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


Office of House Bill AnalysisC.S.S.B. 4
By: Bivins
Public Education
5/21/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Legislature has made a commitment to increase funding for public
education.  C.S.S.B. 4 proposes a comprehensive package to allow the
educational system to benefit from this commitment. This bill is a
comprehensive school finance, property tax relief, and school employee pay
raise package that increases state support of the Texas public education
system and attempts to reduce the burden on local property taxes to fund
the public schools.  This bill also raises the amounts of several formulas
in the school finance system.  This bill provides a $3000 pay raise to all
teachers, librarians, counselors and school nurses, and adds counselors and
school nurses to the minimum salary schedule.  This bill provides salary
transition to help pay for the mandated salary increases. This bill
compresses tax rates and adds enhanced support for the debt and
construction of school facilities. This bill also extends the hold-harmless
provision for Chapter 41 school districts and the holdharmless provision
for the homestead exemption granted in 1997.  This bill also implements a
program of enhanced training for teachers to improve their skills to teach
reading, as well as a plan to identify students who are not learning how to
read. This bill also provides programs to enhance student learning. 

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 1.13 (Section 42.158, Education Code), SECTION 1.15 (Section
42.2512, Education Code), SECTION 1.24 (Section 25.039, Education Code),
SECTION 2.01 (Sections 29.155 and 29.156, Education Code), SECTION 2.02
(Section 29.086, Education Code), and SECTION 2.06 (Section 28.0211,
Education Code); and that rulemaking authority previously delegated to the
commissioner of education is modified in SECTION 1.23 (Section 21.403,
Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1. SCHOOL FINANCE AND PROPERTY TAX RELIEF

SECTION 1.01.  Amends Subdivision (3), Section 41.001, Education Code, to
delete the exception from the definition of "weighted average daily
attendance" which is defined with the meaning assigned by Section 42.302
(Allotment), Education Code. 

SECTION 1.02.  Amends Sections 41.002, Education Code, by amending
Subsections (a), (b), (e), and (f) and by adding Subsections (g) and (h),
as follows: 

(a) Prohibits a school district from having a wealth per student that
exceeds $295,000, rather than $280,000.  

(b) Requires the commissioner of education (commissioner), in accordance
with Section 42.2521, Education Code, to adjust 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. Deletes text that requires the commissioner, except as
provided by Subsection (c), to adjust by the amount of the decline, the
taxable values of a school district that experiences a decline from the
preceding year in the tax base used in calculating taxable values that is
beyond the control of the board of trustees of the district. 
 
(e) Makes this subsection applicable to the 2000-2001, and 2001-2002 school
years. Provides an exception to this subsection as provided by Subsection
(g).  Provides that this subsection expires September 1, 2002, rather than
2000. 

(f)  Provides that this subsection expires on September 1, 2002, rather
than 2000. 

(g) Sets forth the calculations to determine the wealth per student that a
district is authorized to have under Subsection (e). 

(h)  Provides that Subsection (g) and this subsection expire on September
1, 2002.  

SECTION 1.03.  Amends Section 41.003, Education Code, to include among
other enumerated provisions, the authority of a district with a wealth per
student that exceeds the equalized level to educate, rather than contract
for the education of, nonresident students under Subchapter E  in order to
achieve the equalized wealth level. 

SECTION 1.04.  Amends Subchapter A, Chapter 41, Education Code, by adding
Section 41.0031, as follows: 

Sec. 41.0031. INCLUSION OF ATTENDANCE CREDITS AND NONRESIDENTS IN WEIGHTED
AVERAGE DAILY ATTENDANCE. Requires the commissioner to use the district's
final weighted average daily attendance and the number of attendance
credits a district purchases under Subchapter D (Purchase of Attendance
Credit) or the number of nonresident students a district educates under
Subchapter E for a school year, when determining whether a school district
has a wealth per student less than or equal to the equalized wealth level.  

SECTION 1.05.  Amends Section 41.004(a), Education Code, to specify that
the commissioner use the estimate of enrollment under Section 42.254,
Education Code, when being required to review the wealth per student of
school districts in the state. 

SECTION 1.06.  Amends Section 41.093, Education Code, by adding Subsection
(c), to provide that the cost of an attendance credit for a school district
is computed using the final tax collections of the district. 

SECTION 1.07.  Amends Subchapter E, Chapter 41, Education Code, by adding
Section 41.124, as follows: 

Sec. 41.124. TRANSFERS. (a) Authorizes the board of trustees of a school
district with a wealth per student exceeding the equalized wealth level to
reduce the district's wealth per student by serving nonresident students
who transfer to and are educated by the district but who are not charged
tuition. Provides that a district that exercises the option is not required
to execute an agreement with the school district in which a transferring
student resides and must certify to the commissioner that the district has
not charged or received tuition for the transferring students. 

(b) Authorizes a school district with a wealth per student exceeding the
equalized wealth level that pays tuition to another school district for the
education of students residing in the district to apply the amount of
tuition paid toward the cost of the option chosen by the district to reduce
its wealth per student. Prohibits the amount applied from exceeding the
amount determined under Section 41.093 (Cost), Education Code as the cost
of an attendance credit for the district. Authorizes the commissioner to
require any reports necessary to document the tuition payments.  

(c) Prohibits a school district that receives tuition for a student from a
school district with a wealth per student exceeding the equalized wealth
level from claiming attendance for that student for the purposes of
Chapters 42 (Foundation School Program) and 46 (Instructional Facilities
Allotment), Education Code.  

 SECTION 1.08.  Amends the heading to Subchapter E, Chapter 41, Education
Code, as follows: 

SUBCHAPTER E. New Heading: EDUCATION OF NONRESIDENT STUDENTS

SECTION 1.09.  Amends Section 42.007(d), Education Code, to provide that
the Legislative Budget Board study on the funding elements, must include a
determination of the projected cost to the state in the next biennium of
ensuring the ability of each school district to maintain existing programs
without increasing property tax rates. 
 
SECTION 1.10.  Amends Section 42.101, Education Code, to provide that for
each student in average daily attendance a district is entitled to the
basic allotment of $2,537, rather than $2,387.  

SECTION 1.11.  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 the education of students residing in the district in
another district under Section 25.039(a) is adjusted by applying the
formula:  ADPV = DPV - (TN/.015).  Defines "ADPV," "DPV," and "TN."  

SECTION 1.12.  Amends Section 42.152, Education Code, by adding Subsections
(s) and (t), as follows: 

(s) Provides that a reduction made under this section or the General
Appropriations Act in the allotment under this section does not affect the
computation of students in weighted average daily attendance for the
purposes of Subchapter F (Guaranteed Yield Program). 

