By:  Bivins                                            S.R. No. 993

                                  SENATE RESOLUTION

 1-1           BE IT RESOLVED by the Senate of the State of Texas, 75th

 1-2     Legislature, Regular Session, 1997, That Senate Rule 12.03 be

 1-3     suspended in part as provided by Senate Rule 12.08 to enable the

 1-4     conference committee appointed to resolve the differences on Senate

 1-5     Bill No. 1873 to consider and take action on the following:

 1-6           (1)  Senate Rule 12.03(4) is suspended to permit the

 1-7     committee to amend Subsection (b), Section 29.008, Education Code,

 1-8     to read as follows:

 1-9           (b)  Except as provided by Subsection (c), costs of an

1-10     approved contract for residential placement may be paid from a

1-11     combination of federal, state, and local funds.  The local share of

1-12     the total contract cost for each student is that portion of the

1-13     local tax effort that exceeds the district's local fund assignment

1-14     under Section 42.252, divided by the average daily attendance in

1-15     the district.  If the contract involves a private facility, the

1-16     state share of the total contract cost is that amount remaining

1-17     after subtracting the local share.  If the contract involves a

1-18     public facility, the state share is that amount remaining after

1-19     subtracting the local share from the portion of the contract that

1-20     involves the costs of instructional and related services.  For

1-21     purposes of this subsection, "local tax effort" means the total

1-22     amount of money generated by taxes imposed for debt service and

1-23     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)  Senate Rule 12.03(4) is suspended to permit the

 2-7     committee to add Subsection (h) to Section 30.003, Education Code,

 2-8     to read as 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 House Joint Resolution No. 4 and House Bill No. 4.

2-24           (3)  Senate Rule 12.03(4) is suspended to permit the

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

 3-1     to read as follows:

 3-2           (f)  For purposes of Subsection [Subsections (d) and] (e), a

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

 3-4     total amount of taxes collected by the district for the applicable

 3-5     school year less any amounts paid into a tax increment fund under

 3-6     Chapter 311, Tax Code, by the quotient of the district's taxable

 3-7     value of property, as determined under Subchapter M, Chapter 403,

 3-8     Government Code, divided by 100.  This subsection expires September

 3-9     1, 2000 [1998].

3-10           Explanation:  This change is necessary to remove taxes paid

3-11     by a school district into a tax increment fund from the computation

3-12     of the district's effective tax rate for purposes of the

3-13     "hold-harmless" provision of Chapter 41, Education Code.

3-14           (4)  Senate Rules 12.03(1), (3), and (4) are suspended to

3-15     permit the committee to amend Section 41.093, Education Code, to

3-16     read as follows:

3-17           Sec. 41.093.  COST.  (a)  The cost of each credit is an

3-18     amount equal to the greater of:

3-19                 (1)  the amount of the district's maintenance and

3-20     operations [total] tax revenue per student in weighted average

3-21     daily attendance for the school year for which the contract is

3-22     executed; or

3-23                 (2)  the amount of the statewide district average of

3-24     maintenance and operations [total] tax revenue per student in

3-25     weighted average daily attendance for the school year preceding the

 4-1     school year for which the contract is executed.

 4-2           (b)  For purposes of this section, a school district's

 4-3     maintenance and operations tax revenue does not include any amounts

 4-4     paid into a tax increment fund under Chapter 311, Tax Code.

 4-5           Explanation:  This change is necessary to avoid conflicting

 4-6     language in Section 41.093, Education Code, as amended by Senate

 4-7     Bill No. 1873 and as amended by House Bill No. 4, and to remove

 4-8     taxes paid by a school district into a tax increment fund from the

 4-9     computation of the district's cost of an attendance credit under

4-10     Subchapter D, Chapter 41, Education Code.

