R E S O L U T I O N

 1-1           BE IT RESOLVED by the House of Representatives of the State

 1-2     of Texas, 75th Legislature, Regular Session, 1997, That House Rule

 1-3     13, Section 9(a), be suspended in part as provided by House Rule

 1-4     13, Section 9(f), to enable the conference committee appointed to

 1-5     resolve the differences on Senate Bill No. 1873 to consider and

 1-6     take action on the following:

 1-7           (1)  House Rule 13, Section 9(a)(4), is suspended to permit

 1-8     the committee to amend Section 29.008(b), Education Code, to read

 1-9     as follows:

1-10           (b)  Except as provided by Subsection (c), costs of an

1-11     approved contract for residential placement may be paid from a

1-12     combination of federal, state, and local funds.  The local share of

1-13     the total contract cost for each student is that portion of the

1-14     local tax effort that exceeds the district's local fund assignment

1-15     under Section 42.252, divided by the average daily attendance in

1-16     the district.  If the contract involves a private facility, the

1-17     state share of the total contract cost is that amount remaining

1-18     after subtracting the local share.  If the contract involves a

1-19     public facility, the state share is that amount remaining after

1-20     subtracting the local share from the portion of the contract that

1-21     involves the costs of instructional and related services.  For

1-22     purposes of this subsection, "local tax effort" means the total

1-23     amount of money generated by taxes imposed for debt service and

1-24     maintenance and operation less any amounts paid into a tax

 2-1     increment fund under  Chapter 311, Tax Code.

 2-2           Explanation:  This change is necessary to remove taxes paid

 2-3     by a school district into a tax increment fund from the computation

 2-4     of the district's local share of a residential placement contract

 2-5     for a special education student.

 2-6           (2)  House Rule 13, Section 9(a)(4), is suspended to permit

 2-7     the committee to add Section 30.003(h), Education Code, to read as

 2-8     follows:

 2-9           (h)  For the 1998-1999 state fiscal biennium, the

2-10     commissioner shall transfer from the Foundation School Program to

2-11     the Texas School for the Blind and Visually Impaired and the Texas

2-12     School for the Deaf the amount necessary to reimburse each school

2-13     for the decrease resulting from H.B. No. 4, Acts of the 75th

2-14     Legislature, Regular Session, 1997, in a school district's local

2-15     share of the cost of a student's education at the school for the

2-16     1997-1998 or 1998-1999 school year.  This subsection expires

2-17     September 1, 1999.

2-18           Explanation:  This change is necessary to allow the

2-19     commissioner of education to transfer state funds to the Texas

2-20     School for the Blind and Visually Impaired and the Texas School for

2-21     the Deaf to offset reductions in local funds that those schools may

2-22     incur because of the increased residential homestead exemption

2-23     proposed by H.J.R. No. 4 and H.B. No. 4.

2-24           (3)  House Rule 13, Section 9(a)(4), is suspended to permit

2-25     the committee to amend Section 41.002(f), Education Code, to read

2-26     as follows:

2-27           (f)  For purposes of Subsection [Subsections (d) and] (e), a

 3-1     school district's effective tax rate is determined by dividing  the

 3-2     total amount of taxes collected by the district for the applicable

 3-3     school year less any amounts paid into a tax increment fund under

 3-4     Chapter 311, Tax Code, by the quotient of the district's taxable

 3-5     value of  property, as determined under Subchapter M, Chapter 403,

 3-6     Government Code, divided by 100.  This subsection expires September

 3-7     1, 2000 [1998].

 3-8           Explanation:  This change is necessary to remove taxes paid

 3-9     by a school district into a tax increment fund from the computation

3-10     of the district's effective tax rate for purposes of the

3-11     "hold-harmless" provision of Chapter 41, Education Code.

3-12           (4)  House Rule 13, Sections 9(a)(1), (3), and (4) are

3-13     suspended to permit the committee to amend Section 41.093,

3-14     Education Code, to read as follows:

3-15           Sec. 41.093.  COST.  (a)  The cost of each credit is an

3-16     amount equal to the greater of:

3-17                 (1)  the amount of the district's maintenance and

3-18     operations [total] tax revenue per student in weighted average

3-19     daily  attendance for the school year for which the contract is

3-20     executed; or

3-21                 (2)  the amount of the statewide district average of

3-22     maintenance and operations [total] tax revenue per student in

3-23     weighted average daily attendance for the school year preceding the

3-24     school year for which the contract is executed.

