11        <Sec. 16.009.  REVENUE LIMIT.  (a)  The revenue limit is an
   3-12  amount equal to 110 percent of the amount of state and local funds
   3-13  guaranteed under the Foundation School Program per student in
   3-14  weighted average daily attendance to each school district at a
   3-15  total tax rate of $0.25 per $100 of taxable value of property as
   3-16  calculated for the 1994-1995 school year.>
   3-17        <(b)  Not later than April 15, the commissioner of education
   3-18  shall estimate the revenue limit for each school district for the
   3-19  current school year and shall certify that amount to each school
   3-20  district.>
   3-21        <(c)  Not later than August 15 of each year the commissioner
   3-22  of education shall determine as nearly as possible for the current
   3-23  school year:>
   3-24              <(1)  the total amount of state and local funds per
   3-25  student in weighted average daily attendance available in each
   3-26  school district; and>
   3-27              <(2)  the total amount of state and local funds per
   3-28  student in weighted average daily attendance required for debt
   3-29  service in each school district.>
   3-30        <(d)  The commissioner shall determine the total number of
   3-31  students in weighted average daily attendance in school districts
   3-32  in which the amount specified in Subsection (c)(1) of this section,
   3-33  less the amount specified in Subsection (c)(2) of this section,
   3-34  exceeds the revenue limit.>
   3-35        <(e)  If the total number of students in weighted average
   3-36  daily attendance in districts with state and local revenues
   3-37  exceeding the revenue limit equals or exceeds two percent of the
   3-38  total number of students in weighted average daily attendance for
   3-39  the current school year, no school district may levy a tax at a
   3-40  rate that would result in an amount of state and local funds,
   3-41  excluding funds required for debt service, during the next school
   3-42  year that exceeds the revenue limit, except that those districts
   3-43  exceeding the revenue limit may maintain during the next school
   3-44  year the total amount of state and local funds per student in
   3-45  weighted average daily attendance for the current school year.  The
   3-46  commissioner shall notify those districts in which revenues are
   3-47  subject to the limitation imposed in this subsection.>
   3-48        <(f)  In this section:>
   3-49              <(1)  "Weighted student in average daily attendance"
   3-50  has the meaning assigned in Section 16.302 of this code.>
   3-51              <(2)  "Taxable value of property" has the meaning
   3-52  assigned in Section 11.86 of this code.>
   3-53        <Sec. 16.010.  DEFINITION.  In this chapter, "school
   3-54  district" does not include a county education district unless
   3-55  expressly included.>
   3-56        <Sec. 16.011.  NOTICE OF YIELDS TO BE PUBLISHED.  (a)  Not
   3-57  earlier than the 30th day or later than the seventh day before the
   3-58  date of adopting a tax rate for the years 1991, 1992, 1993, and
   3-59  1994, a school district shall publish the following notice, using
   3-60  the yields and tax rates certified by the commissioner:>
   3-61             <"NOTICE OF COMPARABLE TAX RATES AND REVENUES>
   3-62        <"The legislature has enacted a statute on school funding to
   3-63  comply with a court mandate enforcing the state constitution.
   3-64  Under prior statutes, the tax rate for last year provides _____ per
   3-65  student in state and local revenues.  Under this statute, that same
   3-66  rate now provides _____ per student in state and local revenues.>
   3-67        <"State law only requires a minimum tax rate of _____ for
   3-68  county education districts.  State law does not require a school
   3-69  district to adopt additional taxes.  Neither does state law require
   3-70  a school district to adopt a tax rate that maximizes the receipt of
    4-1  state funds.>
    4-2        <"The board of trustees of the _____ School District hereby
    4-3  gives notice that it is considering the adoption of a tax rate of
    4-4  _____ that will provide _____ per student in state and local
    4-5  revenues.">
    4-6        <(b)  If a district is required to give public notice of a
    4-7  hearing under Section 26.06, Tax Code, the notice described by
    4-8  Subsection (a) of this section may be included in the required
    4-9  notice under Section 26.06, Tax Code.>
   4-10        <(c)  The notice described by Subsection (a) of this section
   4-11  shall be published in the two newspapers with the largest
   4-12  circulation within the school district unless only one newspaper is
   4-13  in general circulation within the district.  The notice may not be
   4-14  smaller than one-quarter page of a standard-size or a tabloid-size
   4-15  newspaper, and the headline must be 18-point or larger type.>
   4-16        <(d)  The notice described by Subsection (a) of this section
   4-17  must also be included in the tax bill or a separate statement
   4-18  accompanying the tax bill.>
   4-19        <(e)  The commissioner shall adopt rules to implement this
   4-20  section.>
   4-21        <(f)  This section expires January 1, 1995.>
   4-22     SUBCHAPTER B.  REQUIREMENTS FOR DISTRICT PARTICIPATION IN THE
   4-23                    FOUNDATION SCHOOL PROGRAM FUND
   4-24        Sec. 16.051.  Required Compliance.  In order to receive
   4-25  financial support from the Foundation School Fund, a school
   4-26  district must comply with the standards set forth in this
   4-27  subchapter.
   4-28        Sec. 16.052.  OPERATION OF SCHOOLS; TEACHER PREPARATION AND
   4-29  STAFF DEVELOPMENT.  (a)  Except as provided by Subsection (c) of
   4-30  this section, for each school year, each school district must
   4-31  provide for not less than:
   4-32              (1)  180 days of instruction for students; and
   4-33              (2)  three days of preparation for teachers before the
   4-34  attendance of students is required at the beginning of the regular
   4-35  school term and four days of staff development training during the
   4-36  regular school term <Each school district must provide for not less
   4-37  than 180 days of instruction for students and not less than three
   4-38  days of preparation for teachers for each school year, except as
   4-39  provided in Subsection (c) of this section>.
   4-40        (b)  Each school district must provide for the <not less than
   4-41  20 hours of> staff development training required under Subsection
   4-42  (a) of this section under guidelines provided by the commissioner
   4-43  of education.  The training provided must include technology
   4-44  training and must occur during regular hours of required teacher
   4-45  service.  On the request of a teacher, a school district may credit
   4-46  the teacher compensatory time to be applied toward the number of
   4-47  training days <hours> required under Subsection (a) of this section
   4-48  <this subsection> for workshops, conferences, or other professional
   4-49  training that the teacher has attended.
   4-50        (c)  The commissioner of education may approve the operation
   4-51  of schools for less than the number of days of instruction and
   4-52  teacher preparation and staff development training otherwise
   4-53  required when disasters, floods, extreme weather conditions, fuel
   4-54  curtailments, or other calamities have caused the closing of the
   4-55  school.
   4-56        (d)  Each school district may reserve three hours of the
   4-57  first preparation day provided each school year under Subsection
   4-58  (a) of this section for faculty staff meetings.
   4-59        Sec. 16.053.  ACCREDITATION.  Each school district must be
   4-60  accredited by the Central Education Agency.
   4-61        Sec. 16.054.  Student/Teacher Ratios; Class Size.
   4-62  (a)  Except as provided by Subsection (b) of this section, each
   4-63  school district must employ a sufficient number of certified
   4-64  teachers to maintain an average ratio of not less than one teacher
   4-65  for each 20 students in average daily attendance.
   4-66        (b)  A school district may not enroll more than 22 students
   4-67  in a kindergarten, first, second, third, or fourth grade class.
   4-68  This requirement shall not apply during the last 12 weeks of any
   4-69  school year.
   4-70        (c)  In determining the number of students to enroll in any
    5-1  class, a district shall consider the subject to be taught, the
    5-2  teaching methodology to be used, and any need for individual
    5-3  instruction.
    5-4        (d)  On application of a school district, the commissioner
    5-5  may except the district from the limits in Subsection (b) of this
    5-6  section if the commissioner finds the limits work an undue hardship
    5-7  on the district.  An exception expires at the end of the semester
    5-8  for which it is granted, and the commissioner may not grant an
    5-9  exception for more than one semester at a time.
   5-10        (e)  The commissioner shall report to the legislature each
   5-11  biennium regarding compliance with this section.  The report must
   5-12  include:
   5-13              (1)  a statement of the number of school districts
   5-14  granted an exception under Subsection (d) of this section; and
   5-15              (2)  an estimate of the total cost incurred by school
   5-16  districts in that biennium in complying with this section.
   5-17        (f)  Not later than the 45th day after the first day of the
   5-18  school year, each school committee established under Section 21.931
   5-19  of this code shall file a written report with the school district
   5-20  that states the class size of each class in the school.  Not later
   5-21  than the 60th day after the first day of the school year, each
   5-22  school district shall forward the reports to the commissioner.
   5-23        Sec. 16.055.  Compensation of Professional and
   5-24  Paraprofessional Personnel.  (a)  A school district must pay each
   5-25  employee who is qualified for and employed in a position classified
   5-26  under the Texas Public Education Compensation Plan for
   5-27  Administrative and Supervisory Personnel set forth in Section
   5-28  16.056 of this chapter not less than the minimum monthly base
   5-29  salary, plus increments for <teaching> experience, specified for
   5-30  the position and must pay other specified personnel in the manner
   5-31  provided by Section 16.0562 or Section 16.057 of this code.
   5-32        (b)  Contracts for personnel shall be made on the basis of a
   5-33  minimum of 10 months' service, which must include a minimum of 187
   5-34  <the number of> days of service <instruction for students and days
   5-35  of preparation for personnel required by Section 16.052 of this
   5-36  code>.  The days of staff development <preparation> required under
   5-37  Section 16.052(a) of this code <herein> shall be conducted by local
   5-38  boards of education under rules and regulations established by the
   5-39  State Board of Education that are consistent with the state
   5-40  accreditation standards for program planning, preparation, and
   5-41  improvement.  <Personnel employed for more than 10 months shall be
   5-42  paid not less than the minimum monthly base pay plus increments for
   5-43  experience for each month of actual employment.  Personnel employed
   5-44  for 11 months at pay grades 1-11 must render 202 days of service,
   5-45  and personnel employed for 12 months at pay grades 1-11 must render
   5-46  220 days of service.>  Personnel employed for 11 months <at pay
   5-47  grades 12-18> must render a minimum of 207 days of service, and
   5-48  personnel employed for 12 months <at pay grades 12-18> must render
   5-49  a minimum of 226 days of service.  However, the number of days of
   5-50  service required by this subsection may be reduced by the
   5-51  commissioner under Section 16.052(c) of this code, and the
   5-52  reduction shall not reduce the total salaries of personnel.
   5-53        (c)  Notwithstanding Subsection (b) of this section, a
   5-54  vocational agriculture teacher employed for 12 months shall render
   5-55  226 days of service regardless of pay grade.
   5-56        Sec. 16.056.  Texas Public Education Compensation Plan For
   5-57  Administrative and Supervisory Personnel.  (a)  School district
   5-58  administrative or supervisory personnel who are qualified for and
   5-59  employed in positions described in Subsection (d) of this section
   5-60  shall be paid not less than the monthly base salary, plus
   5-61  increments for <teaching> experience, set forth in Subsection (c)
   5-62  of this section, or greater amounts provided by appropriation.
   5-63        (b)  Each individual shall advance one step per each year of
   5-64  experience until step 10 is reached.  <For each year, up to a
   5-65  maximum of two years, of work experience required for certification
   5-66  in a vocational field, a vocational teacher who is certified in
   5-67  that field is entitled to salary step credit as if the work
   5-68  experience were teaching experience.>
   5-69        (c)  SALARY SCHEDULE BY STEPS
   5-70     0     1     2     3     4     5     6     7     8     9    10
    6-1   1700  1814  1928  2042  2156  2270  2384  2498  2612  2726  2840
    6-2        (d)  The following positions are entitled to the minimum
    6-3  monthly salary set by Subsection (c) of this section for the number
    6-4  of annual contract months specified:
    6-5          No.                                 Class Title
    6-6       Months Paid
    6-7         <10>                            <Nurse, R.N. and/or>
    6-8                                           <Bachelor's Degree>
    6-9         <10>                            <Special Education>
   6-10                                           <Related>
   6-11                                           <Service Personnel (other>
   6-12                                           <than Occupational or>
   6-13                                           <Physical Therapist),>
   6-14                                           <Bachelor's Degree>
   6-15         <10>                            <Teacher, Bachelor's>
   6-16                                            <Degree>
   6-17         <10>                            <Vocational Teacher,>
   6-18         <11>                            <Bachelor's Degree and/or>
   6-19         <12>                             <Certified in Field>
   6-20         <10>                            <Librarian I, Bachelor's>
   6-21                                            <Degree>
   6-22         <10>                            <Visiting Teacher I,>
   6-23                                            <Psychological Associate,>
   6-24                                            <Bachelor's Degree>
   6-25         <10>                            <Special Education>
   6-26                                            <Related>
   6-27                                            <Service Personnel (other>
   6-28                                            <than Occupational or>
   6-29                                            <Physical Therapist),>
   6-30                                            <Master's Degree>
   6-31         <10>                            <Teacher, Master's Degree>
   6-32         <10>                            <Vocational Teacher,>
   6-33         <11>                             <Master's Degree>
   6-34         <12>
   6-35         <10>                            <Librarian II, Master's>
   6-36                                            <Degree>
   6-37         <10>                            <Physician, M.D.>
   6-38         <10>                            <Teacher, Bachelor of Laws>
   6-39                                            <or Doctor of Jurispru->
   6-40                                            <dence Degree>
   6-41         <10>                            <Teacher, Doctor's Degree>
   6-42         <10>                            <Special Duty Teacher,>
   6-43                                            <Master's Degree>
   6-44         <10>                            <Occupational Therapist>
   6-45         <10>                            <Physical Therapist>
   6-46         <10>                            <Educational>
   6-47                                            <Diagnostician>
   6-48         <10>                            <Visiting Teacher II,>
   6-49                                            <Master's Degree>
   6-50         <10>                            <Counselor I,>
   6-51                                            <Psychologist>
   6-52         <10>                            <School Social Worker>
   6-53         10                               Supervisor I
   6-54         10                               Part-time Principal--11 or
   6-55                                            fewer teachers on campus
   6-56         10                               Instructional/Administra-
   6-57                                            tive Officer I
   6-58         10                               Assistant Principal--20 or
   6-59                                            more teachers on campus
   6-60         10                               Instructional/Administra-
   6-61                                            tive Officer II
   6-62         11                               Principal--19 or fewer
   6-63                                            teachers on campus
   6-64         10                               Instructional/Administra-
   6-65                                            tive Officer III
   6-66         11                               Principal--20-49 teachers
   6-67                                            on campus
   6-68         11                               Instructional/Administra-
   6-69                                            tive Officer IV
   6-70         11                               Principal--50-99 teachers
    7-1                                            on campus
    7-2         12                               Principal--100 or more
    7-3                                            teachers on campus
    7-4         12                               Instructional/Administra-
    7-5                                            tive Officer V
    7-6         12                               Instructional/Administra-
    7-7                                            tive Officer VI
    7-8         12                               Superintendent--District
    7-9                                            with 3,000
   7-10                                            or less ADA
   7-11         12                               Instructional/Administra-
   7-12                                            tive Officer VII
   7-13         12                               Superintendent--District
   7-14                                            with 3,001-12,500 ADA
   7-15         12                               Instructional/Administra-
   7-16                                            tive Officer VIII
   7-17         12                               Superintendent--District
   7-18                                            with 12,501-50,000 ADA
   7-19         12                               Superintendent--District
   7-20                                            with 50,000 or more ADA
   7-21        Sec. 16.0561.  DUTIES OF COMMISSIONER AND STATE BOARD OF
   7-22  EDUCATION CONCERNING PERSONNEL COMPENSATION AND CERTIFICATION.  (a)
   7-23  <(e)>  With the approval of the State Board of Education, the
   7-24  commissioner of education may add additional positions and months
   7-25  of service to the Texas Public Education Compensation Plan for
   7-26  Administrative and Supervisory Personnel under Section 16.056(d) of
   7-27  this code or to the list provided by Section 16.0562(e) of this
   7-28  code to reflect curriculum and program changes authorized by law.
   7-29  With the approval of the board, the commissioner shall also develop
   7-30  policies for the implementation and administration of <the>
   7-31  compensation of personnel <plan>.
   7-32        (b) <(f)>  Each person employed in the public schools of this
   7-33  state who is an educational aide, teacher trainee, or nondegree
   7-34  teacher or who is assigned to a position classified under the Texas
   7-35  Public Education Compensation Plan for Administrative and
   7-36  Supervisory Personnel as provided by Section 16.056(d) of this code
   7-37  or assigned to the list provided by Section 16.0562(e) of this code
   7-38  must be certified according to the certification requirements or
   7-39  standards for each position as established by rule adopted by the
   7-40  State Board of Education.  However, additional certification may
   7-41  not be required of a person holding a valid state license as a
   7-42  speech language pathologist or audiologist.  Persons other than
   7-43  those holding such a license may only be employed to render such
   7-44  services if an acceptable licensed applicant is not available.
   7-45        (c) <(g)>  The State Board of Education shall prescribe the
   7-46  general duties and required preparation and education for
   7-47  educational aides, teacher trainees, and nondegree teachers and for
   7-48  the positions listed in Section 16.056 <Subsection> (d) of this
   7-49  code or Section 16.0562(e) of this code <section under the
   7-50  circumstances described therein>.
   7-51        <(h)  In determining the placement of a teacher on the salary
   7-52  schedule under Subsection (c) of this section, a district shall
   7-53  credit the teacher for each year of experience, whether or not the
   7-54  years are consecutive.  Notwithstanding the provision of this
   7-55  subsection, no teacher shall be placed on the salary schedule at a
   7-56  step above the step where the teacher would have been placed had
   7-57  that teacher remained in continuous service.>
   7-58        Sec. 16.0562.  MINIMUM SALARY SCHEDULE FOR SPECIFIED
   7-59  PERSONNEL OTHER THAN ADMINISTRATIVE OR SUPERVISORY PERSONNEL.
   7-60  (a)  In this section:
   7-61              (1)  "FSP" means the amount appropriated in the General
   7-62  Appropriations Act for the biennium for the Foundation School
   7-63  Program.
   7-64              (2)  "ADA" means the total estimated average daily
   7-65  attendance for public schools used for purposes of the General
   7-66  Appropriations Act.
   7-67              (3)  "SF" means the applicable salary factor provided
   7-68  by Subsection (c) of this section.