(t) Requires the commissioner, for the 1999-2000 and 2000-2001 school
years, to reduce the guaranteed level of state and local funds per weighted
student per cent of tax effort under Section 42.302, Education Code, by an
amount sufficient to reduce state costs in an amount equal to the increase
in state costs due to the application of Subsection (s). Requires the
commissioner to determine the same reduction for both school years and to
announce the determination on a specified date. Provides that a
determination by the commissioner under this section is final and is
prohibited from being appealed. Provides that this subsection expires
September 1, 2001. 

SECTION 1.13.  Amends Subchapter C, Chapter 42, 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) Entitles a school district, for the first school year in which students
attend a new instructional facility, to an allotment of $400 for each
student in the average daily attendance at the facility.  Entitles a school
district, for the second year in which students attend that instructional
facility, to an allotment of $400 for each additional student in average
daily attendance at the 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 $40 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 1.14.  Amends Section 42.2511, Education Code, as follows:

 Sec. 42.2511.  New title:  ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
Provides that 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), if the school district is not fully compensated  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. Deletes
text regarding the computation of state aid. Deletes Subsection (c), which
provided that this section expires September 1, 1999. Makes conforming
changes. 

SECTION 1.15. Amends Subchapter E, Chapter 42, Education Code, by adding
Sections 42.2512 and 42.2513, as follows: 

Sec. 42.2512. SALARY TRANSITION AID. (a) Sets forth the amount of state aid
that a school district, including a school district that is otherwise
ineligible for state aid under this chapter, is entitled as determined by
the commissioner for the 1999-2000 and 2000-2001 school years. 

(b) Provides that a determination by the commissioner under this section is
final and prohibits it from being appealed. 

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

(d) Provides that this section expires September 1, 2001.

Sec. 42.2513. ADDITIONAL SALARY TRANSITION AID. (a) Requires the
commissioner, for the 1999-2000 and 2000-2001 school years, to increase the
entitlement under this chapter of a school district that experiences
additional salary cost resulting from Chapter 592 (H.B. No. 4), Acts of the
75th Legislature, Regular Session, 1997, that is not fully funded by an
amount equal to 20 percent of the amount of additional funds to which the
district is entitled due to the increases made by S.B. No. 4, Acts of the
76th Legislature, Regular Session, 1999, to the equalized wealth level
under Section 41.002, the basic allotment under Section 42.101 (Basic
Allotment), and the guaranteed  level of state and local funds per weighted
student per cent of tax effort under Section 42.302. 

(b) Requires the amount of additional salary cost to be computed by
determining what the district's salary cost of the 1996-1997 school year
would have been if, for the purposes of the minimum salary schedule under
Section 21.402, as that section existed on September 1, 1996, the amount
appropriated for purposes of the Foundation School Program for the
1997-1998 state fiscal year were increased by $520 million and comparing
that cost to the amount the district was actually required to pay under
Section 21.402. Requires the commissioner for this purpose to use the
1996-1997 employment and salary data as reported through the Public
Education Information Management System (PEIMS).  

(c) Requires the commissioner to determine the amount of additional state
aid under this section to which each school district is entitled. Provides
that a decision of the commissioner is final and is prohibited from being
appealed. 

(d) Provides that this section expires September 1, 2001.

SECTION 1.16.  Amends Subchapter E, Chapter 42, Education Code, by adding
Section 42.2514, effective September 1, 2001, as follows: 

Sec. 42.2514. ADJUSTMENT TO FUNDING ELEMENTS. (a) Requires the commissioner
to increase the basic allotment under Section 42.101 and the guaranteed
level of state and local funds per weighted student per cent of tax effort
under Section 42.302 to provide school districts in the aggregate the same
amount of state funds that would have been delivered under this chapter if
former Section 42.102, as that section existed on May 31, 1999, had not
been repealed. 

(b) Provides that an increase under Subsection (a) must be in proportion to
the amount of funds that would have been available in Tiers 1 and 2 of the
Foundation School Program because of the adjustment if former Section
42.102 had not been repealed. 

(c) Provides that a determination made by the commissioner is final and is
prohibited from being appealed. 

SECTION 1.17. Amends Subchapter E, Chapter 42, Education Code, by adding
Section 42.2521 and 42.2522, as follows:  

Sec. 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE OF PROPERTY.
(a) Requires the commissioner, for purposes of Chapters 41 (Equalized
Wealth Level) and 46, Education Code, and this chapter, and to the extent
money specifically authorized to be used under this section is available,
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 to reflect the
current year taxable values. 

(b) 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), 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
and may not be repealed. 

Sec. 42.2522. ADJUSTMENT FOR OPTIONAL HOMESTEAD EXEMPTION. (a) Prohibits
the commissioner, in any school year, from providing funding under this
chapter based on a school district's taxable value of property computed in
accordance with Section 403.302(d)(2), Government Code, unless certain
criteria are met. 

(b) Sets forth requirements for the commissioner, when making a
determination under Subsection (a). 

(c) Requires the commissioner, in the first year of a state fiscal
biennium, before providing funding as provided by Subsection (a), to ensure
that sufficient appropriated funds for purposes of the Foundation School
Program are available for the second year of the biennium, including funds
to be used for purposes of Section 42.2521.  

(d) Authorizes the commissioner, to the extent necessary, to provide state
funding based on a uniform lesser fraction of the deduction under Section
403.302(d)(2), Government Code, if the commissioner determines that the
amount of funds available under Subsection (a) does not meet a specified
amount. 

SECTION 1.18.  Amends Section 42.253(e), Education Code, and adds Section
42.253 (e-1), as follows: 

(e) Provides that this subsection provides an exception to the provision
prohibiting the amount to which a district is entitled from exceeding the
amount to which the district would be entitled at the district's tax rate
for the final year of the preceding biennium, or a different tax rate
provided by appropriation. Prohibits the amount to which a district is
entitled under Section 42.303, Education Code, from exceeding the amount to
which the district would be entitled based on the portion of the district's
tax rate for the final year of the preceding  biennium that meets the
requirements of Section 42.303(b). 

(e-1) Requires the commissioner, for the 1999-2000 and 2000-2001 school
years, to recompute the limit authorized under Subsection (e) for each
school district to be a rate that would entitle the district to an amount
of state and local funds per weighted student in the current year, using a
guaranteed level of state and local funds per cent of tax effort under
Section 42.302 of $23.10, equal to the amount of state and local funds to
which the district would have been entitled under this chapter for the
current school year if there had been no change in law. Requires the
commissioner, for the purposes of this subsection, to base the
determination of a district's entitlement under prior law on the district's
maximum tax rate for the 1999-2000 school year under Subsection (e) and the
funding elements for this chapter as it existed on May 31, 1999. Provides
that the commissioner's determination under this subsection is final and is
prohibited from being appealed.  Provides that this subsection expires
September 1, 2001. 

