AN ACT
 1-1     relating to public school finance, property tax relief, and public
 1-2     education; making an appropriation.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4             ARTICLE 1.  SCHOOL FINANCE AND PROPERTY TAX RELIEF
 1-5           SECTION 1.01.  Subdivision (3), Section 41.001, Education
 1-6     Code, is amended to read as follows:
 1-7                 (3)  "Weighted average daily attendance" has the
 1-8     meaning assigned by Section 42.302[, except that:]
 1-9                       [(A)  weighted average daily attendance is
1-10     computed using the estimate of average daily attendance under
1-11     Section 42.254; and]
1-12                       [(B)  the estimate under Section 42.254 is
1-13     modified by including a student residing in a school district but
1-14     attending school in another district in the estimate for the
1-15     district of the student's residence and not of the district in
1-16     which the student attends school].
1-17           SECTION 1.02.  Section 41.002, Education Code, is amended by
1-18     amending Subsections (a), (b), (e), and (f) and adding Subsection
1-19     (g) to read as follows:
1-20           (a)  A school district may not have a wealth per student that
1-21     exceeds $295,000 [$280,000].
1-22           (b)  For [Except as provided by Subsection (c), for] purposes
1-23     of this chapter, the commissioner shall adjust, in accordance with
1-24     Section 42.2521 [by the amount of the decline], the taxable values
 2-1     of a school district that, due to factors beyond the control of the
 2-2     board of trustees, experiences a rapid decline [from the preceding
 2-3     year] in the tax base used in calculating taxable values [that is
 2-4     beyond the control of the board of trustees of the district].
 2-5           (e)  Notwithstanding Subsection (a), and except as provided
 2-6     by Subsection (g) [for the 1997-1998, 1998-1999, and 1999-2000
 2-7     school years], in accordance with a determination of the
 2-8     commissioner, the wealth per student that a school district may
 2-9     have after exercising an option under Section 41.003(2) or (3) may
2-10     not be less than the amount needed to maintain state and local
2-11     revenue in an amount equal to state and local revenue per weighted
2-12     student for maintenance and operation of the district for the
2-13     1992-1993 school year less the district's current year distribution
2-14     per weighted student from the available school fund, other than
2-15     amounts distributed under Chapter 31, if the district imposes an
2-16     effective tax rate for maintenance and operation of the district
2-17     equal to the greater of the district's current tax rate or $1.50 on
2-18     the $100 valuation of taxable property.  [This subsection expires
2-19     September 1, 2000.]
2-20           (f)  For purposes of Subsection (e), a school district's
2-21     effective tax rate is determined by dividing the total amount of
2-22     taxes collected by the district for the applicable school year less
2-23     any amounts paid into a tax increment fund under Chapter 311, Tax
2-24     Code, by the quotient of the district's taxable value of property,
2-25     as determined under Subchapter M, Chapter 403, Government Code,
2-26     divided by 100.  [This subsection expires September 1, 2000.]
 3-1           (g)  The wealth per student that a district may have under
 3-2     Subsection (e) is adjusted as follows:
 3-3              AWPS = WPS X (((EWL/280,000 - 1) X DTR/1.5) + 1)
 3-4     where:
 3-5           "AWPS" is the district's wealth per student;
 3-6           "WPS" is the district's wealth per student determined under
 3-7     Subsection (e);
 3-8           "EWL" is the equalized wealth level; and
 3-9           "DTR" is the district's adopted maintenance and operations
3-10     tax rate for the current school year.
3-11           SECTION 1.03.  Section 41.003, Education Code, is amended to
3-12     read as follows:
3-13           Sec. 41.003.  OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL.  A
3-14     district with a wealth per student that exceeds the equalized
3-15     wealth level may take any combination of the following actions to
3-16     achieve the equalized wealth level:
3-17                 (1)  consolidation with another district as provided by
3-18     Subchapter B;
3-19                 (2)  detachment of territory as provided by Subchapter
3-20     C;
3-21                 (3)  purchase of average daily attendance credit as
3-22     provided by Subchapter D;
3-23                 (4)  [contracting for the] education of nonresident
3-24     students as provided by Subchapter E; or
3-25                 (5)  tax base consolidation with another district as
3-26     provided by Subchapter F.
 4-1           SECTION 1.04.  Subchapter A, Chapter 41, Education Code, is
 4-2     amended by adding Section 41.0031 to read as follows:
 4-3           Sec. 41.0031.  INCLUSION OF ATTENDANCE CREDITS AND
 4-4     NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.  In determining
 4-5     whether a school district has a wealth per student less than or
 4-6     equal to the equalized wealth level, the commissioner shall use:
 4-7                 (1)  the district's final weighted average daily
 4-8     attendance; and
 4-9                 (2)  the number of attendance credits a district
4-10     purchases under Subchapter D or the number of nonresident students
4-11     a district educates under Subchapter E for a school year.
4-12           SECTION 1.05.  Subsection (a), Section 41.004, Education
4-13     Code, is amended to read as follows:
4-14           (a)  Not later than July 15 of each year, using the estimate
4-15     of enrollment under Section 42.254, the commissioner shall review
4-16     the wealth per student of school districts in the state and shall
4-17     notify:
4-18                 (1)  each district with wealth per student exceeding
4-19     the equalized wealth level;
4-20                 (2)  each district to which the commissioner proposes
4-21     to annex property detached from a district notified under
4-22     Subdivision (1), if necessary, under Subchapter G; and
4-23                 (3)  each district to which the commissioner proposes
4-24     to consolidate a district notified under Subdivision (1), if
4-25     necessary, under Subchapter H.
4-26           SECTION 1.06.  Section 41.093, Education Code, is amended by
 5-1     adding Subsection (c) to read as follows:
 5-2           (c)  The cost of an attendance credit for a school district
 5-3     is computed using the final tax collections of the district.
 5-4           SECTION 1.07.  Subchapter E, Chapter 41, Education Code, is
 5-5     amended by adding Section 41.124 to read as follows:
 5-6           Sec. 41.124.  TRANSFERS.  (a)  The board of trustees of a
 5-7     school district with a wealth per student that exceeds the
 5-8     equalized wealth level may reduce the district's wealth per student
 5-9     by serving nonresident students who transfer to the district and
5-10     are educated by the district but who are not charged tuition.  A
5-11     district that exercises the option under this subsection is not
5-12     required to execute an agreement with the school district in which
5-13     a transferring student resides and must certify to the commissioner
5-14     that the district has not charged or received tuition for the
5-15     transferring students.
5-16           (b)  A school district with a wealth per student that exceeds
5-17     the equalized wealth level that pays tuition to another school
5-18     district for the education of students that reside in the district
5-19     may apply the amount of tuition paid toward the cost of the option
5-20     chosen by the district to reduce its wealth per student.  The
5-21     amount applied under this subsection may not exceed the amount
5-22     determined under Section 41.093 as the cost of an attendance credit
5-23     for the district.  The commissioner may require any reports
5-24     necessary to document the tuition payments.
5-25           (c)  A school district that receives tuition for a student
5-26     from a school district with a wealth per student that exceeds the
 6-1     equalized wealth level may not claim attendance for that student
 6-2     for purposes of Chapters 42 and 46 and the technology allotment
 6-3     under Section 31.021(b)(2).
 6-4           SECTION 1.08.  The heading to Subchapter E, Chapter 41,
 6-5     Education Code, is amended to read as follows:
 6-6           SUBCHAPTER E.  [CONTRACT FOR] EDUCATION OF NONRESIDENT
 6-7                                  STUDENTS
 6-8           SECTION 1.09.  Subsection (b), Section 42.002, Education
 6-9     Code, is amended to read as follows:
6-10           (b)  The Foundation School Program consists of:
6-11                 (1)  two tiers that in combination provide for:
6-12                       (A)  sufficient financing for all school
6-13     districts to provide a basic program of education that is rated
6-14     academically acceptable or higher under Section 39.072 and meets
6-15     other applicable legal standards; and
6-16                       (B)  substantially equal access to funds to
6-17     provide an enriched program [and additional funds for facilities];
6-18     and
6-19                 (2)  a facilities component as provided by Chapter 46.
6-20           SECTION 1.10.  Subsection (d), Section 42.007, Education
6-21     Code, is amended to read as follows:
6-22           (d)  The board shall conduct a study on the funding elements
6-23     each biennium, as appropriate.  The study must include a
6-24     determination of the projected cost to the state in the next state
6-25     fiscal biennium of ensuring the ability of each school district to
6-26     maintain existing programs without increasing property tax rates.
 7-1           SECTION 1.11.  Section 42.101, Education Code, is amended to
 7-2     read as follows:
 7-3           Sec. 42.101.  BASIC ALLOTMENT.  For each student in average
 7-4     daily attendance, not including the time students spend each day in
 7-5     special education programs in an instructional arrangement other
 7-6     than mainstream or career and technology education programs, for
 7-7     which an additional allotment is made under Subchapter C, a
 7-8     district is entitled to an allotment of $2,537 [$2,387].  A greater
 7-9     amount for any school year may be provided by appropriation.
7-10           SECTION 1.12.  Subchapter B, Chapter 42, Education Code, is
7-11     amended by adding Section 42.106 to read as follows:
7-12           Sec. 42.106.  ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
7-13     OFFERING ALL GRADE LEVELS.  For purposes of this chapter, the
7-14     taxable value of property of a school district that contracts for
7-15     students residing in the district to be educated in another
7-16     district under Section 25.039(a) is adjusted by applying the
7-17     formula:
7-18                           ADPV = DPV - (TN/.015)
7-19     where:
7-20           "ADPV" is the district's adjusted taxable value of property;
7-21           "DPV" is the taxable value of property in the district for
7-22     the preceding tax year determined under Subchapter M, Chapter 403,
7-23     Government Code; and
7-24           "TN" is the total amount of tuition required to be paid by
7-25     the district under Section 25.039 for the school year for which the
7-26     adjustment is made.
 8-1           SECTION 1.13.  Section 42.152, Education Code, is amended by
 8-2     adding Subsections (s) and (t) to read as follows:
 8-3           (s)  A reduction made under this section or the General
 8-4     Appropriations Act in the allotment under this section does not
 8-5     affect the computation of students in weighted average daily
 8-6     attendance for purposes of Subchapter F.
 8-7           (t)  For each year of a state fiscal biennium, the
 8-8     commissioner shall reduce the guaranteed level of state and local
 8-9     funds per weighted student per cent of tax effort under Section
8-10     42.302 by an amount sufficient to reduce state costs in an amount
8-11     equal to the increase in state costs due to the application of
8-12     Subsection (s).  The commissioner shall determine the same
8-13     reduction for each year and shall announce the determination as
8-14     soon as practicable after August 1 preceding the beginning of the
8-15     biennium.  A determination by the commissioner under this section
8-16     is final and may not be appealed.
8-17           SECTION 1.14.  Subchapter C, Chapter 42, Education Code, is
8-18     amended by adding Section 42.158 to read as follows:
8-19           Sec. 42.158.  NEW INSTRUCTIONAL FACILITY ALLOTMENT.  (a)  A
8-20     school district is entitled to an additional allotment as provided
8-21     by this section for operational expenses associated with opening a
8-22     new instructional facility.
8-23           (b)  For the first school year in which students attend a new
8-24     instructional facility, a school district is entitled to an
8-25     allotment of $250 for each student in average daily attendance at
8-26     the facility.  For the second school year in which students attend
 9-1     that instructional facility, a school district is entitled to an
 9-2     allotment of $250 for each additional student in average daily
 9-3     attendance at the facility.
 9-4           (c)  For purposes of this section, the number of additional
 9-5     students in average daily attendance at a facility is the
 9-6     difference between the number of students in average daily
 9-7     attendance in the current year at that facility and the number of
 9-8     students in average daily attendance at that facility in the
 9-9     preceding year.
9-10           (d)  The amount appropriated for allotments under this
9-11     section may not exceed $25 million in a school year.  If the total
9-12     amount of allotments to which districts are entitled under this
9-13     section for a school year exceeds the amount appropriated for
9-14     allotments under this section, the commissioner shall reduce each
9-15     district's allotment under this section in the manner provided by
9-16     Section 42.253(h).
9-17           (e)  A school district that is required to take action under
9-18     Chapter 41 to reduce its wealth per student to the equalized wealth
9-19     level is entitled to a credit, in the amount of the allotments to
9-20     which the district is entitled under this section, against the
9-21     total amount required under Section 41.093 for the district to
9-22     purchase attendance credits.  A school district that is otherwise
9-23     ineligible for state aid under this chapter is entitled to receive
9-24     allotments under this section.
9-25           (f)  The commissioner may adopt rules necessary to implement
9-26     this section.
 10-1          (g)  In this section, "instructional facility" has the
 10-2    meaning assigned by Section 46.001.
 10-3          SECTION 1.15.  Subsection (a), Section 42.251, Education
 10-4    Code, is amended to read as follows:
 10-5          (a)  The sum of the basic allotment under Subchapter B and
 10-6    the special allotments under Subchapter C, computed in accordance
 10-7    with this chapter, constitute the tier one allotments.  The sum of
 10-8    the tier one allotments and[,] the guaranteed yield allotments
 10-9    under Subchapter F, [and assistance provided under the school
10-10    facilities assistance program under Subchapter H,] computed in
10-11    accordance with this chapter, constitute the total cost of the
10-12    Foundation School Program.
10-13          SECTION 1.16.  Section 42.2511, Education Code, is amended to
10-14    read as follows:
10-15          Sec. 42.2511.  [COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
10-16    YEAR;] ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
10-17    (a)  Notwithstanding any other provision of this chapter, [in
10-18    computing state aid for the 1997-1998 school year, a school
10-19    district's taxable value of property under Subchapter M, Chapter
10-20    403, Government Code, is determined as if the increase in the
10-21    homestead exemption under Section 1-b(c), Article VIII, Texas
10-22    Constitution, and the additional limitation on tax increases under
10-23    Section 1-b(d) of that article, as proposed by H.J.R. No. 4, 75th
10-24    Legislature, Regular Session, 1997, had been in effect for the 1996
10-25    tax year.]
10-26          [(b)  For the 1997-1998 and 1998-1999 school years,] a school
 11-1    district is entitled to additional state aid to the extent that
 11-2    state aid under this chapter based on the determination of the
 11-3    school district's taxable value of property as provided under
 11-4    Subchapter M, Chapter 403, Government Code, [by Subsection (a)]
 11-5    does not fully compensate the district for ad valorem tax revenue
 11-6    [that would have been] lost due to the increase in the homestead
 11-7    exemption under Section 1-b(c), Article VIII, Texas Constitution,
 11-8    as proposed by H.J.R. No. 4, 75th Legislature, Regular Session,
 11-9    1997, and the additional limitation on tax increases under Section
11-10    1-b(d), Article VIII, Texas Constitution, as proposed by H.J.R.
