HBA-MPM, NMO, DMD, S.B. 4 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 4
By: Bivins
Public Education
5/4/1999
Engrossed



BACKGROUND AND PURPOSE 

Current law regulates public school finance.  S.B. 4 is a comprehensive
school finance, property tax relief, teacher pay raise, omnibus package
which provides funds for students, teachers, local school districts, and
taxpayers.  


RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of education in
SECTION 6 (Section 42.158, Education Code), SECTION 20, SECTION 21 (Section
21.410, Education Code), and SECTION 22 (Section 25.039, Education Code);
to the comptroller of public accounts in SECTION 24 (Section 44.044,
Education Code); and to the State Board for Educator Certification in
SECTION 37, of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 41.002(a), Education Code,  to prohibit a school
district from having a wealth per student that exceeds $300,000, rather
than $280,000.  

SECTION 2. Amends Sections 41.002(b)-(f), Education Code, as follows:

(b)  Requires the commissioner of education (commissioner) to adjust, in
accordance with Section 42.2521, Education Code, the taxable values of a
school district that, due to factors beyond the control of the board of
trustees, experiences a rapid decline in the tax base used in calculating
taxable values in excess of four percent of the tax base used in the
preceding year.   

(c)  Prohibits the wealth per student that a school district may have after
exercising an option under Section 41.003(2) or (3) (Options to Achieve
Equalized Wealth Level), Education Code, from being less than the amount
needed to maintain state and local revenue in an amount equal to state and
local revenue per weighted student for maintenance and operation of the
district for the 1992-1993 school year adjusted in accordance with
Subsection (d), less the district's current year distribution per weighted
student from the available school fund, other than amounts distributed
under Chapter 31 (Textbooks), if the district actually levies a tax for
maintenance and operation of the district at a rate of $1.50 on the $100
valuation of taxable property, notwithstanding Subsection (a), in
accordance with a determination of the commissioner.  

(d)  Requires the commissioner to adjust the amount of a school district's
state and local revenue per weighted student for maintenance and operation
of the district for the 1992-1993 school year by multiplying the amount by
the quotient of the equalized wealth level divided by 280,000.  Deletes
text regarding amount of decline and money necessary to replace funds.
Makes conforming changes.  

(e)  Makes Subsection (c) inapplicable to a district to which this
subsection applies.  Deletes text establishing September 1, 2000 as the
expiration date of this subsection.  Makes conforming changes. 
 
(f)  Makes a conforming change.

SECTION 3.  Amends Section 42.101, Education Code, to provide that for each
student in average daily attendance a district is entitled to an allotment
of $2,435, rather than $2,387.  

SECTION 4.  Amends Subchapter B, Chapter 42, Education Code, by adding
Section 42.106, as follows: 

Sec. 42.106.  ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT OFFERING ALL GRADE
LEVELS.  Provides that the taxable value of property of a school district
that contracts for students residing in the district to be educated in
another district under Section 25.039(a) is adjusted by applying the
formula:  ADPV = DPV - (TN/.015).  Sets forth the definitions of "ADPV,"
"DPV," and "TN."  

SECTION 5.  Amends Section 42.155, Education Code, by amending Subsection
(d) and adding Subsection (k), as follows: 

(d)  Allows a district or county to apply for and on approval of the
commissioner receive additional amounts to be used for the transportation
of children would be subject to hazardous conditions, rather than hazardous
traffic, if they walked to school.  Redefines "hazardous condition." 

(k)  Prohibits a district or county from receiving an allotment for the
transportation of children under Subsection (d) who must walk along or
cross a deserted area or an area where the crime rate is high that exceeds
two percent of the district's or county's regular transportation allotment. 

SECTION 6.  Amends Subchapter C, Chapter 42C, Education Code, by adding
Section 42.158, effective September 1, 2000, as follows:  

Sec. 42.158. NEW INSTRUCTIONAL FACILITY ALLOTMENT. (a) Provides that a
school district is entitled to an additional allotment as provided by this
section for operational expenses associated with opening a new
instructional facility.  