   7-69        (b)  Personnel listed under Subsection (e) of this section
   7-70  shall be paid not less than the monthly salary, based on years of
    8-1  experience, determined by the following formula:
    8-2                            SF x (FSP/ADA)
    8-3        (c)  The salary factors per step for purposes of Subsection
    8-4  (b) of this section are as follows:
    8-5  Years Experience        0        1       2       3        4       5
    8-6  Salary Factor       .8130    .8675   .9220   .9765   1.0311  1.0856
    8-7  Years Experience        6        7       8       9       10      11
    8-8  Salary Factor      1.1401   1.1946  1.2338  1.2707   1.3051  1.3367
    8-9  Years Experience       12       13      14      15       16      17
   8-10  Salary Factor      1.3658   1.3936  1.4189  1.4428   1.4648  1.4854
   8-11  Years Experience       18       19     20+
   8-12  Salary Factor      1.4973   1.5050  1.5093
   8-13        (d)  Each individual shall advance one step per year of
   8-14  experience until step 20 is reached.  For each year, up to a
   8-15  maximum of two years, of work experience required for certification
   8-16  in a vocational field, a vocational teacher who is certified in
   8-17  that field is entitled to teaching experience credit as if the work
   8-18  experience were teaching experience.
   8-19        (e)  The following positions are entitled to the minimum
   8-20  monthly salary set by this section for the number of annual
   8-21  contract months specified:
   8-22     No.
   8-23  Months Paid                       Class Title
   8-24      10       Nurse, R.N. and/or Bachelor's Degree
   8-25      10       Special Education  Related  Service  Personnel  (other
   8-26                 than Occupational or Physical Therapist), Bachelor's
   8-27                 Degree
   8-28      10       Teacher, Bachelor's Degree
   8-29      10       Vocational Teacher,
   8-30      11       Bachelor's Degree and/or
   8-31      12       Certified in Field
   8-32      10       Librarian I, Bachelor's Degree
   8-33      10       Visiting Teacher I, Psychological Associate,
   8-34                 Bachelor's Degree
   8-35      10       Special Education  Related  Service  Personnel  (other
   8-36                 than Occupational or Physical Therapist), Master's
   8-37                 Degree
   8-38      10       Teacher, Master's Degree
   8-39      10       Vocational Teacher,
   8-40      11       Master's Degree
   8-41      12
   8-42      10       Librarian II, Master's Degree
   8-43      10       Physician, M.D.
   8-44      10       Teacher, Bachelor of Laws or Doctor of Jurisprudence
   8-45                 Degree
   8-46      10       Teacher, Doctor's Degree
   8-47      10       Special Duty Teacher, Master's Degree
   8-48      10       Occupational Therapist
   8-49      10       Physical Therapist
   8-50      10       Educational Diagnostician
   8-51      10       Visiting Teacher II, Master's Degree
   8-52      10       Counselor I, Psychologist
   8-53      10       School Social Worker
   8-54        (f)  In determining the placement of a teacher on the
   8-55  schedule under Subsection (c) of this section, a district shall
   8-56  credit the teacher for each year of experience whether or not the
   8-57  years are consecutive.
   8-58        Sec. 16.057.  Salary Of Teacher Formerly On Career Ladder
   8-59  <Salary Supplement>.  Notwithstanding Section 16.0562 of this code,
   8-60  a teacher who received a career ladder salary supplement for the
   8-61  1992-1993 school year is entitled to the greater of:
   8-62              (1)  the salary applicable to the teacher under Section
   8-63  16.0562 of this code; or
   8-64              (2)  the salary that is the sum of the salary the
   8-65  teacher received for the 1992-1993 school year plus the quotient of
   8-66  the amount of the career ladder salary supplement for that year
   8-67  divided by 10.  <(a)  Except as provided by Subsection (c) of this
   8-68  section, each teacher on level two, three, or four of a career
   8-69  ladder is entitled to the following annual supplement in addition
   8-70  to the minimum salary set by this subchapter:>
    9-1                     <Level 2 . . . . . . . $2,000>
    9-2                     <Level 3 . . . . . . . $4,000>
    9-3                     <Level 4 . . . . . . . $6,000>
    9-4        <(b)  If the district pays more than the state minimum salary
    9-5  prescribed by this subchapter, the teacher is entitled to the
    9-6  career ladder supplement in addition to the amount otherwise paid
    9-7  by the district for the teacher's step.>
    9-8        <(c)  If the allotment under Section 16.158 of this code that
    9-9  is designated for support of the career ladder will not fully fund
   9-10  the supplements under this section:>
   9-11              <(1)  the district may reduce the supplements to not
   9-12  less than the following:>
   9-13                     <Level 2 . . . . . . . $1,500>
   9-14                     <Level 3 . . . . . . . $3,000>
   9-15                     <Level 4 . . . . . . . $4,500>
   9-16  <or;>
   9-17              <(2)  provide for stricter performance criteria than
   9-18  that provided under Section 13.302 of this code, subject to the
   9-19  approval of the State Board of Education; or>
   9-20              <(3)  take action under both Subdivisions (1) and (2)
   9-21  of this subsection.>
   9-22                   SUBCHAPTER C.  BASIC ENTITLEMENT
   9-23        Sec. 16.101.  Basic Allotment.  For each student in average
   9-24  daily attendance, not including the time students spend each day in
   9-25  special education or vocational education programs for which an
   9-26  additional allotment is made under Subchapter D of this chapter, a
   9-27  district is entitled to an allotment of $2,450, <$2,200 for the
   9-28  1991-1992 school year, $2,400 for the 1992-1993 school year, $2,600
   9-29  for the 1993-1994 school year, and $2,800 for the 1994-1995 school
   9-30  year and thereafter> or a greater amount adopted by the foundation
   9-31  school fund budget committee under Section 16.256 of this code <for
   9-32  the 1993-1994 school year and each school year thereafter>.  A
   9-33  different <greater> amount for any school year may be provided by
   9-34  appropriation.
   9-35        Sec. 16.102.  Cost of Education Adjustment.  (a)  The basic
   9-36  allotment for each district is adjusted to reflect the geographic
   9-37  variation in known resource costs and costs of education due to
   9-38  factors beyond the control of the school district.  <Except as
   9-39  provided by this section, the adjustment is that provided under
   9-40  Section 16.206 of this code.>
   9-41        (b)  The adjustment for the 1993-1994 and
   9-42  1994-1995 <1991-1992 and 1992-1993> school years is the cost of
   9-43  education index and formula adopted in December 1990 by the
   9-44  foundation school fund budget committee.  The <For the 1991-1992
   9-45  and 1992-1993 school years, the> commissioner of education shall
   9-46  recalculate the cost of education index for school districts that
   9-47  are eligible for the adjustment under Section 16.103 of this code,
   9-48  excluding from the computation the calculation for the diseconomies
   9-49  of scale component and substituting a value of 1.00.  Beginning
   9-50  with the 1995-1996 school year, the foundation school fund budget
   9-51  committee shall determine the cost of education adjustment under
   9-52  Section 16.256 of this code.  <This subsection expires September 1,
   9-53  1993.>
   9-54        Sec. 16.103.  SMALL DISTRICT ADJUSTMENT.  (a)  The basic
   9-55  allotment for certain small districts is adjusted in accordance
   9-56  with Subsections (b) and (c) of this section.  In this section:
   9-57              (1)  "AA" is the district's adjusted allotment per
   9-58  student;
   9-59              (2)  "ADA" is the number of students in average daily
   9-60  attendance for which the district is entitled to an allotment under
   9-61  Section 16.101 of this code; and
   9-62              (3)  "ABA" is the adjusted basic allotment determined
   9-63  under Section 16.102 of this code.
   9-64        (b)  The basic allotment <average daily attendance> of a
   9-65  school district that contains at least 300 square miles and has not
   9-66  more than 1,600 students in average daily attendance is adjusted by
   9-67  applying the formula:
   9-68        (c)  The basic allotment <average daily attendance> of a
   9-69  school district that contains less than 300 square miles and has
   9-70  not more than 1,600 students in average daily attendance is
   10-1  adjusted by applying the formula:
   10-2        <(e)  This section expires September 1, 1993.>
   10-3        Sec. 16.1031.  USE OF SMALL DISTRICT ADJUSTMENT IN
   10-4  CALCULATING SPECIAL ALLOTMENTS.  In determining the amount of a
   10-5  special allotment under Subchapter D of this chapter for a district
   10-6  to which Section 16.103 of this code applies, a district's adjusted
   10-7  basic allotment is considered to be the district's adjusted
   10-8  allotment determined under Section 16.103.  <This section expires
   10-9  September 1, 1993.>
  10-10        Sec. 16.104.  Sparsity Adjustment.  Notwithstanding Sections
  10-11  16.101, 16.102, and 16.103 of this code, a school district that has
  10-12  fewer than 130 students in average daily attendance shall be
  10-13  provided an adjusted basic allotment on the basis of 130 average
  10-14  daily attendance if it offers a kindergarten through grade 12
  10-15  program and has prior or current year's average daily attendance of
  10-16  at least 90 students or is 30 miles or more by bus route from the
  10-17  nearest high school district.  A district offering a kindergarten
  10-18  through grade 8 program whose prior or current year's average daily
  10-19  attendance was at least 50 students or which is 30 miles or more by
  10-20  bus route from the nearest high school district shall be provided
  10-21  an adjusted basic allotment on the basis of 75 average daily
  10-22  attendance.  An average daily attendance of 60 students shall be
  10-23  the basis of providing the adjusted basic allotment if a district
  10-24  offers a kindergarten through grade 6 program and has prior or
  10-25  current year's average daily attendance of at least 40 students or
  10-26  is 30 miles or more by bus route from the nearest high school
  10-27  district.  <This section expires September 1, 1993.>
  10-28                   SUBCHAPTER D.  SPECIAL ALLOTMENTS
  10-29        Sec. 16.151.  Special Education.  (a)  For each student in
  10-30  average daily attendance in a special education program under
  10-31  Subchapter N, Chapter 21, of this code, in a mainstream
  10-32  instructional arrangement, a school district is entitled to an
  10-33  annual allotment equal to the adjusted basic allotment multiplied
  10-34  by 1.1.  For each full-time equivalent student in average daily
  10-35  attendance in a special education program under Subchapter N,
  10-36  Chapter 21, of this code, in an instructional arrangement other
  10-37  than a mainstream instructional arrangement, a district is entitled
  10-38  to an annual allotment equal to the adjusted basic allotment
  10-39  multiplied by a weight determined according to instructional
  10-40  arrangement as follows:
  10-41              Homebound ................................... 5.0
  10-42              Hospital class ........................ 3.0 <5.0>
  10-43              Speech therapy ....................... 5.0 <7.11>
  10-44              Resource room ......................... 3.0 <2.7>
  10-45              Self-contained, mild and moderate,
  10-46              regular campus ........................ 3.0 <2.3>
  10-47              Self-contained, severe, regular
  10-48              campus ................................ 3.0 <3.5>
  10-49              Self-contained, separate campus ............. 2.7
  10-50              Multidistrict class ................... 2.7 <3.5>
  10-51              Nonpublic day school .................. 1.7 <3.5>
  10-52              <Vocational adjustment class ............... 2.3>
  10-53              Community class ....................... 2.7 <3.5>
  10-54              <Mainstream ............................... 0.25>
  10-55        (b)  A special instructional arrangement for handicapped
  10-56  students residing in care and treatment facilities, other than
  10-57  state schools, whose parents or guardians do not reside in the
  10-58  district providing education services shall be established under
  10-59  the rules of the State Board of Education.  The funding weight for
  10-60  this arrangement shall be 4.0 <5.0> for those students who receive
  10-61  their education service on a local school district campus.  A
  10-62  special instructional arrangement for handicapped students residing
  10-63  in state schools shall be established under the rules of the State
  10-64  Board of Education with a funding weight of 2.8 <5.0>.
  10-65        (c)  Beginning with the 1995-1996 school year, the
  10-66  self-contained, separate campus; multidistrict class; and community
  10-67  class instructional arrangements shall be combined into a single
  10-68  instructional arrangement known as the off home campus
  10-69  instructional arrangement.  For funding purposes, the number of
  10-70  contact hours credited per day for each student in the off home
   11-1  campus instructional arrangement may not exceed the contact hours
   11-2  credited per day for the multidistrict class instructional
   11-3  arrangement in the 1992-1993 school year.
   11-4        (d)  Beginning with the 1995-1996 school year, for funding
   11-5  purposes the contact hours credited per day for each student in the
   11-6  resource room; self-contained, mild and moderate; and
   11-7  self-contained, severe, instructional arrangements may not exceed
   11-8  the average of the statewide total contact hours credited per day
   11-9  for those three instructional arrangements in the 1992-1993 school
  11-10  year.
  11-11        (e)  The State Board of Education by rule shall prescribe the
  11-12  qualifications an instructional arrangement must meet in order to
  11-13  be funded as a particular instructional arrangement under this
  11-14  section.  In prescribing the qualifications that a mainstream
  11-15  instructional arrangement must meet, the board shall require that
  11-16  the arrangement provide to eligible students with disabilities
  11-17  special education services in the regular classroom with any
  11-18  necessary direct or indirect special education support.
  11-19        (f)  In this section, "full-time equivalent student" means 30
  11-20  hours of contact a week between a special education student and
  11-21  special education program personnel.
  11-22        (g)  The State Board of Education shall adopt rules and
  11-23  procedures governing contracts for residential placement of special
  11-24  education students.  The legislature shall provide by appropriation
  11-25  for the state's share of the costs of those placements.
  11-26        (h)  Funds allocated under this section, other than an
  11-27  indirect cost allotment established under State Board of Education
  11-28  rule, must be used in the special education program under
  11-29  Subchapter N, Chapter 21, of this code.
  11-30        (i)  In the determination of instructional arrangements for
  11-31  students in residential instructional arrangements, the State Board
  11-32  of Education shall develop arrangements that encourage placement of
  11-33  students in the least restrictive environment appropriate for their
  11-34  educational needs.
  11-35        (j)  The Central Education Agency shall encourage the
  11-36  placement of students in special education programs in the least
  11-37  restrictive environment appropriate for their educational needs.
  11-38  <The Central Education Agency shall provide transitional support
  11-39  for the movement of students from self-contained severe (totally
  11-40  self-contained) to self-contained mild and moderate (partially
  11-41  self-contained) instructional arrangements.  For each student
  11-42  placed in a partially self-contained classroom who was placed in a
  11-43  totally self-contained classroom for at least two-thirds of the
  11-44  prior year, a district will receive $2,500.  This payment must be
  11-45  used to facilitate the placement of the student in the less
  11-46  restrictive environment (partially self-contained classroom).  A
  11-47  district may not receive more than one support payment for any
  11-48  individual student.  This support payment shall be forfeited by the
  11-49  district if the student is returned to the totally self-contained
  11-50  classroom instructional arrangement within one month of placement
  11-51  into the partially self-contained classroom or within one year of
  11-52  initial reclassification without adequate justification.>
  11-53        (k)  A school district that maintains for two successive
  11-54  years a ratio of full-time equivalent students placed in partially
  11-55  or totally self-contained classrooms to the number of full-time
  11-56  equivalent students placed in resource room or mainstream
  11-57  instructional arrangements <partially self-contained classrooms>
  11-58  that is 25 percent higher than the statewide average ratio shall be
  11-59  reviewed by the Central Education Agency to determine the
  11-60  appropriateness of student placement.  The commissioner of
  11-61  education may reduce the special education allotment the district
  11-62  receives to the level to which the district would be entitled if
  11-63  the district's ratio was not more than 25 percent higher than the
  11-64  statewide average ratio.  <To the extent that there are net cost
  11-65  savings to the state resulting from the movement of students from
  11-66  totally self-contained to partially self-contained, as provided in
  11-67  Subsection (j) of this section, those net savings will be directed
  11-68  to regional education service centers to provide technical
  11-69  assistance in accordance with Section 11.33(c) of this code
  11-70  regarding the movement of students to less restrictive environments
   12-1  to those school districts whose ratio of full-time equivalent
   12-2  students placed in totally self-contained classrooms is 25 percent
   12-3  higher than the statewide average.>
   12-4        (l)  A school district that provides an extended year program
   12-5  required by federal law for special education students who may
   12-6  regress is entitled to receive funds in an amount equal to 75
   12-7  percent, or a lesser percentage determined by the commissioner of
   12-8  education, of the adjusted basic allotment or adjusted allotment,
   12-9  as applicable, for each full-time equivalent student in average
  12-10  daily attendance, multiplied by the amount designated for the
  12-11  student's instructional arrangement under this section, for each
  12-12  day the program is provided divided by the number of days in the
  12-13  minimum school year.  The total amount of state funding for
  12-14  extended year services under this section may not exceed $10
  12-15  million per year.  A school district may use funds received under
  12-16  this section only in providing an extended year program <A student
  12-17  in a mainstream instructional arrangement who is not also in
  12-18  another instructional arrangement as provided in Subsection (a) of
  12-19  this section is provided the support necessary for the student to
  12-20  remain in the regular classroom.  This support may include related
  12-21  services as defined in Section 21.502 of this code, special
  12-22  teaching, or other special education support services while in the
  12-23  regular classroom>.
  12-24        (m)  From the total amount of funds appropriated for special
  12-25  education under this section, the commissioner of education shall
  12-26  withhold an amount specified in the General Appropriations Act,
  12-27  which for the 1994-1995 biennium may not exceed $2 million, and
  12-28  distribute that amount to school districts for programs under
  12-29  Section 21.513 of this code.  The program established under that
  12-30  section is required only in school districts in which the program
  12-31  is financed by funds distributed under this section and any other
  12-32  funds available for the program.  After deducting the amount
  12-33  withheld under this subsection from the total amount appropriated
  12-34  for special education, the commissioner of education shall reduce
  12-35  each district's allotment proportionately and shall allocate funds
  12-36  to each district accordingly.
  12-37        Sec. 16.152.  COMPENSATORY EDUCATION ALLOTMENT.  (a)  For
  12-38  each student who is educationally disadvantaged or who is a
  12-39  nonhandicapped student residing in a residential placement facility
  12-40  in a district in which the student's parent or legal guardian does
  12-41  not reside, a district is entitled to an annual allotment equal to
  12-42  the adjusted basic allotment multiplied by 0.2, and by 2.41 for
  12-43  each full-time equivalent student who is in a remedial and support
  12-44  program under Section 21.557 of this code because the student is
  12-45  pregnant.