3-25           (b)  For purposes of this section, a school district's

3-26     maintenance and operations tax revenue does not include any amounts

3-27     paid into a tax increment fund under Chapter 311, Tax Code.

 4-1           Explanation:  This change is necessary to avoid conflicting

 4-2     language in Section 41.093, Education Code, as amended by S.B. No.

 4-3     1873 and as amended by H.B. No. 4, and to remove taxes paid by a

 4-4     school district into a tax increment fund from the computation of

 4-5     the district's cost of an attendance credit under Subchapter D,

 4-6     Chapter 41, Education Code.

 4-7           (5)  House Rule 13, Section 9(a)(4), is suspended to permit

 4-8     the committee to amend Section 41.097(a), Education Code, to read

 4-9     as follows:

4-10           (a)  The total amount required under Section 41.093 for a

4-11     district to purchase attendance credits under this  subchapter for

4-12     any school year is reduced by an amount equal to the product of the

4-13     district's costs under Section 6.06, Tax Code, for the central

4-14     appraisal district in which it participates multiplied by a

4-15     percentage that is computed by dividing the total amount required

4-16     under Section 41.093 by the total amount of taxes imposed in the

4-17     district for that year less any amounts paid into a tax increment

4-18     fund under Chapter 311, Tax Code.

4-19           Explanation:  This change is necessary to remove taxes paid

4-20     by a school district into a tax increment fund from the computation

4-21     of  the credit for appraisal district costs in the district's cost

4-22     of an attendance credit under Subchapter D, Chapter 41, Education

4-23     Code.

4-24           (6)  House Rule 13, Section 9(a)(4), is suspended to permit

4-25     the committee to amend Section 41.099, Education Code, to read as

4-26     follows:

4-27           Sec. 41.099. LIMITATION.  (a)  Sections 41.002(e), 41.094,

 5-1     41.097, and 41.098 apply only to a district that:

 5-2                 (1)  executes an agreement to purchase all attendance

 5-3     credits necessary to reduce the district's wealth per student to

 5-4     the equalized wealth level; [or]

 5-5                 (2)  executes an agreement to purchase attendance

 5-6     credits and an agreement under Subchapter E  to contract for the

 5-7     education of nonresident students who transfer to and are educated

 5-8     in the district but who are not charged tuition; or

 5-9                 (3)  executes an agreement under Subchapter E to

5-10     contract for the education of nonresident students:

5-11                       (A)  to an extent that does not provide more than

5-12     10 percent of the reduction in wealth per student required for the

5-13     district to achieve a wealth per student that is equal to or less

5-14     than the equalized wealth level; and

5-15                       (B)  under which all revenue paid by the district

5-16     to other districts, in excess of the reduction in state aid that

5-17     results from counting the weighted average daily attendance of the

5-18     students served in the contracting district, is required to be used

5-19     for funding a consortium of at least three districts in a county

5-20     with a population of less than 40,000 that is formed to support a

5-21     technology initiative.

5-22           (b)  A district that executes an agreement under Subsection

5-23     (a)(3) must pay full market value for any good or service the

5-24     district obtains through the consortium.

5-25           Explanation:  This change is necessary to permit districts

5-26     that participate in certain technology consortiums to receive

5-27     certain benefits in connection with the purchase of attendance

 6-1     credits under Subchapter D, Chapter 41, Education Code.

 6-2           (7)  House Rule 13, Section 9(a)(1), is suspended to permit

 6-3     the committee to add Section 42.007(c), Education Code, to read as

 6-4     follows:

 6-5           (c)  The funding elements must include:

 6-6                 (1)  a basic allotment for the purposes of Section

 6-7     42.101 that, when combined with the guaranteed yield component

 6-8     provided by Subchapter F, represents the cost per student of a

 6-9     regular education program that meets all mandates of law and

6-10     regulation;

6-11                 (2)  adjustments designed to reflect the variation in

6-12     known resource costs and costs of education beyond the control of

6-13     school districts;

6-14                 (3)  appropriate program cost differentials and other

6-15     funding elements for the programs authorized under Subchapter C,

6-16     with the program funding level expressed as dollar amounts and as

6-17     weights applied to the adjusted basic allotment for the appropriate

6-18     year;

6-19                 (4)  the maximum guaranteed level of qualified state

6-20     and local funds per student for the purposes of Subchapter F;

6-21                 (5)  the enrichment and facilities tax rate under

6-22     Subchapter F;

6-23                 (6)  the computation of students in weighted average

6-24     daily attendance under Section 42.302; and

6-25                 (7)  the amount to be appropriated for the school

6-26     facilities assistance program under Chapter 46.