11-11    No. 4, 75th Legislature, Regular Session, 1997 [if the increased
11-12    exemption and additional limitation had been in effect for the 1996
11-13    tax year].
11-14          (b)  The commissioner, using information provided by the
11-15    comptroller, shall compute the amount of additional state aid to
11-16    which a district is entitled under this section [subsection].  A
11-17    determination by the commissioner under this section [subsection]
11-18    is final and may not be appealed.
11-19          [(c)  This section expires September 1, 1999.]
11-20          SECTION 1.17.  Subchapter E, Chapter 42, Education Code, is
11-21    amended by adding Sections 42.2512 and 42.2513 to read as follows:
11-22          Sec. 42.2512.  ADDITIONAL STATE AID FOR PROFESSIONAL STAFF
11-23    SALARIES.  (a)  A school district, including a school district that
11-24    is otherwise ineligible for state aid under this chapter, is
11-25    entitled to state aid in an amount, as determined by the
11-26    commissioner, equal to the difference, if any, between:
 12-1                (1)  an amount equal to the product of $3,000
 12-2    multiplied by the number of classroom teachers, full-time
 12-3    librarians, full-time counselors certified under Subchapter B,
 12-4    Chapter 21, and full-time school nurses employed by the district
 12-5    and entitled to a minimum salary under Section 21.402; and
 12-6                (2)  an amount equal to 80 percent of the amount of
 12-7    additional funds to which the district is entitled due to the
 12-8    increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
 12-9    Session, 1999, to:
12-10                      (A)  the equalized wealth level under Section
12-11    41.002;
12-12                      (B)  the basic allotment under Section 42.101;
12-13    and
12-14                      (C)  the guaranteed level of state and local
12-15    funds per weighted student per cent of tax effort under Section
12-16    42.302.
12-17          (b)  A determination by the commissioner under this section
12-18    is final and may not be appealed.
12-19          (c)  The commissioner may adopt rules to implement this
12-20    section.
12-21          Sec. 42.2513.  SALARY TRANSITION AID.  (a)  For the 1999-2000
12-22    and 2000-2001 school years, the commissioner shall increase the
12-23    entitlement under this chapter of a school district that
12-24    experiences additional salary cost resulting from Chapter 592 (H.B.
12-25    No. 4), Acts of the 75th Legislature, Regular Session, 1997, that
12-26    is not fully funded by an amount equal to 20 percent of the amount
 13-1    of additional funds to which the district is entitled due to the
 13-2    increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
 13-3    Session, 1999, to:
 13-4                (1)  the equalized wealth level under Section 41.002;
 13-5                (2)  the basic allotment under Section 42.101; and
 13-6                (3)  the guaranteed level of state and local funds per
 13-7    weighted student per cent of tax effort under Section 42.302.
 13-8          (b)  The amount of additional salary cost shall be computed
 13-9    by determining what the district's salary cost for the 1996-1997
13-10    school year would have been if, for purposes of the minimum salary
13-11    schedule under Section 21.402, as that section existed on September
13-12    1, 1996, the amount appropriated for purposes of the Foundation
13-13    School Program for the 1997-1998 state fiscal year were increased
13-14    by $520 million and comparing that cost to the amount the district
13-15    was actually required to pay under Section 21.402.  For this
13-16    purpose, the commissioner shall use 1996-1997 employment and salary
13-17    data as reported through the Public Education Information
13-18    Management System (PEIMS).
13-19          (c)  The commissioner shall determine the amount of
13-20    additional state aid under this section to which each school
13-21    district is entitled.  A decision of the commissioner under this
13-22    section is final and may not be appealed.
13-23          (d)  This section expires September 1, 2001.
13-24          SECTION 1.18. Subchapter E, Chapter 42, Education Code, is
13-25    amended by adding Sections 42.2521 and 42.2522 to read as follows:
13-26          Sec. 42.2521.  ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
 14-1    OF PROPERTY.  (a)  For purposes of Chapters 41 and 46 and this
 14-2    chapter, and to the extent money specifically authorized to be used
 14-3    under this section is available, the commissioner shall adjust the
 14-4    taxable value of property in a school district that, due to factors
 14-5    beyond the control of the board of trustees, experiences a rapid
 14-6    decline in the tax base used in calculating taxable values in
 14-7    excess of four percent of the tax base used in the preceding year.
 14-8          (b)  To the extent that a sufficient amount of money is not
 14-9    available to fund all adjustments under this section, the
14-10    commissioner shall reduce adjustments in the manner provided by
14-11    Section 42.253(h) so that the total amount of adjustments equals
14-12    the amount of money available to fund the adjustments.
14-13          (c)  A decision of the commissioner under this section is
14-14    final and may not be appealed.
14-15          Sec. 42.2522.  ADJUSTMENT FOR OPTIONAL HOMESTEAD EXEMPTION.
14-16    (a)  In any school year, the commissioner may not provide funding
14-17    under this chapter based on a school district's taxable value of
14-18    property computed in accordance with Section 403.302(d)(2),
14-19    Government Code, unless:
14-20                (1)  funds are specifically appropriated for purposes
14-21    of this section; or
14-22                (2)  the commissioner determines that the total amount
14-23    of state funds appropriated for purposes of the Foundation School
14-24    Program for the school year exceeds the amount of state funds
14-25    distributed to school districts in accordance with Section 42.253
14-26    based on the taxable values of property in school districts
 15-1    computed in accordance with Section 403.302(d), Government Code,
 15-2    without any deduction for residence homestead exemptions granted
 15-3    under Section 11.13(n), Tax Code.
 15-4          (b)  In making a determination under Subsection (a)(2), the
 15-5    commissioner shall:
 15-6                (1)  notwithstanding Section 42.253(b), reduce the
 15-7    entitlement under this chapter of a school district whose final
 15-8    taxable value of property is higher than the estimate under Section
 15-9    42.254 and make payments to school districts accordingly; and
15-10                (2)  give priority to school districts that, due to
15-11    factors beyond the control of the board of trustees, experience a
15-12    rapid decline in the tax base used in calculating taxable values in
15-13    excess of four percent of the tax base used in the preceding year.
15-14          (c)  In the first year of a state fiscal biennium, before
15-15    providing funding as provided by Subsection (a)(2), the
15-16    commissioner shall ensure that sufficient appropriated funds for
15-17    purposes of the Foundation School Program are available for the
15-18    second year of the biennium, including funds to be used for
15-19    purposes of Section 42.2521.
15-20          (d)  If the commissioner determines that the amount of funds
15-21    available under Subsection (a)(1) or (2) does not at least equal
15-22    the total amount of state funding to which districts would be
15-23    entitled if state funding under this chapter were based on the
15-24    taxable values of property in school districts computed in
15-25    accordance with Section 403.302(d)(2), Government Code, the
15-26    commissioner may, to the extent necessary, provide state funding
 16-1    based on a uniform lesser fraction of the deduction under Section
 16-2    403.302(d)(2), Government Code.
 16-3          (e)  The commissioner shall notify school districts as soon
 16-4    as practicable as to the availability of funds under this section.
 16-5    For purposes of computing a rollback tax rate under Section 26.08,
 16-6    Tax Code, a district shall adjust the district's tax rate limit in
 16-7    the manner provided by comptroller rule to reflect assistance
 16-8    received under this section.
 16-9          SECTION 1.19.  Section 42.253, Education Code, is amended by
16-10    adding Subsections (e-1) and (e-2) to read as follows:
16-11          (e-1)  For the 1999-2000 and 2000-2001 school years, the
16-12    commissioner shall recompute the limit authorized under Subsection
16-13    (e) for each school district to be a rate that would entitle the
16-14    district to an amount of state and local funds per weighted student
16-15    in the current year, using a guaranteed level of state and local
16-16    funds per cent of tax effort under Section 42.302 of $23.10, equal
16-17    to the amount of state and local funds to which the district would
16-18    have been entitled under this chapter for the current school year
16-19    if there had been no change in law.  For purposes of this
16-20    subsection, the commissioner shall base the determination of a
16-21    district's entitlement under prior law on the district's maximum
16-22    tax rate for the 1999-2000 school year under Subsection (e) and the
16-23    funding elements for this chapter as it existed on May 31, 1999.
16-24          (e-2)  The commissioner may adopt rules necessary to
16-25    administer Subsection (e-1).  A determination of the commissioner
16-26    under Subsection (e-1) is final and may not be appealed.
 17-1    Subsection (e-1) and this subsection expire September 1, 2001.
 17-2          SECTION 1.20.  Sections 42.301, 42.302, and 42.303, Education
 17-3    Code, are amended to read as follows:
 17-4          Sec. 42.301.  PURPOSE.  The purpose of the guaranteed yield
 17-5    component of the Foundation School Program is to provide each
 17-6    school district with the opportunity to provide the basic program
 17-7    and to supplement that program at a level of its own choice [and
 17-8    with access to additional funds for facilities].  An allotment
 17-9    under this subchapter may be used for any legal purpose other
17-10    than[, including] capital outlay or [and] debt service.
17-11          Sec. 42.302.  ALLOTMENT.  (a)  Each school district is
17-12    guaranteed a specified amount per weighted student in state and
17-13    local funds for each cent of tax effort over that required for the
17-14    district's local fund assignment up to the maximum level specified
17-15    in this subchapter.  The amount of state support, subject only to
17-16    the maximum amount under Section 42.303, is determined by the
17-17    formula:
17-18                    GYA = (GL X WADA X DTR X 100) - LR
17-19    where:
17-20          "GYA" is the guaranteed yield amount of state funds to be
17-21    allocated to the district;
17-22          "GL" is the dollar amount guaranteed level of state and local
17-23    funds per weighted student per cent of tax effort, which is $24.99
17-24    [$21] or a greater amount for any year provided by appropriation;
17-25          "WADA" is the number of students in weighted average daily
17-26    attendance, which is calculated by dividing the sum of the school
 18-1    district's allotments under Subchapters B and C, less any allotment
 18-2    to the district for transportation, any allotment under Section
 18-3    42.158, and 50 percent of the adjustment under Section 42.102, by
 18-4    the basic allotment for the applicable year;
 18-5          "DTR" is the district enrichment [and facilities] tax rate of
 18-6    the school district, which is determined by subtracting the amounts
 18-7    specified by Subsection (b) from the total amount of maintenance
 18-8    and operations taxes collected by the school district for the
 18-9    applicable school year and dividing the difference by the quotient
18-10    of the district's taxable value of property as determined under
18-11    Subchapter M, Chapter 403, Government Code, or, if applicable,
18-12    under Section 42.2521, divided by 100; and
18-13          "LR" is the local revenue, which is determined by multiplying
18-14    "DTR" by the quotient of the district's taxable value of property
18-15    as determined under Subchapter M, Chapter 403, Government Code, or,
18-16    if applicable, under Section 42.2521, divided by 100.
18-17          (b)  In computing the district enrichment [and facilities]
18-18    tax rate of a school district, the total amount of maintenance and
18-19    operations taxes collected by the school district does not include
18-20    the amount of:
18-21                (1)  the district's local fund assignment under Section
18-22    42.252; or
18-23                (2)  [taxes collected to pay the local share of the
18-24    cost of an instructional facility for which the district receives
18-25    state assistance under Chapter 46; or]
18-26                [(3)]  taxes paid into a tax increment fund under
 19-1    Chapter 311, Tax Code.
 19-2          Sec. 42.303.  LIMITATION ON ENRICHMENT [AND FACILITIES] TAX
 19-3    RATE.  The district enrichment [and facilities] tax rate ("DTR")
 19-4    under Section 42.302 may not exceed $0.64 per $100 of valuation, or
 19-5    a greater amount for any year provided by appropriation.
 19-6          SECTION 1.21.  The heading to Chapter 46, Education Code, is
 19-7    amended to read as follows:
 19-8           CHAPTER 46.  ASSISTANCE WITH INSTRUCTIONAL FACILITIES
 19-9                 AND PAYMENT OF EXISTING DEBT [ALLOTMENT]
19-10          SECTION 1.22.  Sections 46.001 through 46.011, Education
19-11    Code, are designated as Subchapter A, Chapter 46, Education Code,
19-12    and a new subchapter heading is added to read as follows:
19-13             SUBCHAPTER A.  INSTRUCTIONAL FACILITIES ALLOTMENT
19-14          SECTION 1.23.  Sections 46.001 and 46.002, Education Code,
19-15    are amended to read as follows:
19-16          Sec. 46.001.  DEFINITION.  In this subchapter [chapter],
19-17    "instructional facility" means real property, an improvement to
19-18    real property, or a necessary fixture of an improvement to real
19-19    property that is used predominantly for teaching the curriculum
19-20    required under Section 28.002.
19-21          Sec. 46.002.  RULES.  (a)  The commissioner may adopt rules
19-22    for the administration of this subchapter [chapter].
19-23          (b)  The commissioner's rules may limit the amount of an
19-24    allotment under this subchapter [chapter] that is to be used to
19-25    construct, acquire, renovate, or improve an instructional facility
19-26    that may also be used for noninstructional or extracurricular
 20-1    activities.
 20-2          SECTION 1.24.  Subsections (a) and (g), Section 46.003,
 20-3    Education Code, are amended to read as follows:
 20-4          (a)  For each year, except as provided by Sections 46.005 and
 20-5    46.006, a school district is guaranteed a specified amount per
 20-6    student in state and local funds for each cent of tax effort, up to
 20-7    the maximum rate under Subsection (b), to pay the principal of and
 20-8    interest on eligible bonds issued to construct, acquire, renovate,
 20-9    or improve an instructional facility.  The amount of state support
20-10    is determined by the formula:
20-11             FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
20-12    where:
20-13          "FYA" is the guaranteed facilities yield amount of state
20-14    funds allocated to the district for the year;
20-15          "FYL" is the dollar amount guaranteed level of state and
20-16    local funds per student per cent of tax effort, which is $35 [$28]
20-17    or a greater amount for any year provided by appropriation;
20-18          "ADA" is the greater of the number of students in average
20-19    daily attendance, as determined under Section 42.005, in the
20-20    district or 400;
20-21          "BTR" is the district's bond tax rate for the current year,
20-22    which is determined by dividing the amount of taxes budgeted to be
20-23    collected by the district for payment of eligible bonds by the
20-24    quotient of the district's taxable value of property as determined
20-25    under Subchapter M, Chapter 403, Government Code, or, if
20-26    applicable, Section 42.2521, divided by 100; and
 21-1          "DPV" is the district's taxable value of property as
 21-2    determined under Subchapter M, Chapter 403, Government Code, or, if
 21-3    applicable, Section 42.2521.