  12-46        (b)  For purposes of this section, the number of
  12-47  educationally disadvantaged students is determined by averaging the
  12-48  best six months' enrollment in the national school lunch program of
  12-49  free or reduced-price lunches for the preceding school year.
  12-50        (c)  Funds allocated under this section, other than an
  12-51  indirect cost allotment established under State Board of Education
  12-52  rule, which shall not exceed 15 percent, must be used in providing
  12-53  remedial and compensatory education programs under Section 21.557
  12-54  of this code, and the district must account for the expenditure of
  12-55  state funds by program and by campus.  Funds allocated under this
  12-56  section, other than the indirect cost allotment, shall only be
  12-57  expended to improve and enhance programs and services funded under
  12-58  the regular education program.
  12-59        (d)  The Central Education Agency shall evaluate the
  12-60  effectiveness of remedial and support programs provided under
  12-61  Section 21.557 of this code for students at risk of dropping out of
  12-62  school.
  12-63        (e)  A school district in which the actual dropout rate in
  12-64  any school year exceeds the state's dropout rate goal for that year
  12-65  under Subsection (a) of Section 11.205 of this code shall, for the
  12-66  school year immediately following that school year, allocate a
  12-67  percentage of the district's allotment under this section to
  12-68  remedial and support programs under Section 21.557 of this code for
  12-69  students at risk of dropping out of school.  The percentage
  12-70  allocated to those programs must be at least equal to the state's
   13-1  actual dropout rate for the preceding year.  The programs must be
   13-2  programs authorized by the State Board of Education.  The Central
   13-3  Education Agency shall provide to the district technical assistance
   13-4  in reducing the district's dropout rate.  At the request of a
   13-5  district, the commissioner of education may exempt the district
   13-6  from the requirements of this section if the commissioner finds
   13-7  that special circumstances in the district merit the exemption.
   13-8        (f)  The commissioner of education may:
   13-9              (1)  retain a portion of the total amount allotted
  13-10  under Subsection (a) of this section that the commissioner
  13-11  considers appropriate to finance pilot programs under Section
  13-12  11.191 of this code and to finance intensive remedial instruction
  13-13  programs and study guides provided under Sections 21.552(b) and (c)
  13-14  of this code; and
  13-15              (2)  reduce each district's allotment proportionately.
  13-16        (g)  From the total amount of funds appropriated for
  13-17  allotments under this section, the commissioner of education shall,
  13-18  each fiscal year, withhold the amount of $10,000,000 and distribute
  13-19  that amount for programs under Section 21.114 of this code.  The
  13-20  program established under that section is required only in school
  13-21  districts in which the program is financed by funds distributed
  13-22  under this section and any other funds available for the program.
  13-23        (h)  The commissioner of education shall coordinate the funds
  13-24  withheld under Subsection (g) of this section and any other funds
  13-25  available for the program and shall distribute those funds.  To
  13-26  receive funds for the program, a school district must apply to the
  13-27  commissioner.  The commissioner shall give a preference to the
  13-28  districts that apply that have the highest concentration of
  13-29  students who are pregnant or who are parents.
  13-30        (i)  The commissioner of education shall withhold funds
  13-31  allocated under this section to a district that fails to timely
  13-32  prepare or make available on request of a member of the general
  13-33  public the report required under Section 21.557(i) of this code.
  13-34  The commissioner may restore withheld funds only when the
  13-35  commissioner is satisfied that the district has provided the
  13-36  information requested.
  13-37        (j) <(i)>  After deducting the amount withheld under
  13-38  Subsection (g) of this section from the total amount appropriated
  13-39  for the allotment under Subsection (a) of this section, the
  13-40  commissioner of education shall reduce each district's allotment
  13-41  under Subsection (a) proportionately and shall allocate funds to
  13-42  each district accordingly.
  13-43        (k) <(j)>  From the total amount of funds appropriated for
  13-44  allotments under this section, the commissioner of education shall,
  13-45  each fiscal year, withhold the amount of $5,000,000 and distribute
  13-46  that amount for programs under Subchapter V, Chapter 21, of this
  13-47  code.  A program established under that subchapter is required only
  13-48  in school districts in which the program is financed by funds
  13-49  distributed under this section or other funds distributed by the
  13-50  commissioner for a program under that subchapter.
  13-51        (l) <(k)>  The commissioner of education shall coordinate the
  13-52  funds withheld under Subsection (k) <(j)> of this section and any
  13-53  other funds available for the program and shall distribute those
  13-54  funds.  To receive funds for the program, a school district must
  13-55  apply to the commissioner.  The commissioner shall give a
  13-56  preference to the districts that apply that have the highest
  13-57  concentration of at-risk students.  For each school year that a
  13-58  school district receives funds under this section, the district
  13-59  shall allocate an amount of local funds for school guidance and
  13-60  counseling programs that is equal to or greater than the amount of
  13-61  local funds that the school district allocated for that purpose
  13-62  during the preceding school year.
  13-63        (m) <(l)>  After deducting the amount withheld under
  13-64  Subsection (k) <(j)> of this section from the total amount
  13-65  appropriated for the allotment under Subsection (a) of this
  13-66  section, the commissioner of education shall reduce each district's
  13-67  allotment under Subsection (a) on a per pupil basis.
  13-68        Sec. 16.153.  BILINGUAL EDUCATION ALLOTMENT.  (a)  For each
  13-69  student in average daily attendance in a bilingual education or
  13-70  special language program under Subchapter L, Chapter 21, of this
   14-1  code, a district is entitled to an annual allotment equal to the
   14-2  adjusted basic allotment multiplied by 0.1.
   14-3        (b)  Funds allocated under this section, other than an
   14-4  indirect cost allotment established under State Board of Education
   14-5  rule, must be used in providing bilingual education or special
   14-6  language programs under Subchapter L, Chapter 21, of this code.
   14-7        (c)  A district's bilingual education or special language
   14-8  allocation may be used only for program and pupil evaluation,
   14-9  instructional materials and equipment, staff development,
  14-10  supplemental staff expenses, salary supplements for teachers, and
  14-11  other supplies required for quality instruction and smaller class
  14-12  size.
  14-13        Sec. 16.155.  VOCATIONAL EDUCATION ALLOTMENT.  (a)  For each
  14-14  full-time equivalent student in average daily attendance in an
  14-15  approved vocational education program in grades nine through 12 or
  14-16  in vocational education for the handicapped programs in grades
  14-17  seven through 12, a district is entitled to an annual allotment
  14-18  equal to the adjusted basic allotment multiplied by a weight of
  14-19  1.37.
  14-20        (b)  In this section, "full-time equivalent student" means 30
  14-21  hours of contact a week between a student and vocational education
  14-22  program personnel.
  14-23        (c)  Funds allocated under this section, other than an
  14-24  indirect cost allotment established under State Board of Education
  14-25  rule, must be used in providing vocational education programs in
  14-26  grades nine through 12 or vocational education for the handicapped
  14-27  programs in grades seven through 12 under the provisions of
  14-28  Sections 21.111, 21.1111, and 21.112 of this code.
  14-29        (d)  The indirect cost allotment established under board
  14-30  rules shall first be effective for the 1991-1992 school year
  14-31  consistent with the weight effective that year.
  14-32        (e)  The commissioner shall conduct a cost-benefit comparison
  14-33  between vocational education programs and mathematics and science
  14-34  programs.
  14-35        (f) <(h)>  Out of the total statewide allotment for
  14-36  vocational education under this section, the commissioner of
  14-37  education shall set aside an amount specified in the General
  14-38  Appropriations Act, which may not exceed an amount equal to one
  14-39  percent of the total amount appropriated, to support regional
  14-40  vocational education planning committees established under Section
  14-41  21.115(b) of this code.  After deducting the amount set aside under
  14-42  this subsection from the total amount appropriated for vocational
  14-43  education under this section, the commissioner shall reduce each
  14-44  district's allotment in the same manner described for a reduction
  14-45  in state funds under Section 16.254<(d)> of this code.
  14-46        Sec. 16.156.  TRANSPORTATION ALLOTMENT.  (a)  Each district
  14-47  or county operating a transportation system is entitled to
  14-48  allotments for transportation costs as provided by this section.
  14-49        (b)  As used in this section:
  14-50              (1)  "Regular eligible pupil" means a pupil who resides
  14-51  two or more miles from his or her campus of regular attendance,
  14-52  measured along the shortest route that may be traveled on public
  14-53  roads, and who is not classified as an eligible handicapped pupil.
  14-54              (2)  "Eligible handicapped pupil" means a pupil who is
  14-55  handicapped as defined in Section 21.503 of this code and who would
  14-56  be unable to attend classes without special transportation
  14-57  services.
  14-58              (3)  "Linear density" means the average number of
  14-59  regular eligible pupils transported daily, divided by the approved
  14-60  daily route miles traveled by the respective transportation system.
  14-61        (c)  Each district or county operating a regular
  14-62  transportation system is entitled to an allotment based on the
  14-63  daily cost per regular eligible pupil of operating and maintaining
  14-64  the regular transportation system and the linear density of that
  14-65  system.  In determining the cost, the commissioner shall give
  14-66  consideration to factors affecting the actual cost of providing
  14-67  these transportation services in each district or county.  The
  14-68  average actual cost is to be computed by the commissioner of
  14-69  education and included for consideration by the Foundation School
  14-70  Fund Budget Committee and the legislature in the General
   15-1  Appropriations Act.  The allotment per mile of approved route may
   15-2  not exceed the amount set by appropriation.
   15-3        (d)  A district or county may apply for and on approval of
   15-4  the commissioner of education receive an additional amount of up to
   15-5  10 percent of its regular transportation allotment to be used for
   15-6  the transportation of children living within two miles of the
   15-7  school they attend who would be subject to hazardous traffic
   15-8  conditions if they walked to school.  Each board of trustees shall
   15-9  provide to the commissioner the definition of hazardous conditions
  15-10  applicable to that district and shall identify the specific
  15-11  hazardous areas for which the allocation is requested.  A hazardous
  15-12  condition exists where no walkway is provided and children must
  15-13  walk along or cross a freeway or expressway, an underpass, an
  15-14  overpass or a bridge, an uncontrolled major traffic artery, an
  15-15  industrial or commercial area, or another comparable condition.
  15-16        (e)  The state commissioner of education may grant an amount
  15-17  set by appropriation for private or commercial transportation for
  15-18  eligible pupils from isolated areas.   The need for this type of
  15-19  transportation grant shall be determined on an individual basis and
  15-20  the amount granted shall not exceed the actual cost.  The grants
  15-21  shall be made only in extreme hardship cases, and no grants shall
  15-22  be made if the pupils live within two miles of an approved school
  15-23  bus route.
  15-24        (f)  The cost of transporting vocational education students
  15-25  from one campus to another inside a district or from a sending
  15-26  district to another secondary public school for a vocational
  15-27  program or an area vocational school or to an approved
  15-28  post-secondary institution under a contract for instruction
  15-29  approved by the Central Education Agency shall be reimbursed based
  15-30  on the number of actual miles traveled times the district's
  15-31  official extracurricular travel per mile rate as set by their local
  15-32  board of trustees and approved by the Central Education Agency.
  15-33        (g)  A school district or county that provides special
  15-34  transportation services for eligible handicapped pupils is entitled
  15-35  to a state allocation paid on a previous year's cost-per-mile
  15-36  basis.  The maximum rate per mile allowable shall be set by
  15-37  appropriation based on data gathered from the first year of each
  15-38  preceding biennium.  Districts may use a portion of their support
  15-39  allocation to pay transportation costs, if necessary.  The
  15-40  commissioner of education may grant an amount set by appropriation
  15-41  for private transportation to reimburse parents or their agents for
  15-42  transporting eligible handicapped pupils.  The mileage allowed
  15-43  shall be computed along the shortest public road from the pupil's
  15-44  home to school and back, morning and afternoon.  The need for this
  15-45  type transportation shall be determined on an individual basis and
  15-46  shall be approved only in extreme hardship cases.
  15-47        (h)  The allocation for eligible regular students transported
  15-48  by the regular transportation system shall be increased by five
  15-49  percent for any district or county school board which has complied
  15-50  with the provisions of Section 21.173 of this code in accordance
  15-51  with rules adopted by the State Board of Education.
  15-52        (i)  Funds allotted under this section must be used in
  15-53  providing transportation services.
  15-54        (j)  In the case of a district belonging to a county
  15-55  transportation system, the district's transportation allotment for
  15-56  purposes of determining a district's foundation school program
  15-57  allocations shall be determined on the basis of the number of
  15-58  approved daily route miles in the district multiplied by the
  15-59  allotment per mile to which the county transportation system is
  15-60  entitled.
  15-61        <Sec. 16.158.  CAREER LADDER ALLOTMENT.  (a)  Each district
  15-62  is entitled to an allotment for support of the career ladder equal
  15-63  to its unadjusted average daily attendance multiplied by $90.>
  15-64        <(b)  An allotment under this section may be used only for
  15-65  the purposes of career ladder supplements.>
  15-66        <(c)  From the funds designated for that purpose, the
  15-67  district shall supplement the salary of each teacher above level
  15-68  one on the career ladder.  The district shall decide the amount of
  15-69  supplement to be provided at each career ladder level.>
  15-70        <(d)  Money received under this section may not be used to
   16-1  supplement the salary of an employee for directing cocurricular or
   16-2  extracurricular activities.>
   16-3        Sec. 16.159.  Gifted and Talented Student Allotment.
   16-4  (a)  For each student a school district serves in a Central
   16-5  Education Agency approved program for gifted and talented students
   16-6  under Subchapter Q, Chapter 21, of this code or, in the case of a
   16-7  district that is developing a program in accordance with standards
   16-8  established by the commissioner of education, for each student the
   16-9  district identifies as gifted and talented under State Board of
  16-10  Education criteria, a district is entitled to an annual allotment
  16-11  equal to the district's adjusted basic allotment as determined
  16-12  under Section 16.102 or Section 16.103 of this code, as applicable,
  16-13  multiplied by .12 for each school year or a greater amount provided
  16-14  by appropriation.
  16-15        (b)  Funds allocated under this section, other than the
  16-16  amount that represents the program's share of general
  16-17  administrative costs, must be used in providing approved programs
  16-18  for gifted and talented students under Subchapter Q, Chapter 21, of
  16-19  this code or, in the case of a district that has not yet
  16-20  established a program, in developing programs for gifted and
  16-21  talented students.  Each district must account for the expenditure
  16-22  of state funds as provided by rule of the State Board of Education.
  16-23  If by the end of the 12th month after receiving an allotment for
  16-24  developing a program a district has failed to implement an approved
  16-25  program, the district must refund the amount of the allotment to
  16-26  the agency within 30 days.
  16-27        (c)  Not more than five percent of a district's students in
  16-28  average daily attendance are eligible for funding under this
  16-29  section.
  16-30        (d)  If the amount of state funds for which school districts
  16-31  are eligible under this section exceeds the amount of state funds
  16-32  appropriated in any year for the programs, the commissioner of
  16-33  education shall reduce each district's allotment on a pro rata
  16-34  basis.
  16-35        (e)  If the total amount of funds allotted under this section
  16-36  before a date set by rule of the State Board of Education is less
  16-37  than the total amount appropriated for a school year, the
  16-38  commissioner shall distribute the remainder proportionately to the
  16-39  districts that have received an allotment, and no other districts
  16-40  are eligible for an allotment for that school year.
  16-41        (f)  After each district has received allotted funds for this
  16-42  program, the State Board of Education may use up to $500,000 of the
  16-43  funds allocated under this section for programs such as Future
  16-44  Problem Solving Olympics of the Mind, and Academic Decathlon, as
  16-45  long as these funds are used to train personnel and provide program
  16-46  services.  To be eligible for funding under this section, a program
  16-47  must be determined by the State Board of Education to provide
  16-48  services that are effective and consistent with the state plan for
  16-49  gifted and talented education.
  16-50        Sec. 16.160.  TECHNOLOGY FUNDS.  (a)  Developmental and
  16-51  technology allotment allocations under the provisions of Chapter 14
  16-52  are included in the Foundation School Program.
  16-53        (b)  Each district shall be allotted the amount specified in
  16-54  Section 14.063 of this code after deductions by the commissioner of
  16-55  education for the purposes of financing programs authorized under
  16-56  Subchapter C, Chapter 14, of this code.
  16-57             SUBCHAPTER F.  ACCOUNTABLE COSTS OF EDUCATION
  16-58        Sec. 16.201.  Purpose.  The accountable costs of education
  16-59  studies are designed to support the development of the equalized
  16-60  funding elements necessary to provide an efficient state and local
  16-61  public school finance system which meets the state policy
  16-62  established in Section 16.001 of this code and provides the
  16-63  research basis for the equalized funding elements under the
  16-64  provisions of Section 16.256 of this code.
  16-65        Sec. 16.202.  STUDIES.  On a biennial basis, the Legislative
  16-66  Education Board and the Legislative Budget Board, with the
  16-67  assistance of the Educational Economic Policy Center and the
  16-68  Central Education Agency, shall complete each of the following
  16-69  studies and develop recommended amounts where appropriate for each
  16-70  year of the next biennium:
   17-1              (1)  a study of the fiscal neutrality of the system to
   17-2  determine the status of the state and local finance system with
   17-3  regard to the policies established under the provisions of Section
   17-4  16.001 of this code, including recommendations for adjustments
   17-5  necessary to maintain fiscal neutrality;
   17-6              (2)  the accountable costs per student to school
   17-7  districts of providing educational programs, personnel, and other
   17-8  operating costs that meet accreditation criteria and the provisions
   17-9  of law and regulation;
  17-10              (3)  program cost differentials designed by program to
  17-11  provide support for the added expense of high-cost courses or
  17-12  programs for students participating in such courses or programs,
  17-13  with the program funding level expressed as dollar amounts and as
  17-14  weights applied to the adjusted basic allotment for the appropriate
  17-15  year;
  17-16              (4)  transportation <and career ladder> allotments;
  17-17              (5)  the levels of tax effort necessary for each tier
  17-18  of the Foundation School Program necessary to fulfill the
  17-19  requirements of Sections 16.001 and 16.008 of this code; and
  17-20              (6)  capital outlay and debt service requirements and
  17-21  formula elements for the requirements of Subchapter I of this
  17-22  chapter or other provisions of this chapter.