(b)  Sets forth the amount of allotment for the first two years students
attend a new instructional facility.   

(c)  Provides that the number of additional students in average daily
attendance at a facility is the difference between the number of students
in average daily attendance in the current year at that facility and the
number of students in average daily attendance at that facility in the
preceding year.  

(d)  Prohibits the amount appropriated for allotments under this section
from exceeding $50 million in a school year.  Requires the commissioner to
reduce each district's allotment under this section in the manner provided
by Section 42.253(h) (Distribution of Foundation School Fund), Education
Code, if the total amount of allotments to which districts are entitled
under this section for a school year exceeds the amount appropriated for
allotments under this section.   

(e)  Authorizes the commissioner to adopt rules necessary to implement this
section.   

(f)  Defines "instructional facility."  

SECTION 7.  Amends Section 42.251(a), Education Code, to provide that the
sum of the tier one allotments, the guaranteed yield allotments under
Subchapter F (Guaranteed Yield Program), and the assistance provided under
the school facilities tier, rather than assistance program, under
Subchapter I, rather than Subchapter H, computed in accordance with this
chapter, constitute the total cost of the Foundation School Program.  
 
SECTION 8.  Amends Section 42.2511, Education Code, as follows:

Sec. 42.2511.  New title:  ADDITIONAL STATE AID FOR 1999-2000 AND 2000-2001
SCHOOL YEARS.  Provides that, notwithstanding any other provision of this
chapter, for the 1999-2000 and 2000-2001 school years, a school district is
entitled to a certain amount of additional state aid based on the
district's taxable value of property as provided under Subchapter M (Study
of School District Property Values), Chapter 403 (Comptroller of Public
Accounts), Government Code, rather than by Subsection (a), does not fully
compensate the district for ad valorem tax revenue lost due to increase in
the homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, Acts of the 75th Legislature,
Regular Session, 1997, and the additional limitation on tax increases under
Section 1-b(d), Article VIII, Texas Constitution, as proposed by H.J.R. No.
4, Acts of the 75th Legislature, Regular Session, 1997, rather than if the
increased exemption and additional limitation had been in effect for the
1996 tax year.  Provides that this section expires September 1, 2001,
rather than 1999.  Deletes text regarding the computation of state aid.  

SECTION 9. Amends Subchapter E, Chapter 42, Education Code, by adding
Section 42.2521, as follows:  

Sec. 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE OF PROPERTY.
(a) Authorizes the commissioner, for purposes of Chapter 41 (Equalized
Wealth Value), Education Code, and this chapter, to adjust the taxable
value of property in a school district that, due to factors beyond the
control of the board of trustees (board), experiences a rapid decline in
the tax base used in calculating taxable values in excess of four percent
of the tax base used in the preceding year. 

(b)  Authorizes the commissioner, to the extent money specifically
authorized to be used for that purpose is available, to adjust the
district's taxable values for such losses in value to reflect the local
current year taxable value.  Requires the commissioner, to the extent that
a sufficient amount of money is unavailable to fund all adjustments under
this section, to reduce adjustments in the manner provided in Section
42.253(h) (Distribution of Foundation School Fund), Education Code, so that
the total amount of adjustments equals the amount of money available to
fund the adjustments.   

(c)  Provides that the commissioner's decision under this section is final.
Requires the commissioner to first apply available funds to the purposes of
Subsection (a) and then to Subsection (b).  Provides that an adjustment
under Subsection (b) is contingent upon a determination by the commissioner
that sufficient funds are available for purposes of Subsection (a) for both
years of the current state fiscal biennium. 

SECTION 10.  Amends Section 42.253, Education Code, by amending Subsections
(a) and (c) and adding Subsection (e-1), as follows: 

(a) Requires the commissioner to determine, for each school year, the
amount of money to which a district is entitled under Subchapter I,
Education Code. 

