By Madden                                       H.B. No. 2977

      75R5868 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to public school finance.

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

 1-4           SECTION 1.  The following provisions of the Education Code

 1-5     are repealed:

 1-6                 (1)  Chapter 41; and

 1-7                 (2)  Sections 7.055(a)(34), 12.107(b), and 42.103(e).

 1-8           SECTION 2.  Section 12.013(b), Education Code, is amended to

 1-9     read as follows:

1-10           (b)  A home-rule school district is subject to:

1-11                 (1)  a provision of this title establishing a criminal

1-12     offense;

1-13                 (2)  a provision of this title relating to limitations

1-14     on liability; and

1-15                 (3)  a prohibition, restriction, or requirement, as

1-16     applicable, imposed by this title or a rule adopted under this

1-17     title, relating to:

1-18                       (A)  the Public Education Information Management

1-19     System (PEIMS) to the extent necessary to monitor compliance with

1-20     this subchapter as determined by the commissioner;

1-21                       (B)  educator certification under Chapter 21 and

1-22     educator rights under Sections 21.407, 21.408, and 22.001;

1-23                       (C)  criminal history records under Subchapter C,

1-24     Chapter 22;

 2-1                       (D)  student admissions under Section 25.001;

 2-2                       (E)  school attendance under Sections 25.085,

 2-3     25.086, and 25.087;

 2-4                       (F)  inter-district or inter-county transfers of

 2-5     students under Subchapter B, Chapter 25;

 2-6                       (G)  elementary class size limits under Section

 2-7     25.112, in the case of any campus in the district that is

 2-8     considered low-performing under Section 39.131(b);

 2-9                       (H)  high school graduation under Section 28.025;

2-10                       (I)  special education programs under Subchapter

2-11     A, Chapter 29;

2-12                       (J)  bilingual education under Subchapter B,

2-13     Chapter 29;

2-14                       (K)  prekindergarten programs under Subchapter E,

2-15     Chapter 29;

2-16                       (L)  safety provisions relating to the

2-17     transportation of students under Sections 34.002, 34.003, 34.004,

2-18     and 34.008;

2-19                       (M)  computation and distribution of state aid

2-20     under Chapters 31, 42, and 43;

2-21                       (N)  extracurricular activities under Section

2-22     33.081;

2-23                       (O)  health and safety under Chapter 38;

2-24                       (P)  public school accountability under

2-25     Subchapters B, C, D, and G, Chapter 39;

2-26                       (Q)  [equalized wealth under Chapter 41;]

2-27                       [(R)]  a bond or other obligation or tax rate

 3-1     under Chapters 42, 43, and 45; and

 3-2                       (R) [(S)]  purchasing under Chapter 44.

 3-3           SECTION 3.  Section 12.029(b), Education Code, is amended to

 3-4     read as follows:

 3-5           (b)  If [Except as provided by Subchapter H, Chapter 41, if]

 3-6     two or more school districts having different status, one of  which

 3-7     is home-rule school district status, consolidate into a single

 3-8     district, the petition under Section 13.003 initiating the

 3-9     consolidation must state the status for the consolidated district.

3-10     The ballot shall be printed to permit voting for or against the

3-11     proposition:  "Consolidation of (names of school districts) into a

3-12     single school district governed as (status of school district

3-13     specified in the petition)."

3-14           SECTION 4.  Section 21.402(b), Education Code, is amended to

3-15     read as follows:

3-16           (b)  Not later than June 1 of each year, the commissioner

3-17     shall determine the amount appropriated for purposes of Chapter 42

3-18     for the state fiscal year beginning September 1.  The commissioner

3-19     shall exclude from the determination[:]

3-20                 [(1)]  amounts designated solely for use in connection

3-21     with school facilities or for payment of principal of and interest

3-22     on bonds[; and]

3-23                 [(2)  local funds received under Subchapter D, Chapter

3-24     41].

3-25           SECTION 5.  Section 42.252(e), Education Code, is amended to

3-26     read as follows:

3-27           (e)  The commissioner shall hear appeals from school

 4-1     districts that have experienced a rapid decline in tax base used in

 4-2     calculating the local fund assignment, exceeding four percent of

 4-3     the preceding year, that is beyond the control of the board of

 4-4     trustees of the district.  The commissioner may adjust the

 4-5     district's taxable values for local fund assignment purposes for

 4-6     such losses in value exceeding four percent and thereby adjust the

 4-7     local fund assignment to reflect the local current year taxable

 4-8     value.  The decision of the commissioner is final.  An adjustment

 4-9     does not affect the local fund assignment of any other school

4-10     district.  [This subsection applies to determinations by the

4-11     commissioner in identifying districts with wealth per student

4-12     exceeding the equalized wealth level pursuant to Section 41.004.]

4-13           SECTION 6.  (a)  This Act takes effect September 1, 1997, but

4-14     only if the General Appropriations Act enacted by the 75th

4-15     Legislature, Regular Session, 1997, appropriates to the Texas

4-16     Education Agency, in addition to the amounts that would be

4-17     appropriated if Chapter 41, Education Code, were not repealed, an

4-18     amount sufficient to replace the sum of:

4-19                 (1)  amounts projected to be received from school

4-20     districts for the purchase of attendance credits as provided by

4-21     Subchapter D, Chapter 41, Education Code; and

4-22                 (2)  amounts projected to be paid by school districts

4-23     to educate students residing in other districts as provided by

4-24     Subchapter E, Chapter 41, Education Code.

4-25           (b)  If a sufficient amount is not appropriated to the Texas

4-26     Education Agency as provided by Subsection (a) of this section,

4-27     this Act has no effect.

 5-1           SECTION 7.  The importance of this legislation and the

 5-2     crowded condition of the calendars in both houses create an

 5-3     emergency and an imperative public necessity that the

 5-4     constitutional rule requiring bills to be read on three several

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