SECTION 1.19. Amends Section 42.302(a), Education Code, to provide that
"GL" is the dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort, which is $24.75, rather than $21,
or a greater amount for any year provided by appropriation.  Redefines
"WADA," "DTR," and "LR," for purposes of the formula set forth under this
section. 

SECTION 1.20.  Amends Section 42.303, Education Code, as follows:

Sec. 42.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX RATE. (a) Provides
that this section provides an exception to the provision prohibiting the
district enrichment and facilities tax rate ("DTR") under Section 42.302
from exceeding a specified amount. 

(b) Authorizes a district to receive state assistance under this subchapter
based on taxes imposed to pay the principal of and interest on bonds for
which taxes to pay the principal and interest were first levied in a school
year before the 1997-1998 school year, or on bonds issued to refund such
bonds, if certain criteria are met. 

(c) Prohibits a district from receiving state assistance for any portion of
a tax rate exceeding the limit prescribed by Subsection (a) that is
attributable to maintenance and operations taxes. 

(d) Prohibits the tax rate for which a district may receive state
assistance as provided by Subsection (b) from exceeding the rate that would
be necessary for the current year, using state funds under Section 42.302,
in order to make payments of principal and interest on the bonds described
by Subsection (b) for which the tax is pledged. 

(e) Sets forth a district's total tax rate for the purposes of this section.

(f) Specifies the amount that the total amount of taxes collected by the
school district does not include, when computing the total tax rate of a
school district. 

SECTION 1.21. Amends Section 46.003(a), Education Code, to provide that
"FYL" is the dollar amount guaranteed level of state and local funds per
student per cent of tax effort, which is $33, rather than $28, or a greater
amount for any year provided by appropriation.  Redefines  "BTR" and "DPV." 

SECTION 1.22.  Amends Section 21.401 and 21.402, Education Code, as follows:

Sec. 21.401. MINIMUM SERVICE REQUIRED. Provides that an educator employed
under a 10-month contract must provide a minimum of 187, rather than a
minimum number of, days of service.  Deletes text regarding a certain
formula used to determine the number of days of service the employee must
provide, as well as the applicability of the formula to the 1999-2000
school year, which expires January 1, 2000.  Deletes text requiring the
result of the formula to be rounded to the nearest whole number. Makes
conforming and  nonsubstantive changes.  

Sec. 21.402. MINIMUM SALARY SCHEDULE FOR CERTAIN PROFESSIONAL STAFF. (a)
Modifies the formula set forth in this subsection, regarding the minimum
monthly salary a school district must pay each classroom teacher, full-time
librarian, fulltime counselor, or full-time school nurse, except as
provided by Subsection (d), (e), or (f) and sets forth the definition of
"FS."  Deletes the definitions 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) Modifies the chart of salary factors per step.

(c-1) Sets forth the provisions relating to the determination of the
monthly salary that a classroom teacher, full-time librarian, full-time
counselor, or full-time nurse is entitled to for the 1999-2000 school year,
notwithstanding Subsection (a). 

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

(d) Sets forth provisions relating to the determination of the monthly
salary that a teacher, librarian, counselor, or nurse employed by a school
district in the 1999-2000 school year is entitled to, as long as the
employee is employed by the same district. Redesignates a portion of
existing Subsection (d) to Subsection (e) and existing Subsections (e) and
(f) as Subsections (f) and (g), respectively. 

SECTION 1.23.  Amends Subsections (a) and (c), Section 21.403, Education
Code, to make conforming changes. 

SECTION 1.24.  Amends Section 25.039(b), Education Code, by prohibiting the
amount of the tuition that one school district pays to another under this
section (Contracts and Tuition for Education Outside District) from
exceeding the lesser of the amount provided for by Section 25.038 (Tuition
Fee for Transfer Students) or an amount specified by commissioner rule,
rather than by Section 25.038 if 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 1.25.  Amends Subsection (b), Section 30.102, Education Code, to
make conforming changes. 

SECTION 1.26.  Amends Subsections (a) and (c), Section 45.104, Education
Code, by authorizing the board of trustees of any school district to pledge
its delinquent taxes levied for maintenance purposes for specific past,
current, and future school years, rather than for specific school years, as
security for a loan; and to evidence any such loan with negotiable notes.
Requires that delinquent taxes pledged, rather than delinquent taxes
pledged as they are collected, be applied against the principal and
interest of the loan.  Provides that negotiable notes issued under this
subsection must mature in not more than 20 years from their date.
Authorizes the employment of funds secured through loans secured by
delinquent taxes for all costs incurred in connection with environmental
cleanup and asbestos removal programs implemented by school districts, or
maintenance, repair, rehabilitation, or replacement of heating, air
conditioning, water, sanitation, roofing, flooring, electric, or other
building systems of existing school properties. 

SECTION 1.27.  Amends Sections (a), (b), and (d), Section 45.108, Education
Code, to authorize the issuance of notes under this section for a term of
less than one year only after a budget has been adopted for the current
school year.  Makes conforming changes. 
 
SECTION 1.28.  Amends Section 403.302, Government Code, as amended by S.B.
1368, Acts of the 76th Legislature, Regular Session, 1999, by amending
Subsections (d) and (h) and adding Subsection (j), as follows: 

(d) Modifies the definition of "taxable value" by further deducting from
the market value of all taxable property one-half of the total dollar
amount of any residence homestead exemptions granted under Section
11.13(n), Tax Code, in the year that is the subject of the study for each
school district.  Makes conforming changes. 

(h) Requires the comptroller, for the purposes of Section 42.2511
(Computation of State Aid for the 1997-1998 School Year; Additional State
Aid), Education Code,  rather than Sections 41.0011(Computation of Wealth
per Student for the 1997-1998 School Year) and 42.2511, to certify to the
commissioner: 

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

(2) a final value for each school district computed on a residence
homestead exemption under Section 1-b(c), Article VIII, Texas Constitution,
of $15,000; and the effect of the additional limitation on tax increases
under Section 1-b(d), Article VIII, Texas Constitution, as proposed by
H.J.R. 4, 75th Legislature, Regular Session, 1997. Deletes the conditioning
of this requirement to the 1996 and 1997 tax years. 

(j) Requires the comptroller, for the purposes of Section 42.2522,
Education Code, to certify to the commissioner a final value for each
school district computed without any deduction for residence homestead
exemptions granted under Section 11.13(n), Tax Code, and a final value for
each school district computed after deducting one-half the total dollar
amount of residence homestead exemptions granted under Section 11.13(n),
Tax Code. 

SECTION 1.29.  Amends Subdivision (8), Section 271.003, Local Government
Code, by providing that the term "personal property" includes all materials
and labor incident to the installation of that personal property. 

SECTION 1.30.  Amends Section 271.005, Local Government Code, by adding
Subsection (b), as follows: 

(b) Authorizes the governing body of a governmental agency to contract
under this section for the materials and labor incident to the installation
of personal property. 