  17-23        Sec. 16.203.  Procedures.  (a)  The program cost
  17-24  differentials developed jointly by the Legislative Education Board
  17-25  and the Legislative Budget Board shall be submitted to the
  17-26  foundation school fund budget committee for adoption beginning with
  17-27  the 1993-1994 school year.  If the foundation school fund budget
  17-28  committee fails to adopt by April 1 the program cost differentials
  17-29  for the following school year, the commissioner of education, after
  17-30  considering the recommendations developed by those boards, shall
  17-31  adopt program cost differentials.
  17-32        (b)  The commissioner of education shall provide appropriate
  17-33  assistance to the boards for the calculation of the various funding
  17-34  elements.  Subject to review by the Legislative Education Board,
  17-35  the commissioner of education shall retain from the allotments
  17-36  under Sections 16.102 and 16.103 of this code and Subchapter D of
  17-37  this chapter amounts appropriate to finance necessary additional
  17-38  costs for the studies required under this subchapter.
  17-39        (c)  The boards may appoint advisory committees to assist in
  17-40  the development of the various funding elements and studies
  17-41  required under this subchapter.  Advisory committee members serve
  17-42  without compensation but are entitled to reimbursement for actual
  17-43  and necessary expenses incurred in the performance of their duties.
  17-44  Reimbursement shall be from funds available under Subsection (b) of
  17-45  this section or from other funds available to the boards.
  17-46        (d)  In the studies relating to program cost differentials
  17-47  the boards shall give special consideration to cost factors
  17-48  associated with class size, laboratory expenses, materials,
  17-49  equipment, teacher training, necessary salary supplementation, and
  17-50  special services related to individual courses or groups of
  17-51  courses.
  17-52        <Sec. 16.204.  NAVAL MILITARY FACILITY IMPACT.  (a)  The
  17-53  model on which a cost of education index is based must specifically
  17-54  consider the impact of a significant new naval military facility on
  17-55  each district in an impacted region.>
  17-56        <(b)  If the construction or operation of a significant new
  17-57  naval military facility begins during a school year, the
  17-58  Legislative Education Board and the Legislative Budget Board shall
  17-59  recommend the adjustment of the basic allotment during that school
  17-60  year to consider any impact of the facility on the cost of
  17-61  education index of the districts in the impacted region.>
  17-62        <(c)  In this section, "significant new naval military
  17-63  facility" and "impacted region" have the meanings assigned by
  17-64  Section 4, Article 1, National Defense Impacted Region Assistance
  17-65  Act of 1985 (Article 689a-4d, Vernon's Texas Civil Statutes).>
  17-66        <(d)  This section expires September 1, 1993.>
  17-67        Sec. 16.205.  Efficiency in Administration Report.  (a)  The
  17-68  commissioner of education shall conduct a study to determine the
  17-69  most appropriate and efficient method for reporting and monitoring
  17-70  the allocation of resources by school districts.
   18-1        (b)  The study shall identify the most effective means for
   18-2  calculating, monitoring, and reporting the proportion of resources
   18-3  that school districts allocate for their administrative costs and
   18-4  shall include administrator-teacher ratios.
   18-5        (c)  The study shall include a description of average
   18-6  efficient administrative expenditures by districts with
   18-7  consideration of district size and demographics.
   18-8        (d)  Prior to the beginning of each regular session of the
   18-9  legislature, the agency shall provide a report with recommendations
  18-10  to the Legislative Education Board and the legislature.
  18-11        (e)  The study is an element of the study of accountable
  18-12  costs of education under this subchapter.
  18-13        <Sec. 16.206.  COST ADJUSTMENTS.  (a)  The lieutenant
  18-14  governor shall appoint five members of the senate and the speaker
  18-15  of the house of representatives shall appoint five members of the
  18-16  house to a committee to conduct a study of certain costs of
  18-17  providing public education as provided by this section.  The
  18-18  lieutenant governor and the speaker shall make the appointments not
  18-19  later than September 1, 1991.>
  18-20        <(b)  The committee shall examine methods of adjusting for
  18-21  specific resource cost variations caused by factors beyond the
  18-22  control of school districts.  The committee shall recommend
  18-23  adjustments for these factors that will provide the most efficient
  18-24  service delivery considering optimum district size, enrollment
  18-25  growth, and other cost factors.  For the purpose of the study, the
  18-26  committee shall divide districts and campuses into a variety of
  18-27  categories that may include region, size, area, density,
  18-28  educational characteristics, and economic conditions.>
  18-29        <(c)  The committee may appoint one or more advisory panels
  18-30  to assist the committee in conducting the study.  Advisory panel
  18-31  members serve without compensation but are entitled to
  18-32  reimbursement for actual and necessary expenses incurred in the
  18-33  performance of their duties.>
  18-34        <(d)  The committee shall recommend adjustments to the
  18-35  Foundation School Program for resource cost variations caused by
  18-36  factors beyond the control of school districts to the foundation
  18-37  school fund budget committee not later than June 1, 1992.  The
  18-38  adjustments shall include:>
  18-39              <(1)  an adjustment to account for fast enrollment
  18-40  growth and other factors relevant to a district's need for
  18-41  facilities; and>
  18-42              <(2)  appropriate treatment of the calculation of
  18-43  weighted students under Section 16.302 of this code.>
  18-44        <(e)  The foundation school fund budget committee by rule
  18-45  shall adopt adjustments to the Foundation School Program for
  18-46  resource cost variations beyond the control of school districts to
  18-47  apply beginning with the 1993-1994 school year.  The foundation
  18-48  school fund budget committee shall report the adjustments adopted
  18-49  to the legislature and the commissioner of education.  If the
  18-50  foundation school fund budget committee fails to adopt the
  18-51  adjustments by November 1, 1992, the commissioner of education by
  18-52  rule shall adopt adjustments not later than December 1, 1992.>
  18-53        <(f)  The rules  adopted under this section apply beginning
  18-54  with the 1993-1994 school year.  If no rules are adopted under this
  18-55  section, the basic allotment calculated under Sections 16.008 and
  18-56  16.256(e) of this code shall be increased to reflect the costs
  18-57  associated with the adjustments made by the cost of education index
  18-58  and formula for the 1992-1993 school year.>
  18-59                 SUBCHAPTER G.  FINANCING THE PROGRAM
  18-60        Sec. 16.251.  FINANCING; GENERAL RULE.  (a)  The sum of the
  18-61  basic allotment under Subchapter C, the special allotments under
  18-62  Subchapter D, and the guaranteed yield allotments under Subchapter
  18-63  H, computed in accordance with the provisions of this chapter,
  18-64  constitute the total cost of the Foundation School Program.
  18-65        (b)  The program shall be financed by:
  18-66              (1)  ad valorem tax revenue generated by an equalized
  18-67  uniform school <county education> district effort;
  18-68              (2)  ad valorem tax revenue generated by local school
  18-69  district effort in excess of the equalized uniform school <county
  18-70  education> district effort;
   19-1              (3)  state available school funds distributed in
   19-2  accordance with law; and
   19-3              (4)  state funds appropriated for the purposes of
   19-4  public school education and allocated to each district in an amount
   19-5  sufficient to finance the cost of each district's Foundation School
   19-6  Program not covered by other funds specified in this subsection.
   19-7        (c)  The commissioner of education shall compute for each
   19-8  school district the total amount, if any, by which the district's
   19-9  total revenue is reduced from one school year to the next because
  19-10  of a change in the method of finance under this chapter.  The
  19-11  commissioner shall certify the amount of the reduction to the
  19-12  school district for use in determining the school district's
  19-13  rollback rate under Section 26.08, Tax Code.
  19-14        Sec. 16.252.  LOCAL SHARE OF PROGRAM COST (TIER ONE).
  19-15  (a)  Each school <county education> district's share of the
  19-16  Foundation School Program shall be an amount determined by the
  19-17  following formula:
  19-18  where:
  19-19        "LFA" is the <county education> district's tier one local
  19-20  share;
  19-21        "TR" is a tax rate which for each hundred dollars of
  19-22  valuation is $0.90 <$0.72 for the 1991-1992 school year, $0.82 for
  19-23  the 1992-1993 school year, $0.92 for the 1993-1994 school year, and
  19-24  $1.00 for each school year thereafter>; and
  19-25        "DPV" is the taxable value of property in the <county
  19-26  education> district for the prior tax year determined under Section
  19-27  11.86 of this code.
  19-28        (b)  The commissioner of education shall adjust the values
  19-29  reported in the official report of the comptroller as required by
  19-30  Section 5.09(a), <Property> Tax Code, to reflect reductions in
  19-31  taxable value of property resulting from natural or economic
  19-32  disaster after January 1 in the year in which the valuations are
  19-33  determined.  The decision of the commissioner of education shall be
  19-34  final.  An adjustment does not affect the local fund assignment of
  19-35  any other school <county education> district.
  19-36        (c)  Appeals of district values shall be held pursuant to
  19-37  Subsection (e) of Section 11.86 of this code.
  19-38        (d)  A school <county education> district shall raise its
  19-39  total local share of the foundation school program.  <The funds
  19-40  shall be reallocated to the school districts in the county
  19-41  education district in the manner prescribed by Subchapter J of this
  19-42  chapter.>
  19-43        (e)  The commissioner of education shall hear appeals from
  19-44  school <county education> districts which have experienced a rapid
  19-45  decline in tax base used in calculating the local fund assignment,
  19-46  exceeding eight percent of prior year, that is beyond the control
  19-47  of the board of trustees of the school <county education> district.
  19-48  The commissioner of education may adjust the school <county
  19-49  education> district's taxable values for local fund assignment
  19-50  purposes for such losses in value exceeding eight percent and
  19-51  thereby adjust the local fund assignment to reflect the local
  19-52  current year taxable value.  The decision of the commissioner of
  19-53  education shall be final.  An adjustment does not affect the local
  19-54  fund assignment of any other school <county education> district.
  19-55        Sec. 16.254.  DISTRIBUTION OF FOUNDATION SCHOOL FUND.
  19-56  (a)  For each school year the commissioner of education shall
  19-57  determine:
  19-58              (1)  the amount of money to which a school district is
  19-59  entitled under Subchapters C and D of this chapter;
  19-60              (2)  the amount of money to which a school district is
  19-61  entitled under Subchapter H of this chapter;
  19-62              (3)  the amount of money allocated to the district from
  19-63  the available school fund;
  19-64              (4)  the amount of each district's tier one local share
  19-65  under Section 16.252 of this code; and
  19-66              (5)  the amount of each district's tier two local share
  19-67  under Section 16.303 of this code.
  19-68        (b)  The commissioner shall base the determinations under
  19-69  Subsection (a) of this section on the estimates provided to the
  19-70  legislature under Section 16.2541 of this code for each school
   20-1  district for each school year or different estimates provided by
   20-2  the General Appropriations Act.
   20-3        (c)  Each school district is entitled to an amount equal to
   20-4  the difference for that district between the sum of Subsections
   20-5  (a)(1) and (a)(2) of this section and the sum of Subsections
   20-6  (a)(3), (a)(4), and (a)(5) of this section.
   20-7        (d)  The commissioner shall approve warrants to each school
   20-8  district equaling the amount of its entitlement except as provided
   20-9  by this section.  Warrants for all money expended according to this
  20-10  chapter shall be approved and transmitted to treasurers or
  20-11  depositories of school districts in the same manner that warrants
  20-12  for state payments are transmitted.
  20-13        (e)  The commissioner shall recompute the amount to which the
  20-14  district is entitled under Subsection (c) of this section if a
  20-15  school district's tax rate is less than the limit authorized under
  20-16  this subsection.  For a district with a taxable value of property
  20-17  per weighted student in average daily attendance that is equal to
  20-18  or greater than the average value for a school district in this
  20-19  state, as determined under Section 11.86 of this code, the amount
  20-20  to which the district is entitled under this section may not exceed
  20-21  the amount to which the district would be entitled at the
  20-22  district's tax rate for the final year of the preceding biennium,
  20-23  or a different tax rate provided by appropriation.   For a district
  20-24  with a taxable value of property per weighted student in average
  20-25  daily attendance of zero, the amount to which the district is
  20-26  entitled under this section may not exceed the amount to which the
  20-27  district is entitled at the district's tax rate for the current
  20-28  year up to the limit of a rate that is a $0.10 increase in rate
  20-29  over the last year of the preceding biennium.  For other districts
  20-30  with a taxable value of property per weighted student in average
  20-31  daily attendance that is lower than the state average, the
  20-32  commissioner of education shall provide for a proportionately lower
  20-33  limit under this section based on each district's taxable value of
  20-34  property so that the closer a district's taxable value of property
  20-35  per weighted student in average daily attendance is to the state
  20-36  average, the lower the limit.  The commissioner annually shall
  20-37  certify to districts with a taxable value of property per weighted
  20-38  student in average daily attendance that is lower than the state
  20-39  average, the amount of district revenue within the limit prescribed
  20-40  under this section.  The commissioner shall recompute the amount to
  20-41  which a district is entitled to the extent necessary under this
  20-42  section.  The commissioner shall approve warrants to the school in
  20-43  the amount that results from the new computation.  An amount equal
  20-44  to the difference between the initial allocation and the amount of
  20-45  the warrants shall be transferred to a special account in the
  20-46  foundation school fund known as the reserve account.
  20-47        (f)  Amounts transferred to the reserve account under
  20-48  Subsection (e) of this section shall be used in the succeeding
  20-49  fiscal year to finance increases in allocations to school districts
  20-50  under Subsection (i) of this section.  If the amount in the reserve
  20-51  account is less than the amount of the increases under Subsection
  20-52  (i) of this section for the second year of a state fiscal biennium,
  20-53  the commissioner shall certify the amount of the difference to the
  20-54  foundation school fund budget committee not later than January 1 of
  20-55  the second year of the state fiscal biennium.  The committee shall
  20-56  propose to the legislature that the certified amount be transferred
  20-57  to the foundation school fund from the economic stabilization fund
  20-58  and appropriated for the purpose of increases in allocations under
  20-59  Subsection (h) of this section.
  20-60        (g)  If a school district demonstrates to the satisfaction of
  20-61  the commissioner that the estimate of the district's tax rate,
  20-62  student enrollment, or taxable value of property used in
  20-63  determining the amount of state funds to which the district is
  20-64  entitled are so inaccurate as to result in undue financial hardship
  20-65  to the district, the commissioner may adjust funding to that
  20-66  district in that school year to the extent that funds are available
  20-67  for that year, including funds in the reserve account.  Funds in
  20-68  the reserve account may not be used under this subsection until any
  20-69  reserve funds have been used for purposes of Subsection (f) of this
  20-70  section.
   21-1        (h)  If the legislature fails during the regular session to
   21-2  enact the transfer and appropriation proposed under Subsection (f)
   21-3  of this section and there are not funds available under Subsection
   21-4  (j) of this section, the commissioner shall reduce the total amount
   21-5  of state funds allocated to each district by an amount determined
   21-6  by a method under which the application of the same number of cents
   21-7  of increase in tax rate in all districts applied to the taxable
   21-8  value of property of each district, as determined under Section
   21-9  11.86 of this code, results in a total levy equal to the total
  21-10  reduction.  The following fiscal year, a district's entitlement
  21-11  under this section is increased by an amount equal to the reduction
  21-12  made under this subsection.
  21-13        (i)  Not later than March 1 each year, the commissioner shall
  21-14  determine the actual amount of state funds to which each school
  21-15  district is entitled under the allocation formulas in this chapter
  21-16  for the current school year and shall compare that amount with the
  21-17  amount of the warrants issued to each district for that year.  If
  21-18  the amount of the warrants differs from the amount to which a
  21-19  district is entitled because of variations in the district's tax
  21-20  rate, student enrollment,  or taxable value of property, the
  21-21  commissioner shall adjust the district's entitlement for the next
  21-22  fiscal year accordingly.
  21-23        (j)  The legislature may appropriate funds necessary for
  21-24  increases under Subsection (i) of this section from funds that the
  21-25  comptroller, at any time during the fiscal year, finds are
  21-26  available.
  21-27        (k)  The commissioner shall compute for each school district
  21-28  the total amount by which the district's allocation of state funds
  21-29  is increased or reduced under Subsection (i) of this section and
  21-30  shall certify that amount to the district.
  21-31        (l)  The commissioner shall compute for each school district
  21-32  the total amount, if any, by which the district's total revenue is
  21-33  reduced from one school year to the next because of a change in the
  21-34  method of finance under this chapter.  The commissioner shall
  21-35  certify the amount of the reduction to the school district for use
  21-36  in determining the school district's rollback rate under Section
  21-37  26.08, Tax Code.
  21-38        (m)  In this section, the number of weighted students in
  21-39  average daily attendance is calculated in the manner provided by
  21-40  Section 16.302 of this code.
  21-41        Sec. 16.2541.  ESTIMATES REQUIRED.  (a)  Not later than
  21-42  October 1 of each even-numbered year:
  21-43              (1)  the Central Education Agency shall submit to the
  21-44  foundation school fund budget committee and the legislature an
  21-45  estimate of the tax rate and student enrollment of each school
  21-46  district for the following biennium; and
  21-47              (2)  the comptroller shall submit to the foundation
  21-48  school fund budget committee and the legislature an estimate of the
  21-49  total taxable value of all property in the state as determined
  21-50  under Section 11.86 of this code for the following biennium.