 21-4          (g)  To receive state assistance under this subchapter
 21-5    [chapter], a school district must apply to the commissioner in
 21-6    accordance with rules adopted by the commissioner before issuing
 21-7    bonds that will be paid with state assistance.  Until the bonds are
 21-8    fully paid or the instructional facility is sold:
 21-9                (1)  a school district is entitled to continue
21-10    receiving state assistance without reapplying to the commissioner;
21-11    and
21-12                (2)  the guaranteed level of state and local funds per
21-13    student per cent of tax effort applicable to the bonds may not be
21-14    reduced below the level provided for the year in which the bonds
21-15    were issued.
21-16          SECTION 1.25.  Section 46.004, Education Code, is amended to
21-17    read as follows:
21-18          Sec. 46.004.  LEASE-PURCHASE AGREEMENTS.  (a)  A district may
21-19    receive state assistance in connection with a lease-purchase
21-20    agreement concerning an instructional facility.  For purposes of
21-21    this subchapter [chapter]:
21-22                (1)  taxes levied for purposes of maintenance and
21-23    operations that are necessary to pay a district's share of the
21-24    payments under a lease-purchase agreement for which the district
21-25    receives state assistance under this subchapter [chapter] are
21-26    considered to be bond taxes; and
 22-1                (2)  payments under a lease-purchase agreement are
 22-2    considered to be payments of principal of and interest on bonds.
 22-3          (b)  Section 46.003(b) applies to taxes levied to pay a
 22-4    district's share of the payments under a lease-purchase agreement
 22-5    for which the district receives state assistance under this
 22-6    subchapter [chapter].
 22-7          (c)  A lease-purchase agreement must be for a term of at
 22-8    least eight years to be eligible to be paid with state and local
 22-9    funds under this subchapter [chapter].
22-10          SECTION 1.26.  Section 46.006, Education Code, is amended to
22-11    read as follows:
22-12          Sec. 46.006.  SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR
22-13    NEW PROJECTS.  (a)  If the total amount appropriated for a year for
22-14    new projects is less than the amount of money to which school
22-15    districts applying for state assistance are entitled for that year,
22-16    the commissioner shall rank each school district applying by wealth
22-17    per student.  For purposes of this section, a district's wealth per
22-18    student is reduced by 10 percent for each state fiscal biennium in
22-19    which the district did not receive assistance under this subchapter
22-20    [chapter].
22-21          (b)  A district's wealth per student is reduced for purposes
22-22    of this section if a district has had substantial student
22-23    enrollment growth in the preceding five-year period.  The reduction
22-24    is in addition to any reduction under Subsection (a) and is
22-25    computed before the district's wealth per student is reduced under
22-26    that subsection, if applicable.  A district's wealth per student is
 23-1    reduced:
 23-2                (1)  by five percent, if the district has an enrollment
 23-3    growth rate in that period that is 10 percent or more but less than
 23-4    15 percent;
 23-5                (2)  by 10 percent, if the district has an enrollment
 23-6    growth rate in that period that is 15 percent or more but less than
 23-7    30 percent; or
 23-8                (3)  by 15 percent, if the district has an enrollment
 23-9    growth rate in that period that is 30 percent or more.
23-10          (c)  A district's wealth per student is reduced by 10 percent
23-11    for purposes of this section if the district does not have any
23-12    outstanding debt at the time the district applies for assistance
23-13    under this subchapter.  The reduction is in addition to any
23-14    reduction under Subsection (a) or (b) and is computed before the
23-15    district's wealth per student is reduced under those subsections,
23-16    if applicable.
23-17          (d)  The commissioner shall adjust the rankings after making
23-18    the reductions in wealth per student required by Subsections (a),
23-19    (b), and (c) [this subsection].
23-20          (e) [(b)]  Beginning with the district with the lowest
23-21    adjusted wealth per student that has applied for state assistance
23-22    for the year, the commissioner shall award state assistance to
23-23    districts that have applied for state assistance in ascending order
23-24    of adjusted wealth per student.  The commissioner shall award the
23-25    full amount of state assistance to which a district is entitled
23-26    under this subchapter [chapter], except that the commissioner may
 24-1    award less than the full amount to the last district for which any
 24-2    funds are available.
 24-3          (f) [(c)]  Any amount appropriated for the first year of a
 24-4    fiscal biennium that is not awarded to a school district may be
 24-5    used to provide assistance in the following fiscal year.
 24-6          (g) [(d)]  In this section, "wealth per student" means a
 24-7    school district's taxable value of property as determined under
 24-8    Subchapter M, Chapter 403, Government Code, or, if applicable,
 24-9    Section 42.2521, divided by the district's average daily attendance
24-10    as determined under Section 42.005.
24-11          SECTION 1.27.  Sections 46.007 and 46.009, Education Code,
24-12    are amended to read as follows:
24-13          Sec. 46.007.  REFUNDING BONDS.  A school district may use
24-14    state funds received under this subchapter [chapter] to pay the
24-15    principal of and interest on refunding bonds that:
24-16                (1)  are issued to refund bonds eligible under Section
24-17    46.003;
24-18                (2)  do not have a final maturity date later than the
24-19    final maturity date of the bonds being refunded;
24-20                (3)  may not be called for redemption earlier than the
24-21    earliest call date of the bonds being refunded; and
24-22                (4)  result in a present value savings, which is
24-23    determined by computing the net present value of the difference
24-24    between each scheduled payment on the original bonds and each
24-25    scheduled payment on the refunding bonds.  The present value
24-26    savings shall be computed at the true interest cost of the
 25-1    refunding bonds.
 25-2          Sec. 46.009.  PAYMENT OF SCHOOL FACILITIES ALLOTMENTS.
 25-3    (a)  For each school year, the commissioner shall determine the
 25-4    amount of money to which each school district is entitled under
 25-5    this subchapter [chapter].
 25-6          (b)  If the amount appropriated for purposes of this
 25-7    subchapter [chapter] for a year is less than the total amount
 25-8    determined under Subsection (a) for that year, the commissioner
 25-9    shall:
25-10                (1)  transfer from the Foundation School Program to the
25-11    instructional facilities program the amount by which the total
25-12    amount determined under Subsection (a) exceeds the amount
25-13    appropriated; and
25-14                (2)  reduce each district's foundation school fund
25-15    allocations in the manner provided by Section 42.253(h) [42.253].
25-16          (c)  Warrants for payments under this subchapter [chapter]
25-17    shall be approved and transmitted to school district treasurers or
25-18    depositories in the same manner as warrants for payments under
25-19    Chapter 42.
25-20          (d)  As soon as practicable after September 1 of each year,
25-21    the commissioner shall distribute to each school district the
25-22    amount of state assistance under this subchapter [chapter] to which
25-23    the commissioner has determined the district is entitled for the
25-24    school year.  The district shall deposit the money in the interest
25-25    and sinking fund for the bonds for which the assistance is received
25-26    and shall adopt a tax rate for purposes of debt service that takes
 26-1    into account the balance of the interest and sinking fund.
 26-2          (e)  Section 42.258 applies to payments under this subchapter
 26-3    [chapter].
 26-4          (f)  If a school district would have received a greater
 26-5    amount under this subchapter [chapter] for the applicable school
 26-6    year using the adjusted value determined under Section 42.257, the
 26-7    commissioner shall add the difference between the adjusted value
 26-8    and the amount the district received under this subchapter
 26-9    [chapter] to subsequent distributions to the district under this
26-10    subchapter [chapter].
26-11          SECTION 1.28.  Subsection (a), Section 46.011, Education
26-12    Code, is amended to read as follows:
26-13          (a)  If an instructional facility financed by bonds paid with
26-14    state and local funds under this subchapter [chapter] is sold
26-15    before the bonds are fully paid, the school district shall send to
26-16    the comptroller an amount equal to the district's net proceeds from
26-17    the sale multiplied by a percentage determined by dividing the
26-18    amount of state funds under this subchapter used to pay the
26-19    principal of and interest on the bonds by the total amount of
26-20    principal and interest paid on the bonds with funds other than the
26-21    proceeds of the sale.
26-22          SECTION 1.29.  Chapter 46, Education Code, is amended by
26-23    adding Subchapters B and C to read as follows:
26-24          SUBCHAPTER B.  ASSISTANCE WITH PAYMENT OF EXISTING DEBT
26-25          Sec. 46.031.  RULES.  The commissioner may adopt rules for
26-26    the administration of this subchapter.
 27-1          Sec. 46.032.  ALLOTMENT.  (a)  Each school district is
 27-2    guaranteed a specified amount per student in state and local funds
 27-3    for each cent of tax effort to pay the principal of and interest on
 27-4    eligible bonds.  The amount of state support, subject only to the
 27-5    maximum amount under Section 46.034, is determined by the formula:
 27-6           EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
 27-7    where:
 27-8          "EDA" is the amount of state funds to be allocated to the
 27-9    district for assistance with existing debt;
27-10          "EDGL" is the dollar amount guaranteed level of state and
27-11    local funds per student per cent of tax effort, which is $35 or a
27-12    greater amount for any year provided by appropriation;
27-13          "ADA" is the number of students in average daily attendance,
27-14    as determined under Section 42.005, in the district;
27-15          "EDTR" is the existing debt tax rate of the district, which
27-16    is determined by dividing the amount of taxes budgeted to be
27-17    collected by the district for payment of eligible bonds by the
27-18    quotient of the district's taxable value of property as determined
27-19    under Subchapter M, Chapter 403, Government Code, or, if
27-20    applicable, under Section 42.2521, divided by 100; and
27-21          "DPV" is the district's taxable value of property as
27-22    determined under Subchapter M, Chapter 403, Government Code, or, if
27-23    applicable, under Section 42.2521.
27-24          (b)  The existing debt tax rate of the district under
27-25    Subsection (a) may not exceed the rate that would be necessary for
27-26    the current year, using state funds under Subsection (a), to make
 28-1    payments of principal and interest on the bonds for which the tax
 28-2    is pledged.
 28-3          Sec. 46.033.  ELIGIBLE BONDS.  Bonds, including  bonds issued
 28-4    under Section 45.006, are eligible to be paid with state and local
 28-5    funds under this subchapter if:
 28-6                (1)  taxes levied to pay the principal of and interest
 28-7    on the bonds were included in the district's audited debt service
 28-8    collections for the 1998-1999 school year; and
 28-9                (2)  the district does not receive state assistance
28-10    under Subchapter A for payment of the principal and interest on the
28-11    bonds.
28-12          Sec. 46.034.  LIMITS ON ASSISTANCE.  (a)  The existing debt
28-13    tax rate ("EDTR") under Section 46.032 may not exceed $0.12 per
28-14    $100 of valuation, or a greater amount for any year provided by
28-15    appropriation.
28-16          (b)  The amount of state assistance to which a district is
28-17    entitled under this subchapter may not exceed the amount to which
28-18    the district would be entitled at the district's tax rate for the
28-19    payment of eligible bonds for the final year of the preceding state
28-20    fiscal biennium.
28-21          (c)  If the amount required to pay the principal of and
28-22    interest on eligible bonds in a school year is less than the
28-23    district's audited debt service collections for the 1998-1999
28-24    school year, the district may not receive aid in excess of the
28-25    amount that, when added to the district's local revenue for the
28-26    school year, equals the amount required to pay the principal of and
 29-1    interest on the bonds.
 29-2          (d)  To the extent funds are available under Chapter 42 or
 29-3    this chapter in excess of the amount to which school districts are
 29-4    entitled for a school year, the commissioner, before providing
 29-5    additional assistance under Section 42.2522, may provide assistance
 29-6    under this subchapter to a district that would be entitled to the
 29-7    assistance but for the limit on the existing debt tax rate under
 29-8    Subsection (a).
 29-9          Sec. 46.035.  PAYMENT OF ASSISTANCE.  Section 46.009 applies
29-10    to the payment of assistance under this subchapter.
29-11                        SUBCHAPTER C.  REFINANCING
29-12          Sec. 46.061.  (a)  The commissioner by rule may provide for
29-13    the payment of state assistance under this chapter to refinance
29-14    school district debt.  A refinancing may not increase the cost to
29-15    the state of providing the assistance.
29-16          (b)  The commissioner may allocate state assistance provided
29-17    for a refinancing to Subchapter A, Subchapter B, or both, as
29-18    appropriate.
29-19          SECTION 1.30.  Sections 21.401 and 21.402, Education Code,
29-20    are amended to read as follows:
29-21          Sec. 21.401.  MINIMUM SERVICE REQUIRED.  (a)  A contract
29-22    between a school district and an educator must be for a minimum of
29-23    10 months' service.
29-24          (a-4)  For the 1998-1999 school year, an educator employed
29-25    under a 10-month contract must provide a minimum of 187 days of
29-26    service.  This subsection expires September 1, 1999.
 30-1          (b)  An educator employed under a 10-month contract must
 30-2    provide a minimum [number] of 187 days of service [as determined by
 30-3    the following formula:]
 30-4                 [MDS = 185 + (0.33 X (R1 - R2)/(R2/185) )]
 30-5    [where:]
 30-6          ["MDS" is the minimum number of days of service;]
 30-7          ["R1" is equal to FSP/ADA as determined under Section 21.402
 30-8    for the fiscal year; and]
 30-9          ["R2" is equal to FSP/ADA as determined under Section 21.402
30-10    for the 1996-1997 school year].
30-11          [(b-1)  Subsection (b) applies beginning with the 1999-2000
30-12    school year.  This subsection expires January 1, 2000.]
30-13          (c)  [The result of the formula prescribed by Subsection (b)
30-14    shall be rounded to the nearest whole number.]
30-15          [(d)]  The commissioner, as provided by Section 25.081(b),
30-16    may reduce the number of days of service required by this section.
30-17    A reduction by the commissioner does not reduce an educator's
30-18    salary.
30-19          Sec. 21.402.  MINIMUM SALARY SCHEDULE FOR CERTAIN
30-20    PROFESSIONAL STAFF [CLASSROOM TEACHERS AND FULL-TIME LIBRARIANS].
30-21    (a)  Except as provided by Subsection (d), [or] (e), or (f), a
30-22    school district must pay each classroom teacher, [or] full-time
30-23    librarian, full-time counselor certified under Subchapter B, or
30-24    full-time school nurse not less than the minimum monthly salary,
30-25    based on the employee's level of experience, determined by the
30-26    following formula:
 31-1                         MS = SF X FS [(FSP/ADA)]
 31-2    where:
 31-3          "MS" is the minimum monthly salary;
 31-4          "SF" is the applicable salary factor specified by Subsection
 31-5    (c); and
 31-6          "FS" is the amount, as determined by the commissioner under
 31-7    Subsection (b), of state and local funds per weighted student
 31-8    available to a district eligible to receive state assistance under
 31-9    Section 42.302 with an enrichment tax rate, as defined by Section
31-10    42.302, equal to the maximum rate authorized under Section 42.303
31-11    ["FSP" is the amount appropriated in the General Appropriations Act
31-12    for the fiscal year for the Foundation School Program, as
31-13    determined by the commissioner as provided by Subsection (b); and]
31-14          ["ADA" is the total estimated average daily attendance, as
31-15    defined by Section 42.005, used for purposes of the General
31-16    Appropriations Act for the fiscal year].