SECTION 1.31.  Amends Subsection (b), Section 271.007, Local Government
Code, by providing that the legal obligation of the person installing
personal property to the governmental agency is not diminished in any
respect by the approval  and registration of the contract. 

SECTION 1.32.  Amends Section 26.08, Tax Code, by amending Subsection (i)
and adding Subsections (j)-(n), as follows: 

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

(j) Provides that the amount of the state funds that would have been
available to a school district in the preceding year, for the purposes of
this section, is computed using the maximum tax rate for the current year
under Section 42.253(e) (relating to the distribution of the foundation
school fund), Education Code. 

(k) Sets forth the calculation of the rollback tax rate of a school
district for the 1999 tax year, except as provided by Subsection (l). 

(l)  Sets forth the calculation of the rollback tax rate of a school
district that is required to take action under Chapter 41 (Equalized Wealth
Level), Education Code, to reduce its wealth per student to the equalized
wealth level, for the 1999 tax year. 
 
(m)  Provides that the amount of maintenance and operations taxes and
states funds available to a school district, for the purposes of
Subsections (j) and (k), does not include amounts provided to the district
in accordance with Section 41.100, 42.159(a), or 42.2512, Education Code. 

(n) Provides that subsections (j)-(m) and this subsection expire September
1, 2000. 

SECTION 1.33.  Requires a school district, in placing a counselor or school
nurse on the minimum salary schedule in accordance with Sections 21.402 and
21.403, Education Code, to credit the counselor or nurse for each year of
experience in accordance with the rules adopted by the commissioner,
regardless of whether the experience was gained before, during, or after
the 19992000 school year. 

SECTION 1.34.  Requires the Charles A. Dana Center (center) at the
University of Texas at Austin to conduct a study of variations in known
resource costs and costs of education beyond the control of a school
district.  Requires the center, not later than November 1, 2000, to make
recommendations to the 77th Legislature as to methods of adjusting funding
under Chapter 42, Education Code, to reflect variations in the resource
costs and costs of education.  Provides that at least one recommended
method of adjustment must be a method that would require a smaller
appropriation for the state fiscal biennium beginning September 1, 2001,
than the appropriation that would be required for that biennium by the cost
of education adjustment under Section 42.102, Education Code, as that
section existed on May 31, 1999.  Requires the Texas Education Agency and
Texas A&M University to assist the center in conducting the study and
making the recommendations. 

ARTICLE 2.  PROGRAM IMPROVEMENTS AND SOCIAL PROMOTION

SECTION 2.01.  Amends Subchapter E, Chapter 29, Education Code, by adding
Sections 29.155 and 29.156, as follows: 

Sec. 29.155.  KINDERGARTEN AND PREKINDERGARTEN GRANTS.  (a) Authorizes the
commissioner to make grants from amounts appropriated for that purpose to
school districts (districts) to implement or expand kindergarten and
prekindergarten programs by operating an existing half-day kindergarten or
prekindergarten program on a full-day basis, or implementing a
prekindergarten program at a campus without such a program. 

(b)  Authorizes a district to use funds received under this section to
employ teachers and other personnel for a kindergarten or prekindergarten
program and acquire curriculum materials or equipment, including computers,
for use in related programs. 

(c)  Provides that a district must apply to the commissioner in the manner
and within the prescribed time in order to be eligible for a grant under
this section. 

(d)  Requires the commissioner, in awarding grants under this section, to
give priority to districts where the students' performance level on certain
assessment instruments administered to students in grade three is
substantially below the average level of performance on those assessment
instruments for all districts in the state. 

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

(f)  Authorizes the commissioner to waive a requirement prescribed by this
subchapter to the extent necessary to implement a grant awarded under this
section or Section 29.156, Education Code, notwithstanding Section
7.056(e)(3)(I), (Waivers and Exemptions), Education Code. 

Sec. 29.156.  GRANTS FOR EDUCATIONAL COMPONENT OF HEAD START. Requires the
commissioner, from funds appropriated for the purpose, to make grants for
use in providing an educational component to federal Head Start programs or
similar government-funded early childhood care and education programs.
Requires the  commissioner to adopt rules for implementing this section,
including those prescribing eligibility criteria for receiving a grant and
expenditure of grant funds. 

SECTION 2.02.  Amends Subchapter C, Chapter 29, Education Code, by adding
Section 29.086, as follows: 

Sec. 29.086.  BASIC SKILLS PROGRAMS FOR HIGH SCHOOL STUDENTS.  (a)
Authorizes a district to apply to the commissioner for funding of special
programs for students in grade 9 who have not earned sufficient credit to
advance to grade 10 and who fail to meet minimum skills levels established
by the commissioner.  Authorizes the district, with the consent of a
student's parent or guardian, to assign the student to a program under this
section.  Prohibits said program from exceeding 210 instructional days. 

(b)  Provides that a program under this section must emphasize basic skills
in areas of the required curriculum under Section 28.002 and offer students
the opportunity to increase credits required to graduate from high school
under state or district policy.  Authorizes this program to be provided by
a district or entity contracting with a district to provide the program. 

(c) Requires the commissioner to award funds to districts according to a
competitive grant process developed by the commissioner.  Authorizes a
grant to be made to a consortium of districts.  Provides that the criteria
by which the commissioner awards a grant must include the quality of the
proposed program and the district's demonstrated need for it. Provides that
an approved program must include criteria permitting measurement of student
progress.  Requires the district to annually evaluate the progress of the
students in the program and submit the evaluation results to the
commissioner at the end of the school year. 

(d)  Requires the commissioner to establish minimum levels of student
enrollment and standards of student progress required for continued funding
of a program under this section.  Authorizes the commissioner to eliminate
funding for a program in a subsequent school year if the program fails to
achieve sufficient levels of student progress. 

(e) Provides that the amount of a grant under this section must consider
funds distributed to the district under Chapter 42 (Foundation School
Program), Education Code. 

(f) Authorizes the commissioner to adopt rules for the administration of
programs under this section. 

SECTION 2.03.  Amends Subsection (b), Section 12.104, Education Code,  to
include reading instruments and accelerated reading instruction programs
under Section 28.006 (Reading Diagnosis), Education Code and satisfactory
performance on assessment instruments and to accelerated instruction under
Section 28.0211, Education Code, among those things to which an
open-enrollment charter school is subject.  Makes conforming changes. 

SECTION 2.04.  Amends Subsection (d), Section 25.085, Education Code, to
include the following programs a student enrolled in a district must
attend, with certain exceptions: 

_an accelerated reading instruction program to which the student is
assigned under Section 28.006(g), Education Code; 
_an accelerated instruction program to which the student is assigned under
Section 28.0211, Education Code; or 
_a basic skills program to which the student is assigned under Section
29.086, Education Code. 

