By Dutton                                       H.B. No. 1506

      75R6400 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the use of program weights under the foundation school

 1-3     program.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  The following sections of the Education Code are

 1-6     repealed:  7.024, 29.014(d), 42.104, 42.151, 42.152, 42.153,

 1-7     42.154, 42.156, and 42.253(l).

 1-8           SECTION 2.  Section 8.051, Education Code, is amended to read

 1-9     as follows:

1-10           Sec. 8.051.  CORE SERVICES.  Each regional education service

1-11     center shall use funds distributed to the center under Section

1-12     8.121 for developing and maintaining core services for purchase by

1-13     school districts and campuses.  The core services are:

1-14                 (1)  training and assistance in teaching each subject

1-15     area assessed under Section 39.023;

1-16                 (2)  training and assistance in providing each program

1-17     under Subchapter A, B, C, or D, Chapter 29 [that qualifies for a

1-18     funding allotment under Section 42.151, 42.152, 42.153, or 42.156];

1-19                 (3)  assistance specifically designed for a school

1-20     district rated academically unacceptable under Section 39.072(a) or

1-21     a campus whose performance is considered unacceptable based on the

1-22     indicators adopted under Section 39.051;

1-23                 (4)  training and assistance to teachers,

1-24     administrators, members of district boards of trustees, and members

 2-1     of site-based decision-making committees; and

 2-2                 (5)  assistance in complying with state laws and rules.

 2-3           SECTION 3.  Section 12.016, Education Code, is amended to

 2-4     read as follows:

 2-5           Sec. 12.016.  CONTENT.  Each home-rule school district

 2-6     charter must:

 2-7                 (1)  describe the educational program to be offered;

 2-8                 (2)  provide that continuation of the home-rule school

 2-9     district charter is contingent on:

2-10                       (A)  acceptable student performance on assessment

2-11     instruments adopted under Subchapter B, Chapter 39; and

2-12                       (B)  compliance with other applicable

2-13     accountability provisions under Chapter 39;

2-14                 (3)  specify any basis, in addition to a basis

2-15     specified by this subchapter, on which the charter may be placed on

2-16     probation or revoked;

2-17                 (4)  describe the governing structure of the district

2-18     and campuses;

2-19                 (5)  specify any procedure or requirement, in addition

2-20     to those under Chapter 38, that the district will follow to ensure

2-21     the health and safety of students and employees;

2-22                 (6)  describe the process by which the district will

2-23     adopt an annual budget[, including a description of the use of

2-24     program-weight funds];

2-25                 (7)  describe the manner in which an annual audit of

2-26     financial and programmatic operations of the district is to be

2-27     conducted, including the manner in which the district will provide

 3-1     information necessary for the district to participate in the Public

 3-2     Education Information Management System (PEIMS) to the extent

 3-3     required by this subchapter; and

 3-4                 (8)  include any other provision the charter commission

 3-5     considers necessary.

 3-6           SECTION 4.  Section 29.002, Education Code, is amended to

 3-7     read as follows:

 3-8           Sec. 29.002.  DEFINITION.  In this subchapter, "special

 3-9     services" means:

3-10                 (1)  special instruction, which may be provided by

3-11     professional and paraprofessional personnel in the regular

3-12     classroom or in a special [an] instructional arrangement as defined

3-13     by rule of the commissioner [described by Section 42.151]; or

3-14                 (2)  related services, which are developmental,

3-15     corrective, supportive, or evaluative services, not instructional

3-16     in nature, that may be required for the proper development and

3-17     implementation of a student's individualized education program.

3-18           SECTION 5.  Section 29.082(a), Education Code, is amended to

3-19     read as follows:

3-20           (a)  A school district [may set aside an amount from the

3-21     district's allotment under Section 42.152 or] may apply to the

3-22     agency for  funding of an extended year program for a period not to

3-23     exceed 30 instructional days for students in kindergarten through

3-24     grade 8 who are identified as likely not to be promoted to the next

3-25     grade level for the succeeding school year.