31-17          (b)  Not later than June 1 of each year, the commissioner
31-18    shall determine the amount of state and local funds per weighted
31-19    student available, for purposes of Subsection (a), to a district
31-20    described by that subsection for the following school year
31-21    [appropriated for purposes of Chapter 42 for the state fiscal year
31-22    beginning September 1.  The commissioner shall exclude from the
31-23    determination:]
31-24                [(1)  amounts designated solely for use in connection
31-25    with school facilities or for payment of principal of and interest
31-26    on bonds; and]
 32-1                [(2)  local funds received under Subchapter D, Chapter
 32-2    41].
 32-3          (c)  The salary factors per step are as follows:
 32-4    Years Experience       0         1         2         3         4
 32-5    Salary Factor        .5596     .5728     .5861     .5993     .6272
 32-6                        [.8470]   [.8699]   [.8928]   [.9156]   [.9639]
 32-7    Years Experience       5         6         7         8         9
 32-8    Salary Factor        .6552     .6831     .7091     .7336     .7569
 32-9                       [1.0122]  [1.0605]  [1.1054]  [1.1477]  [1.1879]
32-10    Years Experience      10        11        12        13        14
32-11    Salary Factor        .7787     .7996     .8192     .8376     .8552
32-12                       [1.2256]  [1.2616]  [1.2955]  [1.3273]  [1.3578]
32-13    Years Experience      15        16        17        18        19
32-14    Salary Factor        .8717     .8874     .9021     .9160     .9293
32-15                       [1.3862]  [1.4133]  [1.4387]  [1.4628]  [1.4857]
32-16    Years Experience 20 and over
32-17    Salary Factor        .9418
32-18                       [1.5073]
32-19          (c-1)  Notwithstanding Subsection (a), for the 1999-2000 and
32-20    2000-2001 school years, a classroom teacher, full-time librarian,
32-21    full-time counselor certified under Subchapter B, or full-time
32-22    school nurse is entitled to a monthly salary that is at least equal
32-23    to the greater of:
32-24                (1)  the sum of:
32-25                      (A)  the monthly salary the employee would have
32-26    received for the 1999-2000 or 2000-2001 school year, as applicable
 33-1    under the district's salary schedule for the 1998-1999 school year,
 33-2    if that schedule had been in effect for the 1999-2000 or 2000-2001
 33-3    school year, including any local supplement and any money
 33-4    representing a career ladder supplement the employee would have
 33-5    received in the 1999-2000 or 2000-2001 school year; and
 33-6                      (B)  $300; or
 33-7                (2)  the salary to which the employee is entitled under
 33-8    Subsection (a).
 33-9          (c-2)  Subsection (c-1) and this subsection expire September
33-10    1, 2001.
33-11          (d)  A classroom teacher, full-time librarian, full-time
33-12    counselor certified under Subchapter B, or full-time school nurse
33-13    employed by a school district in the 2000-2001 school year is, as
33-14    long as the employee is employed by the same district, entitled to
33-15    a salary that is at least equal to the salary the employee received
33-16    for the 2000-2001 school year.
33-17          (e)  If the minimum monthly salary determined under
33-18    Subsection (a) for a particular level of experience is less than
33-19    the minimum monthly salary for that level of experience in the
33-20    preceding year, the minimum monthly salary is the minimum monthly
33-21    salary for the preceding year.
33-22          (f) [(e)]  Notwithstanding Subsection (a), a teacher or
33-23    librarian who received a career ladder supplement on August 31,
33-24    1993, is entitled to at least the same gross monthly salary the
33-25    teacher or librarian received for the 1994-1995 school year as long
33-26    as the teacher or librarian is employed by the same district.
 34-1          (g)  The commissioner may adopt rules to govern the
 34-2    application of this section, including rules that:
 34-3                (1)  require the payment of a minimum salary under this
 34-4    section to a person employed in more than one capacity for which a
 34-5    minimum salary is provided and whose combined employment in those
 34-6    capacities constitutes full-time employment; and
 34-7                (2)  specify the credentials a person must hold to be
 34-8    considered a school nurse under this section.
 34-9          (h) [(f)]  In this section, "gross monthly salary" must
34-10    include the amount a teacher or librarian received that represented
34-11    a career ladder salary supplement under Section 16.057, as that
34-12    section existed January 1, 1993.
34-13          SECTION 1.31.  Subsections (a) and (c), Section 21.403,
34-14    Education Code, are amended to read as follows:
34-15          (a)  A teacher, [or] librarian, counselor, or nurse shall
34-16    advance one step on the minimum salary schedule under Section
34-17    21.402 for each year of experience as a teacher, [or] librarian,
34-18    counselor, or nurse until step 20 is reached.
34-19          (c)  The commissioner shall adopt rules for determining the
34-20    experience for which a teacher, [or] librarian, counselor, or nurse
34-21    is to be given credit in placing the teacher, [or] librarian,
34-22    counselor, or nurse on the minimum salary schedule.  A district
34-23    shall credit the teacher, [or] librarian, counselor, or nurse for
34-24    each year of experience without regard to whether the years are
34-25    consecutive.
34-26          SECTION 1.32.  Subsection (b), Section 25.039, Education
 35-1    Code, is amended to read as follows:
 35-2          (b)  The school district in which the students reside shall
 35-3    pay tuition to any district with which it has a contract under this
 35-4    section for each of its students attending school in that district
 35-5    at a grade level for which the district has contracted.  The amount
 35-6    of the tuition paid may not exceed the lesser of the amount
 35-7    provided for by Section 25.038 or an amount specified by
 35-8    commissioner rule [if the board of trustees of the district in
 35-9    which the students reside finds the excess payment to be in the
35-10    best interest of the district's educational program].
35-11          SECTION 1.33.  Subsection (b), Section 30.102, Education
35-12    Code, is amended to read as follows:
35-13          (b)  A classroom teacher, [or] full-time librarian, full-time
35-14    counselor certified under Subchapter B, Chapter 21, or full-time
35-15    school nurse employed by the commission is entitled to receive as a
35-16    minimum salary the monthly salary [rate] specified by Section
35-17    21.402.  A classroom teacher, [or] full-time librarian, full-time
35-18    counselor, or full-time school nurse may be paid, from funds
35-19    appropriated to the commission, a salary in excess of the minimum
35-20    specified by that section, but the salary may not exceed the rate
35-21    of pay for a similar position in the public schools of an adjacent
35-22    school district.
35-23          SECTION 1.34.  Subsections (a) and (c), Section 45.104,
35-24    Education Code, are amended to read as follows:
35-25          (a)  The board of trustees of any school district may pledge
35-26    its delinquent taxes levied for maintenance purposes for specific
 36-1    past, current, and future school years as security for a loan, and
 36-2    may evidence any such loan with negotiable notes, and the
 36-3    delinquent taxes pledged shall be applied against the principal and
 36-4    interest of the loan [as they are collected].  Negotiable notes
 36-5    issued under this subsection must mature not more than 20 years
 36-6    from their date.
 36-7          (c)  Funds secured through loans secured by delinquent taxes
 36-8    may be employed for any legal maintenance expenditure or purpose of
 36-9    the school district, including all costs incurred in connection
36-10    with:
36-11                (1)  environmental cleanup and asbestos removal
36-12    programs implemented by school districts; or
36-13                (2)  maintenance, repair, rehabilitation, or
36-14    replacement of heating, air conditioning, water, sanitation,
36-15    roofing, flooring, electric, or other building systems of existing
36-16    school properties.
36-17          SECTION 1.35.  Subsection (a), Section 45.108, Education
36-18    Code, is amended to read as follows:
36-19          (a)  Independent or consolidated school districts may borrow
36-20    money for the purpose of paying maintenance expenses and may
36-21    evidence those loans with negotiable notes, except that the loans
36-22    may not at any time exceed 75 percent of the previous year's
36-23    income.  The notes may be payable from and secured by a lien on and
36-24    pledge of any available funds of the district, including proceeds
36-25    of a maintenance tax.  The term "maintenance expenses" or
36-26    "maintenance expenditures" as used in this section means any lawful
 37-1    expenditure of the school district other than payment of principal
 37-2    of and interest on bonds.  The term includes all costs incurred in
 37-3    connection with environmental cleanup and asbestos cleanup and
 37-4    removal programs implemented by school districts or in connection
 37-5    with the maintenance, repair, rehabilitation, or replacement of
 37-6    heating, air conditioning, water, sanitation, roofing, flooring,
 37-7    electric, or other building systems of existing school properties.
 37-8    Notes issued pursuant to this section [an environmental cleanup and
 37-9    asbestos cleanup and removal program] may be issued to mature in
37-10    not more than 20 [15] years from their date.  Notes issued for a
37-11    term longer than one year must be treated as "debt" as defined in
37-12    Section 26.012(7), Tax Code.
37-13          SECTION 1.36.  Section 403.302, Government Code, as amended
37-14    by S.B. No. 1368, Acts of the 76th Legislature, Regular Session,
37-15    1999, is amended by amending Subsections (d) and (h) and adding
37-16    Subsection (j) to read as follows:
37-17          (d)  For the purposes of this section, "taxable value" means
37-18    the market value of all taxable property less:
37-19                (1)  the total dollar amount of any residence homestead
37-20    exemptions lawfully granted under Section 11.13(b) or (c), Tax
37-21    Code, in the year that is the subject of the study for each school
37-22    district;
37-23                (2)  one-half of the total dollar amount of any
37-24    residence homestead exemptions granted under Section 11.13(n), Tax
37-25    Code, in the year that is the subject  of the study for each school
37-26    district;
 38-1                (3)  []the total dollar amount of any exemptions granted
 38-2    before May 31, 1993, within a reinvestment zone under agreements
 38-3    authorized by Chapter 312, Tax Code;
 38-4                (4) [(3)]  the total dollar amount of any captured
 38-5    appraised value of property that is located in a reinvestment zone
 38-6    on August 31, 1999, generates a tax increment paid into a tax
 38-7    increment fund, and is eligible for tax increment financing under
 38-8    Chapter 311, Tax Code, under a reinvestment zone financing plan
 38-9    approved under  Section 311.011(d), Tax Code, before September 1,
38-10    1999;
38-11                (5) [(4)]  the total dollar amount of any exemptions
38-12    granted under Section 11.251, Tax Code;
38-13                (6) [(5)]  the difference between the comptroller's
38-14    estimate of the market value and the productivity value of land
38-15    that qualifies for appraisal on the basis of its productive
38-16    capacity, except that the productivity value estimated by the
38-17    comptroller may not exceed the fair market value of the land;
38-18                (7) [(6)]  the portion of the appraised value of
38-19    residence homesteads of the elderly on which school district taxes
38-20    are not imposed in the year that is the subject of the study,
38-21    calculated as if the residence homesteads were appraised at the
38-22    full value required by law;
38-23                (8) [(7)]  a portion of the market value of property
38-24    not otherwise fully taxable by the district at market value because
38-25    of action required by statute or the constitution of this state
38-26    that, if the tax rate adopted by the district is applied to it,
 39-1    produces an amount equal to the difference between the tax that the
 39-2    district would have imposed on the property if the property were
 39-3    fully taxable at market value and the tax that the district is
 39-4    actually authorized to impose on the property, if this subsection
 39-5    does not otherwise require that portion to be deducted;
 39-6                (9) [(8)]  the market value of all tangible personal
 39-7    property, other than manufactured homes, owned by a family or
 39-8    individual and not held or used for the production of income;
 39-9                (10) [(9)]  the appraised value of property the
39-10    collection of delinquent taxes on which is deferred under Section
39-11    33.06, Tax Code;
39-12                (11) [(10)]  the portion of the appraised value of
39-13    property the collection of delinquent taxes on which is deferred
39-14    under Section 33.065, Tax Code; and
39-15                (12) [(11)]  the amount by which the market value of a
39-16    residence homestead to which Section 23.23, Tax Code, applies
39-17    exceeds the appraised value of that property as calculated under
39-18    that section.
39-19          (h)  For purposes of Section [Sections 41.0011 and] 42.2511,
39-20    Education Code, [for the 1996 and 1997 tax years,] the comptroller
39-21    shall certify to the commissioner of education:
39-22                (1)  a final value for each school district computed on
39-23    a residence homestead exemption under Section 1-b(c), Article VIII,
39-24    Texas Constitution, of $5,000; and
39-25                (2)  a final value for each school district computed
39-26    on:
 40-1                      (A)  a residence homestead exemption under
 40-2    Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
 40-3                      (B)  the effect of the additional limitation on
 40-4    tax increases under Section 1-b(d), Article VIII, Texas
 40-5    Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
 40-6    Regular Session, 1997.
 40-7          (j)  For purposes of Section 42.2522, Education Code, the
 40-8    comptroller shall certify to the commissioner of education:
 40-9                (1)  a final value for each school district computed
40-10    without any deduction for residence homestead exemptions granted
40-11    under Section 11.13(n), Tax Code; and
40-12                (2)  a final value for each school district computed
40-13    after deducting one-half the total dollar amount of residence
40-14    homestead exemptions granted under Section 11.13(n), Tax Code.
40-15          SECTION 1.37.  Subdivision (8), Section 271.003, Local
40-16    Government Code, is amended to read as follows:
40-17                (8)  "Personal property" includes appliances,
40-18    equipment, facilities, and furnishings, or an interest in personal
40-19    property, whether movable or fixed, considered by the governing
40-20    body of the governmental agency to be necessary, useful, or
40-21    appropriate to one or more purposes of the governmental agency.
40-22    The term includes all materials and labor incident to the
40-23    installation of that personal property.  The term does not include
40-24    real property.
40-25          SECTION 1.38.  Section 271.005, Local Government Code, is
40-26    amended by adding Subsection (b) to read as follows:
 41-1          (b)  The governing body of a governmental agency may contract
 41-2    under this section for materials and labor incident to the
 41-3    installation of personal property.
 41-4          SECTION 1.39.  Subsection (b), Section 271.007, Local
 41-5    Government Code, is amended to read as follows:
 41-6          (b)  After the contract has been approved and registered as
 41-7    provided by this section, the contract is valid and is
 41-8    incontestable for any cause.  The legal obligation of the lessor,
 41-9    vendor, or supplier of personal property or of the person
41-10    installing personal property to the governmental agency is not
41-11    diminished in any respect by the approval and registration of the
41-12    contract.