SECTION 2.05.  Amends Section 28.006, Education Code, by amending
Subsection (d) and adding Subsections (g)-(m), as follows: 

(d) Requires the superintendent of each district to report to the
commissioner, in addition to  the board of trustees of the district, the
results of certain reading instruments and to report, in writing, to a
student's parent or guardian the student's results on the reading
instrument. 

(g)  Requires a district to notify a parent or guardian of a student in
kindergarten or first or second grade who is determined, based on reading
instrument results, to be below grade level in reading development or
comprehension.  Requires the district to implement an accelerated reading
instruction program which provides related instruction to those students
and to determine the form, content, and timing of the program.  Requires
the admission, review, and dismissal committee (ARD committee) of a student
participating in a district's special education program under Subchapter B
(Bilingual Education and Special Language Programs), Chapter 29
(Educational Programs), Education Code, and who does not perform
satisfactorily on a reading instrument under this section to determine the
manner in which the student will participate in an accelerated reading
instruction program under this subsection. 

(h)  Requires the district to make a good faith effort to ensure the notice
under this section is provided either in person or by regular mail and that
it is clear and easy to understand and is written in English and in the
parent or guardian's native language. 

(i)  Requires the commissioner to certify, no later than July 1 of each
school year or as soon as practicable thereafter, whether sufficient funds
have been appropriated statewide for the purposes of this section.
Provides that the commissioner's determination is final and may not be
appealed.  Prohibits the commissioner from considering Foundation School
Program funds for purposes of certification. 

(j)  Prohibits more than 15 percent of the funds certified by the
commissioner under Subsection (i) from being spent on indirect costs.
Requires the commissioner to evaluate programs failing to meet the standard
of performance under Section 39.051(b)(7) (Academic Excellence Indicators),
Education Code, and authorizes the commissioner implement sanctions under
Subchapter G (Accreditation Sanctions), Chapter 39.  Authorizes the
commissioner to audit expenditures of funds appropriated for purposes of
this section. Requires the use of funds appropriated for purposes of this
section to be verified as part of the district audit under Section 44.008
(Annual Audit; Report), Education Code. 

(k)  Authorizes the provisions of this section relating to parental
notification of a student's results on the reading instrument and to
implementation of an accelerated reading instruction program to be
implemented only if the commissioner certifies that funds have been
appropriated during a school year for administering the program. 

(l)  Requires each district to provide the accelerated reading instruction
under Subsection (g) to students falling within certain grade levels during
certain school years. 

(m)  Provides that Subsection (l) and this subsection expire January 1,
2002. 

SECTION 2.06.  Amends Subchapter B, Chapter 28, Education Code, by adding
Section 28.0211, as follows: 

Sec. 28.0211. SATISFACTORY PERFORMANCE ON ASSESSMENT INSTRUMENTS REQUIRED;
ACCELERATED INSTRUCTION. (a) Prohibits a student, except as provided by
Subsection (e), from being promoted to certain grades that the student
would otherwise be assigned if that student fails to perform satisfactorily
on specified testing instruments. 

(b)  Requires a district to provide to a student who initially fails to
perform satisfactorily on an assessment instrument described in Subsection
(a) at least two additional opportunities to take the instrument. 

(c)  Requires the district in which a student attends school to provide the
student accelerated instruction in the applicable subject area each time a
student fails to perform satisfactorily on the instrument specified under
Subsection (a).  Requires a grade  placement committee, after a student
fails to perform satisfactorily on the instrument a second time, to be
established to prescribe the accelerated instruction the district is
required to provide to the student before the student is administered the
instrument a third time. Requires the committee to be composed of certain
persons within the school, as well as the student's parent or guardian.
Requires the district to notify the parent or guardian of the time and
place for convening the committee, as well as its purpose.  Prohibits an
accelerated instruction group from having a ratio of more than 10 students
per teacher. 

(d)  Requires the district, in addition to providing accelerated
instruction to a student under Subsection (c), to notify the student's
parent or guardian of the student's failure to perform satisfactorily on
the assessment instrument, the accelerated instruction program to which the
student is assigned, and the possibility that the student might be retained
at the same grade level for the next school year. 

(e)  Requires a student who fails to perform satisfactorily on an
assessment instrument specified under Subsection (a) three times to be
retained at the same grade level for the next school year according to that
subsection.  Authorizes the student's parent or guardian to appeal this
decision by submitting a request to the grade placement committee in
Subsection (c).  Requires the district to give the parent or guardian
written notice of the opportunity to appeal.  Authorizes the grade
placement committee to decide in favor of promoting the student only if it
concludes, using standards adopted by the board of trustees, that the
student is likely to perform at grade level if promoted and given
accelerated instruction.  Prohibits a student from being promoted on the
basis of the committee's decision unless it is unanimous.  Authorizes the
commissioner, by rule, to establish a timeline for making the placement
determination.  Provides that this subsection does not create a property
interest in promotion.  Provides that the committee's decision is final and
prohibits it from being appealed. 

(f) Requires a district to provide to a student who fails to perform
satisfactorily on an assessment instrument specified under Subsection (a)
after three times accelerated instruction during the next school year as
prescribed by an educational plan developed for the student by the
student's grade placement committee.  Requires the district provide that
accelerated instruction regardless of whether the student has been promoted
or retained. Provides that this plan must be designed to enable the student
to perform at the appropriate grade level by the end of the school year.
Requires the student to be monitored during the school year to ensure
appropriate progress. Requires the district to administer the student the
assessment instrument for the grade level in which the student is placed at
the time the district regularly administers the assessment instruments for
that school year. 

(g)  Provides that this section does not preclude the retention at a grade
level, in accordance with state law or district policy, of a student
performing satisfactorily on an assessment instrument specified under
Subsection (a). 

(h)  Requires the district, each time a district is specifically required
to provide notice to a parent or guardian under this section, to make a
good faith effort to ensure that such notice is provided either in person
of by regular mail and that the notice is clear and easy to understand and
is written in English or the parent or guardian's native language. 

(i)  Requires the ARD committee of a student participating in a district's
special education program under Subchapter B, Chapter 29, Education Code,
and who does not perform satisfactorily on an assessment instrument
specified under Subsection (a) and administered under Section 39.023 (a) or
(b) (Adoption and Administration of Instruments), Education Code, to
determine the manner in which the student will participate in an
accelerated instruction program and whether the student will be promoted or
retained. 

(j)  Requires a district or open-enrollment charter school to provide
transportation for students required to attend accelerated programs under
this chapter. 
 
(k)  Requires the commissioner to adopt certain rules as necessary to
implement this section, for the purposes of Section 39.051, Education Code. 

(l)  Requires the commissioner to issue a report to the legislature no
later than December 1, 2000, that provides certain information with respect
to accelerated instruction programs. 