3-26           SECTION 6.  Section 29.203(b), Education Code, is amended to

3-27     read as follows:

 4-1           (b)  A student's public education grant is the total state

 4-2     and local funding per student for the school district in which the

 4-3     student resides.  Total funding from state and local sources

 4-4     [includes special allotments under Subchapter C, Chapter 42, but]

 4-5     does not include small district, sparsity, and cost of education

 4-6     adjustments and allotments for technology and transportation.  A

 4-7     student's public education grant is the entitlement of the student,

 4-8     under the supervision of the student's parent, guardian, or

 4-9     custodian, is not an entitlement of any school district, and is

4-10     paid to a school district solely as a means of administrative

4-11     convenience.

4-12           SECTION 7.  Section 30.087(b), Education Code, is amended to

4-13     read as follows:

4-14           (b)  From the amount appropriated for regional day school

4-15     programs, the commissioner shall allocate funds to each program

4-16     based on the number of [weighted] full-time equivalent students

4-17     served.  The commissioner may consider local resources available in

4-18     allocating funds under this subsection.

4-19           SECTION 8.  Section 33.001, Education Code, is amended to

4-20     read as follows:

4-21           Sec. 33.001.  APPLICABILITY OF SUBCHAPTER.  This subchapter

4-22     applies only to a school district that receives funds distributed

4-23     by the commissioner for a program under this subchapter.  In

4-24     distributing those funds, the commissioner shall give preference to

4-25     a school district that received funds for a program under this

4-26     subchapter for the preceding school year [as provided by Section

4-27     42.152(i)].

 5-1           SECTION 9.  Section 39.024(c), Education Code, is amended to

 5-2     read as follows:

 5-3           (c)  The agency shall develop and distribute study guides to

 5-4     assist parents in providing assistance during the period that

 5-5     school is recessed for summer to students who do not perform

 5-6     satisfactorily on one or more parts of an assessment instrument

 5-7     administered under this subchapter.  [The commissioner shall retain

 5-8     a portion of the total amount of funds allotted under Section

 5-9     42.152(a) that the commissioner considers appropriate to finance

5-10     the development and distribution of the study guides and shall

5-11     reduce each district's allotment proportionately.]

5-12           SECTION 10.  Section 39.031, Education Code, is amended to

5-13     read as follows:

5-14           Sec. 39.031.  COST.  [(a)]  The cost of preparing,

5-15     administering, or grading the assessment instruments and the [shall

5-16     be paid from the funds allotted under Section 42.152, and each

5-17     district shall bear the cost in the same manner described for a

5-18     reduction in allotments under Section 42.253.  If a district does

5-19     not receive an allotment under Section 42.152, the commissioner

5-20     shall subtract the cost from the district's other foundation school

5-21     fund allotments.]

5-22           [(b)  The] cost of releasing the question and answer keys

5-23     under Section 39.023(d) shall be paid from amounts appropriated to

5-24     the agency.

5-25           SECTION 11.  Section 41.001, Education Code, is amended to

5-26     read as follows:

5-27           Sec. 41.001.  DEFINITIONS.  In this chapter:

 6-1                 (1)  "Average daily attendance" is computed as provided

 6-2     by Section 42.005, except that:

 6-3                       (A)  average daily attendance is computed using

 6-4     the estimate of average daily attendance under Section 42.254; and

 6-5                       (B)  the estimate under Section 42.254 is

 6-6     modified by including a student residing in a school district but

 6-7     attending school in another district in the estimate for the

 6-8     district of the student's residence and not of the district in

 6-9     which the student attends school.

6-10                 (2)  "Equalized wealth level" means the wealth per

6-11     student provided by Section 41.002.

6-12                 (3) [(2)]  "Wealth per student" means the taxable value

6-13     of property, as determined under Subchapter M, Chapter 403,

6-14     Government Code, divided by the number of students in [weighted]

6-15     average daily attendance.

6-16                 [(3)  "Weighted average daily attendance" has the

6-17     meaning assigned by Section 42.302, except that:]

6-18                       [(A)  weighted average daily attendance is

6-19     computed using the estimate of average daily attendance under

6-20     Section 42.254; and]

6-21                       [(B)  the estimate under Section 42.254 is

6-22     modified by including a student residing in a school district but

6-23     attending school in another district in the estimate for the

6-24     district of the student's residence and not of the district in

6-25     which the student attends school.]