(c) Makes a conforming change.

(e-1)  Requires the commissioner, for the 1999-2000 and 2000-2001 school
years, in accordance with rules the commissioner adopts, to recompute the
limit authorized under Subsection (e) for each school district receiving
assistance under Subchapter I, Education Code, based on taxes in connection
with which the district formerly received assistance under Subchapter F.
Provides that the commissioner's decision under this subsection is final
and may not be appealed.  Provides that this subsection expires September
1, 2001. 

SECTION 11. Amends Section 42.302, Education Code, effective September 1,
1999, to redefine "GL," "DTR," and "LR," for purposes of the formula set
forth under this section.  Provides that in computing the district
enrichment and facilities tax rate of a school district, the total amount
of taxes  collected by the school district does not include the amount of
taxes collected to pay the local share of debt service for which the
district receives state aid under Subchapter I. 

SECTION 12.  Amends Section 42.302(a), Education Code, effective September
1, 2000, to redefine "WADA" and "LR" for the purposes of the formula set
forth under this subsection. 

SECTION 13.  Amends Chapter 42, Education Code, by adding Subchapter I, as
follows: 

SUBCHAPTER I.  SCHOOL FACILITIES TIER

Sec. 42.501. ALLOTMENT.  (a)  Provides that each school district is
guaranteed a specific amount per student in state and local funds for each
cent of tax effort to pay the principal of and interest on eligible bonds.
Provides that the amount of state support, subject only to the maximum
amount under Section 42.502, Education Code, is determined by a certain
formula.  Defines "FTA," "FGL," "ADA," "FTR,' and "DPV" for purposes of
this formula.  
(b)  Prohibits the district facilities tax rate under Subsection (a) from
exceeding the rate that would be necessary for the current year, using
state funds under Subsection (a), to make payments of principal and
interest on the bonds for which the tax is pledged.  

(c)  Authorizes a district to levy a facilities tax at a rate higher than
the maximum rate for which it may receive state assistance under this
subchapter, to enable the district to collect local funds sufficient to pay
the district's share of debt service.  

(d)  Provides that bonds are eligible to be paid with state and local funds
under this subchapter under certain conditions.  

(e)  Prohibits the district from receiving aid in excess of the amount
that, when added to the district's local revenue for the school year,
equals the amount required to pay the principal of and interest on the
bonds, if the amount required is less than the district's audited debt
service collections for th 1998-1999 school year. 

(f)  Sets forth the protocol by which the commissioner shall distribute to
each district the amount of state assistance.  

Sec. 42.502.  LIMITATION ON FACILITIES TAX RATE.  Prohibits the district
facilities tax rate under Section 42.501, Education Code, from exceeding
$0.07 per $100 of valuation or a greater amount for any year provided by
appropriation.  

SECTION 14. Amends Section 46.003(a), Education Code, to redefine "ADA,"
"BTR," and "DPV." 

SECTION 15.  Amends Section 46.006, Education Code, as follows:

(b) Provides that a district's wealth per student is reduced for purposes
of this section if a district has had substantial student enrollment growth
in the preceding five-year period. Provides that the reduction is in
addition to any reduction under Subsection (a).  Provides that a district's
wealth per student is reduced by certain percentages, determined by the
enrollment growth rate of the district.  

(c)  Provides that a district's wealth per student is reduced by 10 percent
for purposes of this section if the district does not have any outstanding
debt at the time it applies for assistance. Provides that this reduction is
in addition to any reduction under Subsection (a) or (b) and is computed
before the district's wealth per student is reduced under those
subsections, if applicable. 

(d)  Redesignated from existing Subsection (a).  Makes conforming changes.

(e)  Redesignated from existing Subsection (b).  Makes no change.

 (f)  Redesignated from existing Subsection (c).  Makes no change.