(m)  Requires the commissioner to certify, no later than July 1 of each
school year or as soon as practicable thereafter, whether sufficient funds
have been appropriated statewide for the purposes of this section.
Provides that the commissioner's determination is final and prohibits it
from being appealed.  Prohibits the commissioner from considering
Foundation School Program funds for purposes of certification.  Authorizes
this section to be implemented only if the commissioner certifies that
sufficient funds have been appropriated during a school year for
administering the accelerated instruction program specified under this
section. 

(n)  Makes this section applicable to certain assessment instruments
administered to students who fails to perform satisfactorily in certain
grade levels during certain school years. 

(o)  Provides that Subsection (n) and this subsection expire January 1,
2008. 

SECTION 2.07.  Amends Subchapter B, Chapter 39, Education Code, by adding
Section 39.0231, as follows: 

Sec. 39.0231.  REPORTING OF RESULTS OF CERTAIN ASSESSMENTS.  Requires the
Texas Education Agency (agency)  to ensure that each assessment instrument
administered in accordance with Section 28.0211, Education Code, is scored
and that the results are returned to the appropriate district no later than
10 days after receipt of the test materials by the agency or its test
contractor. 

SECTION 2.08.  Amends Subsection (b), Section 39.024, Education Code, to
make conforming changes. 

SECTION 2.09.  Amends Subsections (b) and (d), Section 39.051, Education
Code, to include among performance indicators adopted under this section
the number of students, aggregated by grade level, provided accelerated
instruction under Section 28.0211(c), Education Code; the results of
assessments administered under that section; the number of students
promoted through the grade placement committee process under Section
28.0211, Education Code; the subject of the assessment instrument on which
each student failed to perform satisfactorily; and the performance of those
students in the school year following that promotion on the assessment
instruments required under Section 39.023, Education Code.  Requires the
commissioner to define exemplary, recognized, and unacceptable performance
based upon student performance for the period covering both the current and
prior academic years for the indicators listed above.  Makes conforming
changes. 

SECTION 2.10.  Amends Subsection (b), Section 39.052, Education Code, to
make a conforming change. 

SECTION 2.11.  Amends Subsections (b) and (c), Section 39.072, Education
Code, to make conforming changes.  

SECTION 2.12.  Amends Subsection (a), Section 39.073, Education Code, to
make a conforming change. 

SECTION 2.13.  Amends Subsection (e), Section 39.074, Education Code, to
make a conforming change. 

SECTION 2.14.  Amends Section 39.183, Education Code, to include an
evaluation of accelerated  instruction programs offered under Section
28.006, Education Code, including an assessment of the quality of such
programs and the performance of students enrolled in them among the report
the agency is required under this section to prepare and deliver to the
governor, lieutenant governor, the speaker of the house of representatives,
each member of the legislature, the Legislative Budget Board, and the
clerks of the standing committees of the senate and house of
representatives with primary jurisdiction over the public school system. 

ARTICLE 3.  REPEALER; EFFECTIVE DATE; EMERGENCY

SECTION 3.01.  Repealers:

Section 8.121(b) (Funding for Core Services and Services to Improve
Performance), Education Code, which prohibits the allotments authorized by
this section in any year from being less than 0.4 percent of the amount
appropriated for purposes of the Foundation School Program for that year. 

Section 41.002(c) (Equalized Wealth Level), Education Code, which
authorizes the amount of money necessary to replace funds made unavailable
to the Foundation School Program by operation of Subsection (b) (requiring
the commissioner to adjust, by the amount of the decline, the taxable
values of a school district that experiences a decline from the preceding
year in the tax base used in calculating taxable values that is beyond the
control of the board of trustees of a district) to be paid only from funds
specifically appropriated for that purpose. Sets forth that if a sufficient
amount of money is not appropriated to fully replace funds made unavailable
to the Foundation School Program by operation of Subsection (b), the
adjustment to the taxable values of property in each district to which
Subsection (b) applies shall be modified proportionately to the extent
necessary so that the amount of funds made unavailable is equal to the
amount appropriated to replace those funds. 

Section 42.251(c) (Financing; General Rule), Education Code, which
requires the commissioner to compute for each school district the total
amount, if any, by which the district's total revenue is reduced from one
school year to the next because of a change in the method of finance under
this chapter. Further requires the commissioner to certify the amount of
the reduction to the school district for use in determining the school
district's rollback rate. 

Section 42.252(e) (Local Share of Program Cost (Tier One)), Education Code,
which requires the commissioner to hear appeals from districts that have
experienced a rapid decline in tax base used in calculating the local fund
assignment, exceeding four percent of the preceding year, that is beyond
the control of the board of trustees of the district.  Further authorizes
the commissioner, to the extent appropriations for that purpose are
available, to adjust the district's taxable values for local fund
assignment purposes for such losses in value exceeding four percent and
thereby adjust the local fund assignment to reflect the local current year
taxable value.  Provides that the decision of the commissioner is final and
that an adjustment does not affect the local fund assignment of any other
district. Makes this subsection applicable to determinations by the
commissioner in identifying districts with wealth per student exceeding the
equalized wealth level pursuant to Section 41.004. 

Section 42.102 (Cost of Education Adjustment), Education Code, effective
September 1, 2001. 

Section 403.302(i) (Determination of School District Property Values),
Government Code, which expires Subsection (h) and this subsection September
1,1999.  Subsection (h) requires the comptroller to certify to the
commissioner, for the 1996 and 1997 tax years, a final value for each
district computed on certain homestead exemptions. 

Section 26.08(f), Tax Code, relating to election to ratify school taxes.

SECTION 3.02.  Effective date:  September 1, 1999, as otherwise provided by
this Act. 

 SECTION 3.03. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 4 modifies the caption by including the specification that this
bill relates to property tax relief, in addition to public school finance
and public education. 

This substitute adds new ARTICLE 1 "School Finance and Property Tax Relief."

This substitute adds new SECTION 1.01, which amends Subdivision (3),
Section 41.001, Education Code, to delete the exception from the definition
of "weighted average daily attendance," which is defined as having the
meaning assigned by Section 42.302, Education Code. 

This substitute combines and redesignates SECTIONS 1 (Section 41.002(a),
Education Code) and 2 (Sections 41.002(b)-(f), Education Code) of the
original bill to SECTION 1.02 of the substitute, and modifies those
sections, as follows:  

In this substitute, Subsection (a) prohibits a school district from having
a wealth per student that exceeds $295,000, rather than $300,000. 

Subsection (b), requires the commissioner, in accordance with Section
42.2521, Education Code, to adjust 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, rather than taxable values in excess of four percent of the tax
base used in the preceding year.  

This substitute deletes the text proposed for Subsection (c) in the
original, which prohibited 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.  

This substitute deletes proposed Subsection (d) of the original, which
required 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. This substitute
deletes text regarding amount of decline and money necessary to replace
funds.  