6-26           SECTION 12.  Section 41.002(e), Education Code, is amended to

6-27     read as follows:

 7-1           (e)  Notwithstanding Subsection (a), for the 1996-1997 and

 7-2     1997-1998 school years, in accordance with a determination of the

 7-3     commissioner, the wealth per student that a school district may

 7-4     have after exercising an option under Section 41.003(2) or (3) may

 7-5     not be less than the amount needed to maintain state and local

 7-6     revenue in an amount equal to state and local revenue per

 7-7     [weighted] student for maintenance and operation of the district

 7-8     for the 1992-1993 school year less the district's current year

 7-9     distribution per [weighted] student from the available school fund,

7-10     other than amounts distributed under Chapter 31, if the district

7-11     imposes an effective tax rate for maintenance and operation of the

7-12     district equal to the greater of the district's current tax rate or

7-13     $1.50 on the $100 valuation of taxable property.  This subsection

7-14     expires September 1, 1998.

7-15           SECTION 13.  Sections 41.092 and 41.093, Education Code, are

7-16     amended to read as follows:

7-17           Sec. 41.092.  CREDIT.  (a)  For each credit purchased, the

7-18     [weighted] average daily attendance of the purchasing school

7-19     district is increased by one student in [weighted] average daily

7-20     attendance  for purposes of determining whether the district

7-21     exceeds the equalized wealth level.

7-22           (b)  A credit is not used in determining a school district's

7-23     scholastic population or [,] average daily attendance[, or weighted

7-24     average daily attendance] for purposes of Chapter 42 or 43.

7-25           Sec. 41.093.  COST.  The cost of each credit is an amount

7-26     equal to the greater of:

7-27                 (1)  the amount of the district's total tax revenue per

 8-1     student in [weighted] average daily attendance for the school year

 8-2     for which the contract is executed; or

 8-3                 (2)  the amount of the statewide district average of

 8-4     total tax revenue per student in [weighted] average daily

 8-5     attendance for the school year preceding the school year for which

 8-6     the contract is executed.

 8-7           SECTION 14.  Section 41.121, Education Code, is amended to

 8-8     read as follows:

 8-9           Sec. 41.121.  AGREEMENT.  The board of trustees of a district

8-10     with a wealth per student that exceeds the equalized wealth level

8-11     may execute an agreement to educate the students of another

8-12     district in a number that, when the [weighted] average daily

8-13     attendance of the students served is added to the [weighted]

8-14     average daily  attendance of the contracting district, is

8-15     sufficient, in combination with any other actions taken under this

8-16     chapter, to reduce the district's wealth per student to a level

8-17     that is equal to or less than the equalized wealth level.  The

8-18     agreement is not effective unless the commissioner certifies that

8-19     the transfer of [weighted] average daily attendance will not result

8-20     in any of the contracting districts' wealth per student being

8-21     greater than the equalized wealth level and that the agreement

8-22     requires an expenditure per student in [weighted] average daily

8-23     attendance that  is at least equal to the amount per student in

8-24     [weighted] average daily attendance required under Section 41.093,

8-25     unless it is determined by the commissioner that a quality

8-26     educational program can be delivered at a lesser amount.  The

8-27     commissioner may approve a special financial arrangement between

 9-1     districts if that arrangement serves the best educational interests

 9-2     of the state.

 9-3           SECTION 15.  Section 41.123, Education Code, is amended to

 9-4     read as follows:

 9-5           Sec. 41.123.  ADA [WADA] COUNT.  For purposes of Chapter 42,

 9-6     students served under an agreement under this subchapter  are

 9-7     counted only in the [weighted] average daily attendance of the

 9-8     district providing the services.

 9-9           SECTION 16.  Section 41.157(b), Education Code, is amended to

9-10     read as follows:

9-11           (b)  Each component district shall bear a share of the costs

9-12     of assessing and collecting taxes in proportion to the component

9-13     district's share of [weighted] average daily attendance in the

9-14     consolidated taxing district.

9-15           SECTION 17.  Section 41.158, Education Code, is amended to

9-16     read as follows:

9-17           Sec. 41.158.  REVENUE DISTRIBUTION.  The consolidated taxing

9-18     district shall distribute maintenance tax revenue to the component

9-19     districts on the basis of the number of students in [weighted]

9-20     average daily attendance in the component districts.