(g)  Redesignated from existing Subsection (d).  Makes a conforming change.

SECTION 16.  Amends Subchapter B, Chapter 21, Education Code, by adding
Section 21.0481, as follows: 

Sec. 21.0481.  MASTER READING TEACHER CERTIFICATION.  Requires the State
Board for Educator Certification (board) to issue a master of reading
teacher certificate to each eligible person.  Sets forth the requirements
for a master reading teacher certification.  

SECTION 17. Amends Section 21.401, Education Code, to require an educator
employed under a 10-month contract to provide a minimum of 187 days of
service.  Deletes text regarding a certain formula used to determine the
number of days of service the employee is required to provide, as well as
the applicability of the formula to the 1999-2000 school year.  Makes
nonsubstantive changes.  

SECTION 18.  Amends Section 21.402, Education Code, by adding Subsections
(a-1) and (a-2), effective September 1, 1999, as follows: 

(a-1) Provides that notwithstanding Subsection (a), and except as provided
by Subsection (e), for the1999-2000 school year, a school district must pay
each classroom teacher or full-time librarian no less than the minimum
monthly salary based on the employee's level of experience.  Sets forth the
chart of proposed salary levels commensurate with years of experience. 

(a-2)  Provides that Subsection (a-1) and this subsection expire September
1, 2000. 

SECTION 19.  Amends Subsections (a), (b), and (c), Section 21.402,
Education Code, effective September 1, 2000, as follows: 

(a)  Modifies the formula set forth in this subsection, regarding the
minimum monthly salary a school district must pay each classroom teacher or
full-time librarian and sets forth the definition of "FS."  Deletes the
definition of "FSP" and "ADA."   

(b)  Requires the commissioner, no later than June 1 of each year, to
determine the amount of state and local funds per weighted student
available, for purposes of Subsection (a), to a district described by that
subsection for the following school year.  Deletes text requiring the
commissioner, no later than June 1 of each year, to determine the amount
appropriated for purposes of Chapter 42 (Foundation School Program),
Education Code, for the state fiscal year beginning September 1, and text
requiring the commissioner to exclude from the determination certain
amounts designated for certain purposes, as well as local funds. 

(c)  Sets forth the chart of salary factors per step.

SECTION 20.  (a)  Requires the commissioner to notify each school district,
as soon as practicable after passage of this Act, of the additional amount
of state funds to which the district is entitled. Requires the commissioner
to provide such information for the 2000-2001 school year no later than
March 1, 2000. Requires the commissioner, to the extent possible, to adjust
the 2000-2001 amount to take into consideration any adjustments found
necessary under Section 42.253 (Distribution of Foundation School Fund), to
the extent necessary to accurately reflect the amount of additional funds
available to the district.  Provides that a determination by the
commissioner under this section is final and may not be appealed.   

(b)  Requires each school district to use at least 60 percent of the full
amounts certified under this section to increase the salaries of classroom
teachers or full-time librarians to a certain amount.  Requires compliance
with the requirements of this subsection to be examined and audited as part
of the district annual audit under Section 44.008 (Annual Audit; Report),
Education Code.   

 (c)  Authorizes the commissioner to make rules for the implementation of
this section.  

SECTION 21. Amends Subchapter I, Chapter 21, Education Code, by adding
Section 21.410, as follows:  

Sec. 21.410.  MASTER READING TEACHER GRANT PROGRAM. (a) Requires the
commissioner to establish a master reading teacher grant program.   

(b)  Requires the commissioner to make grants to school districts and
open-enrollment charter schools from funds appropriated for that purpose to
pay stipends to selected certified master reading teachers teaching at
high-need campuses.   

(c)  Requires the commissioner to annually identify each high need campus
using specified criteria.  Requires the commissioner to also use the
criteria to rank campuses in order of greatest need.   