4-11           (5)  Senate Rule 12.03(4) is suspended to permit the

4-12     committee to amend Subsection (a), Section 41.097, Education Code,

4-13     to read as follows:

4-14           (a)  The total amount required under Section 41.093 for a

4-15     district to purchase attendance credits under this subchapter for

4-16     any school year is reduced by an amount equal to the product of the

4-17     district's costs under Section 6.06, Tax Code, for the central

4-18     appraisal district in which it participates multiplied by a

4-19     percentage that is computed by dividing the total amount required

4-20     under Section 41.093 by the total amount of taxes imposed in the

4-21     district for that year less any amounts paid into a tax increment

4-22     fund under Chapter 311, Tax Code.

4-23           Explanation:  This change is necessary to remove taxes paid

4-24     by a school district into a tax increment fund from the computation

4-25     of the credit for appraisal district costs in the district's cost

 5-1     of an attendance credit under Subchapter D, Chapter 41, Education

 5-2     Code.

 5-3           (6)  Senate Rule 12.03(4) is suspended to permit the

 5-4     committee to amend Section 41.099, Education Code, to read as

 5-5     follows:

 5-6           Sec. 41.099.  LIMITATION. (a)  Sections 41.002(e), 41.094,

 5-7     41.097, and 41.098 apply only to a district that:

 5-8                 (1)  executes an agreement to purchase all attendance

 5-9     credits necessary to reduce the district's wealth per student to

5-10     the equalized wealth level; [or]

5-11                 (2)  executes an agreement to purchase attendance

5-12     credits and an agreement under Subchapter E to contract for the

5-13     education of nonresident students who transfer to and are educated

5-14     in the district but who are not charged tuition; or

5-15                 (3)  executes an agreement under Subchapter E to

5-16     contract for the education of nonresident students:

5-17                       (A)  to an extent that does not provide more than

5-18     10 percent of the reduction in wealth per student required for the

5-19     district to achieve a wealth per student that is equal to or less

5-20     than the equalized wealth level; and

5-21                       (B)  under which all revenue paid by the district

5-22     to other districts, in excess of the reduction in state aid that

5-23     results from counting the weighted average daily attendance of the

5-24     students served in the contracting district, is required to be used

5-25     for funding a consortium of at least three districts in a county

 6-1     with a population of less than 40,000 that is formed to support a

 6-2     technology initiative.

 6-3           (b)  A district that executes an agreement under Subsection

 6-4     (a)(3) must pay full market value for any good or service the

 6-5     district obtains through the consortium.

 6-6           Explanation:  This change is necessary to permit districts

 6-7     that participate in certain technology consortiums to receive

 6-8     certain benefits in connection with the purchase of attendance

 6-9     credits under Subchapter D, Chapter 41, Education Code.

6-10           (7)  Senate Rule 12.03(1) is suspended to permit the

6-11     committee to add Subsection (c), Section 42.007, Education Code, to

6-12     read as follows:

6-13           (c)  The funding elements must include:

6-14                 (1)  a basic allotment for the purposes of Section

6-15     42.101 that, when combined with the guaranteed yield component

6-16     provided by Subchapter F, represents the cost per student of a

6-17     regular education program that meets all mandates of law and

6-18     regulation;

6-19                 (2)  adjustments designed to reflect the variation in

6-20     known resource costs and costs of education beyond the control of

6-21     school districts;

6-22                 (3)  appropriate program cost differentials and other

6-23     funding elements for the programs authorized under Subchapter C,

6-24     with the program funding level expressed as dollar amounts and as

6-25     weights applied to the adjusted basic allotment for the appropriate

 7-1     year;

 7-2                 (4)  the maximum guaranteed level of qualified state

 7-3     and local funds per student for the purposes of Subchapter F;

 7-4                 (5)  the enrichment and facilities tax rate under

 7-5     Subchapter F;

 7-6                 (6)  the computation of students in weighted average

 7-7     daily attendance under Section 42.302; and

 7-8                 (7)  the amount to be appropriated for the school

 7-9     facilities assistance program under Chapter 46.

7-10           Explanation:  This change is necessary to conform Subsection

7-11     (c), Section 42.007, Education Code, to Chapters 42 and 46,

7-12     Education Code, as amended and added by House Bill No. 4.