41-13          SECTION 1.40.  Section 26.08, Tax Code, is amended by
41-14    amending Subsection (i) and adding Subsections (j) through (n) to
41-15    read as follows:
41-16          (i)  For purposes of this section, the rollback tax rate of a
41-17    school district is the sum of:
41-18                (1)  the tax rate that, applied to the current total
41-19    value for the district, would impose taxes in an amount that, when
41-20    added to state funds that would be distributed to the district
41-21    under Chapter 42, Education Code, for the school year beginning in
41-22    the current tax year using that tax rate, would provide the same
41-23    amount of state funds distributed under Chapter 42 and maintenance
41-24    and operations taxes of the district per student in weighted
41-25    average daily attendance for that school year that would have been
41-26    [was] available to the district in the preceding year if the
 42-1    funding elements for Chapters 41 and 42, Education Code, for the
 42-2    current year had been in effect for the preceding year;
 42-3                (2)  the rate of $0.06 [$0.08] per $100 of taxable
 42-4    value; and
 42-5                (3)  the district's current debt rate.
 42-6          (j)  For purposes of Subsection (i), the amount of state
 42-7    funds that would have been available to a school district in the
 42-8    preceding year is computed using the maximum tax rate for the
 42-9    current year under Section 42.253(e), Education Code.
42-10          (k)  Except as provided by Subsection (l), for purposes of
42-11    this section, for the 1999 tax year, the  rollback tax rate of a
42-12    school district is the sum of:
42-13                (1)  the tax rate that, applied to the current total
42-14    value for the district, would impose maintenance and operations
42-15    taxes in an amount that, when added to the amount of state funds
42-16    that would be distributed to the district under Chapter 42,
42-17    Education Code, for the 1999-2000 school year using that tax rate
42-18    and a guaranteed level of state and local funds per weighted
42-19    student per cent of tax effort under Section 42.302, Education
42-20    Code, of $23.10, would provide the same amount of state funds
42-21    distributed under Chapter 42 and maintenance and operations taxes
42-22    of the district per student in weighted average daily attendance
42-23    for the 1999-2000 school year that would have been available to the
42-24    district in the 1999-2000 school year, using:
42-25                      (A)  the maximum tax rate for the 1999-2000
42-26    school year under Section 42.253(e), Education Code, for which
 43-1    state funding would be provided; and
 43-2                      (B)  the guaranteed level of state and local
 43-3    funds per weighted student per cent of tax effort under Section
 43-4    42.302, Education Code, for the 1998-1999 school year and the basic
 43-5    allotment under Section 42.101, Education Code, for the 1999-2000
 43-6    school year;
 43-7                (2)  the tax rate that, applied to the current total
 43-8    value for the district, would impose taxes in an amount that would
 43-9    provide the same amount of funds as the taxes paid by the district
43-10    during the 1998-1999 school year under 26 U.S.C. Section 3111(a),
43-11    and its subsequent amendments, for employees covered by the Social
43-12    Security retirement program, if the district is currently required
43-13    to participate in that program;
43-14                (3)  the rate of $0.03 per $100 of taxable value; and
43-15                (4)  the district's current debt rate.
43-16          (l)  Subsection (i) applies to a school district that is
43-17    required to take action under Chapter 41, Education Code, to reduce
43-18    its wealth per student to the equalized wealth level, except that
43-19    the amount of $0.03 is substituted for the amount specified by
43-20    Subsection (i)(2).
43-21          (m)  For purposes of Subsections (i) and (k), the amount of
43-22    maintenance and operations taxes and state funds available to a
43-23    school district does not include amounts provided to the district
43-24    in accordance with Section 42.2512 or 42.2513, Education Code.
43-25          (n)  Subsections (k)-(m) and this subsection expire September
43-26    1, 2000.
 44-1          SECTION 1.41.  In placing a counselor or school nurse on the
 44-2    minimum salary schedule in accordance with Sections 21.402 and
 44-3    21.403, Education Code, as amended by this Act, a school district
 44-4    shall credit the counselor or nurse for each year of experience in
 44-5    accordance with rules adopted by the commissioner of education,
 44-6    regardless of whether the experience was gained before, during, or
 44-7    after the 1999-2000 school year.
 44-8          SECTION 1.42.  (a)  In coordination with the comptroller of
 44-9    public accounts of the State of Texas, the Charles A. Dana Center
44-10    at The University of Texas at Austin shall conduct a study of
44-11    variations in known resource costs and costs of education beyond
44-12    the control of a school district.
44-13          (b)  Not later than November 1, 2000, the center shall make
44-14    recommendations to the 77th Legislature as to methods of adjusting
44-15    funding under Chapter 42, Education Code, to reflect variations in
44-16    resource costs and costs of education.
44-17          (c)  The comptroller of public accounts of the State of
44-18    Texas, the Texas Education Agency, and Texas A&M University shall
44-19    assist the center in conducting the study and making the
44-20    recommendations.
44-21          SECTION 1.43.  (a)  A portion of the amounts appropriated in
44-22    Article III, H.B. No. 1, Acts of the 76th Legislature, Regular
44-23    Session, 1999, to the Texas Education Agency is allocated as
44-24    provided by this subsection, notwithstanding the provisions of H.B.
44-25    No. 1:
44-26                (1)  for the fiscal year ending August 31, 2000,
 45-1    $1,715,000,000 is allocated to Strategy A.2.1.:  Foundation School
 45-2    Program, and for the fiscal year ending August 31, 2001,
 45-3    $1,785,000,000 is allocated to that strategy;
 45-4                (2)  for each fiscal year of the biennium ending August
 45-5    31, 2001, $100 million is allocated to Strategy B.1.1.:
 45-6    Instructional Excellence, for kindergarten and prekindergarten
 45-7    grant programs authorized by Section 29.155, Education Code, as
 45-8    added by this Act;
 45-9                (3)  for each fiscal year of the biennium ending August
45-10    31, 2001, $7.5 million is allocated to Strategy B.1.1.:
45-11    Instructional Excellence, for implementation of an educational
45-12    component to Head Start, as authorized by Section 29.156, Education
45-13    Code, as added by this Act;
45-14                (4)  for each fiscal year of the biennium ending August
45-15    31, 2001, $42.5 million in each year of the biennium is allocated
45-16    to Strategy B.1.1.:  Instructional Excellence, for the Basic Skills
45-17    Programs for High School Students, as authorized by Section 29.086,
45-18    Education Code, as added by this Act; and
45-19                (5)  for the fiscal year ending August 31, 2001, the
45-20    unexpended balance of an amount allocated under Subdivision (2),
45-21    (3), or (4) of this subsection for the fiscal year ending August
45-22    31, 2000, is allocated for the same purpose.
45-23          (b)  As provided by Section 42.2511, Education Code, as
45-24    amended by this Act, the commissioner of education shall allocate
45-25    transition aid for total revenue declines associated with the
45-26    increase in the homestead exemption under Subsection (d), Section
 46-1    1-b, Article VIII, Texas Constitution, as proposed by H.J.R. No. 4,
 46-2    75th Legislature, Regular Session, 1997, in amounts estimated to be
 46-3    $45 million for each fiscal year of the biennium ending August 31,
 46-4    2001.
 46-5          (c)  For the biennium ending August 31, 2001, the
 46-6    commissioner of education shall distribute amounts appropriated in
 46-7    Article III, H.B. No. 1, Acts of the 76th Legislature, Regular
 46-8    Session, 1999, to the Texas Education Agency, in Article III of
 46-9    that Act, for purposes of the Instructional Facilities Allotment
46-10    under Subchapter A, Chapter 46, Education Code, as amended by this
46-11    Act, as follows:
46-12                (1)  for the fiscal year ending August 31, 2000, the
46-13    commissioner shall use $50 million of the funds appropriated in
46-14    Strategy A.2.3.:  Maximizing School Facilities, to assist school
46-15    districts under the provisions of Subchapter A, Chapter 46,
46-16    Education Code, as amended by this Act, to issue new debt for
46-17    public school facilities, and for the fiscal year ending August 31,
46-18    2001, the commissioner shall use $50 million to assist school
46-19    districts to issue new debt for public school facilities and $50
46-20    million to assist school districts to make debt service payments on
46-21    debt issued in the fiscal year ending August 31, 2000; and
46-22                (2)  the commissioner shall use the remaining
46-23    appropriation in Strategy A.2.3.:  Maximizing School Facilities, to
46-24    meet the financial obligation incurred by the state under
46-25    Subchapter A, Chapter 46, Education Code, as amended by this Act,
46-26    in the biennium ending August 31, 1999.
 47-1          (d)  The amount allocated under Rider 10 following the
 47-2    appropriation to the Texas Education Agency in Article III, H.B.
 47-3    No. 1, Acts of the 76th Legislature, Regular Session, 1999, is
 47-4    reduced from $160 million to $133 million, and that amount shall be
 47-5    distributed by the commissioner of education in a manner consistent
 47-6    with the changes made by this Act in amending Subsection (b),
 47-7    Section 41.002, Education Code, repealing Subsection (c), Section
 47-8    41.002, Education Code, and adding Section 42.2521, Education Code,
 47-9    relating to the compensation of school districts for property value
47-10    decline.
47-11          (e)  The amount specified in Rider 50 following the
47-12    appropriation to the Texas Education Agency in Article III, H.B.
47-13    No. 1, Acts of the 76th Legislature, Regular Session, 1999, as the
47-14    guaranteed level per weighted student per cent of tax effort is
47-15    adjusted to conform with Subchapter F, Chapter 42, Education Code,
47-16    as amended by this Act.
47-17          (f)  For each fiscal year of the biennium ending August 31,
47-18    2001, from amounts appropriated in Article III, H.B. No. 1, Acts of
47-19    the 76th Legislature, Regular Session, 1999, to the Texas Education
47-20    Agency, the commissioner of education may expend an amount not to
47-21    exceed $25 million in payment of the allotment provided by Section
47-22    42.158, Education Code, as added by this Act, for new instructional
47-23    facilities.
47-24          (g)  The Legislative Budget Board shall adjust the amounts
47-25    specified in Rider 2 following the appropriation to the Texas
47-26    Education Agency in Article III, H.B. No. 1, Acts of the 76th
 48-1    Legislature, Regular Session, 1999, in compliance with the changes
 48-2    specified by this section.
 48-3          (h)  The Legislative Budget Board shall adjust the amount
 48-4    specified as attendance credit revenues in the method of finance
 48-5    for amounts appropriated in Article III, H.B. No. 1, Acts of the
 48-6    76th Legislature, Regular Session, 1999, to the Texas Education
 48-7    Agency to account for applicable provisions of this Act and for
 48-8    updated projections of those revenues.
 48-9          (i)  The Legislative Budget Board shall adjust performance
48-10    measure targets in the appropriations in Article III, H.B. No. 1,
48-11    Acts of the 76th Legislature, Regular Session, 1999, to the Texas
48-12    Education Agency to reflect the provisions of this Act.
48-13          (j)  Strategy A.2.2.:  Public Education, as provided in the
48-14    appropriations in Article III, H.B. No. 1, Acts of the 76th
48-15    Legislature, Regular Session, 1999, to the Texas Education Agency,
48-16    is repealed.
48-17          SECTION 1.44.  In addition to other amounts appropriated for
48-18    the fiscal biennium ending August 31, 2001, the sum of $60 million
48-19    is appropriated, for the fiscal year ending August 31, 2000, from
48-20    the general revenue fund to the Texas Education Agency for purposes
48-21    of the foundation school program, and the unexpended balance of
48-22    that appropriation is appropriated, for the fiscal year ending
48-23    August 31, 2001, from the general revenue fund to the Texas
48-24    Education Agency for the same purposes.
 49-1         ARTICLE 2.  PROGRAM IMPROVEMENTS, DISCIPLINE, AND SOCIAL
 49-2                                 PROMOTION
 49-3          SECTION 2.01.  Subchapter E, Chapter 29, Education Code, is
 49-4    amended by adding Sections 29.155 and 29.156 to read as follows:
 49-5          Sec. 29.155.  KINDERGARTEN AND PREKINDERGARTEN GRANTS.
 49-6    (a)  From amounts appropriated for the purposes of this section,
 49-7    the commissioner may make grants to school districts and
 49-8    open-enrollment charter schools to implement or expand kindergarten
 49-9    and prekindergarten programs by:
49-10                (1)  operating an existing half-day kindergarten or
49-11    prekindergarten program on a full-day basis; or
49-12                (2)  implementing a prekindergarten program at a campus
49-13    that does not have a prekindergarten program.
49-14          (b)  A school district or open-enrollment charter school may
49-15    use funds received under this section to employ teachers and other
49-16    personnel for a kindergarten or prekindergarten program and acquire
49-17    curriculum materials or equipment, including computers, for use in
49-18    kindergarten and prekindergarten programs.
49-19          (c)  To be eligible for a grant under this section, a school
49-20    district or open-enrollment charter school must apply to the
49-21    commissioner in the manner and within the time prescribed by the
49-22    commissioner.
49-23          (d)  In awarding grants under this section, the commissioner
49-24    shall give priority to districts and open-enrollment charter
49-25    schools in which the level of performance of students on the
49-26    assessment instruments administered under Section 39.023 to
 50-1    students in grade three is substantially below the average level of
 50-2    performance on those assessment instruments for all school
 50-3    districts in the state.
 50-4          (e)  The commissioner may adopt rules to administer this
 50-5    section.
 50-6          (f)  Notwithstanding Section 7.056(e)(3)(I), the commissioner
 50-7    may waive a requirement prescribed by this subchapter to the extent
 50-8    necessary to implement a grant awarded under this section or
 50-9    Section 29.156.
50-10          Sec. 29.156.  GRANTS FOR EDUCATIONAL COMPONENT OF HEAD START.
50-11    (a)  From funds appropriated for the purpose, the commissioner
50-12    shall make grants for use in providing an educational component to
50-13    federal Head Start programs or similar government-funded early
50-14    childhood care and education programs.
50-15          (b)  The commissioner shall adopt rules for implementation of
50-16    this section, including rules prescribing eligibility criteria for
50-17    receipt of a grant and for expenditure of grant funds.
50-18          SECTION 2.02.  Subchapter C, Chapter 29, Education Code, is
50-19    amended by adding Section 29.086 to read as follows:
50-20          Sec. 29.086.  BASIC SKILLS PROGRAMS FOR HIGH SCHOOL STUDENTS.