(d)  Authorizes a district or open-enrollment charter school to apply to
the commissioner for grants for each high-need campus identified by the
commissioner to be used  for purposes stated in this section.  Provides
that each grant is in the amount of $5,000 unless reduced. Requires the
commissioner to approve the application if the district or school follows a
certain application protocol and agrees to use each grant for a master
reaching teacher who holds specific credentials or a certain position with
respect to the teaching of reading.   

(e) Provides that a stipend under Subsection (d)(2) is in the amount of
$5,000, unless reduced under Subsection (g) or (i).   

(f) Requires the commissioner to adopt rules for the distribution of grants
to school districts and open-enrollment charter schools in years following
the year of the initial grant. Provides that a school district or
open-enrollment charter school that has been approved for a grant to pay a
stipend to a certified master reading teacher is not required to reapply
for a grant for two consecutive school years following the year of the
initial grant provided that the district or school has met certain
criteria. 

(g) Requires the commissioner to reduce payments to a school district or
open-enrollment charter school proportionately to the extent a teacher does
not meet the requirements under Subsection  (d) for the entire school year.
Requires a district or school that employs more certified master reading
teachers than the number of grants available to select the certified master
reading teachers to whom to pay stipends based on a policy adopted by the
board of trustees of the district or the governing body of the school,
except that a district or school is required to pay a stipend for two
additional consecutive school years to a teacher the district or school has
selected for and paid a stipend for a school year who remains eligible for
a stipend under Subsection (d) and for whom the district or school receives
a grant under this section for those years. Provides that a decision of the
district or school under this subsection is final and is prohibited from
being appealed. Prohibits the district or school from apportioning among
teachers a stipend paid for with a grant the district or school receives
under this section. Authorizes the district or school to use local money to
pay additional stipends in amounts determined by the district or school.  

(h) Provides that a grant a school district or open-enrollment charter
school receives under this section is in addition to any funding the
district or school receives under Chapter 12 (Charters) or 42 (Foundation
School Program), Education Code, as applicable. Requires the commissioner
to distribute funds under this section with the Foundation School Program
payment to which the district or school is entitled as soon as possible
after the end of the school year as determined by the commissioner.
Entitles a district to which Chapter 41 (Equalized Wealth Level), Education
Code, applies, to the grants paid under this section. Requires the
commissioner to determine the timing of the distribution of grants to a
district that does not receive Foundation School Program payments.  

 (i) Provides that this section does not create a property right to a grant
or stipend. Provides that a school district or open-enrollment charter
school is entitled to a grant to carry out the purposes of this section
only to the extent the commissioner makes the grant in accordance with this
section and only to the extent sufficient state funds are appropriated for
those purposes. Requires the commissioner, if state funds are appropriated
but are insufficient to fully fund a grant, to reduce the grant paid to
each district or school in the manner provided under Section 42.253(h)
(Distribution of Foundation School Fund), Education Code, and each district
or school is required to reduce the stipend the district or school pays to
each teacher proportionately so that each selected teacher receives the
same amount of money. 

(j) Provides that a decision of the commissioner concerning the amount of
money to which a school district or open-enrollment charter school is
entitled under this section is final and is prohibited from being appealed.
Requires each district or open-enrollment charter school, in the manner and
at the time prescribed by the commissioner, to provide to the commissioner
proof acceptable to the commissioner of the master reading teacher
certification of a teacher to whom the district or school is paying a
stipend under this section. 

(k) Authorizes the commissioner to audit the expenditure of money
appropriated for purposes of this section. Requires a district's use of the
money appropriated for purposes of this section to be verified as part of
the district audit under Section 44.008 (Annual Audit; Report), Education
Code.  

(l) Provides that a stipend a teacher receives under this section is not
considered in determining whether the district is paying the teacher the
minimum monthly salary under Section 21.402 (Minimum Salary Schedule for
Classroom Teachers and Full-Time Librarians), Education Code.  