6-27           Explanation:  This change is necessary to conform Section

 7-1     42.007(c), Education Code, to Chapters 42 and 46, Education Code,

 7-2     as amended and added by H.B. No. 4.

 7-3           (8)  House Rule 13, Sections 9(a)(1) and (4), are suspended

 7-4     to permit the committee to amend Section 42.302(b), Education Code,

 7-5     to read as follows:

 7-6           (b)  In computing the district enrichment and facilities tax

 7-7     rate of a school district, the total amount of taxes collected by

 7-8     the school district does not include the amount of:

 7-9                 (1)  the district's local fund assignment under Section

7-10     42.252; [or]

7-11                 (2)  taxes collected to pay the local share of the cost

7-12     of an instructional facility for which the district receives state

7-13     assistance under Chapter 46 [Subchapter H]; or

7-14                 (3)  taxes paid into a tax increment fund under Chapter

7-15     311, Tax Code.

7-16           Explanation:  This change is necessary to conform Section

7-17     42.302(b)(2), Education Code, to Chapters 42 and 46, Education

7-18     Code, as amended and added by H.B. No. 4, and to remove taxes paid

7-19     by a school district into a tax increment fund from the computation

7-20     of the district's effective tax rate for purposes of Tier 2 of the

7-21     Foundation School Program.

7-22           (9)  House Rule 13, Section 9(a)(4), is suspended to permit

7-23     the committee to add Section 11.13(s), Tax Code, to read as

7-24     follows:

7-25           (s)  Notwithstanding Subsection (n), an exemption under that

7-26     subsection for the 1997 tax year adopted by the board of trustees

7-27     of a school district before July 1, 1997, is valid.  This

 8-1     subsection expires January 1, 1999.

 8-2           Explanation:  This change is necessary to permit the board of

 8-3     trustees of a school district to adopt an optional residence

 8-4     homestead exemption for the 1997 tax year after May 1, 1997, which

 8-5     is the date by which the exemption must be adopted under Section

 8-6     11.13(n), Tax Code.

 8-7           (10)  House Rule 13, Section 9(a)(4), is suspended to permit

 8-8     the committee to repeal Section 42.351, Education Code.

 8-9           Explanation:  This change is necessary to repeal the

8-10     requirement that the State Board of Education establish and update

8-11     a statewide inventory of school facilities.

8-12           (11)  House Rule 13, Section 9(a)(4), is suspended to permit

8-13     the committee to add SECTION 31 to read as follows:

8-14           SECTION 31.  The amendment by this Act of Section 42.101,

8-15     Education Code, does not affect the change in the basic allotment

8-16     under that section made by H.B. No. 4, Acts of the 75th

8-17     Legislature, Regular Session, 1997.

8-18           Explanation:  This change is necessary to avoid conflicting

8-19     language in Section 42.101, Education Code, as amended by S.B. No.

8-20     1873 and H.B. No. 4.

8-21           (12)  House Rule 13, Sections 9(a)(1) and (4), are suspended

8-22     to permit the committee to add SECTION 32 to read as follows:

8-23           SECTION 32.  (a)  Except as provided by Subsection (b) of

8-24     this section, this Act takes effect September 1, 1997.

8-25           (b)  Section 6 of this Act takes effect September 1, 1997,

8-26     but only if the constitutional amendment proposed by H.J.R. No. 4,

8-27     75th Legislature, Regular Session, is approved by the voters.  If

 9-1     the proposed constitutional amendment is not approved by the

 9-2     voters, Section 6 of this Act has no effect.

 9-3           Explanation:  This change is necessary to make the addition

 9-4     of Section 30.003(h), Education Code, contingent on adoption of the

 9-5     constitutional amendment proposed by H.J.R. No. 4.

                                                                    Hochberg

                                             _______________________________

                                                   Speaker of the House

               I certify that H.R. No. 1352 was adopted by the House on June

         1, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House