9-21           SECTION 18.  Section 42.101, Education Code, is amended to

9-22     read as follows:

9-23           Sec. 42.101.  BASIC ALLOTMENT.  For each student in average

9-24     daily attendance, [not including the time students spend each day

9-25     in special education programs in an instructional arrangement other

9-26     than mainstream or career and technology education programs, for

9-27     which an additional allotment is made under Subchapter C,] a

 10-1    district is entitled to an allotment of $2,387 or a greater amount

 10-2    adopted by the foundation school fund budget committee under

 10-3    Section 42.256.  A greater amount for any school year may be

 10-4    provided by appropriation.

 10-5          SECTION 19.  Section 42.103(e), Education Code, is amended to

 10-6    read as follows:

 10-7          (e)  The commissioner may make the adjustment authorized by

 10-8    Subsection (d)(3) only if the district's wealth per student does

 10-9    not exceed the equalized wealth level under Section 41.002.  For

10-10    purposes of this subsection, a district's wealth per student is

10-11    determined in the manner provided by Section 41.001, except that

10-12    the adjustment provided by Subsection (d)(3) is not used in

10-13    computing the number of students in [weighted] average daily

10-14    attendance.

10-15          SECTION 20.  Section 42.256(e), Education Code, is amended to

10-16    read as follows:

10-17          (e)  The funding elements shall include:

10-18                (1)  a basic allotment for the purposes of Section

10-19    42.101 that, when combined with the guaranteed yield component

10-20    provided by Subchapter F, represents the cost per student of a

10-21    regular education program that meets all mandates of law and

10-22    regulation;

10-23                (2)  adjustments designed to reflect the variation in

10-24    known resource costs and costs of education beyond the control of

10-25    school districts;

10-26                (3)  [appropriate program cost differentials and other

10-27    funding elements for the programs authorized under Subchapter C,

 11-1    with the program funding level expressed as dollar amounts and as

 11-2    weights applied to the adjusted basic allotment for the appropriate

 11-3    year;]

 11-4                [(4)]  the maximum guaranteed level of qualified state

 11-5    and local funds per student for the purposes of Subchapter F;

 11-6                (4) [(5)]  the enrichment and facilities tax rate under

 11-7    Subchapter F;

 11-8                [(6)  the calculation of students in weighted average

 11-9    daily attendance under Section 42.302;] and

11-10                (5) [(7)]  the amount to be appropriated for the school

11-11    facilities assistance program under Subchapter H.

11-12          SECTION 21.  Section 42.302(a), Education Code, is amended to

11-13    read as follows:

11-14          (a)  Each school district is guaranteed a specified amount

11-15    per [weighted] student in state and local funds for each cent of

11-16    tax effort over that required for the district's local fund

11-17    assignment up to the maximum level specified in this subchapter.

11-18    The amount of state support, subject only to the maximum amount

11-19    under Section 42.303, is determined by the formula:

11-21    where:

11-22          "GYA" is the guaranteed yield amount of state funds to be

11-23    allocated to the district;

11-24          "GL" is the dollar amount guaranteed level of state and local

11-25    funds per [weighted] student per cent of tax effort, which is

11-26    $20.55 or a greater amount for any year provided by appropriation,

11-27    or a greater amount adopted by the foundation school fund budget

 12-1    committee under Section 42.256(d);

 12-2          "ADA" ["WADA"] is the number of students in [weighted]

 12-3    average daily attendance[, which is calculated by dividing the sum

 12-4    of the school district's allotments under Subchapters B and C, less

 12-5    any allotment to the district for transportation and 50 percent of

 12-6    the adjustment under Section 42.102, by the basic allotment for the

 12-7    applicable year];

 12-8          "DTR" is the district enrichment and facilities tax rate of

 12-9    the school district, which is determined by subtracting the amounts

12-10    specified by Subsection (b) from the total amount of taxes

12-11    collected by the school district for the applicable school year and

12-12    dividing the difference by the quotient of the district's taxable

12-13    value of property as determined under Subchapter M, Chapter 403,

12-14    Government Code, divided by 100; and

12-15          "LR" is the local revenue, which is determined by multiplying

12-16    "DTR" by the quotient of the district's taxable value of property

12-17    as determined under Subchapter M, Chapter 403, Government Code,

12-18    divided by 100.

