75R10029 ESH-D                           

         By Cuellar, et al.                                     H.B. No. 318

         Substitute the following for H.B. No. 318:

         By Sadler                                          C.S.H.B. No. 318

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the public education grant program.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Sections 29.202 and 29.203, Education Code, are

 1-5     amended to read as follows:

 1-6           Sec. 29.202.  ELIGIBILITY.  (a)  A student is eligible to

 1-7     receive a public education grant under this subchapter if the

 1-8     student is assigned to attend a public school campus:

 1-9                 (1)  at which 50 percent or more of the students did

1-10     not perform satisfactorily on an assessment instrument administered

1-11     under Section 39.023(a) or (b) at any time in the preceding three

1-12     years; or

1-13                 (2)  that was, at any time in the preceding three

1-14     years, identified as low-performing by the commissioner under

1-15     Subchapter  D, Chapter 39.

1-16           (b)  After a student has used a public education grant to

1-17     attend a school in a district other than the district in which the

1-18     student resides:

1-19                 (1)  the student does not become ineligible for the

1-20     grant if the school on which the student's initial eligibility is

1-21     based no longer meets the criteria under Subsection (a); and

1-22                 (2)  the student becomes ineligible for the grant if

1-23     the student is assigned to attend a school that does not meet the

1-24     criteria under Subsection (a).

 2-1           Sec. 29.203.  FINANCING.  (a)  A student [eligible under

 2-2     Section 25.001 to attend school in a school district but]  who

 2-3     under this subchapter uses a public education grant to attend

 2-4     [attends] a public school in a school [another]  district other

 2-5     than the district in which the student resides is included in the

 2-6     average daily attendance of the district in which the student

 2-7     [resides.  The district in which the student] attends school [shall

 2-8     report the student's attendance to the district in which the

 2-9     student resides in accordance with rules adopted by the

2-10     commissioner].

2-11           (b)  A school district is entitled to the allotment provided

2-12     by Section 42.157 for each eligible student using a public

2-13     education grant.  If the district has a wealth per student greater

2-14     than the guaranteed wealth level but less than the equalized wealth

2-15     level,  a school district is entitled under rules adopted by the

2-16     commissioner to additional state aid in an amount equal to the

2-17     difference between the cost to the district of providing services

2-18     to a student using a public education grant and the sum of the

2-19     state aid received because of the allotment under Section 42.157

2-20     and money from the available school fund attributable to the

2-21     student.

2-22           (c)  A school district is entitled to additional facilities

2-23     assistance under Section 42.4101 if the district agrees to:

2-24                 (1)  accept a number of students using public education

2-25     grants that is at least one percent of the district's average daily

2-26     attendance for  the preceding school year; and

2-27                 (2) provide services to each student until the student

 3-1     either voluntarily decides to attend a school in a different

 3-2     district or graduates from high school.

 3-3           (d)  [A student's public education grant is the total state

 3-4     and local funding per student for the school district in which the

 3-5     student resides.  Total funding from state and local sources

 3-6     includes special allotments under Subchapter C, Chapter 42, but

 3-7     does not include small district, sparsity, and cost of education

 3-8     adjustments and allotments for technology and transportation.  A

 3-9     student's public education grant is the entitlement of the student,

3-10     under the supervision of the student's parent, guardian, or

3-11     custodian, is not an entitlement of any school district, and is

3-12     paid to a school district solely as a means of administrative

3-13     convenience.]

3-14           [(c)]  A school district chosen by a student's parent under

3-15     Section 29.201 is entitled to accept or reject the application for

3-16     the student to attend school in that district but may not use

3-17     criteria that discriminate on the basis of a student's race,

3-18     ethnicity, academic achievement, athletic abilities, language

3-19     proficiency, sex, or socioeconomic status.  A school district that

3-20     has more acceptable applicants for attendance under this subchapter

3-21     than available positions must give priority to students at risk of

3-22     dropping out of school as defined by Section 29.081 and must fill

3-23     the available positions by lottery.  However, to achieve continuity

3-24     in education, a school district may give preference over at-risk

3-25     students to enrolled students and to the siblings of enrolled

3-26     students residing in the same household or other children residing

3-27     in the same household as enrolled students for the convenience of

 4-1     parents, guardians, or custodians of those children.

 4-2           (e) [(d)]  A school district chosen by a student's parent

 4-3     under Section 29.201 may not charge the student tuition [in

 4-4     addition to the public education grant or charge tuition that is

 4-5     greater than the district's average expenditure per student.  The

 4-6     school district in which the student resides is entitled to the

 4-7     remainder, if any, of the student's public education grant funds].

 4-8           (f) [(e)]  The school district in which a student resides

 4-9     shall provide each student attending a school in another district

4-10     under this subchapter transportation free of charge to and from the

4-11     school the student would otherwise attend.

4-12           (g)  In this section:

4-13                 (1)  "Equalized wealth level" has the meaning assigned

4-14     by Section 41.001.

4-15                 (2)  "Guaranteed wealth level" means a wealth per

4-16     student equal to the dollar amount guaranteed level of state and

4-17     local funds per weighted student per cent of tax effort, as

4-18     provided by Section 42.302, multiplied by 10,000.

4-19                 (3)  "Wealth per student" has the meaning assigned by

4-20     Section 41.001.

4-21           SECTION 2.  Subchapter C, Chapter 42, Education Code, is

4-22     amended by adding Section 42.157 to read as follows:

4-23           Sec. 42.157.   PUBLIC EDUCATION GRANT ALLOTMENT.  (a)  Except

4-24     as provided by Subsection (b), for each student in average daily

4-25     attendance who is using a public education grant under Subchapter

4-26     G, Chapter 29, to attend school in a district other than the

4-27     district in which the student resides, the district in which the

 5-1     student attends school is entitled to an annual allotment equal to

 5-2     the adjusted basic allotment multiplied by a weight of 0.1.

 5-3           (b)  The total number of allotments under this section to

 5-4     which a district is entitled may not exceed the number by which the

 5-5     number of students using public education grants to attend school

 5-6     in the district exceeds the number of students who reside in the

 5-7     district and use public education grants to attend school in

 5-8     another district.

 5-9           SECTION 3.  Subchapter H, Chapter 42, Education Code, is

5-10     amended by adding Section 42.4101 to read as follows:

5-11           Sec. 42.4101.  ADDITIONAL ASSISTANCE FOR DISTRICTS WITH

5-12     STUDENTS USING PUBLIC EDUCATION GRANTS.  (a)  A district is

5-13     entitled to additional assistance under this section as provided by

5-14     Section 29.203(c).

5-15           (b)  The amount of additional assistance under this section

5-16     is computed by subtracting the number of students residing in the

5-17     district and using public education grants to attend school in

5-18     another district for the year in which the assistance is granted

5-19     from the number of students using public education grants to attend

5-20     school in the district for that year and multiplying the difference

5-21     by $266.

5-22           (c)  If a district to which this section applies is entitled

5-23     to the maximum amount of assistance under Section 42.406, the

5-24     maximum is increased by the amount of additional assistance to

5-25     which the district is entitled under this section.

5-26           SECTION 4.  This Act applies beginning with the 1997-1998

5-27     school year.

 6-1           SECTION 5.  The importance of this legislation and the

 6-2     crowded condition of the calendars in both houses create an

 6-3     emergency and an imperative public necessity that the

 6-4     constitutional rule requiring bills to be read on three several

 6-5     days in each house be suspended, and this rule is hereby suspended,

 6-6     and that this Act take effect and be in force from and after its

 6-7     passage, and it is so enacted.