  21-51        (b)  The Central Education Agency and the comptroller shall
  21-52  update the information provided to the legislature under Subsection
  21-53  (a) of this section not later than March 1 of each odd-numbered
  21-54  year.  <(a)  The commissioner of education shall determine
  21-55  annually:>
  21-56              <(1)  the amount of money necessary to operate a
  21-57  Foundation School Program in each school district;>
  21-58              <(2)  the amount of local funds due the school district
  21-59  from the local fund assignment of the county education district;
  21-60  and>
  21-61              <(3)  the amount of state available school funds
  21-62  distributed to each school district.>
  21-63        <(b)  The commissioner of education shall then grant to each
  21-64  school district from the Foundation School Program appropriation
  21-65  the amount of funds necessary to provide the difference between
  21-66  Subdivision (1) and the sum of Subdivisions (2) and (3) of
  21-67  Subsection (a) of this section.>
  21-68        <(c)  The commissioner shall approve warrants to each school
  21-69  district equaling the amount of its grant.  Warrants for all money
  21-70  expended according to the provisions of this chapter shall be
   22-1  approved and transmitted to treasurers or depositories of school
   22-2  districts in the same manner as warrants for state apportionment
   22-3  are transmitted.>
   22-4        <(d)  Notwithstanding any other provision of this chapter, if
   22-5  for any year the total state's share of the Foundation School
   22-6  Program, as determined under this chapter, exceeds the total amount
   22-7  appropriated for that year, the commissioner shall reduce the total
   22-8  amount of state funds allocated to each district by an amount
   22-9  determined by a method under which the application of the same
  22-10  number of cents of increase in tax rate applied to the taxable
  22-11  value of property of each district, as determined under Section
  22-12  11.86 of this code, results in a levy for each district equal to
  22-13  the amount deducted from that district's allocation.>
  22-14        <(e)  The commissioner of education shall compute for each
  22-15  school district the total amount by which the district's allocation
  22-16  of state funds is reduced under Subsection (d) of this section and
  22-17  shall certify that amount to the district.>
  22-18        Sec. 16.255.  Falsification of Records; Report.  (a)  When,
  22-19  in the opinion of the director of school audits of the Central
  22-20  Education Agency, audits or reviews of accounting, enrollment, or
  22-21  other records of a school district reveal deliberate falsification
  22-22  of the records, or violation of the provisions of this chapter,
  22-23  whereby the district's share of state funds allocated under the
  22-24  authority of this chapter would be, or has been, illegally
  22-25  increased, the director shall promptly and fully report the fact to
  22-26  the State Board of Education and the state auditor.
  22-27        (b)  In the event of overallocation of state funds, as
  22-28  determined by the State Board of Education or the state auditor by
  22-29  reference to the director's report, the Central Education Agency
  22-30  shall, by withholding from subsequent allocations of state funds,
  22-31  recover from the district an amount, or amounts, equal to the
  22-32  overallocation.
  22-33        Sec. 16.256.  FOUNDATION SCHOOL FUND BUDGET COMMITTEE.
  22-34  (a)  The foundation school fund budget committee is composed of the
  22-35  governor, the lieutenant governor, and the comptroller <of public
  22-36  accounts>.
  22-37        (b)  On or before December <November> 1 before each regular
  22-38  session of the legislature, the budget committee shall determine
  22-39  and certify to the comptroller <of public accounts> an amount of
  22-40  money to be placed in the foundation school fund for the succeeding
  22-41  biennium for the purpose of financing the Foundation School Program
  22-42  as described in this code.
  22-43        (c)  The budget committee may, during the biennium, change
  22-44  the estimate of money necessary to finance the Foundation School
  22-45  Program.
  22-46        (d)  The foundation school fund budget committee shall adopt
  22-47  rules for the calculation for each year of a biennium of the
  22-48  qualified funding elements necessary to achieve the state funding
  22-49  policy under Section 16.001 of this code not later than the
  22-50  1994-1995 school year and for each year thereafter.  In the
  22-51  calculation of these funding elements, the committee shall consider
  22-52  the report of the Legislative Education Board prescribed under
  22-53  Section 16.008 of this code.
  22-54        (e)  The funding elements shall include:
  22-55              (1)  a basic allotment for the purposes of Section
  22-56  16.101 of this code that represents the cost per student of a
  22-57  regular education program that meets the basic criteria for an
  22-58  accredited program including all mandates of law and regulation;
  22-59              (2)  adjustments designed to reflect the variation in
  22-60  known resource costs and costs of education beyond the control of
  22-61  school districts;
  22-62              (3)  appropriate program cost differentials and other
  22-63  funding elements for the programs authorized under Subchapter D of
  22-64  this chapter, with the program funding level expressed as dollar
  22-65  amounts and as weights applied to the adjusted basic allotment for
  22-66  the appropriate year;
  22-67              (4)  the maximum guaranteed level of qualified state
  22-68  and local funds per student for the purposes of Subchapter H of
  22-69  this chapter;
  22-70              (5)  the enrichment and facilities tax rate under
   23-1  Subchapter H of this chapter;
   23-2              (6)  the formula elements for the funding formulas for
   23-3  capital outlay and debt service under the provision of Subchapter I
   23-4  of this chapter; and
   23-5              (7)  the calculation of weighted students in average
   23-6  daily attendance under Section 16.302 of this code.
   23-7        (f)  Not <Beginning in 1992, not> later than December
   23-8  <November> 1 preceding each regular session of the legislature, the
   23-9  foundation school fund budget committee by rule shall adopt and
  23-10  report the equalized funding elements calculated under this section
  23-11  to the commissioner of education and the legislature.  Before the
  23-12  committee adopts the elements, the committee or the committee's
  23-13  designees shall hold a public hearing on the recommendations of the
  23-14  Legislative Education Board.
  23-15        <(g)  Notwithstanding other provisions of this section, the
  23-16  funding elements adopted by the foundation school fund budget
  23-17  committee for the 1993-1994 school year and the 1994-1995 school
  23-18  year shall provide for appropriate transition from the program in
  23-19  effect for the 1992-1993 school year.>
  23-20        Sec. 16.258.  Effect Of Appraisal Appeal.  (a)  If the final
  23-21  determination of an appeal under Chapter 42, Tax Code, results in a
  23-22  reduction in the taxable value of property that exceeds five
  23-23  percent of the total taxable value of property in the school
  23-24  district for the same tax year determined under Section 11.86 of
  23-25  this code, the commissioner of education shall request the
  23-26  comptroller to adjust its taxable property value findings for that
  23-27  year consistent with the final determination of the appraisal
  23-28  appeal.
  23-29        (b)  If the district would have received a greater amount
  23-30  from the foundation school fund for the applicable school year
  23-31  using the adjusted value, the commissioner shall add the difference
  23-32  to subsequent distributions to the district from the foundation
  23-33  school fund.  An adjustment does not affect the local fund
  23-34  assignment of any other district.
  23-35        Sec. 16.260.  FOUNDATION SCHOOL FUND TRANSFERS.  (a)  In this
  23-36  section:
  23-37              (1)  "Category 1 school district" means a school
  23-38  district having a wealth of less than one-half of the statewide
  23-39  average wealth.
  23-40              (2)  "Category 2 school district" means a school
  23-41  district having a wealth of at least one-half of the statewide
  23-42  average wealth per pupil but not more than the statewide average
  23-43  wealth.
  23-44              (3)  "Category 3 school district" means a school
  23-45  district having a wealth of more than the statewide average wealth.
  23-46              (4)  "Wealth" means the taxable property values
  23-47  reported by the comptroller to the commissioner of education under
  23-48  Section 16.252 of this code divided by the number of students in
  23-49  average daily attendance.
  23-50        (b)  Payments from the foundation school fund to each
  23-51  category 1 school district shall be made as follows:
  23-52              (1)  21 percent of the yearly entitlement of the
  23-53  district shall be paid in two equal installments to be made on or
  23-54  before the 25th day of September and October of a fiscal year;
  23-55              (2)  57 percent of the yearly entitlement of the
  23-56  district shall be paid in six equal installments to be made on or
  23-57  before the 25th day of November, December, January, February,
  23-58  March, and July; and
  23-59              (3)  22 percent of the yearly entitlement of the
  23-60  district shall be paid in two equal installments to be made on or
  23-61  before the 25th day of April and May.
  23-62        (c)  Payments from the foundation school fund to each
  23-63  category 2 school district shall be made as follows:
  23-64              (1)  21 percent of the yearly entitlement of the
  23-65  district shall be paid in two equal installments to be made on or
  23-66  before the 25th day of September and October of a fiscal year;
  23-67              (2)  38 percent of the yearly entitlement of the
  23-68  district shall be paid in four equal installments to be made on or
  23-69  before the 25th day of November, December, March, and July;
  23-70              (3)  seven percent of the yearly entitlement of the
   24-1  <school> district shall be paid in two equal installments to be
   24-2  made on or before the 25th day of January and February;
   24-3              (4)  22 percent of the yearly entitlement of the
   24-4  <school> district shall be paid in two equal installments to be
   24-5  made on or before the 25th day of April and May; and
   24-6              (5)  12 percent of the yearly entitlement of the
   24-7  <school> district shall be paid in two equal installments to be
   24-8  made on or before the 25th day of June and August.
   24-9        (d)  Payments from the foundation school fund to each
  24-10  category 3 school district shall be made as follows:
  24-11              (1)  21 percent of the yearly entitlement of the
  24-12  district <school> shall be paid in two equal installments to be
  24-13  made on or before the 25th day of September and October of a fiscal
  24-14  year;
  24-15              (2)  57 percent of the yearly entitlement of the
  24-16  district <school> shall be paid in six equal installments to be
  24-17  made on or before the 25th day of November, December, March, June,
  24-18  July, and August; and
  24-19              (3)  22 percent of the yearly entitlement of the
  24-20  <school> district shall be paid in two equal installments to be
  24-21  made on or before the 25th day of April and May.
  24-22        (e)  The amount of any installment required by this section
  24-23  may be modified to provide a school district with the proper amount
  24-24  to which the district may be entitled by law and to correct errors
  24-25  in the allocation or distribution of funds.  If an installment
  24-26  under this section is required to be equal to other installments,
  24-27  the amount of other installments may be adjusted to provide for
  24-28  that equality.  A payment under this section is not invalid because
  24-29  it is not equal to other installments.
  24-30          SUBCHAPTER H.  GUARANTEED YIELD PROGRAM (TIER TWO)
  24-31        Sec. 16.301.  PURPOSE.  The purpose of the guaranteed yield
  24-32  component of the Foundation School Program is to provide each
  24-33  school district with the opportunity to supplement the basic
  24-34  program at a level of its own choice and with access to additional
  24-35  funds for facilities.  An allotment under this subchapter may be
  24-36  used for any legal purpose, including capital outlay and debt
  24-37  service.
  24-38        Sec. 16.302.  ALLOTMENT.  (a)  For each weighted student in
  24-39  average daily attendance, each <Each> school district is guaranteed
  24-40  a specified amount <per weighted student> in state and local funds
  24-41  for each cent of tax effort over the tax effort <that> required for
  24-42  the tier one local fund assignment under Section 16.252 of this
  24-43  code <of the county education district in which the school district
  24-44  is located> up to the maximum level specified in this subchapter.
  24-45  For each cent of tax effort under this section up to 30 cents, a
  24-46  district is entitled to an amount equal to $20 per weighted student
  24-47  in average daily attendance.  For each incremental cent of that tax
  24-48  effort greater than  30 cents and up to 60 cents, a district is
  24-49  entitled to an amount per weighted student in average daily
  24-50  attendance based on the following formula:
  24-51  where:
  24-52        "GY" is the amount guaranteed per weighted student in average
  24-53  daily attendance for each incremental cent of tax effort greater
  24-54  than 30 cents, up to 60 cents; and
  24-55        "DTR" is the incremental cent of tax effort greater than 30
  24-56  cents that applies to the given guaranteed yield amount.  <The
  24-57  amount of state support, subject only to the maximum amount under
  24-58  Section 16.303 of this code, is determined by the formula:>
  24-59  <where:>
  24-60        <"GYA" is the guaranteed yield amount of state funds to be
  24-61  allocated to the district;>
  24-62        <"GL" is the dollar amount guaranteed level of state and
  24-63  local funds per weighted student per cent of tax effort, which is
  24-64  $21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
  24-65  school year, $26 for the 1993-1994 school year, and $28 for each
  24-66  school year thereafter, or a greater amount for any year provided
  24-67  by appropriation, or a greater amount adopted by the foundation
  24-68  school fund budget committee under Section 16.256(d) of this code
  24-69  for the 1993-1994 or 1994-1995 school year or thereafter;>
  24-70        (b)  In this section, <"WADA", except as provided by Section
   25-1  16.206 of this code, is> the number of weighted students in average
   25-2  daily attendance<, which> is calculated by dividing the sum of the
   25-3  school district's allotments under Subchapters C and D of this
   25-4  chapter, less any allotments to the district for transportation<,
   25-5  career ladder supplements,> or technology and 50 percent of the
   25-6  adjustment under Section 16.102 of this code, by the basic
   25-7  allotment for the applicable year.<;>
   25-8        (c)  The funding elements provided by this section may be
   25-9  increased by the foundation school fund budget committee or
  25-10  modified by appropriation.
  25-11        <"DTR" is the district enrichment and facilities tax rate of
  25-12  the school district, which is determined by dividing the total
  25-13  amount of taxes collected by the school district for the applicable
  25-14  school year by the quotient of the district's taxable value of
  25-15  property as determined under Section 11.86 of this code divided by
  25-16  100; and>
  25-17        <"LR" is the local revenue, which is determined by
  25-18  multiplying "DTR" by the quotient of the district's taxable value
  25-19  of property as determined under Section 11.86 of this code divided
  25-20  by 100.>
  25-21        <(b)  Beginning with the 1993-1994 school year, if the
  25-22  program cost differentials developed jointly by the Legislative
  25-23  Education Board and the Legislative Budget Board under Section
  25-24  16.203 of this code and the adjustments studied under Section
  25-25  16.206 of this code are not adopted by the foundation school fund
  25-26  budget committee or the commissioner of education, the amount
  25-27  guaranteed under this section is an amount per student rather than
  25-28  per weighted student and a school district's average daily
  25-29  attendance ("ADA") under Section 16.006 of this code is substituted
  25-30  for "WADA" in the formula under Subsection (a) of this section.>
  25-31        Sec. 16.303.  LOCAL SHARE OF PROGRAM COST (TIER TWO).  Each
  25-32  school district's share of program costs under this subchapter
  25-33  shall be an amount determined by the following formula:
  25-34  where:
  25-35        "LFA" is the district's tier two local share;
  25-36        "TR" is the district's tax rate under Section 16.302 of this
  25-37  code; and
  25-38        "DPV" is the taxable value of property in the district for
  25-39  the prior tax year determined under Section 11.86 of this code.
  25-40  <LIMITATION ON ENRICHMENT AND FACILITIES TAX RATE.  The district
  25-41  enrichment and facilities tax rate ("DTR") under Section 16.302 of
  25-42  this code may not exceed $0.45 or a greater amount for 1993-1994
  25-43  and 1994-1995 school years or thereafter as adopted by the
  25-44  foundation school fund budget committee under Section 16.256(d) of
  25-45  this code.>
  25-46        Sec. 16.304.  COMPUTATION OF AID FOR DISTRICT ON MILITARY
  25-47  RESERVATION OR AT STATE SCHOOL.  State assistance under this
  25-48  subchapter for a school district located on a federal military
  25-49  installation or at Moody State School is computed using the average
  25-50  tax rate and property value per student of school districts in the
  25-51  county, as determined by the commissioner of education.
  25-52            SUBCHAPTER I.  CAPITAL OUTLAY AND DEBT SERVICE
  25-53        Sec. 16.401.  Inventory of School Facilities.  (a)  The State
  25-54  Board of Education shall establish a statewide inventory of school
  25-55  facilities and shall update the inventory on a periodic basis.
  25-56        (b)  The inventory shall include information on the
  25-57  condition, use, type, and replacement cost of public school
  25-58  facilities in this state.
  25-59        Sec. 16.402.  Standards.  The State Board of Education shall
  25-60  establish standards for adequacy of school facilities.  The
  25-61  standards shall include requirements related to space, educational
  25-62  adequacy, and construction quality.  All facilities constructed
  25-63  after September 1, 1992, must meet the standards in order to be
  25-64  financed with state or local tax funds.
  25-65        Sec. 16.403.  Advisory Committee.  The State Board of
  25-66  Education shall appoint a committee composed of 15 persons
  25-67  knowledgeable of various aspects of school facility planning,
  25-68  construction, renovation, and financing.  The advisory committee
  25-69  shall provide the board and the commissioner with assistance on the
  25-70  development of the inventory system, the creation of facility
   26-1  standards, and the conduct of facility research related to current
   26-2  and future roles of the state in the provision of financial and
   26-3  technical assistance to school districts.  The members of the
   26-4  committee shall serve without compensation but may be reimbursed
   26-5  for actual and necessary expenses.
   26-6        <SUBCHAPTER J.  COUNTY EDUCATION DISTRICT DISTRIBUTIONS>
   26-7        <Sec. 16.501.  TIER ONE.  (a)  The commissioner of education
   26-8  shall notify each county education district of the total amount of
   26-9  funds that each school district in the county education district is
  26-10  entitled to receive under tier one of the Foundation School
  26-11  Program.>
  26-12        <(b)  For tier one, the board of trustees of each county
  26-13  education district shall distribute the funds collected from the
  26-14  tax levied by the county education district under Section 20.945 of
  26-15  this code to the school districts in the county on the basis of the
  26-16  component districts' share of the taxable value of property of the
  26-17  county education district with the provision that no component
  26-18  district shall receive funds in excess of the cost of tier one less
  26-19  the distribution of the available school fund.>
  26-20        <(c)(1)  Notwithstanding Subsection (b) of this section, for
  26-21  the 1991-1992, 1992-1993, and 1993-1994 school years, for tier one
  26-22  the board of trustees of each county education district shall
  26-23  distribute the funds collected from the tax levied by the county
  26-24  education district under Section 20.945 of this code to the school
  26-25  districts in the county education district as follows:>
  26-26                    <(A)  to those school districts that did not
  26-27  receive foundation school funds for the 1990-1991 school year in
  26-28  which the amount of revenue per weighted student from local funds
  26-29  and the available school fund for the 1990-1991 school year exceeds
  26-30  the total amount of revenue per weighted student to which the
  26-31  district is entitled under the Foundation School Program at a tax
  26-32  rate equal to the maximum tax rate authorized under Section 20.09
  26-33  of this code, the county education district shall distribute an
  26-34  amount equal to the difference between the amount of revenue per
  26-35  weighted student in the district in the 1990-1991 school year from
  26-36  local funds and the available school fund and the levy that results
  26-37  from the application of the maximum rate authorized under Section
  26-38  20.09 of this code to the district's taxable value of property; and>
  26-39                    <(B)  the county education district shall
  26-40  apportion the remaining funds collected from the tax levy to each
  26-41  school district in the county education district on the basis of
  26-42  the component districts' share of the taxable value of property of
  26-43  the county education district with the provision that no component
  26-44  district shall receive funds in excess of the cost of tier one less
  26-45  the distribution of the available school fund.>
  26-46              <(2)  This subsection expires September 1, 1994.>
  26-47        <(d)  If the total amount available for distribution by the
  26-48  county education district exceeds the county education district's
  26-49  local share under Section 16.252 of this code, the county education
  26-50  district shall retain the excess amount for distribution in
  26-51  succeeding years.>
  26-52        <(e)  If the total amount available for distribution by the
  26-53  county education district is less than the county education
  26-54  district's local share under Section 16.252 of this code, the
  26-55  distributions shall be made under rules adopted by the commissioner
  26-56  of education.>
  26-57        <Sec. 16.502.  COLLECTION AND DISTRIBUTION SCHEDULES.  The
  26-58  commissioner of education shall establish a schedule for the
  26-59  distribution of funds to each school district under this
  26-60  subchapter.>
  26-61        <Sec. 16.503.  DEFINITION.  In this subchapter, "taxable
  26-62  value of property" is the value determined under Section 11.86 of
  26-63  this code.>
  26-64        SECTION 2.  Section 11.86(a), Education Code, is amended to
  26-65  read as follows:
  26-66        (a)  The comptroller shall conduct an annual study using
  26-67  comparable sales and generally accepted auditing and sampling
  26-68  techniques to determine the total value of all taxable property in
  26-69  each <county education> school district <and each of its component
  26-70  school districts>.  The study shall determine the taxable value of
   27-1  all property and of each category of property within the district
   27-2  and the productivity value of all land that qualifies for appraisal
   27-3  on the basis of its productive capacity and for which the owner has
   27-4  applied for and received a productivity appraisal.  In conducting
   27-5  the study, the comptroller shall review the appraisal standards,
   27-6  procedures, and methodology used by each appraisal district to
   27-7  determine the taxable value of property in each school district.