12-19          SECTION 22.  Section 42.401(2), Education Code, is amended to

12-20    read as follows:

12-21                (2)  "Guaranteed wealth level" means a wealth per

12-22    student determined by the following formula:

12-24    where:

12-25          "GWL" is the guaranteed wealth level; and

12-26          "GL" is the dollar amount guaranteed level of state and local

12-27    funds per [weighted] student per cent of tax effort, as provided by

 13-1    Section 42.302[;]

 13-2          ["SWADA" is the total weighted average daily attendance,

 13-3    determined in the manner provided by Section 42.302, for all school

 13-4    districts in the state; and]

 13-5          ["SADA" is the total average daily attendance for all school

 13-6    districts in the state].

 13-7          SECTION 23.  Section 42.404(a), Education Code, is amended to

 13-8    read as follows:

 13-9          (a)  In addition to the amount determined under Section

13-10    42.403, a district is entitled to supplemental state assistance if

13-11    the district's average daily attendance is less than [the product

13-12    of the quotient of the average daily attendance for all school

13-13    districts in the state, as determined under Section 42.401, divided

13-14    by the weighted average daily attendance for all school districts

13-15    in the state, as determined under Section 42.401, multiplied by]

13-16    2,500.  The amount of supplemental state assistance to which a

13-17    school district is entitled is the lesser of the amounts determined

13-18    by the following formulas:

13-20    where:

13-21          "SSA" is the amount of supplemental state assistance;

13-22          "SA" is the amount of state assistance determined under

13-23    Section 42.403;

13-24          "DPV" is the district's taxable value of property, as

13-25    determined under Subchapter M, Chapter 403, Government Code; and

13-26          "PC" is the total cost of the project; or

 14-1    where:

 14-2          "SSA" is the amount of supplemental state assistance;

 14-3          "SA" is the amount of state assistance determined under

 14-4    Section 42.403; and

 14-5          "PC" is the total cost of the project.

 14-6          SECTION 24.  Section 42.410(a), Education Code, is amended to

 14-7    read as follows:

 14-8          (a)  If the guaranteed wealth level is increased over the

 14-9    level for the year in which a school district received assistance

14-10    under this subchapter, for each year to which the increased level

14-11    applies and in which the district levies a tax to pay for the local

14-12    share of the cost of the project for which the district received

14-13    state assistance under this subchapter, the district is entitled to

14-14    additional state assistance determined by the formula:

14-16                           LPR - ((SA + SSA)/PY)

14-17    where:

14-18          "ASA" is the amount of additional state assistance;

14-19          "GL" is the dollar amount guaranteed level of state and local

14-20    funds per [weighted] student per cent of tax effort, as provided by

14-21    Section 42.302;

14-22          ["SWADA" is the total number of students in weighted average

14-23    daily attendance in the district, determined in the manner provided

14-24    by Section 42.302, for all school districts in the state;]

14-25          ["SADA" is the total average daily attendance for all school

14-26    districts in the state;]

14-27          "ADA" is the district's average daily attendance;

 15-1          "PTR" is the project tax rate of the district, which is

 15-2    calculated by dividing the amount necessary for annual payments:

 15-3                (1)  on the principal and interest of bonds issued to

 15-4    finance the local share of the project; or

 15-5                (2)  under a lease-purchase agreement for the local

 15-6    share of the project; by the DPV as defined in Section 42.404;

 15-7          "LPR" is the local project revenue, which is determined by

 15-8    multiplying "PTR" by the quotient of the district's taxable value

 15-9    of property, as determined under Subchapter M, Chapter 403,

15-10    Government Code, divided by 100;

15-11          "SA" is the state assistance allocated to the district under

15-12    Section 42.403;

15-13          "SSA" is the supplemental state assistance allocated to the

15-14    district under Section 42.404; and

15-15          "PY" is the number of years for which the district must levy

15-16    a tax to pay for the local share of the project cost, as reported

15-17    to the commissioner under Section 42.409(b).

15-18          SECTION 25.  This Act takes effect September 1, 1997.

15-19          SECTION 26.  The amendment to Section 8.051, Education Code,

15-20    by this Act takes effect only if a law is enacted by the 75th

15-21    Legislature, Regular Session, 1997, establishing or continuing in

15-22    effect regional education service centers.

15-23          SECTION 27.  The importance of this legislation and the

15-24    crowded condition of the calendars in both houses create an

15-25    emergency and an imperative public necessity that the

15-26    constitutional rule requiring bills to be read on three several

15-27    days in each house be suspended, and this rule is hereby suspended.