By Bivins                                              S.R. No. 993

         75R17481 ESH-D                           

                                 R E S O L U T I O N

 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 Section 29.008(b), Education Code, to read as

 1-8     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

1-24     increment fund under Chapter 311, Tax Code.

 2-1           Explanation:  This change is necessary to remove taxes paid

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

 2-3     of the district's local share of a residential placement contract

 2-4     for a special education student.

 2-5           (2)  Senate Rule 12.03(4) is suspended to permit the

 2-6     committee to add Section 30.003(h), Education Code, to read as

 2-7     follows:

 2-8           (h)  For the 1998-1999 state fiscal biennium, the

 2-9     commissioner shall transfer from the Foundation School Program to

2-10     the Texas School for the Blind and Visually Impaired and the Texas

2-11     School for the Deaf the amount necessary to reimburse each school

2-12     for the decrease resulting from H.B. No. 4, Acts of the 75th

2-13     Legislature, Regular Session, 1997, in a school district's local

2-14     share of the cost of a student's education at the school for the

2-15     1997-1998 or 1998-1999 school year.  This subsection expires

2-16     September 1, 1999.

2-17           Explanation:  This change is necessary to allow the

2-18     commissioner of education to transfer state funds to the Texas

2-19     School for the Blind and Visually Impaired and the Texas School for

2-20     the Deaf to offset reductions in local funds that those schools may

2-21     incur because of the increased residential homestead exemption

2-22     proposed by H.J.R. No. 4 and H.B. No. 4.

2-23           (3)  Senate Rule 12.03(4) is suspended to permit the

2-24     committee to amend Section 41.002(f), Education Code, to read as

2-25     follows:

2-26           (f)  For purposes of Subsection [Subsections (d) and] (e), a

2-27     school district's effective tax rate is determined by dividing the

 3-1     total amount of taxes collected by the district for the applicable

 3-2     school year less any amounts paid into a tax increment fund under

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

 3-4     value of  property, as determined under Subchapter M, Chapter 403,

 3-5     Government Code, divided by 100.  This subsection expires September

 3-6     1, 2000 [1998].

 3-7           Explanation:  This change is necessary to remove taxes paid

 3-8     by a school district into a tax increment fund from the computation

 3-9     of the district's effective tax rate for purposes of the

3-10     "hold-harmless" provision of Chapter 41, Education Code.

3-11           (4)  Senate Rules 12.03(1), (3), and (4) are suspended to

3-12     permit the committee to amend Section 41.093, Education Code, to

3-13     read as follows:

3-14           Sec. 41.093.  COST.  (a)  The cost of each credit is an

3-15     amount equal to the greater of:

3-16                 (1)  the amount of the district's maintenance and

3-17     operations [total] tax revenue per student in weighted average

3-18     daily  attendance for the school year for which the contract is

3-19     executed; or

3-20                 (2)  the amount of the statewide district average of

3-21     maintenance and operations [total] tax revenue per student in

3-22     weighted average daily attendance for the school year preceding the

3-23     school year for which the contract is executed.

3-24           (b)  For purposes of this section, a school district's

3-25     maintenance and operations tax revenue does not include any amounts

3-26     paid into a tax increment fund under Chapter 311, Tax Code.

3-27           Explanation:  This change is necessary to avoid conflicting

 4-1     language in Section 41.093, Education Code, as amended by S.B. No.

 4-2     1873 and as amended by H.B. No. 4, and to remove taxes paid by a

 4-3     school district into a tax increment fund from the computation of

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

 4-5     Chapter 41, Education Code.

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

 4-7     committee to amend Section 41.097(a), Education Code, to read as

 4-8     follows:

 4-9           (a)  The total amount required under Section 41.093 for a

4-10     district to purchase attendance credits under this  subchapter for

4-11     any school year is reduced by an amount equal to the product of the

4-12     district's costs under Section 6.06, Tax Code, for the central

4-13     appraisal district in which it participates multiplied by a

4-14     percentage that is computed by dividing the total amount required

4-15     under Section 41.093 by the total amount of taxes imposed in the

4-16     district for that year less any amounts paid into a tax increment

4-17     fund under Chapter 311, Tax Code.

4-18           Explanation:  This change is necessary to remove taxes paid

4-19     by a school district into a tax increment fund from the computation

4-20     of  the credit for appraisal district costs in the district's cost

4-21     of an attendance credit under Subchapter D, Chapter 41, Education

4-22     Code.

4-23           (6)  Senate Rule 12.03(4) is suspended to permit the

4-24     committee to amend Section 41.099, Education Code, to read as

4-25     follows:

4-26           Sec. 41.099.  LIMITATION.  (a)  Sections 41.002(e), 41.094,

4-27     41.097, and 41.098 apply only to a district that:

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

 5-2     credits necessary to reduce the district's wealth per student to

 5-3     the equalized wealth level; [or]

 5-4                 (2)  executes an agreement to purchase attendance

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

 5-6     education of nonresident students who transfer to and are educated

 5-7     in the district but who are not charged tuition; or

 5-8                 (3)  executes an agreement under Subchapter E to

 5-9     contract for the education of nonresident students:

5-10                       (A)  to an extent that does not provide more than

5-11     10 percent of the reduction in wealth per student required for the

5-12     district to achieve a wealth per student that is equal to or less

5-13     than the equalized wealth level; and

5-14                       (B)  under which all revenue paid by the district

5-15     to other districts, in excess of the reduction in state aid that

5-16     results from counting the weighted average daily attendance of the

5-17     students served in the contracting district, is required to be used

5-18     for funding a consortium of at least three districts in a county

5-19     with a population of less than 40,000 that is formed to support a

5-20     technology initiative.