   27-8  The review must test the validity of the taxable values assigned to
   27-9  each category of property by the appraisal district:
  27-10              (1)  using, if appropriate, samples selected through
  27-11  generally accepted sampling techniques; and
  27-12              (2)  according to generally accepted standard
  27-13  valuation, statistical compilation, and analysis techniques.  If
  27-14  the comptroller finds in the annual study that generally accepted
  27-15  appraisal standards and practices were used by the appraisal
  27-16  district in valuing a particular category of property, and that the
  27-17  taxable values assigned to each category of property by the
  27-18  appraisal district are valid, the appraisal roll value of that
  27-19  category of property is presumed to represent taxable value.  In
  27-20  the absence of such a presumption, the comptroller shall estimate
  27-21  the taxable value of that category of property using generally
  27-22  accepted standard valuation, statistical compilation, and analysis
  27-23  techniques.  For the purposes of this section, "taxable value"
  27-24  means market value less:
  27-25              (1)  the total dollar amount of any exemptions of part
  27-26  but not all of the value of taxable property required by the
  27-27  constitution or a statute that a district lawfully granted in the
  27-28  year that is the subject of the study;
  27-29              (2)  the total dollar amount of any exemptions granted
  27-30  within a reinvestment zone under agreements authorized by the
  27-31  Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
  27-32  Code);
  27-33              (3)  the total dollar amount of any captured appraised
  27-34  value of property that is located in a reinvestment zone and that
  27-35  is eligible for tax increment financing under the Tax Increment
  27-36  Financing Act (Chapter 311, Tax Code);
  27-37              (4)  the total dollar amount of any exemptions granted
  27-38  under Section 11.251, Tax Code;
  27-39              (5)  the difference between the market value and the
  27-40  productivity value of land that qualifies for appraisal on the
  27-41  basis of its productive capacity, except that the productivity
  27-42  value may not exceed the fair market value of the land;
  27-43              (6)  the portion of the appraised value of residence
  27-44  homesteads of the elderly on which school district taxes are not
  27-45  imposed in the year that is the subject of the study, calculated as
  27-46  if the residence homesteads were appraised at the full value
  27-47  required by law;
  27-48              (7)  a portion of the market value of property not
  27-49  otherwise fully taxable by the district at market value because of
  27-50  action required by statute or the Texas Constitution that, if the
  27-51  tax rate adopted by the district is applied to it, produces an
  27-52  amount equal to the difference between the tax that the district
  27-53  would have imposed on the property if the property were fully
  27-54  taxable at market value and the tax that the district is actually
  27-55  authorized to impose on the property; and
  27-56              (8)  the market value of all tangible personal
  27-57  property, other than manufactured homes, owned by a family or
  27-58  individual and not held or used for the production of income.
  27-59        SECTION 3.  The heading to Subchapter E, Chapter 13,
  27-60  Education Code, is amended to read as follows:
  27-61           SUBCHAPTER E.  TEACHER APPRAISAL <CAREER LADDER>
  27-62        SECTION 4.  Sections 13.302(a), (c), and (f), Education Code,
  27-63  are amended to read as follows:
  27-64        (a)  The State Board of Education shall adopt an appraisal
  27-65  process and criteria on which to appraise the performance of
  27-66  teachers <for career ladder level assignment purposes>.  The
  27-67  criteria must be based on observable, job-related behavior,
  27-68  including teachers' implementation of discipline management
  27-69  procedures.
  27-70        (c)  An <In developing the appraisal process, the board shall
   28-1  provide for using not fewer than two appraisers for each appraisal.
   28-2  One> appraiser must be the teacher's supervisor or <and one must
   28-3  be> a person <as> approved by the board of trustees.  An appraiser
   28-4  who is a classroom teacher may not appraise the performance of
   28-5  another classroom teacher who teaches at the same school campus at
   28-6  which the appraiser teaches, unless it is impractical because of
   28-7  the number of campuses or unless the appraiser is the chairman of a
   28-8  department or grade level whose job description includes classroom
   28-9  observation responsibilities.  <In a district that uses not more
  28-10  than two appraisers per appraisal, the board shall provide for an
  28-11  appraisal by a third appraiser from another campus if the
  28-12  difference between the appraisals is such that the teacher's
  28-13  performance cannot be accurately evaluated.>  The board also shall
  28-14  provide for a uniform training program and uniform certification
  28-15  standards for appraisers to be used throughout the state.  The
  28-16  board shall include teacher self-appraisal in the process.
  28-17        (f)  Appraisal for teachers must be detailed by category of
  28-18  professional skill and characteristic and must provide for separate
  28-19  ratings per category.  The appraisal process shall guarantee a
  28-20  conference between the teacher and the appraiser <appraisers>, and
  28-21  the conference shall be diagnostic and prescriptive with regard to
  28-22  remediation as needed in overall summary of performance by category
  28-23  and identify the required performance for advancement <to the next
  28-24  level>.
  28-25        SECTION 5.  Subchapter E, Chapter 13, Education Code, is
  28-26  amended by adding Section 13.3021 to read as follows:
  28-27        Sec. 13.3021.  TEACHER APPRAISAL ADVISORY COMMITTEE.
  28-28  (a)  The teacher appraisal advisory committee consists of 16
  28-29  members appointed by the foundation school fund budget committee.
  28-30  The budget committee shall appoint the members as follows:
  28-31              (1)  eight members must be public school teachers who
  28-32  have varying levels of teaching experience;
  28-33              (2)  four members must be public school administrators,
  28-34  two of whom must be campus-level administrators; and
  28-35              (3)  four members must be parents of children enrolled
  28-36  in public schools.
  28-37        (b)  The teacher appraisal advisory committee shall:
  28-38              (1)  study different methods of appraising teachers;
  28-39  and
  28-40              (2)  recommend to the State Board of Education any
  28-41  necessary changes in the appraisal process developed under Section
  28-42  13.302 of this code.
  28-43        (c)  Committee members hold office for terms of two years
  28-44  expiring February 1 of each odd-numbered year.  In the event of a
  28-45  vacancy during a term, the foundation school fund budget committee
  28-46  shall appoint a replacement who meets the qualifications of the
  28-47  vacated position to fill the unexpired portion of the term.
  28-48        (d)  The committee shall select one of its members to serve
  28-49  as presiding officer for a term of one year.
  28-50        (e)  A committee member may not receive compensation for
  28-51  serving on the committee.  A member is not entitled to
  28-52  reimbursement for travel expenses while serving on the committee.
  28-53        SECTION 6.  Sections 13.303(a) and (c), Education Code, are
  28-54  amended to read as follows:
  28-55        (a)  Each school district shall use the appraisal process and
  28-56  performance criteria developed by the board in appraising teachers
  28-57  <for career ladder level assignment purposes>.
  28-58        (c)  Appraisal shall be done at least <not fewer than:>
  28-59              <(1)  two times during each school year for
  28-60  probationary teachers and for teachers on level one of the career
  28-61  ladder; and>
  28-62              <(2)>  once during each school year <for teachers on
  28-63  levels two, three, and four of the career ladder whose performance,
  28-64  on the most recent appraisal, was evaluated as exceeding
  28-65  expectations or clearly outstanding.  The performance of a teacher
  28-66  who, because of unusual circumstances, is appraised only once in a
  28-67  particular year shall be evaluated for career ladder purposes on
  28-68  the basis of a single appraisal>.
  28-69        SECTION 7.  Section 13.304, Education Code, is amended to
  28-70  read as follows:
   29-1        Sec. 13.304.  PERFORMANCE CATEGORIES.  In appraisals of
   29-2  teacher performance <for career ladder level assignment purposes>,
   29-3  performance <shall be evaluated in the same manner and under the
   29-4  same  criteria regardless of level.  Performance> shall be
   29-5  evaluated as:
   29-6              (1)  unsatisfactory (if the teacher's performance is
   29-7  clearly not acceptable in some major area);
   29-8              (2)  below expectations (if the teacher's performance
   29-9  needs improvement in some major areas);
  29-10              (3)  satisfactory (if the teacher's performance meets
  29-11  expectations);
  29-12              (4)  exceeding expectations (if the teacher's
  29-13  performance excels in some major areas); or
  29-14              (5)  clearly outstanding.
  29-15        SECTION 8.  Section 13.912(a), Education Code, is amended to
  29-16  read as follows:
  29-17        (a)  A school district may not deny a teacher a salary bonus
  29-18  or similar compensation given in whole or in part on the basis of
  29-19  teacher attendance <or a career ladder advancement> because of the
  29-20  teacher's absence from school for observance of a religious holy
  29-21  day.
  29-22        SECTION 9.  Sections 14.063(b) and (e), Education Code, are
  29-23  amended to read as follows:
  29-24        (b)  Each school district is entitled to an annual allotment
  29-25  for the purposes provided under Section 14.064 of this code equal
  29-26  to its unadjusted average daily attendance multiplied by<:>
  29-27              <(1)>  $30 <for the 1992-1993 school year, or a greater
  29-28  amount provided by appropriation;>
  29-29              <(2)  $35 for the 1993-1994 school year, or a greater
  29-30  amount provided by appropriation;>
  29-31              <(3)  $40 for the 1994-1995 school year, or a greater
  29-32  amount provided by appropriation;>
  29-33              <(4)  $45 for the 1995-1996 school year, or a greater
  29-34  amount provided by appropriation; and>
  29-35              <(5)  $50 for the 1996-1997 school year and for each
  29-36  school year thereafter>, or a greater amount provided by
  29-37  appropriation.
  29-38        (e)  If an insufficient amount is available in the fund for
  29-39  the state's share of the allotments under Subsection (b) of this
  29-40  section, the agency shall reduce each district's allotment by
  29-41  application of the formula adopted under Section 16.254 <16.254(d)>
  29-42  of this code.
  29-43        SECTION 10.  Subchapter B, Chapter 19, Education Code, is
  29-44  amended by adding Section 19.028 to read as follows:
  29-45        Sec. 19.028.  DETACHMENT AND ANNEXATION TO REDUCE VARIATIONS
  29-46  IN PROPERTY VALUE.  (a)  To the extent necessary to reduce
  29-47  variations in property value per student among school districts,
  29-48  for each school year, the commissioner of education, with the
  29-49  approval of the foundation school budget committee as provided by
  29-50  this section, shall order the detachment of all or a portion of
  29-51  property from a district and the annexation of the property to one
  29-52  or more other districts as provided by this section, without regard
  29-53  to  whether the property is contiguous to the district to which the
  29-54  property is annexed.  A detachment and annexation of real property
  29-55  applies to the taxable personal property having taxable situs in
  29-56  the same location as the real property.  If property is annexed to
  29-57  more than one school district, the taxable value of the property
  29-58  shall be apportioned among those school districts as determined by
  29-59  the commissioner.
  29-60        (b)  The commissioner may detach and annex property under
  29-61  this section only if:
  29-62              (1)  the primary use of the property is not
  29-63  residential, as determined under rules adopted by the commissioner;
  29-64              (2)  the school district from which the property is
  29-65  being detached, before detachment, has a taxable value of property
  29-66  per weighted student in average daily attendance greater than
  29-67  $280,000 per weighted student in average daily attendance, or a
  29-68  different amount provided by appropriation;
  29-69              (3)  the annexation does not result in taxable value of
  29-70  property per weighted student in average daily attendance in the
   30-1  district to which the property is being annexed greater than
   30-2  $280,000 per weighted student in average daily attendance, or a
   30-3  different amount provided by appropriation;
   30-4              (4)  the property is not exempt from ad valorem
   30-5  taxation under Section 11.20 or 11.21, Tax Code;
   30-6              (5)  the property is not a building or structure owned
   30-7  by the United States, this state, or a political subdivision of
   30-8  this state that is exempt from ad valorem taxation under law; and
   30-9              (6)  the property is not currently devoted to
  30-10  agricultural purposes and in the preceding tax year was not
  30-11  appraised for ad valorem taxation under Subchapter C or D, Chapter
  30-12  23, Tax Code.
  30-13        (c)  Property may be detached from a school district under
  30-14  this section only to the extent that, in accordance with a
  30-15  determination of the commissioner, the total amount of taxes per
  30-16  weighted student in average daily attendance that the district can
  30-17  impose for maintenance and operation of the district at an
  30-18  effective tax rate of $1.50 on the $100 valuation of taxable
  30-19  property applied to the taxable value of property in the district
  30-20  after detachment is not less than the amount of taxes per weighted
  30-21  student in average daily attendance spent by the district in the
  30-22  1992-1993 school year for maintenance and operation, excluding
  30-23  reserves for facilities.
  30-24        (d)  In making a determination under this section, the
  30-25  commissioner shall consider the likelihood that the property would
  30-26  need to be transferred again, so that further detachment and
  30-27  annexation of that property may be minimized.
  30-28        (e)  In considering to which school districts any property
  30-29  detached under this section should be annexed, the commissioner
  30-30  shall give preference to districts that, following annexation,
  30-31  would have a taxable value of property per weighted student in
  30-32  average daily attendance at or below the lowest level for which
  30-33  funds are provided under Subchapter H, Chapter 16, of this code.
  30-34  In making a selection among those districts or among other
  30-35  districts eligible to have property annexed under this section, the
  30-36  commissioner shall give priority to school districts in the
  30-37  following order:
  30-38              (1)  first, to a district contiguous to the detached
  30-39  property;
  30-40              (2)  second, to the district nearest to the detached
  30-41  property and located in the same county;
  30-42              (3)  third, to another district located in the same
  30-43  county as the detached property; and
  30-44              (4)  fourth, to the nearest district in proximity to
  30-45  the detached property.
  30-46        (f)  The commissioner shall report to the foundation school
  30-47  budget committee a determination of any detachments and annexations
  30-48  of property to be made under this section not later than July 15 of
  30-49  each year.  Not later than July 30, the committee shall approve the
  30-50  commissioner's determination or shall specify to the commissioner
  30-51  its objections.  Not later than the 10th day after the date on
  30-52  which the commissioner receives any objections from the committee,
  30-53  the commissioner shall submit a revised determination to the
  30-54  committee, and not later than the 10th day after the date on which
  30-55  the committee receives the revised determination, the committee
  30-56  shall respond to the revised determination.  The commissioner and
  30-57  the committee shall continue on that schedule until the committee
  30-58  approves a determination.  As soon as practicable after approval,
  30-59  the commissioner shall notify each affected school district and the
  30-60  appraisal district in which the affected property is located of the
  30-61  determination.
  30-62        (g)  A decision or determination of the commissioner or the
  30-63  foundation school budget committee under this section is final and
  30-64  not appealable.  A detachment or annexation action taken under this
  30-65  chapter does not affect a decision of the commissioner under this
  30-66  section.  The Administrative Procedure and Texas Register Act
  30-67  (Article 6252-13a, Vernon's Texas Civil Statutes) does not apply to
  30-68  a decision of the commissioner or the foundation school budget
  30-69  committee under this section.
  30-70        (h)  For foundation school program funding purposes,
   31-1  detachment and annexation under this section takes effect beginning
   31-2  with the school year that begins in the calendar year in which the
   31-3  detachment and annexation determination is made.  A detachment and
   31-4  annexation of property applies to the ad valorem taxation of the
   31-5  property beginning with the tax year in which the detachment and
   31-6  annexation is made.  In that tax year, the property is  taxable by
   31-7  the school district to which it is annexed and is not taxable by
   31-8  the school district from which it is detached.
   31-9        (i)  A student who is a resident of the area in which the
  31-10  property being detached from a school district is located may
  31-11  choose to attend school in that district or in the district to
  31-12  which the property is being annexed.  For purposes of determining
  31-13  average daily attendance under Section 16.006 of this code, the
  31-14  student shall be counted in the district to which the property is
  31-15  being annexed.  If the student chooses to attend school in the
  31-16  district from which the property is being detached, the state shall
  31-17  withhold any foundation school funds from the district to which the
  31-18  property is being annexed and shall allocate to the district in
  31-19  which the student is attending school those funds and the amount of
  31-20  funds equal to the difference between the state funds the district
  31-21  is receiving for the student and the district's cost in educating
  31-22  the student.
  31-23        (j)  If, before detachment, the school district from which
  31-24  property is detached has authorized the levy of a tax to pay
  31-25  principal and interest on bonds, the district shall continue to
  31-26  levy that tax on the detached property until the bonds have been
  31-27  retired in accordance with Article VII, Section 3-b of the Texas
  31-28  Constitution.  The district to which the property is annexed may
  31-29  not levy on that property a tax to pay principal and interest on
  31-30  bonds issued before the property was annexed.  In determining to
  31-31  which district to annex property detached under this section, the
  31-32  commissioner may consider the extent to which the district from
  31-33  which the property is detached is levying a tax on that property to
  31-34  pay principal and interest on bonds.
  31-35        (k)  The chief appraiser of each appraisal district shall
  31-36  cooperate with the commissioner in implementing this section.
