By Hardcastle                                         H.B. No. 2326
         76R7876 ESH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the school district equalized wealth level.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 41.001(3), Education Code, is amended to
 1-5     read as follows:
 1-6                 (3)  "Weighted average daily attendance" has the
 1-7     meaning assigned by Section 42.302[, except that:]
 1-8                       [(A)  weighted average daily attendance is
 1-9     computed using the estimate of average daily attendance under
1-10     Section 42.254; and]
1-11                       [(B)  the estimate under Section 42.254 is
1-12     modified by including a student residing in a school district but
1-13     attending school in another district in the estimate for the
1-14     district of the student's residence and not of the district in
1-15     which the student attends school].
1-16           SECTION 2.  Section 41.003, Education Code, is amended to
1-17     read as follows:
1-18           Sec. 41.003.  OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL.  A
1-19     district with a wealth per student that exceeds the equalized
1-20     wealth level may take any combination of the following actions to
1-21     achieve the equalized wealth level:
1-22                 (1)  consolidation with another district as provided by
1-23     Subchapter B;
1-24                 (2)  detachment of territory as provided by Subchapter
 2-1     C;
 2-2                 (3)  purchase of average daily attendance credit as
 2-3     provided by Subchapter D;
 2-4                 (4)  educating [contracting for the education of]
 2-5     nonresident students as provided by Subchapter E; or
 2-6                 (5)  tax base consolidation with another district as
 2-7     provided by Subchapter F.
 2-8           SECTION 3.  Subchapter A, Chapter 41, Education Code, is
 2-9     amended by adding Section 41.0031 to read as follows:
2-10           Sec. 41.0031.  INCLUSION OF ATTENDANCE CREDITS AND
2-11     NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.  In determining
2-12     whether a school district has a wealth per student less than or
2-13     equal to the equalized wealth level, the commissioner shall use:
2-14                 (1)  the district's final weighted average daily
2-15     attendance; and
2-16                 (2)  the number of attendance credits a district
2-17     purchases under Subchapter D or the number of nonresident students
2-18     a district educates under Subchapter E for a school year.
2-19           SECTION 4.  Section 41.004(a), Education Code, is amended to
2-20     read as follows:
2-21           (a)  Not later than July 15 of each year, using the estimate
2-22     of enrollment under Section 42.254, the commissioner shall review
2-23     the wealth per student of school districts in the state and shall
2-24     notify:
2-25                 (1)  each district with wealth per student exceeding
2-26     the equalized wealth level;
2-27                 (2)  each district to which the commissioner proposes
 3-1     to annex property detached from a district notified under
 3-2     Subdivision (1), if necessary, under Subchapter G; and
 3-3                 (3)  each district to which the commissioner proposes
 3-4     to consolidate a district notified under Subdivision (1), if
 3-5     necessary, under Subchapter H.
 3-6           SECTION 5.  Section 41.093, Education Code, is amended by
 3-7     adding Subsection (c) to read as follows:
 3-8           (c)  The cost of an attendance credit for a school district
 3-9     is computed using the final tax collections of the district.
3-10           SECTION 6.  Subchapter E, Chapter 41, Education Code, is
3-11     amended by adding Section 41.124 to read as follows:
3-12           Sec. 41.124.  TRANSFERS.  (a)  The board of trustees of a
3-13     school district with a wealth per student that exceeds the
3-14     equalized wealth level may reduce the district's wealth per student
3-15     by serving nonresident students who transfer to the district and
3-16     are educated by the district but who are not charged tuition.  A
3-17     district that exercises the option under this subsection is not
3-18     required to execute an agreement with the school district in which
3-19     a transferring student resides and must certify to the commissioner
3-20     that the district has not charged or received tuition for the
3-21     transferring students.
3-22           (b)  A school district with a wealth per student that exceeds
3-23     the equalized wealth level that pays tuition to another school
3-24     district for the education of students that reside in the district
3-25     may apply the amount of tuition paid toward the cost of the option
3-26     chosen by the district to reduce its wealth per student.  The
3-27     amount applied under this subsection may not exceed the amount
 4-1     determined under Section 41.093 as the cost of an attendance credit
 4-2     for the district.  The commissioner may require any reports
 4-3     necessary to document the tuition payments.
 4-4           (c)  A school district that receives tuition for a student
 4-5     from a school district with a wealth per student that exceeds the
 4-6     equalized wealth level may not claim attendance for that student
 4-7     for purposes of Chapters 42 and 46.
 4-8           SECTION 7.  The heading to Subchapter E, Chapter 41,
 4-9     Education Code, is amended to read as follows:
4-10            SUBCHAPTER E. [CONTRACT FOR] EDUCATION OF NONRESIDENT
4-11                                  STUDENTS
4-12           SECTION 8.  This Act applies beginning with the 1999-2000
4-13     school year.
4-14           SECTION 9.  The importance of this legislation and the
4-15     crowded condition of the calendars in both houses create an
4-16     emergency and an imperative public necessity that the
4-17     constitutional rule requiring bills to be read on three several
4-18     days in each house be suspended, and this rule is hereby suspended,
4-19     and that this Act take effect and be in force from and after its
4-20     passage, and it is so enacted.