(m) Authorizes the commissioner to adopt other rules as necessary to
implement this section.   

SECTION 22. Amends Section 25.039(b), Education Code, to prohibit the
amount of tuition paid from exceeding the lesser of the amount provided for
by Section 25.038 (Tuition Fee for Transfer Students), Education Code, or
an amount specified by commissioner rule.  Deletes text authorizing the
amount of tuition paid to exceed the amount provided for by Section 25.038
provided that the board of trustees of the district in which the students
reside finds the excess payment to be in the best interest of the
district's educational program.  

SECTION 23. Amends Section 39.023, Education Code, by adding Subsection
(l), as follows:  

(l) Prohibits any corporation, partnership, subsidiary corporation, or
other legal entity from being eligible to bid for, or enter into a contract
or subcontract directly or indirectly with the state for, the development,
distribution, or grading of any academic skills assessment instruments used
as an element of accreditation or of any other statewide assessments if the
entity also contracts for the sale of textbooks to any school district
within the State of Texas.  

SECTION 24. Amends Section 44.004, Education Code, as follows: 

Sec. 44.004. New Title: NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
ADOPTION. (b) Requires the president to provide for the publication of
notice of the budget and proposed tax rate meeting in a daily, weekly, or
biweekly newspaper published in the district. Deletes text providing that
notice published under this subsection is in addition to notice required by
other law. Deletes text authorizing a district to include the notice
required in a notice required under Section 26.06 (Notice, Hearing, and
Vote on Tax Increase), Tax Code.  

(c) Prohibits the notice of public meeting to discuss and adopt the budget
and the  proposed tax rate from being smaller than one-quarter page of a
standard-size or a tabloidsize newspaper, and the headline on the notice
must be in 18-point or larger type. Specifies the format and provisions
included in the form, subject to Subsection (d).      

(d) Requires the comptroller, by rule, to prescribe the language and format
to be used in the part of the notice required by Subsection (c). Provides
that a notice under Subsection (c) is not valid if it does not
substantially conform to the language and format prescribed by the
comptroller under this subsection. 

(e) Authorizes any taxpayer of the district to be present and participate
in the meeting, rather than hearing. Redesignated from Subsection (c). 

(f) Redesignated from Subsection (d).

SECTION 25. Amends Sections 403.302(h) and (i), Government Code, as follows:

(h) Provides that for the purposes of Section 42.2511 (Computation of State
Aid for 19971998 School Year; Additional State Aid), rather than Sections
41.0011 (Computation of Wealth Per Student for 1997-1998 School Year) and
42.2511, Education Code, for the 1998 and 1999, rather than 1996 and 1997,
tax years, the comptroller is required to certify to the commissioner of
education:  

(1) a final value for each school district computed on a residence
homestead exemption under Section 1-b(c) (Residence Homestead Exemption),
Article VIII (Taxation and Revenue), Texas Constitution, of $5,000; and  
(2) a final value for each school district computed on: 

  (A) a residence homestead exemption under Section 1-b(c), Article VIII,
Texas     Constitution, of $15,000; and  
  (B) the effect of the additional limitation on tax increases under
Section 1-b(d),   Article VIII, Texas Constitution, as proposed by H.J.R.
No. 4, 75th Legislature,    Regular Session, 1997.  

(i) Sets forth that Subsection (h) and this subsection expire September 1,
2001, rather than 1999. 

SECTION 26. Amends Section 822.201(b), Government Code, as amended by
Chapters 330 and 1035, Acts of the 75th Legislature, Regular Session, 1997,
to modify the definition of "salary and wages." 

SECTION 27. Amends Sections 824.203(a) and (e), Government Code, as follows:

(a) Provides that except as provided by Subsections (c), (d), and (e), the
standard service retirement annuity is an amount computed on the basis of
the member's average annual compensation for the three years of service,
whether or not consecutive, in which the member received the highest annual
compensation, times 2.2, rather than two, percent for each year of service
credit in the retirement system.  