  31-37        (l)  For purposes of this section:
  31-38              (1)  the number of weighted students in average daily
  31-39  attendance, calculated in the manner provided by Section 16.302 of
  31-40  this code, is the number estimated by the commissioner for the
  31-41  succeeding school year; and
  31-42              (2)  the taxable value of property is determined as
  31-43  provided by Section 11.86 of this code.
  31-44        SECTION 11.  Section 20.09, Education Code, is amended to
  31-45  read as follows:
  31-46        Sec. 20.09.  Tax Limitations.  (a)  A <Except as provided by
  31-47  Subsections (c) and (d) of this section, a> school district may not
  31-48  impose a <total> tax rate on the $100 valuation of taxable property
  31-49  that results in a levy for maintenance and operation of the
  31-50  district that exceeds $1.50.  <the levy that results from applying
  31-51  the following rate to the district's taxable value of property as
  31-52  determined under Section 11.86 of this code:>
  31-53              <(1)  $0.78 for the 1991 tax year;>
  31-54              <(2)  $0.68 for the 1992 tax year;>
  31-55              <(3)  $0.58 for the 1993 tax year; and>
  31-56              <(4)  $0.50 for each subsequent tax year.>
  31-57        (b)  A district may impose taxes under this chapter on the
  31-58  residence homestead of a person whose taxes for general elementary
  31-59  and secondary public school purposes are limited under Article
  31-60  VIII, Section 1-b(d), of the Texas Constitution, only to the extent
  31-61  that the imposition, when added to the taxes imposed on the
  31-62  homestead by the school <county education> district for the tier
  31-63  one local fund assignment under Section 16.252 of this code, does
  31-64  not increase the person's tax liability for those purposes in
  31-65  violation of the constitutional limit.
  31-66        <(c)  The portion of the total tax rate required to collect
  31-67  the taxes pledged and levied for the payment of principal and
  31-68  interest on debt authorized to be issued by an election held on or
  31-69  before April 1, 1991, and issued before September 1, 1992, is not
  31-70  subject to the tax limitation under Subsection (a) of this section.>
   32-1        <(d)  Prior to the issuance of bonds other than bonds exempt
   32-2  under Subsection (c) of this section, a district shall demonstrate
   32-3  to the attorney general with respect to the proposed bond issue a
   32-4  projected ability to pay the principal of and interest on the
   32-5  proposed bonds and all previously issued bonds, other than bonds
   32-6  exempt under Subsection (c) of this section, from a tax at a debt
   32-7  rate not to exceed $0.50 per $100 valuation and a total tax rate
   32-8  not to exceed the maximum rate under Subsection (a) of this
   32-9  section.  On approval of the bonds by the attorney general and
  32-10  issuance by the district, the district may levy a tax exceeding the
  32-11  limits established in Subsection (a) of this section if necessary
  32-12  to pay the principal of and interest on the bonds without reducing
  32-13  maintenance and operations expenditures for the district.>
  32-14        SECTION 12.  Section 20.86(b), Education Code, is amended to
  32-15  read as follows:
  32-16        (b)  If the agency determines by audit or otherwise that a
  32-17  district has received a greater payment under this subchapter than
  32-18  it was entitled to receive because it improperly granted residence
  32-19  homestead exemptions, improperly granted eligibility pursuant to
  32-20  Article 7174A or 7174B, assigned excessive value to property
  32-21  affected by Article 7150.5, 7174A, or 7174B, or otherwise
  32-22  overstated the amount it was entitled to receive, the agency shall
  32-23  notify the district of its determination and the reasons for it and
  32-24  shall reduce the amount of the next and, if necessary, subsequent
  32-25  certifications under Section 20.85 of this code or payments of
  32-26  state aid under Section <Sections> 16.254<(b) and 16.254(c)> of
  32-27  this code until the amount of the overpayment is recovered.
  32-28        SECTION 13.  Section 20.88, Education Code, is amended to
  32-29  read as follows:
  32-30        Sec. 20.88.  Effect of Land Use Change.  Prior to April 1,
  32-31  each school district shall notify the Central Education Agency of
  32-32  the amount of payments received during the prior 12 months under
  32-33  the provisions of Section 5 of Article 7174A, Revised Civil
  32-34  Statutes of Texas, 1925, Section 6 of Article 7174B, and Section
  32-35  1-d(f) of Article VIII of the Texas Constitution.  Fifty percent of
  32-36  this amount shall be deducted from either current or subsequent
  32-37  payments under this subchapter or payments of state aid under
  32-38  Section <Sections> 16.254<(b) and (c)>.
  32-39        SECTION 14.  Section 21.032(c), Education Code, is amended to
  32-40  read as follows:
  32-41        (c)  Unless specifically exempted by Section 21.033 of this
  32-42  code, a student enrolled in a public school district must attend an
  32-43  extended year program provided by a school district for which the
  32-44  student is eligible or  tutorial classes required by the district
  32-45  under Section 21.103(b) of this code.  A district shall provide
  32-46  transportation services to students required to attend an extended
  32-47  year program provided by a school district in the same manner as
  32-48  during the regular school year.  A school district is not required
  32-49  to provide transportation services to accommodate <such> students
  32-50  required to attend tutorial classes under Section 21.103(b) of this
  32-51  code.
  32-52        SECTION 15.  Section 21.502, Education Code, is amended to
  32-53  read as follows:
  32-54        Sec. 21.502.  Definitions.  As used in this subchapter,
  32-55  "special services" means:
  32-56              (1)  "special teaching," which may be provided by
  32-57  professional and paraprofessional personnel in the following
  32-58  instructional settings:
  32-59                    (A)  resource room;
  32-60                    (B)  self-contained classroom, regular or special
  32-61  campus;
  32-62                    (C)  hospital or community class;
  32-63                    (D)  homebound or bedside;
  32-64                    (E)  speech or hearing therapy class; or
  32-65                    (F)  mainstream; or
  32-66              (2)  "related services," which are developmental,
  32-67  corrective, supportive, or evaluative services, not instructional
  32-68  in nature, that may be required for the proper development and
  32-69  implementation of a handicapped student's individualized
  32-70  educational plan, including but not limited to special
   33-1  transportation, school health services, counseling with students or
   33-2  families, psychological services, audiological services, visual
   33-3  training, medical or psychiatric diagnostic services, occupational
   33-4  therapy, physical therapy, recreational therapy, social work
   33-5  services, parent counseling and training, adaptive equipment,
   33-6  special seating, orientation and mobility training, speech therapy,
   33-7  music therapy, and corrective therapy.
   33-8        SECTION 16.  Section 21.506(b), Education Code, is amended to
   33-9  read as follows:
  33-10        (b)  Except as provided by Subsection (c) of this section,
  33-11  contracts for residential placements when approved may be paid for
  33-12  from a combination of federal, state, and local funds.  The local
  33-13  share of the total contract cost per pupil is that portion of the
  33-14  local tax effort (total dollars generated by debt service and
  33-15  maintenance taxes) which exceeds the district's local fund
  33-16  assignment under Section 16.252 of this code, divided by the
  33-17  average daily attendance in the district.  If the contract involves
  33-18  a private facility, the state share of the total contract cost is
  33-19  that which remains after subtracting the local share.  If the
  33-20  contract involves a public facility other than a program or
  33-21  facility administered by the Central Education Agency, the state
  33-22  share is that which remains after subtracting the local share from
  33-23  that portion of the contract which involves the costs of
  33-24  instructional and related services.  If the contract involves a
  33-25  program or facility administered by the Central Education Agency,
  33-26  there is no state share paid from this program.
  33-27        SECTION 17.  Subchapter N, Chapter 21, Education Code, is
  33-28  amended by adding Section 21.513 to read as follows:
  33-29        Sec. 21.513.  PILOT PROGRAM FOR INCLUSION.  The Central
  33-30  Education Agency shall establish procedures and criteria for the
  33-31  allocation of funds appropriated under Section 16.151(m) of this
  33-32  code to school districts selected by the agency to establish a
  33-33  pilot program for the inclusion of students with disabilities in
  33-34  the regular classroom so that those students may receive an
  33-35  appropriate free public education in the least restrictive
  33-36  environment.
  33-37        SECTION 18.  Subchapter O, Chapter 21, Education Code, is
  33-38  amended by adding Section 21.562 to read as follows:
  33-39        Sec. 21.562.  OPTIONAL EXTENDED YEAR PROGRAM.  (a)  A school
  33-40  district may apply to the commissioner of education for approval to
  33-41  provide an extended year program for a period not to exceed 30 days
  33-42  for students in kindergarten through grade level eight who are
  33-43  identified as likely not to be promoted to the next grade level for
  33-44  the succeeding school year.
  33-45        (b)  The commissioner may adopt rules for the administration
  33-46  of programs provided under this section.
  33-47        (c)  A school district may not enroll more than 12 students
  33-48  in a class provided under this section.
  33-49        (d)  Each class provided under this section shall be taught
  33-50  by a teacher who has completed successfully a program that provides
  33-51  training to teach a class under this section and that satisfies
  33-52  standards the commissioner establishes.
  33-53        (e)  A student who attends at least 85 percent of the program
  33-54  days of a program under this section shall be promoted to the next
  33-55  grade level at the beginning of the next school year unless a
  33-56  parent of the student presents a written request to the school
  33-57  principal that the student not be promoted to the next grade level.
  33-58  As soon as practicable after receiving the request from a parent,
  33-59  the principal shall hold a formal meeting with the student's
  33-60  parent, extended year program teacher, and counselor.  During the
  33-61  meeting, the principal, teacher, or counselor shall explain the
  33-62  longitudinal statistics on the academic performance of students who
  33-63  are not promoted to the next grade level and provide information on
  33-64  the effect of retention on a student's self-esteem and on the
  33-65  likelihood of a student dropping out of school.  After the meeting,
  33-66  the parent may withdraw the request that the student not be
  33-67  promoted to the next grade level.  If the parent of a student
  33-68  eligible for promotion under this subsection withdraws the request,
  33-69  the student shall be promoted.  If a student is promoted under this
  33-70  subsection, the school district shall continue to use innovative
   34-1  practices to ensure that the student is successful in school in
   34-2  succeeding years.
   34-3        (f)  A school district that provides a program under this
   34-4  section shall adopt a policy designed to lead to immediate
   34-5  reduction and ultimate elimination of student retention.
   34-6        (g)  A school district may apply for approval under this
   34-7  section only for a pilot program for students in grade level one
   34-8  for the 1993-1994 school year and only for a pilot program for
   34-9  students in grade levels one and two for the 1994-1995 school year.
  34-10  The state's share of a pilot program under this section may not
  34-11  exceed the amount appropriated for program purposes.  Funds
  34-12  provided to a pilot program may be used for transportation of
  34-13  eligible students.  This subsection expires September 1, 1995.
  34-14        SECTION 19.  Section 1.04(12), Tax Code, is amended to read
  34-15  as follows:
  34-16              (12)  "Taxing unit" means a county, an incorporated
  34-17  city or town (including a home-rule city), a school district, <a
  34-18  county education district,> a special district or authority
  34-19  (including a junior college district, a hospital district, a
  34-20  district created by or pursuant to the Water Code, a mosquito
  34-21  control district, a fire prevention district, or a noxious weed
  34-22  control district), or any other political unit of this state,
  34-23  whether created by or pursuant to the constitution or a local,
  34-24  special, or general law, that is authorized to impose and is
  34-25  imposing ad valorem taxes on property even if the governing body of
  34-26  another political unit determines the tax rate for the unit or
  34-27  otherwise governs its affairs.
  34-28        SECTION 20.  Section 6.02, Tax Code, is amended by amending
  34-29  Subsections (b) and (f) and adding Subsection (g) to read as
  34-30  follows:
  34-31        (b)  A taxing unit <other than a county education district>
  34-32  that has boundaries extending into two or more counties may choose
  34-33  to participate in only one of the appraisal districts.  In that
  34-34  event, the boundaries of the district chosen extend outside the
  34-35  county to the extent of the unit's boundaries.  To be effective,
  34-36  the choice must be approved by resolution of the board of directors
  34-37  of the district chosen.  The choice of a school district to
  34-38  participate in a single appraisal district does not apply to
  34-39  property annexed to the school district under Section 19.028,
  34-40  Education Code, unless:
  34-41              (1)  the school district taxes property other than
  34-42  property annexed to the district under Section 19.028, Education
  34-43  Code, in the same county as the annexed property; or
  34-44              (2)  the annexed property is contiguous to property in
  34-45  the school district other than property annexed to the district
  34-46  under Section 19.028, Education Code.  <A county education district
  34-47  that has boundaries extending into two or more counties must
  34-48  participate in each appraisal district in which one of its
  34-49  component school districts participates for purposes of appraisal
  34-50  of the component school district's territory.>
  34-51        (f)  All costs of operating an appraisal district in
  34-52  territory outside the county for which the appraisal district is
  34-53  established are allocated to the taxing unit for which the
  34-54  appraisal district appraises property in <that chooses to add> that
  34-55  territory <to the district>.  If the appraisal district appraises
  34-56  property in the same territory for two or more taxing units <add
  34-57  the same territory to an appraisal district>, costs of operating
  34-58  the district in that territory are allocated to the units in the
  34-59  proportion the total dollar amount of taxes each unit imposes in
  34-60  that territory bears to the total dollar amount of taxes all taxing
  34-61  units participating in the appraisal district impose in that
  34-62  territory.
  34-63        (g)  If property is annexed to a school district under
  34-64  Section 19.028, Education Code, the appraisal district established
  34-65  for that county shall appraise the property for the school
  34-66  district, and the school district participates in that appraisal
  34-67  district for purposes of the appraisal of that property, except as
  34-68  otherwise permitted by Subsection (b).
  34-69        SECTION 21.  Sections 6.03(c)-(e), Tax Code, are amended to
  34-70  read as follows:
   35-1        (c)  Members of the board of directors are appointed by vote
   35-2  of the governing bodies of the incorporated cities and towns, the
   35-3  school districts <other than the county education district>, and,
   35-4  if entitled to vote, the conservation and reclamation districts
   35-5  that participate in the district and of the county.  A governing
   35-6  body may cast all its votes for one candidate or distribute them
   35-7  among candidates for any number of directorships.  Conservation and
   35-8  reclamation districts are not entitled to vote unless at least one
   35-9  conservation and reclamation district in the district delivers to
  35-10  the chief appraiser a written request to nominate and vote on the
  35-11  board of directors by June 1 of each odd-numbered year.  On receipt
  35-12  of a request, the chief appraiser shall certify a list by June 15
  35-13  of all eligible conservation and reclamation districts that are
  35-14  imposing taxes and that participate in the district.
  35-15        (d)  The voting entitlement of a taxing unit that is entitled
  35-16  to vote for directors is determined by dividing the total dollar
  35-17  amount of property taxes imposed in the district by the taxing unit
  35-18  for the preceding tax year by the sum of the total dollar amount of
  35-19  property taxes imposed in the district for that year by each taxing
  35-20  unit that is entitled to vote, by multiplying the quotient by
  35-21  1,000, and by rounding the product to the nearest whole number.
  35-22  That number is multiplied by the number of directorships to be
  35-23  filled.  <For a school district, the total dollar amount of
  35-24  property taxes imposed in the district by the unit is considered to
  35-25  be the sum of the taxes imposed by the district and the revenue
  35-26  received by the district from the county education district.>  A
  35-27  taxing unit participating in two or more districts is entitled to
  35-28  vote in each district in which it participates, but only the taxes
  35-29  imposed in a district are used to calculate voting entitlement in
  35-30  that district.
  35-31        (e)  The chief appraiser shall calculate the number of votes
  35-32  to which each taxing unit other than a conservation and reclamation
  35-33  district is entitled and shall deliver written notice to each of
  35-34  those units of its voting entitlement before October 1 of each
  35-35  odd-numbered year.  The chief appraiser shall deliver the notice:
  35-36              (1)  to the county judge and each commissioner of the
  35-37  county served by the appraisal district;
  35-38              (2)  to the presiding officer of the governing body of
  35-39  each city or town participating in the appraisal district, to the
  35-40  city manager of each city or town having a city manager, and to the
  35-41  city secretary or clerk, if there is one, of each city or town that
  35-42  does not have a city manager; and
  35-43              (3)  to the presiding officer of the governing body of
  35-44  each school district<, other than the county education district,>
  35-45  participating in the district and to the superintendent of those
  35-46  school districts.
  35-47        SECTION 22.  Sections 6.06(d) and (h), Tax Code, are amended
  35-48  to read as follows:
  35-49        (d)  Each taxing unit participating in the district<, other
  35-50  than a county education district,> is allocated a portion of the
  35-51  amount of the budget equal to the proportion that the total dollar
  35-52  amount of property taxes imposed in the district by the unit for
  35-53  the tax year in which the budget proposal is prepared bears to the
  35-54  sum of the total dollar amount of property taxes imposed in the
  35-55  district by each participating unit for that year.  <For a school
  35-56  district, other than a county education district, the total dollar
  35-57  amount of property taxes imposed in the district by the unit is
  35-58  considered to be the sum of the taxes imposed by the district and
  35-59  the revenue received by the district from the county education
  35-60  district.>  If a taxing unit participates in two or more districts,
  35-61  only the taxes imposed in a district are used to calculate the
  35-62  unit's cost allocations in that district.  If the number of real
  35-63  property parcels in a taxing unit is less than 5 percent of the
  35-64  total number of real property parcels in the district and the
  35-65  taxing unit imposes in excess of 25 percent of the total amount of
  35-66  the property taxes imposed in the district by all of the
  35-67  participating taxing units for a year, the unit's allocation may
  35-68  not exceed a percentage of the appraisal district's budget equal to
  35-69  three times the unit's percentage of the total number of real
  35-70  property parcels appraised by the district.
   36-1        (h)  If a newly formed taxing unit or a taxing unit that did
   36-2  not impose taxes in the preceding year<, other than a county
   36-3  education district,> imposes taxes in any tax year, that unit is
   36-4  allocated a portion of the amount budgeted to operate the district
   36-5  as if it had imposed taxes in the preceding year, except that the
   36-6  amount of taxes the unit imposes in the current year is used to
   36-7  calculate its allocation.  Before the amount of taxes to be imposed
   36-8  for the current year is known, the allocation may be based on an
   36-9  estimate to which the district board of directors and the governing
  36-10  body of the unit agree, and the payments made after that amount is
  36-11  known shall be adjusted to reflect the amount imposed.  The
  36-12  payments of a newly formed taxing unit that has no source of funds
  36-13  are postponed until the unit has received adequate tax or other
  36-14  revenues.