50-21    (a)  A school district may apply to the commissioner for funding of
50-22    special programs for students in grade nine who are at risk of not
50-23    earning sufficient credit or who have not earned sufficient credit
50-24    to advance to grade 10 and who fail to meet minimum skills levels
50-25    established by the commissioner.  A school district may, with the
50-26    consent of a student's parent or guardian, assign a student to a
 51-1    program under this section.  A program under this section may not
 51-2    exceed 210 instructional days.
 51-3          (b)  A program under this section must emphasize basic skills
 51-4    in areas of the required curriculum under Section 28.002 and must
 51-5    offer students the opportunity to increase credits required for
 51-6    high school graduation under state or school district policy.  A
 51-7    program under this section may be provided by a school district or
 51-8    an entity contracting with a school district to provide the
 51-9    program.
51-10          (c)  The commissioner shall award funds to districts in
51-11    accordance with a competitive grant process developed by the
51-12    commissioner.  A grant may be made to a consortium of school
51-13    districts.  The criteria by which the commissioner awards a grant
51-14    must include the quality of the proposed program and the school
51-15    district's demonstrated need for the program.  An approved program
51-16    must include criteria that permit measurement of student progress,
51-17    and the district shall:
51-18                (1)  annually evaluate the progress of students in the
51-19    program; and
51-20                (2)  submit the results of the evaluation to the
51-21    commissioner at the end of the school year.
51-22          (d)  The commissioner shall establish minimum levels of
51-23    student enrollment and standards of student progress required for
51-24    continued funding of a program under this section.  The
51-25    commissioner may eliminate funding for a program in a subsequent
51-26    school year if the program fails to achieve sufficient levels of
 52-1    student progress.
 52-2          (e)  The amount of a grant under this section must take into
 52-3    account funds distributed to the school district under Chapter 42.
 52-4          (f)  The commissioner may adopt rules for the administration
 52-5    of programs under this section.
 52-6          SECTION 2.03.  Section 5.001, Education Code, is amended by
 52-7    adding Subdivision (8) to read as follows:
 52-8                (8)  "Residential facility" means:
 52-9                      (A)  a facility operated by a state agency or
52-10    political subdivision, including a child placement agency, that
52-11    provides 24-hour custody or care of a person 22 years of age or
52-12    younger, if the person resides in the facility for detention,
52-13    treatment, foster care, or any noneducational purpose; and
52-14                      (B)  any person or entity that contracts with or
52-15    is funded, licensed, certified, or regulated by a state agency or
52-16    political subdivision to provide custody or care for a person under
52-17    Paragraph (A).
52-18          SECTION 2.04.  Subsection (b), Section 12.104, Education
52-19    Code, is amended to read as follows:
52-20          (b)  An open-enrollment charter school is subject to:
52-21                (1)  a provision of this title establishing a criminal
52-22    offense; and
52-23                (2)  a prohibition, restriction, or requirement, as
52-24    applicable, imposed by this title or a rule adopted under this
52-25    title, relating to:
52-26                      (A)  the Public Education Information Management
 53-1    System (PEIMS) to the extent necessary to monitor compliance with
 53-2    this subchapter as determined by the commissioner;
 53-3                      (B)  criminal history records under Subchapter C,
 53-4    Chapter 22;
 53-5                      (C)  reading instruments and accelerated reading
 53-6    instruction programs under Section 28.006;
 53-7                      (D)  satisfactory performance on assessment
 53-8    instruments and to accelerated instruction under Section 28.0211;
 53-9                      (E)  high school graduation under Section 28.025;
53-10                      (F) [(D)]  special education programs under
53-11    Subchapter A, Chapter 29;
53-12                      (G) [(E)]  bilingual education under Subchapter
53-13    B, Chapter 29;
53-14                      (H) [(F)]  prekindergarten programs under
53-15    Subchapter E, Chapter 29;
53-16                      (I) [(G)]  extracurricular activities under
53-17    Section 33.081;
53-18                      (J) [(H)]  health and safety under Chapter 38;
53-19    and
53-20                      (K) [(I)]  public school accountability under
53-21    Subchapters B, C, D, and G, Chapter 39.
53-22          SECTION 2.05.  Section 21.103, Education Code, is amended to
53-23    read as follows:
53-24          Sec. 21.103.  PROBATIONARY CONTRACT:  TERMINATION.  (a)  The
53-25    board of trustees of a school district may terminate the employment
53-26    of a teacher employed under a probationary contract at the end of
 54-1    the contract period if in the board's judgment the best interests
 54-2    of the district will be served by terminating the employment.  The
 54-3    board of trustees must give notice of its decision [intention] to
 54-4    terminate the employment to the teacher not later than the 45th day
 54-5    before the last day of instruction required under the contract.
 54-6    The board's decision is final and may not be appealed.
 54-7          (b)  If the board of trustees fails to give the notice of its
 54-8    decision [intention] to terminate the teacher's employment within
 54-9    the  time prescribed by Subsection (a), the board must employ the
54-10    probationary teacher in the same capacity under:
54-11                (1)  a probationary contract for the following school
54-12    year, if the teacher has been employed by the district under a
54-13    probationary contract for less than three consecutive school years;
54-14    or
54-15                (2)  a continuing or term contract, according to
54-16    district policy, if the teacher has been employed by the district
54-17    under a probationary contract for three consecutive school years.
54-18          SECTION 2.06.  Subsection (a), Section 21.451, Education
54-19    Code, is amended to read as follows:
54-20          (a)  The staff development provided by a school district must
54-21    be conducted in accordance with minimum standards developed by the
54-22    commissioner for program planning, preparation, and improvement.
54-23    The staff development:
54-24                (1)  must include training in technology, [training and
54-25    training in] conflict resolution, and discipline strategies,
54-26    including classroom management, district discipline policies, and
 55-1    the student code of conduct adopted under Section 37.001 and
 55-2    Chapter 37; and
 55-3                (2)  may include instruction as to what is permissible
 55-4    under law, including opinions of the United States Supreme Court,
 55-5    in regard to prayers in public school.
 55-6          SECTION 2.07.  (a)  Chapter 21, Education Code, is amended by
 55-7    adding Subchapter K to read as follows:
 55-8              SUBCHAPTER K.  TEXAS TROOPS TO TEACHERS PROGRAM
 55-9          Sec. 21.501.  DEFINITION.  In this subchapter, "program"
55-10    means the Texas Troops to Teachers Program.
55-11          Sec. 21.502.  ESTABLISHMENT OF PROGRAM.  The agency shall
55-12    establish a program to:
55-13                (1)  assist persons who have served in the armed forces
55-14    of the United States and are separated from active duty to obtain
55-15    certification as an elementary or secondary school teacher in this
55-16    state; and
55-17                (2)  facilitate the employment of those persons by
55-18    school districts that have a shortage of teachers.
55-19          Sec. 21.503.  ELIGIBILITY.  A person is eligible for the
55-20    program if the person:
55-21                (1)  has served in the armed forces of the United
55-22    States;
55-23                (2)  is honorably discharged, retired, or released from
55-24    active duty on or after October 1, 1990, after at least six years
55-25    of continuous active duty  service immediately before the
55-26    discharge, retirement, or release;
 56-1                (3)  has received a baccalaureate or advanced degree
 56-2    from a public or private institution of higher education accredited
 56-3    by a regional accrediting agency or group that is recognized by a
 56-4    nationally recognized accreditation board; and
 56-5                (4)  satisfies any other criteria for selection jointly
 56-6    prescribed by the agency and the State Board for Educator
 56-7    Certification.
 56-8          Sec. 21.504.  INFORMATION AND APPLICATIONS.  (a)  The agency
 56-9    shall develop an application for the program.
56-10          (b)  The agency and the State Board for Educator
56-11    Certification shall distribute the applications and information
56-12    regarding the program.
56-13          Sec. 21.505.  SELECTION OF PARTICIPANTS.  (a)  The agency
56-14    shall select persons to participate in the program on the basis of
56-15    applications submitted to the agency.
56-16          (b)  Each application must be submitted:
56-17                (1)  in the form and contain the information the agency
56-18    requires; and
56-19                (2)  in a timely manner.
56-20          (c)  An application is considered to be submitted in a timely
56-21    manner for purposes of Subsection (b)(2) if the application is
56-22    submitted:
56-23                (1)  not later than October 5, 1999, in the case of an
56-24    applicant discharged, retired, or released from active duty before
56-25    January 19, 1999; or
56-26                (2)  except as provided by Subdivision (1), not later
 57-1    than the first anniversary of the date of the applicant's
 57-2    discharge, retirement, or release from active duty.
 57-3          Sec. 21.506.  LIMITATION ON IMPLEMENTATION.  The agency may
 57-4    not select a person to participate in the program unless the agency
 57-5    has sufficient state appropriations to pay the stipend provided by
 57-6    Section 21.509 at the time of the selection.
 57-7          Sec. 21.507.  PREFERENCES.  (a)  In selecting persons to
 57-8    participate in the program, the agency shall give preference to a
 57-9    person who:
57-10                (1)  has significant educational or military experience
57-11    in science, mathematics, or engineering and agrees to seek
57-12    employment as a teacher in one of those subjects in a public
57-13    elementary or secondary school in this state; or
57-14                (2)  has significant educational or military experience
57-15    in a field other than science, mathematics, or engineering
57-16    identified by the agency as a field important for state educational
57-17    objectives and agrees to seek employment as a teacher in a subject
57-18    related to that field in a public elementary or secondary school in
57-19    this state.
57-20          (b)  The commissioner shall determine the level of experience
57-21    considered significant for purposes of this section.
57-22          Sec. 21.508.  AGREEMENT.  A person selected to participate in
57-23    the program must enter into a written agreement with the agency
57-24    under which the person agrees to:
57-25                (1)  obtain, within the period the agency by rule
57-26    requires, certification as an elementary or secondary school
 58-1    teacher in this state; and
 58-2                (2)  accept, during the first school year that begins
 58-3    after the date the person becomes certified, an offer of full-time
 58-4    employment as an elementary or secondary school teacher with a
 58-5    school district in this state.
 58-6          Sec. 21.509.  STIPEND.  The agency shall pay to each
 58-7    participant in the program a stipend of $5,000.
 58-8          Sec. 21.510.  REIMBURSEMENT.  (a)  A participant in the
 58-9    program who fails to obtain certification or employment as required
58-10    in the agreement under Section 21.508 or who voluntarily leaves or
58-11    is terminated for cause from the employment after teaching in a
58-12    public elementary or secondary school in this state for less than
58-13    five school years shall reimburse the agency for the portion of the
58-14    stipend that bears the same ratio to the amount of the stipend as
58-15    the unserved portion of required service bears to the five years of
58-16    required service.
58-17          (b)  The obligation to reimburse the agency under this
58-18    section is, for all purposes, a debt to the state.  A discharge in
58-19    bankruptcy under Title 11, United States Code, does not release a
58-20    participant from the obligation to reimburse the agency.  The
58-21    amount owed bears interest at the rate equal to the highest rate
58-22    being paid by the United States on the day the reimbursement is
58-23    determined to be due for securities that have maturities of 90 days
58-24    or less, and the interest accrues from the day the participant
58-25    receives notice of the amount due.
58-26          (c)  For purposes of this section, a participant in the
 59-1    program is not considered to be in violation of an agreement under
 59-2    Section 21.508 during any period in which the participant:
 59-3                (1)  is pursuing a full-time course of study related to
 59-4    the field of teaching at a public or private institution of higher
 59-5    education approved by the State Board for Educator Certification;
 59-6                (2)  is serving on active duty as a member of the armed
 59-7    forces of the United States;
 59-8                (3)  is temporarily totally disabled for a period not
 59-9    to exceed three years as established by sworn affidavit of a
59-10    qualified physician;
59-11                (4)  is unable to secure employment for a period not to
59-12    exceed one year because of care required by a disabled spouse;
59-13                (5)  is seeking and unable to find full-time employment
59-14    as a teacher in a public elementary or secondary school for a
59-15    single period not to exceed 27 months; or
59-16                (6)  satisfies the provisions of any additional
59-17    reimbursement exception adopted by the agency.
59-18          (d)  A participant is excused from reimbursement under
59-19    Subsection (a) if:
59-20                (1)  the participant becomes permanently totally
59-21    disabled as established by sworn affidavit of a qualified
59-22    physician; or
59-23                (2)  the agency waives reimbursement in the case of
59-24    extreme hardship to the participant.
59-25          Sec. 21.511.  The commissioner shall adopt rules to implement
59-26    this subchapter.
 60-1          (b)  If the commissioner of education determines that federal
 60-2    funds are available for a federal program with the general purposes
 60-3    of Subchapter K, Chapter 21, Education Code, as added by Subsection
 60-4    (a) of this section, such as for a program under 10 U.S.C. Section
 60-5    1151, the commissioner shall discontinue the Texas Troops to
 60-6    Teachers Program and shall file notice of that discontinuation with
 60-7    the secretary of state to be published in the Texas Register.
 60-8          (c)  The commissioner of education may utilize discretionary
 60-9    funds or nonutilized balances to pay stipends for a program with
60-10    the general purposes of Subchapter K, Chapter 21, Education Code,
60-11    as added by Subsection (a) of this section, if federal funds, such
60-12    as the funds provided for a program under 10 U.S.C. Section 1151,
60-13    are not available or cease to be authorized.
60-14          SECTION 2.08.  Subsection (b), Section 25.001, Education
60-15    Code, is amended to read as follows:
60-16          (b)  The board of trustees of a school district or its
60-17    designee shall admit into the public schools of the district free
60-18    of tuition a person who is over five and younger than 21 years of
60-19    age on the first day of September of the school year in which
60-20    admission is sought if:
60-21                (1)  the person and either parent of the person reside
60-22    in the school district;
60-23                (2)  the person does not reside in the school district
60-24    but a parent of the person resides in the school district and that
60-25    parent is a joint managing conservator or the sole managing
60-26    conservator or possessory conservator of the person;
 61-1                (3)  the person and the person's guardian or other
 61-2    person having lawful control of the person under a court order
 61-3    reside within the school district;
 61-4                (4)  the person has established a separate residence
 61-5    under Subsection (d);
 61-6                (5)  the person is homeless, as defined by 42 U.S.C.
 61-7    Section 11302, regardless of the residence of the person, of either
 61-8    parent of the person, or of the person's guardian or other person
 61-9    having lawful control of the person;
61-10                (6)  the person is a foreign exchange student placed
61-11    with a host family that resides in the school district by a
61-12    nationally recognized foreign exchange program, unless the school
61-13    district has applied for and been granted a waiver by the
61-14    commissioner under Subsection (e);
61-15                (7)  the person resides at a residential facility
61-16    located in the district; or
61-17                (8) [(7)]  the person resides in the school district
61-18    and is 18 years of age or older or the person's disabilities of
61-19    minority have been removed.