In Subsection (e), this substitute includes a reference to Subsection (g),
as an exception for the 1999-2000, 2000-2001, and  2001-2002 school years
determination of wealth per student determined by the commissioner. This
substitute deletes text added in the original which provided that
Subsection (c) does not apply to a district to which this subsection
applies. This substitute restores text deleted in the original and amends
the text to provide that this section expires September 1, 2002, rather
than 2000.  

In Subsection (f), the substitute provides that this subsection expires on
September 1, 2002, rather than 2000. 

This substitute adds new Subsection (g) to set forth the calculations to
determine the wealth per student that a district is authorized to have
under Subsection (e).  

This substitute removes SECTION 5 of the original, which amended Section
42.155, Education  Code, by amending Subsection (d) and adding Subsection
(k). Subsection (d) allowed 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. Subsection (d) also
redefined "hazardous condition." Subsection (k) prohibited 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.  

This substitute adds new SECTION 1.03 which amends Section 41.003,
Education Code, to include among other enumerated provisions, the authority
of a district with a wealth per student that exceeds the equalized level to
educate, rather than contract for the education of, nonresident students as
provided by Subchapter E, in order to achieve the equalized wealth level. 

This substitute adds new SECTION 1.04 which amends Subchapter A, Chapter
41, Education Code, by adding proposed Section 41.0031. For further
explanation please refer to the Section-by-Section Analysis in this
document. 

This substitute adds new SECTION 1.05 which amends Section 41.004(a),
Education Code, to include the provision to specify that the commissioner
use the estimate of enrollment under Section 42.254, Education Code, when
being required to review the wealth per student of school districts in the
state. 

This substitute adds new SECTION 1.06 which amends Section 41.093,
Education Code, by adding Subsection (c), to provide that the cost of an
attendance credit for a school district is computed using the final tax
collections of the district. 

This substitute adds new SECTION 1.07 which amends Subchapter E, Chapter
41, Education Code, by adding proposed Section 41.124. For further
explanation please refer to the Section-by-Section Analysis in this
document. 

This substitute adds new SECTION 1.08 which amends the heading to
Subchapter E, Chapter 41, Education Code, as follows: 

SUBCHAPTER E. New Heading: EDUCATION OF NONRESIDENT STUDENTS

This substitute adds new SECTION 1.09 which amends Section 42.007(d),
Education Code, to provide that the biennial study on the funding elements
must include a determination of the projected cost to the state in the next
biennium of ensuring the ability of each school district to maintain
existing programs without increasing property tax rates. 

This substitute redesignates SECTION 3 from the original as SECTION 1.10 of
the substitute, and modifies the proposed amendment to Section 42.101,
Education Code, to provide that for each student in average daily
attendance a district is entitled to an allotment of $2,537, rather than
$2,435. 

This substitute redesignates SECTION 4 from the original as SECTION 1.11 of
the substitute. 

This substitute adds new SECTION 1.12 which amends Section 42.152,
Education Code, by adding proposed Subsections (s) and (t). For further
explanation please refer to the Section-by-Section Analysis. 

This substitute redesignates SECTION 6 from the original as SECTION 1.13 of
the substitute. This substitute modifies proposed Section 42.158, Education
Code, to provide that a school district is entitled to an allotment of
$400, rather than $500, for each student in average daily attendance at the
facility, for the first school year in which the student attends a new
instructional facility.  This substitute also provides that a school
district, for the second year in which students attend that instructional
facility, is entitled to an allotment of $400, rather than $500, for each
additional student in average daily attendance at the facility.   This
substitute also prohibits the amount appropriated for allotments from
exceeding $40 million, rather than $50 million, in a school year.  

 This substitute deletes SECTION 7 (Section 42.251(a), Education Code) from
the original bill which provided 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.  

This substitute redesignates SECTION 8 (Section 42.2511, Education Code)
from the original bill to SECTION 1.14 of the substitute. This substitute
changes the title of the section from "Additional State Aid for 1999-2000
and 2000-2001 School Years" to "Additional State Aid for Homestead
Exemption." This substitute deletes proposed Subsection (b), which provided
that this section expires September 1, 1999. Makes changes to conform to
the removal of certain school years from the section title. Makes
conforming and nonsubstantive changes. 

This substitute adds new SECTION 1.15 which amends Subchapter E, Chapter
42, Education Code, by adding proposed Sections 42.2512 and 42.2513. For
further explanation please refer to the Section-by-Section Analysis in this
document. 

This substitute adds new SECTION 1.16 which amends Subchapter E, Chapter
42, Education Code, by adding proposed Section 42.2514, effective September
1, 2001. For further explanation please refer to the Section-by-Section
Analysis in this document. 

This substitute redesignates SECTION 9 of the original as SECTION 1.17 of
the substitute, which modifies the original by amending Subchapter E,
Chapter 42, Education Code, by adding proposed Section 42.2522 in addition
to Section 42.2521. Proposed Section 42.2521 requires, rather than
authorizes, the commissioner, for purposes of Chapter 46, in addition to
Chapter 41 (Equalized Wealth Value), Education Code, and this chapter, and
to the extent money specifically authorized to be used under this section
is available, to adjust the taxable value of property in 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
to reflect the current year taxable values.  

Proposed Subsection (b) of the substitute deletes language from the
original which authorized 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. This substitute also requires, rather than
authorizes, 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.   

Proposed Subsection (c) in the substitute adds the provision that a
decision of the commissioner is prohibited from being repealed. This
substitute also deletes text requiring the commissioner to first apply
available funds to the purposes of Subsection (a) and then to Subsection
(b). This substitute deletes text providing 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. 

For an explanation of proposed Section 42.2522, Education Code, please
refer to the Section-bySection Analysis in this document.  

This substitute redesignates SECTION 10 from the original as SECTION 1.18
of the substitute. Rather than amending Sections 42.253(a) and (c) and
adding Subsection (e-1), this substitute amends Section 42.253(e) and adds
Subsection (e-1). Subsections (a) and (c) required the commissioner to
determine, for each school year, the amount of money to which a district is
entitled under Subchapter I, Education Code, and made a conforming change.
For an explanation of the amendments to Subsection (e) please refer to the
Section-by-Section Analysis in this document.  

Proposed Subsection (e-1) of the substitute requires the commissioner, for
the 1999-2000 and 2000-2001 school years, to recompute the limit authorized
under Subsection (e) for each  school district to be a rate that would
entitle the district to an amount of state and local funds per weighted
student in the current year, using a guaranteed level of state and local
funds per cent of tax effort under Section 42.302 of $23.10, equal to the
amount of state and local funds to which the district would have been
entitled under this chapter for the current school year if there had been
no change in law. This substitute requires the commissioner, for the
purposes of this subsection, to base the determination of a district's
entitlement under prior law on the district's maximum tax rate for the
1999-2000 school year under Subsection (e) and the funding elements for
this chapter as it existed on May 31, 1999. The original bill required 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. This substitute
provides that the commissioner's determination, rather than decision, under
this subsection is final and is prohibited from being appealed.  This
substitute provides that Subsection (e-1) expires on September 1, 2001.   