(e) Makes a conforming change.

SECTION 28. Amends Section 824.602(a), Government Code, as follows:

(a) Deletes the prohibition against the retirement system from withholding
a monthly benefit payment if the retiree is employed in a Texas public
educational institution in one or more positions on as much as a full-time
basis, if  the retiree executes on a form and within any deadline
prescribed by the retirement system a written election to have this
exception apply for the school year in determining whether benefits are to
be suspended for employment after retirement. Prohibits the retirement
system from withholding a monthly benefit payment if the retiree is
employed in a Texas public educational  institution in a position as a
classroom teacher on as much as a full-time basis, if the retiree is
certified under Subchapter B (Certification of Educators), Chapter 21
(Educators), Education Code, had no promise of future public school
employment at the time of retirement, and has been separated from service
with all public schools for a period at least equal to the minimum term of
a contract under Section 21.401(a) (Minimum Service Required), Education
Code. Makes conforming changes. 

SECTION 29. Amends Section 824.804(a), Government Code, to require the
retirement system to transfer monthly, during the period of the member's
participation in the plan, from the retired reserve account to an account
for the member in the deferred retirement option account an amount equal to
59, rather than 79, percent of the amount the member would have received
that month under a standard service retirement annuity if the member had
retired on the effective date of plan participation under the multiplier
currently in effect. 

SECTION 30.  Amends Section 26.04(c), Tax Code, to make conforming changes.

SECTION 31. Amends Section 26.05(d), Tax Code, to make conforming changes.

SECTION 32. Amends Section 26.06, Tax Code, by adding Subsection (g), as
follows: 

(g) Provides that this section (Notice, Hearing, and Vote on Tax Increase),
other than Subsection (a), does not apply to a school district. Requires a
school district to provide notice of a public hearing on a tax increase as
required by Section 44.004, Education Code.  

SECTION 33. Amends Section 26.08, Tax Code, by amending Subsection (i) and
adding Subsections (j) and (k), as follows: 

(i) Modifies the calculation of the rollback tax rate of a school district. 

(j) Sets forth the calculation of the rollback tax rate of a school
district for the 1999 tax year.  

(k) Provides that Subsections (j) and (k) expire on September 1, 2000.

SECTION 34. Repealer: Sections 42.103(e) (relating to small and mid-sized
district adjustment), 42.251(c) (relating to financing), and 42.252(e)
(relating to local share of program cost), Education Code; and Section
26.08(f) (relating to an election to ratify school taxes), Tax Code.   

SECTION 35.  Requires the commissioner of education, for the 1999-2000 and
2000-2001 school years, to increase the entitlement under the Foundation
School Program of certain school districts. Sets forth the procedure for
such an increase. 

SECTION 36. Provides that the monthly payments of a death or retirement
benefit annuity by the Teacher Retirement System of Texas are increased
beginning with the payment due at the end of September 1999.  Provides that
the increase does not apply to Sections 824.304(a) (relating to disability
retirement benefits), 824.404 (Survivor Benefits), and 824.501 (Survivor
Benefits), Government Code.  Sets forth the method of computing the amount
of the monthly increase.  

SECTION 37. Requires the State Board for Educator Certification to propose
rules establishing requirements and prescribing an examination for master
reading teacher certification not later than January 1, 2001. 

SECTION 38.  Requires the commissioner of education to study the effects of
a law prohibiting a school district from beginning instruction for students
for a school year before September 1. Requires the commissioner to include
in the study the effects such a law would have on students, parents, school
personnel, school districts, local economies, and the state economy.
Requires the commissioner to report the results of the study to the
legislature not later than January 31, 2001. Provides that this section
expires on February 1, 2001.  
 
SECTION 39. Effective date: September 1, 1999, except as otherwise provided
by this Act.  

SECTION 40. Emergency clause.