7-13           (8)  Senate Rules 12.03(1) and (4) are suspended to permit

7-14     the committee to amend Subsection (b), Section 42.302, Education

7-15     Code, to read as follows:

7-16           (b)  In computing the district enrichment and facilities tax

7-17     rate of a school district, the total amount of taxes collected by

7-18     the school district does not include the amount of:

7-19                 (1)  the district's local fund assignment under Section

7-20     42.252; [or]

7-21                 (2)  taxes collected to pay the local share of the cost

7-22     of an instructional facility for which the district receives state

7-23     assistance under Chapter 46; or

7-24                 (3)  taxes paid into a tax increment fund under Chapter

7-25     311, Tax Code [Subchapter H].

 8-1           Explanation:  This change is necessary to conform Subdivision

 8-2     (2), Subsection (b), Section 42.302, Education Code, to Chapters 42

 8-3     and 46, Education Code, as amended by House Bill No. 4, and to

 8-4     remove taxes paid by a school district into a tax increment fund

 8-5     from the computation of the district's effective tax rate for

 8-6     purposes of Tier 2 of the Foundation School Program.

 8-7           (9)  Senate Rule 12.03(4) is suspended to permit the

 8-8     committee to add Subsection (s), Section 11.13, Tax Code, to read

 8-9     as follows:

8-10           (s)  Notwithstanding Subsection (n), an exemption under that

8-11     subsection for the 1997 tax year adopted by the board of trustees

8-12     of a school district before July 1, 1997, is valid.  This

8-13     subsection expires January 1, 1999.

8-14           Explanation:  This change is necessary to permit the board of

8-15     trustees of a school district to adopt an optional residence

8-16     homestead exemption for the 1997 tax year after May 1, 1997, which

8-17     is the date by which the exemption must be adopted under Subsection

8-18     (n), Section 11.13, Tax Code.

8-19           (10)  Senate Rule 12.03(4) is suspended to permit the

8-20     committee to repeal Section 42.351, Education Code.

8-21           Explanation:  This change is necessary to repeal the

8-22     requirement that the State Board of Education establish and update

8-23     a statewide inventory of school facilities.

8-24           (11)  Senate Rule 12.03(4) is suspended to permit the

8-25     committee to add SECTION 31 to read as follows:

 9-1           SECTION 31.  The amendment by this Act of Section 42.101,

 9-2     Education Code, does not affect the change in the basic allotment

 9-3     under that section made by H.B. No. 4, Acts of the 75th

 9-4     Legislature, Regular Session, 1997.

 9-5           Explanation:  This change is necessary to avoid conflicting

 9-6     language in Section 42.101, Education Code, as amended by Senate

 9-7     Bill No. 1873 and House Bill No. 4.

 9-8           (12)  Senate Rules 12.03(1) and (4) are suspended to permit

 9-9     the committee to add SECTION 32 to read as follows:

9-10           SECTION 32.  (a)  Except as provided by Subsection (b) of

9-11     this section, this Act takes effect September 1, 1997.

9-12           (b)  Section 6 of this Act takes effect September 1, 1997,

9-13     but only if the constitutional amendment proposed by H.J.R. No. 4,

9-14     75th Legislature, Regular Session, 1997, is approved by the voters.

9-15     If the proposed constitutional amendment is not approved by the

9-16     voters, Section 6 of this Act has no effect.

9-17           Explanation:  This change is necessary to make the addition

9-18     of Subsection (h), Section 30.003, Education Code, contingent on

9-19     adoption of the constitutional amendment proposed by House Joint

9-20     Resolution No. 4.

9-21                                  ______________________________________

9-22                                          President of the Senate

9-23                                       I hereby certify that the above

9-24                                  Resolution was adopted by the Senate

9-25                                  on June 1, 1997, by the following

9-26                                  vote:  Yeas 29, Nays 2.

9-27                                  ______________________________________

9-28                                          Secretary of the Senate