This substitute removes SECTION 11 of the original which amended 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.
This section provided 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.  

This substitute redesignates SECTION 12 (Section 42.302(a), Education Code)
of the original to SECTION 1.19 of the substitute. This substitute also
removes the effective date for this SECTION.  
This substitute modifies the definitions of "GL" and "WADA."

This substitute adds new SECTION 1.20, which amends Section 42.303,
Education Code. For further explanation please refer to the
Section-by-Section Analysis in this document. 

This substitute removes SECTION 13 of the original bill, which added
Subchapter I, Chapter 42, Education Code, relating to the allotment of
funds to school districts.  

This substitute redesignates SECTION 14 of the original to SECTION 1.21 of
the substitute. This substitute removes language added to the definition of
"ADA." 

This substitute removes SECTION 15 of the original, which amended Section
46.006, Education Code, relating to a district's wealth per student. 

This substitute removes SECTION 16 of the original, which amended
Subchapter B, Chapter 21, Education Code, by adding Section 21.0481
relating to master reading teacher certification. 

This substitute combines and redesignates SECTIONS 17 (Section 21.401,
Education Code) and 19 (Section 21.402, Education Code) of the original to
SECTION 1.22 of the substitute.  For further explanation please refer to
the Section-by-Section Analysis in this document. 

This substitute removes SECTION 18 of the original which would have amended
Section 21.402, Education Code, to add Subsections (a-1) and (a-2),
effective September 1, 1999, to set forth a minimum monthly salary for a
teacher or full-time librarian and provided an expiration date for these
subsections. 

This substitute removes SECTION 20 of the original bill, relating Section
42.254(b), Education Code, and to notification of each school district by
the commissioner of state funds available and to the school district's use
of the funds. 

This substitute removes SECTION 21 of the original bill, which amended
Subchapter I, Chapter 21, Education Code, by adding Section 21.410,
relating to a master reading teacher grant program.  

This substitute adds new SECTION 1.23, which amends Sections 21.403(a) and
(c), Education Code,  to make conforming changes. 

This substitute redesignates SECTION 22 of the original to SECTION 1.24 of
the substitute. 

This substitute removes SECTION 23 of the original, which amended Section
39.023, Education Code, by adding Subsection (l), relating to the
prohibition of 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.  

This substitute removes SECTION 24 of the original, which amended Section
44.004, Education Code, relating to notice of budget and tax rate meeting
and budget adoption. 

This substitute adds new SECTION 1.25, which amends Section 30.102(b),
Education Code, to make conforming changes. 

This substitute adds new SECTION 1.26, which amends Sections 45.104(a) and
(c), Education Code. For further explanation please refer to the
Section-by-Section Analysis in this document. 

This substitute adds new SECTION 1.27, which amends Sections 45.108(a),
(b), and (d), Education Code. For further explanation please refer to the
Section-by-Section Analysis in this document. 

SECTION 1.28 of the substitute is redesignated from SECTION 25 of the
original, which amends Section 403.302, Government Code.  The original
amended Subsections (h) and (i) of this section, while the substitute
amends Subsections (d) and (h) of this section, and adds Subsection (j).
Subsection (d) of the substitute includes in the definition of "taxable
value" the market value of all taxable property less one-half of the total
dollar amount of any residence homestead exemptions granted under Section
11.13(n) (Residence Homestead), Tax Code, in the year that is the subject
of the study for each school district.  

Subsection (j), as added by the substitute, requires the comptroller to
certify to the commissioner certain final values for each district computed
in a certain manner for purposes of Section 42.2522, Education Code. 

SECTIONS 26-32 of the original are deleted.  These SECTIONS relate to the
following, respectively:   

_the inclusion of certain stipends paid to teachers in the definition of
"salary and wages"; 
_increasing the multiplier in the formula by which the standard service
retirement annuity is computed and prohibiting the retirement system from
withholding a monthly benefit payment if the retiree is employed in a Texas
public educational institution in a certain capacity; 
_increasing the percentage of the amount a member of the retirement system
would have received on a monthly basis under a standard service retirement
annuity; 
_redefining "rollback tax rate";
_including certain provisions for a school district with respect to tax
rates; and  
_requiring a district to provide notice of a public hearing on a tax
increase. 

SECTIONS 1.29-1.31 are added by the substitute.  For an analysis of these
new sections, please see the Section-by-Section Analysis in this document.

SECTION 1.32 of the substitute is redesignated from SECTION 33 of the
original.  The original amended Section 26.08, Tax Code by amending
Subsection (i) and adding Subsections (j) and (k), while the substitute
amends Subsection (i) and adds Subsections (j)-(n), as follows: 

Subsection (i) is modified in the substitute to reinstate the original
calculation of the tax rate to $0.08 per $100, instead of $0.06 per $100,
as applicable to this subsection. 
 
Subsection (j) of the substitute is comprised of new text, and Subsection
(j) of the original is redesignated to Subsection (l) of the substitute.
For more information, please see the Section-bySection Analysis in this
document. 

Subsection (k) of the substitute is comprised of new text, and Subsection
(k) of the original is redesignated to Subsection (n) of the substitute
with conforming changes.  For more information, please see the
Section-by-Section Analysis in this document. 

Subsection (l) of the substitute is redesignated from Subsection (j) of the
original and makes modifications with respect to the calculation of the sum
of a district's rollback tax rate for purposes of this section for the 1999
tax year. 

Subsection (m) of the substitute is comprised of new text.  For more
information, please see the Section-by-Section Analysis in this document. 

SECTIONS 1.33 and 1.34 of the substitute are comprised of new text.  For
more information, please see the Section-by-Section Analysis in this
document. 

SECTIONS 35-39 of the original are deleted. These sections deal with
procedural issues pertinent to the original Act. 

ARTICLE 2 (Program Improvements and Social Promotion) of the substitute is
comprised of new text.  For more information, please see the
Section-by-Section Analysis in this document. 

ARTICLE 3 (Repealer; Effective Date; Emergency) of the substitute is
created as a new Article with sections that are redesignated from the
original bill, as follows: 

SECTION 3.01 of the substitute is redesignated from SECTION 34 of the
original bill.  The substituted section adds the following  to those
sections and subsections to be repealed:  Section 8.121(b), Education Code;
Section 41.002(c), Education Code; Section 42.102, Education Code; and
Section 403.302(i), Government Code.  Please see the Section-by-Section
Analysis in this document for more details concerning these added sections
and subsections.  

SECTIONS 3.02 (effective date)  and 3.03 (emergency clause) of the
substitute are redesignated from SECTIONS 39 and 40 of the original,
respectively.