5-21           (b)  A district that executes an agreement under Subsection

5-22     (a)(3) must pay full market value for any good or service the

5-23     district obtains through the consortium.

5-24           Explanation:  This change is necessary to permit districts

5-25     that participate in certain technology consortiums to receive

5-26     certain benefits in connection with the purchase of attendance

5-27     credits under Subchapter D, Chapter 41, Education Code.

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

 6-2     committee to add Section 42.007(c), Education Code, to read as

 6-3     follows:

 6-4           (c)  The funding elements must include:

 6-5                 (1)  a basic allotment for the purposes of Section

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

 6-7     provided by Subchapter F, represents the cost per student of a

 6-8     regular education program that meets all mandates of law and

 6-9     regulation;

6-10                 (2)  adjustments designed to reflect the variation in

6-11     known resource costs and costs of education beyond the control of

6-12     school districts;

6-13                 (3)  appropriate program cost differentials and other

6-14     funding elements for the programs authorized under Subchapter C,

6-15     with the program funding level expressed as dollar amounts and as

6-16     weights applied to the adjusted basic allotment for the appropriate

6-17     year;

6-18                 (4)  the maximum guaranteed level of qualified state

6-19     and local funds per student for the purposes of Subchapter F;

6-20                 (5)  the enrichment and facilities tax rate under

6-21     Subchapter F;

6-22                 (6)  the computation of students in weighted average

6-23     daily attendance under Section 42.302; and

6-24                 (7)  the amount to be appropriated for the school

6-25     facilities assistance program under Chapter 46.

6-26           Explanation:  This change is necessary to conform Section

6-27     42.007(c), Education Code, to Chapters 42 and 46, Education Code,

 7-1     as amended and added by H.B. No. 4.

 7-2           (8)  Senate Rules 12.03(1) and (4) are suspended to permit

 7-3     the committee to amend Section 42.302(b), Education Code, to read

 7-4     as follows:

 7-5           (b)  In computing the district enrichment and facilities tax

 7-6     rate of a school district, the total amount of taxes collected by

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

 7-8                 (1)  the district's local fund assignment under Section

 7-9     42.252; [or]

7-10                 (2)  taxes collected to pay the local share of the cost

7-11     of an instructional facility for which the district receives state

7-12     assistance under Chapter 46 [Subchapter H]; or

7-13                 (3)  taxes paid into a tax increment fund under Chapter

7-14     311, Tax Code.

7-15           Explanation:  This change is necessary to conform Section

7-16     42.302(b)(2), Education Code, to Chapters 42 and 46, Education

7-17     Code, as amended by H.B. No. 4, and to remove taxes paid by a

7-18     school district into a tax increment fund from the computation of

7-19     the district's effective tax rate for purposes of Tier 2 of the

7-20     Foundation School Program.

7-21           (9)  Senate Rule 12.03(4) is suspended to permit the

7-22     committee to add Section 11.13(s), Tax Code, to read as follows:

7-23           (s)  Notwithstanding Subsection (n), an exemption under that

7-24     subsection for the 1997 tax year adopted by the board of trustees

7-25     of a school district before July 1, 1997, is valid.  This

7-26     subsection expires January 1, 1999.

7-27           Explanation:  This change is necessary to permit the board of

 8-1     trustees of a school district to adopt an optional residence

 8-2     homestead exemption for the 1997 tax year after May 1, 1997, which

 8-3     is the date by which the exemption must be adopted under Section

 8-4     11.13(n), Tax Code.

 8-5           (10)  Senate Rule 12.03(4) is suspended to permit the

 8-6     committee to repeal Section 42.351, Education Code.

 8-7           Explanation:  This change is necessary to repeal the

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

 8-9     a statewide inventory of school facilities.

8-10           (11)  Senate Rule 12.03(4) is suspended to permit the

8-11     committee to add SECTION 31 to read as follows:

8-12           SECTION 31.  The amendment by this Act of Section 42.101,

8-13     Education Code, does not affect the change in the basic allotment

8-14     under that section made by H.B. No. 4, Acts of the 75th

8-15     Legislature, Regular Session, 1997.

8-16           Explanation:  This change is necessary to avoid conflicting

8-17     language in Section 42.101, Education Code, as amended by S.B. No.

8-18     1873 and H.B. No. 4.

8-19           (12)  Senate Rules 12.03(1) and (4) are suspended to permit

8-20     the committee to add SECTION 32 to read as follows:

8-21           SECTION 32.  (a)  Except as provided by Subsection (b) of

8-22     this section, this Act takes effect September 1, 1997.

8-23           (b)  Section 6 of this Act takes effect September 1, 1997,

8-24     but only if the constitutional amendment proposed by H.J.R. No. 4,

8-25     75th Legislature, Regular Session, is approved by the voters.  If

8-26     the proposed constitutional amendment is not approved by the

8-27     voters, Section 6 of this Act has no effect.

 9-1           Explanation:  This change is necessary to make the addition

 9-2     of Section 30.003(h), Education Code, contingent on adoption of the

 9-3     constitutional amendment proposed by H.J.R. No. 4.