61-20          SECTION 2.09.  Subsection (a), Section 25.003, Education
61-21    Code, is amended to read as follows:
61-22          (a)  Notwithstanding any other provision of this code, a
61-23    school district shall charge tuition for a child who resides at a
61-24    residential facility [child-care institution] and whose maintenance
61-25    expenses are paid in whole or in part by another state or the
61-26    United States [may not be admitted to a public school unless the
 62-1    child-care institution pays tuition for the child equal to the
 62-2    actual cost of educating a child enrolled in a similar educational
 62-3    program in the district].
 62-4          SECTION 2.10.  Subsection (d), Section 25.085, Education
 62-5    Code, is amended to read as follows:
 62-6          (d)  Unless specifically exempted by Section 25.086, a
 62-7    student enrolled in a school district must attend:
 62-8                (1)  an extended-year program for which the student is
 62-9    eligible that is provided by the district for students identified
62-10    as likely not to be promoted to the next grade level or tutorial
62-11    classes required by the district under Section 29.084;
62-12                (2)  an accelerated reading instruction program to
62-13    which the student is assigned under Section 28.006(g);
62-14                (3)  an accelerated instruction program to which the
62-15    student is assigned under Section 28.0211; or
62-16                (4)  a basic skills program to which the student is
62-17    assigned under Section 29.086.
62-18          SECTION 2.11.  Section 28.006, Education Code, is amended by
62-19    amending Subsection (d) and adding Subsections (g) through (m) to
62-20    read as follows:
62-21          (d)  The superintendent of each school district shall:
62-22                (1)  report to the commissioner and the board of
62-23    trustees of the district the results of the reading instruments;
62-24    and
62-25                (2)  report, in writing, to a student's parent or
62-26    guardian the student's results on the reading instrument.
 63-1          (g)  A school district shall notify the parent or guardian of
 63-2    each student in kindergarten or first or second grade who is
 63-3    determined, on the basis of reading instrument results, to be at
 63-4    risk for dyslexia or other reading difficulties.  The district
 63-5    shall implement an accelerated reading instruction program that
 63-6    provides reading instruction that addresses reading deficiencies to
 63-7    those students and shall determine the form, content, and timing of
 63-8    that program.  The admission, review, and dismissal committee of a
 63-9    student who participates in a district's special education program
63-10    under Subchapter B, Chapter 29, and who does not perform
63-11    satisfactorily on a reading instrument under this section shall
63-12    determine the manner in which the student will participate in an
63-13    accelerated reading instruction program under this subsection.
63-14          (h)  The school district shall make a good faith effort to
63-15    ensure that the notice required under this section is provided
63-16    either in person or by regular mail and that the notice is clear
63-17    and easy to understand and is written in English and in the parent
63-18    or guardian's native language.
63-19          (i)  The commissioner shall certify, not later than July 1 of
63-20    each school year or as soon as practicable thereafter, whether
63-21    sufficient funds have been appropriated statewide for the purposes
63-22    of this section.  A determination by the commissioner is final and
63-23    may not be appealed.  For purposes of certification, the
63-24    commissioner may not consider Foundation School Program funds.
63-25          (j)  No more than 15 percent of the funds certified by the
63-26    commissioner under Subsection (i) may be spent on indirect costs.
 64-1    The commissioner shall evaluate the programs that fail to meet the
 64-2    standard of performance under Section 39.051(b)(7) and may
 64-3    implement sanctions under Subchapter G, Chapter 39.  The
 64-4    commissioner may audit the expenditures of funds appropriated for
 64-5    purposes of this section.  The use of the funds appropriated for
 64-6    purposes of this section shall be verified as part of the district
 64-7    audit under Section 44.008.
 64-8          (k)  The provisions of this section relating to parental
 64-9    notification of a student's results on the reading instrument and
64-10    to implementation of an accelerated reading instruction program may
64-11    be implemented only if the commissioner certifies that funds have
64-12    been appropriated during a school year for administering the
64-13    accelerated reading instruction program specified under this
64-14    section.
64-15          (l)  Each district shall provide the accelerated reading
64-16    instruction under Subsection (g) to students in:
64-17                (1)  kindergarten during the 1999-2000 school year;
64-18                (2)  kindergarten and first grade during the 2000-2001
64-19    school year; and
64-20                (3)  kindergarten and first and second grades beginning
64-21    with the 2001-2002 school year.
64-22          (m)  Subsection (l) and this subsection expire January 1,
64-23    2002.
64-24          SECTION 2.12.  Subchapter B, Chapter 28, Education Code, is
64-25    amended by adding Section 28.0211 to read as follows:
64-26          Sec. 28.0211.  SATISFACTORY PERFORMANCE ON ASSESSMENT
 65-1    INSTRUMENTS REQUIRED; ACCELERATED INSTRUCTION.  (a)  Except as
 65-2    provided by Subsection (b) or (e), a student may not be promoted
 65-3    to:
 65-4                (1)  the fourth grade program to which the student
 65-5    would otherwise be assigned if the student does not perform
 65-6    satisfactorily on the third grade reading assessment instrument
 65-7    under Section 39.023;
 65-8                (2)  the sixth grade program to which the student would
 65-9    otherwise be assigned if the student does not perform
65-10    satisfactorily on the fifth grade mathematics and reading
65-11    assessment instruments under Section 39.023; or
65-12                (3)  the ninth grade program to which the student would
65-13    otherwise be assigned if the student does not perform
65-14    satisfactorily on the eighth grade mathematics and reading
65-15    assessment instruments under Section 39.023.
65-16          (b)  A school district shall provide to a student who
65-17    initially fails to perform satisfactorily on an assessment
65-18    instrument specified under Subsection (a) at least two additional
65-19    opportunities to take the assessment instrument.  A school district
65-20    may administer an alternate assessment instrument to a student who
65-21    has failed an assessment instrument specified under Subsection (a)
65-22    on the previous two opportunities.  Notwithstanding any other
65-23    provision of this section, a student may be promoted if the student
65-24    performs at grade level on an alternate assessment instrument under
65-25    this subsection that is appropriate for the student's grade level
65-26    and approved by the commissioner.
 66-1          (c)  Each time a student fails to perform satisfactorily on
 66-2    an assessment instrument specified under Subsection (a), the school
 66-3    district in which the student attends school shall provide to the
 66-4    student accelerated instruction in the applicable subject area,
 66-5    including reading instruction for a student who fails to perform
 66-6    satisfactorily on a reading assessment instrument.  After a student
 66-7    fails to perform satisfactorily on an assessment instrument a
 66-8    second time, a grade placement committee shall be established to
 66-9    prescribe the accelerated instruction the district shall provide to
66-10    the student before the student is administered the assessment
66-11    instrument the third time.  The grade placement committee shall be
66-12    composed of the principal or the principal's designee, the
66-13    student's parent or guardian, and the teacher of the subject of an
66-14    assessment instrument on which the student failed to perform
66-15    satisfactorily.  The district shall notify the parent or guardian
66-16    of the time and place for convening the grade placement committee
66-17    and the purpose of the committee.  An accelerated instruction group
66-18    administered by a school district under this section may not have a
66-19    ratio of more than 10 students for each teacher.
66-20          (d)  In addition to providing accelerated instruction to a
66-21    student under Subsection (c), the district shall notify the
66-22    student's parent or guardian of:
66-23                (1)  the student's failure to perform satisfactorily on
66-24    the assessment instrument;
66-25                (2)  the accelerated instruction program to which the
66-26    student is assigned; and
 67-1                (3)  the possibility that the student might be retained
 67-2    at the same grade level for the next school year.
 67-3          (e)  A student who, after at least three attempts, fails to
 67-4    perform satisfactorily on an assessment instrument specified under
 67-5    Subsection (a) shall be retained at the same grade level for the
 67-6    next school year in accordance with Subsection (a).  The student's
 67-7    parent or guardian may appeal the student's retention by submitting
 67-8    a request to the grade placement committee established under
 67-9    Subsection (c).  The school district shall give the parent or
67-10    guardian written notice of the opportunity to appeal.  The grade
67-11    placement committee may decide in favor of a student's promotion
67-12    only if the committee concludes, using standards adopted by the
67-13    board of trustees, that if promoted and given accelerated
67-14    instruction, the student is likely to perform at grade level.  A
67-15    student may not be promoted on the basis of the grade placement
67-16    committee's decision unless that decision is unanimous.  The
67-17    commissioner by rule shall establish a time line for making the
67-18    placement determination.  This subsection does not create a
67-19    property interest in promotion.  The decision of the grade
67-20    placement committee is final and may not be appealed.
67-21          (f)  A school district shall provide to a student who, after
67-22    three attempts, has failed to perform satisfactorily on an
67-23    assessment instrument specified under Subsection (a) accelerated
67-24    instruction during the next school year as prescribed by an
67-25    educational plan developed for the student by the student's grade
67-26    placement committee established under Subsection (c).  The district
 68-1    shall provide that accelerated instruction regardless of whether
 68-2    the student has been promoted or retained.  The educational plan
 68-3    must be designed to enable the student to perform at the
 68-4    appropriate grade level by the conclusion of the school year.
 68-5    During the school year, the student shall be monitored to ensure
 68-6    that the student is progressing in accordance with the plan.  The
 68-7    district shall administer to the student the assessment instrument
 68-8    for the grade level in which the student is placed at the time the
 68-9    district regularly administers the assessment instruments for that
68-10    school year.
68-11          (g)  This section does not preclude the retention at a grade
68-12    level, in accordance with state law or school district policy, of a
68-13    student who performs satisfactorily on an assessment instrument
68-14    specified under Subsection (a).
68-15          (h)  In each instance under this section in which a school
68-16    district is specifically required to provide notice to a parent or
68-17    guardian of a student, the district shall make a good faith effort
68-18    to ensure that such notice is provided either in person or by
68-19    regular mail and that the notice is clear and easy to understand
68-20    and is written in English or the parent or guardian's native
68-21    language.
68-22          (i)  The admission, review, and dismissal committee of a
68-23    student who participates in a district's special education program
68-24    under Subchapter B, Chapter 29, and who does not perform
68-25    satisfactorily on an assessment instrument specified under
68-26    Subsection (a) and administered under Section 39.023(a) or (b)
 69-1    shall determine:
 69-2                (1)  the manner in which the student will participate
 69-3    in an accelerated instruction program under this section; and
 69-4                (2)  whether the student will be promoted or retained
 69-5    under this section.
 69-6          (j)  A school district or open-enrollment charter school
 69-7    shall provide students required to attend accelerated programs
 69-8    under this section with transportation to those programs if the
 69-9    programs occur outside of regular school hours.
69-10          (k)  The commissioner shall adopt rules as necessary to
69-11    implement this section, including rules concerning when school
69-12    districts shall administer assessment instruments required under
69-13    this section and which administration of the assessment instruments
69-14    will be used for purposes of Section 39.051.
69-15          (l)  The commissioner shall issue a report to the legislature
69-16    not later than December 1, 2000, that reviews the enrollment of
69-17    students in accelerated instruction and the quality and
69-18    availability of accelerated instruction programs, including
69-19    accelerated instruction-related teacher professional development
69-20    programs.
69-21          (m)  The commissioner shall certify, not later than July 1 of
69-22    each school year or as soon as practicable thereafter, whether
69-23    sufficient funds have been appropriated statewide for the purposes
69-24    of this section.  A determination by the commissioner is final and
69-25    may not be appealed.  For purposes of certification, the
69-26    commissioner may not consider Foundation School Program funds.
 70-1    This section may be implemented only if the commissioner certifies
 70-2    that sufficient funds have been appropriated during a school year
 70-3    for administering the accelerated instruction programs specified
 70-4    under this section.
 70-5          (n)  This section applies to the assessment instrument
 70-6    administered to students in:
 70-7                (1)  the third grade beginning with the 2002-2003
 70-8    school year;
 70-9                (2)  the fifth grade beginning with the 2004-2005
70-10    school year; and
70-11                (3)  the eighth grade beginning with the 2007-2008
70-12    school year.
70-13          (o)  Subsection (n) and this subsection expire January 1,
70-14    2008.
70-15          SECTION 2.13.  Section 29.012, Education Code, is amended to
70-16    read as follows:
70-17          Sec. 29.012.  RESIDENTIAL [INTERMEDIATE CARE] FACILITIES.
70-18    (a)  Except as provided by Subsection (b)(2), not later than the
70-19    third day after the date a person 22 years of age or younger is
70-20    placed in a residential facility, the residential facility shall:
70-21                (1)  if the person is three years of age or older,
70-22    notify the school district in which the facility is located, unless
70-23    the facility is an open-enrollment charter school; or
70-24                (2)  if the person is younger than three years of age,
70-25    notify a local early intervention program in the area in which the
70-26    facility is located.
 71-1          (b)  An agency or political subdivision that funds, licenses,
 71-2    certifies, contracts with, or regulates a residential facility
 71-3    must:
 71-4                (1)  require the facility to comply with Subsection (a)
 71-5    as a condition of the funding, licensing, certification, or
 71-6    contracting; or
 71-7                (2)  if the agency or political subdivision places a
 71-8    person in a residential facility, provide the notice under
 71-9    Subsection (a) for that person.
71-10          (c)  For purposes of enrollment in a school, a person who
71-11    resides in a residential facility is considered a resident of the
71-12    school district or geographical area served by the open-enrollment
71-13    charter school in which the facility is located.
71-14          (d)  The Texas Education Agency, [and] the Texas Department
71-15    of Mental Health and Mental Retardation, the Texas Department of
71-16    Human Services, the Texas Department of Health, the Department of
71-17    Protective and Regulatory Services, the Interagency Council on
71-18    Early Childhood Intervention, the Texas Commission on Alcohol and
71-19    Drug Abuse, the Texas Juvenile Probation Commission, and the Texas
71-20    Youth Commission by a cooperative effort shall develop and by rule
71-21    adopt a memorandum of understanding.  The memorandum must:
71-22                (1)  establish [that establishes] the respective
71-23    responsibilities of school districts and of residential
71-24    [intermediate care] facilities for [mentally retarded persons for]
71-25    the provision of a free, appropriate public education, as required
71-26    by the Individuals with Disabilities Education Act (20 U.S.C.
 72-1    Section 1400 et seq.) and its subsequent amendments, including each
 72-2    requirement of 20 U.S.C.  Section 1412(a)(12), [classrooms and
 72-3    educationally related therapy] for children with disabilities
 72-4    [students] who reside in those facilities;
 72-5                (2)  coordinate regulatory and planning functions of
 72-6    the parties to the memorandum;
 72-7                (3)  establish criteria for determining when a public
 72-8    school can provide educational services and when a residential
 72-9    facility must provide the services;
72-10                (4)  provide for appropriate educational space when a
72-11    residential facility must provide educational services;
72-12                (5)  establish measures designed to ensure the safety
72-13    of students and teachers; and
72-14                (6)  provide for binding arbitration consistent with
72-15    Chapter 2009, Government Code, and Section 154.027, Civil Practice
72-16    and Remedies Code.
