By Hochberg                                           H.B. No. 3558
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the method by which allotments are reduced to fund
 1-3     certain programs within the foundation school programs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 42, Subchapter C, Education Code, shall
 1-6     be amended by adding Section 42.158.:
 1-7           Section 42.158.  Reduction in Allotments.  (a)  The
 1-8     commissioner shall reduce allotments as directed by this section or
 1-9     by appropriation for the purpose of funding specific programs in a
1-10     manner which is consistent with the methodology for a shortfall in
1-11     appropriation under section 42.253(h).  A reduction in allotments
1-12     under this section shall not reduce the computation of weighted
1-13     students for purposes of subchapter F, but shall reduce the
1-14     computation of weighted students for purposes of Chapter 41, to the
1-15     extent necessary to implement this section.
1-16           (b)  To the extent a reduction in allotments under this
1-17     section increases the amount of receipts appropriated to the
1-18     Foundation School Program under Chapter 41, the commissioner shall
1-19     transfer that amount to the program for which a reduction in
1-20     allotments is authorized.
1-21           (c)  The commissioner may retain a portion of the total
 2-1     amount allotted under Section 42.152 that the commissioner
 2-2     considers appropriate to finance intensive accelerated instruction
 2-3     programs and study guides provided under Sections 39.024(b) and
 2-4     (c).
 2-5           (d)  From the total amount of funds appropriated for
 2-6     allotments under Section 42.152, the commissioner shall, each
 2-7     fiscal year, withhold an amount to be determined by the
 2-8     commissioner, but not less than $10,000,000, and distribute that
 2-9     amount for programs under Section 29.085.  In distributing those
2-10     funds, preference shall be given to a school district that received
2-11     funds for a program under Section 29.085 for the preceding school
2-12     year.  The program established under that section is required only
2-13     in school districts in which the program is financed by funds
2-14     distributed under Section 42.152 and any other funds available for
2-15     the program.
2-16           (e)  The commissioner shall coordinate the funds withheld
2-17     under (d) and any other funds available for the program and shall
2-18     distribute those funds.  To receive funds for the program, a school
2-19     district must apply to the commissioner.  The commissioner shall
2-20     give a preference to the districts that apply that have the highest
2-21     concentration of students who are pregnant or who are parents.
2-22           (f)  From the total amount of funds appropriated for
2-23     allotments under Section 42.152, the commissioner shall, each
2-24     fiscal year, withhold $7,500,000 or a greater amount as determined
2-25     in the General Appropriations Act and distribute that amount for
 3-1     programs under Subchapter A, Chapter 33.  A program established
 3-2     under that subchapter under that subchapter is required only in
 3-3     school districts in which the program is financed by funds
 3-4     distributed under Section 42.152 or other funds distributed by the
 3-5     commissioner for a program under that subchapter.   In distributing
 3-6     those funds, preference shall be given to a school district that
 3-7     received funds for a program under this subsection for the
 3-8     preceding school year.
 3-9           (g)  The commissioner shall coordinate the funds withheld
3-10     under Subsection (f) and any other funds available for the program
3-11     and shall distribute those funds.  To receive funds for the
3-12     program, a school district must apply to the commissioner.  The
3-13     shall give a preference to the districts that apply that have the
3-14     highest concentration of at-risk students.  For each school year
3-15     that a school district receives funds under Section 42.152, the
3-16     district shall allocate an amount of local funds for school
3-17     guidance and counseling programs that is equal to or greater than
3-18     the amount of local funds that the school district allocated for
3-19     that purpose during the preceding school year.
3-20           (h)  From the total amount of funds appropriated for
3-21     allotments in Section 42.152, the commissioner shall, each fiscal
3-22     year, withhold the amount of $2.5 million for transfer to the
3-23     investment capital fund under Section 7.024.
3-24           (i)  From the total amount of funds appropriated for
3-25     allotments in Section 42.152, the commissioner may withhold an
 4-1     amount not exceeding $1 million each fiscal year and distribute the
 4-2     funds to school districts that incur unanticipated expenditures
 4-3     resulting from a significant increase in the enrollment of students
 4-4     who do not have disabilities and who reside in residential
 4-5     placement facilities.
 4-6           (j)  The commissioner shall:
 4-7                 (1)  withhold, from the total amount of funds
 4-8     appropriated for allotments under Section 42.152, an amount
 4-9     sufficient to finance extended year programs under Section 29.082
4-10     not to exceed five percent of the amounts allocated under Section
4-11     42.152; and
4-12                 (2)  give priority to applicants for extended year
4-13     programs to districts with high concentrations of educationally
4-14     disadvantaged students.
4-15           (k)  After each district has received allotted funds for
4-16     funds defined in Section 42.156, the State Board of Education may
4-17     use up to $500,000 of the funds allocated under this section for
4-18     programs such as MATHCOUNTS, Future Problem Solving, Odyssey of the
4-19     Mind, and Academic Decathlon, as long as these funds are used to
4-20     train personnel and provide program services.  To be eligible for
4-21     funding under this subsection, a program must be determined by the
4-22     State Board of Education to provide services that are effective and
4-23     consistent with the state plan for gifted and talented education.
4-24           SECTION 2.  Subsections (e), (f), (g), (h), (i), (j), (l),
4-25     (m), (n), (o), (p) in Section 42.152, Education Code, shall be
 5-1     repealed.
 5-2           SECTION 3.  Subsection (f) in Section 42.156, Education Code
 5-3     shall be repealed.
 5-4           SECTION 4.  This Act shall take effect September 1, 1999.
 5-5           SECTION 5.  The importance of this legislation and the
 5-6     crowded condition of the calendars in both houses create an
 5-7     emergency and an imperative public necessity that the
 5-8     constitutional rule requiring bills to be read on three several
 5-9     days in the each house be suspended, and this rule is hereby
5-10     suspended, and that this Act take effect and be in force according
5-11     to its terms, and it is so enacted.