  36-15        SECTION 23.  Sections 11.13(d), (e), (m), and (n), Tax Code,
  36-16  are amended to read as follows:
  36-17        (d)  In addition to the exemptions provided by Subsections
  36-18  (b) and (c) of this section, an individual who is disabled or is 65
  36-19  or older is entitled to an exemption from taxation by a taxing unit
  36-20  of a portion (the amount of which is fixed as provided by
  36-21  Subsection (e) of this section) of the appraised value of his
  36-22  residence homestead if the exemption is adopted either:
  36-23              (1)  by the governing body of the taxing unit <other
  36-24  than a county education district>; or
  36-25              (2)  by a favorable vote of a majority of the qualified
  36-26  voters of the taxing unit at an election called by the governing
  36-27  body of a taxing unit <other than a county education district>, and
  36-28  the governing body shall call the election on the petition of at
  36-29  least 20 percent of the number of qualified voters who voted in the
  36-30  preceding election of the taxing unit<; or>
  36-31              <(3)  by a favorable vote of a majority of the
  36-32  qualified voters of a county education district at an election held
  36-33  under Section 20.950, Education Code>.
  36-34        (e)  The amount of an exemption adopted as provided by
  36-35  Subsection (d) of this section is $3,000 of the appraised value of
  36-36  the residence homestead unless a larger amount is specified by:
  36-37              (1)  the governing body authorizing the exemption if
  36-38  the exemption is authorized as provided by Subdivision (1) of
  36-39  Subsection (d) of this section; or
  36-40              (2)  the petition for the election if the exemption is
  36-41  authorized as provided by Subdivision (2) of Subsection (d) of this
  36-42  section<; or>
  36-43              <(3)  the proposition approved at an election held
  36-44  under Section 20.950, Education Code>.
  36-45        (m)  In this section:
  36-46              (1)  "Disabled" means under a disability for purposes
  36-47  of payment of disability insurance benefits under Federal Old-Age,
  36-48  Survivors, and Disability Insurance.
  36-49              (2)  "School district" means a political subdivision
  36-50  organized to provide general elementary and secondary public
  36-51  education.  <"School district" includes a county education district
  36-52  established by the consolidation of the local school districts in
  36-53  its boundaries for the limited purpose of exercising a portion of
  36-54  the taxing power previously authorized by the voters in those
  36-55  school districts.>   "School district" does not include a junior
  36-56  college district or a political subdivision organized to provide
  36-57  special education services.
  36-58        (n)  In addition to any other exemptions provided by this
  36-59  section, an individual is entitled to an exemption from taxation by
  36-60  a taxing unit <other than a county education district> of a
  36-61  percentage of the appraised value of his residence homestead if the
  36-62  exemption is adopted by the governing body of the taxing unit
  36-63  before May 1 in the manner provided by law for official action by
  36-64  the body.  If the percentage set by the taxing unit produces an
  36-65  exemption in a tax year of less than $5,000 when applied to a
  36-66  particular residence homestead, the individual is entitled to an
  36-67  exemption of $5,000 of the appraised value.  The percentage adopted
  36-68  by the taxing unit may not exceed 20 percent.  <In addition to any
  36-69  other exemptions provided by this section, an individual is
  36-70  entitled to an exemption from taxation by a county education
   37-1  district of a percentage of the appraised value of his residence
   37-2  homestead if the exemption is adopted by the voters of the district
   37-3  at an election held in the district for that purpose under Section
   37-4  20.946, Education Code.>  If the percentage set by the voters
   37-5  produces an exemption in a tax year of less than $5,000 when
   37-6  applied to a particular residence homestead, the individual is
   37-7  entitled to an exemption of $5,000 of the appraised value.  The
   37-8  percentage adopted by the voters may not exceed 20 percent.
   37-9        SECTION 24.  Sections 11.14(c) and (e), Tax Code, are amended
  37-10  to read as follows:
  37-11        (c)  The governing body of a taxing unit, <other than a
  37-12  county education district,> by resolution or order, depending upon
  37-13  the method prescribed by law for official action by that governing
  37-14  body, may provide for taxation of tangible personal property
  37-15  exempted under Subsection (a).  <The voters of a county education
  37-16  district, by an election held under Section 20.951, Education Code,
  37-17  may provide for taxation of tangible personal property exempted
  37-18  under Subsection (a).>  If a taxing unit provides for taxation of
  37-19  tangible personal property as provided by this subsection, the
  37-20  exemption prescribed by Subsection (a) does not apply to that unit.
  37-21        (e)  A political subdivision <other than a county education
  37-22  district> choosing to tax property otherwise made exempt by this
  37-23  section, pursuant to Article VIII, Section 1(e), of the Texas
  37-24  Constitution, may not do so until the governing body of the
  37-25  political subdivision has held a public hearing on the matter,
  37-26  after having given notice of the hearing at the times and in the
  37-27  manner required by this subsection, and has found that the action
  37-28  will be in the public interest of all the residents of that
  37-29  political subdivision.  At the hearing, all interested persons are
  37-30  entitled to speak and present evidence for or against taxing the
  37-31  property.  Not later than the 30th day prior to the date of a
  37-32  hearing held under this subsection, notice of the hearing must be:
  37-33              (1)  published in a newspaper having general
  37-34  circulation in the political subdivision and in a section of the
  37-35  newspaper other than the advertisement section;
  37-36              (2)  not less than one-half of one page in size; and
  37-37              (3)  republished on not less than three separate days
  37-38  during the period beginning with the 10th day prior to the hearing
  37-39  and ending with the actual date of the hearing.
  37-40        SECTION 25.  Section 21.01, Tax Code, is amended to read as
  37-41  follows:
  37-42        Sec. 21.01.  Real Property.  Real property is taxable by a
  37-43  taxing unit if located in the unit on January 1, except as provided
  37-44  by Section 19.028, Education Code.
  37-45        SECTION 26.  Section 21.02, Tax Code, is amended to read as
  37-46  follows:
  37-47        Sec. 21.02.  Tangible Personal Property Generally.
  37-48  (a)  Except as provided by Subsection (b) and Sections 21.021,
  37-49  21.04, and 21.05 <of this code>, tangible personal property is
  37-50  taxable by a taxing unit if:
  37-51              (1)  it is located in the unit on January 1 for more
  37-52  than a temporary period;
  37-53              (2)  it normally is located in the unit, even though it
  37-54  is outside the unit on January 1, if it is outside the unit only
  37-55  temporarily;
  37-56              (3)  it normally is returned to the unit between uses
  37-57  elsewhere and is not located in any one place for more than a
  37-58  temporary period; or
  37-59              (4)  the owner resides (for property not used for
  37-60  business purposes) or maintains his principal place of business in
  37-61  this state (for property used for business purposes) in the unit
  37-62  and the property is taxable in this state but does not have a
  37-63  taxable situs pursuant to Subdivisions (1) through (3) of this
  37-64  section.
  37-65        (b)  Personal property having taxable situs at the same
  37-66  location as real property detached from a school district and
  37-67  annexed to another school district under Section 19.028, Education
  37-68  Code, is taxable in the tax year in which the detachment and
  37-69  annexation is made by the same school district by which the real
  37-70  property is taxable in that tax year under Section 19.028,
   38-1  Education Code.
   38-2        SECTION 27.  Section 25.25, Tax Code, is amended by adding
   38-3  Subsection (h) to read as follows:
   38-4        (h)  The chief appraiser shall change the appraisal records
   38-5  and school district appraisal rolls promptly to reflect the
   38-6  detachment and annexation of property among school districts under
   38-7  Section 19.028, Education Code.
   38-8        SECTION 28.  Section 317.005(f), Government Code, is amended
   38-9  to read as follows:
  38-10        (f)  The governor or board may adopt an order under this
  38-11  section withholding or transferring any portion of the total amount
  38-12  appropriated to finance the foundation school program for a fiscal
  38-13  year.  The governor or board may not adopt such an order if it
  38-14  would result in an allocation of money between particular programs
  38-15  or statutory allotments under the foundation school program
  38-16  contrary to the statutory proration formula provided by Section
  38-17  16.254(h) <16.254(d)>, Education Code.  The governor or board may
  38-18  transfer an amount to the total amount appropriated to finance the
  38-19  foundation school program for a fiscal year and may increase the
  38-20  basic allotment.  The governor or board may adjust allocations of
  38-21  amounts between particular programs or statutory allotments under
  38-22  the foundation school program only for the purpose of conforming
  38-23  the allocations to actual pupil enrollments or attendance.
  38-24        SECTION 29.  Section 822.201(b), Government Code, is amended
  38-25  to read as follows:
  38-26        (b)  "Salary and wages" as used in Subsection (a) means:
  38-27              (1)  normal periodic payments of money for service the
  38-28  right to which accrues on a regular basis in proportion to the
  38-29  service performed;
  38-30              (2)  <career ladder payments of money authorized by
  38-31  Section 16.057, Education Code;>
  38-32              <(3)>  amounts by which the member's salary is reduced
  38-33  under a salary reduction agreement authorized by Article 6252-3d,
  38-34  Revised Statutes; and
  38-35              (3) <(4)>  amounts that would otherwise qualify as
  38-36  salary and wages under Subdivision (1) <or (2)> but are not
  38-37  received directly by the member pursuant to a good faith, voluntary
  38-38  written salary reduction agreement in order to finance payments to
  38-39  a deferred compensation or tax sheltered annuity program
  38-40  specifically authorized by state law or to finance benefit options
  38-41  under a cafeteria plan qualifying under Section 125 of the Internal
  38-42  Revenue Code of 1986 (26 U.S.C. Section 125), if:
  38-43                    (A)  the program or benefit options are made
  38-44  available to all employees of the employer; and
  38-45                    (B)  the benefit options in the cafeteria plan
  38-46  are limited to one or more options that provide deferred
  38-47  compensation, group health and disability insurance, group term
  38-48  life insurance, dependent care assistance programs, or group legal
  38-49  services plans.
  38-50        SECTION 30.  Sections 825.405(a) and (b), Government Code,
  38-51  are amended to read as follows:
  38-52        (a)  For members entitled to the minimum salary for certain
  38-53  school personnel under Section 16.056 or 16.0562, Education Code,
  38-54  the employing district shall pay the state's contribution on the
  38-55  portion of the member's salary that exceeds the statutory minimum.
  38-56        (b)  For purposes of this section, the statutory minimum
  38-57  salary is the salary provided by Section 16.056, 16.0562, or
  38-58  16.057, Education Code, as applicable, multiplied by the cost of
  38-59  education adjustment applicable under Section 16.102, Education
  38-60  Code, to the district in which the member is employed<, plus any
  38-61  career ladder supplement under Section 16.057, Education Code>.
  38-62        SECTION 31.  Subchapter E, Chapter 825, Government Code, is
  38-63  amended by adding Section 825.4051 to read as follows:
  38-64        Sec. 825.4051.  CONTRIBUTIONS BY CERTAIN SCHOOL DISTRICTS.
  38-65  (a)  If a school district's taxable value of property determined as
  38-66  provided by Section 11.86, Education Code, is greater than $280,000
  38-67  per weighted student in average daily attendance or an amount
  38-68  provided by appropriation, as determined by the commissioner of
  38-69  education, the school district shall pay the state contributions to
  38-70  the retirement system for each employee of the district who is a
   39-1  member of the retirement system under rules adopted by the
   39-2  comptroller.
   39-3        (b)  The state guarantees a district's full and timely
   39-4  payment of the district's obligation to the retirement system under
   39-5  this section and may take action to enforce that obligation.
   39-6        (c)  A district shall pay the state contributions under this
   39-7  section to the greatest extent that permits the district, by
   39-8  imposing an effective tax rate of $1.50 on the $100 valuation of
   39-9  taxable property to the district's taxable value of property
  39-10  determined as provided by Section 11.86, Education Code, to have
  39-11  available the same amount of revenue per weighted student in
  39-12  average daily attendance for maintenance and operation of the
  39-13  district, excluding reserves for facilities and costs of
  39-14  contributions under this section, that the district spent in the
  39-15  1992-1993 school year.
  39-16        (d)  A determination of the commissioner of education under
  39-17  this section is final and not appealable.  The Administrative
  39-18  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  39-19  Civil Statutes) does not apply to a determination of the
  39-20  commissioner under this section.
  39-21        SECTION 32.  The following provisions are repealed:
  39-22              (1)  Sections 1.05, 13.0321(c), 13.035(c), 13.301,
  39-23  13.305, 13.306(b), and 13.307-13.323, Education Code;
  39-24              (2)  Subchapter G, Chapter 20, Education Code; and
  39-25              (3)  Sections 6.061(f), 26.12(e), and 312.002(e) and
  39-26  (f), Tax Code.
  39-27        SECTION 33.  Notwithstanding Section 19.028(c), Education
  39-28  Code, as added by this Act, in the case of detachment and
  39-29  annexation of property for the 1993-1994 school year, the
  39-30  commissioner of education shall make determinations and notify each
  39-31  affected school district not later than July 15, 1993, or the day
  39-32  following the effective date of this Act, whichever is later.
  39-33        SECTION 34.  It is the intent of the 73rd Legislature that,
  39-34  in case of a conflict, the funding provisions for an optional
  39-35  extended year program as provided by Section 21.562, Education
  39-36  Code, as added by this Act, control over any other funding
  39-37  provisions for the program enacted by the 73rd Legislature during
  39-38  its regular session.
  39-39        SECTION 35.  Notwithstanding the requirement in Section
  39-40  16.254, Education Code, as amended by this Act, requiring
  39-41  determinations under that section to be based on estimates provided
  39-42  under Section 16.2541, Education Code, as added by this Act, or on
  39-43  different estimates provided by the General Appropriations Act, for
  39-44  the biennium ending August 31, 1995, determinations required under
  39-45  Section 16.254 shall be based on estimates provided by the
  39-46  Legislative Budget Board model run, number ____.
  39-47        SECTION 36.  Effective September 1, 1993, each county
  39-48  education district created under Section 2, Chapter 20, Acts of the
  39-49  72nd Legislature, Regular Session, 1991, is abolished.
  39-50        SECTION 37.  (a)  On August 31, 1993, each county education
  39-51  district shall transfer its funds to its component school districts
  39-52  in the manner provided by rule of the commissioner of education.
  39-53        (b)  On September 1, 1993, any assets of a county education
  39-54  district other than funds are transferred to its component school
  39-55  districts in the manner and amounts provided by rule of the
  39-56  commissioner of education.
  39-57        (c)  On September 1, 1993, the contracts and other
  39-58  liabilities of a county education district are transferred to its
  39-59  component school districts in the manner and amounts, including
  39-60  joint obligations, provided by rule of the commissioner of
  39-61  education.
  39-62        (d)  The records of the board of a county education district
  39-63  shall be maintained as provided by rule of the commissioner of
  39-64  education.
  39-65        (e)  The component school districts of a county education
  39-66  district abolished by this Act may collect and use or distribute
  39-67  taxes imposed by the county education district that are delinquent
  39-68  in the manner provided by rule of the commissioner of education.
  39-69        SECTION 38.  This Act applies to taxes imposed on or after
  39-70  January 1, 1993.  Changes in the funding of public schools and
   40-1  compensation of school district personnel made by this Act apply
   40-2  beginning with the 1993-1994 school year.
   40-3        SECTION 39.  The importance of this legislation and the
   40-4  crowded condition of the calendars in both houses create an
   40-5  emergency and an imperative public necessity that the
   40-6  constitutional rule requiring bills to be read on three several
   40-7  days in each house be suspended, and this rule is hereby suspended,
   40-8  and that this Act take effect and be in force from and after its
   40-9  passage, and it is so enacted.
  40-10                               * * * * *
  40-11                                                         Austin,
  40-12  Texas
  40-13                                                         May 11, 1993
  40-14  Hon. Bob Bullock
  40-15  President of the Senate
  40-16  Sir:
  40-17  We, your Committee on Education to which was referred S.B. No. 7,
  40-18  have had the same under consideration, and I am instructed to
  40-19  report it back to the Senate with the recommendation that it do not
  40-20  pass, but that the Committee Substitute adopted in lieu thereof do
  40-21  pass and be printed.
  40-22                                                         Ratliff,
  40-23  Chairman
  40-24                               * * * * *
  40-25                               WITNESSES
  40-26                                                  FOR   AGAINST  ON
  40-27  ___________________________________________________________________
  40-28  Name:  David Anderson                                          x
  40-29  Representing:  Lt. Governor's Office
  40-30  City:  Austin
  40-31  -------------------------------------------------------------------
  40-32  Name:  John O'Brien                                            x
  40-33  Representing:  Legislative Budget Office
  40-34  City:  Austin
  40-35  -------------------------------------------------------------------
  40-36  Name:  Steve Collins                                           x
  40-37  Representing:  Legislative Council
  40-38  City:  Austin
  40-39  -------------------------------------------------------------------
  40-40  Name:  Kevin O'Hanlon                                          x
  40-41  Representing:  Texas Education Agency
  40-42  City:  Austin
  40-43  -------------------------------------------------------------------
  40-44  Name:  Leslie LeRoy                              x       x
  40-45  Representing:  Tx Assoc of School Boards
  40-46  City:  Corpus Christi
  40-47  -------------------------------------------------------------------
  40-48  Name:  Bill Grusendorf                           x       x
  40-49  Representing:  San Saba ISD
  40-50  City:  San Saba
  40-51  -------------------------------------------------------------------
  40-52  Name:  Terry Bishop                              x
  40-53  Representing:  Texas School Alliance
  40-54  City:  Austin
  40-55  -------------------------------------------------------------------
  40-56  Name:  Ted Roberts                               x
  40-57  Representing:  Tx Assn of Business
  40-58  City:  Austin
  40-59  -------------------------------------------------------------------
  40-60  Name:  Don Rogers                                              x
  40-61  Representing:  Tx Assn of Community Schools
  40-62  City:  Austin
  40-63  -------------------------------------------------------------------
  40-64  Name:  Pat Hanks                                 x
  40-65  Representing:  Assoc of Tx Professional Educ
  40-66  City:  Austin
  40-67  -------------------------------------------------------------------
  40-68  Name:  Joe Wisnoski                                            x
  40-69  Representing:  Governor's Office
  40-70  City:  Austin
   41-1  -------------------------------------------------------------------