72-17          [(b)  The division of responsibilities under the memorandum
72-18    of understanding must be consistent with federal law relating to
72-19    the state medical assistance program.]
72-20          SECTION 2.14.  (a)  Subchapter D, Chapter 33, Education Code,
72-21    is amended by adding Section 33.086 to read as follows:
72-22          Sec. 33.086.  CERTIFICATION IN CARDIOPULMONARY RESUSCITATION
72-23    AND FIRST AID.  (a)  A school district employee who serves as the
72-24    head coach or chief sponsor for an extracurricular athletic
72-25    activity, including cheerleading, sponsored or sanctioned by a
72-26    school district or the University Interscholastic League must
 73-1    maintain and submit to the district proof of current certification
 73-2    in first aid and cardiopulmonary resuscitation issued by the
 73-3    American Red Cross, the American Heart Association, or another
 73-4    organization that provides equivalent training and certification.
 73-5          (b)  Each school district shall adopt procedures necessary
 73-6    for administering this section, including procedures for the time
 73-7    and manner in which proof of current certification  must be
 73-8    submitted.
 73-9          (b)  Section 33.086, Education Code, as added by Subsection
73-10    (a) of this section, applies beginning January 1, 2000.
73-11          SECTION 2.15.  Section 37.006, Education Code, is amended by
73-12    amending Subsection (f) and adding Subsection (l) to read as
73-13    follows:
73-14          (f)  Subject to Section 37.007(e), a student who is younger
73-15    than 10 years of age shall be removed from class and placed in an
73-16    alternative education program under Section 37.008 if the student
73-17    engages in conduct described by Section 37.007.  An elementary
73-18    school student may not be placed in an alternative education
73-19    program with any other student who is not an elementary school
73-20    student.
73-21          (l)  Notwithstanding any other provision of this code, a
73-22    student who is younger than six years of age may not be removed
73-23    from class and placed in an alternative education program.
73-24          SECTION 2.16.  Subsection (m), Section 37.008, Education
73-25    Code, is amended to read as follows:
73-26          (m)  The commissioner shall adopt rules necessary to evaluate
 74-1    annually the performance of each district's alternative education
 74-2    program established under this subchapter.  The evaluation required
 74-3    by this section shall be based on indicators defined by the
 74-4    commissioner, but must include student performance on assessment
 74-5    instruments required under Sections 39.023(a) and (c) [administer
 74-6    the provisions of Chapter 39 for alternative education programs].
 74-7    Academically, the mission of alternative education programs shall
 74-8    be to enable students to perform at grade level.  [Annually, the
 74-9    commissioner shall define for alternative education programs
74-10    acceptable performance and performance indicating a need for peer
74-11    review, based principally on standards defined by the commissioner
74-12    that measure academic progress of students toward grade level while
74-13    attending an alternative education program.]
74-14          SECTION 2.17.  Subsection (h), Section 37.011, Education
74-15    Code, is amended to read as follows:
74-16          (h)  Academically, the mission of juvenile justice
74-17    alternative education programs shall be to enable students to
74-18    perform at grade level.  For purposes of accountability under
74-19    Chapter 39, a student enrolled in a juvenile justice alternative
74-20    education program is reported as if the student were enrolled at
74-21    the student's assigned campus in the student's regularly assigned
74-22    education program, including a special education program.  Annually
74-23    the Texas Juvenile Probation Commission, with the agreement of the
74-24    commissioner, shall develop and implement a system of
74-25    accountability consistent with Chapter 39, where appropriate, to
74-26    assure that students make progress toward grade level while
 75-1    attending a juvenile justice alternative education program.  The
 75-2    Texas Juvenile Probation Commission shall adopt rules for the
 75-3    distribution of funds appropriated under this section to juvenile
 75-4    boards in counties required to establish juvenile justice
 75-5    alternative education programs.  Except as determined by the
 75-6    commissioner, a [A] student served by a juvenile justice
 75-7    alternative education program on the basis of an expulsion under
 75-8    Section 37.007(a), (d), or (e) is not eligible for Foundation
 75-9    School Program funding under Chapter 42 or 31 if the juvenile
75-10    justice alternative education program receives funding from the
75-11    Texas Juvenile Probation Commission under this subchapter.
75-12          SECTION 2.18.  Subchapter B, Chapter 39, Education Code, is
75-13    amended by adding Section 39.0231 to read as follows:
75-14          Sec. 39.0231.  REPORTING OF RESULTS OF CERTAIN ASSESSMENTS.
75-15    The agency shall ensure that each assessment instrument
75-16    administered in accordance with Section 28.0211 is scored and that
75-17    the results are returned to the appropriate school district not
75-18    later than 10 days after receipt of the test materials by the
75-19    agency or its test contractor.
75-20          SECTION 2.19.  Subsection (b), Section 39.024, Education
75-21    Code, is amended to read as follows:
75-22          (b)  Each school district shall offer an intensive program of
75-23    instruction for students who did not perform satisfactorily on an
75-24    assessment instrument administered under this subchapter.  The
75-25    intensive programs for students who did not perform satisfactorily
75-26    on an assessment instrument under Section 39.023(a) or (c) shall be
 76-1    designed to enable the students to be performing at grade level at
 76-2    the conclusion of the next regular school term and, if applicable,
 76-3    to carry out the purposes of Section 28.0211.  The intensive
 76-4    programs for students who did not perform satisfactorily on an
 76-5    assessment instrument under Section 39.023(b) shall be designed by
 76-6    each student's admission, review, and dismissal committee to enable
 76-7    the student to attain a standard of annual growth on the basis of
 76-8    the student's individualized education program and, if applicable,
 76-9    to carry out the purposes of Section 28.0211.
76-10          SECTION 2.20.  Subsections (b) and (d), Section 39.051,
76-11    Education Code, are amended to read as follows:
76-12          (b)  Performance on the indicators adopted under this section
76-13    shall be compared to state-established standards.  The degree of
76-14    change from one school year to the next in performance on each
76-15    indicator adopted under this section shall also be considered.  The
76-16    indicators must be based on information that is disaggregated with
76-17    respect to race, ethnicity, sex, and socioeconomic status and must
76-18    include:
76-19                (1)  the results of assessment instruments required
76-20    under Sections 39.023(a) and (c), aggregated by grade level and
76-21    subject area;
76-22                (2)  dropout rates;
76-23                (3)  student attendance rates;
76-24                (4)  the percentage of graduating students who attain
76-25    scores on the secondary exit-level assessment instruments required
76-26    under Subchapter B that are equivalent to a passing score on the
 77-1    test instrument required under Section 51.306;
 77-2                (5)  the percentage of graduating students who meet the
 77-3    course requirements established for the recommended high school
 77-4    program by State Board of Education rule;
 77-5                (6)  the results of the Scholastic Assessment Test
 77-6    (SAT) and the American College Test;
 77-7                (7)  the number of students, aggregated by grade level,
 77-8    provided accelerated instruction under Section 28.0211(c), the
 77-9    results of assessments administered under that section, the number
77-10    of students promoted through the grade placement committee process
77-11    under Section 28.0211, the subject of the assessment instrument on
77-12    which each student failed to perform satisfactorily, and the
77-13    performance of those students in the school year following that
77-14    promotion on the assessment instruments required under Section
77-15    39.023;
77-16                (8)  the percentage of students taking end-of-course
77-17    assessment instruments adopted under Section 39.023(d);
77-18                (9) [(8)]  the percentage of students exempted, by
77-19    exemption category, from the assessment program generally
77-20    applicable under this subchapter; and
77-21                (10) [(9)]  any other indicator the State Board of
77-22    Education adopts.
77-23          (d)  Annually, the commissioner shall define exemplary,
77-24    recognized, and unacceptable performance for each academic
77-25    excellence indicator included under Subsections (b)(1) through (6)
77-26    and shall project the standards for each of those levels of
 78-1    performance for succeeding years.  For the indicator under
 78-2    Subsection (b)(7), the commissioner shall define exemplary,
 78-3    recognized, and unacceptable performance based on student
 78-4    performance for the period covering both the current and preceding
 78-5    academic years.
 78-6          SECTION 2.21.  Subsection (b), Section 39.052, Education
 78-7    Code, is amended to read as follows:
 78-8          (b)  The report card shall include the following information
 78-9    where applicable:
78-10                (1)  the academic excellence indicators adopted under
78-11    Sections 39.051(b)(1) through (9) [(8)];
78-12                (2)  student/teacher ratios; and
78-13                (3)  administrative and instructional costs per
78-14    student.
78-15          SECTION 2.22.  Subsections (b) and (c), Section 39.072,
78-16    Education Code, are amended to read as follows:
78-17          (b)  The academic excellence indicators adopted under
78-18    Sections 39.051(b)(1) through (7) [(6)] shall be the main
78-19    consideration of the agency in the rating of the district under
78-20    this section.  Additional criteria in the rules may include
78-21    consideration of:
78-22                (1)  compliance with statutory requirements and
78-23    requirements imposed by rule of the State Board of Education under
78-24    specific statutory authority that relate to:
78-25                      (A)  reporting data through the Public Education
78-26    Information Management System (PEIMS);
 79-1                      (B)  the high school graduation requirements
 79-2    under Section 28.025; or
 79-3                      (C)  an item listed in Sections
 79-4    7.056(e)(3)(C)-(I) that applies to the district; and
 79-5                (2)  the effectiveness of the district's programs in
 79-6    special education based on the agency's most recent compliance
 79-7    review of the district and programs for special populations.
 79-8          (c)  The agency shall evaluate against state standards and
 79-9    shall report the performance of each campus in a district and each
79-10    open-enrollment charter school on the basis of the campus's
79-11    performance on the indicators adopted under Sections 39.051(b)(1)
79-12    through (7) [(6)].
79-13          SECTION 2.23.  Subsection (a), Section 39.073, Education
79-14    Code, is amended to read as follows:
79-15          (a)  The agency shall annually review the performance of each
79-16    district and campus on the indicators adopted under Sections
79-17    39.051(b)(1) through (7) [(6)] and determine if a change in the
79-18    accreditation status of the district is warranted.
79-19          SECTION 2.24.  Subsection (e), Section 39.074, Education
79-20    Code, is amended to read as follows:
79-21          (e)  If an annual review indicates low performance on one or
79-22    more of the indicators under Sections 39.051(b)(1) through (7)
79-23    [(6)] of one or more campuses in a district, the agency may conduct
79-24    an on-site evaluation of those campuses only.
79-25          SECTION 2.25.  Subsection (c), Section 39.075, Education
79-26    Code, is amended to read as follows:
 80-1          (c)  Based on the results of a special accreditation
 80-2    investigation, the commissioner may:
 80-3                (1)  take appropriate action under Subchapter G;
 80-4                (2)  lower the district's accreditation rating; or
 80-5                (3)  take action under both Subdivisions (1) and (2)
 80-6    [and may take appropriate action under Subchapter G].
 80-7          SECTION 2.26.  Section 39.183, Education Code, is amended to
 80-8    read as follows:
 80-9          Sec. 39.183.  REGIONAL AND DISTRICT LEVEL REPORT.  The agency
80-10    shall prepare and deliver to the governor, the lieutenant governor,
80-11    the speaker of the house of representatives, each member of the
80-12    legislature, the Legislative Budget Board, and the clerks of the
80-13    standing committees of the senate and house of representatives with
80-14    primary jurisdiction over the public school system a regional and
80-15    district level report covering the preceding two school years and
80-16    containing:
80-17                (1)  a summary of school district compliance with the
80-18    student/teacher ratios and class-size limitations prescribed by
80-19    Sections 25.111 and 25.112, including the number of districts
80-20    granted an exception from Section 25.112;
80-21                (2)  a summary of the exemptions and waivers granted to
80-22    school districts under Section 7.056 or 39.112 and a review of the
80-23    effectiveness of each campus or district following deregulation;
80-24    [and]
80-25                (3)  an evaluation of the performance of the system of
80-26    regional education service centers based on the indicators adopted
 81-1    under Section 8.101 and client satisfaction with services provided
 81-2    under Subchapter B, Chapter 8; and
 81-3                (4)  an evaluation of accelerated instruction programs
 81-4    offered under Section 28.006, including an assessment of the
 81-5    quality of such programs and the performance of students enrolled
 81-6    in such programs.
 81-7              ARTICLE 3.  REPEALER; EFFECTIVE DATE; EMERGENCY
 81-8          SECTION 3.01.  (a)  Subsection (b), Section 8.121, Subsection
 81-9    (c), Section 41.002, Subsection (c), Section 42.251, and Subsection
81-10    (e), Section 42.252, Education Code, are repealed.
81-11          (b)  Effective August 31, 1999, Subsection (i), Section
81-12    403.302, Government Code, is repealed.
81-13          (c)  Subsection (f), Section 26.08, Tax Code, is repealed.
81-14          SECTION 3.02.  Except as otherwise provided by this Act, this
81-15    Act takes effect September 1, 1999.
81-16          SECTION 3.03.  The importance of this legislation and the
81-17    crowded condition of the calendars in both houses create an
81-18    emergency and an imperative public necessity that the
81-19    constitutional rule requiring bills to be read on three several
81-20    days in each house be suspended, and this rule is hereby suspended.
                                                                  S.B. No. 4
         ________________________________   ________________________________
             President of the Senate             Speaker of the House
               I hereby certify that S.B. No. 4 passed the Senate on
         April 28, 1999, by a viva-voce vote; May 24, 1999, Senate refused
         to concur in House amendments and requested appointment of
         Conference Committee; May 26, 1999, House granted request of the
         Senate; May 30, 1999, Senate adopted Conference Committee Report by
         the following vote:  Yeas 30, Nays 0; passed subject to the
         provisions of Article III, Section 49a, of the Constitution of
         Texas.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 4 passed the House, with
         amendments, on May 24, 1999, by a non-record vote; May 26, 1999,
         House granted request of the Senate for appointment of Conference
         Committee; May 30, 1999, House adopted Conference Committee Report
         by a non-record vote; passed subject to the provisions of Article
         III, Section 49a, of the Constitution of Texas.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         ________________________________    I, Carole Keeton Rylander,
                      Date                   Comptroller of Public Accounts,
                                             do hereby certify that the
                                             amounts appropriated in the
                                             herein S.B. No. 4, Regular
         ________________________________    Session, 76th Legislature,
                    Governor                 are within the amount estimated
                                             to be available in the affected
                                             fund.
                                             Certified _____________, 1999.
                                             _______________________________
                                             Comptroller of Public Accounts